HomeMy WebLinkAboutOctober 17, 2002THE MINUTES OF THE
TELECOMMUNICATIONS COMMISSION
FROM
THURSDAY, OCTOBER 17, 2002
The meeting was called to order at '7:00 p.m. by Dennis Stroik, Chairperson.
RULL CALL: Commission '1vlembers:
Council Representative:
City Representative
Legal Counsel:
AT & T Broadband Rep
APPROVAL OF MINUTES
Dennis Stroik, Dave Mahoney, iKeuben Ruen, anti Brad
Peterson
Bruce Nawrocki
Linda Magee
Stephen Guzzetta
Kathi Donnelly-Cohen
Motion by Reuben Ruen, second by Brad Peterson, to approve the minutes from the meeting of July 18,
2002. All ayes.
OLll BUSINESS
A. Channel Check
Everything was ok.
B. Correspondence Log and Complaint Follow Up.
Complaint by William Proft, 999 41St Ave-He questioned a $15 overcharge on his bill and a $4.99
increase in the digital package he subscribes to. A copy of the letter Kathi Donnelly-Cohen sent
him was enclosed in the agenda packet. It explains that his bill was itemized rather than given the
package discount for the Digital Bronze Service and a copy of the notice for the increase to this
package and his converter was also included.
LeAnn Anderson-941 42 % Ave-She had moved the end of July and the landlord tapped into her
system and would not allow access for removal of the equipment. AT & T has since terminated
service and as soon as she returns the cable modem her account will be credited for all charges
since her vacating the premise.
Bruce Ordway-He faxed over several comments which were forwarded to Kathi Donnelly-Cohen.
He complained about the TV Guide channel and the amount of advertising on it. He also
complained that his signal quality was poor and questioned Pay Per View movie orders for more
than one television in the home. Kathi addressed all of his concerns and explained that Pay Per
View movies can be ordered on more than one tv for a single charge, but must be done through the
remote control for each tv set.
TELECOMMUNICATIONS COMMISSION MINUTES
OCTOBER 17, 2002
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C. Status of Cease and Desist Order to AT & T
Steve Guzzetta reported that an agreement had been reached on new arbitration language to our
legal counsel's satisfaction. Therefore, the Cease and Desist Order to AT & T can be withdrawn
by the City Council.
Motion by Dennis, second by Brad to recommend the City Council withdraw the Cease and Desist
Order to AT & T as the issue has been resolved.
D. AT & T's Current Reporting of Telephone Statistics
This issue is still of concern to Cable Administrators and is still being discussed at their meetings.
Steve Guzzetta will report back if anything is decided on this issue.
E. Proof of Performance Testing
Notice of the Performance Testing that took place in August was included in the packet for
informational purposes only.
F. Franchise Fee Payment for 2nd Quarter 2002
A copy of the franchise fees received for 2nd Quarter 2002 were enclosed in the agenda packets.
G. Internet Tiered Packages Beginning August 1, 2002
A copy of the letter notifying the City that a new package had been added to Intemet Service
subscribers was enclosed in the packets. In addition to ChoiceLink, the previously offered
package, U1traLink was added effective August ls`. This service offers much faster connection and
downloading speed capabilities than ChoiceLink at a higher price. One advantage of these
services over AOL is that subscribers do not need an additional phone line as they do with AOL.
H. Analog Music Choice no Longer Available after September 9, 2002
As of September 9, 2002, Music Choice is no longer offered as an a la carte option on analog
video service. Subscribers have the option to purchase DMX as part of the digital format.
I. Old Business
There was no other new business.
TELECOMMUNICATIONS COMMISSION MINUTES
OCTOBER 17, 2002
PAC7E 3
NE~V BUSINESS
A. Rate Regulation Options
In August Creighton Bradley & Guzzetta, LLC prepared a memorandum for its AT & T
Broadband clients outlining S options they could select from to deal with AT & T's pending
rate filing. Since it does not appear that a sufficient number of clients are willing to underwrite
the cost of an extensive rate review, CBG believes Options C & D strike the best balance
between cost, risk, and preservation of rights. The following is a brief summary of each
option:
a. Do nothing-Let the company raise rates and we would have no rights to go back and review
figures or order action.
b. We could de-certify-We would not be able to regulate rates and the company would have
the right to do as it wished. Even though we currently don't have many rights, we
shouldn't give up the ones that we do have. And any changes to laws could have an impact
on our rights in the future, thus we should preserve them.
