NORTH SUBURBAN COMMUNICATIONS COMMISSION MINUTES AUGUST 2, 2018

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2 NORTH SUBURBAN COMMUNICATIONS COMMISSION MINUTES AUGUST 2, 2018 I. CALL TO ORDER President Dan Roe called the meeting to order at 7:00 p.m. at the NSCC/CTV North Suburbs facility in Roseville. II. ROLL CALL The following Commissioners were in attendance: Craig Wilson, Arden Hills Sue Majerus, Falcon Heights, Secretary/Treasurer Kelly Dolphin, Lauderdale Rick Montour, Little Canada, Vice President Bill Bergeron, Mounds View Emily Dunsworth, New Brighton Dan Roe, Roseville, President Hal Gray, St. Anthony Others Present: Dana Healy, Executive Director David Rosenbloom, Business Manager Tim Domke, Production and Outreach Manager Patrick Cook, Senior Technician/Facilities Coordinator III. Public Forum No one chose to speak at the public forum. IV. Approval of Agenda Mr. Wilson moved to approve the agenda. Mr. Gray seconded the motion. The motion was approved unanimously. V. Approval of Minutes A. Regular Meeting, June 7, 2018 Mr. Montour moved to approve the minutes of the regular meeting on June 7, Mr. Wilson seconded the motion. The motion was approved unanimously. VI. Reports A. Executive Director s Report 1

3 Mr. Roe introduced the new Executive Director, Dana Healy. Ms. Healy introduced herself, speaking about her background, education and her insights on communication in the community. Ms. Healy proceeded to give updates on payment that has been made and posted from Comcast and her attendance at the Mounds View City Council Meeting. Ms. Healy has also spoke with City Admin s of Mounds View, attended Chamber events, met with the County Commissioner, State Representative of 42A, the high school principle of St. Anthony, and other members of the nine communities. Ms. Healy also gave updates on the few local publication write-ups. B. Attorney s Report Mr. Bradley was not in attendance to give the Attorney s Report. C. Cable Company Reports i. CenturyLink ii. Comcast There were no representatives from the Cable Companies present. VII. General Business A. Treasurer s Reports May and June, 2018 Ms. Majerus reviewed and summarized the Treasurer s Reports from June She explained the packet that included the financial report ending on June 30 th, an account register, and credit card statement for the month of June, that will show detailed transactions. Ms. Majerus recommended to look at these reports prior to the meeting so questions can be answered accordingly. Mr. Rosenbloom explained that the agenda showed a report for May and June, stating the May report will be given at the next meeting.?? made a motion to accept the Treasurer s June report. Mr. Montour seconded the motion. The motion passed unanimously. VIII. Adjournment?? moved to adjourn the meeting.?? seconded the motion. The motion was approved unanimously, and the meeting concluded at 7:08 p.m. 2

4 Respectfully Submitted Susan Majerus, Secretary/Treasurer 3

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10 Legal Update By Mike Bradley Bradley Berkland Hagen & Herbst, LLC (651) ext. 101 October 2018

11 5G Small Cell Cable Update Verizon Announces Video Partner for 5G Partnering with YouTubeTV Future competition to traditional cable service is more likely to come from wireless carriers. This could significantly impact cable franchising if wireless carriers are not subject to the same cable franchising standards as its wireline competitors.

12 5G Cable Compared to Traditional Cable 5G is wireless to the home The antennas are connected to backhaul fiber located in the public rights-of-way. When you compare traditional cable to 5G cable, the principal differences are 1) how the last mile is delivered to the consumer (cable vs wireless) and 2) the content provider (company-direct vs OTT partner).

13 Franchise Fee Impact Local Impact of 5G Cable If 5G rolls out as quickly and as effectively as the companies promise, it would not be shocking if the move away from traditional cable would increase rapidly. This could have a negative impact on Franchise Fees Depending on Roll-out of 5G Franchising Advocacy Recommended Understand the local impact of cable franchising Educate Local Officials Participate in Advocacy with the LMC, MACTA, and NATOA Educate State and Federal Legislators Participate in Relevant FCC Dockets

14 New FCC NPRM to Reduce Franchise Fees The FCC recently released a Second Further Notice of Proposed Rulemaking (NPRM) that: (1) treats all in-kind contributions except for PEG capital costs incurred in or associated with the construction of PEG access facilities as franchise fees I-Nets Access Interconnection with other Jurisdictions Complimentary Cable TV Service Operational Grants Relocation Costs? (2) bars a local franchising authority from using its video franchising authority to regulate a cable operator s non-cable services. To the extent State Law would allow such regulation We recommend participating in this docket

15 More Restrictions on Small Cell Management In addition to Minnesota State Law on Small Cells Minn. Stat Change to Pole Make Ready Rules August 2, 2018 Third Report and Order and Declaratory Ruling New Local Preemption and Shot Clocks Proposed Sept 5, 2018 Draft Declaratory Ruling and Report and Order Released Likely on the FCC s Sept 26, 2018 Agenda

16 FCC Preempting Local Government The FCC has opened multiple dockets that propose to preempt local government authority. NATOA Recommended Filing Ex Parte Letters in these Dockets We have drafted a model letter to the FCC opposing the FCC s proposed rules that would preempt local authority to manage the rights-of-way. Use the Minnesota Small Cell Legislation as an example Our firm recently sent out a survey asking Minnesota local governments to identify the number of small cell permits that have been issued by the local government since MN Legislation was passed The purpose of this survey is to identify the immediate effects of local government preemption on the rate of small cell facility and infrastructure deployment. LMC sent the survey state-wide. Deadline to respond it Sept 14. We may include these results in our letter to the FCC. Deadline to file Ex Parte Letter is September 19.

