Title
Approval of a Resolution Authorizing an Interlocal Agreement for Consulting Services for a Cable Franchise Renewal
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the resolution authorizing the City Manager to sign an interlocal agreement between the cities of Olympia, Lacey and Tumwater and Thurston County for consulting services for the renewal of the Comcast Cable Franchise.
Report
Issue:
Whether to enter into an agreement to jointly negotiate with Comcast Cable Communications Management for the renewal of each jurisdiction’s cable franchise and to share collective costs.
Staff Contact:
Kellie Purce Braseth, Strategic Communications Director, 360.753.8361
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
The City of Olympia’s franchise agreement with Comcast Cable was signed March 24, 2009 and is set to expire in March 2019. Lacey, Tumwater and Thurston County’s cable franchises all expire around the same period. Staff and attorneys from the four jurisdictions have reviewed and approved the recommended Interlocal agreement and associated exhibits to begin the process of negotiating the renewal of the franchise.
The Tumwater City Council approved the agreement at their March 20 meeting. The Thurston County Commissioners will consider it at their April 3 meeting and the Lacey City Council at their April 12 meeting.
Thurston County will act as the lead agency for the renewal process, and Kissinger and Fellman, P.C., would be contracted to provide cable franchising consulting services.
The recommended approach has two phases:
• Phase One is an analysis of the existing local regulatory framework and a compliance evaluation. This will include a financial and franchise fee review, as well as an evaluation of technical aspects of the current cable system. This will also include ascertaining community and jurisdictional interests and the future cable-related needs of the community.
• Phase Two includes the creation of a draft franchise agreement, the negotiation of the franchise renewal agreement and following through the final adoption of the agreement by the jurisdictions.
The cost breakout of the contract components are as follows:
Legal Services $36,370
Technical Services $36,000
Financial Services $35,000
Estimate Total $107,370
Expenses will be shared by the jurisdiction on a pro-rata basis determined by the number of subscribers, as provided by Comcast on Jan. 23, 2018:
Jurisdiction Subscribers Percentage Share
Thurston County 28,300 46.17%
Lacey, City of 11,700 19.09%
Olympia, City of 14,800 24.14%
Tumwater, City of 6,500 10.60%
Totals 62,800 100.00%
Olympia’s portion of the estimated cost would be approximately $26,000, to be paid from cable franchise revenue (PEG fund).
Neighborhood/Community Interests (if known):
The community has a high interest in high-quality, accessible and affordable cable services.
Options;
1. Approve resolution authorizing the interlocal agreement for cable franchise consulting services: The joint approach provides negotiating strength in numbers and cost sharing, and the joint franchise provides local consistency in cable franchise customer service and right-of-way activities
2. Do not approve the resolution authorizing the interlocal agreement: Olympia would negotiate a franchise directly with Comcast and would bear all renewal cost on its own. The City would negotiate on behalf of a lesser number of subscribers and a smaller cable revenue base than if part of a multi-jurisdiction effort.
Financial Impact:
The estimated $26,000 cost would be paid from Olympia cable franchise fees (PEG Fund).
Attachments:
Resolution
Interlocal Agreement