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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, March 11, 2013 <br />7:00 o’clock p.m. <br />_____________________________________________________________________________________ <br />  <br />Page 7 of 27  <br />  <br />(4. LMCC UPDATE, Continued) <br /> <br />Koenecke stated when the company first started out, all of the cities on the Lake Minnetonka system got <br />all of the channels for the past 30 years. The LMCC did that in an attempt to attract new members. As a <br />result, the LMCC got three new members who joined. What concerns us now is losing cities. The <br />LMCC feels the programming is important to the council and to the school district. People are watching <br />Orono School District programming. The LMCC does not want to lose Orono and they do not want to <br />lose the value that this programming has to the citizens. Koenecke indicated the LMCC has also <br />approached Wayzata, Chanhassen and Waconia over the years to join LMCC but have not been <br />successful. <br /> <br />Anderson asked if any consideration has been given to adopting a different business model to include <br />perhaps a tiered approach for participation. <br /> <br />Koenecke indicated they have not. Koenecke asked if she is speaking about the services being provided <br />or a business model. <br /> <br />Anderson stated she is looking more at the future business model of the LMCC and that perhaps it could <br />be more of a tiered approach where the cities can take advantage of the programming while at the same <br />time contracting with the LMCC for other services. <br /> <br />Koenecke stated one of the problems they have encountered is that they have a usage agreement with <br />Mound, which has been a bone of contention over the years. Mound started out with the LMCC because <br />their studio was closing and so they chose to give the LMCC a $60,000 contribution in equipment in <br />exchange for certain services. At that time the attorneys worked on a formula whereby Mound would pay <br />a higher PEG fee but a lower franchise fee. As a result, Mound received most of the same services <br />through a per subscriber formula. <br /> <br />Koenecke indicated she is not sure if the commission would be willing to consider this, but if the City <br />wanted to keep some of their franchise fees, the model the LMCC could follow would be the Mound <br />model as long as the city agrees to a higher PEG fee. As far as tiers go, Koenecke indicated she is not <br />sure whether the commission is interested in that. <br /> <br />Koenecke stated over the years the LMCC has had usage agreements with different cities and that she is <br />not sure how much of a problem that will create in the future. Koenecke noted the agreements have <br />created issues for the LMCC in the past and that they would like to treat everyone in a fair way. <br /> <br />McMillan asked if the school districts contribute anything for the programming. <br /> <br />Koenecke indicated they do not and that the only thing the school districts provide at the present time is <br />volunteers. The LMCC has a small staff and a great deal of the work gets done by volunteers. Volunteers <br />tape sporting events, concerts, and other school events. The LMCC did have a focus group for the <br />schools and a discussion was had relating to interactive television, live TV, and other possible options. <br />The dark fibers will be utilized for those events as well as live meetings from city halls. <br /> <br />Levang asked if it is a consideration to have an agreement with the school districts to contribute <br />financially. <br /> <br />Item #02 - CC Agenda - 03/25/2013 <br />Approval of Council Minutes 03/11/2013 [Page 7 of 27]