AGENDA #2
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Public Forum on Potential Change in Public Access Fees Paid by Cable Television Customers
DATE: November 27, 2000
INTRODUCTION
On November 13, the Council adopted a resolution that called for tonight’s public forum to receive comments on whether the supplemental public access rate should be: adjusted for inflation to 69 cents per month; continued at the present rate of 68 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 are fees assessed on subscribers’ monthly bills, collected by Time Warner Cable, and transferred to the Town. The Town then pays a non-profit organization, The Peoples Channel, Inc., to provide public access television services.
Notices of tonight’s forum were published in The Chapel Hill News on November 19 and November 22 and mailed or e-mailed to citizens who have expressed interest in public access. (Please see copy of notice, Attachment 1). Notice of tonight’s forum was also advertised on The Peoples Channel, channel 8.
Manager’s Procedural Recommendation: That the Council refer comments and questions from tonight’s forum to the Manager with a report to the Council on December 11.
Manager’s Preliminary Substantive Recommendation: That the Council increase the public access fee by the inflation factor permitted under the Town’s Cable Television Franchise Ordinance.
BACKGROUND
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 fee is now 68 cents per month. 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, to 67 cents on November 25, 1998, and to 68 cents on November 22, 1999.
The Council authorized a performance agreement in February 1998 with The Peoples Channel, Inc. The Peoples Channel has been providing public access television services since July 1, 1998. 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 68-cent per month public access fee generated about $92,000 for the fiscal year ended June 30, 2000.
OPTIONS
Cable franchise agreement:
The cable franchise agreement with Time Warner Cable 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, for the year since the anniversary of the Council’s decision to establish the fee. The most recently-published 12-month inflation figure is 2.08%.
Time Warner has agreed to a deadline of December 20 of each year for the Town Council to consider changing the fee.
Options for action on the supplemental public access fee:
1. Direct Time Warner Cable to increase the fee by the amount of the inflation factor.
The franchise states that the annual adjustment will be the amount of increase in the Gross National Product Price Index (GNP-PI), subject to a limit of 3% increase per year and subject to an overall limit of $1 per month as the maximum future fee.
The GNP-PI inflation factor is 2.08%. Such a change would result in an increase from 68 cents to 69 cents per month, beginning January 1, 2001.
2. Make no change in the current fee.
3. Reduce or eliminate the public access fee. Reducing or eliminating the public access fee would curtail or cease operation of public access programming currently operated by The Peoples Channel without an alternative source of funding.
Manager’s Procedural Recommendation: That the Council refer comments and questions from tonight’s forum to the Manager with follow-up report to the Council on December 11.
Manager’s Preliminary Substantive Recommendation: That the Council increase the public access fee by the inflation factor permitted under the cable television franchise. This would mean an increase from 68 cents to 69 cents per month.
1. Copy of the public notice for November 27 public forum on supplemental public access fees (p. 5).
2. Memorandum dated April 10, 2000, Summary of Peoples Channel 1999 Report (begin new page 1).
A RESOLUTION REFERRING COMMENTS FROM THE PUBLIC FORUM ON CABLE PUBLIC
ACCESS FEES TO THE TOWN MANAGER (2000-11-27/R-2)
WHEREAS, the Chapel Hill Town Council heard comments from citizens on November 27, 2000, regarding possible changes in cablevision public access fees;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the refers these comments to the Manager for a follow-up report on December 11, 2000.
This the 27th day of November, 2000.
PUBLIC FORUM BY THE CHAPEL HILL TOWN COUNCIL ON POTENTIAL ADJUSTMENT TO
THE PUBLIC ACCESS CHARGE PAID BY CABLE TELEVISION CUSTOMERS
Monday, NOVEMBER 27, 2000 at
7:00 p.m.
Town Council Chambers, Town Hall
306 N. Columbia Street
Chapel Hill, North Carolina 27516
All citizens are invited to attend and speak at a public forum at 7:00 p.m. on Monday, November 27, 2000, on the supplemental public access fee for cable television (now 68 cents per month).
Comments are also welcome by fax (919-969-2063) or by electronic mail ([email protected]).
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.
The fee is now 68 cents per month. Under the cable franchise, the Town Council normally must decide each year whether to increase the fee to adjust for inflation, maintain, reduce, or eliminate the public access fee. If an annual inflation adjustment were approved, the adjustment would likely be about 2%, or 1 cent, for an adjusted charge of 69 cents per month, beginning on January 1, 2001.
The Peoples Channel has been providing public access television services since July 1, 1998, as authorized by a Town performance agreement. 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 68-cent per month public access fee generated about $92,000 for the fiscal year ended June 30, 2000. The Peoples Channel manages and operates public access programming for channel 8 of the cable system.
For more information, please contact the Town Manager’s office at 919-968-2743 or via fax, email or mailing address as listed above.