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99-741ORIGINAL Council File # 9q - �y� Green Sheet # oqq50 RESOLUTION Presented By Referred To OF SAINT PAUL, MINNESOTA 0 Committee: Date 1 WI-IEREAS, the City of Saint Paui (City) has awarded a cable franchise to MediaOne, Inc.; and 2 WHEREAS, the cable franchise requires that MediaOne provide capital fixuding for PEG access and community 3 proganuiiing; and 4 WI�REAS, MediaOne provided a$550,000 grant in 1998 far PEG access capita] equipment purposes and is 5 to provide an additional $50,000 grant for PEG access capital equipment purposes in 1997 dollars on July 31, 6 1999; and 8 WHEREAS, these PEG access capital funds haue been held by the City in an account for the Designated Access 9 EntiTy, which is account # 711-50041-9531, pending receipt of an Equipment Replacement and Upgrade Plan 10 (Equipment Plan) from the Designated Entity; and 11 WIIEREAS, Saint Paul Neighborhood Network (SPNN) is the City's Designated Entity and the City and SPNN 12 have entered into a Performance Agreement which was approved by the Saint Paul City Council as Council File 13 #99-561; and 14 WHEREAS, the Performance Agreement details SPNN's responsibilifies for producing community 15 prograimning and providing PEG access training, facilities, equipment, and PEG channel playback; and 16 WFIEREAS, SPNN needs ongoing equipment replacements and upgrades to fulfiil its progranuning mission and 17 the terms of its Performance Agreement with the City; and 18 WHEREAS, the City has received the Equipment Plan from SPNN and had the plan reviewed by an outside 19 technical consultant for purposes of advising the City on whether it should release the aforementioned funds to 20 SPNN to unplement its plan; and 21 WIIEREAS, the City's technical consultant issued a report regarding its evaluarion of the Equipment Plan, and 22 recommended that the City release the $550,000 and the $50,000 (in 1997 dollars) to SPNN to fund and 23 facilitate the Equipment Plan and a copy of the executive summary from that report is attached; and 24 WHEREAS, the City's Cable Communications Officer has reviewed the Equipment Plan and the consultant's 25 report and recommends that the aforementioned payments be made to SPNN to implement its Equipment Plan 26 and enable it to cany out its programming mission and fulfill its Performance Agreement with the City. 9.'l-'1`t\ 1 NOW, "THEREFORE BE IT RESOLVED, that the aforementioned $600,000 be paid to SPNN out of the City 2 account for the Designated Access Entity, account #7 1 1-50041-953 1, for SPNN to implement its Equipment 3 Plan. 4 5 6 7 $ 9 1� 11 12 13 14 15 16 17 ig 19 2� AND BE IT FURTHER RESOLVED, that SPNN sha11 provide an accounting to the City of the actual expenditure of these funds. 21 Adopted by Council: Date _�_v� � ' ) 22 Adoption Certified by Council Secretary 23 24 25 26 27 28 $�': �e �f��. — Approved by Mayor: Date hUf)/A '7 /�� -�-"�.�t-�-- By: Requested by Department of: _Technology & Management Services sY: �J�/Vl/L /�� ���� Approval Recommended by: Department of Financial Services Hy: �1� nl oe Reid, Budget Director Form A ove y City Atto By: Approved by Mayor fo,r�Submission to Council: ORIGINAL DepartrnenUoffice/council: Date Initiated ��_'�` Technology and Management Serv. July 27, 1999 Green Sheet No. 09950 Contact Person 8 Pfione: nfia ate InitiaVdate Holly Hausen � 1 Depazfinenf D'u � � t s c�cy co�,n��i Must Be on Council Agenda by (Date) Assi9� 3 Ciry Attomey yiJ City Clerk Number 2 Financial Se�v Dir. 6 £inancial Serv/acct� E�llgl7St 4 1999 p 4 Mayor (Or Asst _ Civil Service Commission Routing Order Total # of Signatvre Pages _(Clip All Locations for Signature) Action Requested: Approve resolution that provides PEG access capital fixnding in the amount of $600,000 to Saint Pau1 Neighborhood Network (SPNI�. Recommendations: Approve (A) or Reject (R) Personal Service Contracts Must Answer the Following Questions: 1. Has this personffirm ever worked under a contrad for this department? Pianning Commission Yes No CIB Committee 2. Has this person/firm ever been a city employee? Civil Service Commission Yes No 3. Does this person/firm possess a skill not normally possessetl by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initialing Problem, Issue, Opportunity (Who, What, When, Where, Why): The City's franchise requires MediaOne to provide capital funding for PEG access. It has provided this funding and the City has been holding it in an account for the Designated Access Entity pending receipt and review of an Equipment Replacement and Upgrade Plan from the Designated