AGENDA #4c
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Scheduling a Public Forum to Consider a Potential Change in Cablevision Public Access Fees Paid by Cable Television Customers
DATE: October 22, 2001
INTRODUCTION
The purpose of this memorandum is to present options for potential adjustment of the public access fee charged to cable television customers. “Public access” refers to non-commercial programming produced or submitted by citizens to be carried on the cable system.
The attached resolution would refer this matter to the Manager for recommendations and call a public forum for November 12.
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 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, to 67 cents on November 25, 1998, to 68 cents on November 22, 1999, and to 69 cents on December 11, 2000.
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 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. At the April 9, 2001 meeting, the Council authorized the Manager to negotiate a renewed performance agreement with the channel. The renewed agreement was made effective July 5, 2001. The Peoples Channel, Inc. submitted its annual report to the Council at the April 9, 2001 meeting. A summary of the report is attached (Attachment 1).
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 69-cent per month public access fee generated about $100,317 for the fiscal year ended June 30, 2001.
Each year, the Council decides whether to increase, maintain, or reduce the public access fee.
General Comments:
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, for the previous 12-month fiscal period. The most recently-published 12-month inflation figure is 2.2%.
Substantive Options:
1. Direct Time Warner 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 increased an average of 2.2% from July 2000 to June 2001. A 2.2% change would result in an increase from 69 cents to 70 cents per month, beginning January 1, 2002, which we believe is a reasonable increase. The increase would generate approximately $101,771, or an additional $1,454 in 2002.
2. Make no change in the current fee.
3. Reduce or eliminate the public access fee.
Procedural Options:
1. Call a public forum for November 12.
2. Take no further action and leave the fee at its present level of 69 cents per month.
Manager’s Recommendation: That the Council adopt the attached resolution and refer this matter to Manager for recommendations and call a public forum on November 12.
1. Memorandum dated April 9, 2001, Summary of Peoples Channel 2000 Report (p. 4).
A RESOLUTION REGARDING THE SUPPLEMENTAL PUBLIC ACCESS RATE FOR CABLE TELEVISION IN CHAPEL HILL (2001-10-22/R-4)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council calls a public forum on November 12, 2001, to receive comments on whether the supplemental public access rate should be: adjusted for inflation to 70 cents per month; continued at the present rate of 69 cents per month; reduced; or eliminated.
This the 22nd day of October 2001.