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 Once the City withdrawn from the JPA on June 30, 2018 the City will retain 100%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