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HomeMy WebLinkAbout03/15/1999 • � Telecommunications Advisory Committee City of Apple Valley March 15, 1999 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 but a quorum was not reached. Members Present: Rollin Bible, Jerry Brown, Dale Rodell Members Absen#: Scott Hugstad-Vaa, John Magnusson, David Westbrook Others Present: Charles Grawe, Dennis LaComb, Rob Roeder Thomas ° Creighton, Carol Wold-Sindt (arrived at 7:15 p.m.), Mary Hamann-Roland 2o Cable Franchise Renewal Mr. Creighton presented the proposed cable franchise renewal document. Mr. Creighton then went over some of the key aspects of the franchise. He noted it is a 15 year, non- exclusive franchise. The definition of "basic cable service" uses the federal law language in order to provide flexibility over the term of the franchise. The definition of "cable service" uses the language in Minnesota Statutes. Mr. Creighton clarified the use of cable modems for data transmission over the subscriber system is included in the Federal and State laws. The definition of "gross revenues" pertains to all revenues directly or indirectly from operation of the cable system. The "right of way" definition is flexible and may be pre-empted by a City right of way ordinance. Mr. Creighton briefly explained the term of 15 years is appropriate. First, federal law doesn't easily allow for cities to not renew a franchise, thus the length has less meaning. Second, in order to obtain capital to upgrade the system, the cable company must show the lending institutions that it is positioned to recover its costs. Shorter franchises make lending institutions less likely to give the company capita.l necessary to upgrade the system. Mr. Creighton continued with other points from the document. The standard drop length is 200 feet, after which the subscriber must pay for additional footage. Undergrounding of cable is required. T'he City will have an emergency over-ride use of the system. The system is 750 MHx with 80 video channels. AII programming decisions on the system are that of the company. Late fees can't esceed the demonstrable cost of the late payment to the company. • • Mr. Bible then presented a brief history of the City's position relative to public access. He briefly explained how the cable company requested the City provide for public access in the renewed franchise agreement. Mr. Creighton explained the City will collect a$.25 per subscriber, per month, PEG fee to support PEG access, which will be capped at $1.25, adjusted annually for inflation. The City would be limited to increasing the fee by no more than $.25 annually. The company will pay the City $90,000 in an initial capital grant. Mr. Roeder requested Mr. Creighton to change the language to allow the company 45 days, rather than 30 days to make the payment in order to give the company adequate time to process the check. The company will be able to recover the cost of the grant by implementing its own PEG fee of up to $.25 per subscriber, per month. Mr. Creighton noted that the original concept was for this additional fee not to be applied against the City's cap. However, after calculating the rate of inflation and the years it would take with maximum increases to the PEG fee, he found the increase in the maximum fee would be to about $1.50. There would be minimal loss to the City if it captured the Marcus PEG fee. Thus, Mr. Creighton dropped the provision allowing the City to capture the Marcus $.25 PEG fee without penalty to the cap. Mr. Creighton noted the franchise fee will remain 5%, payable on a quarterly basis and subject to audit. The franchise requires various financial guarantees and letters of credit. The insurance requirements are consistent with Minnesota legal limits. If the franchise is transferred, the company is required to reimburse the City for its legal costs associated .-� with the transfer. Mr. Creighton said the only remaining issues involve the buildings which the company must wire into the subscriber network at no cost to the City. The company agreed to wire the teen center and aquatic center, provided the school district provide an easement across the south side of its Eastview High School property. The company also agreed to wire the Liquor stores at such time another business in the respective commercial development hooks up to the system. There was considerable discussion over the attachment of the School of Environmental Studies to the system. The company claimed the protected wetlands to the south of the property require the company to approach the property from the north at an enormous excess expense. There was consensus to continue to work on the issue and consider partnerships to allow the wiring to occur. There was also brief discussion about wiring the County government buildings. However, since the County will need fiber, not coax to provide GIS data services, the installation of coax will only serve cable TV purposes. The members decided to drop the requirement to wire the County buildings. There was consensus to place the franchise agreement on the City Council agenda for approval on Apri18, 1999. 3. Adjourn ' Mr. Rodell moved, seconded by Mr. Brown to adjourn the meeting. Motion carried unanimous. The meeting was adjourned at 9:13 P.N1..