17 CenturyLink Update Conflicting Reports on PRISM TV CenturyLink At NATOA Reports of CenturyLink ending Prism are Incorrect CenturyLink CEO 2Q Earnings Call "I've spoken about profitable revenue for a long time. We do not focus, however, on empty calorie revenue; that is, contracts or services with very low or no margin. As a result, you will see us continually evaluating our existing business and moving away from unprofitable revenue. Consistent with this approach, last quarter we noted we were discontinuing our linear and over-the-top consumer video products. CenturyLink providing little competition to Comcast in TC Market Future Franchising Status in TC Unclear

18 Federal Legislation Federal Small Cell Legislation S.3157, the STREAMLINE Small Cell Deployment Act, was introduced by Sen. John Thune (R-SD) on June 28, Act would limit the fees that a local government can charge for small cell facility permit applications and impose timeframes within which small cell facility permit applications must be reviewed or the application would be deemed granted. The bill currently has no co-sponsors and a hearing has not been scheduled. Federal Net Neutrality Legislation Earlier this year, Sen. Ed Markey (D-MA) introduced a Congressional Review Act resolution that would seek to rescind the FCC s 2017 Restoring Internet Freedom (Net Neutrality) Order. In May 2018, the resolution passed the Senate and is currently pending in the House where it needs 218 votes. A discharge petition to force a vote currently has 177 supporters.

19 State Legislation State Small Cell Legislation To date, twenty states have passed some form of legislation limiting local government authority over small cell applications State Net Neutrality Bills In response to the FCC s 2017 Restoring Internet Freedom Order, at least twentynine states, including Washington, Oregon, and Vermont, have introduced legislation that would require Internet Service Providers operating in the state to follow net neutrality principles. Another six states have issued executive orders requiring the same. Cable Franchise Fee Legislation We have recently become aware of an effort by Charter Communications in the State of Wisconsin to eliminate franchise fees on cable service. This has arisen during the 5G small cell wireless legislative discussions.

20 Summary of Federal and Minnesota Small Wireless Facility Laws This table shows limitations placed on each type of small wireless facility application, grouped by the source of law. The FCC s 2018 Wireless Order becomes effective 90 days following publication. Publication is expected to occur on October 15, 2018, making the effective date January 14, Type of Application Minn. Stat Construction of a Wireless Support Structure OR Collocation of a Small Wireless Facility on a Preexisting Structure 2018 Wireless Order Collocation of a Small Wireless Facility on a Preexisting Structure Shot Clock 90 days 60 days (est. effective Jan. 14, 2019) Completeness 30 days 10 days Determination (est. effective Jan. 14, 2019) Tolling Shot clock can only be tolled for The first time an incomplete completeness application is submitted, the shot clock resets. Thereafter, the shot clock can only be tolled for completeness. (est. effective Jan. 14, 2019) Application Fees Recurring Fees Aesthetics, Minimum Horizontal Spacing Requirements, Undergrounding Requirements Zoning Authority No statutory limit but must be nondiscriminatory and based on actual costs Rent: $150 per year per facility Maintenance: $25 per year per facility Electricity: $73, $182, or actual costs per month per facility Wireless support structures may not exceed 50 feet except by express approval, subject to zoning regulations. A special or conditional use permit may be required to construct a new wireless support structure in a single-family residential area or historic district. Presumed Reasonable Fees: $500 for up to five facilities, $100 for each facility thereafter (est. effective Jan. 14, 2019) Presumed Reasonable Fees: Rent and Maintenance: $270 per year per facility (est. effective Jan. 14, 2019) Construction of a Wireless Support Structure to Collocate a Small Wireless Facility 90 days (est. effective Jan. 14, 2019) 30 days (est. effective Jan. 14, 2019) Shot clock can only be tolled for completeness (est. effective Jan. 14, 2019) Presumed Reasonable Fees: $1,000 per application (est. effective Jan. 14, 2019) Must be reasonable, non-discriminatory, and objective. Aesthetic requirements must be published within 180 days of publication of the FCC s decision in the Federal Register. We also recommend that undergrounding and minimum spacing requirements also be published within this timeframe. (requirements must be published by est. Apr.15, 2019) Limited insofar as a local government cannot use its zoning authority to unreasonably discriminate among wireless service providers or prohibit or have the effect of prohibiting wireless services. Bradley Berkland Hagen & Herbst, LLC 2145 Woodlane Drive Suite 106 Woodbury, MN (651) BradleyLawMN.com

