Loading...
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