ELKO TELEVISION DISTRICT BOARD MEETING February 9, 2017 CALLED TO ORDER: 6:00 PM Roll Call: Betsy Brian, Paul Gardner, Steve Guitar, Rick Jimenez, and John Wahrenbrock Guests: Dale Lotspeich represented Eagle Communications and Stephanie Smith represented McMullen, McPhee & Company, LLC. Public Comment: None Approval of Minutes from January 12, 2017 Meeting: Betsy Brian motioned to approve the minutes as written. Steve Guitar seconded, and vote was unanimous in approval. 1. APPROVE TREASURER S REPORT Attached Jon Wahrenbrock reviewed the Treasurer s reports for the record. There was no discussion. Betsy Brian motioned to approve the reports, seconded by Steve Guitar. Vote was unanimous in approval. 2. APPROVE AND RATIFY OUTSTANDING BILLS FOR PAYMENT Attached Jon Wahrenbrock reviewed the Unpaid Bills Summary for the record. He also motioned for approval of the presented bills for payment. Steve Guitar seconded the motion. Betsy Brian inquired on the status of submeters on Grindstone, to offset costs. Dale and Paul confirmed that the smart meters were not installed yet. Rick Jimenez pointed out that the rent charges covered the power bill. All voted in favor of the motion of approval. 3. DISCUSS BUDGET VS. ACTUAL EXPENSES Discussion Item Paul noted that Ross Eardley at McMullen, McPhee & Company, LLC had confirmed that this agenda item could be a treasurer duty, off the agenda, and be referenced as needed. Jon Wahrenbrock briefly reviewed the budget reports for the record. Jon then motioned to dispense with the monthly reading of the Budget vs. Actual Expenses report at future meetings, allowing the treasurer to review this report and encouraged the board to always ask any question they may have about the budget. Steve Guitar seconded the motion. Betsy Brian asked that the report be kept in the board packets. All voted unanimous in favor of Jon s motion. Paul noted that the budget line for supplies should be watched carefully, as it was nearing its limit. 4. DISCUSSION AND POSSIBLE ACTION ON DEPT. OF TAXATION REQUEST FOR WRITTEN RESPONSE ON FISCAL YEAR 2018 PROPERTY TAX RATE Jon Wahrenbrock explained that the assigned ad valorem tax rate for the current fiscal year was 0.0145%. It was estimated that this would yield $152,492 for the current year. 1
There had been discussion last year about raising that rate, but an increase had not been requested. Jon recommended that the rate stay the same for the upcoming year, and let the state know that the Elko Television District would not seek an increase. Jon Wahrenbrock motioned that the Elko Television District retain the current property tax rate of 0.0145% for the upcoming Fiscal Year budget process. Rick Jimenez seconded the motion. All voted unanimous in approval. 5. UPDATE DISCUSSION AND POSSIBLE ACTION ON ACCOUNTS RECEIVABLE REPORTING CORRECTIONS AND POSSIBLE ADJUSTMENTS FOR EAGLE COMMUNICATIONS UNBUILT SITES Paul asked Stephanie Smith to clarify why this item was on the agenda again. Stephanie pointed out the spreadsheet in the board packet, showing a requested adjustment of $3,200.00, including amounts billed for four unbuilt sites. She explained the history on previous adjustments on some of the sites on 2015 and 2016 invoices. Jon Wahrenbrock noted that the board had approved a $6,400.00 adjustment for the unbuilt Pequop and Peavey sites, at the September 2016 board meeting. He stated that this was a significant adjustment already. He expressed empathy over the lack of build-out at the sites, but noted that wasn t the board s responsibility. Paul confirmed that this was a new request for another $3,200.00 in adjustments. Stephanie explained that Eagle was trying to reconcile their records and come up with a plan to pay the arrears on their rents in a timely manner, and that an adjustment would help them do so. Jon confirmed that billing for Pequop was now cancelled. Dale Lotspeich confirmed that Peavey went online at the first of the year. He noted that the rent for Star Valley ranch link site would not be back billed to the District, in consideration of the requested adjustments. He reminded the Board that the last meeting had produced an agreement that Peavey rents owed by Eagle Communications and Star Valley rents owed by Elko Television District would be equal, at $3,200.00 per year. He further noted that Ken Wiley had made the request for the adjustment at the last meeting, and that the Board had requested more information about the figures. Paul stated that there had already been $6,400.00 in relief given on the rents. He asked Stephanie for clarification on the credit request. She explained that Eagle Communications had expressed interest in trading the consideration of the credits from the District, for the unbuilt sites, with reciprocating consideration of no back rent charges on the Star Valley site from Eagle Communications. Dale confirmed this understanding. He noted that there were delays on the Peavey build out and now it was ready to run concurrent with the contract for the Star Valley site. Paul Gardner asked if any member of the Board wanted to act on the item. He stated that there may be further discussion and clarification if the matter was not resolved. 2
