2005 AGN OCT 18 I18 - Laserfiche WebLink

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ITEM #18 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF OCTOBER 18, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DARYL PARRISH, CITY MANAGER SUBJECT: REQUEST APPROVAL OF BUDGET ADJUSTMENT REFLECTING THE RECEIPT OF THE CAPITAL CONTRIBUTION FROM ADELPHIA COMMUNICATIONS DATE: OCTOBER 5, 2005 BACKGROUND: On June 16, 2005, Ordinance 0-06-05 became effective, approving the cable television franchise agreement with Adelphia Communications. According to the franchise agreement the City of Colton will receive $150,000 up -front to be used as a capital contribution for PEG (Public, Educational, and Government) facilities and equipment. The equipment shall be utilized by the City for televising hearings and meetings of the City Council, commissions, committees and public bodies as may meet at City Hall for the conducting of public business. In addition to the capital contribution for PEG services required pursuant to the franchise agreement, Adelphia shall provide the City of Colton with ongoing capital support for PEG services in the amount of thirty-five ($.35) per subscriber per month. The ongoing capital support is anticipated to generate approximately $42,000 during the 2005/06 fiscal year. This revenue will be used to fund ongoing maintenance of equipment and facilities. DISCUSSION/ANALYSIS: On September 26, 2005, the City of Colton received payment from Adelphia Communications in the amount of $150,000 in up -front PEG support, and $3,828.30 for the month of August, in ongoing PEG support. The City Council has approved the franchise agreement in order to upgrade and modernize the equipment and facilities associated with the PEG channel, and to better serve the City of Colton residents. However, ongoing PEG support from Adelphia was not accounted for during the adoption of the 2005/06 fiscal year budget and therefore, requires a budget adjustment for $42,000.