Baltimore Grassroots Media

12-year deal provides some funding for public access, but has major flaws

Monday night, December 6, 2004, as expected, the Baltimore City Council voted overwhelmingly 16-1 with two abstentions to approve a new 12-year cable television contract that allows Comcast use of city rights of way to continue making huge corporate profits by providing cable television.

Councilman Kwame Abayomi called for a special "roll call" vote, where the actual votes of the council members are given one-by-one, and was applauded by the capacity crowd for his lone no vote. The final decision was met with loud hissing from the audience prompting Council President Sheila Dixon to exclaim, "Excuse me! We will not be disrespected."

With the contract the city turns over four of its available public channels, worth an estimated $77,000,000, to Comcast in exchange for a $570,000 "training grant." In a letter to Baltimore Grassroots Media, copied to council members earlier in the day, Anthony Riddle, the new executive director of the Alliance for Community Media, reveals that this is an even bigger loss in terms of bandwidth now that Comcast is digital.

The training grant is part of a side agreement with Comcast, which the language of, community television advocates warn, contrary to claims of elected officials, does not guarantee any money for public access. There is no money in the actual contract for public access operations or hiring of staff to run public access.

The contract does add a 50-cent per month "pass-through" fee to cable subscriber's monthly bills to fund equipment for public, education and government (PEG) access channels, one third going to each. However, the amendment that specifies the thirds is unclear about what will happen to the public access portion before the public access corporation is formed. The 50-cent charge is expected to total $705,000 per year with about $235,000 for public access capital expenses.

In a letter to council members, Richard Turner, executive director of Montgomery Community Television, has pointed out a false assumption made during the negotiations, that this pass-trough could only be used for capital expenses. In fact it could have been used for operational expenses as well (see chart: Public Access Funding Forecast).

And a last-second amendment added to the bill without opportunity for public scrutiny specifies that the mayor will appoint a 13-member board to form the public access corporation. This was an abrupt change from the Mayor's Office of Cable and Communications' oft-stated plan to allow citizen groups, such as Baltimore Grassroots Media, to submit proposals for running public access.

The mayor already controls the government access channel, 21, which can be used to promote his agenda, and according to Marilyn Harris Davis, executive director of the Mayor's Office of Cable and Communications, which runs channel 21, the channel has a $1,700,000 annual budget.

Council President Dixon had critical words for public access supporters who don't get cable, "The frustrating part for me in doing all the battling is that the people who came to testify don't even have cable, and so in order to increase that fifty cents beyond the seven hundred thousand you got to make a commitment to having cable in order for you to pay into it...I'm not marketing...'cause you know they're competing with - what is it? - Direct TV and a whole host of things. You know I already told my children they might not even have cable...sorry that I got so emotional on that point."

However many of the public access supporters who testified do get cable, and anyway, public access channels where people can show their own programs, is something Comcast is required to make available for all citizens, not just cable subscribers, in return for the hundreds of millions of dollars Comcast is allowed to make in the city. 

According to state board of election data, Dixon has received at least $5,350 from Comcast and its executives this election cycle.

With the council meeting still going on, smiling and laughing Comcast executives were seen exiting a room adjacent to the council chambers where they were meeting with city negotiators, presumably to formalize the agreement.

SunArticleFinalComcastVote12-7-04.doc.PDF

BGMPressRelease12-06-04.PDF

National public access experts to warn city council to delay vote

Monday, December 6, 2004, at 5 PM, the City Council is scheduled to take its final vote on the Comcast cable contract, bill 04-1504. Many insiders have said it is a done deal. Community television and free speech advocates are trying to delay the vote so critical shortcommings can be addressed.

Friday, Baltimore Grassroots Media (BGM) received, for the first time, the text of a side agreement between the city and Comcast for a $570,000 training grant, the source of promised public access operating funds. However, the agreement letter does not indicate that the $570,000 will go to public access, only that it will go to the City, where it could be used for the Mayor's Government channel 21 that already has a $1.7 million annual budget. Currently the public's channel 5 has no budget. The letter is pre-dated December 6, 2004 and is not signed.