Entity, SPNN. The plan has been received and reviewed and has been found acceptable. AdvantageslfApproved: SPNN will be able to purchase equipment to improve its playback system, and other equipment used for educational access. public access, and community producrions. This will ensure equipment reliability and technical quality of productions. Disadvantages If Approved: None DisadvaMages If Not Approved: Necessary equipment replacements and upgrades would not be made, which would have a detrunentai impact on the community organizations, schools, and individuals, who use PEG access service provided by SPNN. Playback equipment upgrades would not be made, which would adversely affect the technical quality of City Channe118. Total Amount of Transaction: $ CostlRevenue Budgeted: �`s�lSl4is�: i f�t'a°Sv�xYC�"6 1s."-.;�lYB� Funding Source: Accouttt # 7ll-50041-9531 Activity Number. Financiailnformation:{Explain) J�� 2 $ ��� River Oaks Communicatz`on� CorpoYation--aq=�y�= Philadelphia O�ce: 5 Great Valley Parkway, Suife 282 Malvem, Pennsylvania 19355 Phone: (610) 648-3819 Fax: (610) 648-3815 E-Mail: ctrobinson@worldnetatt.net _ _ _ Other Office Locations:- .- - - _ - _ Coiorado Springs, Colorado Denver, Colorado REViEW OF THE SAINT PAUL NEIGHBORHOOD NETWORK EQUIPMENT REPLACEMENT AND UPGRADE PLAN Final Draft of July 23,1999 Presented by: Thomas Robinson Carson Hamlin River Oaks Communications Corporation EXECUTIVESUMMARY � - At the request of the City of Saint Paui; ("Cify"); RiverOaks Communicaiions C�rpocation; _�_ -_- ,; ("River Oaks'�, has reviewed a number of documents and engaged in follour-up discussions -- _ pertaining to Saint Paul Neighborhood Network's (SPNN) equipment implementation plans . overthe next decade to determine whether such plans are consistentwith SPNN's ob(igations under its Perforznance Agreement with the City, and with available funding provided through the MediaOne Cabie Franchise Agreement. As part of this review, River Oaks has specifically looked at SPNN's equipment upgrade and replacement plans for the first fivo years of the franchise, for which the City has currently received $550,000 from MediaOne and wiii soon receive an additional $50,000 in late July of this year, for a total of $600,000 in available funding. Afrer review of this information, overall we find that SPNN's equipment replacement and upgrade plans are consistent with the directions that the video/cablecast/broadcast industry are headed and where many access organizations are positioning themselves appropriately for fhe future. During our inifia( review, we noted a number of concerns which SPNN has since resolved. The following is an overview of River Oaks' concerns and the actions SPNN has taken to address them: • SPNN's projected spending budget appeared to exceed the availab►e franchise funding in the first two years. SPNN adjusted its purchase timeline to properly correspond with franchise disbursements. • SPNN's plan regarding the repiacement and upgrade of equipment devoted to Educationai Access appeared to be insu�cient in light af ifs stated goals and Agreement with the City. Accordingiy, River Oaks recommended that SPNN develop additional capabilities for Educational Access, such as a mini-mobile or "suitcase" studio and a hot-line studio. SPNN has responded to this recommendation by adding additional funds (approximately $16,000) for Educational Access. It has also indicated that its existing suitcase studio can be 1 � qg-��t� promoted more heavily, and be made more accessibie, forEducationat Access =.-_- use. !f has also agteed to evaluate fhe need for a hoT-line studio ir� the iuture: =-=.-- . SPNN's allocation of a$30,000 reserve over the I"rfe of the franchise appeared too small an amount to help ensure that adequate funding would be availabie for repairs, replacements and additions due to unforeseen events and emergencies. Accordingly, we recommended that the reserve be increased to approximately $110,000 over the life of the franchise. SPNN has revised its figures to reflect this amount and should now be able to proceed with adequate reserves. • SPNN was asked fo further address and clarify its back-up strategy in the evenf that its video server faiis in the future. SPNN has responded with clarification. It has given reassurance that its current routing and playback systems would be able to back up the video server. It has aiso chosen a technology and a server that would have adequate redundancy and minimal chance of failure. . Originaily it was unclear whether SPNN's operational plan included all necessary training for staff and users. River Oaks