REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Antonia Graham, Assistant to the City Manager
Subject:
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Approve and authorize the City of Huntington Beach to give a six (6) month prior written Notice of Intent to Terminate from the Public Cable Television Authority
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Statement of Issue:
At the December 17, 2018, Study Session staff presented a transition and exit plan for the City of Huntington Beach to withdraw from the Public Cable Television Authority (PCTA). At this Study Session, staff was directed to begin the exit process from PCTA. This Council Action is necessary to provide a six month prior written Notice of Intent to Terminate from PCTA pursuant to Section 4 of the Joint Powers Agreement for PCTA.
Financial Impact:
The City currently finances 67 percent of PCTA's annual operating budget and overall finances. Huntington Beach also comprises at least 67 percent of PCTA's fund balances and reserves based on similar historical contributions. Upon final withdrawal from the Public Cable Television Authority in approximately six months, the City will begin to collect 100 percent of the Public, Educational, and Governmental (PEG) funds paid by its subscribers to the telecommunications companies of approximately $605,000 annually. These funds will be deposited into a restricted fund which the City will oversee to fund cable channel operations and programming. In addition to restricted PEG funds, the City will also receive an additional $152,000 in unrestricted General Fund monies currently withheld by PCTA to fund its annual administrative budget. The City is also entitled to its fair share of PCTA's reserves currently estimated at $3.0 million based on its most recent financial statements.
Recommended Action:
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Authorize the City Manager to give a six (6) month prior written Notice of Intent to Terminate to the Public Cable T...
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