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&n <br />MEMO TO: MAYOR AND CITY COUNCIL <br />FROM: CLERK-ADMINISTRATO <br />DATE: AUGUST 31, 1984 <br />SUBJECT: NORTH SUBURBAN CABLE COMMISSION REQUEST FOR <br />CONTRIBUTION <br />Attached please find a letter from Roger Franke, Cable Administra- <br />tor for the North Suburban Cable Commission dated August 24, 1984 <br />communicating to the City of Mounds View the Commission's 1985 <br />Operating Budget and indicating that the City's contribution <br />to the Commission's 1935 operations would be in the amount of <br />$14,406.63. <br />Mr. Franke further indicates in his memorandum that this contri- <br />bution would be unnecessary if all of the member cities of the <br />commission approve the proposed amendment to the Cable Franchise <br />Agreement which stipulates that Group W provide the commission <br />r with $150,000 to fund their operation until the system is <br />operational. Should the contribution be necessary, Group W <br />will reimburse the member cities as an advance on the franchise <br />fees as we previously did in 1984 in an amount of $10,000. <br />In discussing this matter with Mr. Franke he has estimated that <br />the City could expect to receive an annual franchise fee in the <br />amount of $21,600 assuming a 40 percent penetration rate of all <br />households in the city. Taking that into consideration with the <br />$10,000 contribution already made which is an advance on our <br />franchise fees, the need for the North Suburban Cable Commission <br />to finance their annual operation, and the possibility that the <br />$14,000 contribution for 1985 would be necessary, the City of <br />Mounds View would not be receiving any franchise fees for the <br />first full four years of operation. The only impact that this <br />fact would have upon the City of Mounds View would be if we had <br />planned on using some of the franchise fees monies to fund the <br />City's cable TV activities. At this point those activities are <br />at a minimal level and it is difficult, if not impossible, to <br />anticipate what they might be as the system becomes operational <br />and the local access programming activities take hold. <br />On the other hand, should the City not pay these contributions <br />we would no longer be a member of the North Suburban Cable <br />Commission and on our own with respect to overseeing the operation <br />of the Cable System in the City of Mounds View which I feel would <br />be detrimental to us in that the oversight of the system in <br />operation of a local access programming function would require <br />