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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Comcast Cable Franchise Fee Review Meeting Date: April 21, 2004 Agenda Item Number: A Department: Central Services Staff Contact: Pam Berrian www. cl. eugene, or. us Contact Telephone Number: 682-5590 AGENDA ITEM SUMMARY This is a work session to discuss the findings of an independent franchise fee review of Comcast Cable Company, the City's position in support of the findings, and review options for the collection of franchise fees owed the City. The council is asked to approve a motion to initiate franchise-specified binding arbitration proceedings as the next step in the debt collection process. BACKGROUND Council Action History In February 2004, staff provided a memorandum to the City Council on the subject of the Eugene, Springfield, and Lane County Comcast Cable franchise fee examination, collection activities, and recommendations. Staff placed fee review findings and related correspondence in the Council Office for review. The Lane County Board of Commissioners discussed the subject on March 10 and approved a motion to initiate binding arbitration as provided in the franchise. The City of Springfield discussed the subject in an April 12 work session, with no action. Springfield's Metropolitan Policy Committee (MPC) representatives will have the opportunity to take action at the May MPC meeting. Policy Issues The existing franchise agreement with Comcast appears to require that binding arbitration be initiated when a dispute seems irresolvable after good faith efforts have been expended. The City and Comcast appear to be at that juncture. City Code specifies conditions under which the City Manager may 'modify, compromise, or cancel" a claim; this dispute does not appear to warrant modification, com- promise, or cancellation at this time. Staff endorses the findings of the franchise examination and acknowledges that dispute resolution efforts to date have not been fruitful. Staff believes that waiting until Comcast's other-city fee disputes are resolved will not necessarily promote resolution in Eugene's dispute. Comcast neither agrees to be bound by the decisions of the other-city arbitration nor does it consider itself bound by its own current practice of paying franchise fees on the very same revenue under an almost identical franchise in Oregon under its franchise with the Metropolitan Area Cable Commission (MACC) serving several cities and counties around Portland. L:\CMO\2004 Council Agendas\M040421\S040421A. doc