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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 PAGE 2 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 Therefore, the Cease and Desist Order to AT & T can be withdrawn by the City Council.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