AGENDA #4c

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	Catherine Lazorko, Public Information Officer
SUBJECT:	Resolution to Increase Cablevision Public Access Fees
DATE:	November 19, 2007

The attached resolution would increase the cablevision public access fee from 78 to 80 cents based on the inflation factor.

INTRODUCTION

On November 7, 2007, the Town Council held a public forum to receive comments on the potential adjustment of the public access fee charged to cable television customers.  The public access fee rate may be:

• adjusted for inflation to 80 cents per month;
• continued at the present rate of 78 cents per month;
• reduced; or
• eliminated.

“Public access” refers to non-commercial programming produced or submitted by citizens to be carried on the cable system.

At the forum, the executive director of The Peoples Channel and a board member of The People Channel spoke in favor of the public access services. 

BACKGROUND AND DISCUSSION

The cable television franchise approved by the Council and accepted by Time Warner Cable in July 1996 allows the Town to have cable customers billed for a public access fee.

The Town began charging a public access fee of 65 cents under a resolution adopted by the Council on December 4, 2006, and amended that amount to:

• 66 cents on November 13, 1997
• 67 cents on November 25, 1998
• 68 cents on November 22, 1999
• 69 cents on December 11, 2000
• 70 cents on November 26, 2001
• 71 cents on December 9, 2002
• 72 cents on November 24, 2003
• 74 cents on November 22, 2004
• 76 cents on November 21, 2005
• 78 cents on December 4, 2006

Under the agreement with The Peoples Channel, the public access fees are transferred to The Peoples Channel to provide public access television services.  The purpose of the public access fee is to help cover wages, equipment, rent and other costs for management and operation of public access cable television services.  The current 78-cent per month public access fee generated $121,432 for the fiscal year ended June 30, 2007.

Each year, the Council decides whether to increase, maintain, or reduce the public access fee. The cable franchise allows the Town to reduce, eliminate, or increase the public access fee once per year. The increase in a given year is limited to an inflation factor or 3 percent, whichever is less. The inflation factor is the increase in the most recent Gross National Product-Price Index (GNP-PI) published by the U.S. Department of Commerce, Bureau of Economic Analysis.  According to the Federal Communications Commission, the inflation factor for the previous 12-month fiscal period is 2.6 percent.

A 2.6 percent change would result in an increase in the fee from 78 cents to 80 cents per customer per month, beginning January 1, 2008. The increase would raise an additional $3,192 for The Peoples Channel.

CONCLUSION

Based on our evaluation of the proposed public access fee increase, our conclusion is that the increase complies with the terms and conditions outlined in the cable television franchise agreement, and that therefore the Council may, if it so chooses, approve the increase.