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HomeMy WebLinkAbout2012/02/29 - ADMIN - Agenda Packets - Community Technology Advisory Commission - Regular Agenda St. Louis Park Telecommunications Advisory Commission Special Meeting of February 29, 2012 at 7:00 p.m. City Hall Council Chambers 1. Call to order 2. Roll Call 3. Approval of Minutes A. Telecommunications Commission minutes: Minutes of December 15, 2011 4. Adoption of Agenda 5. Public Comment 6. New Business A. Elect Vice Chair for 2012 B. Review budget for 2011 & 2012 C. Stop Online Piracy Act (SOPA) background and options D. Review survey questions for Fiber optic study E. Grand Stadium review 7. Unfinished Business 8. Reports A. Complaints 9. Communications from the Chair 10. Communications from City staff 11. Adjournment Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Cable TV Department at 952/924-2660 (TDD 952/924-2518) at least 96 hours in advance of meeting. UNOFFICIAL MINUTES ST. LOUIS PARK TELECOMMUNICATIONS COMMISSION MEETING OF DECEMBER 15, 2011 ST. LOUIS PARK COUNCIL CHAMBERS MEMBERS PRESENT: Bruce Browning, Rick Dworsky, Dale Hartman, Toby Keeler, Mike Mulligan and Rolf Peterson MEMBERS ABSENT: Bill Theobald STAFF PRESENT: Jamie Zwilling, Communications Coordinator and Reg Dunlap, Civic TV Coordinator 1. Call to Order Chair Mulligan called the meeting to order at 7:00 PM. 2. Roll Call Present at roll call were Commissioners Browning, Dworsky, Hartman, Keeler, Mulligan and Peterson. 3. Approval of Minutes for October 6, 2011 Commissioner Browning noted a misspelling and wording correction. It was moved by Commissioner Keeler, seconded by Commissioner Browning, to approve the minutes of October 6, 2011, as amended. The motion passed 6-0. 4. Adoption of Agenda 5. Public Comment - None 6. New Business A. Comcast presentation on changes in the channel lineup Mr. Dunlap put together a summary of the changes. There is no price increase at this point. One positive development is that people who are receiving the digital economy service for about $30/month can now can get a number of HD channels as part of that tier by paying a $10 fee to get the HD technology. Chair Mulligan asked if it was it optional for those with the digital economy tier to upgrade to HD and have that $10 technology fee? Mr. Dunlap replied yes, it was optional. Mr. Dunlap said that there are three channels added to the Hispanic and MultiLatino tiers, and one channel that will be lost because it’s being discontinued. Several other channels will move or be added to the various tiers. On January 5th, Turner Classic Movies will be moved from the digital starter package to the digital preferred tier, which will be bad news for some folks, and I’ve received one call about this already. Lance Leupold wasn’t able to attend tonight but in an email said there are other options for classic movies on the digital starter package, like MoviePlex, Lifetime Movie Network and Hallmark. The City has no authority over the channels being moved, but the City does take complaints about this and other items, and Mr. Dunlap’s phone number is located on every cable TV bill so customers can find it. Commissioner Browning said that MeTV stands for Memorable Entertainment Television, appears to be programmed out of Chicago and carries lots of old sitcoms like Mary Tyler Moore, Dick Van Dyke Show and the Odd Couple. B. Review draft annual report for 2011 Mr. Dunlap asked for suggestions or corrections from Commissioners. He suggested a revision to the audit wording and adding it to the 2012 work plan. Chair Mulligan liked the summary of the Comcast complaints and said it was encouraging that they had resulted in changes in the complaints over the last few years, and that this year’s complaints should be slightly lower than last year’s. Commissioner Peterson commended Commissioner Keeler for having perfect attendance. C. Draft work plan for 2012/D. Set meetings for 2012 Mr. Dunlap noted meeting dates are now on Wednesday rather than Thursday. 2012 meetings will be: February 29th, May 9th, August 22nd, October 10th and December 12th. Mr. Dunlap suggested adding the Fiber Optic Study to the Work Plan. Commissioner Keeler thought they wanted to begin working on preliminary items in June or July, so that could be discussed at the August meeting. E. Elect Chair and Vice Chair, effective next meeting Commissioner Browning made a motion to nominate Rolf Peterson as Chair, Commissioner Keeler seconded. The motion passed 6-0. Commissioner Browning made a motion to table the election of Vice Chair until the next meeting, Commissioner Dworsky seconded. The motion passed 6-0. 