10-22-2014 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 22, 2014 CABLE TV FRANCHISE Mike Bradley, attorney for the North Suburban Cable Commission (NSCC), appeared before the Council requesting approval of a two-year extension of the existing Cable TV Franchise Agreement with Comcast and then approval of the transfer of the franchise from Comcast to Midwest Cable. Bradley reported that after a series of negotiations, NSCC and Comcast agreed to a franchise extension through December 31, 2016 as well as a two year extension of the Memorandum of Understanding (MOU) which addresses issues related to public, education, and government (PEG) access. Bradley reported that the result of these extensions is that PEG access will received continued funding amounting to approximately $3 million over the next two years. Bradley noted that, as the Council is aware, the franchise renewal discussions with Comcast turned into a formal renewal process. Under the extension, the formal process will be suspended to allow the parties to commence informal negotiations in 2015. Bradley noted that if informal negotiations are not successful, the formal process can be resumed. With regard to the two year extension, Bradley noted that in addition to continued PEG fees, NSCC will receive an HD channel as well as will have access to electronic programming guides. Bradley indicated that he was very pleased to recommend that the Council accept the two-year franchise extension as well as transfer the franchise to Midwest Cable. Bradley reported that NSCC has approved the franchise extension and transfer and is recommending that the member cities do the same. Blesener asked if PEG fees would remain the same under the franchise extension and transfer. Bradley replied that they would, and pointed out that Comcast provides funding for public access through grants and then charges its customers PEG fees to recoup these costs. Blesener asked if the cities were giving anything up under the franchise extension. Bradley replied that they were not and pointed out that the cities are gaining an HD channel. McGraw asked for an explanation of the grants that Comcast provides NCSS. Bradley reported that he did not recall the amounts of the grants, but indicated that Comcast provides NCSS grants for the operation of public access channels, for scholarships, and for equipment. These grants are then recouped by Comcast charging its customers PEG fees. Montour pointed out that the cost of the grants are divided by the number of Comcast subscribers and then appear as PEG fees on individual bills. Montour indicated that there is an operating grant, an equipment replacement grant, and a scholarship grant. The continuation of these 2