HomeMy WebLinkAboutDecember 6, 1999
PRIOR LAKE CITY COUNCIL
WORK SESSION
Monday, December 6,1999
5:30 p.m.
Fire Station City Council Chambers
(1) Cable Television PEG Support
a) Grant for Equipment
b) Subscriber Fee
c) Franchise Fee
(2) Inspection and Discussion of Tanker Truck
(3) Adjourn (6:50pm)
16200 lliW699rDOa\ve. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
IMORAN lJM
7''UJIn tke 'D~ 06 FRANK BOYLES
December 3, 1999
TO: Mayor Mader and Councilmembers
SUBJECT: December 6th City Council Work Session
Attached is the Work Session agenda which consists of two items. The background material
for each is shown below:
Cable Television Public, Educational. Government (PEG) Support: As the Council is
aware, we have successfully negotiated a new Franchise Ordinance and Franchise
Agreement with Mediacom LLC who is the successor to Triax Cablevision. As part of the
Franchise Agreement, we have negotiated a one-time equipment replacement grant and a per
subscriber support fee to be paid annually for the life of the Agreement.
When the Franchise was initially awarded, it included an agreement that the cable company
would provide funds annually to support a half-time local cable access coordinator position.
This position was (1) to assist community members wishing produce video productions for
local broadcast, (2) to operate the studio, and (3) to operate the public, governmental and
educational cable casting channels. At that time, the school district also agreed to fund half a
position to support school district programs so that a full-time person could be hired. The
district also agreed to provide a location for the studio in the senior high and to provide
maintenance and utilities for the studio with the understanding that the studio would also be
used for school programs when not used for community public access. It was agreed that the
school district would act as the employer and financial agent for the position.
The cable television issues to be discussed this evening are based upon whether the City
Council still believes that the existing method of providing public access television continues to
be acceptable. Fred Blaisdell and Jim Shindler will be present from the school district to
summarize the services included under public access and to answer any questions
Councilmembers may have.
Equipment Replacement Grant
The original Franchise was granted more than a decade ago, and provided a grant to establish
a public access studio and equipment at the high school. With few exceptions, the equipment
used today is the same equipment provided under the initial grant. The studio equipment
includes the studio lights, microphones, cameras, tripods, editing, playback and character
generator equipment used to produce local public access programs. The equipment is so out-
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
December 3, 1999
2
dated that often, rather than repair equipment, it is more economical to obtain other used
equipment which is newer than that possessed by the district.
Before the negotiations began with Triax, I asked Jim Shindler, the Public Access Coordinator,
to prepare a list of equipment to replace the existing equipment. The list assembled totaled
$77,000, which I shared with Triax. As part of the Franchise Agreement, TriaxlMediacom did
commit to providing a capital grant of $77,000 to be awarded one-half at the time the
Franchise Agreement was executed, and one-half 12 months from that date. In exchange, the
City agreed that TriaxlMediacom would no longer be responsible for repair or replacement of
this equipment.
The City Council needs to determine whether the entire grant amount should be provided to
the district. I do not believe that the City Council desires the City to assume the responsibilities
of public access. I believe it is most appropriate for the City to pass along the entire capital
grant to the school district with the understanding that the school district will be responsible for
managing the money in a fashion which provides funds for replacement of the equipment
during the life of the Franchise.
Per Subscriber Fee
To provide funding to support the public access portion of the coordinator and public access
operations under the new Franchise, the City has negotiated provisions in the new Franchise
Agreement which provide for a per subscriber fee of $.65 per month to support public
education and government access. That fee may be increased over the life of the Agreement
to $1.20 per month, but no more frequently than every two years. Based upon an estimated
3000 subscribers, this fee will generate $23,400 per year. The school district was receiving
$17,000 per year from the previous company.
Assuming that the Council does not wish to relocate the public access studio to City facilities
and hire an employee to support the facility, it would be appropriate to continue the
contribution to the school at the 50% level. The school indicates that about 50% of the public
access coordinator's time is devoted to public access, while the other 50% is devoted to
school related affairs.
If the Council concurs, I recommend that we require the school to acknowledge that the City
is in no way responsible for the supervision of the position or any other costs for public access,
and the City would continue to expect complete support of the local government access
channel by this position.
Franchise Fee
Unaffected by the new Agreement is the 5% franchise fee which amounts to about $70,000
annually. This fee is collected from the company in exchange for the company's right to use
City right-of-ways and the maintenance expenses the City incurs associated with the right-of-
ways. The entire franchise fee is deposited in the general fund budget.
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December 3, 1999
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Conclusion
If the Council concurs with the above recommendations, we will work with school district staff
to prepare the appropriate documents which embodies the above understandings.
Inspection and Discussion of Tanker Truck: The Fire Department Tanker Truck Committee
will be present at the work session to show the Council the existing tanker and explain their
recommendation for the tanker truck found in agenda item 8A.
cc: Suesan Lea Pace
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