6. DISCUSSION AND POSSIBLE APPROVAL OF REQUEST FROM KNS COMMUNICATIONS (ON BEHALF OF BARRICK) TO INSTALL FIBER CONNECTION BETWEEN BUILDINGS ON GRINDSTONE TO LINK CURRENT DISHES AND NETWORK ON 100 TOWER Dale Lotspeich explained KNS construction plans on Grindstone, to help link to Mt. Lewis. They need to lay a temporary armored cable and eventually build a protective bridge from the brick building. Dale explained that KNS basically needed approval of two phases of work. They needed a temporary link and a future ice bridge. The cost would be on KNS/Barrick, and they could cede the situation to the District for maintenance. This would replace the wooden structure on site, take materials off the ground. There would not be any roads crossed, the work would be in a foot traffic area only. Rick Jimenez stated his support of the project, but recommended giving a one-year deadline for the permanent structure to be finished. He didn t want the temporary link to be become permanent. Dale suggested approval of the temporary link and recommended requesting a permanent plan in a schedule. Jon Wahrenbrock motioned to approve construction of the temporary link between the concrete building and the tower, with a one-year limit on the temporary link use and submission of an engineered permanent plan for approval. Steve Guitar seconded the motion. Dale confirmed that this request was from Barrick, through KNS. All voted in favor of the motion. 7. DISCUSSION AND POSSIBLE ACTION ON CURRENT LEASE STATUS WITH BARRICK AND DECISION OF FUTURE BARRICK LEASE OPTIONS AND PRICING Jon Wahrenbrock noted that Barrick was still on the old tower, and had not been paying rent. He did not object to them staying on the tower and signing a new lease, according to their number of racks and use of the tower. Dale offered to get the details of a draft lease together. Jon asked for a back date of February 1, 2017. The Board had assumed that the equipment had been moved off the old tower. Dale confirmed that he had found the equipment still onsite, in use, and had brought it to Jon s attention. When KNS went to provide a plan for moving the equipment, Barrick expressed their wish to stay on the Elko Television District tower. They liked the pricing better and did not want to move. Dale estimated that KNS was going to charge Barrick $12,000-$14,000 per year. Paul confirmed that this was a lot more than what Elko Television District could consider charging, because the District had a duty to maintain reasonable, comparable rates for all sites. KNS had asked the District to raise their rates, to be more competitive. Jon Wahrenbrock motioned to instruct Eagle Communications to draw up a draft tower rental agreement with Barrick, including pricing according to the District s schedule, to begin a lease term at February 1, 2017. Paul Gardner asked why the lease would not be back dated to the date that Barrick stopped paying, since they had never ceased use of the tower. Betsy asked if Barrick 3
had paid, or believed they were paying, someone for tower rent, for the period in question. Dale confirmed that he could ask his contacts at Barrick. Betsy Brian seconded the motion. Jon clarified his motion as it was stated. All voted in favor of the motion. 8. UPDATE DISCUSSION AND POSSIBLE ACTION FOR AN UPDATED AGREEMENT WITH BY SPRENGER, OWNER OF VIRGINIA PEAK PROPERTY ANNUAL LEASE Rick asked if there was any update on Humboldt s progress. The next agenda item was referenced. Jon Wahrenbrock motioned to approve the month to month lease with By Sprenger, at $1,500.00 per month. The motioned died for lack of a second. Paul noted that this matter had already been acted on for approval, after Mr. Sprenger did not accept other terms or rates. Paul stated that he wanted to stay ahead of each month and make sure the monthly rent was paid on time. There was general discussion of eventual termination of the lease and use of the Virginia Peak site. Dale stated that the next agenda item was in action in Humboldt County 9. DISCUSSION ON HUMBOLT COUNTY PLANS FOR PURSUING FIBER OPTIONS FOR BRINGING SIGNALS TO WINNEMUCCA Dale explained that all sides were in agreement