HomeMy WebLinkAbout02/09/1998 \ � �
Telecommunications Advisory Committee
City of Apple Valley
February 9, 1998
6:30 P.M. City Hall
Muiutes
l. Ca11 to Order
The meeting was called to order at 6:30 p.m. by Chairperson Bible.
Members Present: Dale Rodell, Rollin Bible, Jerry Brown, David Westbrook, John
Magnusson
Members Absent: Scott Hugstad-Vaa.
Others Present: Tom Creightoq John Erar, Tom Burt, Charles Grawe, Karen
Sanderson, TonyTaschuer, Dennis LaComb, Bruce Sandberg (arrived at 7:30 p.m.)
2. Introductions
Those present introduced themselves.
3. Franclrise Renewal Update
Mr. Bible announced the purpose of the meeting is to discuss options for PEG
programming. He said that Marcus wants to tum public access to the cities. He said this
provides the cities with the opportunity to discuss options for providing this service. Mr.
Bible asked Ms. Sanderson if one option is for each cifiy to have its own public access
channel. She confirmed that this was one option. Mr. Creighton clarified that a second
option is for the cities to make Mazcus provide public access pro�rammin�, although
federallaw is not clear as from where funding for the operations would come.
Mr. Creighton explained that Public, Education, Governmerrt (PEG) prograir►ming is in
federal law. He explaine� that traditional public programming is produced by local
residents using cable company equipmeirt. Legally, the cable company must coutinue to
provide a channel for ttus programming. He further explained that government
programming is traditionally supported by francluse fces. In some cases, the local cable
company may provide additional equipment and other support for this government
prograrnming. He explained educational programming may be little or nothing or may be
very sophisticated. He said a major challenge is that school district boundaries do not
match municipal boundaries, often preventing the interconnection of buildings due to
differences in cable systems.
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Mr. Creighton said Lakeville has a strong interest in public access. Fannington and
Rosemount currently have no government progranuning and have a lessor franchise fee
than Apple Valley. Mr. Creighton said he believes the cable company is hoping the four
cities can take over public access, even thougln there is not an existing partnership for
programming among them. The third option is for the four cities to coopera.te and operate
a joi� facility, possibly in the existing studio.
Mr. Creighton said the cities could adopt a PEG pass through fee to support PEG
programcning. He estimated a$1 monthly fee would raise about $130,000 for Apple
Valley annually, and roughly $30,000 each for Farmington and Rosemount. He advised
that the City carefully consider the issue before turning such lazge amounts of money over
to Lakeville to provide public progranuning. He said he believes government and
educational programming to be found most popular among viewers, with public
prograinming a distant third, which he considers to be an expensive subsidy for people's
hobbies. He also added the demograplucs of the three cities aze not similar to those azeas
with high interest in public program production.
Mr. Creighton said the cities need to decide what cooperative efforts they will make, how
these efforts are to be funded, and what capital requests will be made of the company. He
said if the cities identify a need, the cost for equipment can be negotiated in the franchise.
He explained one means in federallaw to deny a franchise is to show the company failed to
meet an identified community nced. He said community prograiYUning commitments aze
much less in the Mazcus system than in other Metro systems.
Mr. Bible asked for reactions. Mr. Brown asked for a general cost parameter. Mr.
Creighton provided several examples, citing a north Metro system with $200,000
operating expenses and $25,000 annual capital grant matched by the cities. He also cited
a consortium of cities with $600,000 annual budget and $75,000 annual capital grant
wluch requires a$2.80 PEG fee. He said Burnsville/Eagan spends over $300,000
annually for operations and $100,000 in capital equipment in public access with a$1.30
PEG fee. He noted these cities also supplement the PEG fee with franchise fees. He also
noted the cable companies in other cities made a much larger initial investment in public
access than the system inherited by Mazcus.
Mr. Rodell asked if the school uses the public access facility. Mr. Taschner said all
programming is done with school resources at the schools. Mr. Westbrook asked if the
eity uses the public access facility. Mr. Grawe responded one qua.rterly news show uses
the studio for interviews.
Mr. Taschner said Eastview was built with a studio. He also said the school can not cover
games because Marcus does not have a van. Mr. Bible noted Mr. Taschner is the first
school district representative to attend the Committee's meetings. He also noted that the
reason there is not more public programming is that there is no demand for it. Mr.
