02-22-2016 Council Packet - Laserfiche WebLink

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everything we shoot is in 16x9, malfunctioning and obsolete tape decks for recording programs, which then need to be converted to a digital file - doubling the time it takes to record a final product, tripod heads not rated for the weight of camera/teleprompter combinations, and aging cameras experiencing growing color/phasing/white balancing issues. The recommended upgrades for two studios will cost approximately $605,000. Finally, the production truck, itself, is experiencing space, mechanical, power, heat, cooling, security and safety problems. We are including a recommendation to replace the production truck with a slightly larger model that will meet our future space, safety, and production needs, as a part of the equipment upgrade proposal. A new integrated production truck with internal racking and work space, external storage, roof safety rail, power generator, heating, and double air conditioning units will be approximately $200,000. Financing Upgrading the facility all at once would be most cost effective and result in the best product. It would also result in a stable equipment line -item during budgeting, instead of large, yearly variations. (Although annual maintenance purchases of items such as field cameras, edit computers, microphones, etc. will still require budgeting.) The Commission recently paid off it's debt for the construction of the NMTV facility. That annual payment was approximately $190,000. In addition to that capital expenditure, annual capital expenditures for video equipment have averaged $198,000 over the last five years. Adding that together, the capital budgeting averaged $388,000 over the last five years. The bond payment for the HD equipment loan will be $226,000 annually. This is considerably less than has been paid, for capital expenses, in the past five years. By bonding for the upgrade, and spreading the payments across ten years, the annual capital payment are actually kept quite low. If the equipment systems were to be upgraded individually we would need to budget well over $226,000, annually, for each upgrade. The City of Circle Pines may agree to bond for the equipment purchases, provided the Member Cities agree to the financing terms. Bonding through Circle Pines would result in lower closing costs, a better interest rate, and the ability to purchase the equipment tax free. This will result in considerable savings for the Commission and Member Cities. Conclusion It is the recommendation of the North Metro Telecommunications Commission that the Member Cities adopt Resolutions amending and restating the Joint Powers Agreement, and setting the terms for repayment of any equipment bond through the City of Circle