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MINUTES <br />CITY COUNCIL <br />JULY 25, 2012 <br />bundling of TV, internet, and phone services and how they allocate <br />revenue. Wilson reported that 2009 and 2010 franchise fees were looked <br />at and the allocation formulas were requested from Comcast. Comcast <br />indicated that they overwrite their formulas each year and could not <br />provide that information. Wilson reported that as a result of these issues, <br />the cable commission reached a settlement with Comcast, the summary of <br />which was submitted to the Council. Montour pointed out that one of the <br />things the settlement agreement accomplished was a clarification of some <br />definitions such as "gross revenue ". <br />Wilson reported that Comeast is currently in franchise renewal <br />negotiations with the City of St. Paul and the Northwest Cable <br />Commission. She indicated that the commissions have been sharing <br />information as well as the costs associated with the technical audit. <br />Montour reported that currently North Suburban Cable Commission has <br />one of the strongest franchise agreements. Montour reported that the cable <br />commission sent Comcast a letter a while back asking that the current <br />franchise agreement be extended for five years. Comcast declined. <br />Blesener asked what the cable commission is likely to lose in this renewal. <br />Wilson reported that Comcast would like to lower the support for PEG <br />(public, education, governmental) access. They would also like to <br />eliminate their requirement to provide the institutional network at no cost <br />and free drops to city and school buildings. <br />Wilson reported that at the beginning of this year Comcast eliminated <br />most of its governmental affairs office and have hired new people with the <br />intent on doing more lobbying. Comeast has indicated that they do not <br />have enough time to send representatives to all cable commission <br />meetings, but have hired staff to attend city council meetings, which <br />Wilson anticipated Comcast would start doing in an effort to pit cities <br />against cable commissions. <br />Blesener asked how far the renewal process has progressed. Wilson <br />reported that they are close to getting into the formal process. She <br />anticipated that the franchise renewal would not be completed by the end <br />of the contract. In that case, the existing contract can be extended in six - <br />month increments. <br />Keis asked if there are any positives that are likely to result from the <br />renewal. Wilson reported that the commission has a great contract, and <br />the goal is to maintain as much of that contract as possible. Montour <br />noted that the goal is to keep the institutional network as well as the <br />scholarships, equipment grants, and universal access that Comeast funds <br />through PEG fees. The commission also wants to keep channel 15 and the <br />2 <br />