City of Oakland Legistar System

Subject: Comcast Cable Franchise

From: Office of the City Administrator and Office of the City Clerk

Recommendation: Adopt The Following Pieces Of Legislation:

1) An Ordinance Of The City Of Oakland Amending Chapter 5.16 Of Title 5 Of The Oakland

Municipal Code To Regulate The Occupancy And Use Of Public Rights-Of-Way By Cable

Systems And Open Video Systems, To Provide For Establishment Of Customer Service

Standards; Establishing Franchise And Licensing Requirements For Operators Of Such Systems

And To Prescribe Minimum Charges, Terms, And Conditions For And Upon The Construction,

Maintenance, And Repair Of Such Systems; And (05-0422)

2) An Ordinance Of The City Of Oakland Granting A Thirteen Year Cable Franchise To

Comcast Of California/Colorado, LLC To Construct And Operate A Cable System To Provide

Cable Service Within The City Of Oakland; Establishing The Terms And Conditions Of The

Franchise Grant; And Establishing Certain Remedies For The Violation Of The Franchise

(05-0422-1)

Continued to *Finance & Management Committee on 11/8/2005

The Committee directed staff to come back on November 8, 2005 with a follow

up report that answers the following questions:

1. How flexible is the $17.4 million and what it can be spent on and would there

be City-related costs necessary to make the I-Net operable?

2. Is the undergrounding language in the franchise compatible with other Cities

or past commitments to our undergrounding?

3. Is the 850 MHz system the appropriate bandwidth - will it soon be obsolete?

4. Currently there is a $300,000 penalty for failure to complete construction.

Should this be higher? What about the insurance levels - are they set at

appropriate limits? Please comment on the other penalty areas and whether

they are appropriate.

5. Explain the 5 analog PEG channels in more detail. Explain the partners and

whether they have been included in negotiations and whether they are pleased

with this deal. Explicitly discuss OUSD and Peralta Colleges, but also discuss

whether there is an opportunity for new partners like the Museum or Chabot

Science Center.

6. Please provide legal analysis of language presented by Councilmember

Nadel regarding the labor representation for franchise agreements.

7. Please provide legal analysis of including language in a City ordinance that

addresses the following:

a. Card Check

b. Worker's Rights - freedom of speech

c. Right to Organize

d. Creation of a Utility Commission

e. Non-discrimination in hiring

8. Analyze Comcast's current cable rates and discuss how much is a federal

regulation and how much is at Comcast's discretion. Update the regional

comparisons and explain why they are so different…Councilmember Quan

thought the new rates were closer.

9. Do we currently require Comcast to provide a discount for senior citizens or

low-income customers?

10. Does the proposed Franchise Agreement require that Comcast continue to

provide these discounts?

11. Please describe the proposed I-Net (Institutional Network) and how you

think it would benefit the people of Oakland?

12. Although this proposed I-Net technology might benefit some schools, could

we instead use the money for basic needs at schools such as books, supplies,

and emergency repairs?

13. Where is the detailed budget for the I-Net system? Will all costs (capital

and operating costs) be covered by the $17 million?

14. Please provide a detailed, line-item budget of all costs including:

a. the cost to install the I-Net “backbone” infrastructure

b. the cost to install any network equipment required to use the I-Net system

c. the cost to install any cable from the streets to the buildings, and

d. the costs to operate and maintain the system, including any costs to hire

new personnel

15. If Comcast provides the $17 million over 13 years, who pays the upfront

costs to install the I-Net system - or will it take 13 years to complete?

16. For the I-Net, who is expected to pay for all of the operation and

maintenance costs not covered by Comcast?

17. If schools have access to the I-Net, is the City expected pay for the school

district's operating/maintenance costs? If not, does the school district know

they need to pay these operating/maintenance costs?

18. If Comcast owns the I-Net, why should the City spend money for the

operating/maintenance costs?

19. Is it possible that I-Net technology will soon be obsolete because of

advances in wireless broadband technology? If so, why invest now in an I-Net?

20. What would prevent us from investing the $17 million toward other goals

such as reducing crime or re-paving streets?

21. Whether or not Comcast undergrounding is compatible with the other city

undergrounding involving SBC, etc.

22. Whether or not the schools get two channels.

23. Discuss how WiFi will make wires obsolete.

24. Discuss the intial high rate and whether or not there will be higher rates in

the future.

25. What constitutes an I-Net?

26. What are our costs to continue to make the I-Net function once we buy into

it?

27. Which cities have and haven't received pass-throughs to the consumer of

benefits to the City governments?

28. Can we have the annual report begin in the first year of the agreement?

29. If we change the labor rules for this franchise then do we have to do that for

all City franchises/Municipal Code? What does this mean for our operations?

30. How much did it cost to lay the fiber pipe?

31. In the event that we don't accept the current I-Net portion of the agreement,

will Comcast be able to pass along the cost of the work that they already did to

consumers? Have they done so already?

32. Assuming we know the cost of laying the fiber, do we know the costs of the

other steps previously mentioned? What if they exceed the $17 million? What

does the $17 million include?

The following individual(s) spoke and did not indicate a position on this item:

- Sanjiv Handa

- Frank Manibusan

- Barb Leslie

- Henry Fore

- James Wilson

- Yonah Camacho-Dramond

- Sharon Cornu

- John Giles

The committee directed staff to return on November 8, 2005 with a follow up

report that includes an analysis and agreement on the amount of what the 2 1/2

percent should be, to define what the 2 1/2 percent represents, to do an analysis

of actual unrestricted general fund revenues and budgeted unrestricted genreal

fund revenues and develop a proposal for what projects are paid for and how

they are paid for with Kids First! Funds.

The following individual(s) spoke and did not indicate a position on this item:

- Sanjiv Handa

- Marcia Henry

- William Butkus

Subject: Sale Of City Owned Surplus Properties

From: Community And Economic Development Agency

Recommendation: Adopt A Resolution Authorizing The City Administrator To Conduct A

Public Auction For The Sale Of Eight City-Owned Surplus Properties; Assessor Parcel

Numbers 005-0421-00 (20th And Mandela Parkway); 003-0071-024 (632 - 14th Street);

045-5230-001-01 And 045-5230-003-03 (Assembled - 862 - 850 98th Avenue);

048H-7602-012, 048H-7602-013, 048H-7602-014, 048H-7602-015 (4 Parcels - Between 1530

And 1580 Grand View Drive); And 033-2250-001-04 (569 High Street/Howard Street)

(05-0723)

Americans With Disabilities Act

If you need special assistance to participate in Oakland City Council and Committee meetings

please contact the Office of the City Clerk. When possible, please notify the City Clerk 48

hours prior to the meeting so we can make reasonable arrangements to ensure accessibility.

Also, in compliance with Oakland's policy for people with environmental illness or multiple

chemical sensitivities, please refrain from wearing strongly scented products to meetings.

Office of the City Clerk

Phone: (510) 238-7370

Fax: (510) 238-6699

Recorded Agenda: (510) 238-2386

Telecommunications Display Device: (510) 839-6451 (TDD)