7. Unfinished Business A. Discussion about Council report on the future of cable TV Jamie Zwilling, Communications Coordinator, presented the study findings on the future of Cable TV. Council directed them to look at where revenues were going with cable TV and how they could plan for the future as those fees might decline and look at changes in video services. They asked the Council two questions: Do they believe that video services and content and type of programming they provide are going to continue to be a key communication tool in the near future and far off future? The answer was a resounding yes. The Council believes video is an important way to communicate with residents and those who don’t live in the community. The second question asked was if they were looking at any proactive approaches to the Cable TV Fund and it’s operations as they see it today? The Cable TV operation is funded out of the revenues generated by franchise fees and we also transfer a significant amount of money into the City’s general fund each year. We have started decreasing the contributions to the general fund and since those were programmed into the budget for the next ten years, when we look at the projections for 2021 we aren’t relying on those figures. That is assuming they don’t have any revenue increases or much decrease. The Council is aware there could be a sharp decline in cable TV fees at some point and we need to prepare for it so our operations can continue. Staff wanted to have a discussion about a decline and after 2021 if there is no longer a franchise agreement. The report shows a lot of history of cable operations. The direction Council provided was that they want to continue cable and video services into the future and they need to find a way to fund it. Council did not provide any ideas, but made it clear it is important to the City. Council is anxious to hear more about the fiber study they are working on. Commissioner Dworsky asked for a break down on the current staff as well as the $100,000 annual capital expenditures. Mr. Zwilling replied the City budget is being finalized now and that data can be provided at the next meeting. Commissioner Mulligan said it was a very thorough and well put together report and thanked those who worked on it. He asked how video in demand would play in? Mr. Zwilling replied they had been increasing the video on demand for the last six years, it continues to grow and we continue to promote it. Unlike the cable TV programming, it is tracked so we know how many people are watching it. We also can easily share content on the City web site and through social media, with over 4,000 people following the City on Facebook and Twitter. We see that area growing further, and we’ll continue to pursue every opportunity we can to provide content. Chair Mulligan said he watched a Park TV program just yesterday and it was great to have it available on the web, and the report shows the growth over the last 12 months has been staggering, and that we’re just on the cusp of what that can do. Commissioner Keeler added he attended a MACTA session and about ¾ of the suburbs and regional commissions are currently under franchise renewal with Comcast in the next year and a half to two years and MACTA will be monitoring that closely. That may portend what the future will bring for us. Commissioner Dworsky also asked for information on the break down of sources of revenue from the current communication providers if they are paying St. Louis Park anything, for example the old Qwest now Century Link, Comcast or whoever else is using City right of ways to generate their own revenue. Is any of that coming back to the City for use of City resources? Chair Mulligan asked how long do they see no risk to the current model? Mr. Zwilling replied he wished they could have an exact idea, but it depends on how willing the cable companies are to adapt to changes in the marketplace. They want to protect their business as much as they can. His sense was that they are realizing they cannot go with the status quo, that cable TV, as we know it, is not how people are going to be watching TV in the future. So far, they have been able to add new services and retain customers at a level they are comfortable with. The risk is that with the way technology is developing, something could come along very fast and change very quickly (i.e. Facebook). That would be the most difficult situation to deal with. Council is willing to work with us to figure out how to continue their services. We have adjusted budget projections downward, and are under the assumption it could happen at any time, and very quickly. Commissioner Browning said that was a wise assumption. Comcast knows what is going on and if they want to continue to be active, they will have to adapt. Everything he reads, tells him copper wire is going away slowly and that fiber and wireless is where things are going. It will be interesting to see how Comcast responds, as well as other companies, because they have to adapt in some fashion. The next couple years are going to be eye- openers. Chair Mulligan asked if there was a plan to look at this on an annual basis and address the changes that come along? Mr. Zwilling replied that was a good idea. The direction from Council was to continue video services, so they need to continue looking at the revenue options. A few years