HomeMy WebLinkAbout10/13/1997 - Burnsville/Eagan Ad Hoc Communications CommitteeBURNSVILLE/EAGAN AD HOC COMMUNICATIONS COMMITTEE
October 13, 1997
6:00 p.m.
Eagan City Hall — Conference Rooms 2A and 2B
AGENDA
1. Review Draft Findings and Recommendation
2. Other Issues
JOINT BURNSVILLE/EAGAN CITY COUNCILS AND
TELECOMMUNICATION COMMISSION MEETING
October 28, 1997 - 7:00 p.m.
Burnsville City Hall
Back round
The Telecommunications Commission has met several times in 1997 dealing with one of its
priority goals: the possible transfer of Public/Education/Government (PEG) access operations
from the current cable company to member cities' control. The Commission produced the
following recommendations:
1) To transfer the operation of PEG access from Meredith Cable to a separate entity.
2) To establish a non-profit entity to operate Burnsville/Eagan PEG access, with
representation on the non-profit board comprised of the same members that serve on the
BETC, but would serve in a separate legal capacity. The Member Cities would manage
the non-profit composition, based on appointments to the Commission.
3) To retain the current company's access personnel with adjustments as necessary.
4) To retain the access operations at the existing facility/site, pursue facility expansion with
the current owner, and to assume the costs for the facility's rent as part of the operations
expense.
5) To transfer the operations in an expeditious manner as soon as reasonably possible.
6) To assume the current operations, and over the next year, have the new organization (non-
profit) define 1-3 year goals for new community programming philosophies that balance
staff and volunteer productions by incorporating partnerships between government and
educational institutions.
7) To develop an operational budget within the constraints of the PEG fee and Member
Cities' appropriated franchise fees.
8) For staff and legal counsel to negotiate final terms for transfer with the cable company.
2. Separate from the Telecommunications Commission, a joint Burnsville/Eagan
Communications Committee was appointed to review overall cities -wide communications.
The charge for this group was to identify cooperative joint communications opportunities for
the two cities and the best roles for PEG and the Telecommunications Commission to support
those communications. This group produced the following recommendations:
1) Transfer the operation of PEG access to member cities' control through existing
Commission/City structure without increasing non -cable revenue funding.
2) Utilize existing cable company staff and resources during a 1 year transition period.
3) Improve both Cities' communications cooperation throughi6�6
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=> Joint community news show
=> Joint technical gjxus�ng &
� Joint message programming-
=> Joint training
=> Joint event promotion
=> Joint marketing/communications plan for cable programming
The attached documents provide more in depth analysis of the proposed takeover of PEG access.
Action Re uested
1. Direct staff to negotiate the transfer of PEG access to member cities' control; and
2. Direct staff to provide PEG management and operations plan for Councils' approval.
CITY_OF_BURNSVILLE
BACKGROUND
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PEG ACCESS TRANSFER REPORT
April 24, 1997
The Member Cities' franchises require the provision of support, operations and management of
public and PEG access by the cable operator. Since 1986, the Commission and the cable
company have considered the possible transfer of PEG access responsibilities five times. In
1995, the Conunission/Member Cities and Meredith Cable adopted the PEG Fee Memorandum
of Understanding, which provides for the continued support and funding of PEG access for an
additional 15 years beyond the expiration of the existing franchise.
Since last November, the Commission has again been discussing the possible transfer of PEG
access. The Commission established Goal #1 for 1997, "To research and develop a
recommendation regarding the transfer of public access." The Commission has conducted three
worksessions on this issue. At the Commission's March 27 worksession, the Commission
requested staff to prepare for its April regular meeting, a report outlining the key policy issues
with recommendations based on the Commission's previous discussions.
DISCUSSION
For the purposes of public discussion, the remaining portion of this report is based on the
assumption that the Commission will first recommend the transfer of PEG access from the cable
operator to another entity. Please note that to date the Commission has not formally
recommended this action, and this assumption in no way predisposes the Commission to take
this action.
