Agenda Packets - 2011/03/14 - Laserfiche WebLink

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Mounds View City Council February 14, 2011 Regular Meeting Page 3 Comcast indicating they would like to move forward with the renewal process. The current cable 1 commission renewal is set to expire in October of 2013. The Resolution before the Council will 2 provide Comcast with the knowledge that they have the right to negotiate on the City’s behalf. 3 All member cities would need to approve this document. Staff recommends approval of the 4 Resolution. 5 6 Rick Montour, Cable Commission member, encouraged the Council’s support and reviewed the 7 City’s within the Commission that already approved the Resolution. 8 9 Mayor Flaherty questioned if this was a continuation of the previous agreement. Steve Gazetta, 10 North Suburban Cable Commission, indicated the Resolution was not an extension but a new 11 agreement with Comcast. He explained the Commission would begin negotiating terms for the 12 10 member cities. 13 14 Mayor Flaherty asked what changes would be expected through the new agreement. Mr. Gazetta 15 stated cable television services would be provided, but there would be no guarantee of telephone 16 or internet services. The FCC has ordered new requirements for cable providers and franchise 17 fees. The Commission was aware of these new limits. He further reviewed the negotiation and 18 contracting process with the Council and encouraged the City of Mounds View to remain united 19 with the Commission through this process. 20 21 Councilmember Stigney inquired if the 5% franchise fee would be an issue for Comcast. Mr. 22 Gazetta stated the 5% was not the issue, more so the gross or net revenues from which this 23 percentage was taken. He explained the current contract was based on gross revenues. 24 25 Councilmember Mueller questioned the term length for this contract and how the term would be 26 negotiated. Mr. Gazetta stated the term of the contract would be negotiated with Comcast and 27 would depend on the commitment that Comcast is willing to make to the franchise term. In some 28 cases there would be a ten year commitment and others are five years. 29 30 Mayor Flaherty asked how the negotiated contract with Comcast affected the residents of 31 Mounds View. Finance Director Beer stated residents would see a 5% franchise fee written into 32 their billing statements, along with a $3.50 peg fee. These 5% franchise fee funds were then 33 returned to the City funding a cable productions position for the City. The peg fees were passed 34 along to the Commission. 35 36 Commissioner Gunn inquired if free local channel hookup would be available through Comcast 37 in the new contract. Mr. Montour stated the universal service would be negotiated. If all 38 communities felt strongly about this issue, it would be conveyed to Comcast. 39 40 Councilmember Stigney questioned if Comcast was collecting 5% for cable, telephone and 41 internet. Mr. Montour stated at one time, Comcast was collecting for internet services, but 42 regulations have changed and internet services were now viewed as informational. 43 44 Councilmember Mueller thanked the gentleman for their efforts on the negotiations that would 45