AgdaPkt 2000-08-14 - Laserfiche WebLink

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.' REP�R T To the Honorable Mayor and City Council From the City Manager August 14, 2000 Subject Franchise Agreement with RCN, Inc. for Operation of a Cable Television System Recommendation It is recommended that 1) the City Council introduce an ordinance authorizing RCN, Inc. to operate a cable television system in Redwood City, and 2) the City Council adopt the recommended findings included in this report as required by state law. Background RCN is a relatively new telecommunications firm based in New Jersey that provides local telephone service, cable television, and Internet access. Most of RCN's experience is on the East Coast and only recently has RCN entered California and is specifically targeting San Mateo County as an area in which to provide these services. In the past twelve months, RCN has entered into agreements with South San Francisco, Daly City, and San Mateo. RCN is also close to entering into agreements with the cities of Burlingame, Belmont, Millbrae, and San Carlos. Federal law requires that RCN obtain the City's permission to operate a cable television system in our community. This permission may be granted in the form of either of franchise agreement or open video systems agreement. Since a franchise agreement provides the City with more control over the cable operator's activities staff is recommending that a franchise agreement be used as the vehicle to grant RCN this permission. On December 6, 1999 staff presented Council with a thorough oral and written report on RCN and the technological and legal changes that have occurred that are driving RCN (and other telecommunications firms) to offer these services. A copy of this report is attached for your review. The City engaged the Telecommunications Management Corporation (TMC) to negotiate a franchise agreement with RCN. TMC and its founder Carl Pilnick Nave had a successful relationship with the City that began in the late 1980s when Mr. Pilnick negotiated the current cable television franchise agreement with TCI (now AT&T) on behalf of the San Mateo County Cable Television Authority (SAMCAT). RCN has reimbursed the City for all the costs incurred in connection with TMC services on this project. (The City Council approved the agreement with TMC on August 23, 1999.) Mr. Pilnick conducted an extensive evaluation of the cable franchise applications and a copy of this report is in the City Clerk's office for your review. 1 _ ... .__..