HomeMy WebLinkAbout12-10-19842324
Agenda
Item
A-1
E-1
RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL
CITY OF ROCHESTER, MINNESOTA
Special Meeting No. 20 - December 10, 1984
President Postier called the Special Meeting to order at 4:00 P.M.
the said meeting being held in Room 4 of City Hall. Present:
President Postier, Aldermen Allen, Bluhm, Duffy, Powers, Solinger
and Strain. Absent: None.
The call ofthe Special meeting was read by President Postier, the
same being called for the consideration of the amendment to the Cabl
Television Franchise Ordinance, and any other business the Council
may deem proper.
Bob Loos of Group "W" Cable TV was present and wished to be heard,
upon consent of the Council, Mr. Loos told the Council that as of
October 30, 1984, Congress deregulated the rate structure in
Franchises governing Cable TV in the United States. The Cable
companies would be able to raise the rates a maximum of 5% each
year for a two year period. Mr. Loos said that this only applies to
the lowest ti.er of a cable service. He stated that he wishes to
implement this in the City of Rochester and raise the rates 5% over
the next two years. Alderman Bluhm questioned if this rate is necessa
when only one person or one business is in the City of Rochester. Mr.
Loos stated that cable has competitors even though. another franchise
not operating in a.-City::r He explained that the dishes, home VCR's
are an example of what people use in place of cable. So they really
are in competition. Alderman Strain wondered if the City or State
could have more than one system operate in a City. Mr. Loos stated
that he knows of only a couple of states that have more than one
system in a City.
Mr. Loos also stated that when they agreed upon the basic rate for
the first tier of cabl-e, they expected to get a 24 news service
and another channel that was included in the franchise. These two
services (free) went broke and Group "W" had to subscribe to the
two they have at present. This increased their expenses 60¢ beyond
the original price of negotiation.
Mr. Fred Suhler, City Attorney stated that this change in law came
about suddenly and Mr. Bob Loos stated the new Federal Regulations
were adopted recently and they can pursue this almost immediately
( The increase in rates ). Mr. Suhler stated that this increase
can be done if the Franchise does not have a "frozen" rate in the
current Franchise Ordinance. Just what constitutes language to
indicate a "frozen" rate would be left up to the attorney on both
sides to decide. Mr. Suhler cannot guarantee or recommend the out
if this language is changed in our franchise, but he feels that
the Council can maintain the rights to govern the rates with this
change.
President Postier stated that this is a me.thod of holding in for the
next two years, by having control on the cable rates and not have th
increased without City approval.
1
RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 2.1.325
CITY OF ROCHESTER, MINNESOTA
Special Meeting No. 20 - December 10, 1984
Agenda
Item
E-1 Gary Neuman, Assistant City Administrator,and member of the Cable
Commission stated that the majority,of the cable companies in the
State have asked for the 5% increase.
Mayor Hazama stated that on behalf of the League of Minnesota Cities
and the Conference of Mayor's they felt this regulation was a
compromise when congress finally adopted the regulation.
Having no more discussion, Powers moved, Allen second to instruct
the City Attorney to prepare. an Ordinance on the following language:
An Ordinance relating to Cable Television clarifying certain
ambiguous language contained in Section 17 of Ordinance No. 2307.
Upon Roll call vote, Aldermen Allen,,Duffy, Powers, Strain and
President Postier voted aye. Ayes (5), Alderman Bluhm and Solinger
voted nay. Nays (2). Motion carried.
F-1 An Ordinance Relating to Cable Television; Clarifying certain
Ambiguous Language contained in Section 17 of Ordinance 2307
wasgiven its first reading. Allen moved, Strain second to suspend
the rules and give the Ordinance a second reading. Upon Roll call
vote, Aldermen Allen, Bluhm, Duffy, Powers, Solinger and Strain and
President Postier voted aye. Ayes (7), Nays (0). Motion carried and
the Ordinance was read for the second time. Strain moved, Allen
second to adopt the Ordinance as read. Ayes (6), Nays (1). Alderman
Solinger voted nay. Motion carried and the Ordinance was adopted.
Having no further business, Strain moved, Powers second to adjourn
the meeting. Ayes (7), Nays (0). Motion carried.
Ci ty Clerk