HomeMy WebLinkAbout2015 PEGASYS Budget to Mayor & Trustees.pdfTO Mayor Kate Supron and Village Trustees
Village of Cayuga Heights
836 Hanshaw Road, Ithaca, NY 14850
by Email
FROM: Wies van Leuken, Village of Cayuga Heights Representative
Cable Access Oversight Committee
1105 Highland Road, Ithaca, NY 14850, <pmv4@cornell.edu>, 257-3156
DATE May 17, 2014
RE: 2015 PEGASYS Budget Recommendations from Access Oversight Committee (AOC)
Attached to this letter, please find the Resolution of the Access Oversight Committee of May 5, 2014 with
recommendations for the 2015 Budget for public, educational and governmental access operations
("PEGASYS" or “PEG” operations). Also attached is a statement of annual PEG collections and expenditures
to show the estimated balance we have available for this Budget. I will attend the Meeting of June 9, 2014 to
answer questions and hear your comments.
As you know, the City of Ithaca's Franchise Agreement with Time Warner Cable requires that the three
participating municipalities (The City of Ithaca, the Town of Ithaca and the Village of Cayuga Heights) (“The
Municipalities") approve a budget every year by June 30th while the Agreement is in effect. This Budget is
funded with the $.15/subscriber/month fee that is charged to TWC subscribers in the Municipalities. This "PEG
Fee" goes directly from the subscriber to TWC where it stays until the approved purchases are made. The AOC
drafts a budget for these purchases and submits it to the Municipalities for review and approval. This allows
subscribers, through their elected representatives, a say in what happens to their PEG Fees. Municipal
approvals are entered into the minutes of the AOC’s July meeting and submitted to TWC by the respective
AOC representatives. In the past, TWC would review these budgets at their Annual Budget Meeting in July,
after which spending accounts (“PEG Accounts”) would be set up and the purchasing process set in motion.
Equipment would start arriving in January of the next year .
As you know, the AOC learned earlier this year that during the last 4 years this Budget Meeting failed to set up
a PEG account. During the first 2 of those 4 years (2011 & 2012 Budgets), this was corrected retroactively by
Tom Doheny, Director of Government Relations, whose office is in Ithaca. Then the responsibility for PEG
operations was transferred to David J. Whalen (Director of Government Relations, CNY Division, Northeast)
whose office is in Binghamton, NY. TWC has undergone repeated reorganizations, staff reductions and re-
delegation of duties to people in offices at quite a distance from each other throughout the Northeast. And this
was one of them. Up to then TWC’s communications to the AOC were conveyed by Mr. Doney in person to
the PEGASYS’ Access Coordinator who reported them at AOC meetings which she attends. In turn the AOC’s
requests would be taken by her to Mr. Doheny.
Communications with Mr. Whalen took a while to get up to speed . Eventually the realization set in that no PEG
account had been set up for the 2013 and 2014 Budgets. In the process of getting things back on track, the AOC
got a glimpse of TWC’s process for PEG operations. This process, from PEG Fee collection to expenditure,
appears extremely complex and requires multiple departments throughout the Northeast. Setting up an account
is just one step of many. Knowledge of this process fell through the cracks during the many staff
reorganizations. It did not help that TWC never set up designated accounts to keep track of incoming and
outgoing PEG monies.
The AOC was in touch with Mr. Whalen on several occasions, then a formal letter was mailed to him, and then
Mayor Supron wrote to him. Finally in April, the 2013 and 2014 PEG monies were found and accounts for
their spending were set up. In Mr. Whalen’s defense I should say that he did schedule a phone-conference with
all the involved parties and directed them to locate the funds and set up spending accounts for their use. Also
the PEGASYS’ Access Coordinator is spending a lot of time moving the process along and talking to the many
people at TWC who have to have a part in it. I just learned from her, that the last approvals are in place and
equipment is being purchased.
The PEG Accounts set up under Mr. Whalen’s tenure are different from those in the past. They are no longer
“Capital Accounts” but “Operating Accounts”. This means that they no longer need to be reviewed at TWC’s
Annual Budget meetings, that purchases can be made throughout the year, and, possibly, that they could include
items other than Capital purchases. The latter is of great interest to the AOC. We would like to have a
computer with internet access in the studio, to have archiving capacity and to have a website and other means of
publicity. The City’s Franchise Agreement is unclear on these issues. TWC has, until now, allowed Capital
purchases only. We are planning a meeting with Mr. Whalen to discuss this matter in person.
