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KISSINGER & FELLMAN, P.C. <br />ATTORNEYS AT LAW <br />PTARMIGAN PLACE, SUITE 900 <br />3773 CHERRY CREEK NORTH DRIVE <br />RICHARD P. KISSINGER DENVER, COLORADO 80209 PAUL D. GODEC <br />KENNETH S. FELLMAN TELEPHONE: (303) 320-6100 SPECIAL COUNSEL <br />JONATHAN M. ABRAMSON TOLL FREE : 1-877-342-3677 <br />BOBBY G. RILEY FAX: (303) 327-8601 ROBERT E. JAROS <br />NANCY CORNISH RODGERS www.kandf.com 1941 - 2002 <br /> <br />M E M O R A N D U M <br /> <br />TO: Hon. Mayor Muckle and Members of City Council <br /> City of Louisvile, Colorado <br /> <br />FROM: Ken Fellman, Esq. <br /> <br />CC: Meredyth Muth, Public Relations Manager <br /> Heather Balser, Deputy City Manager <br /> <br />DATE: June 4, 2013 <br /> <br />RE: The Cable Franchise Renewal Process and Upcoming Negotiations with Comcast <br /> <br /> <br />Federal law dictates the process, and scope of the City’s authority to address issues in a cable <br />franchise. In general, City staff, elected officials, and consultants should examine the past <br />performance of the cable operator, identify the community’s future cable needs and interests, and then <br />determine what franchise terms are suitable for the citizens and City government. This memo is <br />intended to describe the overall franchise renewal process, some particular issues that may be of <br />interest, and will briefly describe recent negotiations between Comcast, Aurora and Denver that will <br />result in a franchise document with many provisions that will be available and beneficial to Louisville. <br /> <br />I. FRANCHISE RENEWAL PROCESS <br /> <br />A. A Brief Description of Cable Franchising. <br /> <br />A cable franchise is a contract between the cable operator and the local government that the <br />cable operator serves. To provide cable services to subscribers, cable companies must locate facilities <br />within public rights of way, either on utility poles or underground. In consideration for a cable <br />operator’s right to utilize the City’s rights of way the City requires the cable operator to enter into a <br />franchise agreement. Federal law governs what issues can be addressed in that contract. <br /> <br /> Franchise agreements cover a wide range of topics including: compensation paid to the City by <br />the cable company (the franchise fee); requirements for provision of public, educational and <br />government access channels (commonly referred to as PEG channels) and financial support for capital <br />expenditures related to PEG channels; requirements of compliance with conditions under which work <br />in the rights of way can be conducted; customer service standards; the variety of cable services <br />provided; compliance with federal technical standards; procedures for addressing franchise transfers; <br />procedures for remedying franchise violations; and franchise termination. By law, franchise <br />agreements are non-exclusive, but to date, there has been little competition. <br /> <br /> <br />5