Agenda Packets - 2018/07/02 - Laserfiche WebLink

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Page 3 The primary obligation of NSCC is to administer and enforce the franchise agreement with the cable company. The 2009 budget for NSCC was $4357496. With a current franchise term of 15 years, it can be asked why such a large budget is necessary for franchise oversight. NSCC and NSAC share certain personnel and operating expenses. In the past, the building expenses have been shared with 2/3 assigned to NSAC, 1/3 to NSCC. In January 2010, Finance Director Mark Beer analyzed the building usage and proposed a new allocation of operating expenses between NSCC and NSAC to reflect the activities of the two organizations. Mounds View proposed 2.65% of operating expenses assigned to NSCC and 97.35% assigned to NSAC. A subcommittee discussed the issue, and recommended a change in allocation of 80% NSAC/20% NSCC which was passed by the NSCC board at their May 6, 2010 meeting to take effect with the 2011 budget. This change shifts a portion of the building expenses from the NSCC budget, supported by city franchise fees to the NSAC budget, supported by PEG fees, but the cities are still supporting the access corporation through the mechanism of operating costs allocations. Concern about decreased PEG fees amounts in the next franchise period and the impact of this on the member cities. NSAC receives PEG support on the order of $3.50 per subscriber per month, a level that is much higher than the national and local norms for PEG support. Reports from other communities undergoing franchise renewal point to a strong trend for lowered PEG fees, in the neighborhood of $1.00 to $1.50 per subscriber per month. NSCC will negotiate for PEG fees in the 2013 franchise renewal, but may not be able to maintain the level of support for NSAC they have enjoyed in the past. There is concern that, in the event of reduced PEG funding, they would look to the member cities for support for the access corporation. The cities will need to decide the best use of the franchise fees to support city communication needs and if that means fiscal support of NSAC. Concern about future increased facilities costs resulting from NSCC and NSAC moving to a new building and the financial impact on member cities. NSCC and NSAC are in the process of relocating to a new facility. The operational costs will be significantly higher than at the current facility. With the uncertainty of future funding levels in the next franchise, there is concern that NSCC/NSAC will be looking to the member cities for additional support of operating costs. Opportunity to evaluation solutions for video playback, scheduling, and web streaming outside of the current fee for service arrangement with NSAC.