HomeMy WebLinkAbout02-25-2013 Council Work Session Minutes MINUTES OF THE
ORONO CITY COUNCIL WORK SESSION
Monday, February 25, 2013
5:30 p.m.
Present: Mayor Lili McMillan, Council Members Kristi Anderson, Cynthia Bremer, Lizz Levang and
Aaron Printup; representing Staff were City Administrator Jessica Loftus and Assistant City
Administrator for Long Term Strategy Mike Gaffron.
1. Mediacom Presentation
Bill Jensen, Regional Vice President of Mediacom, gave a presentation on the benefits of directly
franchising cable with Mediacom.
Jensen reported Mediacom was founded in 1996 and has been rated by the FCC as a top 5 internet
provider. He stated that he primarily works with individual cities and the LMCC group of cities is rare in
his field.
Jensen presented that franchises encompass video only (no phone or internet) and the city can have
more than one television operator. In Orono, cable passes 2,766 homes where 1,299 order
cable/video, 1,397 order internet and 508 order phone. For video that is just below 5G% penetration
which is high for LMCC cities. He noted 5% (maximum by law) of the video portion of our constituents
bills are passed thru to LMCC as a franchise fee. The PEG fee also paid to the LMCC is set at$1.21 per
month. Pass through fees are paid quarterly to the LMCC/cities. He stated Mound sends their PEG fees
along to the LMCC while Chanhassen and Wayzata retain both their franchise and PEG fees.
Jensen stated franchise agreements are typically tailored to the needs of a single community, such as
build out in Orono; not to a group of communities who may not have the same goals. He noted the
current LMCC contract provides service for areas with 30 homes per mile.
Mr.Jensen explained cable complaints to the LMCC were less than 50 in 2012 and he encouraged the
Council to contact other franchised cities of Chanhassen, Wayzata, Mound, Waconia and Howard Lake
to inquire about the number of customer complaints they receive about Mediacom. Jensen estimated
Orono would receive S complaints a year from residents who are not satisfied with the service or
solution offered by Mediacom.
Jensen noted the video franchise agreement with Mediacom could be 5, 10 or 15 years long. He stated
the benefits to franchising directly with Mediacom is there is no middle man or agency, the buck stops
with them,the city would receive the franchise and PEG fees directly (estimated at$100,000 per year),
and Orono could receive accelerated build out. Jensen stated an incentive for Orono is that Mediacom
would agree to 5 miles of build out per year for the next three years, starting in 2013. Thereafter, build
out would be a 50:50 split of costs. Jensen estimated every mile of build out costs $24,000. He noted
build out includes only 250 feet of line from the road to homes, so longer connections would be an extra
cost to the resident. Mr.Jensen stated more recent contracts are providing service for areas with 20
homes per mile.
2. Police Department Facilities
Police Chief Correy Farniok discussed the department's facilities. He noted the purchase of security
cameras will be placed on an upcoming agenda. Discussion ensued regarding the building project.
There was consensus that a space needs assessment should be completed and that the Chief should
contact firms for proposals. The Council also requested a tour of the department at the next work
session.
The meeting closed at 6:45 p.m.
ATT E ST:
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Jess a Loftus, ity A ini trator Lili Tod McMillan, Mayor