City Council approves 15-year cable franchise for WinFirst after heated debate over finances and transfers

The Los Angeles City Council on July 24 approved a 15-year franchise ordinance awarding a second citywide cable franchise to WinFirst, a move supporters said would introduce competition while opponents warned the company is not yet financially established. The measure passed on second reading with a recorded vote of 12 ayes and 2 noes.

Councilmember Alex Padilla urged approval as a step toward bringing competition to cable service in Los Angeles, saying the council must take some risk to create choice for constituents. “It is a risk. It is a bold step that we're taking. But the question to ask yourself today is, do we or do we not want to begin the process of bringing competition of cable service to every community in the city of Los Angeles? I believe we should,” Padilla said.

The ordinance drew sustained questioning and opposition from Councilmember Jack Holden, who said he felt unable to vote in favor because he believed WinFirst was not yet operational in the United States and had unclear financing. “I have no choice, but to vote no,” Holden said on the council floor, repeating concerns that the company’s finances and the prospect of a quick sale of the franchise would risk long-term competition for ratepayers.

Why it matters: The council’s vote authorizes a new franchise that, if built out, could provide an alternative to incumbent cable operators and potentially affect pricing and service options for Los Angeles subscribers. Opponents focused on the long build-out period and whether WinFirst has the capital and operational track record to finish construction without transferring the franchise to another operator.

Key details and safeguards discussed: City staff and the City Administrative Officer (CAO) told council members the CAO issued “no recommendation” on whether to approve the franchise, framing the decision as a policy matter for the council rather than a clear staff endorsement. Council members pressed staff on transfer provisions: staff confirmed the franchise agreement requires that any subsequent sale or transfer of the franchise would be subject to City Council approval. Councilmember Cindy Misakowski (speaker identified in the record as Miss Misakowski) described that provision as a safeguard: if WinFirst sought to sell the franchise the buyer would have to return to the council for approval.

Council debate included concerns about the 15-year construction schedule; Councilmember Jackie Hunt (identified in the record as Miss Hunt) asked whether the $29,000,000 performance bond would be posted incrementally and how much would be available if the city needed to call the bond after partial build-out. Staff explained the bond is a performance bond posted incrementally and that at mid-build (for example at five years) approximately half of the total would be available based on the contract schedule.

Vote and procedural notes: The measure was considered on second reading; the clerk recorded 12 ayes and 2 noes on the final tabulation. The council briefly held other ordinances for later votes when a full council was present but returned to this item and proceeded to a recorded vote after discussion and staff answers.

What the ordinance does and next steps: The council approved the ordinance to grant the franchise to WinFirst under terms discussed in the hearing. Staff said routine implementation steps remain, and any sale or transfer of the franchise would require subsequent council approval. No specific mover or seconder for the final adopting motion is recorded in the meeting excerpt available to this report.

Speakers quoted in this article spoke during the Council’s second-reading debate on July 24; attributions follow the council transcript.