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Minutes Cable TV RegulatoryMINUTES OF CABLE TV REGULATORY COMMISSION MEETING September 12, 2007 CITY HALL ANNEX CONFERENCE ROOM #2 MEMBERS PRESENT: Charles Ellis, Chairman, Walt Webster, Ron Tigges, Kevin Stevens. MEMBERS ABSENT: One seat remains vacant on the Commission. OTHERS PRESENT: Craig Nowack, City of Dubuque Cable TV Coordinator Kathy McMullen, Mediacom Mr. Ellis called the meeting to order at 5:33 p.m. 1. Acceptance of the Agenda. Upon a motion by Mr. Stevens, seconded by Mr. Webster, the agenda was approved unanimously as distributed. 2. Approval of the Minutes of the July 11, 2007, Meeting. Upon a motion by Mr. Stevens, seconded by Mr. Webster, the Minutes of the July 11, 2007, meeting were approved unanimously as distributed. 3. Public Comment. No one was present to address the Commission. 4. Status of Telecom Projects in Dubuque. No one had anything to discuss on this topic. 5. Franchise. Mr. Nowack had nothing new to report on the cable television franchise agreement. 6. Legislation Although it is not legislation per se, Mr. Nowack reported that in the last day or two the FCC issued some rules regarding the upcoming digital television transition in which it will require cable operators to continue providing an analog signal until 2012 so analog television sets will continue to work for three years beyond the 2009 transition date. Mr. Tigges noted that this will save people money, in that they will not need to purchase a converter right away. Mr. Ellis wondered if the FCC was still considering rules regarding making a la carte channel selection. Mr. Nowack responded that a la carte would be helpful in 1 cases like the Big Ten Network, but that a tremendous number of contracts involving channel availability would have to be undone to make that a reality. 7. Mediacom General Manager's Report Ms. McMullen addressed the a la carte situation briefly. She said Mediacom is trying to achieve that now with the Big Ten Network by making it available on a separate sports package. She would hate to charge everyone for this channel when the majority of them do not want it. She reported that Mediacom conducted a survey to determine subscriber interest in the Big Ten Network. Some said no right away, and others asked how much it would cost. Ultimately, about two per cent of the people said they wanted it. Corporate determined the best way to offer this channel was to put it on the digital tier or offer it a la carte. The trouble with this approach was that the Big Ten Network would not allow it. This brought up a dilemma: Does Mediacom offer it on their basic service and anger most of their customers, or do they not offer it at all and anger just a few. They chose the latter. Negotiations have not stopped and she hopes ultimately that they will be able to carry it on their digital tier. The reality of a la carte programming is that the majority of cable networks will go away because their financing will disappear. Mr. Nowack wondered if small specialty networks like the Big Ten Network are the wave of the future and how will they be made available? Mr. Ellis reported a general dissatisfaction with organized sports in general of which the Big Ten Network situation is reflective. Ms. McMullen thinks the way of the future for sports on television is that none of it will be free. Ms. McMullen also reported that Mediacom's digital transition will occur sometime next year, and they will run a digital signal side-by-side with an analog signal. She also said that two new HD channels will be added to Dubuque's line-up, probably in the next month or two. Also, the RFD Channel is now available on channel 211. Mr. Tigges wondered about outages as Mediacom makes its digital transition. Ms. McMullen said that this occurred in Des Moines this year and it was not without events. She hopes they have learned from this transition to make Dubuque's go smoother. 8. Staff Report Mr. Nowack reported an intensive effort at the Federal Building to get things ready for Monday's City Council meeting and the upcoming Iowa League of Cities conference. He would like to have a future meeting there to show the commission the room and facilities. Ms. McMullen asked if City Hall offices were moving down there as well and Mr. Nowack responded that only the Housing and Community Development Department is going, to the third floor where the Social Security offices were. The Cable TV Division has a nice control room there, and he hopes it can double as a small interview studio once drapes are purchased. 2 Mr. Nowack also said that he received a phone call from Ms. McMullen on Friday regarding a problem with Mediacom's accounting system which affects the franchise fee and PEG fund payments due the City. Two previous quarterly adjustments that were made were based on estimates of gross revenues rather than actual gross revenues. Mediacom owes more on the PEG fund but has overpaid on the franchise fee. Mr. Stevens wondered if the City had been approached by other companies wanting to offer video service in Dubuque. Mr. Nowack said no inquiries have been received. Mr. Webster reported that Alpine is putting a lot of conduit in the ground up in Guttenburg. 9. Future Agenda Items/Comments 8~ Concerns There was no discussion. 10. Adjournment. Upon a motion by Mr. Webster, seconded by Mr. Tigges, the meeting was adjourned at 5:55 p.m. 3