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HomeMy WebLinkAboutCOW 2007-09-10 Item 4C - Purchase - City Channel Equipment and Services COUNCIL AGENDA SYNOPSIS t y'S Initials ITEM NO. o l� +tit Meeting Date 1 Prepared by I Mayor's review council review 1 wt'+` l ;o 9/10/07 1 FI 1 (ft 1 t fir_ 9/17/07 FI�('(i► 1 1 isaa 1 0 I I L ITEM INFORMATION CAS NUMBER: 07-106 IORIGINAL AGENDA DATE: SEPTEMBER 10, 2007 AGENDA ITEM TITLE Authorization to Purchase City Government Channel equipment using the terms of the current Franchise Agreement with Comcast and Resolution of Sole Source Purchase from TetVue Virtual Television Networks (TVTN) CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mfg Date 9/10/07 Mtg Date 9/17/07 Mtg Date 9/17/07 Mtg Date Mtg Date Mtg Date Mfg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW SPONSOR'S Staff is working with Comcast to obtain a Tukwila Government Channel. The channel SUMMARY allows the City to keep citizens better informed of public meetings, school events, City projects, employment opportunities, and other community events. Depending on the option selected, the estimated cost for the capital equipment is approximately $11,974 to $48,293. To keep the pass through costs at or below $.25 per subscriber, the franchise agreement with Comcast may have to be extended. REVIEWED BY COW Mtg. CA &P Cmte F&S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 09/05/07 RECOMMENDATIONS: Decide option, approve resolution for Sole Source and if required, extend the SPONSOR /ADMIN. Franchise Agreement with Comcast. COMMITrEE Unanimous approval of Option 3 and Resolution; forward to COW. COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: Comments: MTG. DATE 1 RECORD OF COUNCIL ACTION 09/10/07 1 09/17/07 1 MTG. DATE 1 ATTACHMENTS 09/10/07 Information Memo dated August 27, 2007 Summary Cost Quotes and Sponsorship Guidelines f Pass Through Summary Sheet Resolution Utilities Committee Meeting Minutes from September 5, 2007 09/17/07 1 INFORMATION MEMORANDUM To: Mayor Mullet From: Public Works Departmen Date: August 27, 2007 Subject: City Government Channel ISSUE Approve purchase of City Government Channel equipment from TelVue Virtual Television Networks (TVTN) and if required, extend current Franchise Agreement with Comcast. BACKGROUND During a Regular Council Meeting, Council approved Staff's recommendation for a Tukwila Government Channel and supported a pass- through of approximately $.25 per subscriber to cover capital costs. Shortly after Council approval, the City formally requested Comcast to design, procure, and install head end cablecast equipment. Comcast completed installation and testing of their equipment early this month. The final phase of the City Channel Project is the procurement and installation of digital broadcast equipment. DISCUSSION As part of the procurement process, Staff contacted several equipment vendors. Except for TVTN, none of the vendors offered a complete, integrated TV system. Given TVTN's unique suite of state -of -the -art digital broadcast solutions, Staff recommends purchase of capital equipment and services from TVTN. TVTN provided quotes for three different package options (Attachments 1 -3). Quote 1 provides a full range of digital multimedia broadcast solutions including 24/7 remote operations, web channel monitoring, and managed services. Quote 2 provides all the equipment needed to run a cable TV channel but at a smaller scale. TVTN also has a Sponsorship (underwriting) Program (Quote 3). This Program reduces the overall capital and operational costs. Quote 3 provides the same equipment, software and services as Quote 1 but at a significantly reduced cost. In consideration for the price reduction, the City must agree to the terms and conditions of the Sponsorship Program. A summary of the sponsorship guidelines including permissible and non permissible activities is provided at Attachment 4. From a financial and operational perspective, Quote 3 offers the most viable option for the City. The City Attorney's Office conducted legal review of TVTN's Sponsorship Program and determined that the City could pursue this option