AGENDA #2(b)
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 25, 2002
INTRODUCTION
On November 11, 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 December 9.
“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 20 and 24 and broadcast on The Peoples Channel (Channel 8) (Attachment 1).
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:
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 renewal of the performance agreement with The Peoples Channel in July 2001. The Peoples Channel submitted its annual report to the Council at the April 22, 2002 meeting. A summary of the report is attached (Attachment 2). We expect the next Annual Report for The Peoples Channel in April 2003.
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 70-cent per month public access fee generated $105,455 for the fiscal year ended June 30, 2002.
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, for the previous 12-month fiscal period. According to the Federal Communications Commission, this figure was 1.15%.
The Manager’s preliminary recommendation is that the Council adopt Resolution A, which would increase the public access fee to 71 cents per month.
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 December 9 meeting.
1. Public Forum Notice (p. 4).
2. Memorandum dated April 22, 2002, Summary of The Peoples Channel 2001 Report (p. 5).
Manager’s Preliminary Recommendation
RESOLUTION A
A RESOLUTION ADOPTING AN INFLATION ADJUSTMENT TO THE PUBLIC ACCESS FEE BILLED TO CABLE TELEVISION CUSTOMERS IN CHAPEL HILL
WHEREAS, on November 25, 2002, the Town Council held a public forum on whether to increase the cablevision public access fee; and
WHEREAS, a one-cent increase in the public access fee would generate about $1,500 in additional annual 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 70 to 71 cents per month, beginning January 1, 2003.
This the _______day of _________, 2002.
PUBLIC FORUM BY THE CHAPEL HILL TOWN COUNCIL ON POTENTIAL ADJUSTMENT TO THE PUBLIC ACCESS CHARGE PAID BY CABLE TELEVISION CUSTOMERS
Monday, NOVEMBER 25, 2002 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 25, 2002, on the supplemental public access fee for cable television (now 70 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.
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.
AGENDA #5c
TO: Mayor and Town Council Members
FROM: W. Calvin Horton, Town Manager
SUBJECT: Summary of The Peoples Channel 2001 Annual Report
DATE: April 22, 2002
The purpose of this memorandum is to present summary information from The Peoples Channel’s Annual Report.
The Peoples Channel has submitted its Annual Report to the Town of Chapel Hill for Calendar Year 2001 (Attachment 1). The Peoples Channel is a non-profit corporation organized by area citizens to provide community access television in Chapel Hill. The Channel is a tax-exempt, non-profit 501(c)(3) corporation. We believe that the channel has met the requirements of the Performance Agreement with the Town, as adopted on June 25, 2001.
I. Facilities & Services
A. Governance. The Peoples Channel is governed by a Board of Directors whose members serve without compensation. Under provision of its bylaws, members of the Board of Directors are selected by approval of the Board of Directors at any meeting of the Board.
B. Staffing. There are currently two (2) full-time positions and one (1) part-time position. The position of Station Manager is now vacant due to the sudden death of previous manager Matthew Burke on February 26, 2002.
C. Programming and Scheduling. During 2001, The Peoples Channel aired 32 locally-produced series (six more than last year) and 57 locally-produced one-time programs (12 more than last year).
II. Funding and Development
A. Funding and Other Contributions
1. The Peoples Channel receives funding from several sources, primarily public access fees collected by Time Warner from cable customers under the Franchise Agreement. The cable television franchise approved by the Council and accepted by Time Warner in July 1996 allows the Town to have cable customers billed a public access fee. On November 26, 2001, the Council approved an increase in the monthly subscriber public access fee from 69 cents to 70 cents, based on inflation. Under the Performance Agreement with The Peoples Channel, the Town pays The Peoples Channel these public access fees, which are collected by Time Warner in customer bills.
2. The Channel’s profit and loss statements for the calendar year 2001 are included as Attachment 2. The statements reflect total income of $136,616 and total expenses of $136,639, leaving a deficit of approximately $23. The Peoples Channel’s Treasurer reports that the Channel used interest earnings from prior fiscal years to fund special projects this year.
3. The Channel’s financial records have been audited through June 30, 2001 and were found to conform to generally-accepted accounting principles (Attachment 3). We note that the audited financial statements are for fiscal year 2000-01 and do not correspond with the profit and loss statements for the calendar year.
B. Other Contracts and Performance Agreements
1. The Peoples Channel has negotiated with other communities for service:
(a) Orange County Board of Commissioners. In the summer of 2001, the Channel entered into a contract with Orange County to tape and cablecast Board meetings. The Channel has used private funds and purchased equipment for a mobile field studio. Volunteers installed studio lighting at the Southern Human Services Center in Chapel Hill, where many of the meetings are held.
(b) Presentations to other franchise authorities. In 2001, the channel also organized a petition for interested Carrboro residents to obtain public access service in Carrboro. Due to lack of funds, the Carrboro Board of Aldermen concluded that they could not afford to fund public access.
IV. Future Directions
A. Equipment. The Peoples Channel has developed a schedule for long-term replacement of equipment. To date, despite its heavy use, the channel has only needed to replace one camera and has made arrangements to do so.
B. Community outreach. The channel worked in 2001 to contact the Latino community to facilitate productions directed to Latino viewers.
C. Proposed Performance Agreements with other Franchising Authorities. The Peoples Channel is currently working to secure performance agreements with Orange County, Carrboro, Hillsborough, and Chatham County. As we understand it, the funding mechanism for these agreements has not yet been determined.
That the Council receive the attached Annual Report.