Cleveland City Council is docking DigitalC almost $1 million for missing its internet sign-up goals on a city contract.
Mayor Justin Bibb’s administration hired the nonprofit internet company for an ambitious, $20 million plan to sign up 23,500 households for low-cost broadband. Council signed off on the deal, but on the condition that City Hall would pay DigitalC only if it met yearly benchmarks.
DigitalC fell short last year. It enrolled almost 2,900 households, not the 3,500 set in the contract for 2024.
Council’s Utilities Committee on Thursday voted to pay DigitalC only $760,000 rather than the full $1.75 million tied to the sign-up goal. The committee did not contest a separate $2 million payment for a community education portion of the contract, committee chair Brian Kazy said. The legislation amending the contract still must be voted on by the full council.
Kazy told DigitalC officials that council wouldn’t accept shortcomings from the nonprofit in the future.
“You put us in a very awkward situation to be able to give you anything, but we also believe that we need you to succeed,” he said. “You have to do this. It’s what’s best for the city of Cleveland.”
DigitalC offers its internet service for $18 per month. Cleveland chose the nonprofit over several other providers – including major for-profit telecommunications companies – for a large contract funded with American Rescue Plan Act dollars.
Ward 13 Council Member Kris Harsh cast the lone vote against the payment at Thursday’s committee hearing. He urged council to hold off on paying DigitalC until Cleveland finished an audit of the nonprofit’s progress. The city is about halfway through the audit, a Bibb administration official said at the hearing.
Other members said the work of expanding internet access was too important to hold up. Ward 2 Council Member Kevin Bishop said DigitalC should be given “grace” despite not meeting its goals.
Toward the end of the hour-long hearing, DigitalC CEO Joshua Edmonds said he wanted to work more closely with council this year.
“That 20% short of our goal, we understand that a lot of that comes down to collaboration,” Edmonds said. “That had we collaborated, do we get those numbers? But we’re going to find out this year, absolutely.”