provided that internal controls and sound operating procedures are developed and implemented to ensure compliance with the Federal Communications Commission (FCC) guidelines. In keeping with Council's intent to maintain the pass through costs at approximately $.25 per subscriber, the Franchise Agreement with Comcast may have to be extended depending on the option selected. The current Franchise expires on February 1, 2009. Q 1 r a 2 1 -year V�/LSVll Je1L.L.t,L.LL. lle VtillenL rC e r 41Vi 1 V vA ♦w extension and a pass through of approximately $.24 per subscriber. Quote 2 requires a one -year extension and a pass through of approximately $.20 per subscriber. Quote 3 will not require an extension. The pass through cost for Quote 3 is approximately $.17 per subscriber. In summary, Staff is seeking Council approval to purchase City Channel equipment on a sole source basis. Due to lower capital and operational costs, the Sponsorship Program Package (Quote 3) offers the best value for the City. Finally, in order to keep the pass through costs at approximately $.25 per subscriber, the existing franchise agreement may have to be extended for up to 2 'A- years. RECOMMENDATION Present to the Committee -of- the -Whole for discussion, approve sole source procurement (Attachment 5), select package option, and if required, approve extension of the existing Franchise Agreement with Comcast. Attachments: TVTN Quotes (1 -3) Sponsorship Program/Guidelines Draft Sole Source Resolution P:frank\20071franchise \government channel TN' Princctt n Server Group July 12, 2007 ATTACHMENT 1 Frank Iriarte City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 Attn: Frank Iriarte Summary Cost Ouote 1) Expiration 90days Summary 'Monthly Fee (includes upgrades) 850.00 2 One time Set up Fee $12,000.00 Equipment Cost $12,203.00 Terms 60 Months Cable Comnany Fee Breakdown (Cable Company pays Capital cost) Note: Based on TVTN's accounting department analysis the following can be used as Capital Cost 'Capital portion of Monthly Fee 467.50 2 Capital portion of Set up Fee 8,040.00 Equipment Cost $12,203.00 3 Total Cable Company Cost (Capital- one time fee) $48,293.00 Municipality Fee Breakdown (City pays Expense cost) 'Expense portion of Monthly Fee 382.50 2 Expense portion of Set up Fee 3,960.00 Total Municipality cost over 60 Month Term $26,910.00 Total Municipality cost Amortized over 60 Month Term 448.50 (per month) Kind regards, Larry McCain 1•ri.:.-.ynn ServerGmup Divisions of Telvue Corporation 732 213 -4730 Mobile 800 885 -TVTN- Office 732 -653 -0263 Fax lmccain(a telvue.com 16000 Horizon Way, Suite 500, Mt. Laurel, NJ 08054 www.tvtn -tv www.arincetonserverarouo.com 1 Monthly fee consists of Capital related Software Hardware Upgrades (55 and Expense related Support costs (45 2 Set no fee consists of Capital related Equipment Installation (67 and Expense related Sales Production (33 3 $467.50x 60 Months $28,050.00 $8,040 -00 Set up $12,203.00 Equipment cost $48,293.00 -Total 1'r incci,on Server Group ATTACHMENT 2 July 12, 2007 Frank Iriarte City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 Attn: Frank Iriarte Summary Cost Ouote 2) Expiration 90days Summary 'Monthly Fee (includes upgrades) 500.00 2 One time Set up Fee $12,000.00 Terms 60 Months Cable Company Fee Breakdown (Cable Company pays Capital cost) Note: Based on TVTN's accounting department analysis the following can be used as Capital Cost 'Capital portion of Monthly Fee 275.00 2 Capital portion of Set up Fee 8,040.00 3 Total Cable Company Cost (Capital -one time fee) $24,540.00 Municipality Fee Breakdown (City pays Expense cost) 'Expense portion of Monthly Fee 225.00 2 Expense portion of Set up Fee 3,960.00 Total Municipality cost over 60 Month Term $17,460.00 Total Municipality cost Amortized over 60 Month Term 291.00 (per month) Kind regards, Larry McCain 6 ent% Pc�_ tun Scrva Qcpup Divisions of Telvue Corporation 732 213 -4730 Mobile 800 885 -MN- Office 732 -653 -0263- Fax lmccainOtelvue.com 16000 Horizon Way, Suite 500, Mt. Laurel, NJ 08054 www.tvtn.ty www.orincetonservernrouo.com Monthly fee consists of Capital related Software Hardware Upgrades (55 and