San Bruno to explore cable upgrade

But the endeavor expected to cost roughly $10 million generates concerns for a councilmember wishing to assure there is adequate opportunity for return on the sizable investment.

Councilman Michael Salazar said while he appreciates the rarity of the city’s owned and operated cable network, he also harbors reservations about its viability.

“I’m not against doing it, I’m just really concerned that long term our ability to keep this going is there,” he said, noting the system’s struggle to generate revenue comparable to the amounts when it was launched nearly 50 years ago.

San Bruno is the only municipality remaining in California offering citywide cable, according to muninetworks.org, a website tracking the services.

Those who more passionately advocate for the upgrade exploration cite the city’s rare asset in their justification for preserving it.

“If we do nothing, the whole system will decline. We will be stuck with the debt that we already have with little chance of replacing it. And the citizens of San Bruno will be stuck without our San Bruno Cable, and that alone should make us pause and think really hard about doing this,” said Councilwoman Irene O’Connell.

Vice Mayor Laura Davis shared a similar perspective.

“We have a great thing in San Bruno, and I would hate to lose that,” he said.

The system offering internet and television service was established as a means of earning money for the city’s general fund but, as competition and costs have increased over time, San Bruno Cable’s earning power has diminished. To that extent, the system’s operating deficit has grown to nearly $10 million over the last decade.

Officials seemingly agree the only way to preserve the service is to upgrade to fiber, which would grant higher internet connectivity speeds. With television subscription revenue declining across the city, most councilmembers seemed focused on improving San Bruno Cable’s online capabilities.

According to a consultant’s report, officials should expect revenue generated by an upgraded system would cover the cost of establishing the fiber network over a period spanning between 10 and 30 years. Officials have suggested previously that a tax measure may be necessary to address the initial cost of the work.

The recoupment expectation is borne from the recent fiber upgrade offered at the Shelter Creek complex, where the improved system’s availability generated disproportionate additional revenue compared to the rest of the city, according to the report.

Salazar showed tepid enthusiasm for an attempt to extrapolate the complex’s revenue gains across the city, noting the perils of comparing a specific community to San Bruno’s general population.

“The numbers are not that compelling,” he said of the Shelter Creek projections, while also noting the presence of competitors such as AT&T, which are eyeing fiber connectivity in San Bruno.

Most councilmembers though were more enthusiastic about the opportunity, and strongly supported analyzing the financial next steps surrounding an upgrade.

“I’m in favor of moving forward and I strongly suggest we move swiftly,” said Councilman Marty Medina.

Davis too said officials should pursue additional examination, with an understanding that the existing service is inadequate and unsustainable.

“We have to do something. We can’t continue what we are doing,” she said.

Regarding next steps, Mayor Rico Medina encouraged staffers to bring back a detailed fiscal analysis of the project with hopes of making a final decision on the matter down the road. He suggested a study session is in order to grant adequate time for a deeper understanding.

For her part, Davis succinctly illustrated a majority of the City Council’s position.

“We need to get a good analysis of cable in its entirety,” she said.

austin@smdailyjournal.com

(650) 344-5200 ext. 105