ago we looked at sponsorship and advertising and a policy was created. But to sell advertising, we need to commit human resource. They looked at other communities and found it is not a moneymaker but more of a community builder. The Council is interested in a permanent revenue stream. The fees now are tied to the fact that the companies are using their assets in the right of way. That could be fiber in the future and something we’re going to continue to look at. We’re going to need all of you for your ideas, including those outside the box. Commissioner Keeler added in the Fiber Optic Study, one of the pieces would be looking at alternative revenue streams, specifically if they can get something for the fiber that is running through the City. Now the City only gets the initial permit fees, and not continuing revenue. Commissioner Browning asked if they had an idea of what other cities were doing to look at this very thing and how they were responding? Mr. Zwilling replied St. Louis Park was unique compared to surrounding communities and often they see consolidation of services. Recently Eden Prairie and Edina entered into a partnership to provide basic meeting video services. We go far beyond basic meeting coverage in our community and look at video services as a core service for the community. A lot of time and money is being spent now to protect franchise agreements, which is money well-spent by our state and national organizations. 8. Reports A. Complaints Commissioner Browning was impressed that complaints were being handled fairly well and have been declining, which bodes well for their business. Chair Mulligan noted he called Comcast and they handled his situation pretty well. Commissioner Browning also noted a situation where he contacted customer service and the representative handled it exceptionally well. The Comcast rep suggested he try the faster broadband on a three-month offer and it seemed to be faster than when he had done it before. Mr. Dunlap noted that in a recent F.C.C. study, Comcast was over 100% of the promised or advertised internet download speeds. 9. Communication from the Chair Chair Mulligan stated his term was coming to an end, but this was his last meeting on the Commission because he’s moving to Seattle. 10. Communications from City Staff Mr. Dunlap stated he included a report about Vimeo in the packet, which shows that hits have been much higher in 2011 for every single month over 2010, when the City was still contracting with Implex to host Council meetings. Staff found a way to offer Council meetings on Vimeo in 2011, for a fraction of the cost. Also, Park TV 16, the van group that covers high school sports, has been covering more sports events live so tonight a hockey game and the Commission meeting are both covered live, which hasn’t been done before. Their staff will be providing input to the possible changes at the High School Stadium regarding their remodel. Commissioner Keeler noted at the last MACTA conference he volunteered to serve on the Board of Directors. They had a planning meeting last week, and he was appointed Chair of the Membership Committee and will be working with outlying communities. He will provide updates at future meetings. 11. Adjournment Commissioner Dworsky made a motion, Commission Browning seconded to adjourn. The motion passed 6-0. Respectfully submitted by: Amy L. Stegora-Peterson Recording Secretary 2012 Telecommunications Advisory Commission Work Plan work2012 January 2012 Written Annual Report to City Council (submitted 1/12/12) February 29 Council Chambers • Grand Stadium review • Review budget for 2011 & 2012 • Review survey questions for Fiber optic study • Stop Online Piracy Act (SOPA) background and options • Elect Vice Chair May 9 Council Chambers • Consider franchise fee audit notice, going back 3 years from the date of the notice • Fiber optic study update August 22 • Fiber optic study update October 10 • Comcast customer service update • Future of cable TV technology update December 12 • Comcast presentation on new cable rates and/or changes in the channel line up • Draft Annual Report for 2012 • Set meetings for 2013 • Draft Work Plan for 2013 • Elect Chair & Vice Chair, effective next meeting 1 Complaints logged by City staff. To Telecom Commission for 2/29/12 meeting Name/ address Date/ logger Complaint Resolution 1 12/20/11 11:35am RD I just can’t afford Comcast digital cable any more. I wish I didn’t have to pay for all these channels I never watch. Tell me about their less expensive packages. Described Basic Cable and Digital Economy tiers & referred to Comcast customer service. 