recommended that significant training was necessary as SPNN's operation increasingly converted to digital production, post- produetion and transmission. SPNN has responded that necessary training is part of its operational budget and will be implemented for staff and users. • River Oaks noted that there were a number of potential discrepancies between equipment cost projections, purchase timelines, and available funding throughout the ten-year procureme»t plan. These were subsequently resoived by SPNN. As recommended, a budget based on Franchise Capital Grant Years, inciuding cap'rtal grant funds received each year plus a time value of money projection, and a reconciliation of balance remaining and balance forward into each succeeding year was created. Overall, we believe that ali the various elements of SPNN's recommended pian wiil help ensure fhaf the fufure needs of access viewers and program confenf producers wifl be met. We believe that SPNN has resolved the concerns that we have noted above and recommend that the City release the available funding. We further believe that SPNN's ten-year plan be 2 9g-�y� reviewed at specific intervais (2001, 2005) prior to the farge disbursements. This specificaliy wil( enable the current equipment pian to be re-evaluated in light of rapid changes in technology and the plan's success in achieving necessary and stated goals (such as higher leveis of Education Access programming). Overa!!, such planned reviews will hefp ensure fhat SPN(V remains consistenf with ifs ob(igafions under fhe PerFormance Agreementwith the City. 3 ORIGINAL Council File # 9q - �y� Green Sheet # oqq50 RESOLUTION Presented By Referred To OF SAINT PAUL, MINNESOTA 0 Committee: Date 1 WI-IEREAS, the City of Saint Paui (City) has awarded a cable franchise to MediaOne, Inc.; and 2 WHEREAS, the cable franchise requires that MediaOne provide capital fixuding for PEG access and community 3 proganuiiing; and 4 WI�REAS, MediaOne provided a$550,000 grant in 1998 far PEG access capita] equipment purposes and is 5 to provide an additional $50,000 grant for PEG access capital equipment purposes in 1997 dollars on July 31, 6 1999; and 8 WHEREAS, these PEG access capital funds haue been held by the City in an account for the Designated Access 9 EntiTy, which is account # 711-50041-9531, pending receipt of an Equipment Replacement and Upgrade Plan 10 (Equipment Plan) from the Designated Entity; and 11 WIIEREAS, Saint Paul Neighborhood Network (SPNN) is the City's Designated Entity and the City and SPNN 12 have entered into a Performance Agreement which was approved by the Saint Paul City Council as Council File 13 #99-561; and 14 WHEREAS, the Performance Agreement details SPNN's responsibilifies for producing community 15 prograimning and providing PEG access training, facilities, equipment, and PEG channel playback; and 16 WFIEREAS, SPNN needs ongoing equipment replacements and upgrades to fulfiil its progranuning mission and 17 the terms of its Performance Agreement with the City; and 18 WHEREAS, the City has received the Equipment Plan from SPNN and had the plan reviewed by an outside 19 technical consultant for purposes of advising the City on whether it should release the aforementioned funds to 20 SPNN to unplement its plan; and 21 WIIEREAS, the City's technical consultant issued a report regarding its evaluarion of the Equipment Plan, and 22 recommended that the City release the $550,000 and the $50,000 (in 1997 dollars) to SPNN to fund and 23 facilitate the Equipment Plan and a copy of the executive summary from that report is attached; and 24 WHEREAS, the City's Cable Communications Officer has reviewed the Equipment Plan and the consultant's 25 report and recommends that the aforementioned payments be made to SPNN to implement its Equipment Plan 26 and enable it to cany out its programming mission and fulfill its Performance Agreement with the City. 9.'l-'1`t\ 1 NOW, "THEREFORE BE IT RESOLVED, that the aforementioned $600,000 be paid to SPNN out of the City 2 account for the Designated Access Entity, account #7 1 1-50041-953 1, for SPNN to implement its Equipment 3 Plan. 4 5 6 7 $ 9 1� 11 12 13 14 15 16 17 ig 19 2� AND BE IT FURTHER RESOLVED, that SPNN sha11 provide an accounting to the City of the actual expenditure of these funds. 21 Adopted by Council: Date _�_v� � ' ) 22 Adoption Certified by Council Secretary 23 24 25 26 27 28 $�': �e �f��. — Approved by Mayor: Date hUf)/A '7 /�� -�-"�.