City Council Minutes 2014 03 04 - Laserfiche WebLink

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City Council Meeting Minutes March 4, 2014 Page 4 of 21 Public Relations Manager Muth explained the City is currently working under a one-year extension of a seven-year Cable Franchise Agreement with Comcast Cable. The existing agreement was signed in 2006 and is set to expire on April 11, 2014. A proposed franchise agreement will not be ready for City Council consideration before the existing one expires. Staff recommends a six-month extension of the existing franchise to allow the City and Comcast time to complete franchise negotiations. She stated Mayor Pro Tern Dalton had been updating Council and asked him to explain the items they are working on with Comcast. Mayor Pro Tem Dalton stated the issues the City's negotiating team hopes to address include: A customer service center in Louisville; improved and more detailed reporting by Comcast; more clearly defining what qualifies as a breach of the franchise and the Customer Service Standards; and revisions to the Customer Service Standards to better suit Louisville customers. They propose to canvass the two satellite providers and if 15% of households in Louisville are served by them, there would be no point in requesting the FCC determination of effective competition. PUBLIC COMMENT Charles Donnelly, 2366 Senator Court, Louisville, CO inquired about the franchise fees the City receives from Comcast. Public Relations Manager Muth explained the franchise fee is 3% and each household pays $0.50 for PEG fees. Mr. Donnelly inquired where the funds are deposited and the total amount per year. Public Relations Manager Muth explained the funds from the franchise fee total approximately $250,000 per year and are deposited into the general fund. Alan Sobel, 1408 Kennedy, Louisville, CO stated from his perception the information the City provided to the citizens has a do-nothing clause when it says Federal Law prohibits the city from regulating broadband issues. He stated this information is inaccurate and misleading and does not represent the interest of Louisville citizens. He stated the prices of packages could be regulated. He felt the City was using 9- year old information concerning effective competition and urged the City to open conversation on this matter. He felt the customer service standards are FCC regulations and could be implemented locally and strengthened locally. He explained Comcast posts a bond, which the City can access when there is a violation of the Franchise Agreement. He stated the Internet is a public utility and should be a part of the franchise agreement. COUNCIL COMMENTS Mayor Pro Tem Dalton addressed effective competition and explained they will canvass the satellite providers to determine whether there is a basis for pursuing the formal FCC process for a finding of effective competition. The last finding of effective competition was pursued by Comcast. If the City pursues the formal FCC process, it will be an expensive process and the cost will be borne by the City. He noted there has been