Jamie Munks
The State Journal-Register
After a lengthy discussion about its cable television franchise agreement with Comcast, the Springfield City Council on Tuesday approved extending the deal.
But aldermen also directed City Water, Light and Power staff to “pursue opportunities to increase competition in the cable television and broadband services in the Springfield area with interested third-party partners.” That amendment to the ordinance, which was unanimously approved, also directs CWLP to pursue cost-effective opportunities to directly deliver cable and broadband services where feasible, and look into the feasibility of delivering WiFi downtown.
The city-owned utility has an extensive fiber-optic network with high-speed capability to service its own needs, as well as some local schools and medical facilities.
Aldermen outlined complaints they’ve received from constituents about Comcast, among them high costs and a lack of competition. City officials emphasized that the cable franchise agreement with Comcast isn’t exclusive, and another provider could come in at any time to begin offering service. Officials haven’t been approached by other providers, likely because it’s cost-prohibitive and Comcast is already providing the service in Springfield, they said.
Ward 4 Ald. Frank Lesko said he took a number of calls about the company over the past week, and they were all negative. He asked Comcast representatives at Tuesday’s meeting if they were addressing public relations issues in Springfield, telling them they’ve “got a hill to climb.”
Other aldermen expressed frustration that the city was extending its franchise agreement with Comcast for a third time. The 10-year agreement, which took effect in 2003, expired last year. The city has since renewed it for months at a time, as an audit is underway that seeks to determine whether the city is receiving all the fees it’s entitled to from the cable provider.
Under federal law, municipalities can collect up to 5 percent of the gross receipts the provider takes in for offering that service within a designated area. The city of Springfield collects the maximum amount, and the current budget calls for the city to collect $1.6 million in annual franchise fees from Comcast.
The proposed ordinance would have extended the agreement with Comcast through the end of this year, but it’s been estimated it will take longer for the audit to be completed, so the extension was lengthened to go through June 30. That amendment to the ordinance passed in a 6-4 vote. Some aldermen voiced concern that a new 10-year contract still hasn’t been negotiated.
Mayor Mike Houston said continuing to extend the current contract until the audit is complete is more favorable for the city than a new, long-term contract would be because of changes in state law since the last agreement took effect.
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Joe McMenamin for Ward 7 