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Council Minutes of 10/7/2003 <br />7) On October 7, he attended a directors' meeting at City Hall. <br />8) Today he received an M,A (International Municipal Lawyers' Association) fax <br />notice regarding a Ninth Circuit Court of Appeals decision released just yesterday. <br />Basically, this federal appellate decision upholds the FCC's ruling classifying cable <br />modem service as interstate information and service and not as a cable service. The effect <br />of this ruling is that local governments will no longer be allowed under existing franchise <br />agreements to include revenues from cable modem service as a portion of the 5% <br />franchise fee assessed by cable providers as part of their gross revenues. Both of the <br />city's cable providers had already discontinued paying those amounts following the FCC <br />ruling last year. So, there won't be any effect of this ruling on immediate revenues. <br />However, it is a lost case from a municipal standpoint because we continue to lose those <br />revenues that we could have been accumulating through cable modem service payments. <br />9) Today he circulated an ABA Law Journal article on the attorney/client privilege in the <br />public sector. He will be happy to answer any questions from Council or members of the <br />administration. <br />10) On behalf of his family, thank you to everyone who offered their condolences and <br />support following the recent passing of his mother from breast cancer. October is <br />national Breast Cancer Awareness Month. He would like to use this forum to suggest <br />three things: One, don't smoke, especially if you are under the age of 18. There are <br />studies that show that women who begin smoking under the age of 18 years of age have <br />the highest risk of contracting breast cancer. Two, pass the word that early detection <br />saves lives. Encourage women to watch out for this form of cancer through self- <br />examinations and mammography screening. Three, if you do contract this form of <br />cancer, get the best doctor you can and the best medical treatment that is available to you. <br />It is a type of cancer that can be beaten. <br />Finance Director Copfer: 1) She met with the Auditor of State's Local Government <br />Services Division today to discuss their ability to perform CAFR (Comprehensive <br />Annual Financial Report) assistance in the conversion. In 2003, the city will be under <br />new accounting rulings that will significantly change the way we report to our finances. <br />This division has extensive experience in this conversion process, especially as it relates <br />to G.A.S.B. 34. They do most of the cities and school districts. Whereas, some of the <br />other accounting firms do a few a year. There are new rules for independent auditors <br />when they are also performing management advisory services. Even though she believes <br />that our local auditors have procedures in place to segregate those functions so that they <br />would be independent, it works more clearly independent and the appearance of <br />independence if you have one entity doing the CAFR assistance preparation, preparing <br />the financial reports with our records and someone else doing the audit. It is a clear line, <br />so she is looking into that process. <br />3) Last year's CAFR, 2002, was distributed to Council on October 2. <br />4) The August revenue and expenditure reports and the summary report were distributed <br />to Council today. <br />5) In addition, a packet was distributed to Council today regarding income tax collection. <br />There was a 1 % increase in the income tax collection in September, bringing the total <br />over the prior year to date to $168,000 city-wide, of which 70% goes to the General <br />Fund, 15% to Permanent Improvement and 15% to Solid Waste and Recycling. The <br />6 <br />