21 New Applicable Small Wireless Facility Standards for Minnesota Estimated Effective Date: January 14, 2019 This table shows the new applicable laws and rules for processing small wireless facility applications, grouped by the type of application. This table is intended to serve as a general guideline and is not exhaustive of all state and federal requirements. 1 As can be seen in the below table, there is a patchwork of federal and state laws that a municipality must adhere to when processing a small wireless facility application. 2 Collocation of a Small Wireless Facility on a Preexisting Structure Construction of a Wireless Support Structure to Collocate a Small Wireless Facility Shot Clock 60 days (Federal Law) 90 days (Federal Law) Completeness Determination 10 days (Federal Law) Tolling Unclear if state law is preempted. However, we believe it is reasonable to adopt the federal standards. Application Fees Recurring Fees The first time an incomplete application is submitted, the shot clock resets. Thereafter, the shot clock can only be tolled for completeness (Federal Law) Presumed Reasonable Fees: Presumed Reasonable Fees: $500 for up to five facilities, $100 for each facility thereafter $1,000 per application (Federal Law) (Federal Law) Rent: $150 per year per facility Maintenance: $25 per year per facility Electricity: $73, $182, or actual costs per month per facility (State Law) Aesthetics, Minimum Horizontal Spacing Requirements, Undergrounding Requirements Zoning Authority Aesthetic, undergrounding, and minimum horizontal spacing requirements must be reasonable, non-discriminatory, and objective. Aesthetic requirements must be published by April 15, 2019 (within 180 days of publication of the FCC s decision in the Federal Register). We also recommend that undergrounding and minimum spacing requirements also be published within this timeframe (Federal Law) A local government cannot use its zoning authority to unreasonably discriminate among wireless service providers or prohibit or have the effect of prohibiting wireless services (Federal Law) Same standard and publication requirement as collocation application (Federal Law) Wireless support structures may not exceed 50 feet except by express approval, subject to zoning regulations (State Law), but zoning is subject to the same federal shot clock A local government cannot use its zoning authority to unreasonably discriminate among wireless service providers or prohibit or have the effect of prohibiting wireless services. (Federal Law) A special or conditional use permit may be required to construct a new wireless support structure in a single-family residential area or historic district. (State Law) but also subject to federal shot clock. 1 Although such applications may be permitted under Minnesota law, this table does not address applications to only construct a wireless support structure without also collocating a small wireless facility. 2 The FCC s 2018 Wireless Order is expected to be published on October 15, It becomes effective 90 days after publication. We estimate the effective date will be January 14, Bradley Berkland Hagen & Herbst, LLC 2145 Woodlane Drive Suite 106 Woodbury, MN (651) BradleyLawMN.com

22 MEMORANDUM To: From: Re: South Washington County Telecommunications Commission Mike Bradley and Vince Rotty Cable and Telecommunications Update Date: September 25, Cable Franchise Fee Limitations The FCC recently released a Second Further Notice of Proposed Rulemaking (NPRM) that proposes to: (1) treat all in-kind contributions except for PEG capital costs incurred in or associated with the construction of PEG access facilities as franchise fees and (2) bar a local franchising authority from using its video franchising authority to regulate a cable operator s non-cable services. This would mean that all in-kind contributions such as free or discounted cable services, institutional networks, and perhaps even PEG fees (to the extent they include noncapital PEG costs) would be included in the 5% cap on franchise fees, potentially dramatically reducing the franchise fees received by the local franchising authorities. The FCC released the NPRM on September 25, Comments will be due thirty days after official publication of the NPRM and reply comments will be due sixty days after official publication of the NPRM. The NPRM has not yet been published. We recommend that the Commission participate in this proceeding. 2. Letter to FCC Opposing Local Preemption and Wireless Infrastructure Survey The FCC has opened multiple dockets that propose to preempt local government authority. We drafted a letter to the FCC on behalf of the Commission (and its member cities) opposing the FCC s proposed rules that would preempt local authority to manage the rights-ofway. Since the Minnesota legislature has already preempted local government authority over 5G small cell facilities, our firm sent out a survey asking Minnesota local governments to identify the number of small cell permits that have been issued by the local government since May 30, 2017, the date Minnesota s small cell law preempting local government authority became effective. The purpose of this survey was to identify the immediate effects of local government preemption on the rate of small cell facility and infrastructure deployment. We coordinating efforts with the League of Minnesota Cities to send to the survey state-wide. Bradley Berkland Hagen & Herbst, LLC 2145 Woodlane Drive Suite 106 Woodbury, MN (651) BradleyLawMN.com

