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2017 STAFF MEMO BACKGROUND <br />Comcast Cable Franchise <br />INTRODUCTION <br />The City of Arden Hills is a member of North Suburban Communications Commission (the <br />“NSCC”), a municipal joint powers entity formed by nine member cities. The NSCC administers <br />the cable franchises that each member city has with Comcast and CenturyLink. <br />The current Comcast cable franchise was granted in 1998 for a fifteen year term. Comcast and <br />the NSCC commenced initial informal negotiations in 2011. Informal negotiations did not result <br />in an agreement and led to the parties following the formal cable franchise renewal process set <br />forth in federal law. That process included the NSCC conducting a formal needs ascertainment <br />and issuing a reques t for renewal proposal to Comcast. Comcast submitted a formal renewal <br />proposal. After holding a public hearing on the renewal proposal, the member cities, upon the <br />recommendation of the NSCC, made a preliminary decision not to renew the Comcast <br />franchise. Comcast and NSCC sent the matter on to the Minnesota Office of Administrative <br />Hearings (“OAH”) to have an Administrative Law Judge (“ALJ”) hear the matter and prepare a <br />recommendation to the NSCC on whether to renew the Comcast franchise. While the matter <br />was pending before OAH, Comcas t and the NSCC agreed to recommence informal cable <br />franchise negotiations. These negotiations resulted in the attached Comcast cable franchise <br />agreement, which the NSCC has recommended for adoption by the City. The NSCC also held a <br />public hearing on behalf of its member cities on August 3, 2017. <br />DISCUSSION <br />Deal Point Summary <br />The following is a high level deal point summary of the Comcast Cable Franchise under <br />consideration. <br />1.Mutually agreeable Franchise. The current cable franchise was ultimately used as a base <br />document. <br />Incorporates prior agreements on renewal terms. <br />o Gross Revenues Definition <br />o Auditing Provisions <br />o Electronic Programming Guide <br />o Channel Placement <br />2.10 year franchise term. <br />3.5% Franchise Fee paid to each Member City.