2 12/27/11 RD I received a call about cable TV wiring on top of the ground in the southeast corner of the property at _______. He says it’s a nuisance and trip hazard at the moment. Possibly it’s a new or temporary line to a building and can’t be buried underground until spring. With the lack of snow cover, it’s more of a hazard than normal at this time of year. Possibly it could be flagged to alert walkers to the trip hazard. Referred to Escalation, asked them to check into it. Jan. 5 email reply: I spoke with Mr. ____ and discovered that the line in question doesn’t obstruct or cross any walk ways. However, Mr. _____ stated that residents routinely cut through the area the cable is in and he still wished for us to mark the line. A technician placed flags on the line on January 4, 2011. Mr. _____ is satisfied with this resolution. John R. Corbett 3 1/11/12 5:30pm RD I live at Park Shore Place, and in the last year have moved from a 3rd floor unit to the 5th floor and now to the 7th floor. My husband also lives here in the memory unit. After my moves, Comcast kept billing me for the old unit. Who can fix this? Please have your records of the dates that you moved available, then call Escalation. 4 1/13/12 2:12pm JM It seems like my bill goes up 20 cents every month. Is there any alternative to Comcast in SLP? Currently there is no other wireline provider in our city. Small satellite dishes, OTT broadband channels or OTA traditional channels are the remaining alternatives. Comcast cast can review your past statements to see if the amount has changed, incrementally, every month as you state. 2 5 1/9/2012 9:50 AM Email to RD On Thursday, January 5th, I turned on my television to discover that TCM (Turner Classic Movies) was no longer available to our household. I contacted Comcast customer service and the following is a summary of my multiple conversations with Comcast: 8 AM (approx.) – 8:20 AM • Held for 10 mins • Spoke with someone, who informed me TCM that had been moved to a Premium tier as of 1/5/12. • Asked why we had not received notification and was told that a postcard was sent in March 2011. My household records have no postcard. • To get TCM, I told the additional cost to get it would be $9.99 month and this is a “12 month special price”. • I voiced my anger at this change and Comcast’s lack of communication in this matter. • I did agree to the additional cost and Cindy said I could get TCM in about 5 minutes after she entered my agreement changes. 2:30 PM (approx.) – 3 PM • I turned on my TV in my kitchen and tried to get TCM with no luck. I checked my main family TV and did receive TCM. • Called Comcast, spoke with Cindy and told her my problem, she asked a number of questions such as “was the equipment plugged in” and “did I get TCM on any of my sets”. • She then said she needed to check some information and asked me to hold. And I did hold for over 10 mins and then my connection went dead. • I waited for about 15 minutes for a call-back from Cindy. After all I was asked for my phone number, address, etc. at the initiation of my call. NO call-back received. 3 PM (approx.) – 3:20 PM • Called Comcast again, held for 5 mins before speaking to Mike. • Told Mike the story again and he said that he was going to try and send a signal to the “reboot” the kitchen TV and after a few minutes, he asked if anything had changed. Told him no and he said he was going to try again and it might take a while, so he put me on hold. AGAIN after holding for a few minutes, I was disconnected! • Waited a few minutes for a call-back with no luck. 3:30 PM (approx.)-3:40 PM • Being stubborn, I called Comcast again. This time I was connect to Cecily and asked her not to hang-up on me while she tried to help. • I told her the full story and she asked a very important question after looking at my account…was I told that only the main TV with a HD box could get the new premium TCM. • I told her this was new information to me. We have 3 sets with only digital adapters. And to get TCM on these sets, we need to add HD boxes @ $8/ea. • So now to keep what we have had since Comcast came to town, we would have to pay not only $9.99, but an additional $24 + additional texes, surcharges, etc. Our monthly bill would then exceed $120/mo or $1440/yr. Comcast has continued to raise their pricing, while providing inadequate customer service and at times, defective equipment. They need to be held accountable or the City should not renew their contract. Thank you for reviewing my concerns. Response on next page 3 5. continued Email replay to customer 1/11/12 at 1:15pm: I am very sorry to hear about the inconvenience that you experienced when you contacted Comcast about losing Turner Classic Movies (TCM). This is one of my favorite channels and it’s very discouraging that it has moved to the digital tier. Unfortunately the City has no authority over channels that are moved to the digital tier. We do have some regulatory authority over the Basic channel tier, the 24 channels that cost about $12 per month. All I can do is log your complaint and forward it to the Telecommunications Commission and Comcast. The City received advance notice about this last November 28, and I received the postcard at my house a few days later. I’m sorry that you didn’t receive the post card; December is a busy month for mail and it’s possible it was stuffed into junk mail or