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Regular Council Meeting <br /> April 24, 1990 <br /> page 9 <br /> • 1 type of programming and that the company had not allocated the resources <br /> 3 for it. <br /> 4 The Commission also put together a model for community programming with the <br /> 5 assistance of a cable consultant and conducted an in-depth analysis of the <br /> 6 performance of North Central in the community programming area . This analysis <br /> 7 was to determine the level of compliance with the existing Franchise Ordinance. <br /> 8 <br /> 9 Creighton advised that an audit was performed of the expenditures of the cable <br /> 10 company related to community programming. The table company was informed it <br /> 11 was in violation of the Franchise Ordinance regarding the expenditure of com- <br /> 12 munity access funds in an amount of nearly $400,000 over a period of. years. <br /> 13 The cable company responded with what the Cable Company had anticipated if <br /> 14 it were to levy fines against the cable company, ; that being, litigation. <br /> 15 <br /> 16 After reviewing its options, the Cable Commission chose to negotiate the <br /> 17 turning over of the community programming function by the cable company to <br /> 18 the Cable Commission or its designee. <br /> 19 <br /> 20 Creighton advised that among the items realized from the negotiations are <br /> 21 the following: twelve channels will be made available for government, <br /> 22 education and public access use; the cable company will transfer equipment , <br /> �3 valued in excess of $1 ,000,000 to the Commission; the cable company will <br /> 24 be responsible for the maintenance, repair and technical performance of the <br /> • �5 system; capital. improvement funding will be provided as will operating funds; <br /> 26 studio and office space is available on a, sublease basis; the Commission will <br /> �7 be reimbursed for expenses during the -transfer up to $20,000, and the cable <br /> 28 company will expend up to $2,500 for logo changes and ads to promote com- <br /> �9 munity programming. <br /> .30 <br /> 31 The Cable Commission will reduce the payment of performance bonds currently <br /> 32 fn place to $50,000 naming all ten cities. <br /> 33 <br /> 34 Councilmember Marks inquired if Creighton saw community access being viewed <br /> 35 as a real big opportunity. Bill Bruce responded that he is seeing a trend <br /> 36 whereby people are moving away from the pay-per-view television. The focus <br /> 37 appears to be moving in the direction of viewing local activities whereby <br /> 38 people can see their children, local athletics, etc. . Creighton agreed and <br /> 39 stated many opportunities are being missed by not using .community .access <br /> 40 more. <br /> 42 Bruce stated he is employed on a part time basis by the City of Little Canada <br /> 43 to cover local events. The City. purchased a camcorder and his salary comes <br /> 44 from franchise fees. He noted that there has been very positive feedback <br /> 45 to the programs on local access in Little Canada. <br /> 46 <br /> 47 Creighton advised that the agreement previously discussed is in no way <br /> 48 related to franchise fees. Each City has its own franchise and franchise <br /> 49 fees are earmarked for operation of the Commission. <br /> • 50 1 <br />