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NORTH CENTRAL SUBURBAN CABLE COMMUNICATIO COMMISSION <br /> 1630 101st Avenue NE, Blaine, Minnesota 55449-4419 (612) 780 -8241 FAX (612) 780.8242 <br /> MEMORANDUM <br /> TO: Member City Councilmembers <br /> FIR Mike Cusick, Administrator <br /> DA: December 4, 1996 <br /> RE MONTHLY UPDATE <br /> ------------------------------------------------------------------ <br /> ------------------------------------------------------------------ <br /> AGREEMENT TO RELIEVE OPERATOR OF COMMUNITY PROGRAMMING <br /> At its meeting of November 20, the Commission directed staff to draft the necessary <br /> franchise amendment to relieve the cable operator of their community programming <br /> responsibilities and transfer same to the Commission effective March 1, 1997. The <br /> Commission will review the amendment at its meeting of December 18 and submit it <br /> to member cities in the hope that it will be acted on early in January so that all <br /> necessary preparations can be made by he Commission to assume programming <br /> responsibilities on March 1, 1997, <br /> The Commission has also taken action based on member city direction to increase <br /> the PEG (Public, E ducational, G overnment) fee from $1.50 to $1.75. This is in line <br /> with the PEG fee level proposed for the operating budget of the Community Media <br /> Center which was previously submitted for member city review. <br /> COMMISSION HOLDS OPERATOR IN VIOLATION OF CABLE FRANCHISE <br /> The Commission took action to hold the operator in default and violation of its cable <br /> franchise for refusing to comply with a condition of the Commission's resolution <br /> approving the transfer of ownership of the franchise from Continental to US West. The <br /> Commission approved the transfer conditioned on US West securing all federal and <br /> local approvals for a waiver from the prohibition on telephone companies buying <br /> cable systems in their own phone service region. US West ignored this condition of <br /> the transfer resolution and has already closed on its purchase of Continental <br /> (Continental had previously purchased Meredith - currently US West continues doing <br /> business under the "Meredith" name). The purpose of requiring local approval for <br /> such a waiver is to insure that such a purchase by a phone company will not result in <br /> an anti - competitive market for telecommunication services due to the local phone <br /> company also being the local cable operator. <br /> The situation becomes even more important for local government due to the fact that <br /> federal law requires US West to divest itself of these systems sometime in the later <br /> BLAINE • CENTERVILLE • CIRCLE PINES • COON RAPIDS • HAM LAKE • LEXINGTON • LINO LAKES • SPRING LAKE PARK <br />