HomeMy WebLinkAboutItem 07 Comcast Franchise ExtensionAGENDA ITEM SUMMARY Meeting Date:
10/18/2021
Meeting Type:
Regular Meeting
Staff Contact/Dept.:
Neil Obringer / FIN
Kristina Kraaz / CAO
Staff Phone No:
541-736-1032
Estimated Time:
05 Minutes
SPRINGFIELD Council Goals:
Provide Financially
CITY COUNCIL
Responsible and
Innovative Government
Services
ITEM TITLE: COMCAST FRANCHISE EXTENSION
ACTION Conduct a public hearing and first reading of the following ordinance: AN
REQUESTED: 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 (FIRST READING)
ISSUE Shall the City Council extend Comcast's existing cable franchise until January 1,
STATEMENT: 2023 to allow the parties to complete their renewal negotiations?
ATTACHMENTS: Attachment 1: Ordinance
DISCUSSION/ The Franchise: City of Eugene, the City of Springfield, and Lane County together
FINANCIAL have granted Comcast a franchise for the operation of a cable communications
IMPACT: system. In 2007, the three entities amended and renewed Comcast's franchise
through August 1, 2018.
The Extensions to date: The term of the franchise has been extended several
times, most recently to January 1, 2022. Initially, the extensions were necessary
because delays occurred while staff tried to resolve a dispute with Comcast arising
from a franchise fee review the jurisdictions conducted. That resulted in staff
simultaneously dealing with fee review issues and trying to negotiate terms for the
franchise renewal. Delays also occurred due to the loss of Comcast personnel who
had been working on the franchise renewal.
Then in 2019, the Federal Communications Commission (FCC) adopted rules
regarding cable regulation which are unfavorable to local government franchising
authorities and affect franchise negotiations. For example, the order not only allows
cable operators to offset from their 5% franchise fees the value of "cable related, in-
kind contributions," like free service or cable boxes in government buildings, it
prohibits local franchising agencies from charging cable operators additional fees -
aside from the 5% cable franchise fee - for use of the public rights-of-way to
provide other services, including broadband internet.
Numerous franchising authorities, including the City of Eugene, filed a lawsuit
challenging the FCC Cable Order. Although the Sixth Circuit Court of Appeals
recently upheld the majority of the order, additional litigation or petitions are likely
to be filed in the case and will not be decided before the current franchise expires
on January 1, 2022. Therefore, the three jurisdictions believe additional time is
needed to allow for the potential litigation to be completed. This proposed
extension ordinance would extend only the term of the current franchise to January
1, 2023. All other franchise terms and conditions would remain the same.
When negotiations are completed, the proposed franchise renewal agreement will
be brought to the City Council for action.
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 and Ordinance 6417 on May 4t", 2020,
extending said franchise for an additional period through January 1, 2022;
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, 2022; 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 January 1, 2022 to January 1, 2023,
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, 6391 and 6417 shall be extended up to and through January 1, 2023.
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, 6391, and 6417 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.
{00015599:1} Attachment 1, Page 1 of 2
APPROVED by the Mayor of the City of Springfield this day of ,
Mayor
ATTEST:
City Recorder
{00015599:1} Attachment 1, Page 2 of 2