STATE & LOCAL GOVERNMENT
MICHIGAN
ALJ says Rochester violated state law
A Michigan Public Service Commission administrative law judge (ALJ) has 
recommended that the commission fine the city of Rochester $30,000 for its 
practices in permitting use of its rights-of-way. The ALJ's recommendation 
addresses a complaint filed by Coast to Coast Telecommunications, Inc., 
against Rochester.
Coast to Coast plans to construct a 400-mile fiber optic cable network using 
asynchronous transfer mode and synchronous optical network technology in 
Oakland, Macomb, Wayne, Washtenaw, and Monroe counties. In May Rochester 
granted Coast to Coast a permit to use the city's rights-of-way, but the 
permit didn't specify the monetary amount of the application fee or the 
annual fees.
The ALJ found the permit to be unreasonable in its terms and conditions, in 
violation of section 251(3) of the Michigan Telecommunications Act (MTA). The 
ALJ agreed with Coast to Coast's assertions that in order for there to be a 
valid permit, the amount of the fees must be specified.
According to the ALJ, Rochester had signed a franchise agreement with 
McLeodUSA Telecommunications, Inc., before it considered Coast to Coast's 
request. The city charges McLeodUSA 25 cents per aerial lineal foot but 
proposed to charge Coast to Coast 76 cents per aerial lineal foot. The ALJ 
found Rochester's actions to be "blatantly discriminatory" in violation of 
section 253 of the MTA.
If the PSC acts on the ALJ's recommendation, it will be the second time a 
municipality is fined for the MTA. Last month the PSC fined the city of 
Birmingham $10,000 for violating the MTA. (10/25/00 a.m.) (Case no. U-12462 - 
In the matter of the application and complaint of Coast to Coast 
Telecommunications, Inc., against the City of Rochester, Michigan)