lost. Unfortunately, it took 4 calls for you to reach Cecily to find out that the digital adapters cannot provide TCM, that only a digital receiver like your HD receiver can provide the Digital Preferred channels. Apparently the other customer service reps didn’t look at your account to see that you had one digital receiver and 3 digital adapters. I will forward your email to the Comcast Customer Service management pointing out this customer service failure that should have been identified on the first call, when you were told about the special $9.99 additional fee to upgrade to digital and continue receiving TCM. That special offer is a good one; normally, the monthly price difference between Digital Starter and Digital Preferred, where TCM will now be carried, is $18. I’m glad that Comcast has created this special offer for the first year, but be aware that when the special offer ends, you will be faced with another price increase to continue receiving TCM and the 67 other channels on Digital Preferred, like Encore channels 150, 152, 154, 156, 158 and 160, which also play classic movies without commercials. Thank you for taking time to contact me about this and I’m sorry that I don’t have a better solution. Complaints like this are one of the ways that we evaluate Comcast’s performance, so it helps to have it on the record. Forwarded to Escalation, so they’d have a record of it, requesting they forward to customer service management. Response on 1/13/12 8:13am I am writing in response to the correspondence received from your office on January 11, 2012 regarding Ms. _____. Thank you for the opportunity to address her concerns. I spoke with Ms. _____ on January 12, 2012 regarding her concerns with the recent migration of Turner Classic Movies to the Digital Preferred Package. I apologized for the misinformation she was given and added a promotion to the account for her inconvenience. She states she is satisfied and considers the issue resolved. Kathy Berg ECare/Escalations 4 6 2/3/12 11:15am RD Last month my Comcast bill was $98 and this month it’s $111. What’s going on? I’m 86 years old and on a fixed income. These people are screwing me into the ground. I have to pay extra to get AMC, and my daughter in Plymouth doesn’t. What can I do about it? I know about those services and don’t want them. (Some profane language here). OK, give me the number. You should have received notice last month about the price increase. Most levels of video service went up about $5. Comcast has several less expensive services available. Comcast’s Escalation team considers complaints on a case by case basis. You could call them and see if they’ll give you a special price break, for example, for 6 months. (Gave him the number) 7 2/6/12 10:30am RD My upload speeds are terrible today. Can you fix it? Referred to Comcast customer service. 8 2/5/12 9:30pm voice mail, RD I’ve been trying to get my cable TV to work for a couple of hours now. The TV shows, “not receiving a signal,” so I unplugged the cable & plugged it back in and tried all my remotes to no avail. If you have a Comcast cable box, unplug the power cord for 30 seconds and see if that helps. If not, call Comcast customer service at 651-222-3333. 9 2/14/12 11:10am RD I’ve been trying to get Comcast on the phone but I hate those answering services that make you press 1for this, press 2 for that. My bill went up $6 this month, why is that? Can I get any special rates to cut this price down somewhat? Provided Escalation phone number. Most customers saw an increase of $5 or $6. Try Escalation to see if they have any specials. 10 2/14/12 11:40am RD I see the price for cable service has gone up again. Is this it for a while? It seems to increase quite often. It wouldn’t be so bad but I resent them taking away Turner Classic Movies. It’s a de-regulated service, sorry. Probably the last price increase for the year. Yes, that’s terrible. 11 2/23/12 1:30pm RD I have a billing problem. I was told by Comcast that I would get a special rate for 6 months for cable TV and internet service for $43.58. But the last 2 months my bill has been over $70. Referred to Escalation. Memo To: Telecommunications Commission From: Reg Dunlap Date: February 23, 2012 Re: Cable TV Budget and Franchise Fees background Background: Commissioner Dworsky requested Cable TV fund budget details at the December 15, 2011 Telecommunications Commission meeting. I’ve attached Comcast’s franchise fee calculation sheets for the four quarters of 2011, and the Cable TV fund budget for 2012. I’ll make some comments that reference budget code numbers in the furthest left column. For example, the 3rd line under Revenue on page 1 is 4608.440, which is the actual amount of franchise fees collected for the years 2008-2010. I manually filled in the amount for 2011, which is $594,662.35. A few lines below that is Misc other income, including 8101 for Interest on Investments, since the Cable TV fund usually has a positive fund balance. Under expenditures, line 6011 is for employee