With this assumption, there are numerous operations/management policy issues that require
further discussion and resolution. The policy issues include: form of governance, staffing,
location, timing of transfer, who is specifically responsible for public, educational and
governmental programming, and funding. This report will provide an analysis of each of these
issues, with recommendations based on staff's observations provided by past Commission and
Member Cities' staff discussion.
Non-profit: Reduction/removal of legal liability exposure for Member Cities; not subject to sales
tax, nor public sector compensation requirements, which would result in savings; and, not subject
to other governmental restrictions such as open meeting laws.
Public Body/Cities: Eliminates establishment of an additional bureaucracy; more direct control
by Member Cities; lessens chance for conflicts and operations disagreement between non-profit
and Member Cities; and, while a non-profit would primarily focus on PEG access activities, the
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PEG Access Transfer Report April 24, 1997
Member Cities may wish to explore broader communication activities and applications, and
therefore retain more flexibility in managing a more comprehensive communications "center".
Governance Recommendation: At this point it appears to be too premature for the Commission
to provide a recommendation concerning this item as there are certain policy issues that will
require discussion by the Member Cities. Some of the policy issues are: 1) what responsibility
do the Member Cities wish to have over the programming/communications content; 2) what
distance is best for the Member Cities to maintain from public access programming content;
and, 3) what role is there for partnerships with the Member Cities and the school districts. The
appropriate form ofgovernance will be based on the Member Cities' conclusions to these policy
questions. As such, there is no recommendation provided.
Retention of Current Staff. Provides smoothest transition as current staff is familiar with
operations, volunteers and communities; avoids production interruption; allows for director to
review their job performance under new direction/management; and, yet still allows for
personnel adjustments as necessary to meet new demands.
Hire New Staff: Sweeps clean past personnel problems, if any, and allows for new start; hire
"best" qualified regardless of previous employment; and, current staff has option to apply for
new positions.
Staffing Recommendation: In order to provide a timely and cohesive transition, it is best to
retain current personnel, plus add new position as listed in 'funding " section, with personnel
adjustments as necessary based on performance.
Existing: Current access facility site is readily accessible for both communities, on the border;
communities are familiar with location; no down time for move; no expense for move and
relocation of master control; eliminates any alternate "host" site from assuming "ownership" of
operations; hours of operations are easy to control; however, current site costs approximately
$65,000 per year, and requires probable expansion of current facility.
Relocation to Alternate Site(s): Alternate site option could be the Eagan and Burnsville High
Schools, other schools, Burnsville and Eagan city halls, or other commercial rental property; it is
possible the schools would provide free space with agreement for student use during day and
open to public at "off' hours; could provide for new student volunteer opportunities; however,
based on other access operations observations the host site sometimes develops an "ownership"
of operations making it difficult to retain public availability and identity; and there would be no
central identifiable location for the operations.
Location Recommendation: To avoid potential political site conflicts, retain a central core
location accessible to most, and to provide minimal disruption, at least for the interim, remain at
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PEG Access Transfer Report April 24, 1997
the current existing location and pursue facility expansion with current owner. Assume costs for
facility rent as part of operations expense. The school .rites are always a future option.
Summer/July 1: Current owner is a known entity and any delay may require completing transfer
with the unknown new owner and possible new management; company's fiscal year is July 1
and would provide a clean transfer; with all of the matters before the Commission and staff
during the next year, the quicker this is done then more time can be focused on the other major
tasks; and, if the Cities are going to simply transfer operation as it exists, then just do it.
Fall/January 1: More time to prepare, especially if it is not a simple transfer of current
operations; transfer would be done on Member Cities' fiscal/calendar year which makes it easier
from cities' perspective; and, would allow for budgeting, not mid -year adjustments.