23 3. CenturyLink Franchise Compliance Over the past nine months, CenturyLink has made adjustments to their calculations of gross revenues, resulting in a reduction of franchise fees paid to the Commission. CenturyLink claims these decreases are due to revenues that were incorrectly calculated due to multiple independent errors in CenturyLink s billing system. As a result, CenturyLink is backing out past gross revenues on which franchise fees have already been paid to the Commission, discounting new franchise fee payments to the Commission based on what CenturyLink now believes to be past franchise fee overpayments, and decreasing gross revenues moving forward. A financial consultant has been retained by some LFAs to investigate CenturyLink s claims. Additionally, CenturyLink announced in its most recent earnings call on August 8, 2018, that it has terminated expansion and promotion of its cable television product, Prism TV. Instead, CenturyLink will be promoting satellite television subscriptions from DirecTV that are resold by CenturyLink. This announcement mirrors CenturyLink s behavior that has been observed in the Commission s franchise area and Twin Cities region. CenturyLink s cable franchise is set to expire on October 20, 2021, and its renewal window begins on October 20, We have submitted two memos to the Commission, each addressing one of the above issues. 4. Drones Drones and other, similar aerial vehicles are increasingly becoming mainstream devices in cities and residential areas. Unauthorized drone operations pose safety and privacy concerns to your city s residents and visitors. We have developed a drone policy for internal use of drones and a drone ordinance for use of drones in a city. These documents are available to the Commission upon request. 5. Other FCC Proceedings and Updates A. Wireless/Wireline Infrastructure Dockets (WT-Docket No ; WC Docket No ) On August 2, 2018, the FCC adopted the Third Report and Order and Declaratory Ruling in these dockets. This Declaratory Ruling allows new pole attachers to perform any necessary make-ready work and makes state and local moratoria on telecommunications services and facilities deployment are violations of 47 U.S.C. 253(a). The City of New York and the Smart Communities and Special Districts Coalition have filed petitions for reconsideration on this ruling. On September 5, 2018, a draft Declaratory Ruling and Report and Order was released by the FCC specifically addressing small cell infrastructure. According to the FCC, this Declaratory Ruling and Report and Order would: Clarify the scope and meaning of the effective prohibition standard set forth in Sections 253 and 332(c)(7) of the Communications Act as they apply to state and local regulation of wireless infrastructure deployment. 2

24 Conclude that Sections 253 and 332(c)(7) limit state and local governments to charging fees that are no greater than a reasonable approximation of their costs for processing applications and for managing deployments in the rights-of-way. Identify specific fee levels for small wireless facility deployments that presumably comply with the relevant standard. Provide guidance on certain state and local non-fee requirements, including aesthetic and undergrounding requirements. Establish two new shot clocks for small wireless facilities (60 days for collocation on preexisting structures and 90 days for new builds) and codify the existing 90 and 150 day shot clocks for non-small wireless facility deployments that were established in the 2009 Declaratory Ruling. Make clear that all state and local government authorizations necessary for the deployment of personal wireless service infrastructure are subject to those shot clocks. Conclude that a failure to act within the new small wireless facility shot clock constitutes a presumptive prohibition on the provision of services. Accordingly, we would expect local governments to provide all required authorizations without further delay. This draft Declaratory Ruling and Report and Order will likely be discussed at the FCC s next open meeting on September 26, B. Broadband Deployment Advisory Committee (BDAC) (from NATOA) The FCC s Broadband Deployment Advisory Committee (BDAC) provide[s] advice and recommendations for the Commission on how to accelerate the deployment of high-speed Internet access. The BDAC is currently accepting nominations for its Disaster Response and Recovery Working Group. Nominations are due September 6, FCC Chairman Ajit Pai recently tasked the BDAC with making infrastructure more resilient in natural disasters, and a report is expected in February of C. FCC Section 706 Report (from NATOA) On August 8, 2018, the FCC adopted and released a Notice of Inquiry for its annual report under Section 706 of the Act. The FCC is seeking comment on whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion. 1 Comment deadlines have been extended and are due by September 17, 2018, and reply comments are due by October 1, D. FCC Telehealth Pilot (from NATOA) On August 2, 2018, the FCC adopted a Notice on Inquiry seeking comment on creating an experimental Connected Care Pilot Program to support the delivery of telehealth services to low-income Americans, with a focus on the delivery of such services to patients beyond the doors of brick-and-mortar healthcare facilities

25 2018. Comments are due by September 10, 2018, and reply comments are due by October 10, E. USDA e-connectivity Rural Broadband Pilot (from NATOA) The United States Department of Agriculture (USDA) is seeking input on implementation of the e-connectivity Pilot Program established in the Consolidated Appropriations Act of This program seeks to catalyze private investment and bring broadband to unserved rural areas of the country. 2 Comments are due on or before 5:00pm EST on September 10, F. Intergovernmental Advisory Committee (from NATOA) The FCC s Intergovernmental Advisory Committee (IAC) provide[s] aid to the [FCC] on the many telecommunications issues affecting local, state and Tribal governments that are within the jurisdiction of the FCC. The FCC recently expanded the IAC and added new members. With the addition of the new members, the expanded IAC is now comprised of 10 local, 15 State, and 5 Tribal representatives. G. New Commissioner (from NATOA) In June 2018, Geoffrey Starks was nominated as a replacement for departing FCC Commissioner Mignon Clyburn. Mr. Starks currently serves as the FCC s Enforcement Bureau Assistant Chief. As of this writing, no date has been set to vote to confirm Mr. Starks. H. Next Open Meeting is September 26, 2018 (from NATOA) The FCC s next open meeting is scheduled for September 26, Although an agenda has not yet been posted, we expect the FCC to address the previously discussed draft Declaratory Ruling and Report and Order. 6. Federal Franchise and Broadband Legislation Updates A. Small Cell Legislation S.3157, the STREAMLINE Small Cell Deployment Act, was introduced by Sen. John Thune (R-SD) on June 28, The Act would, among other things, limit the fees that a local government can charge for small cell facility permit applications and impose timeframes within which small cell facility permit applications must be reviewed or the application would be deemed granted. The bill currently has no co-sponsors and a hearing has not been scheduled. B. Net Neutrality Legislation Earlier this year, Sen. Ed Markey (D-MA) introduced a Congressional Review Act resolution that would seek to rescind the FCC s 2017 Restoring Internet Freedom (Net Neutrality) Order. In May 2018, the resolution passed the Senate and is currently pending in the 2 4

