| | | | | | | |  | Item #4.
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| | | | | | | | | TO: |
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| Mayor and City Council |
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| Eric Holmes, City Manager |
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| | DATE: |
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| 4/22/2024 |
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| 6/3/2024
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| SUBJECT
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| Comcast Cable Franchise Renewal
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| | | | | | | | Key Points
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- The current cable franchise agreement between the City and Comcast expires on June 30, 2024.
- The renewed cable franchise agreement with Comcast would be for 10 years, effective July 1, 2024 – July 1, 2034.
- The City/County Telecommunications Commission on April 10, 2024, recommended approval of the proposed cable franchise.
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| | | | | | | | | Strategic Plan Alignment |
Culture and Heritage – celebrating culture and heritage.
High Performing Government – a government that is reliable, fiscally responsible, equitable, and open to compromise.
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| | | | | | | | | Present Situation | The current cable franchise agreement between the City (and Clark County) and Comcast will expire June 30, 2024. Federal law outlines the process which local governments must follow in determining whether to renew a franchise with an existing operator. Beginning in 2021, the Vancouver/Clark County Telecommunications Commission (Commission) conducted an extensive public process, consistent with the requirements of federal law, to determine community needs and priorities regarding a renewed franchise with Comcast. A City/County team has negotiated a proposed new agreement which reflects those needs and priorities, as highlighted in the attached “Priority Issues of the Vancouver/Clark County Franchise Renewal Process.” The Commission conducted public hearings and adopted Findings and Recommendations (attached), unanimously recommending that the City and Clark County each award Comcast a renewed franchise agreement to be effective July 1, 2024 through July 1, 2034. (NOTE: City charter requires that franchise agreements be published for at least 30 days between first and second reading.)
The Commission finds that the proposed renewed franchise agreement, if approved, would meet the identified community needs and interests as follows:
- Franchise term of 10 years, effective July 1, 2024 – July 1, 2034;
- Comcast would continue to pay 5% of gross revenues in franchise fees to the City and County;
- Comcast would switch from collecting $1/month per residential subscriber PEG Capital Fees to support capital equipment needs of Public, Education and Government (PEG) channels to 1% of gross revenues;
- The proposed franchise would provide expanded customer service provisions;
- The density buildout requirements for extending the cable service moves from requiring 30 homes per cable mile to 20 homes in aerial neighborhoods;
- Comcast would provide two additional High-Definition (“HD”) simulcast PEG channels by November 2024 for a maximum of five HD channels;
- PEG channels would be available to all cable subscribers; and
- Comcast would maintain where possible Washington State and local programming (including continuation of TVW, the Washington State public affairs station).
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| | | | | | | | | Advantage(s) |
- The PEG provisions of the proposed franchise present an opportunity for substantial public benefit; and
- The proposed franchise is responsive to the special and unique needs of Vancouver and Clark County.
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| | | | | | | | | Disadvantage(s) | Although this would be a nonexclusive franchise, Comcast remains the only cable operator in Vancouver\Clark County, which means that consumers don’t have the opportunity to benefit from the competition another cable operator would provide. However, Comcast has committed to positively impacting the future of this community by agreeing to the proposed new franchise.
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| | | | | | | | | Budget Impact | Franchise fees and PEG Capital Support would continue to be paid under the current franchise. PEG Capital Support will change from being $1 per subscriber per month to 1% of gross revenue. Due to the impacts of the Federal Communications Commission Order 621, the proposed cable franchise agreement will not allow for future award of funds to public users of Comcast Business Services to offset transport costs from the PEG Capital Support Grant Program. Under the expiring cable franchise, the City was receiving $64,000 annually to help offset the transport costs of Comcast Business Services for certain public facilities. The impact of the new agreement will result in a reduction of annual revenue to the PEG grant in excess of $400,000 per year. The budget for PEG grants will be adjusted accordingly in the next Supplemental action and incorporated into the 2025-2026 biennial budget.
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| | | | | | | | Prior Council Review
| November 20, 2023, Council Workshop
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| | | | | | | | | Action Requested | On April 22, 2024, approve the franchise ordinance on first reading, setting date of second reading and public hearing for June 3, 2024.
Jim Demmon, Video Services Manager, 360-487-8706
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