11/12/1985 Council Minutes - Laserfiche WebLink

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1 1 COUNCIL MEETING November 12, 1985 Page Six - 0181 Mr. Johnson said there will be training sessions available for users of port -a- packs. The cost of the courses will be $5.00 and a training room is needed. He asked for Council approval to use City Hall one night a week for this training. Equipment would be supplied by the Commission. Mayor Benson felt this was a little premature until cable TV is actually installed in the homes. Mr. Ayotte explained he is an associate to Thomas Creighton who is the legal consul to the Cable Commission and wanted to make it clear they do not work for the Cable Company. He explained the packet that was sent to the Council and said that for several months the Cable Commission has been negotiating with Group W cable to determine modification to the original cable agreement. At the October 28, 1985 Cable Commission meeting a resolution was adopted which summarizes the result of their negotiations and recommends aPProval of the amendment. The first item in the packet is Agreement #1 which is separate from the original franchise ordinance. The three franchise amendments which are recommended by the cable commission are; 1) rate freeze; 2) rate; 3) institutional network. The rate freeze in the original ordinance provided for a period of three years after the franchise was certified by the state or for two years after construction is complete, whichever is longer, the rates will be frozen. Federal legislation has modified this ordinance provision and the cable commission is recommending that the rates be frozen until January 1, 1987. This would bring the cable agreement into compliance with federal law. The second amendment deals with Exhibit A which contains all the rates and service. This is affected by the federal legislation as well as some other rates that the City can continue to regulate. These proposed new rates affect tier one service and tier two service. The third amendment deals with institutional networks. The institutions have been placed in A, B and C categories with different rates. Mr. Marier asked the reason for the rate increase. Mr. Ayotte said federal legislation is deregulating cable rates by the end of 1986. Group W is asking that they be allowed to imple- ment the new rates now. Also they have experienced higher than anticipated construction costs and lower penetration, or less customers than planned. Mr. Reinert asked if federal legislation is going to supercede whatever this City does in the area why is/the City going through this now. Mr. Ayotte said the federal law allows a two year grandfather provision. So if Group W is going to be allowed to charge the higher installation rate and higher rate for tier II they can only do this with the City's blessing. If the City does not agree these two rates cannot be increased.