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02-02-2012 SWC MINMinutes of the Sherburne/Wright County Cable Commission Thursday, February 2, 2012, 1:00 p.m. Monticello City Hall Present: Chair Myles McGrath, Commissioners: Don Levens, Cathy Shuman, Mert Auger, Phil Kern (1:10), Luke Fischer and Tina Allard. Alternate Commissioners Gina Wolbeck and Mary Huettl Absent: Commissioners Linda Hruby and Nancy Carswell Also present: Technology Consultant Blll Bruce, Jeff O'Neil, Monticello City Administrator, Attorney Bob Vose, and Video Production Coordinator Mark Davis 1. Call to Order Chair McGrath called the meeting to order at 1:00 p.m. 2. Approval of Minutes-November 3. 2011 MOVED BY COMMISSIONER SHUMAN AND SECONDED BY COMMISSIONER LEVENS TO APPROVE THE NOVEMBER 3, 2011 MINUTES. MOTION CARRIED 9-0. 3. Treasurer's Report Commissioner Auger stated he received a quote (from the City of Buffalo's auditor) regarding the performance of an audit for the Commission. He stated the audit seems high and questioned the Commission as to whether they wanted to complete one this year. The consensus of the Commission was to negotiate the cost of the audit proposal and come back to the May Commission meeting with an update regarding the audit cost. a. Financial Statements MOVED BY COMMISSIONER ALLARD AND SECONDED BY COMMISSIONER SHUMAN TO APPROVE THE FINANICAL STATEMENTS AS PRESENTED. MOTION CARRIED 9-0. 4. Attorney's Report There were no updates. 5. Equipment Report Mr. Bruce presented his staff report. He noted they had a soft opening of SWTV Channel 19 and plan a grand opening event on Apri121, 2012. He stated Charter is willing to do a bill sniffer regarding the channel promotion. He also stated he would like to order pizza for the grand opening event. It was noted that Channe176 has all the member city cable channels on it. Commissioner Auger suggested the Commission consider how it wants to move forward with equipment purchases in the future due to technology changes. He also questioned when the local cable channels would go to high definition. 020212 cable Page 2 0(3 Mr. Bruce discussed the changes in technology and the high costs associated with them. He also noted that current equipment is starting to age and need replacement. Mr. Kem stated he would like to see a written plan that outlines the basic expectation for each city within the next year. He noted it would also help the cities in being more transparent to its citizens. Mr. Bruce stated he would gather information together. He stated the coming year equipment replacement expenses would be approximately $75,000-80,000. MOVE BY COMMISSION AUGER AND SECONDED BY COMMISSIONER FISCHER TO APPROVE THE EQUIPMENT EXPENDITURES AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 9-0. 6. Programming Report Mx. Davis presented his staff report. He stated his focus has been heavy on sports but he'd like to do more community based programming. He stated video on demand for Channel 19 is in the works. Commissioner Auger stated he would like to see a video regarding the value of city services that could be used by all the member cities. Commissioners Auger and Kern will work out a script and assist Mx. Davis with the program. Commission Business a. Charter Communications Representative: Tom Bordwell (1) Update on Area-Wide Channel Mr. Bordwell was not present at the meeting. b. Suggestion for Audit Request of Franchise and PEG Fees Attorney Vose discussed the trend lately of cities completing an audit on cable companies and the results of some of the audits. He discussed the process and questioned the level of inquiry for the audit if the Commission decided to move forward with one. Mr. Vose noted that franchise agreements were renewed about six years ago and that Charter went through a bankruptcy and had some changes in their accounting practices. Mr. O'Neil distributed ahandout and discussed the deals that Charter is offering in their community. He questioned how these discounted rates are allocated as it relates to cable revenue. It was questioned if all cable providers would have to be audited. Attorney Vose stated they would not but it could be at the option of the cities with more than one provider if they want to perform an audit on them. MOVED BY COMMISSIONER KERN AND SECONDED BY COMMISSIONER LEVENS TO AUTHORIZE THE COMMISSION ATTORNEY TO PROCEED FORWARD WITH AN AUDIT, TO CHOOSE AN AUDITOR, AND TO KEEP THE CHAIR UPDATED ON THE PROGRESS. MOTION CARRIED 9-0. 020212 cable Page 3 of 3 c. 2012 Movie in the Paxk Schedulinn Movies in the park scheduling was determined. d. Howard Lake Discussion It was noted that a subcommittee of commission members met with Howard Lake and was waiting for more information from Howard Lake. It was also noted that their franchise agreement would need to be consistent with the current member tides agreements. S. Upcoming Meeting Dates The next commission meeting is scheduled for Thursday, May 3, 2011 in Big Lake. 9. Adjourn The Sherburne Wright Cable Commission meeting adjourned at 2:20 p.m. Minut prepared b Commission Secretary Tina Allard. Secretary, Tina Allard v Ch ' •, Myles cGrath