Agenda - Council - 05/24/1984 - Laserfiche WebLink

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LAW O~: F IC.E 5 BTERN, LEVINE, EiC:HWARTZ, LIIrlSC)N & CREIGHTON SOOS OLD CEDAR LAKE ROAD ST LOUTS PARK. MINNESOTA 5S4.1~ MICHAEL D, SCHWARTZ SAMUEL L, STERN ~ ROBERT M. LEVINE SCOTT A. LIFSON ,~.~" THOMAS 0, CREIGHTON JOHN F. WAGNER BRIAN F CORIrY April 30, 1984 City Administrators -- Quad Cities Cable Communications _C~xnmi_ss~o~ Franchise Amendments, Settl~nent with Group W, a~d Change in Rates Regarding Change of Service Fee. I I I I I I I I I I I As yo~ know, Group W Cable of the Quad Cities has constructed and is operating a cable co~nunications system in the four cities of the Quad Cities area. As you may also know, in the Fall of 1983, the Commission and Group W were in dispute re~arding the construction timetable and various issues regarding the providing of local origination and access services and equipment. For the last six ~. months, Group W and the Quad Cities Cable Communications Co~nission on your -behalf have been negotiating a settlement of the dispute from the Fall of 1983. Please find enclosed for your review and action an Amendment Agre~nent No. 1 incorporating all of the terms of the agreement bet~een the Quad Cities Cable Cognunications Commission and Group W Cable. The Quad Cities Cable Commmica- tions Co~nission at its last meeting adopted this Amemdment Agre~nent and recom- mended it be sent on to its City Councils with a request for approval. Also included and resulting from the negotiations is a proposed Ordinance Amendment. The proposed changes occur in the Ordinance section regarding rate change procedures. Originally, any rate changes were required to be brought to the Cable Q~mission and the member cities with the cities having 30 days to approve or deny any rate changes. Since the time of the adoption of the origi- nal Franchise Ordinance, the rate regulatory climate bas considerably changed nationwide. Particularly, the federal goverr~nent has preempted the regulation of any pr~niua service rates for any services such as Home Box Office and Showtime. Additionally, city gov~ts have found that within certain limits, it is easier to adopt a "passive rate regulation" as opposed to an active rate regulation climate. In other words, Group W would still follow the same proce- dures by bringing proposed rate changes to the City Council. However, after review of the doc~nentation from Group W, the cities upon recommendation of your