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HomeMy WebLinkAbout06/04/2018 10 V i 06 000 see Meeting Location: Municipal Center City of Apple 7100 147th Street West Valley Apple Valley, Minnesota 55124 TELECOMMUNICATIONS ADVISORY COMMITTEE REGULAR MEETING TENTATIVE AGENDA JUNE 4, 2018 - 7:00 P.M. 1. Call to Order 2. Approval of Agenda 3. Audience - 10 Minutes Total Time Limit - For Items NOT on this Agenda 4. Approval of Minutes of December 4, 2017 Regular Meeting 5. Regular Agenda Items: A. 1" and 2nd Quarter Complaint Log B. 1" and 2nd Quarter Activities Report C. Charter Franchise Renewal Update D. Frontier Franchise Activation Update E. Dakota County Broadband Initiative Update F. Election of Officers 6. Informational Items A. FCC Rulemaking and Other Franchise Issues B. E-Commerce and Business Development Issues C. Other Staff and Committee Updates 7. Adjourn NEXT REGULARLY SCHEDULED MEETING: Monday September 10, 2018 7:00 p.m. (Regular) Telecommunications Advisory Committee City of Apple Valley December 4, 2017 7:00 P.M. Municipal Center Minutes 1. Call to Order Chair Brown called the meeting to order at 7:00 p.m. Members Present: Rollin Bible, Jerry Brown, David Cherner, Dale Rodell Members Absent: Others Present: Charles Grawe,Patrick Haggerty,Pat Wood 2. Approval of A eg nda MOTION: Mr. Bible moved, second by Mr. Cherner, to approve the agenda as presented. Motion passed 4—0. 3. Audience Items Mr. Wood expressed concerns about the quality of Internet service provided by Frontier to his neighborhood. He expressed the desire to set minimum Internet bandwidth and speeds. The Committee explained that the Federal Communications Commission(FCC) prohibits local governments from regulating provision of Internet service. 4. Approval of Minutes of September 11, 2017 Regular Meeting MOTION: Mr. Cherner moved, second by Mr. Bible, to approve the minutes of September 11, 2017 as presented. Motion passed 4—0. 5A. 4th Quarter Complaint Log Mr. Grawe reported that the City received one complaint during the period. 5B. 4th Quarter Activities Report Mr. Grawe provided a brief update on activities. 5C. Charter Franchise Renewal Proposal Mr. Grawe presented the latest draft of the franchise proposal. The Committee reviewed the significant points of the agreement and held discussion. Mr. Haggerty answered questions and provided clarification from Charter's perspective. Mr. Grawe noted that there were a couple of sentences that were still being finalized by the attorneys and explained the intended concepts. MOTION: Mr. Cherner moved, second by Mr. Bible, to recommend the City Council approve the proposed franchise agreement or an agreement substantially similar with Charter Communications, subject to final language approval by the City's attorney. Motion passed 4-0. 5D. Dakota County Broadband Initiative Agreement Mr. Grawe presented the agreement for the cities and Dakota County to operate and maintain their fiber optic networks jointly. The Committee held discussion. MOTION: Mr. Cherner moved, second by Mr. Bible, to recommend the City Council approve the proposed agreement. Motion passed 4-0. 5E. 2018 Meeting Schedule The proposed meeting dates are March 5,2018; June 4, 2018; September 10, 2018; and December 3, 2018. MOTION: Mr. Bible moved, second by Mr. Rodell, to approve the proposed meeting schedule. Motion passed 4-0. 6A. FCC Rulemaking and Other Franchise Issues Mr. Grawe reported no new issues. 6B. E-Commerce and Business Development Issues Mr. Grawe reported no new e-commerce issues. 6C. Other Staff and Committee Updates There were no other items. 7. Adjourn MOTION: Mr. Rodell moved, second by Mr. Cherner, to adjourn the meeting. Motion passed 4 - 0. The meeting was adjourned at 8:25 p.m. IW IV IIW 0000 IsaV* 8666 000, City of AppValley MEMO Administration TO: Mayor, City Council, and City Administrator FROM: Telecommunications Advisory Committee DATE: June 4, 2018 SUBJECT: 2017 ACCOMPLISHMENTS The Telecommunications Advisory Committee held three meetings in 2017. The members of the Committee in 2017 were: Rollin Bible, Jerry Brown, David Cherner, Mark Moore, and Dale Rodell. Jerry Brown served as Chair and Mark Moore served as Secretary. During the summer, Mr. Moore passed and his seat was vacant for the remainder of the year. Major accomplishments and/or undertakings by the Telecommunications Advisory Committee during 2017 include: • Year Five of Cable Franchise Renewal Process: The City completed its portion of the work with the renewal of the franchise agreement with Charter Communications. The existing agreement took effect in 1999 and has a term of 15 years. Typically, the franchise renewal process takes three years. However, this process has been extended. The City used the legal services of Mr. Bob Vose of the firm Kennedy and Graven. The City is working jointly in the renewal process with the Cities of Farmington and Rosemount. While each city will have its own franchise ordinance, the language will be virtually identical in each, allowing for more efficient joint administration of the three franchises and cohesive partnership in the cable commission. In December, the Committee recommended approval of a franchise subject to a few minor revisions being