Town Seal

Town of Chapel Hill
North Carolina

Executive Summary

Meeting Date: 10-15-2008
Time:                    7:00 PM

AGENDA #4o

Title of Agenda Item:  Response to Petition concerning the distribution of PEG funds

Background:  On June 9, 2008 Council approved a performance agreement with the Peoples Channel that included changes necessary to conform to the Video Service Competition Act.  Prior to the execution of that agreement, Town staff were advised by The Peoples Channel that clarifying legislation passed by the State Legislature in July conflicted with the distribution of PEG Subscriber Fees portion of the agreement.  The Peoples Channel provided suggested changes to the performance agreement and Town Staff with the assistance of the Triangle J Council of Governments Cable Consultant and NCLM Staff reviewed the suggested changes and attempted to determine the appropriate interpretation of the legislation.

Staff Recommendation(s):  That Council authorize the Town Manager to distribute Supplemental PEG Support and the PEG Subscriber Fees, accumulated prior to the clarifying legislation, on an equal split between the PEG channels currently supported through cable taxes. This would amount to $109,962 in one-time funding to The Peoples Channel, and $109,962 to the Chapel Hill Government Channel.

That the Council authorize the Town Manager to execute The Peoples Channel Performance Agreement, as revised and attached to reflect that the total amount of PEG Subscriber Fee Revenue collected after July 2008 would be allocated to The Peoples Channel.

In fiscal year 2008-09 and for as long as the franchise with Time Warner Cable is in place, The Peoples Channel would receive approximately $120,000 annually from these subscriber fees over and above its normal annual funding of approximately $120,000.

The Council may wish to have additional discussion with The Peoples Channel about its intended use of the new funding and the potential for supporting the Town’s strategic directions through public access television. The Peoples Channel annual report normally is submitted to the Council in October, and this fall may be an opportune time for this conversation.


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