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Mounds View City Council June 9, 2014 <br />Regular Meeting Page 5 <br /> <br />current PEG fees were at $4.15 per month. She reported that under federal law Comcast cannot 1 <br />be required to pay operating expenses. However, capital expenses can be required to be covered 2 <br />by Comcast at CTV and at the member cities. She indicated Comcast came in at a significantly 3 <br />lower amount for equipment replacement than was estimated by NSCC. 4 <br /> 5 <br />Mayor Flaherty inquired what Comcast had proposed for PEG fees in the new contract. Ms. 6 <br />Wilson stated Comcast was proposing to have the monthly PEG fees be 44 cents. 7 <br /> 8 <br />Mayor Flaherty asked what the 5% franchise fee covered. Ms. Wilson explained that this fee was 9 <br />passed along to member cities and a small portion was contributed to the NSCC budget. These 10 <br />funds could be used by member cities for cable equipment, cable staff and the production of City 11 <br />meetings. 12 <br /> 13 <br />Council Member Hull questioned if any other member cities had not renewed the proposed cable 14 <br />franchise. Ms. Wilson reported Lauderdale and St. Anthony have already preliminarily denied 15 <br />the cable franchise. 16 <br /> 17 <br />Council Member Meehlhause requested further information on the non-data network fees. Ms. 18 <br />Wilson stated public institutions (schools, libraries and City Halls) were currently allowed free 19 <br />access to the Comcast network and could transmit local data back and forth. She indicated the 20 <br />proposed Comcast cable franchise would eliminate this free access to the local institutional 21 <br />network and each public institution would be charged $1,675.80 per month. 22 <br /> 23 <br />Council Member Meehlhause questioned who owned the local institutional network. Ms. Wilson 24 <br />reported that Comcast technically owns the network and NSCC has access to the six fibers. She 25 <br />stated a managed services proposal has been discussed with Comcast, but has yet to be 26 <br />developed. 27 <br /> 28 <br />Mayor Flaherty reviewed the three sticking points at this time as being the reduced number of 29 <br />local channels, the proposed monthly connection fees for institutional uses and the PEG fees. 30 <br /> 31 <br />Mike Logan, Comcast, thanked the Council for their time and expressed his interest in finding a 32 <br />resolution to this matter. He commented the Council was voting to not renew the formal cable 33 <br />franchise this evening, which was a legal course of action. He stated Comcast was prepared to 34 <br />continue down this course and believed it had enough facts to take this matter to Federal Court. 35 <br /> 36 <br />Mr. Logan encouraged the Council to further review the NSCC’s transparency and inter-37 <br />workings. He commented all local funding would end in November, if the contract was not 38 <br />renewed. He reported the I-NET connectivity issue and number of cable channels should be able 39 <br />to be resolved informally, but stated the PEG fees were extremely misaligned. He discussed how 40 <br />operating fees should be covered outside of PEG fees. 41 <br /> 42 <br />Mayor Flaherty questioned how the cable franchise would proceed if Mounds View voted to not 43 <br />renew. Ms. Logan discussed the formal process if all other member cities were to not renew. He 44 <br />indicated that informal discussions would continue between NSCC and Comcast. 45