City of Oak Creek

Common Council Report

Meeting Date:  05-16-06

Item No.:        

Recommendation:  To approve the purchase of a license agreement through the American Society of Composers, Authors and Publishers (ASCAP). 

Background:  The City has received numerous letters from the American Society of Composers, Authors and Publishers stressing the obligation to purchase a license to play music composed, written, or published by those artists represented by ASCAP.   ASCAP represents over 3 million artists who receive royalties when their work is used.  “Using their work” includes the obvious performances such as music in the par, but also includes less obvious uses such as replaying radio music over the telephone hold system and internal intercom system. 

Our research supports the legal obligation to purchase a licensing agreement, but is confounded by inconsistent reaction from other municipalities who elect to ignore the solicitation.  That confusion aside, staff believes the agreement fee to be reasonable to cover all of our music functions as well as indirectly compensate the artists. 

Fiscal Impact:  ASCAP established government licensing agreement fee based on community population.  The City of Oak Creek falls within the category of 1-50,000, placing the 2006 license cost at $268.00.  The agreement with ASCAP limits future license fees to the preceding year with an increase based on the Consumer Price Index for All Urban Consumers (CPI-U) for an October – October reporting period.  This is an unbudgeted item for 2006.  It is recommended that the funds come from General Government – Miscellaneous (Account No. 40-595).

Prepared by: Patrick DeGrave City Administrator	Respectfully submitted, Patrick DeGrave City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk