Committee Report CR-1
The Cable TV, Telecommunications and Public Utilities Committee conducted a public meeting on Wednesday, April 7, 2010 at five o'clock and thirty-seven minutes P.M. in the Sullivan Chamber.
The purpose of the meeting was to discuss the work plan for the committee, to receive an update on the Google application and the cable franchising process and negotiations.
Present at the meeting were Vice Mayor Henrietta Davis, Chair of the Committee, Councillor Leland Cheung, Robert W. Healy, City Manager, Richard Rossi, Deputy City Manager, Nancy Schlacter, Assistant to the City Manager, Lee Gianetti, Chief of Staff for Mayor Maher, Susan Fleischmann, Executive Director, Cambridge Community Television, Inc. (CCTV), Ginny Berkowitz, Program Manager, Cambridge Educational Access, Corey Pilz, Consumer Information Specialist, Cambridge Consumers' Council, Deputy City Clerk Donna P. Lopez and Penny Peters, Aide to Vice Mayor Davis.
Also present were Robert Winters, 366 Broadway, Chris Connaire, 85 Putnam Avenue, C. Hill, Saul Tannenbaum and Ed Frankenberry.
Vice Mayor Davis convened the meeting and explained the purpose. She asked Mr. Healy to give an overview of the Google application filed by the city.
Mr. Healy informed the committee that the city filed the Google application on March 24, 2010, two days before the application deadline. Nationally there were 11,000 applications submitted. A decision will be made by the end of the year. The questions on the twenty-seven page application were informational. Information about underground regulations was required. All the data that Google required was provided by the city. The life sciences and the universities in the city are a positive factor. However the weather is an issue and the underground utilities in the city are complex. There are positives and negatives for Cambridge with the application. The city has received approval from the Harvard Square Business Association, the Central Square Business Association, the legislative body and universities. Pressure is being put on the FCC to provide greater broadband speed. The regulatory process of the Pole and Conduit Commission is required as well as permission from NSTAR to affix wires. The city will await the decision from Google. If approved there will be a build out and will require a rock saw and be disruptive to city streets. Then the pavement must be restored.
Councillor Cheung asked if Google was investigating regulations. Mr. Healy responded that Google wanted a single point of contact which is the city manager. The Pole and Conduit Commission have a process; rules are in place and Google has been informed of the construction aspect. This will be a city-wide process and there will be no surprises for Google. Cambridge is a high usage area. Councillor Cheung stated that Google will appreciate the thoroughness of the application and the professionalism of the City of Cambridge.
Vice Mayor Davis inquired about Google's motive. Mr. Healy stated that his belief is that Google's ultimate sincere goal is to seek opportunities to better the community.
Vice Mayor Davis asked about the cost. Mr. Healy stated that there was no indication of cost per unit or cost of materials. There may be a marginal increase.
Mr. Healy gave an outline of the background of the cable franchise. He distributed information about the current cable license renewal process
The process began in January 2008. The cable license expires December 31, 2010. The initial cable license was issued in 1980 and was renewed in 1990 and 2000. Verizon FIOS has no interest in Cambridge. Verizon FIOS will reduce its investment in Massachusetts. The franchise process in Massachusetts is too protracted. FIOS is being built out in the suburbs. RCN responded to the RFP but backed out in mid-stream. The city's goal is to negotiate and put together the best cable franchise. Mr. Healy met with Ms. Berkowitz and Ms. Fleischmann and city departments to prepare a Needs Assessment. An RFP was prepared for a cable consultant. Ms. Sue Buske from the Buske Group was hired. As part of the franchising process there were six focus groups and a technical evaluation of the existing system. The city receives five percent of the revenue from cable subscribers. Sixty percent of that revenue goes to CCTV and Channel 8. A public hearing was held in February 2010 which heard from 30-40 speakers. The audience supported improvements and enhancements to the services provided by CCTV. No complaints were received about Comcast. Negotiations began in March with Comcast. The city cannot negotiate rates and channels. The senior discount is a thing of the past. Comcast owns under the street, the city owns the poles. The license is a ten year license. The city manager concluded that the process is a good one and included many groups.
Vice Mayor Davis asked what the goal of the city is. Mr. Healy responded to have a negotiated refranchise. There are three cable entities: PEG, government and Channel 8 and they have provided their wish list. All data, the needs assessment and license compliance information have been provided to Comcast. Purchase or replacement of equipment has an associated cost. Rates and the senior discount are off the table. The issue is quality of service.