26 House where it needs 218 votes. A discharge petition to force a vote currently has 177 supporters. 7. State Franchise and Broadband Legislation Updates A. State Small Cell Legislation To date, twenty states have passed some form of legislation limiting local government authority with respect to a local government s authority to manage small cell facilities in its rights-of-way. These state laws, similar to what the STREAMLINE Act is seeking to accomplish, invariably limit the fees that a local government can charge for small cell facility permit application fees and impose timeframes within which small cell facility permit applications must be reviewed. B. State Net Neutrality Bills In response to the FCC s 2017 Restoring Internet Freedom Order, at least twenty-nine states, including Minnesota, Washington, Oregon, and Vermont, have introduced legislation that would require Internet Service Providers operating in the state to follow net neutrality principles. Another six states have issued executive orders requiring the same. C. Cable Franchise Fee Legislation We have recently become aware of an effort by Charter Communications in the State of Wisconsin to eliminate franchise fees on cable service. This has arisen during the 5G small cell wireless legislative discussions. 5

27 North Suburban Communications Commission 2018 Financial Report Summary For the Five Months Ending May 31, 2018 OPERATING SUMMARY Current Month Year to Date % Total Y-T-D Annual Operating Revenues Cable Sub Franch Fees , (1.00) 300, , Interest Income , (1.23) , Intrnshp Grant (PEG fees) Reimbursements LMCIT Reimbursement Miscellaneous Income Total Revenues , (1.00) 300, , Operating Expenditures Personnel Services 11, , , , Other Operating Expenses 12, , , , Total Operating Expenses 24, , , , General Fund Net (Excluding Capital) (23,879.63) 165, , (50,464.02) CAPITAL SUMMARY Capital Funding Source(s) Transfer from Reserves Total Capital Funding Capital Uses Capital Expenditures , , Total Capital Uses , , General Fund Net (Capital Only) (4,166.70) (10,000.00) TOTAL GENERAL FUND NET (Op+Cap) ($ 23,879.63) $ 165, , (60,464.02) Page 1 of 7

28 Personnel Services North Suburban Communications Commission 2018 Detail Financial Report For the Five Months Ending May 31, 2018 Current Month Year to Date % Total Y-T-D Annual Full Time Salaries $ 9, $ 48, , , Part Time Salaries FICA , , , Unemployment Workers Comp Health/Life Insurance 1, , , , Retirement , , , Total Personnel Services 11, a. 61, , , Other Operating Expenses General Printing Publications Memberships , , , Total General , , , Supplies I-Net Supplies , Office Supplies Software Supplies , Volunteer Supplies Total Supplies , , , a. Personnel Services: Three CTV staff members' salary and benefit expenses are split 50/50 between the NSCC and NSAC: Executive Director Cor Wilson, Business Manager David Rosenbloom and Senior Technical and Facility Coordinator Pat Cook Page 2 of 7

29 North Suburban Communications Commission 2018 Detail Financial Report For the Five Months Ending May 31, 2018 Current Month Year to Date % Total Y-T-D Annual Maintenance Office Equipment Network Equip. Maint , Building Janitorial 1, b. 9, , , Total Maintenance 1, , , , Travel Conferences , , Mileage & Meals c , Total Travel , , Tuition & Training Tuition & Training Utilities Utilities , , , Leases Rent 1, , , , Miscellaneous Postage Meter Total Leases 1, , , , b. Maintenance - Building Janitorial: Common Area Maintenance charges from landlord; cleaning bills from Vanguard (cleaning service) and Cintas (rugs); Trash and recycling removal; repairs to HVAC units c. Travel - Mileage & Meals: NSCC share of Executive Director's car allowance Page 3 of 7

30 North Suburban Communications Commission 2018 Detail Financial Report For the Five Months Ending May 31, 2018 Current Month Year to Date % Total Y-T-D Annual Contractual Audit , , , Insurance , , , Legal 1, , , , Internet Connection , , , NSCC Sales Tax Miscellaneous , , , Franchise Rnwl Consulting , , Total Contractual 2, , , , Communications Postage Telephone , Advertising & Promotion Total Communications , Grants Scholarships Internships 4, d. 24, , , Total Grants 4, , , , Recruiting Recruiting 1, e. 3, Total Operating 12, , , , d. Grants - Internships: Comcast has, for a number of years, given the NSCC a grant to cover internships. The NSCC, in turn, covers the costs of the NSAC's paid interns. e. Recruiting: NSCC is paying 25% of the bill for recruiting and hiring a new executive director for NSCC / NSAC. Page 4 of 7

