HomeMy WebLinkAboutJanuary 18, 2007THE MINUTES OF THE
TELEC®MMUNICATIONS COMMISSION
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THURSDAY, JANUARY 18, 2007
The meeting was called to order at 7:00 p.m. by Demlis Stroik, Chairperson.
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Members Excused:
Council Representative
City Representative:
Legal. Counsel:
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Bob Buboltz
Bruce Nawrocki
Linda Magee
Steve Guzzetta
APPROVAL OF MINUTES
The minutes could not be approved since there wasn't a quorum.
OLD BUSINESS
A. Channel Check
Members noted that FSN X27 was not broadcasting any progranls and that chamlehs 29, 30, and 61 were
still callused. Members felt that some type of progranuning should be shown on these blank chamlels.
B. Correspondence Log and Follow Up on Complaints
Staff had not received any new complaints.
C. Status of Franchise Renewal
A draft agreement was submitted to the City in October. Even though the current franchise expired
November 9, 2006, things will continue `as is' since informal discussions to renew the franchise are
taking place.
Walt, Linda, and Bl~.ice Nawrocki met with Legal Counsel Guzzetta to go over the proposed agreement
submitted by Comcast. Guzzetta explained that they discussed the four options to be considered.
1. To accept the proposal.
2. To reject the proposal.
3. To negotiate without much prep work being done.
4. To negotiate with a lot of prep work.
Guzzetta reported that the decision was made not to accept the proposal as is, and that a letter will be
sent to Comcast indicating this, He told members that the franchise can be renewed for a period of 5-15
years. Comcast proposed only a five year agreement as laws may change that could benefit them.
Members will be updated on the progress of negotiations at a later date.
C. Other Old Business
No other old business.
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NEW BUSINESS
A. Announcement of Programming Enhancements
A letter was received detailing enhancements of channels and programming. One of the changes was
renaming the Digital Sports Tier to the Sports Entertaimnent Package and adding channels to its line
up. Other changes were listed in the almouncement. Members conunented that it appears that more
channels are being added to the higher cost tiers and taken aut of the basic service tier to make it less
desirable.
B. Notice of 2007 Rate Adjustments
A letter was received December 20, 2006 notifying the City of price changes for services provided by
Comcast. An updated chamlel line-up and rates for the programming, services and equipment were
included. These changes are taking effect February 2007. A question was raised regarding the
actual amount of franchise fees the city collects since figures on the notifications were different than.
the 5% figure they assumed was the amount. Guzzetta explained haw franchise fees are calculated
on gross revenues, and what portion of this is the City's.
Nawrocki asked if the FCC is looking at the issue of bundling services vs. going to a more ala carte
service. He also asked if the phone companies are lobbying for this type of service. Guzzetta said
that the FCC has looked at this issue, but that Cable companies are fighting any orders regarding this
matter. He said phone companies main issue is to eliminate local government control over use of
Right of Ways. They do not want to incur any expenses for use of the ROW and do not want to have
to pay franchise fees as the cable companies now do.
Guzzetta stated that Texas has gone to statewide franchising aszd since that has happened they are not
moving ahead building systems very quickly as the phone companies do not have enough money and
staff to do the buildouts and upgrades that are required. That is why they are fighting for use of
ROW's anal to do away with the requirements the cable companies have had to operate under in the
past. Guzzetta reminded members that phone companies have just recently gotten into this business.
They originally planned to make their money off the long distance market that went down the tubes
with the growth in cell phone usage. Therefore, they didn't upgrade their systems to provide cable
and Iugh speed Internet services like the Cable companies did. He doesn't think the phone
companies are in a position to build out systems here, so they probably won't create much
competition to Comcast. Plus, they won't be competing far price, just service or quality of service.
They won't be charging less than what is being charged now by Comcast or other cable companies.
Nawrocki asked if services were unbundled, and subscribers could order ala carte, what would
control the pricing on each channel. Guzzetta said nothing would control it unless the FCC stepped
in and passed orders regulating the fees.
C. Notice of Public Hearing to be held in February re: Cable Rates
Linda explained that a Public Hearing must be held to allow the public to voice concerns regarding
the rates charged far basic cable services, equipment and installation. The City can only regulate the
fees charged for these basic services. Under federal law, the rates for all programming not included
in the basic service tiers are unregulated. She reviewed the rates charged in January 2006, June
2006, a11d the new rates effective February 1, 2007. It was noted that Comcast is not charging the
maximum rate allowed according to the forms submitted. A copy of the Council Letter establishing
the Public Hearing for Monday, February 12, 2007 was included in the agenda packets.
TELECOMMUNICATIONS COMMISSION MEETING
JANAURY 18, 2007
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D. Review of Resolution (Rate Order far Basic Programmiz~zg Rates and Equipment & Installation
Rated
A copy of the Resolutions approving orders for maximum rates on Forms 1240 (Basic Programming
Rates) and 1205 (Equipment and Installation Rates) that will be considered by the City Council oil
February 12`'' were included in tl~e packets with the following summarized stipulations:
1. The Resolutions state that tl~ze City neither approves or denies the rates, but may function as a
rate ceiling during the relevant rate period.
