HomeMy WebLinkAboutB&G Comcast Franchise RenewalCitv of Auburn
Cable Franchise Renewal -Proposed Work Plan
The following is the work plan for the City's Cable Franchise Renewal Project. Michael
R. Bradley of Bradley & Guzzetta, LLC, will be the lead consultant and will coordinate
efforts between Bradley & Guizetta. LI.C and its Team Members (CBG
Communications, Inc. and Front Range Consulting, Inc.). The major tasks of the project
have been divided into three phases.
Phase I -Informal Renewal
Estimated Fees
1. Brief City Council on Cable Franchise Renewal and $1,000.00
Proposed Work Plan (June 2007)
2. Identify Needs and Priorities (June 2007) $1,000.00
a. Participation of other cities
b. Future Role of Puget Sound Access
c. Identify Vision of PI:G channels (City to do in-house)
i. Equipment and Staffing Needs (City)
3. Current Cable Franchise Compliance Review (June 2007)
a. Rate Review -FCC Forms 1235, 1205 and 1240 $7,500.00
b. Franchise Fee Review $3,500.00
c. I-Net Ownership Review $3,OOOA0
i. City must provide all documentation related
to I-Net ownership
4. Engage in brief informal negotiations (July-August 2007) $7,500.00
5. Prepare Franchise Documents (September 2007) $3,OOO.U0
Total 6atimatcd Phase I Fees S26,SOO,U0
Phase 11 -Formal Renewal Estimated Fees
1. Conduct Community Needs assessment telephone Survey $20,000.00
2. Urafi Needs Assessment Report $15,000.00
3. Notice Franchise Non-Compliance $1,000.00
4. Hearings on Non-Compliance ---
5. Drat3 Staff Report and Request for Renewal Proposals (RFRP) $15,000.00
6. I'rescnt Staff Report and RFRP to City Council $2,00.00
7. Issue Staff Report and RFRP $1,000.00
8. Receive Formal Renewal Proposals and review for compliance $x,000.00
with RFRP
9. Prepare Report and Recommendations on Proposal $10,000.00
10. Present Report to Council $3,000.00
1 1. Accept Proposal and complete project $5,000.00
Total Estimated Fers for Phase I[ 577,SOO.llll
Nhase 111 -Denial of Cable Franchisr (Tasks and Fecs TBD)
Yas_'~ 1 uC
Louie Rempher
From: Michael Bradley [bradley@bradleyguzzetta.com]
Sent: Wednesday, August O8, 2007 7:39 AM
To: Louie Rempher
Subject: RE: July (yes) WATOA newsletter
Great -Thanks -There are several reasons to do a detailed rate review, such as 1) It will identify issues that you
can use as leverage in renewal; 2) Comcast has not submitted a final FCC Form 1235 resulting in Auburn
subscribers paying about $1.15 more each month than Renton; 3) It may result in lower programming and
equipment charges and corresponding rate refunds to subscribers; 4) It may result in lowering the maximum
permitted rates for programming and equipment, thus capping future rate increases; 5) It generally good public
policy to use your rate regulatory authority periodically to assure subscribers in Auburn are being treated fairly.
Thanks for forwarding the newsletter and brochure to me
Mike
From: Louie Rempher [mailto:lrempher@auburnwa.gov]
Sent: Tuesday, August 07, 2007 3:53 PM
To: Michael Bradley
Subject: FW: July (yes) WATOA newsletter
Mike,
So why do a rate review? I have a meeting with Mayor Lewis late on Friday to go over your new proposal and
will try to get back to you on Monday morning first thing.
Lurrie Rempher
City of Auburn
Inii~rmation Services Director
2 First St SE
Auburn, WA 98002
Ph: 253 288 3160
Ccll: 253 261 20J~
Faz: 2~3 876 1920
From: Jill Novik [mailto:Jill.Novik@Seattle.Gov]
8/ 10/2007
Page 2 of 3
Sent: Tuesday, August 07, 2007 11:02 AM
To: Duanna Richards; Jeremy Chevalier; Lorrie Rempher; victoria lincoln; david kerr; laura blechen; Cecelia
duncan; michael weight; Jan roegner; stephen Clifton; cinci Cruz; mauri moore; Jon funfar; kate reardon; mark
Somers; Chris givens; Joseph meneghini; timothy smith; marie mosley; dea drake; mike Carrington; tim Clark;
brenda cooper; Janice perry; Judy Jones; James southworth; nancy abell; jell Johnson; don kelly; Shawn ward;
bonnie Walton; david tibbot; ronald hansen; mike charboneau; Wayne collop; matthew micona; SorToya Lowry;
tina rogers; Sam Belcher; ron lucas; eric trimble; donna mason; Jim demmon; mehrabian Sam; randy beehler;
Shannon murphy; Brian Pearson; iwen Wang; mehdi sadri; Pam kolacy; carol mathewson; Cheryl Carlson; Chas
hitton; john miller; randall lewis; linda seesz; sandy Barrett; mitch Wasserman; george Beyer; bill oltman; mark
pease; dal Weitzel; marty mulholland; ann Suter; corbitt loch; daniel dootson; Susan kruller; Chris bacha; david
Jones; chuck tare; Bruce crest; fred Christ; Craig fischer; Chris jaramillo; frank abe; James burns; marcine
anderson; watt yeager; Judy devall; Calvin schimpf; dave spencer; keri stokstad; kim van ektrom; Patrick hirsch;
donn hedden; elise child; john marshal) parker; Brenda Tate; Janet Jensen; Jill Novik; Tony Perez; marlene feist;
robert beaumier; Chris latham
Subject: July (yes) WATOA newsletter
Late breaking news:
FCC Order
Please note that the FCC Order was published yesterday in the Federal Register, so we can consider it in effect.