Regarding the need for publicity, I should ad that currently PEG programming is cablecast in complete
anonymity. TWC has deleted any mention of public access from their website, does not include the PEG
channels in its TV menu or in its line-up in TV guides.
The budget before you is a placeholder budget that will allow the AOC to replace equipment during the
upcoming year as needed and hopefully make the purchases mentioned above. It addresses the current
equipment needs of community, government and educational access. Every year the AOC solicits proposals
from local educational institutions for equipment they need to show their programming on the educational
channel. The same is done for governmental entities that use the government channel to cablecast their
meetings and events. No proposals were brought before the Committee this year.
The AOC has removed the word “Capital” from the language of its Resolution to reflect the changes made
by TWC. The Village resolution probably should reflect these changes as well, so that we are not restricted
to acquiring only "Capital" equipment.
Please let me know if you need further information. The Village's resolution is due at the AOC no later than
June 30, 2015, and can be Emailed to me at <pmv4@cornell.edu>.
Attachments (2)
Cc. Access Oversight Committee
Joan Mangione, Village Clerk
Resolution
Access Oversight Committee
Monday, May 5, 2014
AOC Recommendations for FY 2015 Budget
WHEREAS, Section 15.12 of the Franchise Agreement between the City of Ithaca and Time Warner
Entertainment-Advance/Newhouse Partnership (TWC) of January 2003 requires the participating municipalities
(City of Ithaca, Town of Ithaca, Village of Cayuga Heights) to provide TWC with an annual budget for public,
educational and governmental access operations by June 30 of each calendar year, and
WHEREAS, the City of Ithaca's Ordinance #2003 -17, Par 18-4-G, requires the Access Oversight Committee
(AOC) to provide the participating municipalities with a recommended annual budget by May 31 of each
calendar year; now therefore be it
RESOLVED, that the AOC accepted the attached budget for Fiscal Year 2015 in the amount of $30,000.00
at their regular meeting of May 5, 2014, and
BE IT FURTHER RESOLVED, that the AOC forwards its recommendations for approval by the Common
Council of the City of Ithaca, the Town of Ithaca Board and the Village of Cayuga Heights Board of
Trustees, so that they may meet their obligation to provide TWC with an annual budget for public,
educational and governmental access operation, which budget is due June 30 of each calendar year.
Approved unanimously
Budget for Fiscal Year 2015
Budget $30,000.00
Description: The PEGASYS studio has a great deal of equipment that is 10 –17 years old, and will need
replacement as it fails. This might include studio cameras [$10,000 each], camera cabling [$2,000 each],
the studio special effects generator/video switcher [$30,000), the studio audio system ($5,000), and any
other equipment and associated items that the Access Oversight Committee deems necessary for the proper
functioning of the PEGASYS Studio.
TOTAL $30,000.00
B C D
PEG Fee Expenditures Balance
collection
(funds available for
PEG purchases)
Year *
2004 $22,768.04 $19,372.15 $3,395.89
2005 $20,144.93 $14,814.73 $5,330.20
2006 $19,616.00 $0.00 $19,616.00
2007 $18,807.00 $19,338.81 ($531.81)
2008 $18,347.25 $11,749.14 $6,598.11
2009 $17,509.95 $21,102.13 ($3,592.18)
2010 $16,593.60 $17,433.96 ($840.36)
2011 $15,088.35 $9,589.92 $5,498.43
2012 $14,032.50 $4,254.78 $9,777.72
2013 $13,977.69 $23,818.71 ($9,841.02)
2014 $12,000.00 $30,000.00 ($18,000.00)
2015 $12,000.00 $0.00 $12,000.00
Total $200,885.31 $171,474.33 $29,410.98
* PEG Fees = $.15/customer/month
italics = estimate
Column B/ 2014 & 2015 lines = estimated revenues
Column C/ 2013 & 2014 lines = approved but unexpended budgets