What the letter does clearly spell out is that the $570,000 is in return for the city turning over four cable access channels to Comcast and putting strict limitations on the activation of the remaining four available channels. Why the loss of the four channels is even mentioned in the letter begs explanation, since this is already part of the proposed contract. Ken Crooks of Comcast has said his company wants to avoid setting a precedent where they are seen as giving too much to community television. But what BGM has heard from experts around the country is that Baltimore is about to set a precedent by agreeing to one of the worst deals for public access anywhere.

When the city of San Jose, California tried to get more cable access channels, Comcast refused arguing, "each channel is worth approximately $21.6 million over a ten-year franchise term." Adjusted for Baltimore City, the value of the four lost channels over the 12-year contract is $77 million, or 135 times $570,000.

Friday night, BGM held a public forum on the public access situation in Baltimore. In attendance were several experts on public access from around the country who are sending a letter to City Council President Sheila Dixon to urge her to delay the vote on Monday. They are Richard Turner, Executive Director of Montgomery Community Television, Anthony Riddle, former Executive Director of public access facilities in Atlanta, Minneapolis and New York City, and former National Chair for the Alliance for Community Media, and Steve Ranieri, Executive Director of Community Cable Channel 27 TV in Albuquerque, New Mexico.

Turner also raised the important point that the 50-cent pass-through, that the proposed contract stipulates can only be used for capital expenses, need not have been limited to capital expenses. In fact it could have been designated for operating funds. There is currently no provision for operating funds for public access in the contract. Without operating funds public access cannot hire any people to run public access.

Also in attendance was Tom Kiefaber, owner of the Senator Theatre, who offered to put a message up on the marquee of the theater and send a mass email out to 10,000 supporters. The marquee reads "STOP THE COMCAST CABLE CONTRACT! BILL 04-1504 NEEDS PUBLIC SCRUTINY CONTACT YOUR CITY COUNCIL PERSON."

The League of Women Voters has also sent a letter to Sheila Dixon and the other council members urging them to reject the contract.

The missing memorandum of understanding (MOU) Council President Dixon and Councilman Curran delayed the previous vote over has still not been issued by the Mayor's finance department. It is supposed to guarantee that $430,000 would be directed from the city to public access.



Letter of agreement between Comcast and Baltimore City:

December 6, 2004

Ms. Marilyn Harris-Davis
Mayor's Office of Cable Communications
8 Market Place, Suite 200
Baltimore, MD 21202

Dear Ms. Harris-Davis:

This letter is to confirm the agreement that has been reached between Comcast of Baltimore City, L.P. ("Comcast") and the City of Baltimore (the "City") with respect to Public, Educational and Governmental ("PEG") Access. The term of this agreement shall be twelve years, beginning on January 1, 2005 ("Effective Date").

As you know, Comcast and the City have discussed their mutual interest in improving the quality of PEG access programming available to Baltimore City cable subscribers. Currently, only four channels of the twelve that have been available to the City are used for PEG programming. We have jointly concluded that if Comcast were to provide the City with a technology training and development grant to assist it in training members of the public in using facilities and equipment for television production and for developmental purposes, the City and the Mayor's Office of Cable Communications ("MOCC") could more effectively focus on the creation and provision of robust and attractive programming on a reduced number of PEG channels, particularly with regard to enhancement of public access programming.

Accordingly, Comcast agrees to provide the City with a technology training and development grant in the amount of $570,000. In exchange, the City agrees to accept a reduction in the number of PEG channels it is entitled to program from twelve to eight and to limit the activation of additional PEG channels above the currently operating four channels to one in any twelve month period. The technology training and development grant is payable as follows: $80,000 in the first year of this agreement, $70,000 in the second year of this agreement, $60,000 in the third year of this agreement, and $40,000 each year for the following nine years of this agreement. Annual payments will be made in quarterly installments, simultaneously with Comcast's quarterly franchise fee payments to the City, beginning with the first quarterly payment due following the Effective Date. These payments made pursuant to this letter agreement are in addition to, and not in lieu of, any other commitments, fees or taxes owed by Comcast to the City, whether pursuant to the Franchise Agreement between Comcast and the City or otherwise.

