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April 13, 2020, Meeting – Item 5 <br />At this stage, staff do not know the full extent or financial impact from these potential changes, as it is unclear how those services will be defined or valued. The potential adverse financial impact may have material adverse implications for the General Fund, and a renewed franchise before the FCC takes final action will not likely protect the jurisdictions from a future adverse FCC ruling. Therefore, the jurisdictions believe additional information about the impact of any potential franchise fee reimbursement or offset is critical before agreeing to a new 10-year franchise term. At the February 6, 2020, Cable Commission meeting, staff recommended a two-year extension of the current franchise, to allow for additional time to obtain that additional information. Comcast has since indicated that it would agree to an 18-month extension, which is why the proposed ordinance would extend the franchise term for 18-months until December 31, 2021. This proposed extension ordinance would only extend the term of the current franchise. All other franchise terms and conditions would remain the same, including Comcast’s obligation to pay franchise fees for use of the rights of way, which is capped under federal law at five percent of gross revenues earned from providing cable TV services within Eugene City limits. The fees collected from the cable franchise are allocated to the General Fund and are used for general purposes. There are no anticipated costs as a result of the extension. When clarity is achieved and negotiations completed, the proposed renewal franchise agreement will be brought to the City Council for action as an ordinance, with a likely term of 10 years. <br />RELATED CITY POLICIES City Telecommunication Vision and Policy: The City of Eugene's telecommunications vision is completion and operation of a coordinated regional information infrastructure that provides accessible and affordable high-speed connectivity for citizens, public institutions and businesses and is constructed in a manner that best serves the public interest. Telecommunications Ordinance, Eugene Code 3.005, 3.400 to 3.430 Ordinance No. 20397, An Ordinance Granting Comcast of Oregon II, Inc., An Additional Term and Franchise Renewal For The Operation Of A Cable Communications System; Amending Ordinance 19775; Adopting A Severability Clause; And Providing an Effective Date. <br />COUNCIL OPTIONS This item is scheduled for public hearing only. Council action on the proposed ordinance to extend the franchise term is scheduled for April 27, 2020. <br />CITY MANAGER’S RECOMMENDATION No recommendation is provided at this time. A recommendation will be provided for the scheduled action on April 27, 2020. <br />CC Agenda - Page 66