Compromise near in franchise dispute between Fort Smith, Cox cable
by February 24, 2009 1:40 pm 85 views
Cox Communications and the city of Fort Smith may have reached a compromise on a new franchise agreement.
Len Pitcock, Arkansas director of government affairs for Cox Communications, told the board at its Tuesday (Feb. 24) study session that the company would be willing to abide by the terms of the existing franchise agreement through Dec. 31, 2011 — which is also the expiration of the video service franchise agreement between the city and AT&T.
City staff and Cox have negotiated to reach a new agreement for more than a year. Two temporary contract extensions were sought and approved.
The hitch in the negotiations is perception between the city and Cox over an “Equal Protection” clause. Cox believes it should get essentially the same franchise provisions allowed AT&T Arkansas, which is now providing television service through its U-verse system. The equal protection clause in the previous agreement between Cox and the city said an agreement with any other video provider must be “no less burdensome nor more favorable” than the agreement with Cox.
However, Fort Smith Mayor Ray Baker recently vetoed the board’s approval of a third contract extension. (Link here to the story about the Mayor’s veto, and link here to the response by Cox Communications.)
In offering the compromise on Tuesday, Pitcock stressed that it is important for the city to recognize “parity” when formulating franchise agreements with Cox and AT&T. Pitcock said the compromise would give the city the opportunity to negotiate simultaneously with Cox and AT&T on new franchise agreements.
Jerry Canfield, who serves as the city attorney in the matter, told board members the Cox compromise is “a legitimate approach” to resolving the matter. He said having the agreements with Cox and AT&T expire at the end of 2011 will allow all parties to negotiate on relatively equal grounds.
City Director Cole Goodman called it a “reasonable compromise,” and the board approved placing the issue on its March 3 voting agenda.