AGENDA #2d
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Public Forum to Consider a Potential Change in Cablevision Public Access Fees Paid by Cable Television Customers
DATE: November 8, 2004
INTRODUCTION
On October 27, the Town Council adopted a resolution that called for tonight’s 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:
Following tonight’s forum, the Manager will return to the Council with a follow-up report for consideration on November 22.
“Public access” refers to non-commercial programming produced or submitted by citizens to be carried on the cable system.
Notices of tonight’s forum were published in The Chapel Hill News on November 3, and 7, and cablecast on The Peoples Channel (Channel 8) (Attachment 1).
BACKGROUND & 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 November 11, 1996, and amended that amount to:
Public access fees collected by Time Warner Cable on behalf of the Town go 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 72-cent per month public access fee generated $113,017 for the fiscal year ended June 30, 2004.
Each year, the Council decides whether to increase, maintain, or reduce the public access fee. The 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%, 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. The inflation factor for the previous 12-month fiscal period is 2.31.
A 2.31 % change would result in an increase in the fee from 72 cents to 74 cents per customer per month, beginning January 1, 2005. With the increase, revenue would be approximately $114,500, an additional $1,500.
NEXT STEPS
We recommend that the Council refer all comments from the forum to the Manager and Attorney. We will present a final recommendation to the Council at its November 22 meeting.
1. Public Forum Notice (p. 3).
PUBLIC FORUM
7 p.m. Monday, Nov. 8
Town Council Chambers, Town Hall
306 N. Columbia Street
Chapel Hill, NC 27516
All citizens are invited to participate in a public forum on the supplemental public access fee for cable television (now 72 cents per month). 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 a public access fee. The public access fee charges are collected by Time Warner Cable and then turned over to the Town.
Comments are also welcome by fax (919-969-2063) or by electronic mail ([email protected]).
For more information, please contact the Town Manager’s office at 919-968-2743 or via fax, email or mailing address as listed above. See also the Town’s web site: www.townofchapelhill.org.