Mr. Vandow-for the privilege of serving your community the cable company pays your community a franchise fee.

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1 Time Warner Cable Meeting 7:00PM April 23, 2015 Present was Council Members Ganther, Passonno, Potter, Leoni and Supervisor Tidball. Also present was Attorney Siegel. Meeting called to order at 7:07PM followed by the pledge to the flag. Supervisor Tidball thanked everyone for coming. We are here to discuss the Time Warner contract with the Town of Duanesburg. John Ganther- Presently we have a ten year cable franchise with Time Warner that is expiring. When the contract was negotiated ten years ago we did it in concert with other municipalities. The theory being that when you are negotiating you have more numbers you have better leverage to get a better agreement. That seemed to work out well the last time. As this ten year was reaching its end, Mr. Michael Vandow from Cobleskill is here with us if this evening he asked us we would be interested in once again collectively negotiating with Time Warner. We met last March of 2014 and all the rural communities got together and all agreed it made good sense to collectively bargain with Time Warner rather than doing it all individually. We appointed a committee within that group that would actually do the negotiations with representatives from the towns that have been involved with prior negotiations. We felt that it would be beneficial if we enlisted a consulting firm to help us negotiate. We decided ISF Consultants would best fit representation with our town. We have a couple gentlemen from ISF this evening. John thanked the panel for coming tonight. With the formal negotiations we thought it was a really good time to have this session with the public so people could voice their concerns and feedback and experiences they have with Time Warner. Council Member Ganther introduced the team. Michael Vandow is the Chair of our team, he is the cable representative for the Village of Cobleskill, and had been involved with two prior cable contract negotiations, one with Time Warner and one with cablevision. We also have Ken Hotop with us who is a member of the Cobleskill town board. He was also involved in the Time Warner and Cablevision contract negotiations. We have two representatives from ISF Consultants, Mr. Tom Isabella and Mr. Steve Shay. They are former members of the public service commission and have many years negotiating experience with Time Warner and Comcast. He thanked our panel for coming out tonight and turned meeting over to Michael Vandow. Mr. Vandow- we are here to listen to your concerns and to take note of those as we go forward in the negotiating process. There are four major areas where we may negotiate. One of those is the franchise fee another is the quality of service the third is the extension of service to more residents in your communities the fourth is the provision for access for the community the public educational and governmental access channels. Unfortunately the rate the cable company charges is not a negotiable area by state law. What is important is what you have found in regard to the service and what you would like to see. We know the extension of service is a thorn in many peoples side and we are going to push very hard to reduce the number of households per cable mile, so that more people can get service in your respective areas.

2 The process is an important one, an essential one is to review past performance and access the future needs of the community. As the negotiating team and municipalities go through the process they establish what their community feels. How Time Warner has performed and what your local needs are, given the cost of those needs. That is the way the federal process works. The town can require the franchise fee. Our main purpose is to listen to what you think of Time Warner and what we should be looking for in the future. Resident asked if they could explain what the franchise fee means. Mr. Vandow-for the privilege of serving your community the cable company pays your community a franchise fee. Annabel Felton-Creek Rd.- Wasn t it also because they were granted a monopoly. Mr. Vandow it s a monopoly defacto it s not by law. Any other cable company could come in and compete. Council Member Ganther- when you say some municipalities don t take the full five percent. Why not are they trading it off in negotiations for something else? Mr. Vandow- they might be negotiating for something else. The Town of Carlisle has just gotten a contract, because they were never able to get cable service in their area, despite the fact that Time Warner came up to their border on this side and came up to their border on the west side of town, they couldn t get them to extend in. So they accepted a contract without a franchise fee just to get the service. Resident Time Warner has the choice of charging $60,000 a mile. He talked to his neighbor who in 1985 talked the predecessor at Time Warner and said they would charge $300 a house for my road, which is basically the cost of materials dollars obviously there s inflation but not $60,000. He would like to see the town be able to hire their own installers to hook up people to Time Warner cable, hand them the customers but not pay the $60,000 a mile. It doesn t cost that much to run cable, and why should that company be allowed to profit on expansion when that is something we should just have. Negotiating team member- the state standard is thirty five homes per linear mile. When we negotiated this contract in early 2000 s we were very clear on what our needs were and the agreement stated twenty homes per linear mile. As Steve mentioned one of the key components with this meeting and the subsequent meetings we will be having is to gather the community input, assessing community related needs. So when we go to the table we are going to ask for a lesser threshold then we have now. That will be part of the critical component of this negotiating process. Resident- we went through that process a couple of years ago just up from the school. They provided the information and the figure was $15,000. They were very good about getting back

