9.c Forest Lake Cable Commission
Staff Report
Date of Meeting: June 21, 2016
To: City Council
From: Neil Soltis, Administrator
Re: Withdrawing from the Forest Lake Cable Commission
Background: At previous city Council workshops, the Council has discussed withdrawing from the
Forest Lake Cable Commission for a number of reasons including:
The expiring lese on the facilities rented by the Commission,
Staff transition including the resignation of the Executive Director and Office Manager,
Lack of growth in Scandia cable subscribers (21 net subscribers added in past 5 ½ years)
Low penetration rate of cable subscribers (14% of households)
Market place alternatives to cable programming
Changing technologies available to broadcast videos of meetings and events
Lack of interest from residents in the citizen position on the Commission Board
Issue: Should the City of Scandia withdraw from the Forest Lake Cable Commission?
Proposal Details: Approval of the Resolution would initiate the process of withdrawing from
the Forest Lake Cable Commission. The effective date of the withdrawal would be two (2) years
after the withdrawal notice is provided to Chair of the Cable Commission. The financial impacts
of this action are addressed below. After the withdrawal notice is given, the City can seek to
utilize the available portion of the franchise fees in order to broadcast / record public meeting
that can be viewed by the whole community. The other Commission members, the cities of
Columbus and Forest Lake are also considering their participation in the Commission. In the
event that either of those cities elect to withdraw, this will trigger a dissolution of the
Commission and the initiation of up to a 6-month dissolution period during which the
Commission will wind up its affairs. Based on the discussion at the June 9, 2016 City Council
workshop for the 3 member communities, there is an interest in exploring option to provide
meeting coverage and programming using an alternate structure if the Commission is disolved.
Fiscal Impact: The City current receives approximately $11,000 per year in franchise fees from
Midco for the use of rights-of-way in the City. The City currently uses 100% of those funds to
support the Forest Lake Cable Commission’s operation of the Lakes Area Television. If the City
withdraws from the Commission, the City must utilize a minimum of 88% of the franchise fees
collected for 2 years from the date of the withdrawal notice to continue to fund the
Commission. After the effective withdrawal date (2 years after the withdrawal notice), the City
will retain 100% of the franchise fee revenues.
Options:
1. Approve the resolution withdrawing from the Forest Lake Cable Commission
2. Take no action and remain a member of the Forest Lake Cable Commission
Recommendation: Option 1 – approve the resolution withdrawing from the forest Lake Cable
Commission
CITY OF SCANDIA
RESOLUTION NO. 6-21-16-03
RESOLUTION WITHDRAWING FROM THE FOREST LAKE CABLE COMMISSION
WHEREAS, The City of Scandia entered into a Joint and Cooperative Agreement with the
Cities of Columbus and Forest Lake in 2007 to become a member of the Forest Lake Cable
Commission; and
WHEREAS, The Joint and Cooperative Agreement, as approved in 2007, allows for
individual members cities to withdraw from the Commission upon providing two (2) years
advanced written notice to the other Member Municipalities; and
WHEREAS, The Joint and Cooperative Agreement, as approved in 2007, also provides for
the dissolution of the Commission by mutual agreement by two -thirds of the Member
Municipalities; and
WHEREAS, as a member of the Forest Lake Cable Commission, the City of Scandia has remitted
100% of the franchise fees the City received from Midco, Inc. for the support of the Forest Lake
Cable Commission,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scandia,
Washington County, Minnesota that, under the terms of the 2007 Joint and Cooperative
Agreement, the City of Scandia is exercising its option to provide two (2) years advanced notice
of its withdrawal from the Commission effective June 21, 2018.
BE IT FURTHER RESOLVED, that the City Clerk is authorized and directed to provide a
certified copy of this resolution indicating City’s the intent to withdraw from the Forest Lake
Cable Commission two years after the date of this resolution to each of the other Member
Municipalities and to the Chair of the Forest Lake Cable Commission.
BE IT FURTHER RESOLVED, that in the event of dissolution of the Commission before the
withdrawal date, City Council has an interest in cooperatively exploring with the other
Commission members options to provide for the broadcast of government meetings and City
events for the benefit of all of the resident of the City of Scandia.
BE IT FURTHER RESOLVED, that, effective on the withdrawal notice date, the City’s
support of the Forest Lake Cable Commission shall be reduced to the 88% of franchise fees
received in accordance with the Joint and Cooperative Agreement.
Resolution 6-21-16-03
Page 2 of 2
PASSED AND ADOPTED BY CITY COUNCIL OF THE CITY OF SCANDIA this 21th day of
June, 2016.
______________________________
Randall Simonson, Mayor
ATTEST:
_________________________________
Neil Soltis, Clerk/Administrator