HomeMy WebLinkAbout#04 - Cable Franchinse Agreement ExtensionSTAFF REPORT
DATE: May 7, 2019
CONSENT
AGENDA ITEM: Cable Franchise Extension
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
Included in your packet is an email 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
February 28, 2020 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 February 28, 2020.”
ATTACHMENTS:
• Email from Tim Finnerty
• Resolution to extend cable franchise agreement
• Timeline for Negotiations
From:Tim Finnerty
To:Kristina Handt
Cc:Ginny Holder
Subject:Extension agreement for Council approval
Date:Tuesday, April 23, 2019 1:25:39 PM
Attachments:RamWash 2-28-20 extention to signed by Comcast.pdf
Franchise Renewal Timeline (Revised March 2019).pdf
Dear Kristina:
Attached please find a proposed Agreement for another 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 August 31, 2019 to February 28, 2020. The purpose of the
proposed extension is to allow for continued informal negotiations between Comcast and the Cable Commission
regarding the long-term renewal of the Franchise. Comcast is in agreement with this.
Background
As you know, the Cable Commission has been working on the matter of Franchise renewal with Comcast given
that the existing Franchise Agreement that is set to expire August 31, 2019. The Commission and Comcast have
conducted negotiations during 2018 and 2019 thus far, and prior to that, the Commission had 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/drive/folders/0B37m--_T9u7TcUNaZUh6MzlPWms
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 has adopted and updated
two schedules. In both, the parties 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 (August 31, 2019), and effectively required the parties to
reach negotiated deal points by April. In the other, the parties would extend the franchise to give themselves more
time to engage in negotiations.
Recommendation to Approve Extension
The Cable Commission and Comcast have exchanged proposed terms and counterproposals and held several
negotiation sessions. While no proposed deal has yet been reached, both parties recommend extending the time
schedule to allow for continuation of negotiations. Therefore, the parties have agreed to recommend extending the
franchise expiration date to February 28, 2020 in order to allow negotiations to continue to proceed informally.
To accomplish this, Cable Commission recommends that the City approve the attached Extension Agreement.
The Cable Commission believes this simple extension of the current franchise expiration will allow both parties to
continue informal negotiations without being put at a disadvantage. The extension preserves the City's right to
use the I-NET, and preserves existing PEG support and channels (including high definition channels) for
local cable programming. It does not harm the communities in any way.
Finally, please find attached a revised the franchise renewal schedule to reflect how the timeline proceeds under
this extension. The Commission leadership believes it is important to follow this schedule to protect the interests
of its Member Municipalities.
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!
- Tim Finnerty
Ramsey/Washington Cable Commission
timfinnerty@scctv.org
651-747-3802
Ramsey/Washington Cable Commission Franchise Renewal Timeline
(Revised March 2019)
DATE INFORMAL PROCESS FORMAL PROCESS
March, 2019 September, 2019 Informal negotiations Preparation for drafting/issuing
of renewal RFP
September, 2019
Negotiations
Update/recommendations as to
whether to issue RFP (formal
process), or continue
negotiations; final document
preparation begins if applicable
Negotiations Update/deadline
for recommendations as to
whether to issue RFP (formal
process), or continue
negotiations; issue renewal RFP
no later than September 15,
2019 if applicable
October, 2019
Final Franchise documentation
is complete and provided to
Commission office
Issue RFP with return date of no
later than October 15, 2019
November, 2019
Public hearing on proposed
Franchise
December, 2019
Commission approval of final
Franchise to be recommended
to municipalities
Decision made to preliminarily
deny or accept proposal;
recommendations for conduct of
formal proceeding
January, 2020
Final Franchise provided to each
municipality for approval and
signing
February, 2020
Existing Franchise with Comcast
expires February 28; existing
payment arrangement could
terminate at earliest on October
28, 2019
Hearing commences on formal
process (90 days of prehearing
discovery)
March, 2020
May, 2020
Municipal approval of final
Franchise is completed;
approved Franchises for each
municipality if forwarded to
Comcast for signing
June, 2020
Hearing completed;
recommendations for final action
on franchise submitted to
municipalities