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HomeMy WebLinkAboutTelecommunications Board - Minutes - 12/11/1996TELECOMMUNICATIONS BOARD MEETING MINUTES December 11, 1996 7:00 PM Council Liaison: Chris Kneeland Staff Liaison: Liz Stroh, Michael Gitter Chairperson: Phil Wadas Phone: (W) (H) Presiding Chair: Phil Wadas Phone: (W) ) Members Present: Greg Smith, Larry Rowland, Ernie Powell, Tom Maher, Phil Wadas, Howard Lowell Members Absent: Barbara Hain City Staff: Liz Stroh, Carson Hamlin TCI Staff: Kathy Stewart Other City Staff: Eric Dahlgren, and Rich Shannon of the City Electric Utility Meeting was called to order at 7:05 PM Meeting Minutes Larry Rowland pointed out that the minutes template needed to be updated to change the chair's name from his to Phil Wadas. Tom Maher asked to strike the sentence "Maher said that the issue is 'what is the City out if TCI does not rebuild'." The minutes were unanimously approved as corrected. TCI Update Kathy Stewart introduced herself. She is replacing Bob Carnahan as general manager at TCI of Fort Collins. She currently is manager of the TCI Greeley office. Kathy briefly explained that TCI had laid off 2500 employees in both field and management positions, reducing their work force 6.5%. The purpose was to improve TCI's financial status, lower debt and improve competitive position. TCI decided to combine the system manager positions from Greeley and Fort Collins and her role is to ensure that the terms of the franchise are being met. Public access programming will continue, as dictated by the franchise, including Take One. TCI staff is investigating how to do some community programming and are currently exploring a "sports page" approach focusing on the 3 local high schools. She offered Greeley as an example of a system where local programming has been built up f E over the last few years. Her goal is to combine community needs and still maintain a return on investment for the company. Programming changes were explained. Kathy reported TCI had been approached by 2 stations under the FCC's "must carry" provision. Larry Rowland expressed concern that both the Channel 14 news and the Cheyenne broadcast station have been dropped, both sources of local news. Ms. Stewart's responded that TCI will be focusing on improving cable service, not on production. Programming decisions are usually made at the corporate level, and decision to drop WGN, for example, had to do with loss of some of their sports broadcasts. She suggested that much of the programming airing over WGN is also presented on other channels being carried by TCI. There is currently a court case being argued regarding the must carry rules and it is anticipated that decision will set direction regarding how cable companies will be required to deal with broadcast station's desire to be carried over the cable systems. Larry Rowland stated concern over companies with "semi -monopolies" not being responsive to local needs and public good. Ms. Stewart explained that TCI sells A-B switches that can be used by customers who want to receive the Cheyenne station using a roof top antenna. Carson Hamlin raised the issue regarding the number of complaints the City is receiving regarding the programming changes, the rate increases, and the loss of the local news show. Liz Stroh estimated that about 25-30 phone calls had been received. Board members wondered if there were any viewership statistics available upon which the programming decisions were made. Ms. Stewart explained that no statistics were immediately available that measured viewership of the various programming. She reiterated that it is her intent to build a news program similar to the operation in Greeley that will meet the needs of the surrounding community. Ernie Powell suggested that TCI not focus just on sports subjects involving the local high schools, but open up some of the possibilities to include scholastic achievement as well. Larry Rowland questioned if TCI was giving its "best effort" to providing programming of local interest, and maintaining a diverse line up of programs, or if their sole interest was maximizing profits. Rich Shannon asked about joint trenching. He had been informed that TCI no longer wanted to participate in joint trenching with Light and Power. Ms. Stewart indicated that TCI would continue to work with UP in this area, and that the misunderstanding might have been due to some year end processes. Rate changes: A citizen, Bob Gifford, spoke to the rate increases coupled with the loss of the local news program. He believes a city this size deserves more in depth news reporting. Ms Stewart responded that local involvement is important to TCI, but that they need to focus on quality cable service. Tom Maher pointed out that TCI's Prime Star is in competition with the cable arm of TCI and questioned how this internal competition could be good for the consumer. Ms. Stewart informed the board that Prime Star is now a separate company. Customers who cannot get cable hookups are referred to Prime star as an option. Ms. Stewart went on to explain the January rate increase is connected to inflation adjustments and programming cost increases. The rates are determined based on computations made based on FCC requirements. TCI typically increases in January or February of each year. Larry Rowland requested that staff review