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COUNTY OF SAN MATEOInter-Departmental Correspondence |
Department of Public Works |
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DATE: |
May 3, 2002 |
BOARD MEETING DATE: |
May 21, 2002 |
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TO: |
Honorable Board of Supervisors |
FROM: |
Neil R. Cullen, Director of Public Works |
SUBJECT: |
Amendment to the Cable Television Franchise Agreement with TCI Partners of St. Louis, L.P., - San Mateo County Coast Area |
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Recommendation |
Adopt a Resolution authorizing the President of the Board to execute an Amendment to the Cable Television Franchise Agreement with TCI Cable Partners of St. Louis, L.P.( AT&T Broadband), which changes the expiration date of the Agreement from April 30, 2010 to December 31, 2004. |
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Previous Board Action |
1. |
Became a member of the San Mateo County Telecommunications Authority (SAMCAT), a joint powers authority of most of the cities in the County and the County, in order to provide the member public agencies with leverage in dealing with Cable TV franchisees. |
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2. |
Approved assignment of the USA Media Group Cable Franchise Agreement from USA Media Group to TCI Cable Partners of St. Louis, L.P., marketing itself as AT&T Broadband on December 4, 2001. |
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Background |
Your Board, in 1995, approved a television franchise agreement with Coastside Cable T.V., for a five-year term. The agreement included a provision granting an automatic ten-year extension if Coastside completed a system upgrade within 36 months in the Mid-Coast area and 42 months in the South Coast area. The extension was granted and the Franchise Agreement now expires April 30, 2010. USA Media Group purchased the Coastside Cable T.V., cable system in May 1999; and AT&T Broadband purchased the system from USA Media Group in December 2001. |
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Your Board also extended the term of the cable franchises with AT&T Broadband for other unincorporated areas in order to allow for the negotiation of a single cable franchise agreement covering the entire unincorporated area. |
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Key Facts |
Over the past ten years TCI, and its successor, AT&T Broadband, has acquired all of the independent cable television systems operating in the unincorporated areas of the County and the franchises in the cities. |
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SAMCAT is currently retaining a consultant to negotiate with AT&T Broadband for the SAMCAT members in order to have a stronger negotiating position. |
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The Federal Communication Commission's (FCC) regulations provide that franchise agreements that fall within in a specific window of time can be included in other franchise agreement negotiations with the franchisee. |
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AT&T Broadband entered into an agreement with Mid-Coast Television (MCTV) in which AT&T agreed to shorten the term of the franchise agreement with the County in consideration for receiving MCTV's consent to transfer their Public, Education and Government (PEG) Access agreement with USA Media Group to AT&T. |
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The proposed termination date with ATT Broadband falls within the FCC's window of time and will allow for this franchise to be included in the single negotiated franchise for the entire unincorporated area. |
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Discussion |
The recommended amendment changes the expiration date of the cable television franchise agreement from April 30, 2010 to December 31, 2004. This change benefits the County because it will enable us to negotiate a single cable television franchise agreement for the entire unincorporated area. Changing the date also makes it possible for the County to collectively negotiate the franchise renewals as part of the SAMCAT franchise renewal process. SAMCAT has retained the firm of Moss and Barnett to negotiate a franchise renewal agreement with AT&T on behalf of the cities of Belmont, Brisbane, Foster City, Millbrae, Redwood City, San Carlos, San Mateo, and the County of San Mateo. |
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Other Future Actions |
AT&T Broadband recently merged with Comcast Corporation to form AT&T Comcast Corporation. Your Board will be asked to approve Consent to the Corporate Transfer of Control required by the merger sometime in the next few months. SAMCAT is currently reviewing the proposed Transfer of Control on behalf of its member agencies. |
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Vision Alignment |
We believe our recommendation is consistent with Shared Commitment "Responsive, effective and collaborative government", and goal Number 22, "County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County" as the amendment enables the County to collaborate with other members of SAMCAT to jointly negotiate a franchise agreement that best serves San Mateo County cable customers. |
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Fiscal Impact |
Changing the expiration date on the franchise agreement has no fiscal impact. |
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A form of resolution and agreement has been approved by County Counsel and AT&T has indicated that they will execute the amendment. |