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<br />6.3D <br />Page 1 <br /> <br /> <br />January 8, 2007 <br /> <br />Subject <br />Consideration of a Resolution Establishing Conditions for the Approval of a Transfer of a <br />Cable TV Franchise from RCN Telecom Services Inc. to Astound Broadband LLC <br /> <br />Recommendation <br />Adopt the attached resolution which establishes the conditions for the approval of a transfer <br />of a Cable Television Franchise from RCN Telecom Services Inc. to Astound Broadband <br />LLC. <br /> <br />Adopt the attached resolution authorizing the assigning of encroachment agreements. <br /> <br />Background <br />In August of 2000, the City Council approved a Cable TV franchise agreement with RCN <br />Telecom Services (RCN) to provide Cable TV services to the residents of the City of <br />Redwood City. <br /> <br />On September 21, 2006, Redwood City received notice that the assets and franchises of <br />RCN were being sold to Astound Broadband LLC (Astound). Astound is a video provider that <br />has been active in the Contra Costa County area (Concord, Walnut Creek; Contra Costa <br />County unincorporated areas) as well as in the Pacific Northwest. They are based in <br />Kirkland, Washington with an office in the East Bay. The other agencies comprising the San <br />Mateo County Telecommunications Authority (SAMCAT) received this notice at <br />approximately the same time. <br /> <br />Under Federal Law and the terms of the City's non-exclusive Cable TV franchise with RCN, <br />each franchising agency has the right to review the proposed transfer of the franchise to <br />Astound. The 9 agencies in San Mateo County worked through SAMCA T to review the <br />proposed transfer. Michael Friedman of Telecommunications Management Corporation <br />(TMC) was retained by the agencies to perform this review. <br /> <br />The review by TMC resulted in a 35 page analysis of the proposed transfer. In summary, <br />TMC notes that any transfer of the Cable TV Franchise from RCN to Astound should include <br />an agreement between Astound and the City which continues the terms of the franchise (and <br />any amendments and encroachment agreements). TMC also recommends that Astound <br />cover the cost of the transfer review process, that it activate the third and fourth PEG <br />channels that Redwood City is entitled to under the existing franchise by December 31, 2007, <br />and that the attached agreement be signed by Astound. <br /> <br />Staff concurs with the TMC report and has worked with TMC and SAMCA T to prepare the <br />