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City Council Regular Meeting Minutes • October 10, 2000 Page 4 1 Ms. Wilson stated that several companies that would like for cable franchises to encourage cable 2 competition have approached the cities in the metro area. She continued by stating that cities 3 have long.been granting permission.to cable companies'to have a franchise. The rules were 4 established by the FCC and they have been modified over the past 30 years. There is a section of 5 the State Code that also governs some of the cable regulation. 6 Most of the metropolitan area was franchised in the early 1980's and at that time. Generally 7 speaking, competition was such then that once a cable company was selected, the other potential 8 companies moved on. This is because it was not economic feasible for more than one company 9 to compete for business. 10 The change now is that more companies are approaching the North Suburban Cable Commission 11 to have a franchise. This is due, in part, to the Internet connections, better phone lines, among 12 other things. Ms. Wilson stated that typically cable companies have always felt more a part of 13 the entertainment business as opposed to the.communication business. But that vision is 14 changing. 15 Ms. Wilson continued by explaining that federal and state policy typically has been to foster 16 competition so that prices will stabilize.. Ms. Wilson believes that competition may encourage �7, better customer service and better connections. The downside is that there will'be more right of 8 way.clutter and construction. Additional green boxes would be installed 19 Ms. Wilson stated it would probably be two to five years before the competition actually 20 materializes. Ms. Wilson reviewed for the Council the qualifications and requirements for 21 potential cable companies submitting an application for a franchise. 22 Ms. Wilson reviewed for the Council the backgrounds of the two companies that have 23 approached the North Suburban Cable Commission and then recommended that the City approve 24 the franchises for both companies. In this respect, competition would be encouraged and the 25 residents and economy will determine if one or both companies survive in the competition. 26 Various questions from the Councilmembers to Ms. Wilson were fielded. Ms. Wilson noted that 27 many complaints are coming from residents.to the North Suburban Cable Commission that there 28 are not enough choices for cable companies. 29 XI. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 30 City Manager Michael Morrison reported on the following: 31 1. Morrison stated that, several months ago, the City asked Dick Krier, Midwest Planning & 32 Design, to discuss The Hitching Post. Morrison explained that the City needs to finish 26,000 of 33 open space that_the City purchased last year. Mr. Krier prepared a cost estimate, which totaled 4 about$85,000. This did not include NSP's estimates of$45,000.