c. Perform no review and issue a Rate Order preserving our rights-We could forego a
substantive review of the Forms 1240 and 1205 filed in March 2002 and issue a rate order
that neither approves or disapproves the proposed rate, but reserves any rights we may have
going forward. Such an order would have to be adopted within the 12 month review period
provided under the FCC's rate regulation rules. This is the option Steve recommends we
take.
d. Perform an abbreviated review to determine if the 2001-2002 settlement has been properly
implemented-We could review forms to determine if the settlement rates were used in the
March 2002 Forms 1240 and 1205, and the rates were calculated and implemented
consistent with the settlement agreement as set forth in our last rate orders. Steve had
forwarded a letter and some information to Ashpaugh and he didn't see anything that sent
up a red flag, so he doesn't feel we should necessarily pursue this option.
e. Full blown rate review-This would allow us to examine the figures closely, and the rules
established by the FCC. This would be costly and is best done as a Large group to share
expenses.
After some discussion, it was decided that Option "C" seemed to be the best course to take.
Motion by Brad, second by Dave to recommend the City Council adopt a Rate Order that
preserves our rights and allows for future action if deemed necessary. All Ayes. MOTION
PASSED.
B. Customer Service Notice being Mailed to Subscribers
Copies of the notices being mailed out to subscribers were enclosed in the agenda packets.
C. MACTA Connections Publication for Fa112002
A copy of the newsletter was enclosed in the agenda packets for the commission members to
review. Linda will check on the mailing list for MACTA to see that commission members
receive these newsletters directly.
TELECOMMUNICATIONS COMMISSION MINUTES
OCTOBER 17, 2002
PAGE 4
D. Other New Business
1 1 1 .t !"1Y 1 1 t
Bruce iv awrocxi reiterates ms posrtion tnat Lnanneis i ~ 8i i 6 Access Channels j shouia ne
combined as programming on the two is often times duplicated. He feels subscribers should
not be paying for two access channels when one would serve the needs of the community. As
the budget is being considered at this time, he felt it was appropriate to discuss the possibility
of combining them now.
Bruce then went on to report that he had recently attended a meeting of the Suburban Rate
Authority in Shakopee where he Teamed that Shakopee had installed a Fiber Optic I-Net
Connection shared by the City, School District, and Local Businesses. They worked closely
with the Shakopee Public Utility Co. and this connection provides them with hi speed data and
telephone service which Time Warner was not willing to provide. The person who
spearheaded this project will be writing an article about this joint venture for the NATOA
Newsletter. Linda will see that the commission members receive a copy. It was noted that this
issue will probably be addressed during our upcoming renewal process.
REPORTS
A. Report of Commissioners
Education-Dennis reported that a Candidate Forum for those running for School Board was
taped and is being broadcast on the School Access Channel 18. He encouraged everyone to
take the time to view it. He also stated that they have a new character generator system that
provides the messaging on the channel and that it is greatly improved.
Government- It was noted that the local candidates running for City Offices were being
taped in a Forum sponsored by the League of Women Voters. This also will be re-
broadcast on Channel 16.
Library-Nothing to report
Public-Nothing to report
B. Report of AT & T Broadband-
Kathi reviewed the reports and answered questions for July, August, and September 2002.
It was noted the renewal process will begin three years prior to the expiration of the current
franchise which is November 9, 2006. Kathi also reported the merger is moving forward
and AT & T Comcast has received the IRS Tax Ruling. They are still waiting for the FCC
to take necessary action.
C. Report of the Cable Attorney
1. The FCC held a Public Forum on Right of Way Issues. One of the topics discussed
was that connection to broadband is not being implemented as fast as expected. If
interested, you can download the discussion and high points of the meeting from
the Internet.
2. ECO Star and Direct TV's merger has been rejected by the FCC as it would create a
monopoly and could adversely affect subscribers especially in rural areas where
cable is not yet available as an alternative choice.
3. The Court Case of Charter vs. Santa Cruz which had bad implications for Cities
holding franchises, was reversed in District Court. Steve will keep us informed of
new developments regarding this.
TELECOMMUNICATIONS COMMISSION MINUTES
OCTOBER 17, 2002
PAGE 5
13. Report of the Assistant to the City Manager
Linda reported the City has received a check from AT & T for the expenses incurred during
the transfer process.
Motion by Dave, second by Brad, to adjourn the meeting at 8: 00 pm. All ayes.
Respectfully submitted,
Shelley Hanson
Secretary