31 North Suburban Communications Commission 2018 Detail Financial Report For the Five Months Ending May 31, 2018 Current Month Year to Date % Total Y-T-D Annual Capital Expenses Capital Improvements I-Net Equipment , , Office Equipment , Total Capital , , Total Expenses 24, , , , Page 5 of 7

32 North Suburban Communications Commiss Balance Sheet May 31, 2018 ASSETS Current Assets PMA General Checking $ 236, PMA Reserve Fund 138, PMA Grants fund 138, f. Prepaid Expenses 3, Total Current Assets 515, Property and Equipment Equipment 220, Office Equip/Furniture 2, Leashold Improvement 22, Accum.Dep. Office Equ/Fur (188,418.25) Total Property and Equipment 57, Other Assets Total Other Assets 0.00 Total Assets $ 572, f. Current Assets - PMA Grants Fund: The balance in this account is the surplus remaining from previous years' grants from Comcast for student internships and scholarships. Comcast discontinued this grant as of 12/31/2017. LIABILITIES AND CAPITAL Current Liabilities Accounts Payable $ 29, Accts. Payable to NSAC 25, g. ACCRUED VACATION 2, Long-Term Liabilities Total Current Liabilities 57, Total Long-Term Liabilities 0.00 Total Liabilities 57, Capital Retained Earnings 201, Capital Education 70, Capital Equipment 78, Net Income 164, Total Capital 514, Total Liabilities & Capital $ 572, g. Current Liabilities - Accts. Payable to NSAC: The NSAC pays common bills on behalf of the NSCC. At the end of every month, there is a settling of accounts. This liability reflects the amounts the NSAC paid on the NSCC's behalf in April. Page 6 of 7

33 North Suburban Communications Commission Account Register For the Period From May 1, 2018 to May 31, US Bank Checking xxx0304 Date Trans No Type Transaction Description / Vendor Withdrawal Amt Purpose 05/02/ Withdrawal Bradley Law, LLC 1, Legal fees: March - April /17/ Withdrawal North Suburban Access Corp 23, Mar 2018 NSAC-NSCC Settlement Total 24, Page 7 of 7

34 North Suburban Communications Commission 2018 Financial Report Summary For the Seven Months Ending July 31, 2018 OPERATING SUMMARY Current Month Year to Date % Total Y-T-D Annual Operating Revenues Cable Sub Franch Fees , (1.00) 300, , Interest Income , (2.11) , Intrnshp Grant (PEG fees) Reimbursements LMCIT Reimbursement Miscellaneous Income Total Revenues , (1.01) 300, , Operating Expenditures Personnel Services 7, , , , Other Operating Expenses 14, , , , Total Operating Expenses 21, , , , General Fund Net (Excluding Capital) (20,855.60) 119, , (50,464.02) CAPITAL SUMMARY Capital Funding Source(s) Transfer from Reserves Total Capital Funding Capital Uses Capital Expenditures , , Total Capital Uses , , General Fund Net (Capital Only) (5,833.38) (10,000.00) TOTAL GENERAL FUND NET (Op+Cap) ($ 20,855.60) $ 119, , (60,464.02) Page 1 of 6

35 Personnel Services North Suburban Communications Commission 2018 Detail Financial Report For the Seven Months Ending July 31, 2018 Current Month Year to Date % Total Y-T-D Annual Full Time Salaries $ 5, a. $ 61, , , Part Time Salaries FICA , , , Unemployment Workers Comp Health/Life Insurance 1, , , , Retirement , , , Total Personnel Services 7, , , , Other Operating Expenses General Printing Publications Memberships , , , Total General , , , Supplies I-Net Supplies , Office Supplies b Software Supplies , Volunteer Supplies Total Supplies , , , a. Personnel Services - Full Time Salaries: 3 staff members split their salary and benefits expenses between the NSAC and NSCC: Executive Director (Dana Healy), Senior Technical and Facility Coordinator (Pat Cook), Business Manager (David Rosenbloom) b. Supplies - Office Supplies: Office Supply expenses are split between the NSAC (80%) and NSCC (20%) Page 2 of 6

36 North Suburban Communications Commission 2018 Detail Financial Report For the Seven Months Ending July 31, 2018 Current Month Year to Date % Total Y-T-D Annual Maintenance Office Equipment c Network Equip. Maint , Building Janitorial 1, d. 12, , , Total Maintenance 1, , , , Travel Conferences , , Mileage & Meals , , Total Travel , , , Tuition & Training Tuition & Training Utilities Utilities e. 4, , , Leases Rent 1, f. 13, , , Miscellaneous Postage Meter g Total Leases 1, , , , c. Maintenance - Office Equipment: 20% of maintenance and use exp for Toshiba copier/printer/scanner d. Maintenance - Building Janitorial: 20% of total cost for Building Janitorial: Common Area Maintenance (CAM) fee from landlord; Office cleaning service fee; Waste disposal and recycling fees; Throw rug cleaning fees; Preventive maintenance to backup power generator; Recycled batteries, electronics and appliances; Fire extinguisher inspection e. Utilities: 20% of electric, gas and other utilities exp for the facility f. Leases - Rent: 20% of rent expense for the facility g. Leases - Postage Meter: 20% of postage meter lease expenses for the facility Page 3 of 6