�t-�-- By: Requested by Department of: _Technology & Management Services sY: �J�/Vl/L /�� ���� Approval Recommended by: Department of Financial Services Hy: �1� nl oe Reid, Budget Director Form A ove y City Atto By: Approved by Mayor fo,r�Submission to Council: ORIGINAL DepartrnenUoffice/council: Date Initiated ��_'�` Technology and Management Serv. July 27, 1999 Green Sheet No. 09950 Contact Person 8 Pfione: nfia ate InitiaVdate Holly Hausen � 1 Depazfinenf D'u � � t s c�cy co�,n��i Must Be on Council Agenda by (Date) Assi9� 3 Ciry Attomey yiJ City Clerk Number 2 Financial Se�v Dir. 6 £inancial Serv/acct� E�llgl7St 4 1999 p 4 Mayor (Or Asst _ Civil Service Commission Routing Order Total # of Signatvre Pages _(Clip All Locations for Signature) Action Requested: Approve resolution that provides PEG access capital fixnding in the amount of $600,000 to Saint Pau1 Neighborhood Network (SPNI�. Recommendations: Approve (A) or Reject (R) Personal Service Contracts Must Answer the Following Questions: 1. Has this personffirm ever worked under a contrad for this department? Pianning Commission Yes No CIB Committee 2. Has this person/firm ever been a city employee? Civil Service Commission Yes No 3. Does this person/firm possess a skill not normally possessetl by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initialing Problem, Issue, Opportunity (Who, What, When, Where, Why): The City's franchise requires MediaOne to provide capital funding for PEG access. It has provided this funding and the City has been holding it in an account for the Designated Access Entity pending receipt and review of an Equipment Replacement and Upgrade Plan from the Designated Entity, SPNN. The plan has been received and reviewed and has been found acceptable. AdvantageslfApproved: SPNN will be able to purchase equipment to improve its playback system, and other equipment used for educational access. public access, and community producrions. This will ensure equipment reliability and technical quality of productions. Disadvantages If Approved: None DisadvaMages If Not Approved: Necessary equipment replacements and upgrades would not be made, which would have a detrunentai impact on the community organizations, schools, and individuals, who use PEG access service provided by SPNN. Playback equipment upgrades would not be made, which would adversely affect the technical quality of City Channe118. Total Amount of Transaction: $ CostlRevenue Budgeted: �`s�lSl4is�: i f�t'a°Sv�xYC�"6 1s."-.;�lYB� Funding Source: Accouttt # 7ll-50041-9531 Activity Number. Financiailnformation:{Explain) J�� 2 $ ��� River Oaks Communicatz`on� CorpoYation--aq=�y�= Philadelphia O�ce: 5 Great Valley Parkway, Suife 282 Malvem, Pennsylvania 19355 Phone: (610) 648-3819 Fax: (610) 648-3815 E-Mail: ctrobinson@worldnetatt.net _ _ _ Other Office Locations:- .- - - _ - _ Coiorado Springs, Colorado Denver, Colorado REViEW OF THE SAINT PAUL NEIGHBORHOOD NETWORK EQUIPMENT REPLACEMENT AND UPGRADE PLAN Final Draft of July 23,1999 Presented by: Thomas Robinson Carson Hamlin River Oaks Communications Corporation EXECUTIVESUMMARY � - At the request of the City of Saint Paui; ("Cify"); RiverOaks Communicaiions C�rpocation; _�_ -_- ,; ("River Oaks'�, has reviewed a number of documents and engaged in follour-up discussions -- _ pertaining to Saint Paul Neighborhood Network's (SPNN) equipment implementation plans . overthe next decade to determine whether such plans are consistentwith SPNN's ob(igations under its Perforznance Agreement with the City, and with available funding provided through the MediaOne Cabie Franchise Agreement. As part of this review, River Oaks has specifically looked at SPNN's equipment upgrade and replacement plans for the first fivo years of the franchise, for which the City has currently received $550,000 from MediaOne and wiii soon receive an additional $50,000 in late July of this year, for a total of $600,000 in available funding. Afrer review of this information, overall we find that SPNN's equipment replacement and upgrade plans are consistent with the directions that the video/cablecast/broadcast industry are headed and where many access organizations are positioning themselves appropriately for fhe future. During our inifia( review, we noted a number of concerns which SPNN has since resolved. The following is an overview of River Oaks' concerns and the actions SPNN has taken to address them: • SPNN's projected spending budget appeared to exceed the availab►e franchise funding in the first two years. SPNN adjusted its purchase timeline to properly correspond with franchise disbursements. • SPNN's plan regarding the repiacement and upgrade of equipment devoted to Educationai Access appeared to be insu�cient in light af ifs stated goals and Agreement with the City. Accordingiy, River Oaks recommended that SPNN develop additional capabilities for Educational Access, such as a mini-mobile or "suitcase" studio and a hot-line studio. SPNN has responded to this recommendation by adding additional funds (approximately $16,000) for Educational Access. It has also indicated that its existing suitcase studio can be 1 � qg-��t� promoted more heavily, and be made more accessibie, forEducationat Access =.