salaries. Line 6063 is PERA, or payments into the Public Employees Retirement Association. Lines 6300 and 6301 are for Non- capital equipment which means equipment that costs under $5,000. Line 6630, other contractual services, is in decline because that used to be the category used to make equipment grants to the School District. For 2012, there is $35,000 in that category for the Fiber Optic Study. Staff and Commissioner conferences are paid from line 7603, seminars and conferences. The production van was purchased in 2009 and attributed to line 7804, machinery and auto equipment. Line 7805 is used for other capital purchases, like the 6 edit systems purchases in 2010. Line 8511 is transfers to the General Fund, which is the same for 2012 as 2011. These transfers were originally scheduled to increase but have been frozen at the 2011 level. Franchise fees were once expected to grow at 3% each year, but last year were adjusted to 1% after evaluating this trend: 2006: $477,344 2007: $522,881 2008: $585,800 2009: $581,928 2010: $581,473 We thought franchise fees might have peaked in 2008, but they increased to $594,662 in 2011, which is good news for the balance sheet. Attachments: Cable TV fund 2012 Budget Franchise fee calculation sheets for 2012 Memo To: Telecommunications Commission Compiled by: Reg Dunlap Date: February 23, 2012 Re: Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) Background information from Wikipedia The Stop Online Piracy Act (SOPA) is a United States bill introduced by U.S. Representative Lamar S. Smith (R-TX) to expand the ability of U.S. law enforcement to fight online trafficking in copyrighted intellectual property and counterfeit goods. Provisions include the requesting of court orders to bar advertising networks and payment facilities from conducting business with infringing websites, and search engines from linking to the sites, and court orders requiring Internet service providers to block access to the sites. The law would expand existing criminal laws to include unauthorized streaming of copyrighted content, imposing a maximum penalty of five years in prison. A similar bill in the U.S. Senate is titled the PROTECT IP Act (PIPA). Proponents of the legislation state it will protect the intellectual-property market and corresponding industry, jobs and revenue, and is necessary to bolster enforcement of copyright laws, especially against foreign websites. Claiming flaws in present laws that do not cover foreign-owned and operated sites, and citing examples of "active promotion of rogue websites" by U.S. search engines, proponents assert stronger enforcement tools are needed. Opponents state the proposed legislation threatens free speech and innovation, and enables law enforcement to block access to entire internet domains due to infringing content posted on a single blog or webpage. They have raised concerns that SOPA would bypass the "safe harbor" protections from liability presently afforded to Internet sites by the Digital Millennium Copyright Act. Library associations have expressed concerns that the legislation's emphasis on stronger copyright enforcement would expose libraries to prosecution. Other opponents state that requiring search engines to delete a domain name could begin a worldwide arms race of unprecedented censorship of the Web and violates the First Amendment. For a summary of organizations for and against these bills, go to: http://www.opencongress.org/bill/112-h3261/money Current status of the bills: Both bills have been postponed or pulled by the authors. On January 20, 2012, Sen. Harry Reid’s statement about why PIPA votes are postponed: “In light of recent events, I have decided to postpone Tuesday’s vote on the PROTECT I.P. Act. There is no reason that the legitimate issues raised by many about this bill cannot be resolved. Counterfeiting and piracy cost the American economy billions of dollars and thousands of jobs each year, with the movie industry alone supporting over 2.2 million jobs. We must take action to stop these illegal practices.” Rep. Lamar Smith’s (R-Tex, SOPA author) statement on January 20, 2012: “I have heard from the critics and I take seriously their concerns regarding proposed legislation to address the problem of online piracy. It is clear that we need to revisit the approach on how best to address the problem of foreign thieves that steal and sell American inventions and products...The House Judiciary Committee will postpone consideration of the legislation until there is wider agreement on a solution." Recommended Commission actions: Continued monitoring. If the situation warrants, a recommendation could be made to the City Council to consider action. Memo To: Telecommunications Commission From: Reg Dunlap Date: February 23, 2012 Summary: Grand Stadium seeks a signed agreement from all cable TV producers that cover high school sports sectionals, including Park TV. After reviewing the Grand Stadium proposal at several meetings, the Commission voted July 14 to table