Loading...
HomeMy WebLinkAboutMinutes_Special Meeting_02/05/1998~~ F rf yP ~ `P~a VILLAGE OF TEQUESTA ~~ Post Office BoY 3273 3~7 Tequesta I)ri~e $ ~~ o` 1'equest~A, Florida 33409-02?3 (>6ll ~?~-6200 ~ ~ \' 4o F61X: ~ 7~)l~ 7 % ~-~2n3 P,ch CO 1 VILLAGE OF TEQUESTA SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 5, 1998 • I. CALL TO ORDER AND ROLL CALL The Tequesta village Council held a special meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Thursday, February 5, 1998. The meeting was called to order at 7:02 P.M. by Mayor Elizabeth A. Schauer. A roll call was taken by Betty Laur, Recording Secretary. Councilmembers present were: Mayor Elizabeth A. Schauer, Vice Mayor Carl C. Hansen, Alexander W. Cameron, Joseph N. Capretta and Ron T. Mackail. Also in attendance were: village Manager Thomas G. Bradford, and Village Clerk Joann Manganiello. II. APPROVAL OF AGENDA Councilmember Cameron made a motion to approve the Agenda as submitted. vice Mayor Hansen seconded the motion. The vote on the motion was: Elizabeth A. Schauer - for Carl C. Hansen - for Alexander W. Cameron - for Joseph N. Capretta - for Ron T. Mackail - for • The motion was therefore passed and adopted and the Agenda was approved as submitted. Kecl'cled Puper • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 2 ------------------------------------------ III. COMMUNICATIONS FROM CITIZENS (NON-AGENDA ITEMS) There were no communications from citizens. IV. PUBLIC HEARING A) Adelphia Cable Franchise Renewal Request 1) Overview of the Franchise Renewal Process Village Manager Bradford explained that by letter received by the Village on November 15, 1996, Adelphia Cable formally requested the initiation of a franchise renewal with the Village on an informal basis. The applicable law relative to franchise renewal is the Cable Communications Policy Act of 1984 (1984 Cable Act), of which Section 626 sets forth the requirements for franchise renewal. Section 626 states in part that during the six- month period within the 36th month before the franchise expiration that the franchising authority may on its own initiative, and shall, at the request of the cable operator, commence proceedings which afford the public in the franchise area appropriate notice and participation for the following purposes (1) Identify the future cable- related community needs and Interests; and (2), Review the performance of the cable operator under the franchise during the then current franchise term. Although additional procedures are required by the 1984 Cable Act, it is the procedure for allowing public input which caught the attention of the Village Council when the franchise renewal process was initiated. The 1984 Cable Act allows for franchise renewal on an informal basis, preferred by both the village and Adelphia; • however, the village Council expressed a desire to conduct a public hearing under the formal • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 3 ------------------------------------------ procedures of the 1984 Cable Act to allow Tequesta's residents to speak to pertinent issues. Therefore, tonight's procedures were scheduled pursuant to informal procedures but would allow residents to still have input on the important issues of needs, interests, performance, and the proposed new franchise agreement. 2) Identification of Future Cable-Related Coannunity Needs and Interests Councilmember Mackail commented he could not recall any complaints against Adelphia since he had been a member of the Village Council; and hoped the public would provide feedback during this hearing. Councilmember Capretta reported that at the time of • the last franchise renewal he had been very concerned about the length of time it took to reach Adelphia personnel to report service problems. One of the representatives of the cable company had gone to a telephone at the village Hall during the hearing, called Adelphia, and it had taken 40 minutes for him to reach a representative. Councilmember Capretta reported that more operators had been added and complaints were no longer received. Councilmember Capretta discussed how many times the cable was out, and expressed the hope that fiber optics would improve that situation. Councilmember Capretta commented that particular channels were popular with the residents of the Village, with the History channel being number one and the Golf channel number two, and Adelphia had been particularly slow adding the History channel. Councilmember Capretta reported companies were beginning to offer different commercials for a particular time slot, targeted to particular age and demographic groups. Councilmember Capretta . suggested that Adelphia could be much more specific about programming in specified areas, such as in SPECIAL VILLAGE COUNCIL N$ETING MINUTES February 5, 1998 PAGE 4 ------------------------------------------ zip code 33469, to make available channels of particular interest to people in that area; commented that Adelphia had been very slow to find out the preferences of the residents; and expressed his opinion that if commercials could be targeted by age and demographic groups that the same could be done with programming. Vice Mayor Hansen referred to the highlights of the proposed franchise agreement listed in the handout and questioned whether those conditions would raise rates. village Manager Bradford responded that most of the highlighted items had appeared in franchise agreements in other Florida locations; that Adelphia had offered to upgrade the system within five years; that asking them to maintain a minimum of 50 channels was less than they now offered; and that after upgrading Adelphia would have the capability to telecast Village Council meetings. The village Manager explained that none of these items should raise rates and that a basic package would still be offered as an