Expense related Support costs (45 2 Set un fee consists of Capital related Equipment Installation (67 and Expense related Sales Production (33 3 $275.00x 60 Months $16,500.00 $8,040.00 Set up Fee $24,540.00 -Total n t Prinectun Server Group ATTACHMENT 3 July 2nm Frank Iriarte City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 Attn: Frank Iriarte Summary Cost Quote 3) Expiration 90days Summary 'Monthly Fee (includes upgrades) 150.00 2 One time Set up Fee 2,950.00 Equipment Cost 5,048.00 Terms 60 Months Cable Company Fee Breakdown (Cable Company pays Capital cost) Note: Based on TVTN's accounting department analysis the following can be used as Capital Cost 'Capital portion of Monthly Fee 82.50 2 Capital portion of Set up Fee 1,976.50 Equipment Cost 5,048.00 3 Total Cable Company Cost (Capital one time fee) $11,974.50 Municipality Fee Breakdown (City pays Expense cost) 'Expense portion of Monthly Fee 67.50 2 Expense portion of Set up Fee 973.50 Total Municipality cost over 60 Month Term 5,023.50 Total Municipality cost Amortized over 60 Month Term 83.73 (per month) Kind regards, Larry McCain icavrwr Divisions of Teivue Corporation 732 213 -4730 Mobile 800 885 -TVTN- Office 732 653 -0263 Fax 1 mccai nnv.tel vue.com 16000 Horizon Way, Suite 500, Mt. Laurel, NJ 08054 www.tvtn.tv www.orincetonserverarouo.com t Monthly fee consists of Capital related Software Hardware Upgrades (55 and Expense related Support costs (45 2 Set no fee consists of Capital related Equipment Installation (67 and Expense related Sales Production (33 3 $82.50x 60 Months $4,950.00 $1,976.50 Set up Fee $5,048.00 Equipment cost $11,974.50 -Total Glf TelVue Virtual ATTACHMENT 4 Television Networks SPONSORSHIP GUIDELINES Overview: TVTN provides a service to it's access channel affiliates in which it provides the automated access channel and content at reduced charges or no charge by locating third party businesses and organizations to underwrite the TVTN costs. In return an on -air acknowledgement of their efforts that are run on the channel. (Visual and audio announcements of about 15 seconds) Payments are made directly to TVTN at the fair market value of the services provided to the access channel operator (Municipality, school or other). Conditions of sponsorship Cable operators, in most cases, will concur with third party sponsorship of channels along with acknowledgements, provided the cable company considers the announcements non- commercial. Municipalities will accept sponsorship of their channels if they meet standards and practices of the community. Therefore TVTN tries to satisfy both groups by locating third parties which meet community standards and satisfy the cable company's non commercial nature of the channel (though the cable company rarely spells out what that means) In order to meet these requirements MN has set out guidelines that are similar to those followed by non commercial broadcast stations (which are still regulated by the FCC). We call the guidelines the "PBS (Public Broadcasting System) guidelines" which are summarized and quoted herein. Sponsorship Acknowledgment Guidelines (PBS): Permissible: 1. Up to :15 seconds of acknowledgement 2. Name of product(s) and /or service(s) 3. Company location 4. Number of years in business 5. E -mail address or website (preferably visually depicted) 6. Telephone number 7. Non promotional, value neutral descriptions of products or services 8. Use of well -known mottos or slogans 9. Signature music or appropriate sound effects as a means of enhancing visual and voice -over 10. Use of well -known mottos or slogans that are non promotional in nature 8/2005 Version 2 16000 Horizon Way, Suite 500, Mt. Laurel, Ni 08054 Tel 1.800.885.TVTN 8886 Fax 1.856.866.7411 wvwv.tvtn.ty 11. Signature music or appropriate sound effects as a means of enhancing visual and voice -over that are non promotional in nature Non Permissible: 1. Overt promotion of products or services 2. Price reference 3. Call to action or inducement to buy 4. Comparative or qualitative descriptions of products or services 5. Third -party reviews (from newspapers, magazines, etc.) Standards and Practices Most channels will not accept sponsorships from the following: 1. Liquor stores or bars or other establishments whose primary business is the sale of alcohol. (Restaurants that serve alcohol excluded, provided alcohol is not mentioned in the acknowledgement) 2. Any manufacturer or distributor of beer, alcohol or tobacco. 