rate regulation requirements. Liz Stroh reported that the City Attorney's office is researching the topic. Phil Wadas mentioned that TCI might gain some economies of scale if the Northern Colorado offices worked together to provide regional news. Costs could be spread to all participants. Discussion of request for franchise extension Ernie Powell asked if the City had an option to allow TCI to forego the upgrade. Liz Stroh explained that the franchise negotiations resulted in an agreement that was a package, with much give and take in many areas. She also noted that Federal Cable acts allowed cable companies to pass on to subscribers the costs of upgrades required by franchises. Mr. Gifford commented that passing upgrade costs on to public may drive subscriber rates too high and people will drop subscriptions. Ernie Powell noted the loss of the local aspect, and feels TCI is raising rates too rapidly. TCI knew of the requirements when they bought the company, and should not use general company financial situation to delay implementation of elements of the franchise. Tom Maher suggested the cost saving measures are being driven by corporate need rather than by poor financial return at the local company level. Larry Rowland encouraged Kathy Stewart to take these comments back to her managers. He explained TCI's reputation for lack of local attention and response is being evidenced here in Fort Collins and also commented that he believes TCI's presentation to City Council regarding the sale of Columbine to TCI misrepresented TCI's plans. Kathy Stewart pointed out that TCI has been able to keep up with the fast growth in Fort Collins. This has taken a lot of capital to meet this demand. • The board decided to proceed with discussion of TCI's request from 2 different approaches, one as if they were asking for an extension as allowed in the franchise and the other discussion relating to a request for modification. Larry Rowland began the discussion by commenting that he would be in favor of granting the extension if the reason fell within the guidelines outlined by the franchise agreement. He also commented that an additional performance bond should be attached to the granting of the extension to ensure TCI would honor the commitment they have regarding the upgrade. Tom Maher agreed and suggested that a technical plan also be part of the extension approval conditions. Phil Wadas noted that there has been significant progress in the digital compression technology. Larry Rowland made a motion to recommend extension of the upgrade requirements to 18 months, as per the franchise, and that an increased performance bond and technical plan submittal be part of the extension approval. Howard Lowell seconded the motion. Ernie Powell asked if the digital compression technology upgrade could be completed within the time frame allowed by the extension (2 '% years). Mr. Gifford wondered if at the end of the 2 % year extension, TCI could ask for another extension. Larry Rowland responded that they could only request to further modify the franchise. No additional extension would be allowed. Rich Shannon asked how long it would take to implement digital compression in Fort Collins. Kathy Stewart noted there were several TCI locations where the technology was being tested, and that she anticipated it would be launched in Greeley sometime in March of 1997. Larry Rowland asked Ms. Steward to provide demonstration showing what the quality of the picture would look like using this technology. Phil Wadas asked for a vote of the motion. Approval was unanimous. Tom Maher made a motion to recommend approval of a TCI modification request, Larry Rowland seconded for purposes of discussing the item. Larry Rowland commented that he would not support modification of the franchise unless the company could show a serious business case to support the request. Larry explained that any modification could be limited or expanded to include any portion of the franchise. His understanding of the federal requirements indicated the existing franchise would be in effect until any modifications were approved by Council. This requirement will encourage both parties to proceed with good faith negotiations. Larry made a motion to amend the previous motion to deny any modification request. Tom withdrew his previous motion in support of the new motion, and seconded Larry Rowland motion to deny modification. Phil Wadas would like information about what exactly they are proposing, what is planned and how it will benefit the Fort Collins service area. Howard Lowell moved to table the motion until more information could be obtained regarding Phil's questions. The motion was approved unanimously a motion was made by Phil Wadas to table discussion of the Telecommunication Ordinance until January. The motion was seconded by Greg Smith. Unanimous approval. Other Business Carson Hamlin brought up the interconnect between TCI and Loveland, explaining that the increase in Larimer County programming on Channel 27 has increased the need for this interconnect. Kathy Stewart noted she would look into the situation. Ernie Powell suggested sending a letter of appreciation to Bob Carnahan for his work with the board. Motion was seconded and unanimously approved. Howard moved to adjourn, seconded by Tom Maher. All approved. Meeting adjourned by Phil Wadas at 9:15 PM