HomeMy WebLinkAboutMemo - Mail Packet - 5/26/2020 - Memorandum From Amanda King And Carson Hamlin Re: Quarterly Cable Franchise And Peg Funding Update - Q4 2019MEMORANDUM
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Communications & Public Involvement
215 N. Mason St.
PO Box 580
Fort Collins, CO 80522
970.416.2209
fcgov.com
DATE: May 21, 2020
TO: Mayor and City Councilmembers
THROUGH: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
FROM: Amanda King, Communications Director
Carson Hamlin, Video Production Manager
RE: Quarterly Cable Franchise and PEG Funding Update – Q4 2019
Background: The City has a non-exclusive franchise agreement with the local subsidiary of Comcast
Corporation. During the franchise renewal process, Council made a request for increased tracking and reporting
on compliance. Based on this request, quarterly reports will be shared and posted on the City’s franchise
webpage: http://www.fcgov.com/fctv/franchise.php.
Below is a summary of quarterly franchise and PEG fees, reported customer complaints and current service
pricing:
Revenue received –
• Franchise fees came in under budget each quarter in 2019
• PEG fees were slightly over budget each quarter in 2019
o Franchise fees are based off 5% of gross revenue.
o PEG fees are $0.75/cable subscriber.
o A financial audit is underway (see details below).
Complaints-
• Comcast reported zero complaints in Q4 2019.
• The City received no complaints in Q4 2019.
Comcast website check-
• Limited Basic pricing could not be found on the Xfinity website.
DocuSign Envelope ID: 93035788-83AC-46B4-A0CE-154D69FF3874
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Comcast Customer Service Center check -
• Limited basic package signage was not posted during the time of visit, but was put back up upon
request.
Other Franchise Updates –
• Financial audit of Comcast:
o Per the current cable franchise, the City is authorized to conduct a mid-franchise financial audit
of Comcast which is in progress.
o The auditor had a conference call with Comcast to cover the open issues/delays in February.
o Comcast agreed to provide more documentation regarding the auditor’s questions and has
already sent some of it. After initial review some further issues surfaced.
o One of the open items is the test the auditor conducts to review the general ledger (on a sample
basis) to see if there are any transactions that could potentially be considered revenues. Comcast
understandably is not thrilled to provide access to the general ledger but, albeit reluctantly, has
agreed to it (as it is believed they are obligated to do so). The auditor has asked them to have it
ready by mid-March.
DocuSign Envelope ID: 93035788-83AC-46B4-A0CE-154D69FF3874