HomeMy WebLinkAbout09/14/1998 � �
Telecommunications Advisory Committee
City of Apple Valley
September 14, 1998
7:00 P.M. City Hall
Minutes
1. Call to Order
The meeting was called to order at 7:00 p.m. by Chairperson Bible.
Members Present: Dale Rodell, Rollin Bible, Jerry Brown, John Magnusson
Members Absent: Scott Hugstad-Vaa, David Westbrook
Others Present: Charles Grawe, Dennis LaComb, John Erar, Gary Humphrey
(arrived at 8:00 p.m.), Thomas Creighton, Rob Roeder, Carol Wold-Sindt
2. A��roval of Minutes
The minutes of June 8, 1998 were approved unanimous. Motion by Mr. Rodell, second
by Mr. Brown.
3. She�herd of the Valle,y Church Comments on Public Access
Mr. Grawe said he met with Pastor Paetznick of Shepherd of the Valley Lutheran
Church. Mr. Grawe explained the church currently video tapes sermons, edits several
sermons together, and plays edited program on public access. Mr. Grawe said he
explained to Pastor Paetznick the City's desire to continue public access in a manner that
is generally similar to the end user. In that respect, the only practical change to the
church would likely be bringing video tapes to a City building rather than the Marcus
building. Mr. Grawe added that the editing work currently performed by Dan Davies for
the church would likely have to be done by church volunteers. There was no dissent
from the Committee regarding Mr. Grawe's characterization of the City's intentions for
the future provision of public access.
4. Franchise Renewal U�date
Mr. Creighton gave a report on the franchise renewal progress. He said he was waiting
on the Lake Minnetonka franchise to settle, which could save the City some money.
However, after a significant delay in the Lake Minnetonka settlement, he went forward
with an Apple Valley, Farmington, Rosemount franchise. The Apple Valley franchise is
a hybrid based on the Lake Minnetonka franchise. The Marcus attorney, Jane Bremer, is
on vacation until September 30 and has received, but not read the franchise document.
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Mr. Creighton also sent a letter to Ms. Bremer which serves as a summary on progress
with the franchise issues. Mr. Creighton said he received a near-final copy of the
Lakeville franchise and will review it for consistency with the Apple Valley franchise.
Mr. Creighton said most negotiations to this point have been over the phone and have
narrowed the discussions to four sticking points--two dealing with non-compliance and
two dealing directly with renewal. Mr. Creighton spoke with Ms. Bremer prior to
sending letters of non-compliance. Ms. Bremer requested he delay the letters, since
doing so would likely result in additional delays to the renewal as new representatives
from the company would come into the discussion. Mr. Creighton said none of the
Cities' rights are waived by delaying the letter and the issue is essentially being held in
abeyance.
Mr. Creighton said the first issue involved Marcus customer service representatives who
told customers angry over the rate increase to complain to the cities. Mr. Roeder said
there had been miscommunication with the customer service representatives and the
problem was resolved. Mr. Creighton said the second issue involved Marcus arbitrarily
moving the City's access channel from channe121 to channel 16 without permission.
Mr. Creighton noted the city councils can still send notices of violation on these issues.
Mr. Creighton said that Marcus just issued federal Form 394 for approval of the change
in ownership. This begins a 120 day period in which the cities must address the forms.
He said he is also concerned that the sale of Marcus to Paul Allen did not include sale of
Marcus Fiberlink. He noted the renewal process was working in tandem with
negotiations with Fiberlink for an institutional network. .This could be in jeopardy if
ownership of Marcus and Fiberlink is separated. Mr. Creighton also noted all future
communications about the franchise will be in writing.
Mr. Bible asked if this was good progress on the franchise. Mr. Creighton said he thinks
progress was made, but more progress will follow with written negotiations. He also
noted great progress was made on the ordinance and the "boiler plate" language. Mr.
Erar expressed frustration with the slow progress and wanted to know what still remain
to be done. Mr. Creighton explained the delay of the Lakeville franchise has been a
major factor in the slowed progress. Mr. Creighton said the cities could try to fine
Marcus for the franchise violations, but would likely cause a negative response to
progress on the renewal.
Ms. Wold-Sindt said she expects better progress in the near future now that the transfer
of ownership is complete. She said the attorneys can expect better response times from
the Marcus corporate offices with the sale of the system completed. Mr. Creighton
added the new ownership of Charter Communications will approve all new franchise
renewals. Mr. Creighton said he has worked with the lead attorney from Charter and
Ms. Bremer has a close working relationship with Charter. He said part of the delay was
due to corporate decisions within Marcus to refuse to negotiate issues until the sale was
completed. Ms. Wold-Sindt said her firm will represent both Marcus and Charter during
the renewal negotiations.
Mr. Creighton said he and Ms. Bremer will meet when she returns and believes setting
reporting deadlines is a good idea. Mr. Bible said he still has concerns with the PEG fee
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portion of the franchise. Mr. Erar asked when the joint powers agreement would be
completed. Mr. Creighton said he will work on the joint powers agreement.
Mr. Bible asked what the new corporate mentality is like for Marcus. Mr. Roeder
responded there is a new regional manager. While the company name is currently
Marcus, he expects a change in the near future. His goal is to do business as usual, only
better, to impress the new ownership. He noted the budget process is similar to the
previous management except mare money is available. He also noticed much greater
management support over the past 30 days.
Mr. Creighton said he will be meeting with representatives from Burnsville to discuss an
interconnect. Mr. Bible said he doesn't expect clarification on the PEG fee until after
November. Mr. Erar said Farmington and Rosemount don't have that issue. He said the
issues he wants resolved are the joint powers agreement, capital grant funding outside of
the PEG fee, and use of the fiber optic bandwidth. Ms. Wold-Sindt said the cities should
copy the Lakeville agreement with Fiberlink.
Mr. Erar said he is also concerned about the high level of customer service complaints.
Mr. Creighton recommended the cities file a form with the FCC to investigate the rate
increases. Mr. Roeder said the rate increase reflects an additional 13 channels added to
the showcase package, as well as cost increases passed down by cable networks. There
was brief discussion about the pricing of satellite cable services. Mr. Bible asked if the
Committee wanted to file the form. Mr. Roeder said he has made significant changes to
improve customer service over the passed 60 days, and expects more improvements in
the next 60 days. There was general consensus to monitor Marcus' customer service
improvements over the next 60 days.
Mr. Bible set the next meeting for Tuesday, October 13, at 7:00 p.m..
5. 3rd Ouarter Com�laint Log
There was brief discussion about the complaint log. There was consensus to monitor
Marcus' efforts to improve customer service over the next 60 days.
6. Adjourn
Mr. Rodell moved, seconded by Mr. Magnusson to adjourn the meeting. Motion carried
unanimous. The meeting was adjourned at 8:25 P.M..