Creighton asked if there is demand for school sports programming. Mr. Bible said the
school had resisted sports coverage in the past. Mr. Taschner responded that he
understands the demand for public programming will be low, while the demand for
government and educational prograrnming will increase. He said the high schools offer
video production courses and have video specialists on staff. He said the school district
could use a high speed video link connecting Eagan. He said he thought the school could
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piggy-back with public access, provided that the school's financial concerns were met. He
emphasized the school district would nat accept the finaucial burden of public access on its �
own. He e�cpressed the school would want a portion of the PEG fee and the franchise fees.
Mr. Bible explained the francluse fees are part of the City's General Fund. He said the
Committee would need a strong justification for takin.g francluse fees away from the
General Fund. He also emphasized the need to show that there is deniand for a service
costing $130,000 annually or more. Mr. Creighton noted there is an ethical question about
using a fiancluse fee or subscriber tax for spending that benefits the general population.
Mr. Bible said it would be helpful to see ISD 196's master plan for video production.
Mr. Creighton said Burnsville and Eagan are in the process of taking over public access.
He identified a third option of joining with them. Mr. Bible asked for Rosemount and
Farmingtods opinions on public access. Mr. Burt said it is difficult for Rosemount to
commit money for public access when no money is committed for government
programming. He said he is only aware of 4 programs generated by Rosemount residents.
Mr. Erar said he can see economies of scale from a joint effort, but is concemed about
allocating stafftime. He said he can see the demand for governmeirt programming.
Mr. Bible asked if ISD 196 would support designating one school studio for public access
use with a portion of the PEG fee for support. Mr. Taschner said it seemed like a good
idea if it makes financial sense to the district. He said he could understand how it could
provide the students with better equipment, but was not familiar with the day-to-day issues
, such as security that would be involved. Mr. Creighton said it is not uncommon for
schools to share the facility. He noted the City could finance editing equipment and
cameras, and a studio would not be necessary. Mr. Taschner noted there may be internal
political issues for equipping both Apple Valley high schools equitably.
Mr. Erar said he doesn't want to hire a staff just for Farmington and believes pooling
resources will lower the subscriber fee. He said he expected the Marcus rate to decrease if
a PEG fee were added. Mr. Erar also clarified he could support sharing sta.ff that would
do programming for governmern, public, and educational uses.
Mr. Creighton asked if the Committee wants to pursue a joint studio with Lakeville at this
time. The general consensus of the Committee was not to pursue a jourt effort with
Lakeville at tlus time. Mr. Creighton asked if the Comxnitt.ee would explore a proposal
with staffthat were used for public, education, and government uses. Mr. Bible referred
the question to Mr. Taschner. Mr. Taschner said he did not see a problem with it. Mr.
Creighton asked if the Committee was comfortable with a$1 PEG fee. Mr. Erar said he
wanted to know how the current Marcus rates compare with other cities in which the cable
company has made a signifiicant investment in public access. Mr. Creighton said he would
need more information, but suspects Mazcus will generally charge what the market can
bear. He said other communities have found residents willing to pay $1.40 to $1.60 for
public progra�uning. He recommended the City negotiate the right to increase the PEG fee
at it's discretion over time.
Mr. Creighton said he can create a zero-based budget proposal or he can take a budget and
propose a level of service. Mr. Taschner said if the school were to become involved there
would need to be a commitment from the City to increase the level of service. Mr.
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Creighton said there aze several issues for the school. First, part of the curriculum may
involve training students in video production. Second, the school can promote itself
through video. He noted the school can gain use of better equipment if facilities and
equipment is shared. Mr. Taschner asked what would be required of a facility to house
public access. Mr. Bible said an editing suite is the biggest expense, with a few cameras.
Mr. Creighton added a mobile van may also be very expensive. Mr. Erar said he is not
concemed with the location of the facility but with the equipment that is available and the
cost to subscribers.
Mr. Creighton said he can make a proposal that is sensitive to the staffing issue. Mr.
Bible asked for volunteers to help staff dra.ft a proposal. Mr. Magnusson and Mr. Rodell
volunteered to help Mr. Creighton and Mr. Grawe draft a proposal.
4. Adjourn
Mr. Brown moved, seconded by Mr. Rodell to adjourn the meeting. Motion carried
►�nanimous. The mceting was adjoumed at 8:16 P.M..