If this letter correctly reflects your understanding of the agreement we have reached, please countersign the enclosed copy in the space provided.

Sincerely,

COMCAST OF BALTIMORE CITY, L.P.

By________________________________
Name:
Title:

Agreed to and accepted by:

THE CITY OF BALTIMORE

By_________________________________
Name:
Title:
Date: _________________

cc: Robert Jacobs
Michael Parker
Rosetta Kerr-Wilson
Angela Patrick
Ralph Tyler
Donald Huskey
Elizabeth Harris
Ernest Crofoot
Linda Barclay
Cedric Crump
Barbara Adams

Urges council members to consider delaying vote on Comcast contract until fixes are made.

LetterFromTurnerRiddleRanieriToCityCouncil.pdf

Highlights problems with Baltimore City's proposed contract with Comcast.

TonyRiddleLetter.pdf

BGMPressRelease12-05-04.PDF

Tom Kiefaber, owner of the Senator Theatre, graciously put a message up on the marquee of the theater before the City Council's Dec. 6th vote.

Comcast will provide a $570,000 training grant in exchange for the City giving up four cable access channels worth, by Comcast's estimates, about $77 million.


December 6, 2004


Ms. Marilyn Harris-Davis
Mayor's Office of Cable Communications
8 Market Place, Suite 200
Baltimore, MD 21202

Dear Ms. Harris-Davis:

This letter is to confirm the agreement that has been reached between
Comcast of Baltimore City, L.P. ("Comcast") and the City of Baltimore
(the "City") with respect to Public, Educational and Governmental
("PEG") Access. The term of this agreement shall be twelve years,
beginning on January 1, 2005 ("Effective Date").

As you know, Comcast and the City have discussed their mutual interest
in improving the quality of PEG access programming available to
Baltimore City cable subscribers. Currently, only four channels of the
twelve that have been available to the City are used for PEG
programming. We have jointly concluded that if Comcast were to provide
the City with a technology training and development grant to assist it
in training members of the public in using facilities and equipment for
television production and for developmental purposes, the City and the
Mayor's Office of Cable Communications ("MOCC") could more effectively
focus on the creation and provision of robust and attractive programming
on a reduced number of PEG channels, particularly with regard to
enhancement of public access programming.

Accordingly, Comcast agrees to provide the City with a technology
training and development grant in the amount of $570,000. In exchange,
the City agrees to accept a reduction in the number of PEG channels it
is entitled to program from twelve to eight and to limit the activation
of additional PEG channels above the currently operating four channels
to one in any twelve month period. The technology training and
development grant is payable as follows: $80,000 in the first year of
this agreement, $70,000 in the second year of this agreement, $60,000 in
the third year of this agreement, and $40,000 each year for the
following nine years of this agreement. Annual payments will be made in
quarterly installments, simultaneously with Comcast's quarterly
franchise fee payments to the City, beginning with the first quarterly
payment due following the Effective Date. These payments made pursuant
to this letter agreement are in addition to, and not in lieu of, any
other commitments, fees or taxes owed by Comcast to the City, whether
pursuant to the Franchise Agreement between Comcast and the City or
otherwise.

If this letter correctly reflects your understanding of the agreement we
have reached, please countersign the enclosed copy in the space
provided.

Sincerely,

COMCAST OF BALTIMORE CITY, L.P.
By________________________________
Name:
Title:

Agreed to and accepted by:
THE CITY OF BALTIMORE
By_________________________________
Name:
Title:
Date: _________________

cc: Robert Jacobs
Michael Parker
Rosetta Kerr-Wilson
Angela Patrick
Ralph Tyler
Donald Huskey
Elizabeth Harris
Ernest Crofoot
Linda Barclay
Cedric Crump
Barbara Adams