AgdaPkt 2006-01-09 - Laserfiche WebLink

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;7 4ð-£' outlined in this report. The Franchise allows Comcast to operate its cable system in Redwood City and to use the City's rights-of-way in providing those services to the City's residents and businesses. As compensation for the use of our rights-of-way, the City shall receive five percent (5%) of gross revenues from Comcast generated by its cable television operations in the City. The City will also receive: . Public, educational and governmental ("PEG") capital grants totaling $854,932 ($228,854 of that amount will go as partial funding to Peninsula TV) over the life of the agreement. Over 80% of these funds will be received within the first five years of the agreement. . Construction of a Fiber Network, to be completed on or before December 31 , 2007, to connect various public facilities for video, voice and data communications (construction and equipment costs for Fiber Network in Redwood City valued at $674,613). In light of the value of compensation received as part of the renewal, the City has tentatively agreed to a term of fifteen (15) years. However, given the nature of current federal legislation, Comcast and the City have agreed to a clause that indicates if federal or state legislation strips local cities of the ability to franchise cable or open video service providers, the Franchise will be terminated early, but at a period that is no shorter than eight (8) years. Nearly 83% of PEG capital grants, and 100% of the Fiber Network and other funding, will have been received by the City by that time. Toward conclusion of the negotiations with Comcast, national and state legislators throughout the country have begun considering legislation that would create national or statewide master franchise agreements - in essence, stripping away local cable franchising. For example, this summer Texas adopted a statewide franchise rendering local franchising obsolete. The negotiation team is concerned that this trend may extend to California and has urged the eight SAMCA T agencies to complete the deal with Comcast and seek reasonable protections in the Franchise to the extent that national or California law would preclude or override this Franchise. The total financial package across the eight SAMCA T agencies totals approximately $7.7 million in capital grants and other funds. Comcast reserves the right under federal law to pass-through these costs to its subscribers on an annual basis, over the term of the Franchise. Over a fifteen (15) year period, the value of the total package equates to an estimated fifty-five cents (55Ø) per subscriber per month. Comcast has reserved the right to begin passing these costs through to subscribers as a separate line item on their bill. The average cable bill, based upon industry surveys and informal surveys conducted in the surrounding area, is approximately $60 per month. This pass-through represents less than one percent (1 %) of the average cable subscriber's total bill. What the subscriber gets in return for this added fee is local coverage of news, events, and issues that affect San Mateo County and each city individually, through its government