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Home My WebLink About7.2 Civic Center Community TV Studio CITY OF DUBLIN ' AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 27, 1987 SUBJECT Community Television Studio - Civic Center EXHIBITS ATTACHED o Letter dated April 14, 1987 from Lee Horner, Secretary, Tri-Valley Community Television Corporation o Letter dated March 11, 1987 to Lee Horner o Proposed Operating Budget and Studio Cost RECOMMENDATION /;� Review the proposed terms of the lease and direct VStaff to request consideration by each of the Cities and the Corporation. FINANCIAL STATEMENT: See Below DESCRIPTION Pursuant to City Council direction, Staff contacted Tri-Valley Community Television Corporation (letter dated March 11, 1987 ) . The total cost of the studio is estimated at $287, 200-$335, 200 . The variation is impacted by the extent of specialized interior improvements . Mr . Horner has requested information on the type of lease arrangements which might be considered by the City. Please refer to Item 3 of the April 14, 1987 letter. Staff can respond to the first two inquiries, however, City Council direction on the lease arrangements is requested. Past City Council direction was to request a distribution of the costs on the basis of population. The City of Dublin indicated that should any of the four cities not participate, the City of Dublin' s share would continue to be based on participation by all cities . Mr. Horner has inquired regarding possible lease options . Staff would recommend that any lease arrangement have the following conditions : 1 . The lease shall be independent of utility and maintenance costs . 2 . The determination of adequate maintenance levels shall be at the discretion of the City of Dublin. 3 . Substantive modifications shall be subject to authorization by the City of Dublin. 4. A. If the Cities provide funding of the construction cost upon occupancy; (1 ) The terms of the lease costs will be $1 . 00 per year. (2) The lease will continue through the year 2001 B. If the Cities desire to pay the cost over time: (1 ) The Cities shall reimburse the City of Dublin for construction costs plus carying costs on the unpaid balance . (2) The lease payments would begin upon occupancy. (3) The construction and carrying costs would need to be repaid by 2001, which would be the term of the lease. The proposed lease would have a term which extends through 2001, which coincides with the franchise agreement. The lease payments could begin upon occupancy of the building. ---------------------------------------------------------------------------- COPIES TO: ITEM NO. �� -- s AGENDA STATEMENT: Community Television Studio - Civic Center Page 2 " If the City is required to front the cost of construction, Staff feels it is appropriate to recover carrying costs . A simplified arrangement would be for the interest costs to be equal to the average rate of return earned by the Local Agency Investment Fund (LAIF) , in the preceeding year. This would provide a fluctuating interest cost, however, it is a formula which has components familiar to all agencies . The proposed studio costs prepared by the Corporation shows the distribution based on population, percentage of franchise fee, percentage of subscribers and an equal distribution. Assuming a straight line 12 year payback and distributed costs by population, the annual payments for the cities would range from $3, 575 to $10, 450 . This does not include the carrying costs discussed above. A twelve year period is used which assumes occupancy January 1, 1989 . As mentioned in previous discussions, Staff will also provide the Community Television members and member City Councils with further information on the extent of Dublin' s contribution. In addition to its share of the studio construction cost, the City will contribute the cost of the land, water and sewer permits, inspection costs, landscaping, parking facilities, design services for the basic structure and other site improvements . The costs for these items would be absorbed entirely by the City of Dublin. Staff would request that the City Council review the proposed terms and conditions of a lease arrangement and direct Staff to contact each City Council and request their consideration of the proposal . It is recognized that the Tri-Valley Community Television Corporation will ultimately receive its funding from each of the Cities . The Corporation will also be advised of the terms and conditions approved by the City Council . . Tri—Valley