04/14/2003 Council Packet - Laserfiche WebLink

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AGENDA ITEM 4B STAFF ORIGINATOR: Linda Waite Smith, City Administrator MEETING DATE: April 14, 2003 TOPIC: Consider Adopting Resolution No. 03 -52 Amending Joint Powers Agreement for North Metro Communications Commission VOTE REQUIRED: 3/5 BACKGROUND: The North Metro Telecommunications Commission is a Joint Powers Organization representing the cities of Blaine, Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes and Spring Lake Park in matters concerning cable television franchising, franchise enforcement, cable television regulation and the operation of the community media center located in Blaine. Within the past year a new franchise agreement with AT &T Broadband was negotiated. The new agreement requires AT &T Broadband to pay an annual franchise fee equal to 5% of gross revenue. The fees are used by the member cities to fund the Cable Commission budget, with any remaining funds dedicated to each city's cable related expenses. The Media Center is funded through a monthly fee on the bills of cable subscribers and annual grants from the Cable Commission budget. The Media Center and Commission offices are currently renting space on a month -to- month basis at 1630 101st Avenue NE in Blaine. The space is inadequate and an evaluation by an independent consultant concluded that purchasing the space and remodeling it would be less cost effective than building a new facility. The estimated cost of a site, building and necessary equipment is $1,735,000. The debt would be repaid over 15 years with franchise fees. Fees in excess of the debt service would be returned to member cities, prorated on their percentage of subscribers to the cable system. In order for the Cable Commission to issue bonds for a new facility, all seven member cities must agree to amend the joint powers agreement to include the authority for the Cable Commission to do so. ANALYSIS: Lino Lakes has budgeted about $18,000 annually for cable franchise revenues. Actual revenues have been higher but have been used for the lengthy legal process involved in negotiating the new franchise agreement with AT &T Broadband. •