HomeMy WebLinkAboutItem 8.1 Cable TV Renewal
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 16, 1999
CITY CLERK
Fi I e # [I][{i]l5][15J-[3][Q]
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SUBJECT:
Report on Cable Television Franchise Renewal Process; Appointment
of one Council representative to serve on the Tri- Valley Cities Cable
Television Franchise Renewal Committee.
(Report Prepared by: Sue Barnes, Management Assistant)
EXHIBITS ATTACHED: None
RECOMMENDATION: ~l. Receive Staff Report.
2. Appoint one Council representative to serve on Tri- Valley Cities
Cable Television Franchise Renewal Committee.
FINANCIAL STATEMENT:
The largest out-of-pocket expense related to the franchise renewal
process will be for consulting services, the cost of which is to be
shared equally by the Cities of Pleasanton, Livermore, San Ramon,
and Dublin. The City of Dublin's share is $14,575. The current
ordinance provides that the company (TCI) shall be responsible for
franchise processing costs. The City of Dublin will bill TCI for
reimbursement of its share of the consulting costs.
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DESCRIPTION:
The current cable television franchise agreement between the City of Dublin and TCI of California was entered
into on January 1, 1986, and expires on December 31, 2000.. The Cable Communications Act of 1984, as
amended by the Cable Television Act of 1992, establishes rules for renewing cable television franchises. The
renewal process begins upon written notification from the cable operator, which takes place between 36 and 30
months prior to franchise expiration.
The Cable Communications Act refers to the process to review TCI's perfonnance under the current franchise,
hear public comments, and identify future cable-related needs as a "proceeding." The proceeding also initiates
franchise renewal negotiations between the City and TCI, which federal law dictates should be concluded no
later than December 31, 2000.
On February 2, 1998, the City received correspondence from TCI, requesting that Dublin commence franchise
renewal proceedings. Franchising authorities have six months from the date of the notice to begin proceedings.
The Dublin City Council voted to begin the proceedings on July 21, 1998.
The Cable Communications Act provides two general methods for renewing franchises: 1) a formal process; and
. .:Lan info~l proce~. ~st fran~sin!.au~rities r~m~d ~e infor:::al proc:.::, ~it~ovides ~r~ _
COPIES TO: Tom Baker, General Manager, TCI-Tri-Valley Cable Television System
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flexibility in responding to proposals during the negotiations phase. While Tel filed their notice for formal
renewal proceedings, the notice stated TCI's desire to utilize the informal process. It is TCI's intention to enter
into a formal renewal process if renewal negotiations cannot be concluded on an informal basis.
City of Dublin staff are coordinating franchise renewal efforts with staff from the Cities of Pleasanton, San .
Ramon and Livermore, whose cable franchises are similar in scope and term. Joint pooling of the jurisdictions'
expertise and resources will provide opportunities for reducing franchise renewal costs and maximizing
negotiations.
The four Cities jointly signed an agreement of services with Telecommunications Management Corporation
(TMC), to provide assistance with the franchise renewal process. TMC is an independent consulting fiml
with no ties either to cable television system operators or equipment manufacturers. They have been assisting
municipalities in all aspects of their agreements with cable operators since 1972. .
TMC's statement of work includes the following:
I. An update of the Cities' Cable Television Ordinances
2. An assessment of community needs
2A. Government and Educational Access Needs Assessment
2B. A minimum of one public meeting and/or workshop for each of the four Cities
2C. A telephone subscriber survey
3. An audit of franchise fees
4. Technical analysis and recommendations of renewal objectives
5. Participation in franchise renewal negotiations
TMC has already completed a draft update of the Cities' Cable Television Ordinance, and forwarded it to each of
the four Cities. The draft ordinance is currently being reviewed by the Cities' staff and attorneys. The timeline .
relating to updating the ordinance is as follows:
Task
I. Complete staff review of draft ordinance
2. Staff workshop to review comments
3. Forward staff comments to TMC
4, TMC returns updated ordinance to Cities
5. Forward updated draft to Franchise Renewal Committee
for review
6. Franchise Renewal Committee meeting with TMC
to review final changes to ordinance
Deadline
March 15
March 24
April 1
April 15
April 23
April 30
City staff members from the each of the four Cities have met several times to discuss various elements of the
franchise renewal process. Tills group has been named the "Tri-Valley Cities Cable Television Franchise
Renewal Committee." In addition to one to two City staff representatives from each City, the committee will
include the consultant, and other technical advisors, such as City attorneys, who will attend meetings on an
as-needed basis. At this point, staff is recommending that an elected official from each City be appointed to
serve on the committee. In addition to assisting with the ordinance review, the appointee will also participate
in future renewal tasks and meetings. The City Manager and/or his designee will lead the City's negotiating
team, but the elected official appointee may be called upon to assist with negotiations in the event of an
Impasse.
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Staff will return to the City Council in May with an anticipated schedule for the completion ofthe remaining
franchise renewal tasks.
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