HomeMy WebLinkAboutItem 09 Comcast Franchise Extension AGENDA ITEM SUMMARY Meeting Date: 5/4/2020
Meeting Type: Regular Meeting
Staff Contact/Dept.: Neil Obringer / FIN
Kristina Kraaz / CAO
Staff Phone No: 541-736-1032
541-744-4061
Estimated Time: 5 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE: COMCAST FRANCHISE EXTENSION
ACTION
REQUESTED:
Adopt/Not Adopt the following ordinance: AN ORDINANCE TO EXTEND THE
TERM OF ORDINANCE 6208 GRANTING TO COMCAST OF OREGON II,
INC. A FRANCHISE FOR OPERATION OF A CABLE
TELECOMMUNICATIONS SYSTEM, ADOPTING A SEVERABILITY
CLAUSE, AND PROVIDING AN EFFECTIVE DATE
ISSUE
STATEMENT:
Shall the City Council extend Comcast’s existing cable franchise until January 1,
2022 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, 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. A
second extension was adopted on December 3rd, 2018 for an additional period
through June 30, 2020. The parties involved have not been able to reach agreement
on the franchise renewal due to two outstanding issues: (1) 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 January 1, 2022 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.
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CITY OF SPRINGFIELD, OREGON
ORDINANCE NO. ___________
AN ORDINANCE TO EXTEND THE TERM OF ORDINANCE 6208 GRANTING TO COMCAST OF
OREGON II, INC. A FRANCHISE FOR OPERATION A CABLE TELECOMMUNICATIONS
SYSTEM, ADOPTING A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE
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 Commission (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, and Ordinance 6931 on December 3, 2018, extending
said franchise for an additional period through June 30, 2020;
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 June 30, 2020; 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 current franchise from July 1, 2020 to January 1, 2022,
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
Ordinances 6385 and 6391 shall be extended up to and through January 1, 2022.
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,
Ordinances 6208, 6385, and 6391 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.
APPROVED by the Mayor of the City of Springfield this ______ day of ____________, ____.
Attachment 1, Page 1 of 2
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_______________________
Mayor
ATTEST:
__________________________
City Recorder
Attachment 1, Page 2 of 2