The following is background on the renewal of Cablevision

The following is background on the renewal of Cablevision's franchise with the Town, the agreement of which expires in August 2005. The Town would like your comments as to ways the franchise agreement should be improved as well as your observations about its performance under the current agreement. Please mail them to Penelle M. Paderewsky, Deputy Town Administrator, New Castle Town Hall, 200 South Greeley Avenue, Chappaqua, NY 10514. or email them to ppaderew@town.new-castle.ny.us ****

CABLE FRANCHISE RENEWAL SUMMARY

Title 47, Section 546 of the United States Code requires the Town to commence a franchise renewal process within 6 months of receiving notice from the Franchise holder. Cablevision sent its renewal notice on September 26^th of last year, so we must commence the process.

The purpose of the proceeding is to:

a) Identify the future cable-related community needs and interests, and

b) Review the performance of the cable operator under the franchise during the current franchise term

Federal law does not place any restrictions on the duration of the proceeding. The Town Board will continue the proceeding for several meetings.

There are limitations as to what the Town can do as part of the process, however, if the Town develops a RECORD OF NEED during the Renewal Process, the Town may require the following items in the renewal proposal:

Upgrade the cable system, if the system requires it
Require the Cable Operator to meet certain Customer Service standards
Establish procedures for reviewing the Cable Operator’s performance to ensure that it meets community needs throughout the renewal period
Provide sufficient public educational and government use (PEG channels and facilities)
Develop institutional networks-services to government, schools and libraries
Provide for a reasonable term for the Franchise Renewal

These are the things that are the focus of the public hearing process.

For example, if Cablevision’s customer Service has been a problem for you, we need to hear about it.
If you live in a neighborhood that is not getting consistently good cable quality, we need to know.
If you want improvements to the current PEG system and facilities, this is your opportunity to voice your concerns.

After we commence this process, Cablevision will submit a formal renewal proposal.

When it is received, federal law gives the Town 4 months to either decide to renew the franchise or to make an initial determination to deny the renewal. Since the public has a right to comment on the formal renewal proposal, tonight’s public proceeding is only the start of the public input process.

Federal law gives the incumbent Franchise holder many rights and the Franchise renewal can only be denied if:

c) The Cable Operator has NOT substantially complied with the material terms of the Franchise Agreement and applicable law.

d) The Cable Operator’s service has NOT been reasonable in light of community needs.

e) The Cable Operator does not have sufficient financial, legal and technical abilities to provide the services, facilities and equipment described in its proposal.

f) The renewal proposal is not reasonable to meet future cable-related needs and interests of the community.

Federal law limits what the Town can insist on in the renewal proposal. For example:

g) The Town MAY NOT regulate what channels the Cable Operator must carry.

h) The Town MAY NOT regulate rates, except for the most basic "must carry" service, which federal law limits to broadcast channels in a certain geographic radius around the Franchise.

i) The Town MAY NOT regulate channel line-ups, which are the location of channels on the system.

Finally, federal law also allows an informal negotiation process with the cable company that the Town will conduct with a Consortium of other communities who have similar renewal deadlines. The negotiations are SEPARATE from the Federal renewal process, but can provide the basis for a settlement that results in a new Franchise agreement.

Public comment in the Federal renewal process will also provide critical input for our negotiations.