3 to me but the process was destined to not go anywhere. Asked if the company is engaged in any active marketing? Mr. Vandow- I asked the same question. They are making money, selling a product, yet I don t see sales people out there. Resident- I understand there is $500 million dollars in the state to bring cable to the rural parts of the state. Asked if that was true? We live 25 miles from the capital we should be able to tie in with what we have. Council Member Ganther-That is supposed to be in this year s state budget as of April 1 st. Mr. Vandow-If we lowered the number of households per cable mile, they are then obligated to put in the cable at their cost Resident We also have a minimum road footage ordinance. So when you bring that in and you have a mile, your twenty houses is impossible. Council Member Ganther-You have to keep in mind how far your house is from the road, if your house is ½ mile back from the road that ½ mile counts towards that linier mile, unless you run your own cable to the road. Annabel Felton-Thinks the Town of Duanesburg is at a point now, where our density is not at 20. We need to build out at a low density. Resident Asked where the franchise fee ends up and what does that provide him. Council Member Ganther More than half of that goes to pay for SCOPEG in order to televise the meetings and provide public access channel and you can view them on the web. Resident- asked about the 3 or 5% is that money taken off the bill that people presently subscribe or does that go back to the town. Council Member Ganther-It s a franchise fee in the neighborhood of $38,000 a year that goes back to the town. Resident-Asked if the board thought about using that money to run the lines for the people that can t get cable. Mr. Cass- Thirty years ago I moved into Creek Rd. and couldn t get tv. He called the cable company which the line was ¼ mile down the road, they wanted $350 but he had to get 20 neighbors to do it, he had to do their job. He told them to forget it. To this day he does not have cable. People like himself who have lived here pay taxes, brought their children up in this school system, can t get what they are entitled to.

4 Resident Spoke of the quality of service. Is this something the town can negotiate the service we receive. Mr. Vandow If you experience outages and the company hasn t responded in a reasonable amount of time to fix the outage. That s a quality of service issue. Gentleman on the panel- there is a technical quality of the system. There are federal and state standards. That is reviewed. Mr. Vandow asked about their experience with the internet. Resident Uses Verizon home fusion which is basically her only choice. She pays about $60 plus tax for 10 gigabits a month. Annabel Felton uses the same system and pays $120 a month for 30 gigs. Most of the residents here this evening are here from Creek Rd. They are interested in cable. Resident Creek Rd. Has 5 gigs and pays $50. He can t watch movies he can t watch videos, basically can only do . You don t want it you don t want to send it down the street because you don t have enough houses. Council Member Leoni- It s not correct that we don t want it, we want it. It s Time Warner that doesn t want it. Annabel Felton-The Town of Duanesburg has been getting about $30,000 a year in franchise fees and we have not been using those to extend service. Think it s time we do that. Council Member Leoni- The question arises who is going to get it first. Annabel Felton- In order to know who is going to get it first, we need Time Warner to provide us with the information about who doesn t have it. Supervisor Tidball You are correct in the amount but over half goes back to Schopeg about $14,000 to $16,000. This is my first term this is all new to me and is learning a lot tonight. Would like to see how much of that $500 million dollars is going to come to us before we decide what we are going to do with the excess franchise fees. Annabel Felton spoke with County Legislator Brian McGarry, he advised her that it looks as if the $500 million dollars in the Governor s budget will be handed first to the NYS Economic Development Authority and then it will go to the Capital region authority which will then hand it out to Time Warner or whoever applies for grants. It is not available to municipalities she doesn t think.

5 Resident- Asked if the board could find out how much it would cost to run the trunks and connect the town and if the people want the cable they can hook up. Then the town could say they gave everybody in our community access to it. Mr. Vandow- These are all legitimate questions the town can be asking. He thinks it carries a lot more weight coming from the Supervisor and the board then just a person that doesn t have cable. This is a huge company the second largest in the United States of America. It is legitimate to ask them how many miles of roads in the Town of Duanesburg presently are wired for cable and we want a map color coded to show the areas that are and the ones that are not. And then ask them specific roads. You will be building that public record, that is so critical when we sit down with them. Annabel Felton asked what the time line is on negotiations. Mr. Vandow-The contract has to be in place by March of Some negotiations go well beyond the expiration date. Our goal is to get it done. Resident- Asked in their experience negotiating, what is your luck on reducing the household mile we need to get that down. Mr. Vandow The state rule is 35 your franchise is 20. At the time the committee negotiated that and it was low for a rural town. Can you go lower, you can, but it doesn t happen very often. Resident- Spoke of Frontier if they are willing to come down their way. We don t we hook into them. Mr. Vandow-That is up to the town, they could contact them. Annabel Felton Asked if another company were willing to come into the town would that help or harm your negotiations. Mr. Vandow- Thinks it would help us. The Town of Duanesburg or any other community could enter into a franchise agreement with another provider and it would impact Time Warner at all. Resident-The state says 35 houses per mile. The Governor had one debate in the last election and it was on channel 9. None of us saw that. How can you participate in government? Peter Brodie asked how the Town of Duanesburg compares in a rural nature to the other towns and municipalities in the district. Are they all reasonably comparable? Supervisor Tidball We are probably more saturated then some of those other towns. Introduced Peter Brodie he is a local resident who also works for Senator Amadore and he is taking notes for the Senator. Council Member Ganther has been working with the Senator and he is very interested in helping us out.

6 We hear all of the problems and we will do what we can. My personal goal is to see how the negotiations go. Next step is to find out how much if any we are going to get from the state. We will sit down with Time Warner and get a better map see what it is going to cost to get the lines put down on the roads. Resident- Has a son that s in the 30 s at the age people are marrying raising families and wanted to buy houses, no way Duanesburg because of the internet situation. Council Member Potter- Knows how they feel he does not have cable. He would love to have it. It comes up ½ mile from his house one way and ¾ of a mile the other way. Resident- Cable stops at the house before his, he can see that house but he doesn t have cable. Council Member Ganther- We all learned a lot here. Some great ideas and thoughts from the folks and agrees with a lot of them. I wouldn t buy a house without cable. I understand how important it is. No other business. Supervisor Tidball closed the meeting at 8:20PM Council Member Passonno motioned to adjourn Council Member Potter seconded, all in favor. Respectfully submitted, Leah M. Lennon Town Clerk

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