COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

December 16, 2003

BOARD MEETING DATE:

January 13, 2004

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Public Works Director

SUBJECT:

Six-Month Time Extension of the Term of Cable Television Franchise Agreements with Comcast Corporation for the Broadmoor, North Fair Oaks, Burlingame Hills, Skyline, King's Mountain, Skylonda and Los Trancos Areas

Recommendation

Adopt a resolution authorizing the President of the Board to execute amendments to Existing Television Franchise Agreements with:

1.

Comcast of California IX, Inc. a California corporation - for the Broadmoor and North Fair Oaks areas;

2.

Comcast of California/Illinois, LP, a Colorado limited partnership - for the Burlingame Hills area; and

3.

Comcast of California/Colorado/Florida/Oregon, Inc., a Georgia corporation - for the Los Trancos, Skylonda, and Skyline/King's Mountain areas,

which extends the term of these agreements until June 30, 2004.

Previous Board Action

1.

Approved the transfer of cable television franchises to Comcast corporations in June of 2002.

2.

Approved time extensions to three expiring Comcast Franchise Agreements until December 31, 2003.

Key Facts

Extending the terms of these franchise agreements continues to allow us to have the franchises for these County areas negotiated by the San Mateo County Telecommunications Authority (SAMCAT), which is negotiating new multi-year Master Cable Television Franchise Agreements between Comcast and seven cities.

Discussion

Your Board, in 1999, extended the term of the above referenced cable television franchises that were due for renewal, in order to join with other SAMCAT members to collectively negotiate a new Master Cable Television Franchise Agreement. Face to face negotiations have begun with Comcast and the negotiators have requested additional time to complete a new Agreement.

We believe that the County and its cable users benefit by our negotiating through SAMCAT in that the franchise renewal cost is shared with seven cities and the collective bargaining power is much greater than any one member negotiating on their own.

Vision Alignment

We believe our recommendation is consistent with the Shared Commitment to be a "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 an amendment to the various cable franchise agreements enables the County to collaborate with cities to jointly negotiate a new multi-year franchise agreement that best serves our collective cable customers.

Fiscal Impact

The cost of negotiating the franchise agreement will be paid for with franchise fees and it is estimated that the County share of the cost will not exceed $20,000. The new Franchise Agreement being negotiated could provide that Comcast reimburse SAMCAT members for the cost of the Franchise renewal. Franchise fees received by the County from Comcast are set by federal statute and not expected to change during the contract term. Currently they are set at five percent (5%) of the gross revenue, which generates approximately $290,000 per year. There is no net impact to the General Fund.

Forms of a resolution and agreements have been approved by County Counsel. The Comcast entities will execute the amendments to the agreements and return them after your Board has approved the resolution authorizing the President of the Board to execute the agreements.