CC 06-10-14 Supplemental InformationMEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER I
SUBJECT: AGENDA ITEM 11.C.-SUPPLEMENTAL INFORMATION
DATE: JUNE 10, 2014
After distribution of the proposed budget adjustments, staff learned that costs related
to expiration of the cable television franchise agreement are much more than
anticipated. Under the current franchise agreement, the cable operator is required to
provide at no cost a dedicated fiberoptic system (known as an institutional network or
"1-Net") to City facilities for connection of the City's computer network. Under new
Federal law, cable operators are no longer required to obtain franchise agreements
with local governments and instead can opt to operate under a State franchise. We
have been notified that Charter Communications intends to do this when the existing
franchise agreement expires in August. As a result, the City will be required to begin
paying for use of the 1-Net, which is estimated to cost $40,000 -$60,000 annually.
The City's IT Manager is evaluating options to modify the system in order to minimize
the ongoing cost increase. As a result, staff does not yet know the specific cost. In
the meantime, we are recommending that the funding proposed for an increase in IT
consultant services be reduced from $90,000 to $75,000 and funding proposed for an
increase in parks and facilities maintenance be reduced from $50,000 to $40,000.
There is approximately $5,000 already recommended for the 1-Net. Therefore, this will
provide $30,000 for the service. Additional costs over that will be recommended to be
funded from contingency funds that have been included in the recommended
adjustments.
Please let me know if you have any questions. Thank you.
cc. Director of Administrative Services