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HomeMy WebLinkAbout05-20-2014 C6 PEG UpdateCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Anthony Mejia, City Clerk SUBJECT: UPDATE TO THE PUBLIC, EDUCATIONAL AND GOVERNMENTAL (PEG) ALLOCATION MODEL AND CONTRACT AMENDMENT WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR RELEASE OF PEG FUNDS (E-PORTION) RECOMMENDATIONS 1. Modify the allocation model for Public, Educational and Governmental (PEG) Access funds to eliminate funding for public access and allocate 50% of PEG funds for educational and governmental access. 2. Approve, and authorize the Mayor to execute, the First Amendment to the Agreement between the City of San Luis Obispo and San Luis Unified School District for Release of PEG Access Funds (E-Portion), retroactively to August 4, 2012 through August 4, 2015. DISCUSSION PEG Allocation Model PEG funds are collected pursuant to the City’s Municipal Code, and the permissible uses of these funds are dictated by State and Federal law. PEG funds, which are currently collected from Charter Communications through a surcharge on City residents’ cable television bills, may only be used for costs associated with the purchase and maintenance of equipment and facilities used in the production of PEG programming. State and Federal law contains no directives regarding the share of funding allocated to the public, educational or governmental channels. At the May 17, 2011 Council Meeting, Council terminated the City’s contract with San Luis Obispo County Public Access (SLOCPA) for use of Public Access funds due to misappropriation of public funds by its former Chairperson. Council also directed staff to return with an updated allocation model for PEG funds. The proposed model would eliminate allocations to public access and would evenly split PEG funds between educational and governmental access. San Luis Coastal Unified School District Contract Amendment The agreement for release of PEG Access Funds (E-Portion) between the City of San Luis Obispo and San Luis Coastal Unified School District expired on August 4, 2012. The agreement contained provisions to extend the agreement for two additional periods of three (3) years. The proposed First Amendment to the Agreement would retroactively extend the contract through August 4, 2015. In addition, Section 13 (Funding and Other Resources) would be amended to indicate that the City agrees to release one-half of all PEG access funds to SLCUSD. 05/20/2014 C6 - 1 PEG Allocation Model and SLCUSD Contract Amendment Page 2 Public Access Television With the advent of consumer-level resources for video production, even producers with minimal resources are able to produce quality programming for Channel 2. Prior to 2011, very few producers that aired shows on Channel 2 regularly used the City’s equipment managed by SLOCPA. During the time that the City has stored this equipment, Channel 2 has continued to show new content that is produced independently and provided directly to Charter Communications for scheduling and airing. FISCAL IMPACT There are no fiscal impacts to the General Fund associated with these recommendations. The Public Access cash balance of $319,473 will be evenly divided between the educational and governmental access channels and future deposits will be distributed on a 50/50 basis. ATTACHMENTS 1. SLCUSD Contract Amendment t:\council agenda reports\2014\2014-05-20\peg allocation model (mejia)\peg allocation model - car.docx C6 - 2 FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF SAN LUIS OBISPO AND SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR RELEASE OF PEG ACCESS FUNDS (E-PORTION) THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on ______________, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and San Luis Coastal Unified School District, hereinafter referred to as “SLCUSD”. WITNESSETH: WHEREAS, on August 4, 2009 the City entered into an Agreement with SLCUSD for the release of PEG access funds (E-Portion). NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. Section 13 (Funding and Other Resources) is hereby amended to read as follows: The City agrees to release to SLCUSD one-half of all PEG access funds that it receives from Charter Communications for PEG access equipment and facilities purposes within 60 days after the funds are received. Upon termination of this Agreement, the E-portion of PEG access funds received by the City that have not been expended or committed via written contract by SLCUSD shall be returned to the City within 60 days. 2. Section 14 (Term of Agreement) is hereby amended to provide for a term of three (3) years commencing on August 4, 2012 and ending on August 4, 2015, unless terminated earlier, as provided in this Agreement. This agreement may be extended, by mutual agreement of the City and SLCUSD, in writing for one additional period of three (3) years in accordance with this Agreement. 3. All other terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. ATTEST: CITY OF SAN LUIS OBISPO ____________________________________ By: ____________________________________ City Clerk Jan Howell Marx, Mayor APPROVED AS TO FORM: CONTRACTOR _____________________________________ By: ____________________________________ City Attorney Eric Prater, Ed. D., Superintendent C6 - 3 Page intentionally left blank. C6 - 4 MAY 16 2014 J.l+ Council Memorandum __ I- r) -FY Cm FRI< - AGENDA Date. May 16, 2014 cari-RESPONDENCE TO: City Council ra 4'j - ao- 14 Item# (°' FROM: Anthony Mejia, City Clerk VIA: Katie Lichtig, City Manager SUBJECT: Public, Educational and Governmen I (PEG) Funding Staff received an inquiry from a Council Member concerning the future of the PEG Program following the transfer of customers from Charter Communications to Comcast. In response, staff contacted Lisa Ludovici, Senior Governmental Affairs Manager for Charter Communication, who advised that the proposal is pending approval which could take more than a year, that no changes concerning PEG are anticipated at this time, and it is too early to determine whether Comcast will make operational changes which could impact the PEG program. It should be noted that both Charter Communications and Comcast are regulated under franchise agreements issued by the California Public Utilities Commission (CPUC) under the Digital Infrastructure and Video Competition Act (DIVCA) which establishes the provisions for collecting PEG fees.