discussion until February, 2012, with the caveat that the City could take appropriate action to cover games if necessary. Background & Issues: • Grand Stadium is affiliated with KSTC broadcast channel 45, the TV station with an exclusive contract to provide high school sports tournament coverage. • Grand Stadium markets via their web site (45.grandstadium.tv), is recruiting state wide, and returns 20% of DVD sales to the producing organization. • Depending on the number of programs submitted to Grand Stadium, there’s a subsidy for the $500 worth of recording equipment required. • Grand Stadium offers live coverage (with an internet connection on site), DVD sales and Video On Demand for payment • Most other high school sports producers haven’t signed Grand Stadium agreements yet. • Producers are concerned that at some future point, coverage of local teams in Sectional playoffs may be prohibited, although this hasn’t happened yet. Interview with Grand Stadium co-founder Tom Lapping on February 2, 2011 • Only t wo organizations have signed the agreement: Bloomington Educational Channel (BEC) and Quad Cities Cable TV • Mr. Lapping has worked with the Twin Cities sports producers group to develop the agreement and has used their input extensively • Grand Stadium has a 5 year agreement for the streaming video rights from Hubbard Broadcasting, who has an exclusive contract for broadcast TV rights from the Minnesota State High School League. • Dual goals: to allow students to be trained with video production skills, and to supplement—not replace—the coverage provided by existing producers • Agreement has been edited to allow “student shadowing,” in case the organization prefers to cover events using only paid staff City Attorney Joel Jamnik’s analysis of the Letter Agreement I only saw a few things from a legal perspective to be concerned about. It is hard for me to respond to the North Metro producer’s city attorney since I am not familiar with their franchise or what specific contract provisions concern them. In paragraph 10, they propose a confidentiality provision that is illegal and that we can not adhere to—the contracts we sign are public and that’s that. If that is what the North Metro attorney spotted, I agree with him or her, but that is the only legal impediment that I think has to be removed. In the next paragraph, the venue for enforcement actions includes the Federal District Court as well as state court. I would prefer that the section be limited to state court since that is cheaper and easier, but I can live with the language if we do not want to make a big thing about the provision. Finally, the duration or term of the agreement seems to expire this summer, so that date should probably be 2012 rather than 2011. That’s all my concerns from a legal perspective—the rest are business terms/impacts/ramifications that are for you to consider, but I think you’ve identified the biggies. Though not precluded by our franchise, using the franchise customers to generate funds to stream or provide programming on an internet streaming platform may make it difficult to maintain the existing relationship and agreed upon financial support of our local cable operator. As you know, for all of our problems with them, it could be worse, and this is unlikely to help. It seems that the agreement may serve to undermine some of our ParkTV activities but that may be outweighed by our having access to those exclusive rights games. As for the exclusive rights games, it appears to me that they are limited to tournament games and do not extend to sectional games, which is good, but the clinker for me is the provision that “When KSTC45 is providing a live telecast of a state tournament, other Cable Systems may not telecast live or tape-delay broadcast any subsection or section game(s) and/or meets(s) of any activity. Example: a section Boys’ hockey final may not be telecast while KSTC45 is televising the State Girls’ Basketball Tournament.” Not to offend anyone, but if my grandchild is playing for BSM in a subsection or subsection boy’s hockey game against Edina and I can’t watch it because KSTC45 is showing Eden Prairie’s live thumping of Rochester in the girl’s bb tourney, I might question the wisdom of the people that caused that result. I also wonder in the long run whether the school’s that get involved in this endeavor will eventually want to limit others from accessing games they are producing for streaming purposes. Options: • A motion for the Commission to table the item until 2013, with the caveat that City staff could take appropriate action to cover games if necessary • A motion to direct City staff NOT to sign the agreement (Optional—include reasons in the motion) • A motion to direct the appropriate City representative to sign the agreement with amended language approved by the City Attorney (Optional—include reasons in the motion) • Direct staff to follow up with specific Commission requests for information and report back at a future meeting • Other?