3. Any entity that promotes the use or sale of illegal drugs or drug paraphernalia. 4. Adult bookstores, adult movie houses and video dealers or strip clubs or any entity that provides adult oriented content or products by mail -order or through the internet 5. Political parties, lobbying groups, political action committees or cause based organizations. 6. Any illegal or off shore gambling entity or entity that provides information that enables or can be associated with illegal gambling. 7. Manufacturers or sellers of firearms, ammunition, gun repairs, accessories, targets, stun guns, tear or pepper gas dispensers, and rifle and pistol ranges. Retailers who sell other products not firearm related can be sponsors provided they do not promote firearm related products (for example, department stores and sporting goods stores) 8/2005 Version 2 16000 Horizon Way, Suite 500, Mt. Laurel, NJ 08054 Tel 1.800.885.1VTN 8886) Fax- 1.856.866.7411 www.tvtn.tv af/TN' TelVue Virtual Teievision Networks TVTN SPONSORSHIP PROGRAM a Established to assist communities with the means to underwrite the WIN costs associated with the Access Channel. A member of our Sponsorship Team is assigned to rY`lt nag the Presentation, Sale and Coordination to secure your sponsorship. Support to solicit ongoing Sponsorship for the TVTN service and its associated fees are provided for the duration of our contract. You assist in determining who are appropriate candidates for Sponsorship of your Channel, You provide oversight, control and .VETO. power over the Sponsors. Sponsorship spots are in accordance with FC,C gguiclelines on "PBS" underwriting: 16000 Horizon 1(y 500, Mt. Laurel, NJ 08054 Tel 1.800.885.1VIN 8886) Fax 1.856.866.7411 www.tvtn.ty i 1 1 i 1 1 E 4141141°11111 Il.n..... 0 44 1- 0 f- 1 121.- f•I r. .f•fl C i ..r, CO t j t Lml Ca t4 csi D trl vi C 01 r_ 1 I...-. /NO r".• en V) 4.; c•1 41, Z: -11 IQ, E CO) .13 cp co X 4- co i 7 ‘.4 I u w ca E l? qt cs 0 rs- -.-..e.1 a) ii.. 0 t a. 1,1 0 %.:•.1..., 4•-,-.;--•">-.:e.7.514',1":44.•...;:,,,,:vi• f.. .2-1 4.3? .,iig.71 11' if." ,5 V.; c i '''Ci ij' eT Willi 0 L i; N 111111 iii ,4 01 4.1 i e C 0 •,s, co: Ck Z.. 0 iz 0 01 0 VI: i gli v) vb.. 5: s••..-s. ci (1) I 1 7-•. -7 -r ;,-*.-fi .7) f. til A 4; 41 6 -WZ re) :NI Y rf'.. ,-----.§^11-1A-7;2:1;^-:',*-1,a5 .s.. t 46 --,..W. .-;-1 .7. :Ti i 0 :;',1 I i I P-x-'1'...'-_--2Yt,'2 'n Cill) M• _E-1.__,..- u., ..,......F. 2. ow... ca 7 .rft:1. ii.. 'i -=.2a (1), r••••• r 1 Lr) E 1 vl C ki i tr sit i i I 03 I cn i i CD 1 17 ri, 1 c2-. 14 7 •:-..7 7 .5. 4 r-1 0 I s.. Fi KNI1 I I PASS- THROUGH SUMMARY OPTION 1 OPTION 2 OPTION 3 I Capital Cost $48,293 $24,540 $1 1,974 1 Pass Through Cost .24 /mo .20 /mo .17 /mo Franchise Extension 30 months 12 months N/A O &M* 1 $448.50/mo $291 /mo $83.73/mo Notes: 1. Number of cable TV subscribers: Approximately 4,361 2. Current Franchise expires February 2009. 16 months remaining 3. Pass- through calculation Franchise extension requirement assumes October 2007 implementation date. 4. 0 M costs will be paid out of general funds. DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, WAIVING THE COMPETITIVE BIDDING REQUIREMENTS, AND AUTHORIZING THE PURCHASE OF CITY GOVERNMENT CHANNEL EQUIPMENT AND SERVICES FROM TELVUE VIRTUAL TELEVISION NETWORKS. WHEREAS, the City of Tukwila has identified a need to enhance communications to residents, businesses and visitors, and approved creation of a Tukwila government channel; and WHEREAS, the City of Tukwila negotiated with Comcast to pay for the capital cost and pass the cost through to subscribers, and Comcast has completed installation and testing of their equipment for the City's connection; and WHEREAS, to complete the final phase of this project, City staff contacted several vendors of digital broadcast equipment, but only TelVue Virtual Television Networks