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 21, 2005

 

 

The attached resolution would increase the cablevision public access fee from 74 to 76 cents based on the inflation factor.

 

INTRODUCTION

 

On November 9, 2005, 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 76 cents per month;
• continued at the present rate of 74 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, citizens spoke in favor of the public access services offered by The Peoples Channel. Those who spoke were all affiliated with The Peoples Channel through board membership and volunteerism.

 

 

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 November 11, 1996, 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

 

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 74-cent per month public access fee generated $115,003 for the fiscal year ended June 30, 2005.

 

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 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.  The inflation factor for the previous 12-month fiscal period is 2.29.

 

A 2.29 percent change would result in an increase in the fee from 74 cents to 76 cents per customer per month, beginning January 1, 2006.  With the increase, revenue would be approximately $117,635, an additional $2,633.

 

RECOMMENDATION

 

We recommend that the Council adopt the attached resolution, which would increase the public access fee to 76 cents per month, effective January 1, 2006.