07-08-1998 Council Agenda - Laserfiche WebLink

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1. "Cable Service" is defined as the state and federal law from time to time will define it. However, included in the definition, regardless of the federal law defmition are Institutional Network services, which will no doubt include significant data transmission service. This will provide adequate flexibility for the document in an environment of ever changing kinds of cable services. 2. "Gross Revenue ", upon which the company pays a 5% franchise fee, is expanded not only to include revenue from all Cable Services, as defined above, but also makes clear that fees for such presumed revenue producers as advertising, Internet service, and cable modem service will be captured for the purpose of collecting city revenue. 3. The franchise is still "non- exclusive" which is required by law. Therefore, the city can grant franchises to as many competitors as wish to provide service in the city. 4. The franchise term is for 15 years. This is standard around the country and is argued by the company to be necessary for them to adequately finance the significant upgrade of the cable system. Some policy makers argue that a shorter term will give the system more flexibility to be upgraded and give the city more leverage in "getting things" from the company. The past franchise was for 15 years, and the systems were constantly and significantly upgraded, this being in the best interest of the company anyway. The Commission recommends a 15 year franchise. 5. The franchise is for the corporate boundaries of the City, but the system is really one system for the 10 -city area, and is required to be interconnected with the systems which border the 10 -city area. The Commission required this in an attempt to keep the North Suburban System a part of' a greater metropolitan communications network, especially since many of the school district boundaries and the county boundaries extend beyond the 10 -city area. 6. Subscriber and Institutional Network drops must be provided to all institutions listed in Exhibit B. The city should carefully check this list to be sure all necessary city buildings are covered. The institutions will be connected to both networks free of charge and current uses will continue free of charge. Additionally, 3 upstream and 3 downstream channels will be provided for non -video purposes, free of charge, with additional non- video use of this network provided for "cost plus 45 %" or the "most favorable comparable user rate." For the six fibers to the nodes, additional use of these fibers will be on an "actual cost only" basis. 7. Construction will be completed on or before November 30, 2000. 8. The new franchise has attempted to interface with Right- of -Way ordinances which some of your cities might have adopted. Since some cities have not adopted them, the franchise needed to answer questions regarding construction or access to rights -of -way in 2 Page 17