4.3. SR 02-25-2002 - Laserfiche WebLink

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City MEMORANDUM Item 4.3. TO: FROM: DATE: Mayor and City Council Kristin Thomas, Government Access Cable Produc~~ February 15, 2002 SUBJECT: Cable Television Update As time and technology progresses so does our cable service. This memo is meant to address some of the changes we have seen in the past and will see in the future. Recent Price History for Basic and Expanded Service Dec 2001 Basic $14.50 23 Channels Expanded $19.45 46 Channels August 2001 Basic $13.20 23 Channels Expanded $14.75 26 Channels August 2000 Basic $12.90 23 Channels Expanded $13.53 25 Channels Prices are usually adjusted once a year at the August billing. The increase in December 2001 was due to the upgrade of the cable system to Hybrid Fiber Coax that allows the system the ability for 2 way interactive services, digital service, and high-speed internet access. At the completion of the upgrade nineteen new channels were added to the expanded tier. The general increase in service cost (not related to the upgrade) has been caused by the increased cost of programming. According to Beth Engel, General Manager of Charter Communications, programming costs have increased to the cable operators by more than 30% in each of the last three years. In addition to the actual cost of service, each cable customer pays 6.5% sales tax and a 5% franchise fee. Current Channel Lineup and Prices Attached to this memo is a copy of Charter Communications'service guide brochure which lists what is currently available to cable customers. Charter expects to launch high-speed internet service in Elk River sometime this spring.