07-08-2013 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ' ORONO CITY COUNCIL MEETING Monday,July 8,2013 '7:00 o'clock p.m. (9. CABLE TELEVISION FRANCHISE ORDINANCE NO. 110, Continued) McMillan stated once the agreement is approved,the City will start working on programming. McMillan noted the City will still be a member of the LMCC until the end of the year and that the City Council meetings will be taped by them until that time. McMillan noted the agreement with Mediacom starts on January 1,2014, and that the City will receive its first payment in April of 2014. If the City needs to acquire equipment, it will be able to use the grant money that Mediacom has offered. McMillan stated the City has a lot of options and that the Council will want to look at all of them very thoroughly. Levang moved,Printup seconded,to adopt ORDINANCE NO. 110,an Ordinance Granting a Franchise to Mediacom Minnesota,LLC,to Construct,Operate,and Maintain a Cable System in the City of Orono,Minnesota; Setting Forth Conditions Accompanying the Grant of the Franchise; Providing for Regulation and Use of the System; and Prescribing Penalties for the Violation of its Provisions. VOTE: Ayes 5,Nays 0. McMillan noted she has drafted a letter to the LMCC listing the reasons why Orono wants its own franchise. McMillan stated there are basically three reasons for the change and they include the complete build-out of the remaining cable areas and Orono retaining control of the income received from the franchise and PEG fees, which will be used in the best interests of the City. McMillan indicated in the past the City has had little control over how the fees have been spent. McMillan stated the third reason contained in the letter is the fact that the LMCC business model is outdated, expensive and bureaucratic. McMillan stated the City found it difficult to provide input and got the impression that the City's comments were not being heard. The LMCC did not see the difficulties Orono had three years ago with the lack of build out and instead began discussions about installing an expensive fiber optic network that the City did not want. McMillan stated the City's fees were used to study that project when they could have been allocated to the build-out. McMillan indicated in the last paragraph the City would still like to work with the LMCC if the LMCC decides that they want to provide Orono with an agreement similar to what they have with Mound. If the LMCC is not interested in working with the City, McMillan indicated she will be submitting a formal letter to withdraw. McMillan stated another reason for the letter is to inform the other member cities of Orono's decision. Bremer stated as the letter is currently drafted, she would not be in favor of it. Bremer stated the first two reasons outlined in the letter are why she supported the agreement, but that the third point might give the impression to the LMCC that Orono has an interest in continuing the conversation. Bremer indicated she does not have first-hand knowledge of the LMCC's business model but that she does not feel their business model has much to do with the first two points. Bremer noted the City now has an agreement directly with Mediacom, and if the City is going to cancel its arrangement with the LMCC, the letter should reference specifically whatever the City needs to reference in order to accomplish that. Bremer asked whether the City Attorney has reviewed the letter. Mattick indicated he did review the letter and that he views the letter more as a policy statement of why the City is leaving the LMCC. Mattick stated he also reads the letter as saying that if the LMCC decides to change how they do business and offer a service provider mechanism, Orono may stay in the group. Page 12 of 13