HomeMy WebLinkAboutItem 8.2 TV30 Capital Budget Req~~~~ Off' nU~~~
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DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
CITY CLERK
File #1050-50
February 21, 2012
Honorable Mayor and City Councilmembers
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Joni Pattillo, City Manager ° ~'
Tri-Valley Community Television ("TV30") Capital Budget Request
Prepared by Roger Bradley, Assistant to the City Manager
EXECUTIVE SUMMARY:
The City Council will consider appropriating funds to support TV30 capital improvements.
FINANCIAL IMPACT:
Beginning July 1, 2011, the City began receiving new Public Access fees from cable television
providers. The expenditure of these fees under federal law is restricted to capital expenses
supporting public access programming. The adopted Fiscal Year 2011/2012 Budget did not
include any appropriation of Cable TV Facilities revenue (Fund 2811), pending the development
of a specific need being identified. TV30 has submitted a capital budget request. The City of
Dublin's proportionate share is $35,650 and adequate funds are available in unappropriated
reserves.
RECOMMENDATION:
Staff recommends that the City Council approve the budget change.
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Submitted By- „`
Assistant to the City Manager
DESCRIPTION:
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Submitted By
Administrative Services
Director
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Reviewed y
Assistant City Manager
At the November 18, 2011 Tri-Valley Community Television ("TV30") Board of Directors
meeting, the Board of Directors approved the establishment of a Capital Budget of $208,000 for
the station to replace and repair outdated equipment such as cameras, new hardware, and
program sets. TV30 budget requests are split among the Tri-Valley cities of Dublin, Livermore,
Pleasanton, and San Ramon on a proportionate basis with the City of Dublin's share currently at
approximately 17%. Thus, the TV30 Board of Directors is requesting that the City of Dublin
appropriate $35,650 for TV30 capital acquisition.
Page 1 of 2 ITEM NO. 8.2
Funding for this activity would come from revenue received from Comcast and AT&T, which
funds Education and Governmental programming. In particular, the City of Dublin receives, on a
quarterly basis, Public, Education, and Governmental (PEG) fees in the amount of 1 percent of
the City's cable service provider's gross revenues. The City of Dublin Fiscal Year 2011-2012
revenue budget estimate, projected the City would receive $122,700 in revenue from this
source. This funding must be used for capital acquisition only that supports public cable access
facilities. As TV30 is only purchasing capital items for the station, it would be appropriate for the
City Council to allocate PEG funds for this request.
In addition to the capital funding request, the TV30 Board directed the TV30 Executive Director
to annually prepare a budget request for each of the Tri-Valley cities for capital and operational
items, coinciding with the annual preparation of each city's budget. In past years, the City simply
passed through its annual disbursement of PEG fees to fund any and all capital and operational
expenses of the station. It is also important to note that they City could also use this funding to
offset costs of any capital projects that relate to cable access facilities. For example, upgrading
equipment or elements of the Council Chamber could be funded using PEG revenues rather
than being a General Fund expense.
As Staff has reported in the past, the Digital Infrastructure and Video Competition Act of 2006,
known as "DIVCA," changed the eligible usage of PEG fees to only capital expenses. As a
result, TV30 will be submitting annual General Fund operational requests to the City until it can
find aself-sustaining funding source for its operations. Currently, the Board of Directors and the
Executive Director are working to establish a fund raising foundation to offset the annual general
fund requests to the City of Dublin from the $70,000 requested in FY 2011-12 to approximately
$46,000 in FY 2016-17. While the goal will be to have the station be fully self-sustaining at some
point in the future, it may take a number of years before that will be possible. In the meantime,
the Board of Directors has been advocating on the federal level to make the necessary
legislative changes that would allow PEG fees to again be used for both operational as well as
capital expenses.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. Budget Change Form
Page 2 of 2
CITY OF DUBLIN
BUDGET CHANGE FORM FISCAL YEAR 2011/2012
New Appropriations (City Council Approval Required)
Budget Transfers:
CHANGE FORM #
X From Unappropriated Reserves
From New Revenues
From Budgeted Contingent Reserve
(1001.1901-81101)
Within Same Department Activity
Between Departments (City Council Approval Reqd)
Other
DECREASE BUDGET ACCOUNT AMOUNT INCREASE BUDGET ACCOUNT AMOUNT
Name: EXPENDITURE: Cable TV
Facilities Fund - (Community TV) Contract
Services General (Tri-Valley Community
Television -Equipment Grant) $35,650
Account #: 2811.7101.64001
REASON FOR BUDGET CHANGE ENTRY: The City participates in Tri-Valley Community
Television, anon-profit, which provides Education and Government public programming to Dublin
and surrounding cities. Beginning in Fiscal Year 2011 / 2012 the City began receiving new
access fees from cable television providers. The use of the access fees are restricted to capital
expenses associated with public access. As presented at the City Council meeting February 21,
2012, Tri-Valley Community Television has requested that the participating cities fund cable
access equipment and the City of Dublin share is $35,650. The adopted Budget did not include
any appropriation of funds from this revenue source, pending the development of a specific need
being identified. This Budget Change will appropriate funds for the City of Dublin share of an
equipment grant to Tri-Valley Community Television.
As Presented at the City Council Meeting on: Date: 2/21/2012
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Posted By: Date:
City Council Minutes Excerpt Attached Reviewed By:
G:IBudgetChangesl4_2011_12121_2_21_12_CableTV GrantTrri_Vlly_TVdoc
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