Vice Mayor Davis stated that issues of concern for the public are customer service and channel line-up. She wants the case for Cambridge consumers to be made well. Mr. Healy stated that all comments were incorporated in the Needs Assessment. Mr. Rossi commented that Ms. Buske brings her expertise with cable contracts into the negotiations. Mr. Healy stated that there are good faith negotiations on-going between the city and Comcast.
Vice Mayor Davis stated that the confusion about the consumer rates needed to be clarified. The best senior discount is spending the least amount of money for service. The public must be made aware of the least expensive service and this must be clearly identified. Channel line-up is not dependable. She wants this to be clear for customers; what Cambridge now has is not clear. She requested that the city manager have the National Broadband Plan read; it includes the digital divide in the plan.
Robert Winters stated his concern with the arrangement with American Cablevision done twenty-five years ago with minor tweaking. Is the contract of twenty-five years ago still applicable today he asked? He wondered if there was room for "possibilities" involved in the process. He gave up Comcast and uses the municipal channel. He stated that the municipal channel and CSPAN should be available with any service. Literature from Comcast always lists additional service, but inevitably takes something away. As of May 2010 plug in TV channels will go away. His biggest complaint is that the only negotiation is about the PEG channels.
Ms. Fleischmann applauded the work of the city manager and the cable franchise team. The first license, she said, was awesome; the second not so awesome. Comcast will be reasonable about the offering; this will be from data collected through the assessment process. CCTV will bring funds back to Cambridge. The critical piece is outlining the cable-related needs of the community.
Corey Pilz spoke about the complaints received by the Consumer Council. Disclosure of rates is a problem for customers of Comcast. Tiering is a separate issue. Accessing information on the Comcast web site is confusing; this is an issue every municipality has with Comcast. Comcast agents are supposed to disclose the cable rate, if it is a promotional rate and when it expires. The rates are regulated by the FCC. Comcast stated that it informs customers of their rate through their bill. Bill disclosure is an issue. He suggested that consumers read their bill--carefully.
Ginny Berkowitz stated that the process for refranchising was a well executed process. This was a positive improvement at the School Department. How the city distributes to the media was reviewed. More will happen on line, she said.
Mr. Healy stated that the compliance analysis, specifically complaints, disclosure and misleading ads, have been explained to Comcast. Mr. Rossi added that the same problems outlined here are the same with all cable providers.
Councillor Cheung spoke of the digital divide. He requested an update on this issue and what progress was made. Vice Mayor Davis stated that this should be revisited. Additional funding is sought for the Pilot Program.
Susan Fleischmann stated that a $700,000 grant was received by the CHA to reopen their media labs. A follow-up report will be provided on the Pilot Program that rolled out WIFI at Newtowne Court. It is critical to make WIFI available in public housing. Councillor Cheung stated that he heard that maintenance of the equipment was an issue. Is this accurate? Ms. Fleischmann responded that money was received to upgrade the system.
Vice Mayor Davis stated that a meeting will be held on the digital divide. She outlined other issues the committee would work on. They were energy in buildings, specifically to decrease energy consumption and increase energy efficiency; the weatherization program; update on the Cambridge Energy Alliance; non-profits and energy efficient buildings; Climate Congress; solar energy; ARRA funds and the Property Assessed Clean Energy (PACE) program.
Councillor Cheung stated that gov2.0 is using technology to push government forward. This is critical. It will open up data behind information. Vice Mayor Davis explained that the MBTA application is giving reports on bus arrival with LED lights. Councillor Cheung commented that the governor supported priority on open data.
Saul Tannenbaum favored MBTA providing schedule information on all buses. He would like to see gov2.0 achieve specific milestones. It is not feasible to open all data at once. Vice Mayor Davis asked what data would be useful. Mr. Winters replied better notification of meetings. Mr. Tannenbaum responded: the ability to view transactions, inspection of restaurants, pothole fixing (picture of pothole taken, reported to city, acknowledged by city, and picture of fixed pothole).
Councillor Cheung requested cell coverage to be part of the working plan for the committee. Mr. Rossi stated that there is controversy on installing cell towers as it relates to zoning.