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HomeMy WebLinkAbout#03 - Extension of Comcast Cable Franchise AgreementSTAFF REPORT DATE: February 7, 2018 CONSENT #3 AGENDA ITEM: Cable Franchise Extension SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: Included in your packet is a memo from Tim Finnerty, Cable Commission Executive Director. It provides details on the background and proposal before the Council. ISSUE BEFORE COUNCIL: Should the Council extend the cable franchise agreement with Comcast? PROPOSAL: The cable commission is requesting an extension of the cable franchise agreement with Comcast until November 1, 2018 to allow good faith negotiations to continue. It is not all uncommon for franchise renewals to take extra time as they are a very complex matter. RECOMMENDATION: If removed from the consent agenda: “Motion to approve the resolution to extend the cable franchise agreement until November 1, 2018.” ATTACHMENTS: • Memo from Tim Finnerty • Resolution to extend cable franchise agreement M E M O R A N D U M      TO :Kristina Handt, City Administrator    FROM :Tim Finnerty, Cable Commission Executive Director    DATE :January 18, 2018    SUBJECT :Recommendation to approve Franchise Extension Agreement    Attached please find a proposed Agreement for the extension of the Franchise with Comcast.  The Cable  Commission is recommending that the City Council approve the Extension Agreement.  The Agreement will extend  the expiration date of the current Franchise from July 1, 2018 to November 1, 2018.  The purpose of the proposed  extension is to allow for continued informal negotiations between Comcast and the Cable Commission regarding the  long­term renewal of the Franchise.    Background    As you know, the Cable Commission has been working on the matter of franchise renewal with Comcast (the existing  franchise agreement is set to expire July 1, 2018).  The Commission began direct negotiations with Comcast in  September 2017, and prior to that, developed and documented a comprehensive needs assessment to serve as the  negotiation objective on behalf of member cities.  The needs assessment report is available at:    https://drive.google.com/file/d/0B1qh_NnmAEg2SHZtc0tKSnBNVlU/view     Renewal issues can be resolved through “informal” processes (negotiation), or through a “formal” hearing process.  Based on the time required to complete the formal process, the Commission adopted two schedules. In both, the  parties would start with negotiations, but move the formal process forward so that it would be completed by roughly  the date scheduled for franchise expiration if negotiations were not successful.  One schedule assumed that the  expiration date stayed as is, and effectively required the parties to reach negotiated deal points by January.  In the  other, the parties would extend the franchise to give themselves more time to engage in negotiations.  Both were  presented to Comcast in the fall.    Recommendation to Approve Extension    The Cable Commission submitted proposed deal points for negotiation to Comcast in October, 2017, and Comcast  was to respond in December.  It has not yet responded, and the Commission and Comcast agreed that extending the  franchise would allow Comcast to respond and negotiations to proceed informally.     The Cable Commission therefore is recommending that the City approve the extension per the attached Extension  Agreement.  The Cable Commission believes this simple extension of the current franchise expiration will allow both  parties to continue informal negotiations for the next couple of months without being put at a disadvantage.  The  extension preserves your right to use the I­NET, and preserves existing support and channels (including high  definition channels) for local cable programming.  It does not harm the communities in any way.    Please feel free to contact me after you have had a chance to review this if you wish to discuss it or have any  questions.  Thank you!