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Meeting Date: November 26, 2002

Subject/Title: Adopting Procedures for Informal Negotiation of Cable Television Franchise Renewal

Submitted by: Dennis Beougher, City Attorney

Staff recommends: (1) adoption of the attached “Renewal Negotiation Process Terms” for undertaking informal negotiation of the renewal of the AT&T cable television franchise; and (2) establishment of the Telecommunications Committee to conduct the informal negotiations in accordance with the attached Terms.

On November 12, 2002, the City Council approved a continuance from November 27, 2002 to December 11, 2002 for AT&T to file its formal renewal process to allow time for consideration of the attached Terms for informal negotiations. As the Telecommunications Subcommittee was abolished in January 2002, the City Council would have to establish a new ad hoc subcommittee to complete the negotiation if it is the City Council’s desire is to have two City Councilmembers involved in the negotiations.

David Kinley has negotiated with AT&T the attached proposed “ground rules” for negotiating a franchise renewal through the “informal process” provided by Section 626 of the Cable Act. These ground rules include acknowledgment by AT&T of certain changes in its franchise granted October 1, 2001, which it had heretofore not acknowledged. In addition, AT&T is agreeing to a very limited time period for the informal negotiations (to end no later than March 1, 2003) and a shortened deadline for submission of its formal renewal proposal (submittal of a formal proposal no later than March 20, 2003) if the informal negotiations do not produce a satisfactory franchise agreement. Based on Mr. Kinley’s negotiations, staff recommends adoption of the attached Terms for informal negotiations and establishment of an ad hoc Telecommunications Committee to conduct the negotiations with Mr. Kinley’s advice and assistance.

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