06-11-2014 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL JUNE 11, 2014 that the current Public -Education -Government (PEG) fee at $4.15 per month per household is one of the highest in the country. Coleman presented the Council with a graph comparing the PEG fees of some local cities. He noted that the fee is utilized by NSCC for operating expenses. In addition to the level of PEG fee, Coleman felt the issue was one of transparency and felt NCSS member cities should know how these PEG fees arc being used. Coleman indicated that NCSS collects about $1.6 million in PEG fees each year and member cities do not see the budget nor know how the dollars are being spent. Coleman also stated that this evening he wanted the Council know the implications of denying the franchise renewal and requesting commencement of the formal renewal process. He indicated that Comcast is required under Federal Law to respond to the Request for Renewal Proposal (RFRP) that was submitted to Comcast from NSCC. He noted that when Comcast reviewed the RFRP, it found the average cost of the PEG fee being requested as part of the renewal increased to $7.57 per month per household. Coleman also indicated that there are a series of misrepresentations of what is going on in the informal renewal process that he would like to clarify for the City. The first was how the formal process was triggered, with NSCC claiming it was triggered by Comcast sending a letter to NSCC asking for its franchise to be renewed through the formal process set forth in the Federal Cable Act. Coleman stated that nothing could be further from the truth. Comcast sends out hundreds of letters per year asserting its right to renew its franchises. Coleman indicated that in his ten years working for Comcast, he has never been involved in a formal renewal. He wanted the Council to know that utilizing the formal renewal process is a highly unusual thing. The second point related to PEG fees, and Coleman pointed out that the RFRP is asking for $7.57 per month per household for operating support, and that the current PEG fee of $4.15 per month is one of the highest in the country. He also noted the underutilization of PEG channels by North Suburban Access Corporation (NSAC). Coleman indicated that NSCC is accurate in saying that Comcast is offering only $.44, but that is for operating costs for NSAC. However, the $.44 is not Comcast's total offer, noting that there are franchise fees and other capital commitments being offered by Comcast. Coleman noted that Corneas -1's review of the City's budget documents indicated that Little Canada has about $350,000 in its Cable Franchise Fund that it has accumulated. He questioned the City's needs and whether residents should be forced to pay the costs associated with increasing these balances. Coleman also stated that he was unsure 4