HomeMy WebLinkAboutIR 8554 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8554
".1ta Date: December 16, 2002
To the Mayor and Members of the City Council
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IS75 SUBJECT: Charter Communications Cable Franchise Renewal
The Charter Communications cable franchise expires in August 2006. By design,the limited cable franchise
of One Source expires at the same time.
Mayor Moncrief received a letter from Charter's new general manager several weeks ago that officially put
the City on notice that Charter wants to renew its franchise. Charter's letter triggers the process stipulated by
federal law for renewal of a cable franchise.
The first step is for the City is for the City Council to open a public hearing to solicit public comment as to (i)
Charter's compliance with the franchise and applicable law and (ii) the future cable-related needs of the
community.
Because process and timing is important, the City Council must begin a formal franchise renewal. Cities that
go through an informal process typically do not have serious issues that they need addressed with the cable
company. City staffs' recommendation is the formal process on a timetable as outlined below:
• The City Council opens the first required public hearing on Tuesday, February 3,2004 and
continues the hearing until the City has assessed Charter's performance under the current
franchise and the community future cable-related needs.
• In February 2004 the City Council instructs City staff to retain a team of consultants and
outside legal counsel to assess in detail Charter's performance under the current franchise and
the community's future cable-related needs. The City Council also appoints a 9-member
citizens' cable television franchise assessment advisory committee as part of the City's team.
Among other things,the team will conduct a franchise fee audit, a technical audit, a legal
review of Charter's compliance with the current franchise, the need and funding for local
programming, and will receive public input as to any other cable-related needs of the
community. It is anticipated that this process will take at least one (1) year.
• In April 2005 the City Council reviews a comprehensive report from the team of consultants,
attorneys and the citizens' committee and receives input as to the report in the continuing
public hearing.
• In April 2005 the City Council accepts the comprehensive report from the team of consultants,
attorneys and the citizens' committee and closes the public hearing.
• In April 2005 the City issues a Request for Proposal to Charter and establishes a deadline for
Charter to provide a proposed cable franchise renewal that incorporates the findings of the
comprehensive report and otherwise complies with the Request for Proposal.
• In June 2005 Charter provides a proposed cable franchise renewal in accordance with the
Request for Proposal. The City Council then requests the team of consultants, attorneys and
the citizens' committee to review the proposed cable franchise renewal and to make a
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8554
Date: December 16, 2002
To the Mayor and Members of the City Council
Page 2 of 2
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all
le?% SUBJECT: Charter Communications Cable Franchise Renewal
recommendation to the City Council. It is anticipated that this process will take approximately
six (6) months.
• In April 2006 the City Council either accepts the cable franchise renewal proposed by Charter,
including any revisions that have occurred thereto pursuant to negotiations that have occurred
after the original submittal, or preliminarily denies renewal of the franchise, and makes
findings of fact related to and in support of its decision.
• If the City Council moves preliminarily to deny renewal of the franchise, the matter then goes
to an administrative hearing before an independent hearing officer. Both the City and Charter
are allowed to present evidence and make testimony in that hearing. The hearing officer then
makes a recommendation to the City Council as to whether the City Council should make a
final decision as to whether to deny franchise renewal.
Because the cost of franchise renewal is a City expense, the City should use general funds to finance the cost.
The$1 per month per subscriber fee is limited to developing programming. Thus, it would be inappropriate to
use those funds to pay for franchise renewal. The city receives in excess of$2 million annually in cable
franchise fees that go into the General Fund and could be the funding source for the franchise renewal
process.
Cable franchise renewal will be a long and difficult process. But, it is an important process because good
cable services, including broadband service, are essential to maintain Fort Worth as a quality community in
which to live and work.
If you have any questions,please contact Assistant to the City Manager Pat Svacina at 817 871-6415 or
Assistant City Attorney Peter Vaky at 817 871-7601.
Gary Jack n
City Manager4lc
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS