4.3. SR 02-25-2002City
MEMORANDUM
Item 4.3.
TO:
FROM:
DATE:
Mayor and City Council
Kristin Thomas, Government Access Cable Produc~~
February 15, 2002
SUBJECT: Cable Television Update
As time and technology progresses so does our cable service. This memo is meant to
address some of the changes we have seen in the past and will see in the future.
Recent Price History for Basic and Expanded Service
Dec 2001 Basic $14.50 23 Channels
Expanded $19.45 46 Channels
August 2001 Basic $13.20 23 Channels
Expanded $14.75 26 Channels
August 2000 Basic $12.90 23 Channels
Expanded $13.53 25 Channels
Prices are usually adjusted once a year at the August billing. The increase in December 2001
was due to the upgrade of the cable system to Hybrid Fiber Coax that allows the system the
ability for 2 way interactive services, digital service, and high-speed internet access. At the
completion of the upgrade nineteen new channels were added to the expanded tier. The
general increase in service cost (not related to the upgrade) has been caused by the increased
cost of programming. According to Beth Engel, General Manager of Charter
Communications, programming costs have increased to the cable operators by more than
30% in each of the last three years.
In addition to the actual cost of service, each cable customer pays 6.5% sales tax and a 5%
franchise fee.
Current Channel Lineup and Prices
Attached to this memo is a copy of Charter Communications'service guide brochure which
lists what is currently available to cable customers. Charter expects to launch high-speed
internet service in Elk River sometime this spring.
Service Area
Charter has provided us with a rough map that outlines the current areas of Elk River that
they serve. A finalized map will be provided to us in the early summer months. The
franchise agreement held between the City of Elk River and Charter Communications details
a density requirement that requires Charter to build any place that has a minimum of a 40
home density per plant mile of construction. This point is determined from the nearest
practical tie-in. Historically, Charter has been more aggressive than the requirements dictate.
As of January 2002, Charter Communications was capable of servicing approximately 80 -
90% of Elk River. Charter's penetration rate for this area is over 50%.
Competition
There have been three cable companies in the past year or two that aggressively sought
franchise agreements in and around the Twin City area to compete with existing cable
companies. It seems that due to the fall in the market with technology stocks and venture
capital, substantial funding was not available. These companies have withdrawn their
applications and it seems they have dropped out of the competition market. At this time it
appears the most potential cities have for cable service competition will come from phone
companies that have decided to compete and provide cable service through their existing
phone lines. If a company wished to compete with Charter in our city they would be
required to also hold a franchise and any application fees and franchise fees would be paid to
our cable commission.
Franchise Fees
A franchise fee is payable to a city as compensation for costs incurred in regulating said
franchise. In accordance with Federal Communication Commission policies, a city is able to
charge up to 5% of a cable company's gross revenues and in turn the cable company can
pass that through to their customers. Our 5% franchise fee is collected by Charter
Communications and paid to the Sherburne/Wright Counties Cable Commission. The cable
commission then administers the fees and uses them to buy different items to support
public, educational, and governmental television in all of the member cities. Our member
cities include: Big Lake, Big Lake Township, Buffalo, Cokato, Dassel, Delano, Elk River,
Maple Lake, Monticello, Rockford, and Watertown.
The City ofElkRiver has received franchisefee payments as follows:
1998 $46,410.25
1999 $51,246.64
2000 $53,181.46
The 2001 paymenttotalwill be available the night ofthemeeting.
Cable Commission funds have provided us with equipment along with technical and legal
support. The following is a list of equipment we have received during the last couple of
years:
· Sony Mini DV Digital Camcorder with 3 battery packs and a tripod with hand
control
· Portable Light Kit
· Wireless microphone system for camcorder
· 2 Wireless microphones in the Council Chambers
· 3 Mounted Digital Cameras to tape meetings
· Lavalier microphones at the Council dais
· Updated camera control in the A/V Room
· 500 event program control box to run Channel 12
· 4 VCRs
· Battery backup power source for Channel 12
· Updated graphics generator for the Bulletin Board with freezable scan converter
· New monitor for editing suite graphics computer
· SVHS and Mini DV videotapes
· Numerous audio and video cables
The Cable Commission and Elk River currently are in the process of discussing an update to
our editing system that would include 2 new digital VCRs and a computer based editing
system. We are also looking to continue the digital upgrade to equipment in the
Audio/Visual room that would include several digital VCRs and, as regular maintenance, the
replacement of numerous television monitors in this room. We are also discussing the
acquisition of a laptop with teleprompter software that will allow the host/hostess of a show
to read a script while looking directly into the camera that is taping him/her.
ERtV Cable Channel 12
Programming
Our channel has an aggressive program schedule. We tape and rebroadcast 2 City Council
meetings, 2 School Board Meetings, 1 EDA Meeting, 1 Park and Recreation Commission
meeting, 1 HRA meeting, and 1 Planning Commission meeting. Most of these meetings
have multiple replay times throughout the week and a few have one playback per week. We
also produce several of our own shows, including: Crime Time (bi-monthly); Fire Chief's
Corner (monthly); The McPherson Report (monthly); Klinzing Thoughts, the Mayor's Show
(monthly); and special issue/event packages (as needed). We also receive the following free
programming that we play several times throughout the week: Capitol Reports; Army
Newswatch; and Musci da Camera.