and working through matters. There was a fiber lease with KRNV/Sinclair Broadcasting and use of Frontier tees to bring signal to KENV studio, then signal was sent to Grindstone and rebroadcast. This is where the problems arise, with use of the copper tees. Humboldt was looking for progress, and RX3 Communications is working on going around Frontier. Dale stated that he was hoping to see a figures soon, for Elko Television District to compare against other proposals. Rick Grantham was in communication with the legal team. A memorandum of understanding was in the works. Dale noted that he is also working on the Salt Lake City channels. This wasn t a priority yet for RX3, but that an internet lease line was in discussion. Paul Gardner stated that there was a scheduled meeting in March at the Channel 4 studios, which would duplicate some efforts, but all in the goal of cooperation with the engineers. 10. DISCUSSION ON ESTABLISHING FORMAL PARTNERSHIP TO PURSUE FIBER OPTIONS FOR BRINGING TV SIGNALS TO ELKO & WINNEMUCCA INSTEAD OF MICROWAVE This item as tabled, as being part of the previous discussion. 11. UPDATE DISCUSSION AND POSSIBLE APPROVAL OF COST SHARING PROPOSAL BY SATVIEW BROADBAND FOR RENO STATIONS SIGNAL DELIVERY There was general discussion and agreement of moving forward with Humboldt County. This item was tabled for future discussion. 4
12. DISCUSS AND POSSIBLE APPROVAL OF ADDITIONAL WORK, EQUIPMENT & IMPROVEMENTS AT VARIOUS SITES Dale wondered if the Board wanted to move forward on upgrading equipment on Lamoille, to provide for the compatible link with fiber from Reno. He suggested reviewing pricing for approval in March, so that equipment could be ordered and brought online while Humboldt County work progressed. Rick Jimenez asked for clarification on why Lamoille upgrades would be a priority in the move to fiber, from the Winnemucca side. Dale explained that Humboldt is ahead of the game on their upgrades and progress. Bypassing Toulon and Virginia Peak is more possible with upgrades happening around Winnemucca. Improvement on infrastructure on Lamoille would be a concurrent effort, to avoid future delays on equipment orders and budget limits. There was a general discussion on the equipment upgrades, order lead time and technology changes/options. It was agreed that preliminary budget numbers would be helpful. 13. REPAIR SERVICE REPORT AND SITE UPDATES Dale reviewed the service report. He explained that there were team efforts between agencies involved in complaints/issues, made possible by good communication and working together. Dale noted that he spoke with Shelly Need with Pershing County Television District, and that she is seeking more information and guidance. Paul offered to go along on a tour with Pershing County to review their equipment and taps. Dale explained Pershing s communication over budget concerns with leases, equipment, and keeping signals online. 14. DISCUSSION AND POSSIBLE ACTION ON PLANNING ATTENDANCE AT THE MAY 2017 NTA CONVENTION Paul noted that the district was a sustaining member of the NTA. He discussed approving lodging and a stipend for travel. Betsy Brian motioned to approve up to $2,000.00 for travel, registration and conference attendance at the NTA Convention in Denver. Steve Guitar seconded the motion. All voted unanimous in favor. 15. DISCUSSION AND POSSIBLE ACTION ON 2017 ELKO HOME & BUSINESS EXPO PARTICIPATION Betsy noted that the Board participated in this event last year, and gave away two antennae, in an effort to promote the Elko Television District. Dale explained that he had promo flyers, but no pens left. He would obtain two antennae and bill the Board for them. There was a general discussion on costs. Paul Gardner recommended a $750.00 budget for the event, including the registration, pens and antennae. Betsy felt that it may cost a little more, and requested a $1,000.00 budget limit. Rick agreed that giveaway items would be important. 5
Steve Guitar motioned to support the Chamber of Commerce with participation in the 2017 Elko Home & Business Expo, with a budget of $1,000.00 for related expenses, under the coordination of Betsy Brian. All Board Members voted aye, except Paul Gardner who noted no because he felt that the budget should have remained at $750.00. 16. OLD BUSINESS Jon Wahrenbrock brought up a September communication from Southwest Gas about equipment additions on their leased tower. Dale offered to review and rework a lease addendum to cover the additional equipment. Betsy Brian noted that she would be traveling in March and unable to attend the next meeting. 17. NEW BUSINESS None. Public Comment. None. The meeting was adjourned at 7:12 p.m. 6