2. That Comcast znay not charge any higher rates tl~zan those set in the 2006 FCC Forms.
3. Comcast may charge less than the lawful maximum permitted rates.
4. The City reserves its right to take action if the figures are found to be inaccurate.
5. The City reserves all of its rights, including but not limited to:
a. To request and review data concerning the 2007 FCC forms in order to determine the
impact, if any, the documents have on rates proposed in future rates
b. The right to addxess issues raised in the 2006 forms that are relevant to any city review of
subsequent rate filings.
c. The right to request additional information concerning the 2006 forms that is relevant to
any city review of subsequent rate filings.
6. The Order constitutes a written decision for purposes of 47 C.F.R.
7. The Order shall be effective immediately upon approval by the City.
8. The order sha11 be released to the public and to Comcast, and a public notice shall be published
stating this Order has been issued and is available to review pursuant to 47 C.F.R.
Since there wasn't a quorum of members to make a formal recommendation, she asked what the consensus
of members present was for an izzformal recommendation. It was the consensus of all members present to
recommend the City Council hold the Public Hearing and that the Resolutions be adopted as presezited.
A. Report of IS Dept Re: Streaming Video
Per tl~e request of the Cable Conunission, the City's IS Technician gathered information and prices
to provide streaming video of council meetings on the Internet. He obtained proposals from three
coznpazues (Granicus, Implex, and A1phaVideo). Since our whale cable system is in need of
upgrading, he believes it is best to have a consultant make a recommendation on what should be
done with cameras, recording devices, audio-video equipment and computers/software to provide the
best service to our citizens at the most reasonable price, prior to streaming council meetings on the
web so that the entire system works together. He reported that the major expense for streaming
video is off-site hosting of the video files.
Staff has budgeted some monies to upgrade our system. T11e materials provided in the packets were
far informational purposes and were in response to Reuben's inquiry on this matter. It was
suggested that staff speak with Minneapolis and St. Paul to get information on the feedback they
have received from the public regarding this service.
The members wished to thank the IS Dept staff for the fine work in gathering the information and
preparing the report. Since this is such a huge expense, we will need to re-visit this at a later time
once decisions are made on how to upgrade the system so the right equipment can be purchased that
will provide the services we wish to have.
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B. Passible S,zspension of Carriage of WUCW-HD
Comcast's agreement with Sinclair's TV station WUCW-HD expires shortly. Although Comcast is
in negotiations with Sinclair, it znay be necessary to suspend carriage of the station if an agreement
caznlot be reached. This could happen as early as February 5~' if Sinclair elects to pull the station
from the Comcast lineup. WUCW on the basic service tier is channel 8, which is not affected by this
agreement.
C. Other New Business
Nawracki shared a letter he had received from Brian Olson, a former resident, who had problems
downloading information off the City's web site. His complaint was that it took too long to da it.
Linda passed the letter on to the IS Dept. and they responded to his complaint. Mr. Olson offered
same suggestions that would improve the city's services. Most of tlae things he suggested are already
being discussed and budgeted for as the City knows the system needs upgrading.
Linda infoz7ned the members that the Volunteer Recognition Dinner is to be held Marc1129`~' at
Murzyn Hall. Invitations were given to those in attendance. The others will be znaiied out.
She then told members that the City Council will be appointing Robert Peltier to fill the vacancy of
Dave Mahoney. 1VIr. Peltier used to work for the cable company as a Field Service Supervisor.
REPORTS
A. Report of Connnissioners
EcPueation- Nothing to report
Library- Nothing to report
Public-Nothing to report
Government-Nothing to report
B. Report of Comcast-
The reports were included in the agenda packets for the commissioners to review.
C. Report of Cable Attorney
1. Guzzetta reported that on December 20, 2006 the FCC adopted an Order on Franchising Rules
that apply to new companies that allows for forced access in the Right of Ways. Any PEG fees
or fees for INET will be taken out of fianchise fees. There will no longer be buildout
requirements and new companies can pick areas they want to serve. Existing Cable Companies
may tight this by demanding they be allowed to operate under the same rules. Curz•ent
companies could be granted the same rules at the time franchises are renewed. He explained
that they haven't actually released the order yet, but it should be shortly. Once they do, he felt
certain that lawsuits will be filed as the FCC overstepped their bounds in issuing this order.
2. Guzzetta stated that cities need to be cognizant of Qwest proposing legislation at the State
level. Qwest feels the FCC Order doesn't go far enough and is proposing legislation in several
states now. So cities may need to contact their legislators if they tzy to do this in Minnesota.
TELECOMMUNICATTC)NS Ct~MMISSION MINUTES
MEETING OF JANUARY 18, 2007
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D. Report of the Assistant to the City Manager
Adam Davis currently cablecasts our City Council and Planning & Zoning meetings. Since Jean
Kuehn retired, we no longer have a back up far this position. Linda asked if anyone from the
con~l~ission or someone they knew would be interested in serving in this position, and if so, to
contact her. She said that the position is paid $I0.69/hr.
The rr2eeting u-~as adjourned at 8:20 pin. AZZ oyes.
Respectfully submitted,
Shelley Hanson
S ecretaiy