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MINUTES <br />CITY COUNCIL <br />OCTOBER 22, 2014 <br />grants is addressed in the MOU, which is a separate from the franchise <br />agreement. <br />Montour noted that NSCC is made up of ten member cities that joined <br />together for purposes of administering a cable franchise. I -Ie noted that <br />NSCC has negotiated the two-year cable franchise extension with <br />Comcast and is recommending that the member cities approve it. Montour <br />pointed out that the two year extension will give NSCC an opportunity to <br />negotiate the franchise renewal with the new entity, Midwest Cable. He <br />pointed out that relations between NCSS and Comcast have been <br />contentious. <br />With regard to whether NCSS gave up anything as part of the two-year <br />extension, Montour noted that NCSS agreed to set aside a number of <br />compliance issues that Comcast has. He pointed out that NCSS is gaining <br />an HD channel as well as the electronic programming guide. <br />Keis asked about negotiating a new franchise with Midwest Cable. <br />Bradley noted that the current franchise was to expire around <br />Thanksgiving along with the MOU. He indicated that it was very <br />important to extend the franchise as well as the MOU in order to keep <br />funding available for public access. <br />McGraw asked how the amount of grants is determined. Montour <br />explained that grant levels, plus annual escalators, are a part of the <br />franchise agreement. Montour then explained in detail the components of <br />PEG fees and franchise fees that subscribers see on their bills. He equated <br />these fees to the Local Government Aid (LGA) that the City receives from <br />the State and the need to reduce dependence on these fees. Montour felt <br />that the two year extension will provide the North Suburban Access <br />Corporation (NSAC) an opportunity to put together a plan for reducing <br />that dependence. NSAC will be working with member cities' Mayors and <br />City Administrators on this planning. <br />McGraw asked why Comcast is resisting retaining grants at their current <br />level given they are pass-through costs to customers. Montour replied that <br />Comcast's position is that these fees put them at a competitive <br />disadvantage since DISH and DireetTV are not subject to these same fees. <br />Bradley again noted that the NSCC is requesting that its member cities <br />approve the franchise extension as well as the transfer. It is anticipated <br />that the member cities will do so. <br />3 <br />