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Mounds View City Council February 14,2011 <br /> • Regular Meeting Page 3 <br /> Comcast indicating they would like to move forward with the renewal process. The current cable <br /> commission renewal is set to expire in October of 2013. The Resolution before the Council will <br /> provide Comcast with the knowledge that they have the right to negotiate on the City's behalf. <br /> All member cities would need to approve this document. Staff recommends approval of the <br /> Resolution. <br /> Rick Montour, Cable Commission member, encouraged the Council's support and reviewed the <br /> City's within the Commission that already approved the Resolution. <br /> Mayor Flaherty questioned if this was a continuation of the previous agreement. Steve Gazetta, <br /> North Suburban Cable Commission, indicated the Resolution was not an extension but a new <br /> agreement with Comcast. He explained the Commission would begin negotiating terms for the <br /> 10 member cities. <br /> Mayor Flaherty asked what changes would be expected through the new agreement. Mr. Gazetta <br /> stated cable television services would be provided, but there would be no guarantee of telephone <br /> or internet services. The FCC has ordered new requirements for cable providers and franchise <br /> fees. The Commission was aware of these new limits. He further reviewed the negotiation and <br /> contracting process with the Council and encouraged the City of Mounds View to remain united <br /> with the Commission through this process. <br /> • Councilmember Stigney inquired if the 5% franchise fee would be an issue for Comcast. Mr. <br /> Gazetta stated the 5% was not the issue, more so the gross or net revenues from which this <br /> percentage was taken. He explained the current contract was based on gross revenues. <br /> Councilmember Mueller questioned the term length for this contract and how the term would be <br /> negotiated. Mr. Gazetta stated the term of the contract would be negotiated with Comcast and <br /> would depend on the commitment that Comcast is willing to make to the franchise term. In some <br /> cases there would be a ten year commitment and others are five years. <br /> Mayor Flaherty asked how the negotiated contract with Comcast affected the residents of <br /> Mounds View. Finance Director Beer stated residents would see a 5% franchise fee written into <br /> their billing statements, along with a $3.50 peg fee. These 5% franchise fee funds were then <br /> returned to the City funding a cable productions position for the City. The peg fees were passed <br /> along to the Commission. <br /> Commissioner Gunn inquired if free local channel hookup would be available through Comcast <br /> in the new contract. Mr. Montour stated the universal service would be negotiated. If all <br /> communities felt strongly about this issue,it would be conveyed to Comcast. <br /> Councilmember Stigney questioned if Comcast was collecting 5% for cable, telephone and <br /> internet. Mr. Montour stated at one time, Comcast was collecting for internet services, but <br /> regulations have changed and internet services were now viewed as informational. <br /> 411 Councilmember Mueller thanked the gentleman for their efforts on the negotiations that would <br />