TVTN) offered a complete, integrated TV system; and WHEREAS, RCW 39.04.280(1)(a) provides for exemption from competitive bidding requirements when purchases are dearly and legitimately limited to a sole source of supply; and WHEREAS, the Tukwila City Council believes that the cablecast equipment and service from TVTN provides the best state- of -the-art digital system, technical support structure, system flexibility, management services, and proven experience, which will provide the best benefit for Tukwila citizens; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUICWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The recitals set forth above are hereby adopted as findings for the purpose of this resolution. Section 2. In accordance with RCW 39.04.280(1)(a), the competitive bidding requirements for the purchase of City government channel equipment and services are hereby waived. Section 3. The Public Works Department is authorized and directed to enter into a purchase agreement with TelVue Virtual Television Networks for equipment and services. PASSED BY THE C11 Y COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2007. ATTEST AUTHENTICATED: Verna Griffin, Council President Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Office of the City Attorney Resolution Number: C:I DGCUME— lkcdcsk \IACALS- 1 \Temp\GWViewer'Sole Source WN.doe LWJcso 9/62007 Page 1 of 1 tr y C of Tukw a ewe, \.t4 o N Utilities Committee UTILITIES COMMITTEE 0 Meeting Minutes 0 September 5, 2007- 5:00 p.m. PRESENT Councilmembers: Joan Hernandez, Chair; Joe Duffle and Dennis Robertson (filling in for Jim Haggerton) Staff: Jim Morrow, Frank Iriarte, Pat Brodin, Bob Giberson, Gail Labanara, Christy O'Flaherty, and Mary Miotke Guests: Chuck Parrish CALL TO ORDER: Committee Chair Hernandez called the meeting to order at 5:00 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Riverton Side Channel Grant Application Riverton Creek enters the Duwamish River by the TIB Bridge at SR599. This project will include removing the culverts to provide an open water connection to the river, construction of a trail bridge, and enhancement to the creek. Jim Morrow explained that there was a recent lawsuit between the Indian Tribes and the State regarding culverts blocking fish passage. This would resolve any fish passage issues and is consistent with the WRIA 9 Salmon Recovery Plan. Multiple grants will be applied for and staff will return to Council for any grant acceptance. INFORMATION ONLY. B. City Government Channel Council approved the City Government Channel in August 2006. Now the City needs to purchase equipment to broadcast over the channel. Frank explained that the City identified 4 criteria for the equipment and vendor; equipment must be digital and simple to operate and the vendor must have experience and a unique service. TVTN met those requirements and has 20 years of experience on the East Coast. TVTN offered three options with Option 1 being an integrated self contained f package. Option 2 includes accessibility to a library of programs. Option 3 is the same as Option 1, however there is sponsorship managed by TVTN. There will be a maximum of five sponsors that will each be able to broadcast up to 15 seconds every hour (for a total of 1 minute 15 seconds per hour). Dennis had an issue with staff time and what would be required and who would be our audience as we already have the Hazelnut, website and Parks Rec. brochures. Joan asked if we could eliminate anything to make it more cost efficient and Jim responded that there really is no way to measure how the information is getting to our citizens. Only Comcast subscribers pay the capital costs, but the City will have to pay the operation and maintenance costs that range from $5,382/yr for Option 1 to $1,004 /yr for Option 3. Also, all of the agreements with TVTN will be for 5 years. Dennis would like a buyout clause in the agreement as 5 years is a long time and we are unsure of the success of the channel. Joan thought it would be an excellent emergency operations tool and all three committee members agreed to Option 3. UNAiNIMOUS APPROVAL. FORWARD TO 9/10/07 COW.