option to those who did not wish to pay extra for additional channels. Village Manager Bradford introduced Chuck Blaine, Director of Community Services for Adelphia Cable Company, and Mark Galloway, Regional Manager and a resident of Tequesta. Public Comments Peggy Verhoeven, Point Drive, stated she had been very happy with Adelphia and that they were providing a great variety of channels. Ed Resnick, Country Club Drive, expressed his opinion that Adelphia was doing a great job, that • he was pleased with the list of channels available, that he had not had many outages recently, and that • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 5 ------------------------------------------ the number of outages had been reduced over the years. Mr. Resnick stated he was fully satisfied. Joe Hall, Country Club Drive, stated he was very happy with the service and reliability of Adelphia but complained that the volume on commercials was much louder than the regular programming. Councilmember Cameron stated his belief that this practice was illegal under FCC regulations; Councilmember Capretta requested the number of decibels that Adelphia allowed the volume to increase on commercials. Councilmember Cameron advised he had written to the weather Channel regarding truncated versions of forecasts. • Mark Galloway, Regional Manager for Adelphia, explained that the cable company receives signals from a satellite or from an antenna and just rebroadcasts what they receive, and had no control over the louder volume during commercials; and that the Weather Channel received all its information from the National Weather Service. Mr. Galloway explained that since 1990 Tequesta's cable service had been fed with fiber optics from a signal at Ibis Country Club. Mr. Galloway commented that the volume for commercials was within FCC guidelines, and that all locally-produced commercials were now done digitally over fiber which minimized that problem. Mr. Galloway explained that in this region there were approximately 400,000 people to satisfy with programming, which was difficult, and the 36 channels offered ten years ago had been increased to 62. During the past year, Adelphia had increased service just north of the county line to 750 MHZ, or approximately 75 channels, which during the coming year would move down through • Tequesta and the Jupiter area. An additional 30 digital channels were sold separately, making • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 6 ------------------------------------------ approximately 90 channels available to residents just north of County Line Road at the present time. Councilmember Capretta discussed Direct TV, a competitor, and Adelphia's obnoxious commercials directed against them. Councilmember Capretta expressed his opinion that the more responsible Adelphia acted in providing what people want that the residents would be happier with their service. Councilmember Capretta discussed his video library, commented that he considered loud commercials a disgrace, and pointed out that one television manufacturer provided a set which would not allow volume to increase during commercials. Mr. Galloway likened the present cable service to an old string of Christmas tree lights where having • one bulb out caused the whole string to go out; and explained that in the new service each nodule would serve no more than 200 homes so that outages would affect fewer subscribers. Councilmember Capretta commented that during the upgrade process cable service was not interrupted for very long. Councilmember Cameron questioned how Adelphia picked the channels they would broadcast, to which Mr. Galloway responded Congress would have to deal with that in the future, and that the FCC had previously forced them to drop a la carte channels, but now were discussing adding a la carte channels. village Manager Bradford explained that the Village Council had previously identified the following items as "Future Cable-Related Community Needs and Interests" Gratis right-of-way permit application compliance • Universal service, particularl for commercial Y • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 7 ------------------------------------------ areas currently not served Due to the rapid changes in the telecommunications industry, a franchise agreement of a shorter term with a three-ten year duration Provision of a five-year capital improvement program indicating all renewal and replacement projects of the cable operator, to be updated on an annual basis Maximum competitive programming for customer satisfaction and franchise revenue enhancement Free CATV and Internet service for each • municipally-owned or leased public building Village Manager Bradford explained that the proposed agreement accomplished all of the above items except the five-year capital improvement program, which would have been more applicable with a 30-year contract; and staff had felt it would not be appropriate with a seven-year contract and the fact that Adelphia would be upgrading to 750 MHZ within 12 to 18 months. 3) Review of the Performance of Adelphia Cable Under the Franchise During the Current Franchise Term Councilmember Capretta recalled a survey which the Village Manager had conducted some time ago which had shown Adelphia to be competitive with other providers in the area. The village Manager commented that service is the key to performance, and that during the term of his • employment with the Village he had never received a complaint regarding Adelphia's service; and had • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 8 ------------------------------------------ received no quality of reception complaints since the 1990 installation of the fiber optics system. village Manager Bradford explained that whenever a service outage was experienced he received a letter from Mr. Galloway telling the length, location, and reason for each outage, and what had been done to fix the problem. Councilmember Capretta suggested a service index measuring total minutes lost times the number of customers in 1997 compared to those lost in 1998. 