Item 9AAGENDA ITEM #9A
NOVEMBER 25, 2002
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Cable TV Franchise Renewal
SUBMITTED BY: Jim
DATE: November 18, 2002
BACKGROUND: As the Commission is aware, the City has retained the services of the same
law firm that represents the City of Jacksonville in their negotiations with
AT&T. The Commission is aware of the ongoing difficulty between the
City of Jacksonville and AT&T in reaching an acceptable compromise to
AT&T's past performance with respect to customer service.
As AT&T has submitted a letter dated October 15, 2002, which constitutes
a request for a franchise renewal pursuant to Section 626 of the
Communications Act (Formal Renewal Proceeding). The City is now
obligated to commence the first phase of the renewal process within six
(6) months of receipt of the cable operator's request by initiating a public
inquiry to ascertain (1) future cable related community needs and interest,
and (2) the performance of the cable operator under the existing franchise.
The City's independent communications counsel has recommended that
the City undertake the following, as is consistent with Phase I of the
Formal Renewal Process and the Informal Renewal Process:
A. aerator Performance and Compliance
1. Request, review and analyze all reports and records
required by the Ordinance to be submitted to the City
by the Franchisee.
2. Review any reports compiled by the City during the
term of the agreement..
3. Review any issues related to the cable system brought
before the City including, but not limited to, customer
service issues.
4. Determine the design and capacity of the existing cable
system including, but not limited to, identification of
AGENDA ITEM #9A
NOVEMBER 25, 2002
products and benefits available to subscribers in the
City compared to subscribers in other communities
served by the system. After consultation, consider
whether performing a technical audit, possibly jointly
with other cities, is warranted.
5. Review Franchisee's level of compliance with
Ordinance terms and conditions.
6. Perform an analysis of franchise fee payments to the
City and perform an audit of fee payments if one has
not been performed for each of the five (5) years ending
September 30, 2001, the date the new Florida
Communications Simplified Tax Act went into effect.
7. Review status of any and all pending notices of
violation served on Franchisee and if warranted, place
Franchisee on notice with respect to any other
violations of which the-City is aware.
8. Renewal Questionnaire. In order to assist the City in its
evaluation of the cable operator's performance and
compliance with all provisions of the Ordinance and the
Franchise, the law firm would prepare a questionnaire
to be issued by the City and completed by the cable
operator. This will provide a written record of an
element of the ascertainment process.
B. Community Cable Related Needs and Interests
1. Survey interested parties including, but not limited to,
representatives of the public, community groups and
City staff and officials to determine the level of
equipment, facilities and support currently being
provided and the adequacy of same to satisfy current
needs and to assess future needs. and interests.
2. Consider development of questionnaires to be sent to
City staff/officials and to the residents and businesses
that subscribe to the cable services of Franchisee.
3. Research the manner in which similar communities are
satisfying cable related needs and interests.
C. Public Hearin. In addition to reviewing subscriber input and
other information related to Franchisee's performance, the City
should conduct a public hearing that provides members of the
AGENDA ITEM #9A
NOVEMBER 25, 2002
community with an opportunity to be heard on cable related
issues relevant to the renewal.
D. Analysis of Existing~Ordinance and Franchise Agreement. The
Law Firm and the City should review the current documents to
ensure 1) the Ordinance is in compliance with Federal law and
is comparable to other municipal Ordinances; and 2) AT&T's
compliance with the Ordinance.
BUDGET: Franchise Agreement negotiations only involve staff time at this point.
However, settlement with AT&T over possible past franchise violations
may result in the same type of payment to Atlantic Beach from AT&T that
has recently been announced in the agreement with the City of
Jacksonville.
RECOMMENDATION: Atlantic Beach should begin the first steps of the formal renewal process
as outlined by our Attorney. For several reasons, I do not recommend that
we begin separate, informal renewal proceedings with AT&T at this time.
The City should defer until we see if the City of Jacksonville and AT&T
were able to conclude their negotiations, in which the City of Atlantic
Beach would be in more beneficial position to extract similar concessions
from AT&T. The sale of AT&T assets to COMCAST is expected to close
within the next several weeks and Jacksonville's agreement .should be
completed within 90 days.
While the City is obligated to commence Phase I of the Formal Renewal
Process within six (6) months after receipt of AT&T's request for a
Formal Renewal Process, the City's independent communications counsel
recommends that at the very minimum, the City should 1) begin its review
of AT&T's performance and compliance during the past ten (10) years; 2)
request various information from AT&T; 3) determine the design and
capacity of the current cable system; 4) review the status of all notices of
violations sent to AT&T; and 5) prepare a renewal questionnaire for
distribution to AT&T.
ATTACHMENT: October 15, 2002 Letter from AT&T Broadband
AGENDA ITEM #9A
NOVEMBER 25, 2002
,~
--~
AT~T
Southeast Divisiort
October 15, 2002
Mr. Jim Hanson
City Manager
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, FL 32233
Dear Mr. Hanson,
AT&T Broadband
5934 Richard Street
Jacksonville, Florida 32216-5951
904 680-8100
FAX 904 619-3605
Certified Mail /Return Receipt Requested
MediaOne of Greater Florida, Inc., locally known as AT&T Broadband ("AT&T")
has appreciated the opportunity to serve the City of Atlantic Beach and its
residents over the years. Our records indicate that our franchise is due to expire
on June 8, 2005. We are now looking forward to the renewal of our franchise.
As you may know, Section 626 of Title VI of the Communications Act of 1934, as
amended (the "Cable Act") contains provisions which detail a procedure for the
renewal of franchises. In order to comply with these provisions, AT&T requests
that the City of Atlantic Beach commence renewal proceedings in accordance
with the requirements of Section 626(a) through (g) of the Cable Act.
However, Section 626(h) of the Cable Act provides for renewal of franchises
without going through the extensive, formal procedure specified in Sections
626(a) through (g). We believe that this informal process may be preferable for
all concerned. We would like to meet with you at your earliest convenience to
discuss the renewal proceedings outlined in the Cable Act.
Recycled Paper
AGENDA ITEM #9A
NOVEMBER 25, 2002
Page 2
Mr. Hanson
October 15, 2002
We look forward to meeting with you in the near future and to a continuing,
mutually beneficial relationship.
Very truly yours,
Ann Carter Murphy
Director of Franchising and Local Government Affairs
MediaOne of Greater Florida, Inc.
I/k/a AT8~T Broadband