To:

OFFICE OF THE CITY MANAGER

ATTN:

Robert C. Bobb

From:

Office of City Clerk

Date:

May 23, 2000

SUMMARY

The Federal Cable Act imposes two mechanisms under which a local franchise authority such as the City of Oakland can proceed in a cable franchise renewal. Under either process, it is essential that the City assesses the community’s future cable-related needs and interests, and reviews the cable operator’s performance under the existing franchise.

Accordingly, the Cable Task force, under the direction of the Council, has conducted a series of reviews, which include:

1. Identification of the community’s future cable related needs;
2. A review of operator’s compliance with the general terms and conditions of the franchise;
3. A technical evaluation of the existing cable system; and
4. A financial audit of operator’s compliance with franchise fee provisions.

The findings of these reviews will form the basis for establishing the City’s negotiating position during the franchise renewal negotiations with AT&T, scheduled to commence this summer. Summaries of the initial findings are attached to this report.

In December of 1983, Lenfest West Inc. formally accepted the grant of a cable television franchise from the City of Oakland. The Franchise was transferred to Heritage Cablevision of Delaware, Inc., an affiliate of TeleCommunications, Inc. (TCI), on February 12, 1996.

The City's cable television franchise with AT&T (formerly TCI), Ordinance No. 10399, expired December 30, 1998. The franchise has been extended several times since by mutual agreement and currently runs through December 31, 2000. The City approved a transfer of the franchise from TCI to AT&T Broadband on February 16, 1999.

In January 1999, the management of the Cable Franchise Transfer and Renewal process was transferred from the Office of Information Technology and assigned to the Office of the City Clerk and a Cable Task Force was established to coordinate the franchise transfer and renewal activities. Task force membership includes representatives from the City Council (President Ignacio de la Fuente and Council member Larry Reid), Office of the City Clerk, City Attorney’s Office, Office of Information Technology, City Manager’s Office, and the City’s outside legal counsel. The City Economic Development Agency, Public Works Agency and City Auditor’s Office also support the task force as needed.

As required under the Federal cable law, the City of Oakland along with its industry consultants has conducted an extensive community needs assessment and a review of the cable operator’s past performance. The community assessment and review is an essential component of the cable franchise renewal process. The Cable Task Force has coordinated this effort over the past year. The findings are summarized in the attached reports prepared by the industry consultants listed below:

• Community ascertainment study conducted by Steve Jolin of MuniCom with Sherrie Harris of H&H Ecoprises International, Inc.;
• Institutional Network ascertainment study conducted by Columbia Telecommunications Corporation.
• Financial audit conducted by Mr. Roland E. Smith; City Auditor;
• Technical evaluation of cable system conducted by Columbia Telecommunications Corporation; and
• Review of compliance with general franchise obligations, conducted by William Lowery of Miller & Van Eaton, P.L.L.C.

Accept the staff report and direct the Cable Task Force to continue its final preparations for the cable renewal negotiations with AT&T.

Respectfully submitted,

Prepared by:

Karen Blades

Assistant Project Manager, Cable Franchise Renewal

Attachment A: PRELIMINARY REPORT ON COMMUNITY OUTREACH:

EXECUTIVE SUMMARY

Prepared by H&H Ecoprises

Attachment B: PRELIMINARY REPORT ON COMMUNITY ASCERTAINMENT

FORUMS WITH REFERENCE TO PUBLIC OPINION SURVEY: EXECUTIVE SUMMARY

Prepared by MuniCom.

Attachment C: INSTITUTIONAL NETWORK REPORT: EXECUTIVE SUMMARY.

Prepared by Columbia Telecommunications Corporation

Attachment D: CABLE TELEVISION SYSTEM TECHNICAL EVALUATION:

EXECUTIVE SUMMARY

Prepared by Columbia Telecommunications Corporation

Attachment E: FINANCIAL AUDIT OF AT&T BROADBAND:

EXECUTIVE SUMMARY

Prepared by City Auditor’s Office.

Attachment F: INTERIM CABLE FRANCHISE COMPLIANCE REPORT

Prepared by Miller & Van Eaton, P.L.L.C.