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REPORT <br /> TO the Honorable MaYor and City Counci <br /> From the City Manager <br /> <br />July 15, 2002 <br /> <br />Subject <br />Memorandum of Understanding (MOU) allowing for cable interconnection between RCN <br />and AT&T Broadband <br /> <br />Recommendation <br />Approve the memorandum of understanding between the cities of Belmont, Brisbane, <br />Millbrae, Redwood City, San Carlos, San Mateo, the County of San Mateo and AT&T <br />Broadband. <br /> <br />Background <br />As you may recall from a previous communication, San Mateo County Telecommunications <br />Authority (SAMCAT - consisting of San Mateo County cities holding cable television <br />franchise agreements with AT&T) noticed a franchise violation hearing against AT&T <br />Broadband. The violation consists of their failure, among other things to negotiate an <br />interconnection of their system with RCN of California after SAMCAT made the request on <br />October 11,2001. The franchise includes language requiring AT&T to negotiate in good <br />faith with other cable providers to interconnect the AT&T system with other systems. After <br />it became clear that no substantial progress was occurring, SAMCAT at its March 2002 <br />meeting hired Carl Pilnick of Telecommunications Management Corporation to facilitate a <br />resolution of the issue and provide a viable interconnection between the systems. The <br />resulting negotiations led to the memorandum of understanding. <br /> <br />The memorandum of understanding is intended to document the resolution of the <br />interconnection issue under the current franchise and any extensions thereof. The <br />memorandum provides that AT&T Broadband will pay $15,000 to SAMCAT as part of its <br />support for Public, Educational and Governmental programming. SAMCAT will use these <br />funds to lease fiber, purchase equipment and interconnect the RCN and AT&T systems in <br />San Mateo. This contribution and the lease will be interpreted as meeting the functional <br />requirements of an interconnection requested in October, 2001. With this agreement <br />Peninsula TV and SAMCAT will have the potential to transmit their programming and live <br />cablecasts to virtually all cable subscribers in San Mateo County. RCN has agreed to <br />maintain its connection to the AT&T system during the term of its franchise <br /> <br />The memorandum further provides that the City will not use the interconnection issue to <br />deny consent to the change of control of the cable system to Comcast Corporation. <br /> <br />At SAMCAT's special meeting on May 28, 2002, the board recommended approval of this <br />memorandum of understanding. It is now being presented to the City Council for final <br />approval and signature authority. <br /> <br />Alternative <br />Council can elect not to approve the memorandum of understanding. <br /> <br /> <br />