Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Ann M. Stillman, Director of Public Works
Subject: Public, Education, and Governmental Access Capital Funds for Coastside
RECOMMENDATION:
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Adopt a resolution authorizing the Director of Public Works to distribute Public, Education, and Governmental access capital funds to the Public, Education, and Government access provider for the County coastside area.
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BACKGROUND:
On April 4, 2006 this Board executed Resolution No. 067916, which authorized a 15-year Cable Franchise Agreement (franchise agreement) with Comcast. The franchise agreement stipulated that the County would receive $379,908 in Public, Education, and Governmental (PEG) access capital funds (PEG funds) over the term of the franchise agreement. The franchise agreement required that PEG access channels be broadcast to their subscribers in Moss Beach, Montara, El Granada, Princeton, Pescadero, and La Honda.
Concurrent with the execution of the Franchise Agreement, this Board adopted Resolution No. 067917, which authorized the Director of Public Works to distribute $231,042 in PEG grant funds to coastside PEG access provider, who was at the time Mid-Coast Television, Inc. The PEG fund allocation was based on coastside cable subscribers, which was approximately 23% of the total County unincorporated area cable subscribers at that time. The distribution of PEG funds are at the sole discretion of the County and must be used on PEG capital expenses.
Beginning in December 2010 and concluding in 2011, the County and City of Half Moon Bay (City) collaborated on a request for proposals from PEG providers for the provision of PEG services to the coastside County (Moss Beach, Montara, El Granada, Princeton, Pescadero, and La Honda) and City areas. As a result, this Board executed Resolution No. 071437 on June 7, 2011 authorizing an agreement with Pacifica Community Television, now Pacific Coast Television (PCT), for the provision of PEG television services to the County coastside area. Also on June 7, 2011, this Board executed Resolution No. 071438 authorizing distribution of $68,160 in PEG funds to PCT, which represented the remaining PEG funds previously allocated by this Board to the coastside PEG provider. PCT has invoiced and received reimbursement in the amount of $6,613.91 since 2011 for PEG capital expenses and has not billed the County for the remaining $61,546.09 in allocated PEG funds.
DISCUSSION:
Upon expiration of the franchise agreement in April 2021, Comcast began providing cable service to the County under a State issued Franchise Agreement (Franchise Agreement). Pursuant to the Franchise Agreement, Comcast has been providing PEG capital funds to the County quarterly based on revenue from their subscribers in the County unincorporated areas. The County has received $378,832.88 in PEG fees pursuant to Comcast’s State Franchise Agreement from April 2021 through December 2024. As stated above, use of the PEG fees is at the discretion of the County and it is desirable to determine the use of the PEG fees pursuant to the Franchise Agreement. The County may use PEG funds on eligible expenses including Board Chamber equipment such as the audio, video and recording systems that are relied upon and necessary for broadcast of the Board meetings by PEG providers.
PCT has indicated a desire to receive a portion of the PEG funds received pursuant to the Franchise Agreement by the County based on the pro-rata share of the Comcast revenue generated from the coastside County subscribers. The PEG funds received by the County pursuant to the Franchise Agreement and a calculated pro-rata share of PEG funds generated from the coastside, which is approximately 35%, are shown in the table below.
This Board may consider the use of the PEG funds received under the Franchise Agreement and future use of PEG funds received by the County. The Department of Public Works recommends that a significant portion of the PEG funds received under the Franchise Agreement be used for the costs associated with the Board Chamber audio, video and recording systems. Should the Board desire to provide PEG funds to PCT, a methodology for determining the amount must be determined. It must be noted that without the system in the Board Chambers, PCT would not have the Board meeting content to air on their channel.
Additionally, the County has been providing two percent of the cable provider’s gross revenue in the coastside County area, which is equal to 40 percent of the franchise fee payments received by the County from the cable operator for the coastside County area, to the coastside PEG provider since 1995. This funding has been to support PEG access on the coastside and because the physical connectivity did not previously exist for PEG providers on the bayside to broadcast to the coastside. The passthrough amount based on these calculations is $70,084 and $65,591 for the 2023 and 2024 calendar years, respectively. This funding is separate and apart from the PEG funds discussed here. The financial support provided to the coastside PEG access provider is unique and not provided to other PEG providers to the County.
The County Attorney has reviewed and approved the resolution as to form.
COMMUNITY IMPACT:
Approval of this action supports the coastside PEG provider and helps enable delivery of PEG content that is well suited for the coastside residents. The PEG provider also offers programs in their studio that support PEG access for their viewers.
FISCAL IMPACT:
Payments to the coastside PEG provider (PCT), if approved by the Board, will be from the PEG Access Capital portion of the cable budget. There is no impact to the General Fund.