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San Bruno council approves resolution to sell City Net Services to Comcast for up to $8 million
Summary
The City Council voted to adopt a resolution approving an asset purchase agreement to sell San Bruno City Net Services to Comcast, with a maximum purchase price of $8 million, conditions including customer‑count thresholds (5,000 internet customers; 5,400 customer relationships), a 180‑day closing target, a six‑month transition and a 10% one‑year holdback for indemnity.
The San Bruno City Council on Jan. 28 voted to approve a resolution authorizing the city manager to move forward with an asset purchase agreement to sell City Net Services to Comcast of California, Inc., under terms presented by the city’s director of City Net Services and Comcast representatives.
City staff said the maximum purchase price at closing is $8 million, subject to reductions if customers fall below contract thresholds; the agreement requires Comcast to establish a physical interconnection and for the City Net system to have at least 5,000 internet customers and 5,400 customer relationships at closing. The contract calls for closing within 180 days of execution, a six‑month transition period during which the city continues to operate the system while Comcast performs upgrades, and a 10% holdback of the purchase price for one year to secure indemnity obligations.
City Net Director S. Krishn Morti summarized financial modeling for the city that showed projected net losses from various disposition scenarios but said the sale preserves continuity of service and provides transition planning. Council members asked about content contracts, customer retention strategies and what happens to customer email addresses and equipment. Comcast representatives said they plan a largely seamless, street‑by‑street transition that minimizes downtime, will run pop‑up customer support centers, offer comparable or better service tiers at similar prices for at least a year and aim to retain the customer base needed to close the deal.
Council action: Council Member Hamilton moved to adopt the resolution; Council Member Alvarez seconded. The transcript records the council vote as 5‑0 in favor and the resolution passed. The council also introduced an ordinance to repeal Municipal Code chapter 10.24 and amend chapter 10.28 to reflect the sale and allow the city to collect franchise fees from private video franchise holders under state law.
What happens next: Staff will continue transition planning, and Comcast said it will coordinate customer communications and technical interconnection work. South San Bruno regulatory steps are not required for this item; the sale and code changes will proceed through closing, transition and the city’s ordinance process.
