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HomeMy WebLinkAboutBremerton Inet Dedcution for 2026To: City of Bremerton 345 6th St Suite Bremerton, WA 98337 Attention: Dave Sorenson March 9, 2026 Re: Annual INET Deduction for 2026 Dear Mr. Sorenson, I am writing to inform you of the 2026 annual Marginalized INET Deduction, as negotiated in your recent franchise renewal. As referenced in Section 12.3 (I-Net Maintenance, Cost, and Relocation) and Section 8 of the INET addendum, the total marginalized rate for 2025 was calculated at $700 per mile. Future annual rates will include the CPI-U Index increase. 2026 represents the first year the CPI-U index will be factored into the annual rate per mile. The CPI-U index was determined at 6.7% for a new cost per mile at $746.90. Consumer Price Index for All Urban Consumers: Information Technology, Hardware and Services in U.S. City Average (CUSR0000SEEE) | FRED | St. Louis Fed As detailed in Exhibit 8 of the addendum, the total mileage has been established at 9.85 miles. Therefore, your 2026 annual deduction is calculated as follows: (9.85 miles x $746.90 per mile) = $7, 356.96. This amount will be deducted from your Q1 2026 quarterly franchise fee payments to provide the benefit of the marginalized rate. You can anticipate the deduction in your April/ May statement when Q1 Quarterly franchise fee payments are sent. You will not need to render a check or billing for this fee. The request has been submitted. You will not need to issue a check or make a separate payment for this fee. We do, however, require your email reply confirmation accepting the reduction from your Q1 franchise fee. As discussed during the franchise negotiations, we can provide this substantial reduction under our marginalized rate consistent with FCC guidelines, when applied as an offset to the franchise fee. If this cost were billed separately, it would fall under our standard business dark-fiber pricing. If you have any questions or need further clarification, please feel free to contact me at any time. Deann English Government & Community Affairs Manager 410 Valley Ave NW, Puyallup WA 98371 Text or Call: 253.999.0868