-_- use. !f has also agteed to evaluate fhe need for a hoT-line studio ir� the iuture: =-=.-- . SPNN's allocation of a$30,000 reserve over the I"rfe of the franchise appeared too small an amount to help ensure that adequate funding would be availabie for repairs, replacements and additions due to unforeseen events and emergencies. Accordingly, we recommended that the reserve be increased to approximately $110,000 over the life of the franchise. SPNN has revised its figures to reflect this amount and should now be able to proceed with adequate reserves. • SPNN was asked fo further address and clarify its back-up strategy in the evenf that its video server faiis in the future. SPNN has responded with clarification. It has given reassurance that its current routing and playback systems would be able to back up the video server. It has aiso chosen a technology and a server that would have adequate redundancy and minimal chance of failure. . Originaily it was unclear whether SPNN's operational plan included all necessary training for staff and users. River Oaks recommended that significant training was necessary as SPNN's operation increasingly converted to digital production, post- produetion and transmission. SPNN has responded that necessary training is part of its operational budget and will be implemented for staff and users. • River Oaks noted that there were a number of potential discrepancies between equipment cost projections, purchase timelines, and available funding throughout the ten-year procureme»t plan. These were subsequently resoived by SPNN. As recommended, a budget based on Franchise Capital Grant Years, inciuding cap'rtal grant funds received each year plus a time value of money projection, and a reconciliation of balance remaining and balance forward into each succeeding year was created. Overall, we believe that ali the various elements of SPNN's recommended pian wiil help ensure fhaf the fufure needs of access viewers and program confenf producers wifl be met. We believe that SPNN has resolved the concerns that we have noted above and recommend that the City release the available funding. We further believe that SPNN's ten-year plan be 2 9g-�y� reviewed at specific intervais (2001, 2005) prior to the farge disbursements. This specificaliy wil( enable the current equipment pian to be re-evaluated in light of rapid changes in technology and the plan's success in achieving necessary and stated goals (such as higher leveis of Education Access programming). Overa!!, such planned reviews will hefp ensure fhat SPN(V remains consistenf with ifs ob(igafions under fhe PerFormance Agreementwith the City. 3 ORIGINAL Council File # 9q - �y� Green Sheet # oqq50 RESOLUTION Presented By Referred To OF SAINT PAUL, MINNESOTA 0 Committee: Date 1 WI-IEREAS, the City of Saint Paui (City) has awarded a cable franchise to MediaOne, Inc.; and 2 WHEREAS, the cable franchise requires that MediaOne provide capital fixuding for PEG access and community 3 proganuiiing; and 4 WI�REAS, MediaOne provided a$550,000 grant in 1998 far PEG access capita] equipment purposes and is 5 to provide an additional $50,000 grant for PEG access capital equipment purposes in 1997 dollars on July 31, 6 1999; and 8 WHEREAS, these PEG access capital funds haue been held by the City in an account for the Designated Access 9 EntiTy, which is account # 711-50041-9531, pending receipt of an Equipment Replacement and Upgrade Plan 10 (Equipment Plan) from the Designated Entity; and 11 WIIEREAS, Saint Paul Neighborhood Network (SPNN) is the City's Designated Entity and the City and SPNN 12 have entered into a Performance Agreement which was approved by the Saint Paul City Council as Council File 13 #99-561; and 14 WHEREAS, the Performance Agreement details SPNN's responsibilifies for producing community 15 prograimning and providing PEG access training, facilities, equipment, and PEG channel playback; and 16 WFIEREAS, SPNN needs ongoing equipment replacements and upgrades to fulfiil its progranuning mission and 17 the terms of its Performance Agreement with the City; and 18 WHEREAS, the City has received the Equipment Plan from SPNN and had the