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<br />7.4/1-/ <br /> <br />R.EPO R T <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 9, 2006 <br /> <br />Subject <br />Ordinance granting a non-exclusive Cable System Franchise Agreement to Comcast of <br />California IX, Inc. with an effective date of March 1,2006. <br /> <br />Recommendation <br />Introduce an Ordinance granting a non-exclusive Cable System Franchise Agreement to <br />Comcast of California IX, Inc. with an effective date of March 1,2006. <br /> <br />Background <br />Redwood City and the seven other agencies comprising the San Mateo County <br />Telecommunications Authority (SAMCAT) - Belmont, Brisbane, Foster City, Millbrae, San <br />Carlos, San Mateo, and San Mateo County - have been negotiating a renewed cable <br />franchise agreement with Comcast California IX, Inc. ("Comcast"). Based on 2004 data, the <br />eight SAMCA T agencies represent close to 78,000 cable subscribers. After nearly three <br />years of negotiations, the SAMCA T cities and Comcast have reached agreement on the <br />terms of a renewed Cable System Franchise Agreement ("Franchise"). <br /> <br />In 2002, the eight SAMCAT agencies commenced franchise renewal negotiations with the <br />then-incumbent cable operator, AT&T Broadband. The eight SAMCAT agencies hired Brian <br />Grogan, Esq. of Moss & Barnett to take the role as lead negotiator. In addition, a negotiating <br />team of four SAMCA T agency representatives (from Brisbane, Foster City, San Carlos and <br />San Mateo) and Greg Rubens, SAMCA T legal counsel, was created to participate in the <br />franchise negotiations. <br /> <br />A Community Needs Ascertainment study was conducted, which included telephone surveys <br />and community-based focus groups representing residential, business, educational, and <br />local government users. A technical review of AT&T's cable plant was conducted, as well as <br />a legal review of existing franchise agreements in conjunction with current federal and state <br />law. Negotiations continued as Comcast took over AT&T Broadband's operations in 2003. <br /> <br />In June 2005, the eight SAM CAT agencies and Comcast reached a tentative agreement in <br />relation to the financial terms and conditions of a Franchise. Since that time, Brian Grogan <br />and Comcast have held numerous phone conferences to work out final language that <br />represents the negotiated agreement. <br /> <br />The proposed non-exclusive cable franchise agreement, including all exhibits, is available in <br />the City Clerk's office. A summary of the agreement's key features is attached to this report <br />in the form of two memorandums from Brian Grogan, and additional pertinent points are <br />