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7. Discussion of proposal from Lakes Area Television to provide production services Staff Report Date of Meeting: April 4, 2018 To: City Council From: Neil Soltis, Administrator Re: Forest Lakes Cable Commission / Lakes Area Television proposal for production services Background: Currently Lakes Area Television (LATV) produces video for Council meetings and community events under the joint power agreement (JPA) that created the Forest Lake Cable Commission. Under the terms of the agreement 88% of the franchise fees collected by Midco are remitted to LATV. Once the City withdrawn from the JPA on June 30, 2018 the City will retain 100% of the franchise fees. Additionally the City will retain the Public, Educational, and Government (PEG) fees that are remitted directly to LATV by Midco. LATV has submitted a proposal to continue providing production services to the City. Issue: Should the City contract with LATV for production services beginning on July 1, 2018 Fiscal Impact: In 2017 the City collected $13,736 in franchise fees. The 2018 budget that was approved provides for establishing a special revenue fund to account for the franchise fees and PEG fees. It should be noted that the PEG fees must be used for equipment associated with the production of video. Options: 1. Accept the proposal from LATV to provide production services at the proposed rates 2. Seek alternate proposals for production services 3. Take no action Recommendation: Option 1 – There is sufficient funding from franchise fees to cover the cost of producing the videos of the City meetings. Based on the per production costs proposed, the Council can determine other events or stories that LATV can be engaged to produce. 2018 Account Description Proposed BUDGET NOTES AND HIGHLIGHTS Revenues 10,200$ Expenditures -$ Net Revenues (Expenditures)10,200$ Fund Balance - January 1 -$ Fund Balance - December 31 10,200$ Other Income 36210 Interest Income 36230 Donations 38050 Cable TV Franchise Fees 7,700$ $1,200 / month - Midco, Frontier 38051 PEG Fees 2,500$ $1.50 / subscriber / month Total Other Income 10,200$ Total PEG Fee Revenue 10,200$ Personnel Services Total Personnel Services -$ Materials & Supplies Total Materials & Supplies -$ Contractual Services Total Contractual Services -$ Capital Outlays 560 Furniture & Fixtures 570 Office Equipment Total Capital Outlays -$ Total expenditures -$ FRANCHISE FEE Revenue 7,700$ Expenditure -$ Net 7,700$ Balance 1/1 -$ Balance 12/31 7,700$ PUBLIC, EDUCATION, AND GOVERNMENT Revenue 2,500$ Expenditure -$ Net 2,500$ Balance 1/1 -$ Balance 12/31 2,500$ SUB-FUND DESIGNATIONS CABLE TELEVISION REVENUE EXPENDITURES FUND BALANCE