Title
Resolution to Deny Application of Comcast of the South, Inc., for a Uniform Video Services Local Franchise and to Establish Video Service or Cable Franchise Fees and PEG Fees
Memorandum
The City Clerk’s Office received an application with a July 17 cover letter from Comcast of the South, Inc. (“Comcast”), for a franchise to allow it to provide cable service within the city of Ann Arbor, which Comcast and the City agreed should be deemed submitted on July 23, 2012 notwithstanding other dates appearing on the document and associated cover letter. Comcast purported to submit that application pursuant to the Michigan Uniform Video Services Local Franchise Act, MCL 484.3301 et seq (the “UVSLFA” or the “Act”). Copies of the Application and cover letter are attached.
On July 10, 2012, the United States District Court for the Eastern District of Michigan issued a decision in a lawsuit between the City of Detroit and Comcast, and ruled that the UVSLVA permits a locality to either grant or deny an application for renewal, provided that it does so within 30 days of the date a complete application is submitted. The City Council therefore should act at its August 20, 2012, meeting.
It is recommended that the City deny the application:
First, the application is premature. Under the UVSLFA, unless a local franchise is terminated in accordance with the Act, it continues for its full term. Neither Comcast nor the City ever terminated the existing franchise agreement between Comcast and the City, which was approved in August of 2002. The franchise was for fifteen years, although the franchise also provided that it would terminate sooner under certain conditions, for example, if (a) the City conducted a mid-term technical review, the City required Comcast to undertake an upgrade as a result of that review, and Comcast refused to upgrade. The City did not conduct the mid-term technical review, require the upgrade, or otherwise take any step that would shorten the term. ...
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