HomeMy WebLinkAbout2002-06-11 - AGENDA REPORTS - AT T COMCAST CABLE TRSFR (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval
-411
Item to be presented by: Steve Stark
DATE: June 11, 2002
SUBJECT: AT&T COMCAST CABLE TRANSFER
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt a Resolution, changing control of the cable franchise from AT&T Corp.
to AT&T Comcast Corporation,
BACKGROUND
The City of Santa Clarita is served by two cable television providers, AT&T and Time
Warner Cable. Currently, AT&T provides service to approximately 30,000 residents on the
west side of the City, while Time Warner provides service to approximately 17,000
residents on the east side. On December 19, 2001, AT&T announced its plans to combine
its cable operation with Comcast Corporation and in February 2002, submitted an
application to the City to consent to this merger. Typically, a City evaluates the following
three qualifications to approve a franchise transfer from one cable company to another:
Legal: Is AT&T Comcast legally qualified to operate in the State of California?
Economic: Is AT&T Comcast financially sound to continue cable operation in the City of
Santa Clarita?
Technical: Is AT&T Comcast technically qualified to continue operating the cable
system in the City of Santa Clarita?
The generally accepted rules for transferring a cable franchise are narrow in scope and do
not allow the City of Santa Clarita to consider additional factors. In general, the City must
find that the new company meets all three qualifications before legally approving a
franchise transfer. Some courts have held that cities may consider other factors, such as
the effect of the transfer on rates or services. However, the cable companies have disputed
these rulings.
It is the opinion of the City Attorney and staff that the designated transferee, AT&T
Comcast, has met the necessary qualifications for the City Council to approve a franchise
transfer. The City Attorney has provided the City with a legal opinion based on review of
the Federal Communications Commission Form 394, furnished by both AT&T Corp. and
Comcast Corporation (see attachment).
#e . z-�� Agenda Item;
AT&T COMCAST CABLE TRANSFER
June 11, 2002 - Page 2
During past transfers, the Council has directed staff to conduct public meetings to provide
residents with the opportunity to comment on cable services in the City by both AT&T and
Time Warner Cable. Since two public meetings were held in January 2002 regarding cable
service in the context of the cable franchise renewal, further public meetings regarding the
cable transfer process were not held. The meetings in January were fairly well attended,
and public concerns focused primarily around the issues of customer service, rates, and
programming. AT&T and Time Warner representatives were present at both meetings.
Because federal law has limited the City's authority over issues of rates and programming,
staff has concentrated its effort on customer service, addressing the issue with several
AT&T cable representatives. Between November 2001 and February 2002, the City
received a number of complaints regarding the customer service provided by AT&T,
including such problems as long holds, busy signals, and missed appointments. AT&T
representatives indicated a number of factors that had led to these problems and notified
staff of the steps they were taking to address the concerns. AT&T has recently provided
information indicating that the problems, at this time, have been appropriately addressed,
and complaints by residents to City staff have decreased significantly.
ALTERNATIVE ACTIONS
1) Do not adopt a Resolution, changing control of cable franchise from AT&T Corp. to
AT&T Comcast Corporation.
2) Other action as determined by Council.
FISCAL IMPACT
No fiscal impact will result from the change of control from AT&T Corp. to AT&T Comcast
Corporation.
ATTACHMENTS
Resolution of Franchise Transfer
Attorney Opinion Letter
SS:TSB:hds
caaacil/AMT Transfer Agenda