See attached newsletter for more information.
Effective Competition
We understand that Comcast is filing in man places for effective competition. The main impact -- and it is a big
one -- is that you could lose your ability to regulate rates. Please see the article below for more information.
http://hraunfoss.fcc.gov/edocs~ublic/attachmatch/DOC-275763A l.doc
from: Multichannel News
Comcast Seeks Rate Relief in 150 Communities
Cable Operator Says It Faces Effective Competition
By Ted )learn -- Multichannel News, 8/6/2007 7:39:00 PM
Comcast, in a large request, asked the hederal Communications Commission to remove the last
vestiges of rate regulation in nearly 150 communities across the country, the agency said Monday in a
public notice that lacked key details.
Comcast sought deregulation in nearly 50 petitions for effective competition, including such places as
Salt Lake City, the Chicago suburb of Du Page County and "huscaloosa, Ala. The request appeared to
be one of the largest the hCC has received from a single cable company since the onset of rate
regulation under the 199? Cable Act.
In March 1999, the 1~CC lost authority to regulate the price of expanded basic. Basic cable rates were
still subject to price controls, however, until the cable operator could demonstrate that pay "TV
competitors were serving 15°% of the households in the relevant franchise area. When the pay 'hV
competitor is landline service affiliated with a phone company, no penetration test applies.
8/ 10/2007
P lc~ ; c~1~ ;
In the public notice, the FCC didn't indicate the legal basis for Comcast's request for deregulation
The vast majority of petitions granted by the FCC over the years were based on the joint subscriber
penetration of DirecTV and EchoStar Communications. Increasing, the so-called phone-company test,
created by the Telecommunications Act of 1996, has come into use with the pay TV entry of AT&T
and Verizon Communications.
When the FCC grants a petition for effective competition, the local government loses authority to cap
the price of the basic tier, which all cable subscribers must buy. According to the PCC's most recent
cable price survey, the national average price for basic cable is about $14 per month.
In addition, the cable operator is not required to offer a uniform rate structure, and it may require
subscribers to purchase any number of programming tiers belore they may access premium and pay-
per-view offerings.
The FCC doesn't face a formal statutory deadline to act on Comcast's filings.
Jill Novik
2007 WATOA President
8i 1 Oi2U07
Pale I of~ 4
Lorrie Rempher
From: Michael Bradley ~bradley@bradleyguzzetta.com]
Sent: Wednesday, August 08, 2007 7:59 AM
To: Lorrie Rempher
Subject: RE: July (yes) WATOA newsletter
Comcast is making an effort of filing Petitions for Effective Competition in several areas of the country. One of
the effects of such a Petition being granted by the FCC is that the Franchising Authority would lose its rate
regulatory authority. I'm assuming that Comcast has not yet filed such a Petition for Auburn, I have not received
one, and we check the FCC docket regularly. You should be aware that if you do receive such a Petition, the
City only has 20 days following public notice to respond.
If Comcast has not yet filed on Auburn, I do not believe it would be a waste of time or money for the reasons set
forth in my previous a-mail. Although it may be one of the last times the City will be able to do this.
Mike
From: Lorrie Rempher [mailto:lrempher@auburnwa.govJ
Sent: Wednesday, August 08, 2007 9:23 AM
To: Michael Bradley
Subject: RE: July (yes) WATOA newsletter
Sorry, didn't mean to forward the watoa stuff, I was forwarding the comment that Comcast is going after
deregulation of rates---which raises the question of whether or not this is a waste of time and money to review
rates if they are going to be allowed to deregulate? Thanks Mike, I will get back to you after I meet with Pete
Friday afternoon
Lorrie Rempher
City of Auburn
Information Services Director
2 first St SE
Auburn, V14'A 98002
Ph: 2~3 288 3160
Cell: 253 261 20~~
l=ax: 2~3 876 1920
From: Michael Bradley [mailto:bradley@bradleyguzzetta.com]
8/10/2007
Pagc 2 of 4
Sent: Wednesday, August 08, 2007 7:39 AM
To: Lorrie Rempher
Subject: RE: July (yes) WATOA newsletter
Great -Thanks -There are several reasons to do a detailed rate review, such as 1) It will identify issues that you
can use as leverage in renewal; 2) Comcast has not submitted a final FCC Form 1235 resulting in Auburn
subscribers paying about X1.15 more each month than Renton; 3) It may result in lower programming and
equipment charges and corresponding rate refunds to subscribers; 4) It may result in lowering the maximum
permitted rates for programming and equipment, thus capping future rate increases; 5) It generally good public
policy to use your rate regulatory authority periodically to assure subscribers in Auburn are being treated fairly.
