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HomeMy WebLinkAboutFebruary 21, 2002THE MINUTES OF THE TELECOMMUNICATIONS COMMISSION FROM THURSDAY, FEBRUARY 21, 2002 The meeting was called to order at 7:00 p.m. by Dennis Stroik, Chairperson. ROLL CALL: Commission Members: Council Representative: City Representative Legal Counsel: AT & T Broadband Rep APPROVAL OF MINUTES Dennis Stroik, Dave Mahoney, Bob Buboltz, Ken Henke, Brad Peterson, Dan Swee, and Reuben Ruen Bruce Nawrocki Linda Magee Stephen Guzzetta Kathi Donnelly-Cohen and Dave Seykora Motion by Ken Henke, second by Brad Peterson, to approve the minastes from the meeting of December 20, 2001. All ayes. OLT) BUSINESS A. Channel Check The message bars were still quivering on some of the access channels. This is due to a problem with the time base correcter. Kathi made note of it. And there was very low volume on channel 98. B. Correspondence Log and Complaint Follow Up. There were no complaints received by the City since the last meeting C. Report on Review of Forms 1205 & 1240 for Rate Increases Effective July 2001 Steve Guzzetta, legal counsel, explained that Review of Forms 1205 & 1240 was performed by Ashpaugh and Sculco, CPA's, PLC (A & S). FCC rules place the burden on AT & T to prove that its proposed rates for equipment, installation, and far basic service are reasonable under applicable federal law and regulations. The City provided AT & T with ample opportunity to provide necessary support of its rates. And based on the analysis by A & S of the information provided, the City found reason to possibly order AT & T to reduce it rates and provide refunds. There were some issues that A & S had that were detailed in Attachment 1 enclosed in the agenda packets. Some of the discrepancies were due to the fact that the calculations were based on National figures, not based on local figures. It was difficult to compare rates since it was originally set up using local costs for equipment and cost of service. AT & T disagreed with A & S findings. Steve then explained that the case would most likely end up going to the FCC for them to decide, which could take up to theee years to decide, which would incur high legal expenses. To avoid expensive litigation and to protect subscribers, legal counsel and AT & T representatives met with A & S personnel in Florida to see if a compromise could be reached. February 21, 2002 Meeting Page 2 AT & T basically agreed to the adjustments we thought should be made to Form 1240 and will incorporate these adjustments into their next filing of March 2002, which will mean a lesser increase than what had been planned or allowed. Regarding Form 1205, the major issue was unbundling the actual costs. In negotiating a compromise, it was noted the maximum permitted rate for converter bnxec urac 56,hQ/month and the Coiilpailj%1iaS rcCcritl'y' been charging 53.30/month. AT & T agreed to limit the charge for converter boxes to the average amount charged nationwide (currently $4.23/month} and to hold this amount until June 2003, rather than to charge the maximum amount permitted of 56.60/month. These details will be put in a memorandum of understanding agreement by AT & T. Steve stated this is anly a temporary solution and that these issues will need to be addressed again in the future. But for now, we have held down increases to a minimal amount for the next year. He recommended the Commission and City Council pass the Resolutions that were distributed at the meeting which detailed the terms agreed to. There was some discussion regarding past rates and equipment charges. It was noted that so far, rates are not being restrained by competition in this industry. And as the franchising body, we can only review the rates to see if they are within the parameters allowed by law, we cannot reduce the rates to a level we feel is fair based on costs. Motion by Ken Henke, seconded by Bob Buboltz, to recommend the City Council pass the Resolutions distributed at the meeting, which include adjustments agreed to that will be detailed in a memorandum of understanding, regarding the maximum permitted rates for equipment and installation set forth in Form 1205, and the maximum permitted rates for basic programming set forth in Form 1240 submitted March 1, 2001. gill ayes. D. Summary Regarding Fiber Optic Line in Central Avenue A summary of the information and discussions that have taken place regarding a Fiber Optic Line in Central Avenue was enclosed in the agenda packet for the commission members to review. E. Other Old Business There was no other new business. NEW BUSINESS A. Annual Privacy Notice To comply with franchise requirements and applicable laws under the FCC, AT & T sent out an Annual Privacy Notice to all customers. A copy of the notice was included in the agenda packets. B. Franchise Fees for 3`d and 4`h Quarters-2001 Copies of the franchise fees received for 3`d and 4`" quarter-2001 were included in the agenda packets for the commission members to review. February ? 1, 2002 Meeting Page 3 C. Notice of Domain Name Change A notice was received in January explaining that all previously used e-mail addresses using mediaone and attbroadband as part of the e-mail account name will be changed to the new domain name of @attbi.com Current subscribers and others who will be affected by this change have been notified by both e-mail messages and the US Mail. D. Notice of Proof of Performance Testing Notice was received in January that AT & T would be conducting semi-annual proof of performance testing in February. This testing could cause very short (less than 30 second) interruptions in service on a few channels. E. Other New Business Reuben reported that he has been having trouble with his Internet access. It randomly goes out and takes several minutes before coming back online. Kathi told him to call Converges to report this. Bruce Nawrocki questioned programming on Channels 15 & 1 b (Public Access and Government Access). He felt there were programming lapses on both channels and that much of the programming was duplicated. He thought maybe the two channels could be combined. Steve said it would not lower rates to consolidate the two channels as the space is reserved by franchise requirements. There was a discussion on the possible problems that could be encountered by airing controversial programming that might be construed as sanctioned by local government. Kathi explained that another option would be to let either Blaine or Roseville program the Public Access channel. It is something that can be discussed and changed upon the renewal of our franchise. REPORTS A. Report of Commissioners Educational-Jean asked Dennis to check with the School District's Media Coordinator to see why teachers were not aware of the video equipment that was available to staff and students. It was noted there is a camcorder available at every school and this fact was not widely understood. Teachers are to be informed again that the equipment is available and so is the training on how to use it. Steve Guzzetta reported that Columbia Heights School District did apply for some funding for equipment to the Universal Library Association Committee that he is a member af. He stated that their request was denied this year, but hopes they will apply again. Grants are distributed on an annual basis, and not all of them can be accommodated at one time. Government- Nothing to report Library-Nothing to report Public-Nothing to report February 21, 2002 Meeting Page 4 B. Report of AT & T Broadband- The reports for January were enclosed in the agenda packets. Also included were the Community Television Programming Reports for October 2001-January 2002. Kathi reviewed the reports and answered questions. She also stated that a full report of the telephone answering standards had been given to legal counsel for 3`d quarter to insure compliance. C. Report of the Cable Attorney Steve reported on a couple of issues. The first being the FCC issued an order that DSL be considered an information service, which makes it a service that cannot be regulated by municipalities. Cable Modem Service will also be considered an information service. Second, the 394 Forms will be sent to the City shortly seekin¢ approval of the merger of AT & T and Comeast. And last, an article in the Febnzary 11~' edition of Cable World, mentions the Creighton, Bradley, and Guzzetta law firm as handling the complex litigation and legal issues in this latest merger of AT & T and Comeast. D. Report of the Assistant to the City Manager Linda had nothing further to report. Motion by Ken Henke, second by Bob Basboltz, to adjourn the meeting at 8:1 S pm. All ayes. Respectfully submitted, Shelley Hanson Secretary