AGENDA #4c
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Resolution to Increase Cablevision Public Access Fees by the Amount of the Inflation Factor
DATE: November 24, 2003
The attached resolution would increase the cablevision public access fee from 71 to 72 cents based on the inflation factor established in the franchise with Time Warner Cable.
INTRODUCTION
On November 10, 2003, 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 72 cents per month;
· continued at the present rate of 71 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. Public access fees collected by Time Warner Cable on behalf of the Town go to The Peoples Channel to provide public access television services, under an agreement between the Town and The Peoples Channel.
At the forum, six citizens spoke in favor of the public access services offered by The Peoples Channel.
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 November 11, 1996, and amended that amount to:
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 71-cent per month public access fee generated $110,341 for the fiscal year ended June 30, 2003.
Each year, the Council decides whether to increase, maintain, or reduce the public access fee. The franchise agreement allows the Town to reduce, eliminate, or increase the public access fee once per year. The increase in a given year is limited to the annual inflation factor or 3%, whichever is less. The inflation factor for this period was 1.5%. A 1.5% change would result in an increase in the fee from 71 cents to 72 cents per customer per month, beginning in January 2004. With this increase, we estimate that revenue would be approximately $112,000, or an additional $1,600. We believe that such an increase is reasonable.
That the Council adopt the attached resolution, which would increase the public access fee to 72 cents per month, effective January 1, 2004.
A RESOLUTION ADOPTING AN INFLATION ADJUSTMENT TO THE PUBLIC ACCESS FEE BILLED TO CABLE TELEVISION CUSTOMERS IN CHAPEL HILL (2003-11-24/R-3)
WHEREAS, on November 10, 2003, the Town Council held a public forum on whether to increase the cablevision public access fee; and
WHEREAS, a 1-cent increase in the public access fee would generate about $1,600 in additional funds;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby increases the public access fees from 71 to 72 cents per month, beginning January 1, 2004.
This the 24th day of November, 2003.