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HomeMy WebLinkAboutMinutes-04/16/2018 COUNCIL WORK SESSION April 16, 2018 4:25 p.m. Harold E. Getty Council Chambers Members present: Morrissey, Shimp, Klein, Amos, Schmitt, and Juon. Absent: Mr. Jacobs. Moved by Schmitt seconded by Amos that the Agenda, as proposed, be approved. Voice vote- Ayes: Six. Motion carried. Objective: Discussion of state franchise with Mediacom Corey Bowman, Mediacom, provide an overview of services provided to Waterloo by Mediacom. Mr. Schmitt commented that many hear that they can get cheaper, faster internet in Cedar Falls but based on the information presented they can provide fast speeds in Waterloo. Corey Bowman explained that they are able to provide fiber connection up to 10 gigabytes and beyond to businesses. Mrs. Juon questioned if Mediacom is available to consult with businesses when they are trying to decide whether to locate in Cedar Falls or Waterloo. Lee Grassley, Mediacom, explained that they have discussed with the Greater Cedar Valley Chamber Alliance allowing Mediacom an opportunity to speak with prospective businesses but that the Chamber has not allowed that to take place. Mrs. Juon questioned if they have been working with the planning department. Lee Grassley commented that he would like to set up a meeting with Noel Anderson and Corey Bowman and the business team. Mrs. Juon questioned if the city is currently sharing internet capacity with businesses looking at Waterloo. Noel Anderson, Community Planning and Development Director, commented that his staff will work with Mediacom to help get additional information out to the businesses, beyond what is being discussed through the Chamber. Lee Grassley questioned the process of meeting with businesses and if they would have the opportunity to be a part of those discussions. Corey Bowman commented that they are a fiber based network and there are 1,500 miles of fiber in Waterloo. Mrs. Juon requested further clarification on fiber to the home. Corey Bowman explained that most services related calls are due to devices issues and not lack of fiber to the home. He further explained that 1 Gig of service is the same regardless if you have fiber or not. Lee Grassley explained that fiber to the home has been consistently used a s a `buzzword", however Mediacom has proven it can perform on the same level as fiber with its network architecture. Corey Bowman commented that Mediacom upgraded its equipment in January of 2017 in order to deliver 1 Gig service, and they will continue to upgrade their equipment and services. Mr. Shimp questioned how prices for residential and commercial customers compare to CFU. Page 2 Corey Bowman explained that the residential new rate is significantly lower and the existing customer rate for residential is comparable to CFU. Mr. Morrissey questioned the competition for services they provide. Lee Grassley explained that the competition is higher for internet but very low on video due to the fact that video is no longer a profitable venture for companies. Lee Grassley then explained the state franchise, expiring PEG support, and further explained that the cable commission which monitored compliance with the local franchise no longer has a regulatory function, effective October 9, 2013. Mr. Morrissey questioned what the loss of the PEG fee means for money coming in. Michelle Weidner, Chief Financial Officer, explained that the city did budget to not receive the PEG fees. She further explained that they have seen a decline in franchise fees due to declining sales and use for video. Lee Grassley explained that the franchise fee is set by the FCC at a maximum of 5% of video revenue. Mr. Shimp questioned where the revenue for cable franchise hits the budget. Michelle Weidner explained that it resides in the Clerk/Finance Department. Mr. Amos questioned if the reductions in fees are in line with what was planned for the FY2019 budget. Michelle Weidner explained that the budget does include a reduction to the franchise fee. With no further business before the Council, it was moved by Schmitt seconded by Shimp that the meeting be adjourned at 5:07 p.m. Voice-vote Ayes: Six. Motion carried. &/" 44 led� Kelley Felc e City Clerk