Community Television Corporation 1052 South Livermore Avenue Livermore, CA 94550 April 14 , 1987 RECEIyZ0 Mr. Richard Ambrose City Manager APR 1 City of Dublin CITY On Dt1 P. O. Box 2340 Dublin, CA 94568 Dear Rich: At the last meeting of the Tri-Valley Community Television Corporation Board, the members discussed your letter of March 11, 1987 , concerning the proposed cable television studio that would be built as part of your Civic Center facility. The Board asked that I respond back to you and obtain some additional information to be discussed at their next meeting. Specifically, the Board raised the following questions: 1. Have other options been considered that would reduce the overall cost of the studio facility? 2. Do you have a breakdown of the interior improvements that are estimated in the neighborhood of $100 ,000 - $148,000? 3 . Has the City of Dublin considered what kind of arrangements they would enter into regarding the use of the studio? Can the studio be leased over a period of time? If so, have you any expectation of what the lease payments might be? Do you expect all costs to be paid up front, or can these be part of the lease arrangement that is worked out with whomever decides to be a part of the studio project? Is the City of Dublin willing to front the construction costs of the studio, providing suitable payback arrangements of the other cities can be obtained? Our next Board meeting will be held on Thursday, April 30. If possible, I would like to have your response for discussion by the Board at that meeting. Sincerely, LEE HORNER Secretary/Treasurer LH/cm P.0,802W CA OM March 11, I987 Mr. Lee Horner, Secretary Community Television Corporation c/o City of Livermore 1052 S. Livermore Avenue Livermore, CA 94550 RE: Community Television Studio Space Dear fir. Horner: - The purpose of this correspondence is to follow-up on actions taken by the Dublin City Council subsequent to the letter dated February 13, 1987 (copy attached). The City Council has directed the architects to proceed with the design of the Civic Center Facility. The design will include space to house a 2,000 square foot studio space. Including the entryways and associated circulation, the total additional space is 2,640 square feet. The approved scheme would locate the facility on the second floor with its own entrance. The studio would be handicapped accessible. Studio participants would also have access to restroom facilities. Current estimates of the shell space for the studio indicate a cost of $187,200. The interior improvements and design services are estimated at $100,000-$148,000. The deviation on the interiors would be impacted by the extent in which specialized sound isolation systems are required. The total cost is estimated at $287,200--$335,200. This does not provide for a ceiling height greater than 12 1/2 feet. The architects estimate that a 15 foot ceiling could be constructed in the studio at an estimated additional cost of $20,000 plus the actual cost of structural design changes. At the City Council meeting on ?larch 9, 1987, the City's representative to Community TV was directed to request that the costs be distributed among the members on a population basis. However, if any of the four agencies did not participate, the City of Dublin would only be required to contribute an amount based on the participation of all agencies. If you have any questions, please feel free to contact me. Sincerely, Richard C. Ambrose City Manager RCA:slh cc: Dublin City Council O P ERAT=N G BUD GE T - $ 1 4 3 , 0 0 0 1- 1987 2% OF 5% OP. BUDGET NO. OF FRANCHISE FRANCHISE BY % OF OPERATING OPERATING CABLE FEE FEE FRANCHISE BUDGET FUNDED BUDGET FUNDED CITY POPULATION SUBSCRIBERS REVENUES REVENUES FEE BY POP. % 'BY SUB. % LIVERMORE 55,000 (38%) 14,700 (35%) $178,503 (34%) $ 71,401 $ 48,620 $ 54,340 $ 50,050 PT EASANTON 45,371 (31%) 13,698 (33%) 170,113 (33%) 68,045 47,190 44,330 47,190 DUBLIN 18,912 (13%) 5,253 (12%) 68,010 (13%) 27,204 18,590 18,590 17,160 SAN RAMON 26,500 (18%) 8,440 (20%) 105,243 (20%) 42,097 28,600 25,740 28,600 145,783 42,091 $521,869 $208,747 $143,000 $143,000 $143,000 *EQUAL SPLIT = $35,750 �fZO P o SE3) DU B L 31 N S TUD I O C O S T - $ 3 3 0 0 0 0 (1) . COSTS COSTS COST BASED ON COSTS BASED ON % BASED ON CITY % OF .POP. SPREAD EVENLY FRANCHISE FEE % OF SUB. LIVERMORE $125,400 $ 82,500 $112,200 $115,500 PLEASANTON 102,300 82,500 108,900 108,900 DUBLIN 42,900 82,500 42,900 39,600 SAN RAMON 59,400 82,500 66,000 66,000 $330,000 $330,000 .$330,000 $330,000 (1) Estimate Only