AgdaPkt 2004-09-13 - Laserfiche WebLink

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� .4c-z Mateo County that were so interested, to engage Telecommunications Management Corporation (TMC) to negotiate the requested amendments to the existing franchise agreement on behalf of the City. TMC is the same firm that the City hired in 2000 to negotiate the existing franchise agreement with RCN. Recommended Amendments to Franchise Agreement There are three substantive areas of amendment to the existing franchise agreement that _ are being recommended: 1) Add language that shortens the term of the franchise agreement should RCN not complete Significant Cable System Construction.' 2) Provide for payment of liquidated damages to the City in the amount of $10,000 per year for each year (up to a maximum of $50,000) that RCN does not complete Significant Cable System Construction. 3) RCN will provide a fiber optic network the length of EI Camino Real in San Mateo County that will be available for the participating agencies in the county to use and operate for governmental business. RCN will also purchase the equipment necessary for RCN franchise cities to access this network. This network will be leased to the participating cities for $1.00 per year for 25 years. RCN will also provide a side-letter stating that it intends to negotiate comparable levels of consideration for the other San Mateo County cities. Although different needs and circumstances may require that such consideration is not identical (for example, some cities may not want to participate in the fiber nefinrork), RCN will meet and confer with Redwood City and the other participating cities with respect to any significant discrepancies in the overall value of the consideration. Should RCN not have completed any Significant Cable System Construction befinreen August 2006 and August 2007, the remaining term of their franchise agreement will be reduced from August 2011 to August 2010. Should RCN not have completed any Significant Cable System Construction befinreen August 2007 and August 2009, then the franchise expiration date will be moved to August 2009 at which time RCN and the City will be required to open negotiations for a new franchise agreement. Given the current State and Federal laws that regulate cable television franchises and the potential issues that Comcast, the other cable operator in Redwood City, could raise, staff and TMC agree that this is one of the best solutions available. Other Jurisdictions RCN has franchise agreements in the following cities in San Mateo County: Daly City, Millbrae, Burlingame, San Mateo, Belmont, San Carlos, and Redwood City. To date construction and activation has occurred only in Redwood City, Burlingame, San Mateo, and Daly City. As the date this staff report was prepared, San Carlos had adopted a similar amendment to their franchise agreement while the other cities, with the exception of San Mateo and Daly City, will likely be approving similar amendments. Alternatives Council may elect not to adopt this amendment and may direct staff to negotiate other ' Significant Cable System Construction is defined as that activation of 20 nodes. A node is a system component that has the capacity to serve approximately 150 residences.