06-11-2014 Council Agenda - Laserfiche WebLink

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May 23, 2014 Page 20 Formal franchise renewal • repeated arguments by staff that reducing Pl?C fees will only result in money "going to Philadelphia, into [Comcast's] coffers," a false statement because cable rates are generally standardized in the area. The above statements are just a few examples showing improper bias and considerations throughout this process—whether against Comcast because it is a private company, against Comcast because its corporate headquarters is out-of-state, or against Comcast because it won't provide millions of dollars of cash, goods, and services to the NSAC as a condition of doing business. C. Misstatements about informal negotiations "Though the content of any informal negotiations has no place necessarily in this formal process, the informal process remains the best route to resolving this and Comcast must correct statements by the NSCC's attorney claiming that Comcast has not engaged in informal discussions. The NSCC's attorney gave an offer in March that was a far distance from Comcast's previous offers and, in Comcast's view, unreasonable. Comcast and NSCC counsel then agreed that the two sides should exchange priorities to see if the gap could be bridged. A few days after the meeting on April 17, where Comcast presented its formal proposal, the NSCC legal counsel and Comcast's in --house counsel spoke by phone. Comcast's counsel conveyed Comcast's priorities and some areas where Comcast may have flexibility. NSCC's counsel never reciprocated. Instead, he told the NSCC that Comcast had been out of contact with him. Comcast still desires that the franchise be renewed through an informal process because the process is more efficient, cost effective, and flexible for both sides. But if the cities (acting on the NSCC's initiative) continue to act on its threat to deny renewal under this formal process, informal negotiations will be jeopardized. Comcast will not allow the formal process to serve as a threat in its informal negotiations with the NSCC. V. Steps following acceptance of the NSCC's denial If the cities follow the NSCC's recommendation, time law requires an administrative discovery process and hearing, potentially followed by further judicial review. An administrative law judge (A1.,J) who is independent and without improper bias is to preside over that hearing and make findings of fact and conclusions of law. The Cable Act, due process, and the Minnesota Administrative Procedures Act (MAPA) require that the hearing follow established processes and rules to ensure the reliability of information that the A14 considers. The NSCC agreed with Comcast early in this process that they