02-09-11 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL FEBRUARY 9, 2011 AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY The foregoing resolution was duly seconded by Montour. Ayes (5). Nays (0). Resolution declared adopted. CABLE TV Council Member Montour reported that the current cable franchise FRANCHISE agreement with Comcast expired on October 1, 2013. Montour pointed RENEWAL out that Little Canada is part of a Joint Powers Agreement (JPA) with ten other cities which formed North Suburban Communications Commission (NSCC). Under that JPA, NSCC takes on the responsibility for negotiating franchise renewals with the cable company. NSCC is requesting that each of the respective City Councils pass a resolution reaffirming their ability to renegotiate the contract on behalf of the cities in the JPA. Keis asked who from NSCC does the primary negotiations. Montour reported that there is a process that will be followed which includes informal hearings open to the general public as well as a needs assessment. Ile also noted that primary involvement on behalf of NSCC will include NSCC's Executive Director and Attorney as well as a Franchise Renewal Committee which includes three members of NSCC. Montour indicated that he is a member of that Committee. Montour indicated that one of the goals in the franchise renewal is to protect the cities' rights -of -way. Blesener asked if another company could come in and submit a proposal for the cable franchise. Montour stated that another company could, but noted that it would be cost prohibitive for a company to build out a new system. McGraw asked how Comcast gets rights to use the cities' rights -of -way. Montour explained that in return for the use of rights -of -way, the current franchise requires Comcast to pay cities a 5% franchise fee. Comcast also provides cities with PEG access (public, educational, and government channels). The cities' use their share of the franchise fee to pay for programming on these channels as well as to fund CTV channel 15 (public access) and NSCC. Montour noted that one issue of contention is the definition of gross revenues which is the basis used to determine the 5% franchise fee. Comcast has revenues from internet access, phone service, and the home shopping network, as examples, which they do not include in their gross revenues for purposes of determining the franchise fee. 3