HomeMy WebLinkAbout2004-03-02 - AGENDA REPORTS - CABLE FRANCHISE RENEWAL UPDATE (2)CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO: Xn
ell Councilme ers
FROM: p, ity e
DATE: March 2, 2004
SUBJECT: CABLE FRANCHISE RENEWAL PROCESS - UPDATE
RECOMMENDED ACTION
City Council receive update, discuss cable television franchise renewal objectives, and provide
additional direction to staff.
BACKGROUND
In 2001, the City initiated its due diligence efforts in advance of the cable television franchise
renewal process. To date, City staff has undertaken and completed a number of procedural tasks
associated with the renewal process, including a community needs assessment, a franchise fee,
and technical compliance audit of each cable provider.
Prior to the formal presentation and consideration of the proposed cable television franchise
agreement by the City Council, staff would like to use the opportunity of this Study Session to
provide an update on the progress of our negotiation efforts. Specifically, the goal of this session
is to confer with the Council in order to ensure that staff has a clear understanding of the
community's cable television priorities.
The information below provides the City Council with an overview of the renewal priorities that
staff has emphasized and pursued during the course of the City's continuing negotiations and
includes:
• Adequate cable operator funding and staff support to ensure the continued operation and
enhancement of the Santa Clarita Television Studio.
• One-time Cable Capital Grant Funding for specific television studio and City Hall production
needs.
• Expanded City-wide coverage of community and educational events.
• Discount on Basic Service Tier for Low -Income Subscribers.
• Introduction of a more affordable/middle level range of cable service.
• Cable system connection to all public schools in the City/Enhanced Cable Programming in
the Schools.
• Incorporation of customer service standards into the new franchise agreement.
• Consideration of a City-wide Franchise Agreement, rather then exclusive service areas.
P�enda Item:
CABLE FRANCHISE RENEWAL PROCESS - UPDATE
March 2, 2004 — Page 2
Through the negotiation process, City staff and representatives of Comcast Cable have made
significant strides in recent months towards the development of a cable franchise agreement that
both parties believe will meet the current and future cable television needs of the community.
Currently, the franchise renewal has progressed to the point where staff has requested Comcast
to forward the draft franchise document to its corporate office in order to commence their
review.
While the City has made significant progress towards the renewal of Comcast's franchise, the
same cannot be said with regard to the City's other cable provider. At this time, it is important to
note for the City Council that because of ongoing litigation initiated by the City, renewal
negotiations with the City's other cable operator, Time Warner, have not commenced.
Staff and representatives of Comcast anticipate reaching agreement on all significant
franchise -related issues in a time frame that would allow the City Council to conduct an initial
review of the proposed cable franchise agreement at their scheduled meeting of March 23, 2004.
However, in light of the unresolved matters between the City and Time Warner, Comcast has
asked that the City consider holding off on the future adoption of the franchise agreement until
such time as staff is able to resume negotiations with Time Warner. City staff believes this
request has some merit, as there are several franchise matters relating to issues such as the Santa
Clarita Television Studio and capital cable grants, where Time Warner will be asked to
contribute proportionally in these potential costs.
ALTERNATIVE ACTIONS
1. Direct staff to consider alternative renewal objectives as identified by the Council.
2. Other actions as directed by Council.
FISCAL IMPACT
There are no fiscal impacts associated with this action.
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