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way, including the ability to transmit public, educational, and governmental (PEG) <br />., programming. The agreement also allows residents and businesses to receive cable tv and other <br />, technologies from Comcast. <br />. BUDGET IMPLICATIONS <br />., The City receives a franchise fee annually from Comcast for the use of City right-of-way. The <br />.. current expiring annual franchise fee payment to the City under the existing franchise agreement <br />is approximately $425,000 annually, which is based on 5% of the revenue generated from the <br />��� customers within Roseville. Approximately $98,000 (or about 23%) of that amount is paid by <br />L the City to the NSCC each year as a fee for providing the franchise administration services for <br />� the City. The formal proposal from Comcast maintains the 5% franchise fee (the maximum <br />� allowed under federal law). <br />�� In addition to the franchise fee paid to the City, the current expiring cable franchise agreement <br />��� includes a PEG fee of $4.15/month/cable subscriber, which is paid by Comcast directly to <br />� NSAC, and supports both the operational and capital costs of the NSAC. The formal proposal <br />. from Comcast does propose a smaller PEG fee ($0.44/month/cable subscriber) to be collected <br />��� from the customers, which would only be able to be used for capital costs. <br />. Both the franchise fee and the PEG fee are passed through by Comcast to cable subscribers. <br />. Based on Comcast's proposal, the amount of the franchise fee retained by the City for its use to <br />�_ � fund the Communications budget may be less if the City is interested in maintaining current <br />� service levels provided by NSCC. <br />STAFF RECOMMENDATION <br />� Based on the current Comcast proposal, staff recommends adoption of a resolution to <br />t: preliminarily reject the renewal of the Comcast franchise. <br />�. REQUESTED COUNCIL ACTION <br />�- Motion to adopt a resolution preliminarily rejecting the renewal of the Comcast franchise. <br />t: � -or- <br />Motion to adopt a resolution to renew the Comcast franchise pursuant to the terms of the <br />Comcast proposal. <br />Prepared by: Patrick Trudgeon, City Manager (651) 792-7021 <br />Attachments: A: Executive Summary of Comcast Proposal <br />B: Resolution to preliminarily reject the renewal of the Comcast franchise <br />C: Resolution to renew the Comcast franchise pursuant to the terms of the Comcast proposal <br />D: Minutes from May 15, NSCC Special Meeting <br />Page 2 of 2 <br />