Operations Timing Transfer Recommendation: Depends on the other Commission
recommendations, as other than assuming current operations, would require too many
management issues to resolve by July 1, and even without those it may be too quick. Perhaps
earliest might be August 1.
Currently, public (P) access is completely managed by the cable operator, although supplemental
activities are funded by the Commission's Local Programming Budget. The Member Cities and
Commission are responsible for Government (G) access, yet the cable company assists with
programming. The school districts are responsible for educational (E) access programming, yet
public access volunteers provide the vast majority of programming currently provided on the
channel. This section of the report does not contemplate the religious or the library access
channels, which are assumed will be more fully discussed during franchise renewal.
Approximately 97% of all public access programs are produced by volunteers, with some
assistance provided by access staff. Past subscriber surveys have noted a desire by 70% of the
subscribers to have more "community" news and information programming on the cable system.
While there is also an interest by the Member Cities and educational institutions to provide the
same informational programming, there is a lack of resources either available, and/or dedicated
to provide it. "Community" programming can be provided by combining resources of both staff
and funding. The question remains, what mixture of resources accomplishes this? The following
provides three scenarios.
Continuance of Existing PEG Access Responsibilities: Volunteers will continue to produce what
they want, not necessarily what the subscribers want; access staff would continue to supplement
"missed" programming events; assume the governmental and educational programming would
continue to be, at best, minimal; and, current production costs, including staffing, would not
change much.
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BURNSVILLEXAGAN AD HOC COMMUNICATIONS COMMITTEE
PUBLIC VS. COMPANY PROVIDED PEG ACCESS
It is likely that a body other than the company can do a better job of
providing PEG Access to the communities. This appears to be one of the
unique circumstances where a motivated public provider will actually
outperform an under -motivated private provider.
• The cable company views PEG access production as a cost with no
revenue potential. The company is obligated to provide the service
through the franchise, but has no interest in seeing it succeed. If
access succeeds and generates increased demands for service, there
will be additional costs to the company without any increase in
revenue. The company maximizes its benefit by providing the bare
minimum of service acceptable under the franchise.
• It would appear that the communities can get more return on their
investment by having an access oversight body that is motivated to
have the enterprise succeed.
• In addition to providing more and better products with the existing
budget, the take over of PEG access offers the opportunity to add
incremental revenues in the form of pre -determined increases in the
PEG access fee paid by cable subscribers. As such, it need not cost the
cities' any additional tax dollars. In addition, the cities can determine
whether to commit any of their cable franchise fees to the
enhancement or expansion of operations.
• Because the Telecommunications Commission and City staff are
already in place, a take over of PEG access need not result in increased
bureaucracy. In addition, PEG access can be viewed as a public
enterprise with revenue potential.
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PEG Access Transfer Report April 24, 1997
Umbrella PEG Access Operations: New PEG access entity responsible for all PEG productions,
through combination of volunteer and staffing efforts; if new emphasis is on increased
"community" information programming, including government programming, with little or no
staffing changes, then either budget would require increase, or volunteer productions would need
to be decreased; the politics of balancing the educational programming efforts would be
difficult, as some schools and districts are currently providing programming, while others are
limited;
Hybrid PEG Access Operations: An emphasis would be on ensuring there is a commitment to
"community" information programming, while balancing volunteer productions; assume current
operations, and over period of time work out arrangements with government and educational
entities to facilitate, provide, assist, and/or coordinate their programming efforts; arrangements
could include assurance of government programs such as Cities' news programs, providing staff
to cover City and school "events", technical equipment maintenance, matching grants to
schools/districts for production equipment; it should be assumed this scenario would require
more staff and increased budget, with portion of it supplemented by franchise fees and perhaps
sponsorships.
PEG Access Operations ResponsibilityRecommendation: Assume current operations, and over
next year, have the new hybrid organization define 1 - 3 year goals for new community
programming philosophies that balance staff and volunteer productions by incorporating
partnerships between government and educational institutions.
