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Budget and Finance Committee, Bellingham City Council

BEL-CON-BFC-2026-10-05 October 05, 2026 Budget & Finance Committee City of Bellingham 20 min
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The Bellingham City Council Budget and Finance Committee met on October 5, 2026, for a focused single-item session chaired by Council Member Lisa Anderson. The committee considered and recommended approval of an ordinance extending the City of Bellingham's cable television franchise agreement with Comcast Cable Communications Management, LLC for an additional five years, maintaining the same terms and conditions established in the original 2011 franchise agreement. The extension is the second since the original 10-year franchise was signed in 2011. That agreement expired in 2021 and was extended for five years to 2026; the new extension, if approved by the full City Council, would carry the franchise through 2031. The item was presented by Technology Services Director Don Burdick and Matthew Stamps of the City Attorney's Office. The discussion surfaced a recurring tension in cable franchise negotiations: the scope of what cities can actually negotiate is significantly constrained by state and federal law. Council Member Michael Lilliquist, who participated in the 2011 negotiations, noted that community priorities such as improved customer service or a local service presence were off the table at that time. Stamps confirmed that while cable franchises allow somewhat more municipal leeway than other utility franchises, he could not speak to the precise current parameters without additional research. A secondary but forward-looking topic emerged during discussion: the erosion of franchise-related tax revenue as consumers shift from traditional cable to streaming services. Technology Services Director Burdick explained that federal law currently permits franchise fees only on cable subscription services — not on streaming or internet services. He noted that Vermont, Massachusetts, New Hampshire, and Minnesota have pursued or are pursuing state-level solutions, and that Washington State legislation on the topic has reached committee but has not advanced. The committee

**Item 1: AB 25077 — Ordinance Extending Comcast Cable Television Franchise** - **Action:** Committee voted to recommend approval to full City Council - **Vote:** Unanimous (voices recorded — "I" from at least two members; exact count not verifiable without minutes) - **Staff Recommendation:** Extend the franchise on existing 2011 terms for an additional five years - **Council Action:** Matched staff recommendation; no amendments or conditions added - **Motion:** Council Member Lilliquist moved to approve the ordinance extending the Comcast cable franchise for an a…

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**The Franchise Agreement and Scope of Negotiation** The core policy question before the committee was not whether to renew the franchise — there was no apparent opposition — but whether a full renegotiation might yield better terms than a straightforward extension. Council Member Lilliquist, drawing on his direct experience from the 2011 negotiation, provided important historical context: the range of issues cities may address in cable franchise negotiations is substantially limited by federal and state law. Community-desired outcomes such as improved customer service responsiveness and a local service presence were not available for negotiation in 2011. The agreement's provisions ended up focused primarily on the physical infrastructure that Comcast operates within city limits. Lilliquist asked Stamps whether the legal landscape had shifted — whether additional issues might now be negotiable. Stamps acknowledged he had not researched that specific question in the context of this extension, which was structured as a straightforward rollover on existing terms. He confirmed that cable franchises do allow cities somewhat more latitude than franchises for other utility providers (natural gas, electric power), but could not identify whether new issues had become available for negotiation. This left a modest unresolved question: whether conditions have changed legally since 2011 in ways that might benefit Bellingham in a full renegotiation. The committee did not press this point further and Lilliquist concluded that extending the existing terms was likely as good an outcome as a new negotiation would produce. **Franchise Revenue and the Streaming Transition** Anderson raised a policy concern with direct fiscal implications: as consumers migrate from cable television to stream…
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**Council Member Lisa Anderson (Chair, Budget and Finance Committee)** Supportive of the extension. Focused particularly on the fiscal sustainability dimension — the loss of franchise-related tax revenue as streaming displaces cable — and urged committee members tracking state legislation to monitor whether Washington moves toward a streaming service tax. Brought the motion to a vote and announced it would go to full Council the same evening. **Council Member Michael Lilliquist** Supportive of the extension, with transparent caveats. Drew on firsthand experience from the 2011 negotiation to explain why most community-desired improvements to Comcast service could not be included in the franchise agreement. Moved the committee to approve. Did not push hard on the question of whether new issues might be negotiable, ultimately concluding the existing terms were …
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**Council Member Michael Lilliquist, on the limits of franchise negotiation:** "Most of the things that the community and the city cared about were off the table for negotiations because this is governed by state and federal laws. It meant we couldn't intervene or not intervene. We couldn't ask them to change their operational aspects. For example, the community wanted better customer service or local customer service presence." **Council Member Michael Lilliquist, on the decision to extend r…
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- **Full Council Vote:** The committee recommended the ordinance for full City Council consideration at the regular Council meeting on the evening of October 5, 2026 (same day as the committee meeting) - **Five-Year Extension Period:** If approved by full Council, the franchise runs through approximately 2031 - **State Legislation to Monitor:** Was…

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**Before this meeting:** - The 2011 Comcast cable franchise agreement (extended once to 2026) was expiring - No formal action had been taken to extend it beyond 2026 **After this meeting:** - The Budget and Finance Committee has voted to recommend an ordinance extending the franchise for an additional five years on identical 2011 terms - The ordinance is queued for full City Council v…
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