Somewhat reluctantly, Albany City Council approved first reading of an ordinance renewing the city’s cable television franchise. The ordinance was presented at a call meeting of the council last Wednesday afternoon, December 9.

The special meeting was held after the regular meeting the previous Tuesday was cancelled due to the lack of a quorum and last Wednesday, only four of six council members, along with Mayor Nicky Smith and city legal advisor Norb Sohm were on hand.

Attorney Sohm presented a summary of the ordinance on first reading, noting that the actual franchise agreement with Mediacom Cable, the city’s cable provider, expired at the end of November and the franchise was operating on the past ordinance.

Sohm noted that currently under state law, cable companies are not required to pay a franchise fee to cities or counties as they had in the past. However, that matter is in litigation with some seeking to overturn that law and make it mandatory for television cable providers to pay the counties and municipalities the fee.

The attorney noted that in new franchise agreement, it is stipulated that “If at any time Kentucky law is changed to allow the collection of franchise fees…the franchise fee shall be in the amount equal to five percent of the grantee’s gross revenues.” Payments would be made quarterly with the first within 45 days after the close of the calendar quarter for which the payments are attributable.

Council members then asked questions, including the length of the franchise period. Mediacom had sought a 15 year franchise agreement, but council members by unanimous consensus said the term should not be more than 10 years.

Some council members also addressed customer complaints about the “service and quality” provided by the cable provider. Councilman Brad Thrasher, for example, noted at times the company is doing upgrades, the system may be shut down for hours.

Councilman Leland Hicks also commented there had been a lot of customer complaints over the years and even suggested that people not satisfied with cable could go to satellite service as an alternative, noting there were two such satellite providers in the county and, in some cases, the rates were cheaper and more channels were available.

Since the deregulation of the telecommunications industry in the late 1980’s, counties and cities have little control over cable and/or satellite providers, including setting of rates, channels offered or imposing penalties for poor service or quality.

The council will review the franchise agreement, possibly make some changes, including setting the term of the contract for 10 years instead of 15, prior to second and final reading, which will be held next month.

With the only other item of business on the agenda being the approval of minutes, after the council voted on the franchise ordinance, the meeting was adjourned.

The next regular meeting of Albany City Council is scheduled for Tuesday, January 5 at 5 p.m. at city hall and is open to the public.