37 North Suburban Communications Commission 2018 Detail Financial Report For the Seven Months Ending July 31, 2018 Current Month Year to Date % Total Y-T-D Annual Contractual Audit , , , Insurance h. 2, , , Legal 4, i. 10, , , Internet Connection , , , NSCC Sales Tax Miscellaneous j. 2, , , Franchise Rnwl Consulting , , Total Contractual 5, , , , Communications Postage Telephone k , Advertising & Promotion Total Communications , , , Grants Scholarships Internships 4, l. 34, , , Total Grants 4, , , , Recruiting Recruiting , Total Operating 14, , , , h. Contractual - Insurance: NSCC share of monthly Property/Casualty and Excess Liability insurance i. Contractual - Legal: Legal work related to Comcast PEG fee audit; NSCC share of contract work for new executive director j. Contractual - Miscellaneous: NSCC share of monthly IT Services bill from Roseville IT k. Communications - Telephone: NSCC share of monthly phone service bill from Roseville IT; 50% of cell phone stipend to Pat Cook l. Grants - Internships: Comcast used to make a grant to the NSCC to fund interns and scholarships. The program ended in 2017, but NSCC hasn't spent all of the funds received, so it continues to cover the cost of the NSAC's paid interns. Page 4 of 6

38 North Suburban Communications Commission 2018 Detail Financial Report For the Seven Months Ending July 31, 2018 Current Month Year to Date % Total Y-T-D Annual Capital Expenses Capital Improvements I-Net Equipment , , Office Equipment , , Total Capital , , Total Expenses 21, , , , Page 5 of 6

39 North Suburban Communications Commission Balance Sheet July 31, 2018 ASSETS Current Assets PMA General Checking $ 184, PMA Reserve Fund 138, PMA Grants fund 129, m. Prepaid Expenses 2, n. Total Current Assets 455, Property and Equipment Equipment 220, Office Equip/Furniture 2, Leashold Improvement 22, Accum.Dep. Office Equ/Fur (188,418.25) Total Property and Equipment 57, Other Assets Total Other Assets 0.00 Total Assets $ 512, LIABILITIES AND CAPITAL Current Liabilities Accounts Payable $ 23, Accts. Payable to NSAC 18, o. ACCRUED VACATION 1, Long-Term Liabilities Total Current Liabilities 42, Total Long-Term Liabilities 0.00 Total Liabilities 42, Capital Retained Earnings 201, Capital Education 70, Capital Equipment 78, Net Income 119, Total Capital 469, Total Liabilities & Capital $ 512, m. Current Assets PMA Grants fund: The balance in this account is the surplus remaining from previous years' grants from Comcast for student internships and scholarships. Comcast discontinued this grant as of 12/31/2017. n. Current Assets - Prepaid expenses: NSCC pays commercial property, casualty and excess liability insurance premiums in April for an entire year. NSCC recognizes a portion of the expense every month. The prepaid amount is the balance remaining to be expensed in coming months. o. Current Liabilities - Accts. Payable to NSAC: The NSAC pays common bills on behalf of itself and the NSCC. At the end of every month, there is a settling of accounts. This liability reflects the amounts the NSAC paid on the NSCC's behalf in July. Page 6 of 6

40 North Suburban Communications Commission 2018 Financial Report Summary For the Eight Months Ending August 31, 2018 OPERATING SUMMARY Current Month Year to Date % Total Y-T-D Annual Operating Revenues Cable Sub Franch Fees , (1.00) 300, , Interest Income , (2.53) 1, , Intrnshp Grant (PEG fees) Reimbursements LMCIT Reimbursement Miscellaneous Income Total Revenues , (1.01) 301, , Operating Expenditures Personnel Services 14, , , , Other Operating Expenses 12, , , , Total Operating Expenses 26, , , , General Fund Net (Excluding Capital) (26,148.25) 93, , (50,464.02) CAPITAL SUMMARY Capital Funding Source(s) Transfer from Reserves Total Capital Funding Capital Uses Capital Expenditures , , Total Capital Uses , , General Fund Net (Capital Only) (6,666.72) (10,000.00) TOTAL GENERAL FUND NET (Op+Cap) ($ 26,148.25) $ 93, , (60,464.02) Page 1 of 7