plan reviewed by an outside 19 technical consultant for purposes of advising the City on whether it should release the aforementioned funds to 20 SPNN to unplement its plan; and 21 WIIEREAS, the City's technical consultant issued a report regarding its evaluarion of the Equipment Plan, and 22 recommended that the City release the $550,000 and the $50,000 (in 1997 dollars) to SPNN to fund and 23 facilitate the Equipment Plan and a copy of the executive summary from that report is attached; and 24 WHEREAS, the City's Cable Communications Officer has reviewed the Equipment Plan and the consultant's 25 report and recommends that the aforementioned payments be made to SPNN to implement its Equipment Plan 26 and enable it to cany out its programming mission and fulfill its Performance Agreement with the City. 9.'l-'1`t\ 1 NOW, "THEREFORE BE IT RESOLVED, that the aforementioned $600,000 be paid to SPNN out of the City 2 account for the Designated Access Entity, account #7 1 1-50041-953 1, for SPNN to implement its Equipment 3 Plan. 4 5 6 7 $ 9 1� 11 12 13 14 15 16 17 ig 19 2� AND BE IT FURTHER RESOLVED, that SPNN sha11 provide an accounting to the City of the actual expenditure of these funds. 21 Adopted by Council: Date _�_v� � ' ) 22 Adoption Certified by Council Secretary 23 24 25 26 27 28 $�': �e �f��. — Approved by Mayor: Date hUf)/A '7 /�� -�-"�.�t-�-- By: Requested by Department of: _Technology & Management Services sY: �J�/Vl/L /�� ���� Approval Recommended by: Department of Financial Services Hy: �1� nl oe Reid, Budget Director Form A ove y City Atto By: Approved by Mayor fo,r�Submission to Council: ORIGINAL DepartrnenUoffice/council: Date Initiated ��_'�` Technology and Management Serv. July 27, 1999 Green Sheet No. 09950 Contact Person 8 Pfione: nfia ate InitiaVdate Holly Hausen � 1 Depazfinenf D'u � � t s c�cy co�,n��i Must Be on Council Agenda by (Date) Assi9� 3 Ciry Attomey yiJ City Clerk Number 2 Financial Se�v Dir. 6 £inancial Serv/acct� E�llgl7St 4 1999 p 4 Mayor (Or Asst _ Civil Service Commission Routing Order Total # of Signatvre Pages _(Clip All Locations for Signature) Action Requested: Approve resolution that provides PEG access capital fixnding in the amount of $600,000 to Saint Pau1 Neighborhood Network (SPNI�. Recommendations: Approve (A) or Reject (R) Personal Service Contracts Must Answer the Following Questions: 1. Has this personffirm ever worked under a contrad for this department? Pianning Commission Yes No CIB Committee 2. Has this person/firm ever been a city employee? Civil Service Commission Yes No 3. Does this person/firm possess a skill not normally possessetl by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initialing Problem, Issue, Opportunity (Who, What, When, Where, Why): The City's franchise requires MediaOne to provide capital funding for PEG access. It has provided this funding and the City has been holding it in an account for the Designated Access Entity pending receipt and review of an Equipment Replacement and Upgrade Plan from the Designated Entity, SPNN. The plan has been received and reviewed and has been found acceptable. AdvantageslfApproved: SPNN will be able to purchase equipment to improve its playback system, and other equipment used for educational access. public access, and community producrions. This will ensure equipment reliability and technical quality of productions. Disadvantages If Approved: None DisadvaMages If Not Approved: Necessary equipment replacements and upgrades would not be made, which would have a detrunentai impact on the community organizations, schools, and individuals, who use PEG access service provided by SPNN. Playback equipment upgrades would not be made, which would adversely affect the technical quality of City Channe118. Total Amount of Transaction: $ CostlRevenue Budgeted: �`s�lSl4is�: i f�t'a°Sv�xYC�"6 1s."-.;�lYB� Funding Source: Accouttt # 7ll-50041-9531 Activity Number. Financiailnformation:{Explain) J�� 2 $ ��� River Oaks Communicatz`on� CorpoYation--aq=�y�= Philadelphia O�ce: 5 Great Valley Parkway, Suife 282 Malvem, Pennsylvania 19355 Phone: (610) 648-3819 Fax: (610) 648-3815 E-Mail: ctrobinson@worldnetatt.net _ _ _ Other Office Locations:- .