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HomeMy WebLinkAboutItem 06 Comcast Franchise Extension AGENDA ITEM SUMMARY Meeting Date: 12/3/2018 Meeting Type: Regular Meeting Staff Contact/Dept.: Neil Obringer / DPW Kristina Kraaz / CAO Staff Phone No: 541-736-1032 541-744-4061 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Maintain and Improve Infrastructure and Facilities ITEM TITLE: COMCAST FRANCHISE EXTENSION ACTION REQUESTED: Adopt or reject the following ordinance: AN ORDINANCE TO EXTEND THE TERM OF ORDINANCE 6385 GRANTING TO COMCAST OF OREGON II, INC. A FRANCHISE FOR OPERATION OF A CABLE TELECOMMUNICATIONS SYSTEM AND ADOPTING A SEVERABILITY CLAUSE (SECOND READING) ISSUE STATEMENT: Shall the City Council extend Comcast’s existing cable franchise until June 30, 2020, to allow the parties to complete their renewal negotiations? ATTACHMENTS: Attachment 1: Ordinance DISCUSSION/ FINANCIAL IMPACT: The City of Springfield, City of Eugene, and Lane County together have granted a franchise to Comcast of Oregon II, Inc. for the operation of a cable telecommunications system. The Metropolitan Policy Committee (MPC) is the entity designated by the three jurisdictions to administer the franchise. The federal Cable Act requires cable providers to have franchises and provides for a renewal process. The MPC together with the Cities of Springfield and Eugene and Lane County are in the process of negotiating a ten-year franchise renewal with Comcast. The existing franchise expired on August 1, 2018. On July, 2 2018 the Council adopted a first extension of the original franchise through January 1, 2019. The parties involved have not been able to reach agreement on the franchise renewal due to two outstanding issues: (1) Proposed changes in federal law to how cable franchises are to be administered and (2) A “competitive equity” addendum proposed by Comcast, which staff does not believe is in the City’s best interest. Staff requests that Council adopt an ordinance to extend the existing franchise agreement until June 30, 2020, to prevent a lapse in the franchise agreement and to allow the parties to conclude the renewal negotiations. No changes to the terms and conditions of the existing franchise are proposed for this short-term extension. The Council will be asked to formally adopt an ordinance renewing Comcast’s franchise for a ten-year term once the renewal negotiations are completed. Page 1 of 2 CITY OF SPRINGFIELD, OREGON ORDINANCE NO. ___________ (SPECIAL) AN ORDINANCE TO EXTEND THE TERM OF ORDINANCE 6385 GRANTING TO COMCAST OF OREGON II, INC. A FRANCHISE FOR OPERATION OF A CABLE TELECOMMUNICATIONS SYSTEM AND ADOPTING A SEVERABILITY CLAUSE WHEREAS, the Cities of Springfield and Eugene together with Lane County granted a franchise to Comcast of Oregon II, Inc. (“Comcast”) for the operation of a cable communication system and have designated the Metropolitan Policy Committee (MPC) as the representative of the local franchising authorities in administration of the franchise; WHEREAS, the City of Springfield enacted Ordinance 5567 on May 20, 1991, granting said franchise; WHEREAS, the City of Springfield enacted Ordinance 6208 on November 20, 2007, amending and renewing said franchise through August 1, 2018; WHEREAS, the City of Springfield enacted Ordinance 6385 on July 2, 2018, extending said franchise for an additional period through January 1, 2019; WHEREAS, the federal Cable Act requires a franchise for the operation of cable telecommunications systems and provides for a formal or informal renewal process under the Cable Act; WHEREAS, the Cities of Springfield and Eugene, Lane County, and Comcast are currently negotiating under the Cable Act’s informal process to renew Comcast’s cable franchise and the parties anticipate those negotiations will not be completed prior to January 1, 2019; WHEREAS, the Metropolitan Policy Committee met on October 4, 2018 and recommended that the current franchise be extended for an additional eighteen months to allow more time for the parties to negotiate a renewed franchise; and WHEREAS, the Cities of Springfield and Eugene, and Lane County have determined that it serves the public welfare to extend the term of the franchise from January 1, 2019 through June 30, 2020, NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS: Section 1. The franchise granted to Comcast in Ordinance 6208 and extended by Ordinance 6385 shall be extended up to and through June 30, 2020. Section 2. The City and Comcast agree that execution of this extension does not waive any rights that either party may have under Section 626 of the Cable Act or other provision of federal, state, or local law. Section 3. Savings Clause. Other than the duration of the franchise set forth herein, Ordinance 6208 and Ordinance 6385 shall continue in full force and effect. ADOPTED by the Common Council of the City of Springfield this ___ day of ___________, ____, by a vote of _____ for and ____ against. Attachment 1, Page 1 of 2 Page 2 of 2 APPROVED by the Mayor of the City of Springfield this ______ day of ____________, ____. _______________________ Mayor ATTEST: __________________________ City Recorder ACCEPTED this ______ day of ____________, ____ by Comcast of Oregon II, Inc. __________________________ By __________________________ Its Attachment 1, Page 2 of 2