4. Review of Proposed New Franchise Agreement with Adelphia Cable village Manager Bradford explained that a new agreement had been negotiated with Adelphia's • Deputy General Counsel, and listed the highlights of that agreement: The Franchise term is for seven (7) years with Adelphia having a three (3) year renewal option upon substantial compliance with the material provisions of this Franchise. Adelphia is required to upgrade the system to a capacity of 750 MHZ within {5) years of the effective date of the franchise. (Village Manager Bradford explained that Adelphia was planning to complete this upgrade within 12-18 months.) Channel capacity shall be maintained at not less than fifty channels at all times. The village is provided with an access channel, if needed, subject to limitations. • Council meetings can be cablecast on a tape- delayed basis and, at the request of the . SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 9 ------------------------------------------ village, upon the completion of Adelphia's referenced system upgrade, Adelphia shall cablecast Village Council live, if the Village so requests. Payment of a franchise fee of 5~ of the company's gross revenues to be paid to the village of a quarterly basis. Currently, Tequesta's franchise fee is 6~ and paid on an annual basis. The 1996 Telecommunications Act limits franchise fees to 5~. Accordingly, Tequesta must comply with the same. Adelphia will provide free-of-charge cable service and Internet subscription service to each facility owned, operated, or leased by the Village. This is very beneficial to the operations of the Village particularly regarding the newly provided Internet Service. Payment of a transfer fee of $1,500 to Tequesta in the event Adelphia Cable is sold or transferred to another. This is to cover Tequesta's expenses in acting upon the request for such sale or transfer. Other Agreement provisions ranging from definitions to revocation procedures. Village Manager Bradford referred to pages li and 12 of the proposed agreement regarding making sure that the definition of gross revenues covered everything desired. village Manager Bradford stated he could not conclude from the definition with absolute certainty that the franchise fee would apply to persons subscribing to the Internet service, which he believed it should, as well as • any other service utilizing Village rights-of-way for any aspect of their service delivery. • SPECIAL VILLAGE COUNCIL MEETING MINTJTES February 5, 1998 PAGE 10 Therefore, Village Manager Bradford suggested that the Village Council consider adding an item 11 for internet services and an item 12 for any other service utilizing Village rights-of-way for service delivery. After discussion, Councilmember Mackail agreed those provisions should be added. Discussion ensued that Adelphia was also in the telephone and home security business, and wanted those included in gross revenue. Village Manager Bradford explained that the village could get a franchise fee only on revenues derived in part by utilizing the Village's right-of-way. Discussion ensued. Councilmember Capretta requested that the Village Attorney look at the matter so that no matter how the cable company expanded the Village would get their 5~. Mr. Blaine commented that he • could have the person Mr. Bradford had been dealing with provide internet language. Mr. Blaine explained that one third of the residents of a community like Tequesta did not subscribe to cable television services, but used satellite dishes or antennas. Therefore, Adelphia was competing for business, and must expand their level of service and products. Many smaller operators had been forced to get out of the business because they lacked resources for expansion into other products. Mr. Blaine explained that Tequesta's rates were the same charged from Boca Raton to Fort Pierce, so that improving the system would not mean increased rates. Mr. Blaine expressed Adelphia's desire to telecast village Council meetings. Mr. Blaine referred to the programming line-up which would be in effect as the system was upgraded, and showed that a basic subscription would be about $11 without satellite services. Mr. Blaine commented • that the two most exciting offerings at present were internet access and being able to compete with • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 11 ------------------------------------------ the small satellite dishes. Mayor Schauer commented that friends in Boynton Beach did not receive the Home and Garden channel, to which Mr. Blaine responded the Boynton Beach area would receive that channel after upgrade of that system was complete. Councilmember Mackail made a motion that the definition of "gross revenue" in the proposed franchise agreement with Adelphia Cable TV Company be clarified to be inclusive of all Internet services and any service utilizing Village right- of-way. Councilmember Cameron seconded the motion. The vote on the motion was: Elizabeth A. Schauer - for Carl C. Hansen - for Alexander DPI. Cameron - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted. VI. ADJOURNMENT Councilmember Mackail moved that the meeting be adjourned. vice Mayor Hansen seconded the motion. The vote on the motion was: Elizabeth A. Schauer - for Carl C. Hansen - for Alexander DP. Cameron - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted and the meeting was adjourned at 7:59 P.M. • SPECIAL VILLAGE COUNCIL MEETING MINUTES February 5, 1998 PAGE 12 Respectfully submitted, 1 ~, Betty Laur Recording Secretary ATTEST: Joann Manganiel o Village Clerk DATE APPROVED: • S ~ •