Staffing
We are currently in the process of advertising for a new production assistant. Our current
assistant, Aaron Shoemaker has decided to end his employment with us. He has graciously
offered to continue in the position until a replacement is hired.
ERtV Program Schedule
City Cotmc/l
City Council
,:.~0 PM
City Couac/l
City Cour.cfi
C/ty Co.n~l
Park & Re~veafi~
Suburban Northwest Area Service Guide
Monthly Service Rates
Digital Packages
Digital MVP ............................... $69.95
Digital Basic. HBO, ~memax, Showtimg fMC
Digital Preferred ........................... $64.95
OigJ~ BasJ~ HBO & Cinemax 01~ Show, me & TMC
Digital Complete Basic ...................... $49.95
Expanded and Digital ~annels
Individual Prices, Equipment Dental, and Installation Fees
Expanded Basic 69 Channels (includes Basic Service) ........ $33.95
Basic Service 23 c~,,ets ...................... $14.50
Digital Cable Terminal (DCT) acquired ~or Premium and e~v ...$3.95
Digital Cable Tier ~t, Add, io, to ecr~ . .' .............. $12.05
HBO/Cinemax OR Showtime/TMC .............. $18.95
Any Single Premium Service .................. $13.95
STARZ!/Encore ............................ $13.95
STARZ/Encore with a Digital Package ............ $5.00
Pay-Per-View Movies ........................ $3.99
The Cable Guide ............................ $1.75
Wire Maintenance Protection .................. $1.99
New Installation ......................... . .$42.50
Reconnect Service ......................... $25.50
Office Change of Service ...................... $2.00
Additional Outlets - Installation
at time of initial install ................. $13.50
after initial install .....................$25.50
Hourly Service Charge (HSC) .................. $23.89
All monthly service prices are subject to MN state tax and local franchise fees.
30 1st Ave NE · Buffalo, MN 55313
1-800-581-0081
www. charter, com
OMPANy ~'M
SUBURBAN NORTHWEST AREA
Service Guide
Suburban Northwest Area
Channel Line-up
2 KTCA-PBS 45 TNT
3 TV Guide Channel 46 USA
4 WCCO-CBS 47 ESPN
5 KSTP- ABC 48 Fox Sports- MSC
6 CSPAN 49 ESPN2
7 WFTC- FOX 50 E'WTN
8 LocalAccess 51 TheWeather Channel
g KMSP- UPN 52 Comedy Central
10 WGN 53 MSNBC
11 KARE- NBC 54 Sci-Fi Channel
12 Government Access 55 Travel Channel
13 Education Access 56 Animal Planet
American Country 57 History Channel
15 LocalAccess 58 Cartoon Network
.,16 Public Access 59 TV Land
· "17 KTCI-PBS 60 Hallmark
i8' :KSTC- IND 61 Food Network
19 Home Shopping Network 62 Golf Channel
20 Comm./Ed, Access 63 WE: Women's
KPXM - PAX Entertainment
64 Bravo
WB 65 CCMN
Preview 66 National Geographic
~isneyChannel 67 The Learning Channel
NiCkelodeon 68 TechTV
i~ily 69 Outdoor Life
70 Speedvision
~. ? 71 Univision
IIn~ News 72 FX
73 Fox News Channel
Network 74 El
75 CMT
76 Turner Classic Movies
Channel
Expanded Basic
Channels In Bold
DIGITAL BASIC 515 HBO Family
100 Noggin 550 Cinemax
104 Nick GAS 555 More Max
112 Discovery Kids 600 Showtime
120 BBC America 605 ShowlimeToo
124 Discovery Home 610 Showtime Showcase
132 Style 615 Showtime Extreme
140 ESPN Classic 650 The Movie Channel
200 A&E Biography 655 The Movie Channel
Xtra
202 Hislory Internalional
700 STARZ!
208 Discover Science
750 Encore
210 Discovery Civilization
755 Encore Love Slories
212 Discovery Heallh
760 Encore Action
216 Bloomberg Financial
765 Encore Mystery
220 ESPNews
770 Encore True Stories
302 Lifetime Movie
Network 775 Encore Weslems
304 Independent Film
Channel iN DEMAND
PAY-PER-VIEW
312 Discovery Wings
800 PPV Previews
314 MuchMusic
801 38 PPV movie channels
316 MTV2
840 8 NHL Center Ice
322 VH-1 Classic channels
326 VH-1 Country 86't t2 NBA PPV
channels
DIGITAL CABLE
DIGITAL MUSIC
PREMIUM
901 DMX Listening
500 HBO Room
505 HBO Plus 902 Jazz Vocal Blends
510 HBO Signature 903 Hottest Hits
904 Modern Country
905 Alternative Rock
906 Adult Contemporaq,
907 Lite Classical
908 Rock n' Roll Oldies
909 Classic Rock
910 Urban Beat
9tl Coffehouse Rock
912 Dance
913 Retro Dance
9'14 Album Rock
915 '80s Hits
916 '70s Hits
917 Classic R&B
9t8 Rock Hits Blend
919 Soft Hils
920 Golden Oldies
921 Rock ri'Country
922 Acid Jazz
923 Smooth Jazz
924 Contemporary
Instrumenlals
925 New Age
926 Holidays & '
Happenings
927
928
Chrislian
929 Reggae
930 Children'S