5.8. SR 01-09-2006
Item 5.8.
Your Local Cable Channel
MEMORANDUM
FROM:
Mayor and City Council
Kristin M. Thomas, Government Access Cable producer~1
January 4, 2005
TO:
DATE:
SUBJECT:
Cable/Internet Service to Cluster Developments in Ward 2
This memo is intended to provide information to facilitate discussion concerning the
possibility of extending cable service to the Windsor Park, Ridges of Rice Lake, and
Rolling Hills Developments. It also provides information on Internet services to these
areas.
CABLE SERVICE BACKGROUND:
According to the franchise agreement held between the City of Elk River and Charter
Communications effective February 26, 2005 through February 25, 2020, Charter
Communications is required at their cost, to extend service "to areas with a density of at
least nine (9) residential units per one-quarter (~) cable mile of System, as measured from
the nearest Cable System trunk line or distribution cable as of the date of such request for
Service." Charter is not obligated to assume the total cost to extend service to areas which
do not meet this requirement. However, the City, residents, and Charter Communications
can negotiate a shared cost for extension of service areas not meeting the requirement but
desiring service.
Windsor Park
According to Charter Communications Construction Coordinator, George Berkholz, a
proposal was submitted to the head office to lay approximately one mile of fiber-optic
cable in the right-of-way along County Road 1 north to reach the Meadowoods Village
Development which is located directly south of Windsor Park. In reviewing the city map it
appears that once cable service reaches that southern portion of the Windsor Park area that
the nine residential units per quarter mile requirement would be met for extending service
through a majority of the Windsor Park development. If the proposal is approved, work
could begin in this area in 2006. With the reconstruction of County Road 1, the earliest
Charter could get into the area to lay fiber-optic cable would be in the fall, barring any
construction delays. The Elk River Municipal Utilities, who also have work to do in the
right of way area burying electrical lines, is waiting until 2007 to ensure all road work is
CABLE/INTERNET SERVICE TO CLUSTER DEVELOPMENTS IN WARD 2
completed so that their lines will not be disrupted. Charter Communications may likely
choose to wait until that time also to protect their investment in fiber-optic cable. Best
case scenario, residents in the Windsor Park area could see service by the end of 2006.
Realistically, residents probably will not see service until the summer/fall of2007.
Ridges of Rice Lake
This development is located in the northern center of the community. It has approximately
seventy residential lots. According to the Comprehensive Plan, land south and west (the
area between the Windsor Park area and Ridges of Rice Lake) is a part of a phasing plan
from agricultural to rural residential which should be realized around 2008. Even as this
area develops it may never meet the density that would require Charter to assume one
hundred percent of the cost to extend service to this area. Therefore, if cable service is
brought into the Ridges of Rice Lake development it would have to be at a shared cost. An
approximate cost to extend cable service to this development is $105,260. This estimate
was prepared by Charter Communications measuring from the closest existing connection
point on/around Meadowvale Road. Given the fact that work will be done along County
Road 1 in 2006, discussions to extend fiber-optic cable to the City border should begin
now as Ridges of Rice Lake is less than % mile from County Road 1.
Rolling Hills
This development is located in the far northeast comer of the community. It has
approximately thirty residential lots. According to the Comprehensive Plan, land
surrounding this development is part of the phasing plan from agricultural to rural
residential which should be realized around 2010. As with the Ridges of Rice Lake, as the
area south and west of Rolling Hills develops it may still not meet the density
requirements. Therefore, if cable service is brought into the Rolling Hills development it
would have to be at a shared cost. An approximate cost to extend cable service to this
development is $140,525. This estimate was prepared by Charter Communications
measuring from the closest existing connection point on/around 205th Avenue (County
Road 33).
INTERNET SERVICE
In Elk River, there are four Internet providers:
. Northstar Access provides dial-up service
. Charter Communications provides three options for high speed service
. Qwest provides two options for DSL service
. Direct Way Satellite provides DSL service
NorthStar Access
Northstar Access can provide dial-up Internet service to the Windsor Park and Ridges of
Rice Lake developments. Cost for Internet service is:
. Dial-up - Stand-alone $19.95/month, with phone service $15.95/month
. A four feature phone service package is $36.95 per month plus taxes
2
CABLE/INTERNET SERVICE TO CLUSTER DEVELOPMENTS IN WARD 2
Charter Communications
Currently Charter Communication's services are unavailable in all of these areas. Cost for
high speed Internet service is:
. 384 K - Stand-alone $45.99/month, with video services $35.99/month
. 3 Mg - Stand-alone $51.99/month, with video services $41.99/month
. 5 Mg - Stand-alone $64.99/month, with video services $54.99/month
Qwest
Qwest can provide DSL Internet service to the Windsor Park Development. By the middle
of February 2006, Qwest will also be providing DSL Internet services to the Ridges of
Rice Lake Development. Cost for Internet service is:
. 1.5 Mg - Stand-alone $49.99/month, with phone service $39.99/month
. 256K - with phone services $26.99/month (no stand-alone available)
. A three feature phone package is $29.99 plus taxes
Direct Way Satellite
Direct Way can provide DSL Internet service to each ofthese developments as long as the
satellite dish can be placed to point without interference into the southern sky. The dish
for Internet service is separate and larger than that for satellite television (about 2.46 feet in
diameter). Internet customers are not supposed to be as affected by weather as satellite
television customers due to the larger reflector and element of the Internet dish. Cost for
Internet service is:
. $99.99 down and $99.99/month for 15 months
. After the first 15 months (when the equipment is paid for) the cost for Internet
service decreases to $40/month
CONCLUSION:
The City Council needs to identify if the issue is:
A) Cable Service to Windsor Park, Ridges of Rice Lake, and Rolling Hills
Developments
B) Internet Service to Windsor Park, Ridges of Rice Lake, and Rolling Hills
Developments
If the issue is A), then the City Council needs to decide if it wants to facilitate/negotiate a
cost-share agreement with Charter Communications and Ridges of Rice Lake/Rolling Hills
neighborhoods to extend cable service to these areas. The Windsor Park neighborhood
will likely receive service in 2007 at Charter's expense.
If the issue is B), it is clear from staff research that there are multiple options for Internet
servIces.
3
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