HomeMy WebLinkAbout01/12/1999 COW minutes MINUTES
COMMITTEE OF THE WHOLE
JANUARY 12, 1999
I. CALL TO ORDER
Mayor Fadey called the meebng to order at 7:35 p m Present at the meeting were
Trustees George Clowes, Timothy Corcoran, Paul Hoefert, Richard Lohrstorfer and
Irvana Wdks. Trustee Nocchi arnved at 7:57 p m Staff members present ~ncluded
Vdlage Manager M~chael E. Janoms, Assistant Vdlage Manager David Strahl, Pohce
Chief Ronald Pavlock and Sergeant Mmhael Semk~u.
II. APPROVAL OF MINUTES
Approval of M~nutes from December 8, 1998 Motion made by Trustee Hoefert and
Seconded by Trustee Lohrstorfer to approve the M~nutes M~nutes were approved
Trustee Wdks abstained.
I III. CITIZENS TO BE HEARD
- '-" None
IV. pOLICE DEPARTMENT REACCREDITATION UPDATE
Police Chief Pavlock provided a general overview to the Vdlage Board outl~mng
what is currently underway in the Police Department regarding reaccred~tat~on He
stated th~s is the second reaccred~tation the Department has undertaken since the
~nit~al accreditation ~n 1989. Accreditabon of Pohce Departments grew out of the
accred~tabon process in other organizations and is ~ntended to ~ncrease agency
efficiency and cooperation and enhance c~t~zen involvement. There are
approximately 436 standards which the accreditation agency has targeted for
adherence by a Department the s~ze of Mount Prospect's The standards
themselves are fluid and flexible enough to meet the needs of the commumty and
the laws and regulabons as they apply to varying situabons
Sergeant Semkiu stated that he has been assigned the reaccred~tation manager
on behalf of the Department He prowded an outhne of the actual reaccred~tat~on
process at the Vdlage of Mount Prospect including the bmel~ne of act~v~bes dunng
the reaccred~tat~on period of January 31 through February 3 The Department goal
Is 99% standard compliance which would be a higher compliance than the prewous
reaccred~tat~on of 97%
General comments from Vdlage Board members included the following items'
There was a question regarding the cost/benefit of the process to the c~bzens
themselves and how that apphes to Department actiwbes Another comment was
made regarding th~s accreditation process as a s~mdar process that many
businesses have undertaken called ISO 9000 The focus of such accred~tabon
processes is to ehm~nate pohc~es and procedures, which may be wasteful or
inefficient
Chief Paviock stated that there currently is a budget of approximately $13,000 for
reaccred[tabon expenses, He stated that the accred~tabon process estabhshes
standards for comparisons w~th other Departments and the accountab~hty of the
Department in terms of enforcement of procedures and operations is qu~te
invaluable
This item was provided to the Village Board for information purposes only and
required no action at this time,
V, CABLE FRANCHISE POLICY DISCUSSION - AMERITECH NEW MEDIA
Assistant Village Manager David Strahl stated that after the Committee of the
Whole d~scuss~on on December 8. 1998, a copy of the draft TCI Agreement was
forwarded to Ameritech representatives for their review. At the meeting, a number
of areas were pointed out that would need to be addressed and may need to be
changed ~f cable competition were to become a reahty Upon review by Ameritech
representatives, those areas, which were prewous, ly polnted,~ou~,are Mow being
requested to be changed ~n order to obtain a compet~bve franchise provider
The TCI Agreement focused on preparing a draft Agreement that was favorable for
compebbon and the anticipated changes from Ameritech are now brought before
the Vdlage Board for concurrence
As prewously identified to the Vdlage Board, the defimtion of gross revenue would
be changed to remove the advertising revenue from the, defimt~on which would
reduce the overall revenue to the V~llage by approximately $25,000 The duration
for the Franchise Agreement w~th Amentech has been proposed at 15 years The
previous agreement w~th TCI had a phase-out per~od of one year for the PEG
channels from e~ght to the basic four channels W~th the Amentech Agreement. the
PEG channels would be reduced to four at the point the Agreement ~s
consummated Pubhc Access Studio ~und~ng from Ameritech ~s provided ~n a one-
bme grant and a percentage of gross revenue
2
Other areas of the TCI Agreement, which Ameritech was agreeable to included the
enhanced hqu~dated damages, Interest on late payments and annual certificate of
insurance information.
