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HomeMy WebLinkAboutMemo - Mail Packet - 12/1/2020 - Memorandum From Amanda King And Carson Hamlin Re: Quarterly Cable Franchise And Peg Funding Update - Q2 & Q3 2020 MEMORANDUM 1 Communications & Public Involvement 215 N. Mason St. PO Box 580 Fort Collins, CO 80522 970.416.2209 fcgov.com DATE: November 23, 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 – Q2 & Q3 2020 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 in Q1 & Q2 2020  PEG fees are also under budget in 2020 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 Q2 & Q3 2020. DocuSign Envelope ID: 94E6827F-FE39-455F-B6BB-77F53D9A0F6E 2  The City received zero complaints in Q2 & Q3 2020: Comcast website check-  Limited Basic pricing could not be found on the Xfinity website.  The lowest price listed for TV only was $49.99 Comcast Customer Service Center check -  Limited basic signage was posted at the Customer Service center has limited/reduced hours. 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 has continued to have many challenges with delays and missing information not being provided by Comcast. o Comcast had agreed to provide more documentation regarding the auditor’s questions; however, after further review some additional issues surfaced. To date, the additional documentation has not been provided by Comcast. o The audit was further delayed as the auditor was out on medical leave for part of 2020. o City staff and the auditor met with outside counsel to discuss the impasse with Comcast. It was suggested that Comcast comply, and next steps are to schedule a call with the outside counsel and the local Comcast Government affairs rep to share the final deadline for Comcast to provide the missing information or risk a formal breach of franchise agreement. DocuSign Envelope ID: 94E6827F-FE39-455F-B6BB-77F53D9A0F6E