11-24-2014 SWC MIN •
Minutes of the Sherburne/Wright County Cable Commission
Monday, November 24, 2014, 1:00 p.m.
Buffalo City Hall
Present: Chair Tina Allard, Commissioners:Mert Auger, Cathy Shuman,Terry Boese,Peggy
Carlson,Marlene Kittock,Shane Fineran,LeeAnn Yager
Absent: Commissioners Phil Kern and Gina Wolbeck
Also present: Technology Consultant Bill Bruce and Attorney Bob Vose
1. Call to Order
Chair Allard called the meeting to order at 1:07 p.m.
2. Potential Notice of Violations
Attorney Vose stated Charter made the decision to make their services digital and encrypted,
which now requires a converter box in order to view their programming. He reviewed a
proposed Notice of Franchise Violations with the Commission.
Attorney Vose stated some cities may have received a municipal survey document notice from
Charter regarding their changeover to digital services.He asked cities to let him know if they
have been charged any install fees for converter boxes.
Ms. Shuman stated the City of Monticello was told earlier in the year that they would be able
to get free service at their public works building but then were later told they needed to pay
for installation fees.
LeeAnn Herrera,Director of Government Relations for Charter—Stated that in order to
remain competitive, Charter has made the decision to upgrade its systems. She stated
customers have been asking for faster Internet speeds and having the converter boxes makes
theft of services non-existent. She stated when the 2005 franchise was implemented;no one
knew what technology would be like in the future. She stated cities are being given one
converter box for free.
Ms.Herrera stated the 621 Order allows cable companies to deduct in-kind services from city
franchise fees. She stated the monthly rate for Standard Definition (SD) or High Definition
(HD)is $6.99 per month per converter box.
Mr.Bruce stated he was given different quotes from Charter on what the actual fee would be
so he ended up installing the SD boxes in member cities.He stated he wouldn't have put in
the SD boxes if he knew he could have gotten the HD ones for$6.99.
Ms. Herrera stated they charge one rate if only one or two boxes are installed,but if there are
more than 10 boxes they charge a business rate.Ms.Herrera stated schools typically get a box
and them,historically;the cable service is redistributed on the inside of the building.
Ms.Bremer stated converter boxes are not part of free services. She stated Charter and the
Commission should continue discussions to work out a billing/payment solution.
Ms. Shuman stated it sounds like Charter doesn't want to work out a solution based on past
history.
Attorney Vose stated he disagrees with Ms.Bremer and Ms. Herrera on all points regarding
the 621 Order and the charges for the converter boxes.
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Ms. Herrera stated Charter would like more time to work out a solution and requested the
commission not act on the Violation Notice at this time.
Mr.Auger stated he has never seen such a disconnect between Charter and the commission
cities and doesn't understand why there wouldn't be some goodwill on the part of Charter to
support local government.He stated both parties need to work together to create a better
system and he would like to be partners with Charter so that both parties can sell the good
features of Charter.
Mr.Bruce stated the cities used to have a much better relationship with Charter.He stated the
local relationship is good,but it changes at the state and national level.
Ms. Herrera stated Charter is making the commitment to not shut off services in the
commission cities in order to work out a solution.
The commission consensus was that Bill Bruce and LeeAnn Herrera work together regarding
documentation of the status of set top boxes for each city in the commission.
Moved by Commissioner Boese and seconded by Commissioner Shuman to designate
Attorney Bob Vose and Consultant Bill Bruce to represent the SWCC in regard to the Charter
Reorganization and compliance with the franchise agreement.
Motion carried 8-0.
3. Form 394 Charter Reorganization
Attorney Vose presented his report. He handed out an updated resolution and reviewed the
following issues:
• Financial implications
• Charter's recent bankruptcy
• Creation of new revenue streams
He questioned whether the changes allow the company to continue operating in the short-
term. He discussed his review process in determining how the transition will affect Charter's
ability to perform legally and technically.He suggested the commission pass a conditional
resolution approving Form 394 with the stipulations outlined that the commission receives a
bond performance and payment of attorney fees.
Moved by Commissioner Auger and seconded by Commissioner Boese to adopt
Resolution 14-01 Consenting to Change of Control of the Charter Corporate including
Exhibit D. Motion carried 8-0.
9. Adjourn
Meeting adjourned at 2:30 p.m.
Minute prepared by Commission Chair Tina Allard.
Secretary,Gina Wolb
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Chair,Tina Allard