General comments from V~llage Board members included the following items:
There was a d~scuss~on regarding the lowering of standards ~n order to obtain
compebt~on. There has been some Improvement of service but add~bonal
subscnbers may not make up the d~fference of lost revenue [f the change ~n the
definition of gross revenues ~s removed. It is recommended that Amentech consider
adding language which would be considered a "Most Favored Nat~ons" clause
which would state in part that if the advertising revenue is prowded to other
commumt~es m Ilhno~s then Mount Prospect would also have the opportumty to
receive that revenue There were also comments made regarding the need for
compebbon to improve the product and to grow the general subscriber p~e C~t~zens
have voiced a desire for competition and the potenbally Iowenng of prices for
services
Jim Szczepaniak, Manager, Public Affairs for Ameritech New Media, spoke He
introduced Andy Sachs, the corporabon counsel for Amentech New Med~a He
stated that the Naperv~lle Agreement, which was awarded ~n February of 1996, is
the only agreement of the 16 Franchise Agreements in Ilhno~s to include the
advertising revenue, _The Agreement Included the advertising revenue due to a
pending law change at the time and since the Agreement w~th Ameritech, a
corporate decision was made that no additional agreements would ~nclude
/ advertising revenue. Amentech representabves wanted N~apervdle as a keystone
to starting in the market and when the Cable Act was finally approved, the defimbon
--for gross revenues stipulated th~at advert~.~ing rev_enue is permissive not mandatory
He stated that Ameritech currently is not doing any advertising, therefore, the
amount of adverbsmg revenue ~s mute. He stated Amentech ~s adding subscribers
~n commumt~es m which it has come In to
TCI has responded to competition through service improvements and prices that are
now offered in commumbes where another provider is present He stated that
Ameritech would accept a clause commonly referred, to as a "Most Fav?,red Nations"
clause in the Mount Prospect Agreement .
He stated that the budd-out bme frame of 42 months ~s standard language m all
Agreements but experience has shown that typical build-outs take substantially less
than 42 months and have not gone beyond 24 months to date He stated that
Arhngton Heights is a simdar community as Mount Prospect in terms of the amount
of overhead cable and that build-out took 13 months He stated that once the town
is In the pipehne, the t~me frame is dependent on available brae and the
infrastructure is currently In place for Mount Prospect
3 ~
He stated that ~t would take approximately six months of engineering and the
budding should start by the end of 1999 He stated that the customer density of 35
homes per I~neal mde should include all of the areas of Mount Prospect He has not
found any areas that would not be included based on the density w~th~n the
commumty
He stated the head end for the satellite reception is in Hoffman Estates He stated
that Ameritech would have to work with Mount Prospect to determine the location
for the insertion of PEG programming He stated the government access channel
has been reserved as Channel 6 on the Amentech system and the Vdlage decides
on who uses which PEG channel locations.
General comments from the V~llage Board members included the following items'
There was some d~scussion regarding the PEG channel usage and the pubhc
access studio funding
Mr. Szczepaniak stated that Amentech's stance ~s that there is no need to build a
second studio when one already exists and the opportunity to provide a grant and
fees to manage the studio has proven to be adequate in other communities. He
stated the 15-year t~me frame ~s typically ~ncluded to cover the infrastructure cost
Investment to build the customer base to obtain enough revenue to make the budd-
out financially feasible. He stated that MPTV would feed into both systems from
Mount Prospect and it would be Amentech's responsibility to make sure that that
takes place, He stated that Ameritech currently does not have the abd~ty to get the
TCI s~gnal PEG programming to Ameritech customers.
Consensus of the Village Board was to move forward with the Ameritech
Agreement for consideration at the next Village Board meeting. There was
also consensus to include add,tional language regarding "Most Favored
Nations" status add, ressing the advertising revenue for Mount Prospect.
VI, NON-PROFIT CORPORATION TO MANAGE PUBLIC ACCESS STUDIO
Cable Coordinator Ross Rowe stated that an Ad Hoc group was formed to draft
an agreement to manage the Public Access Studio, which ~s s~milar to agreements
in other communities throughout the country He prowded a general overwew of the
detads of the operations of the Studio and how the management of the Studio and
pubhc access channels would be undertaken He stated there has been some
~nterest from other towns but to date there have been no official commitments
made He stated that once the corporabon was m place, funds would be d~rected
straight into operabons and the agreement would need to be added to the two
Franchise Agreements, which are under cons~derabon Once the Vdlage Board was
comfortable w~th the draft Agreements, he would approach the two cable prowders
to discuss how the operabons would be incorporated into the Agreements
4
General comments from Village Board members included the following items'
There was a concern regarding the disproporbonate share of the cost of some
commumtles who had made the dec~sion to direct funds to the Studio while other
communlbes would not do so. There was some concern regarding budt-in sunset
language and how the funds would be d~stnbuted ~fthe corporabon was d~sbanded
Cable Coordinator Ross Rowe responded to a number of comments He stated
that according to his esbmates, there would be a need of at least four communibes
to commit to the Studio in order to ensure adequate funding He stated that ~f there
were users that resided in communibes that d~d not contribute a fair share for
operation, ~t is likely that those users would be charged for Studio t~me d~rectly
Consensus of the Village Board was to continue discussion with the cable
providers and incorporate additional language to address sunset of the
corporation and how the funds would be distributed in the case of dissolution.
VII. MANAGER'S REPORT
None.
VIII. ANY OTHER BUSINESS
None
CLOSED SESSION
Mobon made by Trustee Hoefert and Seconded by Trustee Nocch~ to move into
Closed Session for Property Acqu~sibon d~scuss~on The meebng was adjourned
~nto Closed Session at 9 30 p m
Meebng reconvened ~nto open session at 9 57 p m
Mob~n made by Trustee Wdks and Seconded by Trustee Nocchi to adjourn the
meeting The meeting was adjourned w~th no other bus~ness at 9 58 p m
~ Respectf.ull~(subm~tted, . ,~
DAVID STRAHL
DS/rcc Assistant Vtllage Manager
H \GEN\Cov~M~nutes\l'1299 COW Minutes doc