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�i/ • �' � <br /> � I <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> September 13, 2004 <br /> Subject <br /> Ordinance approving an amendment to extend the Comcast cable television franchise until <br /> October 30, 2005, allowing Comcast to continue to operate a cable television system in <br /> Redwood City during franchise renewal negotiations. <br /> Recommendation <br /> Introduce an ordinance approving an amendment to extend the Comcast cable television <br /> franchise until October 30, 2005. <br /> Background <br /> In 1991 the City Council approved a Cable TV Franchise Agreement with TCI (which later <br /> became AT&T Broadband, and then Comcast) for a period of 12 years. Redwood City has been <br /> working with six other cities and the County on a group franchise renewal process, as the San <br /> Mateo County Telecommunications Authority (SAMCAT). This process has included a technical <br /> audit, legal review, and community needs assessment of cable TV services and needs in <br /> Redwood City and the other local governments. This group process continues to be beneficial to <br /> Redwood City since it enables <br /> us to share resources in hiring contract legal and technical assistance at a fraction of the cost of <br /> contracting individually. <br /> While the process has moved along in good faith, it has taken longerthan expected due to both <br /> the need to negotiate a settlement on the AT&T/Comcast merger and transfer of operations, and <br /> to ongoing negotiations related to contract term, interconnections, and other issues. The Council <br /> has granted several extensions to the franchise agreement to accommodate the continuing <br /> process (February 10�', 2003; October 27"', 2003; and January 12�', 2004). <br /> Upon the granting of the last extension, SAMCAT's contract legal counsel estimated that <br /> negotiations with Comcast regarding a renewed Franchise would conclude by late spring, 2004. <br /> Unfortunately, while good faith negotiations are continuing in earnest, this has not turned out to <br /> be the case and staff is therefore requesting an 18-month extension. <br /> Alternative <br /> The Council could choose not to introduce this ordinance approving an amendment to extend <br /> the Comcast cable television franchise; however this would jeopardize the franchise renewal <br /> negotiations and potentially impact cable television service in Redwood City. <br />