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B. Franchise Renewal UpdateMr. Todd Gerhardt October 16, 2012 Page 3 Staff recommends that the PEG fee remain in place in this franchise agreement. Following is a list of other items that staff would like to accomplish through the renewal process: ➢ Clarify requirement for cable to be installed in new developments concurrent with other utilities ➢ Possibility of extending service to areas currently un- served (mostly south of Pioneer Trail) ➢ Require Mediacom install a new modulator for Channel 8 broadcast ➢ Require Mediacom to broadcast Channel 8 in HD ➢ Require Mediacom to provide 10 hours of Video On Demand space for PEG programming use. ➢ Clarify calculation of the franchise fee. We would like to better understand how bundling and bad debt are addressed. We would also like Mediacom to pay for the franchise fee audit if an error that exceeds 5% of annual revenue is discovered. ➢ Clarify that City Code has precedence over franchise agreement. PROPOSED TIMELINE November - December 2012: Moss & Barnett draft franchise documents January — February 2013: February 2013: February — July 2013: August 13, 2013: August 31, 2013: RECOMMENDATION City's review & modification of the documents Finalize documents and forward to Mediacom Final negotiations Adoption of franchise documents Existing franchise expires Staff is looking for feedback on the outlined goals and timeline from the city council. No action is required at this time. ctc technotogy energy engineering & business censu,t.ing July 10, 2012 Via Electronic Mail Laurie Hokkanen Assistant City Manager City of Chanhassen 7700 Market Blvd. PO Box 147 Chanhassen, MN 55317 Re: Public and governmental access facility and equipment review Dear Ms. Hokkanen: The City of Chanhassen contracted CTC to review the current public /governmental access facility in the City Council Chambers and the associated non - digital production equipment. The following are our the findings and recommendations on facility and equipment upgrades and updates needed within the next franchise period, as well as cost estimates for these changes. Current Access Facilities and Equipment The current public and governmental access ( "access ") facilities are primarily set up to record meetings that occur in the City Council Chambers. The Council Chambers is equipped with three Panasonic robotic cameras controlled from the adjacent master control room. Audio feeds are processed through a recently upgraded Biamp audio processor. Additional video feeds come from an Elmo document camera, computers being used for presentations, and a portable Sony camcorder for other video shots. All of the video and audio devices support only analog signals, which was the standard for audio and video when the equipment was purchased. Video feeds are selected and routed using a Panasonic production switcher. Graphics are added to meetings using a Compix character generator. When meetings are not being shown on the channel, a Tightrope Cablecast system is used to generate a bulletin board of local community news. A digital recorder and VHS and DVD recorders are used for playback and recording of meetings. Based on our experience, the City's entire access production system is consistent with other small access programming systems that were purchased and installed five to seven years ago. We note, though, that the City has also made some upgrades (e.g., new audio processors) that have improved the quality of production. COLUMBIA TELECOMMUNICATIONS CORPORATION Minnesota Office • 3939 Quail Avenue N • Robbinsdale, MN 55422 • 763 535 4565 Headquarters • 10613 Concord Street • Kensington, MD 20895. 301 933 1488 www. CTCnet. us City of Chanhassen Review Page 2 Recommendations for Future Upgrades Given the age and type of technology used in the existing access production system, and its likely lifetime, the City will need to completely upgrade its access production equipment in the coming years. This is partly because high- definition (HD) video has become the new standard, and analog video is quickly disappearing from the video production landscape. It is also become increasingly more difficult to maintain analog systems as manufacturers stop producing analog equipment. (On the positive side, the price of HD equipment is Tess than comparable analog technology of previous years.) We recommend that the City upgrade its entire video production system to HD as a single upgrade. Consolidating the upgrade will reduce the complexity and long term cost of operating the system, relative to attempting to incorporate some new HD equipment into an environment with other analog equipment. A new production system would use hard drives for storage and playback, eliminating the need for VHS and DVDs (except for archiving purposes). A new HD system would also facilitate live streaming and video -on- demand functions, which will enable meetings to easily be accessed on the Internet. We also recommend that the City upgrade the lighting system in the Council chambers to increase video quality. Lighting is critical for improving HD video quality; a new lighting system would also give more control over Tight levels in the Chambers. Access Equipment Cost Estimates Taking into account the current state of the access equipment and the recommended upgrades, we have developed budgetary estimates for PEG equipment costs for the next ten years. It is important to note that this is only a potential projection of costs, as technology and City needs will continue to change over the next ten years. Assuming that the City will do a complete upgrade to HD over the next three years, we estimate a budgetary cost of $350,000, including the upgraded lighting system in the Council Chambers. In addition to the cost of the upgrade, we anticipate the City will need to spend approximately $550,000 on maintaining and upgrading the PEG production systems over the ten -year period, for a total of $900,000. This cost includes the replacement of the production equipment every five to seven years. In addition, the presentation equipment in the Senior Center and Conference Room will need to be upgraded and replaced. City of Chanhassen Review Page 3 Our complete budgetary estimate is included as an attachment to this report. Please feel free to contact Eric Wirth, Senior Engineer, at 301.933.1488 or Cheryl Johnson, Senior Analyst, at 763.535.4565 with any questions, or to discuss our overall assessment. Sincerely, CEO /Director of Engineering City of Chanhassen Review Page 4 ATTACHMENT 1 City of Chanhassen Budgetary Access Equipment Projections City of Chanhassen Review Page 5 City of Chanhassen Budgetary Access Equipment Projections Functional Item Budgetary Estimate Years 1 -2 Years 3 -4 Years5 -6 Years 7 -8 (ears 9 -10 HD Robotic Cameras $40,000 r 3 0 0 r 0 3 HD Camcorder $8,000 r 1 r 0 0 0 1 HD Document Camera $4,000 r 1 0 0 0 1 HD Video Router $12,000 1 r r 0 0 r 0 1 r r r HD Production Switcher /Camera Control /Character Generation System $35,000 1 0 0 1 0 HD Encoder /Playback System $75,000 r r 1 0 0 1 0 Analog to Digital Converters /Audio Embedders $1,200 r 8 r 0 0 r 0 8 HD Input /Output Monitors $2,200 r 4 r 0 0 0 4 HD SDI Embedded Audio Monitor $7,500 r 1 r 0 0 r 0 1 Digital Audio Processor $8,000 r 1 r 0 0 P 0 1 Council Chambers Control System $15,000 r 0 r 0 1 0 1 Video and Audio Recorder $3,000 1 r 0 0 r 0 1 Council Chambers Monitors $2,500 r 0 4 r 0 0 0 HD Projector $3,500 r 0 2 • 0 0 0 HDScalers $2,000 r 5 r 0 0 r 0 5 Hearing Assistance System $4,000 0 1 0 0 1 Microphones $800 r 0 0 12 0 0 Speakers $3,500 r 0 r 0 30 0 0 Audio Amplifiers $1,200 • 0 0 3 0 0 Council Chambers Lighting System $30,000 r 1 r 0 0 r 0 1 Replacement Lights $1,000 r 0 r 2 r 2 r 2 r 2 Future Technologies Budget $20,000 r 1 0 1 1 r 0 $350,900 $23,000 $155,200 $132,000 $241,900 Total Equipment Budget $903,000