San Bruno sells cable service

Now, however, San Bruno has been unable to keep up with infrastructure updates required to keep the cable and internet service competitive, accruing around $21.5 million in debt. 

In 2023, the City Council declined to fully update the service — which serves approximately 5,900 San Bruno households — to fiber-optic, a financial investment that could have improved high-speed internet and bandwidth capabilities. 

City Manager Alex McIntyre began negotiating an agreement with Comcast in June 2024. Originally, the company offered $7 million for the cable service. Now, San Bruno will be receiving a full $8 million if specific conditions of agreement are met — including a physical interconnection of Comcast’s cable system with the CityNet cable system and the retention of at least 5,400 customers prior to closing. 

Comcast has a vested interest in ensuring the transition between providers goes smoothly, David Tashjian, Comcast California regional senior vice president, said to councilmembers. 

“We believe we have a very focused and clear plan,” he said. “We have no desire for everything to drop below the 5,400. We will do everything we can to keep every customer you have.” 

During a six-month transition period after the sale has closed, San Bruno will continue to operate CityNet while Comcast upgrades and physically transitions customers. McIntyre said he expects the process to be fluid for a great majority of customers, despite the complexity of the handover. 

“It’s not like selling a car where they hand over the keys. It’s a marriage of our technology into their technology. It’s more like handing off the airplane midflight,” he said. 

Nothing will happen immediately, McIntyre assured customers, and Comcast will communicate extensively with them as it transitions equipment. The full transition is expected to take no longer than the end of the calendar year. 

San Bruno is still expected to accrue from $1.7 million to $1.9 million in operating expenses as customer revenues go to Comcast during the transition period, according to the staff report. Ultimately, selling was still the best option, councilmembers decided. 

They believe they’ve secured the best deal possible for CityNet users as the service slowly becomes obsolete — for example, faster internet speeds at the same price, at least for now, Vice Mayor Marty Medina said. 

“Technology keeps on improving and the city didn't have the ability and assets and financial backing to be able to capitalize and invest into the system,” he said after the meeting. “We are a small city.” 

holly@smdailyjournal.com

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