- - - _ - _ Coiorado Springs, Colorado Denver, Colorado REViEW OF THE SAINT PAUL NEIGHBORHOOD NETWORK EQUIPMENT REPLACEMENT AND UPGRADE PLAN Final Draft of July 23,1999 Presented by: Thomas Robinson Carson Hamlin River Oaks Communications Corporation EXECUTIVESUMMARY � - At the request of the City of Saint Paui; ("Cify"); RiverOaks Communicaiions C�rpocation; _�_ -_- ,; ("River Oaks'�, has reviewed a number of documents and engaged in follour-up discussions -- _ pertaining to Saint Paul Neighborhood Network's (SPNN) equipment implementation plans . overthe next decade to determine whether such plans are consistentwith SPNN's ob(igations under its Perforznance Agreement with the City, and with available funding provided through the MediaOne Cabie Franchise Agreement. As part of this review, River Oaks has specifically looked at SPNN's equipment upgrade and replacement plans for the first fivo years of the franchise, for which the City has currently received $550,000 from MediaOne and wiii soon receive an additional $50,000 in late July of this year, for a total of $600,000 in available funding. Afrer review of this information, overall we find that SPNN's equipment replacement and upgrade plans are consistent with the directions that the video/cablecast/broadcast industry are headed and where many access organizations are positioning themselves appropriately for fhe future. During our inifia( review, we noted a number of concerns which SPNN has since resolved. The following is an overview of River Oaks' concerns and the actions SPNN has taken to address them: • SPNN's projected spending budget appeared to exceed the availab►e franchise funding in the first two years. SPNN adjusted its purchase timeline to properly correspond with franchise disbursements. • SPNN's plan regarding the repiacement and upgrade of equipment devoted to Educationai Access appeared to be insu�cient in light af ifs stated goals and Agreement with the City. Accordingiy, River Oaks recommended that SPNN develop additional capabilities for Educational Access, such as a mini-mobile or "suitcase" studio and a hot-line studio. SPNN has responded to this recommendation by adding additional funds (approximately $16,000) for Educational Access. It has also indicated that its existing suitcase studio can be 1 � qg-��t� promoted more heavily, and be made more accessibie, forEducationat Access =.-_- use. !f has also agteed to evaluate fhe need for a hoT-line studio ir� the iuture: =-=.-- . SPNN's allocation of a$30,000 reserve over the I"rfe of the franchise appeared too small an amount to help ensure that adequate funding would be availabie for repairs, replacements and additions due to unforeseen events and emergencies. Accordingly, we recommended that the reserve be increased to approximately $110,000 over the life of the franchise. SPNN has revised its figures to reflect this amount and should now be able to proceed with adequate reserves. • SPNN was asked fo further address and clarify its back-up strategy in the evenf that its video server faiis in the future. SPNN has responded with clarification. It has given reassurance that its current routing and playback systems would be able to back up the video server. It has aiso chosen a technology and a server that would have adequate redundancy and minimal chance of failure. . Originaily it was unclear whether SPNN's operational plan included all necessary training for staff and users. River Oaks recommended that significant training was necessary as SPNN's operation increasingly converted to digital production, post- produetion and transmission. SPNN has responded that necessary training is part of its operational budget and will be implemented for staff and users. • River Oaks noted that there were a number of potential discrepancies between equipment cost projections, purchase timelines, and available funding throughout the ten-year procureme»t plan. These were subsequently resoived by SPNN. As recommended, a budget based on Franchise Capital Grant Years, inciuding cap'rtal grant funds received each year plus a time value of money projection, and a reconciliation of balance remaining and balance forward into each succeeding year was created. Overall, we believe that ali the various elements of SPNN's recommended pian wiil help ensure fhaf the fufure needs of access viewers and program confenf producers wifl be met. We believe that SPNN has resolved the concerns that we have noted above and recommend that the City release the available funding. We further believe that SPNN's ten-year plan be 2 9g-�y� reviewed at specific intervais (2001, 2005) prior to the farge disbursements. This specificaliy wil( enable the current equipment pian to be re-evaluated in light of rapid changes in technology and the plan's success in achieving necessary and stated goals (such as higher leveis of Education Access programming). Overa!!, such planned reviews will hefp ensure fhat SPN(V remains consistenf with ifs ob(igafions under fhe PerFormance Agreementwith the City. 3