02/10/1986 Council Minutes - Laserfiche WebLink

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1 1 1 271 COUNCIL MEETING February 10, 1986 Page Two Being considered this evening were Ordinance No. 11 -85, which would amend Articles VI, Exhibit A (Rates), and Article III of Appendix I regarding the franchise agreement between Lino Lakes and Group W Cable (Appendix I of the Lino Lakes City Code); and Resolution No. 85 -25 adopting cable communications ordinance amendment Agreement No. 1. Mr. Bisel voiced his concern that one of results of passage of Ordinance No. 11 -85 would be a rate to customers of $12.95. for "Tier II" service rather than the rate of $10.95 for that same service which is what the Council was quoted and considered in earlier stages of working with Group W. Ms. Durante explained that these rates have been in the process of negotiation with the cable commission for some time and that the $12.95 rate which is what Lino Lakes customers are being offered was a compromise from $14.95 which Group W originally requested. The Cable Com- mission has agreed to $12.95 along with other compromises within the system. She also explained that the $12.95 rate would be for Tier II service only and that service for the movie channels such as HBO, Showtime, Disney, etc. would be in addition to the $12.95 rate. Ms. Durante explained that the rates being offered presently are subject to change in January of 1987 at which time rates for cable service will be deregulated. Mr. Kolessar said that the cable commission felt it appropriate to stabilize the rate now, before Lino Lakes customers come on line, in order to avoid a change at the time of deregulation. Ms. Durante, in response to further questions from the Council stated that 1) Lino Lakes residents have been marketed at the $12.95 rate - no one has been solicited with the $10.95 rate, 2) the sales staff has performance standards which must be met to assure efficient marketing of cable service, 3) installation of the actual cables is done above ground as a cost saving unless the other utilities in the neighborhood are underground, in which case the franchise requires that the cable utility conform to the existing utility installation, 4) interested Lino Lakes resi- dents can contact Group W, the City Hall office or the Cable Commission for any information with regard to cable service. Mayor Benson stated that the Council should keep in mind that cable service is a luxury which is selected by the residents, unlike gas and electric service which are necessities, for which the Council has no power to approve rates. MOTION: Mr. Reinert moved, in light of the fact that deregulation is in the very near future, that Resolution 85 -25 and Ordinance 11 -85 be adopted. This motion died for lack of a second. MOTION: Mr. Bisel moved to table this issue until the next meeting of the Council. Mr. Marier seconded the motion. Motion carried.