Thanks for forwarding the newsletter and brochure to me.
Mike
From: Lorrie Rempher [mailto:lrempher@auburnwa.gov]
Sent: Tuesday, August 07, 2007 3:53 PM
To: Michael Bradley
Subject: FW: July (yes) WATOA newsletter
Mike,
So why do a rate review? I have a meeting with Mayor Lewis late on Friday to go over your new proposal and
will try to get back to you on Monday morning first thing.
Lorrie Rempher
City of Auburn
Information Services Director
2 First St SE:
Auburn, WA 98002
Ph: 253 288 3160
Cell: 253 261 2055
Fax: 253 876 1920
From: Jill Novik [mailto:Jill.Novik@Seattle.Gov]
Sent: Tuesday, August 07, 2007 11:02 AM
To: Duanna Richards; Jeremy Chevalier; Lorrie Rempher; victoria lincoln; david kerr; laura blechen; Cecelia
8/ 10/2007
Page 3 of~4
duncan; michael weight; jan roegner; Stephen Clifton; cinci Cruz; mauri moore; jon funfar; kate reardon; mark
Somers; Chris givens; Joseph meneghini; timothy smith; marie mosley; dea drake; mike Carrington; tim Clark;
brenda cooper; Janice perry; Judy jones; james southworth; nancy abell; jell Johnson; don kelly; Shawn ward;
bonnie Walton; david tibbot; ronald hansen; mike charboneau; Wayne collop; matthew micona; SorToya Lowry;
tina rogers; Sam Belcher; ron lucas; eric trimble; donna mason; Jim demmon; mehrabian Sam; randy beehler;
Shannon murphy; Brian Pearson; iwen Wang; mehdi sadri; Pam kolacy; carol mathewson; Cheryl Carlson; Chas
hilton; john miller; randall lewis; linda seesz; sandy Barrett; mitch Wasserman; george Beyer; bill oltman; mark
pease; dal Weitzel; many mulholland; ann Suter; corbitt loch; daniel dootson; susan kruller; Chris bacha; david
jones; chuck tare; Bruce crest; fred Christ; Craig fischer; Chris jaramillo; frank abe; james burns; marcine
anderson; Walt yeager; Judy devall; Calvin schimpf; dave spencer; keri stokstad; kim van ektrom; Patrick hirsch;
Bonn hedden; elise child; john marshal) parker; Brenda Tate; Janet Jensen; Jill Novik; Tony Perez; marlene feist;
robert beaumier; Chris latham
Subject: July (yes) WATOA newsletter
Late breaking news:
FCC Order
Please note that the FCC Order was published yesterday in the Federal Register, so we can consider it in effect.
See attached newsletter for more information.
Effective Competition
We understand that Comcast is filing in man places for effective competition. The main impact -- and it is a big
one -- is that you could lose your ability to regulate rates. Please see the article below for more information.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-275763A1.doc
from: ~lultiChannel ~e~~s
Comcast Seeks Rate Relief in 1S0 Communities
Cable Operator Says It Faces Effective Competition
By "1'ed I learn -- Multichannel News, 8/6/2007 7:39:00 PM
Comcast, in a large request, asked the Federal Communications Commission to remove the last
vestiges of rate regulation in nearly 1 SO communities across the country, the agency said Monday in a
public notice that lacked key details.
Comcast sought deregulation in nearly ~0 petitions for effective competition, including such places as
Salt Lake City, the Chicago suburb oi' Uu Page County and "huscaloosa, Ala. "Che request appeared to
be one of the largest the FCC has received from a single cable company since the onset of rate
regulation under the 1992 Cable Act.
In March 1999, the FCC lost authority to regulate the price of expanded basic. Basic cable rates were
still subject to price controls, however, until the cable operator could demonstrate that pay TV
competitors ~~ ere ser~~ing 1 ~% of the households in the relevant franchise area. When the pay TV
competitor is landline service al~tiliatcd with a phone company, no penetration test applies.
In the puhlic notice, the FCC didn't indicate the legal basis for Comcast's request for deregulation
8/1 U/2007
Page 4 of 4
The vast majority of petitions granted by the FCC over the years were based on the joint subscriber
penetration of DirecTV and EchoStar Communications. Increasing, the so-called phone-company test,
created by the '1'elc:communications Act of l 996, has come into use with the pay TV entry of AT&"I'
and Verizon Communications.
When the FCC grants a petition for effective competition, the local government loses authority to cap
the price of the basic tier, ~~~hich all cable subscribers must buy. According to the 1~CC's most recent
cable price survey, the national average price for basic cable is about $14 per month.
In addition, the cable operator is not required to offer a uniform rate structure, and it may require
subscribers to purchase any number of programming tiers before they may access premium and pay-
per-view offerings.
The FCC doesn't face a formal statutor` deadline to act on Comcast's filings.
Jill Novik
2007 WATOA President
8/10/?007