41 Personnel Services North Suburban Communications Commission 2018 Detail Financial Report For the Eight Months Ending August 31, 2018 Current Month Year to Date % Total Y-T-D Annual Full Time Salaries $ 11, a. $ 72, , , Part Time Salaries FICA , , , Unemployment (189.63) b Workers Comp Health/Life Insurance 1, , , , Retirement , , , Total Personnel Services 14, c. 91, , , Other Operating Expenses General Printing Publications Memberships , , , Total General , , , Supplies I-Net Supplies , Office Supplies d Software Supplies , Volunteer Supplies Total Supplies , , , a. Personnel Services - Full Time Salaries: 3 staff members split their salary and benefits expenses between the NSAC and NSCC: Executive Director (Dana Healy), Senior Technical and Facility Coordinator (Pat Cook), Business Manager (David Rosenbloom) b. Personnel Services - Unemployment: CTV received a refund on past MN SUI premiums. The refund was greater than the August premium so the total for August is negative. c. Personnel Services - Total Personnel Services: Two factors increased this amount compared to previous months - 1) New executive director, Dana Healy, started on July 16 and her paychecks were included in the month of August and 2) there were 3 pay checks in August. d. Supplies - Office Supplies: Office Supply expenses are split between the NSAC (80%) and NSCC (20%) Page 2 of 7

42 North Suburban Communications Commission 2018 Detail Financial Report For the Eight Months Ending August 31, 2018 Current Month Year to Date % Total Y-T-D Annual Maintenance Office Equipment e Network Equip. Maint , , Building Janitorial 1, f. 13, , , Total Maintenance 1, , , , Travel Conferences , , Mileage & Meals , , Total Travel , , , Tuition & Training Tuition & Training Utilities Utilities g. 5, , , Leases Rent 1, h. 15, , , Miscellaneous Postage Meter i Total Leases 1, , , , e. Maintenance - Office Equipment: 20% of maintenance and use exp for Toshiba copier/printer/scanner f. Maintenance - Building Janitorial: 20% of the following costs - Building Janitorial and supplies: Common Area Maintenance (CAM) fee from landlord; Office cleaning service fee; Waste disposal and recycling fees; Throw rug cleaning fees; Fire extinguisher inspection; a case of Fluorescent bulbs; Replacement battery for Automated External Defibrillator g. Utilities: 20% of electric, gas and other utilities exp for the facility h. Leases - Rent: 20% of rent expense for the facility i. Leases - Postage Meter: 20% of postage meter lease expenses for the facility Page 3 of 7

43 North Suburban Communications Commission 2018 Detail Financial Report For the Eight Months Ending August 31, 2018 Current Month Year to Date % Total Y-T-D Annual Contractual Audit , , , Insurance j. 2, , , Legal , , , Internet Connection , , , NSCC Sales Tax Miscellaneous 2, k. 5, , , Franchise Rnwl Consulting , , Total Contractual 3, , , , Communications Postage Telephone l , , Advertising & Promotion m Total Communications , , , Grants Scholarships Internships 4, n. 38, , , Total Grants 4, , , , Recruiting Recruiting , Total Operating 12, , , , j. Contractual - Insurance: NSCC share of monthly Property/Casualty and Excess Liability insurance k. Contractual - Miscellaneous: NSCC share of monthly IT Services bill from Roseville IT l. Communications - Telephone: NSCC share of monthly phone service bill from Roseville IT; 50% of cell phone stipend to Pat Cook m. Communications - Advertising & Promotion: 20% of the cost for having a consultant review the NSAC/NSCC websites n. Grants - Internships: Comcast used to make a grant to the NSCC to fund interns and scholarships. The program ended in 2017, but NSCC hasn't spent all of the funds received, so it continues to cover the cost of the NSAC's paid interns. Page 4 of 7

44 North Suburban Communications Commission 2018 Detail Financial Report For the Eight Months Ending August 31, 2018 Current Month Year to Date % Total Y-T-D Annual Capital Expenses Capital Improvements I-Net Equipment , , Office Equipment , , Total Capital , , Total Expenses 26, , , , Page 5 of 7

45 North Suburban Communications Commission Balance Sheet August 31, 2018 ASSETS Current Assets PMA General Checking $ 171, PMA Reserve Fund 138, PMA Grants fund 120, o. Prepaid Expenses 2, Inter-fund xfers in-transit (18,211.12) p. Total Current Assets 414, Property and Equipment Equipment 220, Office Equip/Furniture 2, Leashold Improvement 22, Accum.Dep. Office Equ/Fur (188,418.25) Total Property and Equipment 57, Other Assets Total Other Assets 0.00 Total Assets $ 471, LIABILITIES AND CAPITAL Current Liabilities Accts. Payable to NSAC 26, q. ACCRUED VACATION 1, Long-Term Liabilities Total Current Liabilities 27, Total Long-Term Liabilities 0.00 Total Liabilities 27, Capital Retained Earnings 201, Capital Education 70, Capital Equipment 78, Net Income 93, Total Capital 443, Total Liabilities & Capital $ 471, o. Current Assets PMA Grants fund: The balance in this account is the surplus remaining from previous years' grants from Comcast for student internships and scholarships. Comcast discontinued this grant as of 12/31/2017. p. Current Assets - Inter-Fund xfers in-transit: CTV maintains multiple bank accounts. Funds in transit at the end of a financial period are temporarily reported here. q. Current Liabilities - Accts. Payable to NSAC: The NSAC pays common bills on behalf of itself and the NSCC. At the end of every month, there is a settling of accounts. This liability reflects the amounts the NSAC paid on the NSCC's behalf in July. Page 6 of 7