Agenda Date: 12/10/2019
Subject:
Title
Comcast Cable Franchise Agreement Discussion
Body
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Prepared By: |
Kelli Narde, Director of Communications |
PURPOSE:
This study session is to provide background information to city council in anticipation of first reading of the Comcast cable television franchise renewal scheduled for December 17, with second reading and public hearing expected on January 7, 2020.
PRESENTATIONS:
Staff Presenter(s): Reid Betzing, City Attorney; Kelli Narde, Communications
Director
Additional Presenter(s): Ken Fellman, Kissinger & Fellman
SUMMARY:
Littleton cable television subscribers have been served by Comcast since 2000. The 15-year franchise expired in October 2015 and is in need of renewal. Staff has been negotiating with Comcast for a number of years and is pleased to present a franchise for council consideration that will serve the needs of Littleton residents who chose to contract with Comcast for the next 10 years.
PRIOR ACTIONS OR DISCUSSIONS:
The franchise has remained intact through a Letter of Agreement between the city and Comcast as negotiations proceeded. The city attorney and Ken Fellman have provided an Attorney Client Privileged document which provides background on the negotiations.
ANALYSIS:
Staff Analysis
Negotiations with Comcast have proceeded in a very productive manner over the last 6 months. Staff believes this franchise is in the best interest of Littleton citizens and does not believe this document can be subjected to additional negotiation.
Council Goal, Objective, and/or Guiding Principle
N/A
Fiscal Impacts
Comcast compensates the city a 5% franchise fee for use of the public right of way to deliver its services. This amounts to approximately $660,000 annually. In addition, Comcast passes through a .50 cent per subscriber/per month PEG fee as a capital contribution towards the purchase of equipment for Channel 8, approximately $55,000 annually. Staff was able to negotiate an increase of .10 cents per subscriber/per month which will generate approximately $10,000 more annually.
Alternatives
1) Direct staff to place the Comcast franchise on first reading at the December 17 council meeting.
2) Direct staff to renegotiate the franchise with Comcast.