Current Budget: Access facility's 1997 fiscal year's budget (ends June 30, 1997) - $254,000,
and $88,600 for access equipment replacement; Commission's Local Programming 1997 Budget
- $73,700; Member Cities cable production budgets - $50,000-60,000; no educational
institutions dollars included; therefore, total 1997 cable programming budget - $476,300.
Current Funding Sources: Member Cities combined 1997 franchise fees - $584,000; PEG fee -
$303,000, (based on an average 29,060 subscribers for the year); therefore, total funding -
$887,000.
Proposed Budget: Based on the assumption that the "hybrid" scenario operations would be
adopted; assume current Meredith operation's and equipment replacement budget for 1997 with
addition of secretarial support, new phones and computer systems, and increased facility space to
be determined, total - $425,000; assume personnel benefits at current level so existing staff feels
no negative impact of transfer and does not provide incentive to "jump ship"; develop 1998
budget incorporating new partnership production goals for first year of operation; 1998 budget
to be determined by August 1; for discussion purposes 1998 budget will include 1997 staffing,
salary adjustments to reflect comparable non-profit access operations, equipment replacement
schedule for access facility and city halls, increased emphasis on staff produced programming
which requires additional staffing of both part and full-time personnel; therefore, estimated total
1998 budget is approximately $600,000-650,000.
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CITY OF BURNSVILLE 612 895 4512
PEG Access Transfer Report
10/08 197 09:24 NO.065 06/06
April 24, 1997
Proposed Funding: Additional $50,000 provided from franchise fees this year to accomplish
necessary short-term transfer activities; increase PEG fee by $.20 on January 1, resulting in
annual first year increase of $70,000; total PEG fee for 1998 would be approximately $375,000;
franchise fees provided to PEG operations by Member Cities would make up difference,
approximately $140,000 per city.
Budget & Funding Recommendations: 1997 budget increased by approximately $50,000, funded
from franchise fees; 1998 budget approximately $650,000, funded f rst from PEG fee and
remaining portion equally provided from Member Cities franchise fees.
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CURRENT PEG EXPENSES
& FUNDING SOURCES
Expenses
1997 Meredith Cable's Access Budget
Approximately - $300,000
(Includes 6 full-time access staff's wages/benefits, rental of office &
production space, and equipment)
1997 BETC's Local Programming Budget
1997 Budget - $73,700
(Includes 1/2 of cable coordinator's annual wage/benefits, public meeting
cablecasters wages, advertising/promotions, production grants, volunteer
recognition event, limited professional services, and miscellaneous
services/charges.)
1997 Member Cities
Approximately $60,000
(Includes communications coordinator's wagesibenefits as related to gov't
access programming and equipment repair/replacement)
Funding Sources
1998 PEG Fee
$1.10 per subscriber per month
x 30,000 subscribers projected as of 1/1/98
Equals - Approximately $400,000 per year
Member Cities 1997/98 Franchise Fees
Burnsville - `97-$296,000, `98 Est. - $310,000
Eagan - `97-$290,000, `98 Est. - $309,000
Subscribers Viewing Desires
The BETC has conducted 3 bi-annual subscriber surveys since 1991. They are
currently in the process of conducting the fourth, with the results of that survey due
in December. In all of the surveys, there have been consistent tracking questions
regarding the subscriber's viewing habits for local programming, as well as what
they would like to see on the local channels. The following are four key questions
regarding what the subscriber would like to see and/or values concerning
Burnsville/Eagan local programming.
1)
2)
3)
4)
How important is local programming.to you?
(Very/somewhat important responses)
`91 - 80% `93 - 84% `95 - 78%
How interested are you in watching city informational/educational
programming? (Very/somewhat interested responses)
`91 - 61% `93 - 71% `95 - 70%
How interested are you in watching local community news?
`91 - 47% `93 - 60% `95 - 63%
How interested are you in watching school activities and events?
`91- 35% `95 - 45% `95 - 52%