2016-02-24 CC Minutes - Approved

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City of Centerville Council Meeting Minutes February 24, 2016 southeasterly portion of the map decreasing the flood zone along Clearwater Creek. Engineer Statz stated that the benefiting property owners agreed to assessments associated with the project, FEMA modified the City’s Flood Zone Map and the City approved Ordinance #73, Second Series amending Chapter 155, Flood Damage Prevention in November, 2015. 2.North Metro TV Equipment Upgrade Project Summary a.Res. #16-011 – Amendment of the Amended Joint & Cooperative Agreement for Administration of a Cable Communications System to Amend the Commission’s Authority to Issue Bonds, Obligations and Other Forms of Indebtedness and to Modify the Member Cities’ Use of Certain Franchise Fees b.Res. #16-012 – Concurring in the Issuance of G.O. Capital Notes, Series 2016A to be Issued by the City of Circle Pines, Minnesota and Authorizing Execution of a G.O. Capital Note, Series 2016A and Levying a Tax for the Payment Thereof Administrator Ericson stated that over the past several months both the Commission and Operations Committee have been discussing equipment upgrades due to failing equipment and the delivery of high definition television capabilities several years ago by Comcast and now Century Link. Administrator Ericson introduced Ms. Heidi Arnson, Executive Director North Metro Telecommunication Commission. Ms. Arnson stated that some of the Commission’s equipment was originally provided by Charter Communications through the original Cable Franchise Agreement or is over 13 years old and has exceeded its useful life and is analog or standard digital (SD). Ms. Arnson stated that as Council is very aware, most televisions are high definition (HD) (wide screen capabilities and higher picture resolution), 73% of Comcast subscribers pay for high definition services and 100% of CenturyLink subscribers will have high definition services. Ms. Arnson stated that with the Commission’s current equipment, their programming is not taking advantage of the services being provided to consumers and their product has a substandard appearance. Ms. Arnson stated that following an equipment replacement analysis it was determined to upgrade Master Control, $583,000; upgrades within the production truck and, $786,000 and replacement of the truck itself, $200,000; two (2) studios, $605,000. Ms. Arnson stated that the debt for the construction of the NMTV building was recently paid off and capital expenditures for video equipment over the past five years have averaged $198,000/year. Ms. Arnson stated that the Commission would have funds available in the amount of $388,000/year if budgeting at the same level as previous years and it was most cost effective to replace all equipment at once. Ms. Arnson reported that the City of Circle Pines is willing to bond for the upgrade allowing the spreading out of the payments across ten years and that the payment would be $226,000 annually. It also allows for annual yearly maintenance purchases of field cameras, edit computers, microphones, etc. which are needed even with the high definition upgrades. Ms. Arnson stated that the Commission recommends that member cities adopt the resolutions amending and restating the Joint Powers Agreement and setting terms for repayment of the Page 4 of 7