AgdaPkt 2006-01-09 - Laserfiche WebLink

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7.4/1-4 3. Franchise Fee. L Five percent (5%) of Comcast's gross revenues will be paid to each agency. iL The franchise fee is due quarterly accompanied by a report showing the basis for the computation. 4. PEG Access Programming. i. Two channels initially for Redwood City; two additional upon request. ii. Capital grants distributed to agencies upon the effective date of the Franchise, on or before 1/31/06, on or before 1/31/07; on or before sixty (60) months from the effective date of the Franchise, and on or before one hundred twenty (120) months from the effective date of the Franchise. iii. Total value of PEG capital obligations for all eight (8) Agencies exceeds $4,400,000. 5. Fiber Network. i. Comcast shall provide the agencies a construction capital credit for the construction of a fiber network between designated governmental/educational buildings. ii. Final construction route and plans to be finalized within ninety (90) days of the effective date of the Franchise. iii. Total value of the fiber network construction for all eight (8) Agencies exceeds $3,304,000. 6. Financial/lnsurance. i. Performance Bond - $250,000 each agency, if construction is commenced. ii. Security Fund for each agency. iii. Liquidated damages assessed in the event of a breach of the Franchise. Staff is recommending the fifteen (15) year term based upon several factors: 1. The financial package, the majority of which we receive in the first five (5) years of the agreement, is significant. Comcast has the right to pass these costs through to their subscribers - a shorter period would yield a higher per-month pass through, something that is not in Comcast's interest. 2. A fifteen (15) year deal, given the political and regulatory environment, may lock Comcast into technical, customer service, and financial obligations. The impact of any potential "take aways" of local control in federal legislation may be reduced, to the extent that such legislation does not automatically override existing franchise agreements. 3. Several communities in California have renewed franchise agreements with Comcast in the past twelve (12) months - nearly all of which have been fifteen (15) year terms.