worked out by the attorney. That proposed language was making its way through the Charter corporate approval process in early 2018. Once the proposal has been approved by Charter, it will be forwarded to the City Council for action. • Frontier Communications Competitive Franchise: Frontier Communications applied for a competitive cable franchise in 2016. While traditional cable service would require a competitor to "overbuild"the city with a new network, Frontier proposed to use new technology that allows them to provide cable service over their existing telephone system. Frontier shared a map of its progress in the fall of 2017. • Participation in State-wide Cable Administration Association: The Committee continued its participation in the Minnesota Association of Community Telecommunications Administrators (MALTA). The Committee also monitored events pertaining to municipal wireless and broadband service provision. • Participation in Joint Powers Cable Commission: The City of Apple Valley also participated in a joint powers agreement with the Cities of Farmington and Rosemount to provide for certain cable television services. The group approved an operating budget for 2018. • Review of Cable-related Complaints. The Committee reviewed cable complaints received by Commission staff. The number of complaints in recent years has been historically low and most pertain to unburied service drops or billing issues. • Franchise Fee and PEG Fee Review: Pursuant to both franchise agreements, the cable company is obligated to pay the City an annual franchise fee equivalent to 5% of their annual gross revenues. Under both agreements, the Cable Company is required to make quarterly franchise fee payments, rather than annual payments. The total quarterly payments were as follows: Quarter Franchise Fees PEG Fees First Quarter 2017 $162,150.99 $15,429.50 Second Quarter 2017 $163,594.68 $15,375.50 Third Quarter 2017 $163,611.28 $15,233.00 Fourth Quarter 2017 $162,117.43 $15,186.00 Total $651,474.38 $61,224.00 The franchise fee for 2017 totaled $651,474.38, down from $672,591.86 in 2016. Quarter Franchise Fees PEG Fees First Quarter 2016 $161,974.73 $15,126.00 Second Quarter 2016 $164,121.99 $15,114.50 Third Quarter 2016 $163,962.49 $15,270.50 Fourth Quarter 2016 $182,532.65 $15,470.50 Total $672,591.86 $60,981.50 Pursuant to the franchise agreements, the Cable Company is obligated to collect a PEG fee for the City. Per the current franchise agreement, the City's PEG fee is $.50 per subscriber. The City received PEG fees in the amount of$61,224.00 for 2017. The PEG fee revenue for 2016 was $60,981.50, as shown above. The PEG fee revenues implies that cable subscribers are holding steady. The PEG fee revenues are used to finance the City's capital needs and can't be used for non-capital operational expenses under the new franchise. • Capital Equipment Planning and Acquisition: The cable commission upgraded its "field cameras" and editing equipment used for production of television shows in 2017. • Cable-cast of Public Meetings: Cable-casting of City Council and Planning Commission meetings continued in 2017. In addition, City of Farmington and Rosemount City Council and Planning Commission meetings and Dakota County Board meetings were also televised. • Government Access Programming: Government Access Channel 180 (formerly 16) continued to provide government access for the joint powers commission established by the Cities of Apple Valley, Farmington, and Rosemount. Programming and bulletin board materials were added for the other cities. Once the new franchise is approved, each City will be narrow-casting its own information to its own residents and the channel will exclusively have Apple Valley content for Apple Valley residents. In 2017, cable commission staff switched video formats from the traditional 30 minute shows to short 2 to 3 minute segments better designed for cross promotion on websites and social media. Public reaction to the shorter video format has been positive and City staff finds production of the shorter segments to be more manageable within their schedules. The City also used City and Commission staff to produce a video of the State of the City address. The City continued to cable-cast live Planning Commission and City Council meetings. These meetings were recable-cast periodically. • Public Access Television: Under the new franchise agreement, Charter Communications is no longer required to provide the same public access television opportunities provided in the past. In 2010, Charter transferred this responsibility to the Cities in the joint powers commission. The cities provided video bulletin board messages on the channel, but not program playback. • Joint Powers Commission Summary: Since its inception, the Commission has provided staffing and support services to the Cities of Apple Valley, Farmington, and Rosemount. During 2017, the three cities created a new joint program production model, in which the shows produced by the Commission staff create shorter video segments targeted at specific issues within the individual cities. The Telecommunications Advisory Committee welcomes direction from the City Council as well as any recommendations, questions, or concerns.