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HomeMy WebLinkAbout2016-09-27 - AGENDA REPORTS - PEG TELEVISION MGMT (2)O Agenda Item: 4 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR -41 CITY MANAGER APPROVAL: 11 _3 DATE: September 27, 2016 SUBJECT: PUBLIC ACCESS, EDUCATION AND GOVERNMENT (PEG) TELEVISION MANAGEMENT DEPARTMENT: City Manager's Office PRESENTER: Nick Robles RECOMMENDED ACTION City Council: Authorize funding for a one-year Public Television Management Services Agreement with Santa Clarita Valley Television (SCVTV) for the ongoing management and programming of Time Warner (channel 20) and AT&T (channel 99) for playback, programming, and production studio operations from October 1, 2016, through September 30, 2017, and authorize the City Manager to approve up to two (2) one-year renewal options in the amount not to exceed $190,000 for each year. 2. Appropriate funds in the amount of $180,000 from the Public Access, Education and Government (PEG) funds to Account 12205.5401.008 ($100,000) and Account 12205.5201.002 ($80,000). 3. Appropriate funds in the amount of $40,000 from the General Fund to Public Television Account 11501.5401.008. 4. Authorize the City Manager or designee to execute all documents subject to City Attorney approval. BACKGROUND Due to changes in California law, effective January 2, 2009, cable companies are no longer legally obligated to provide production support for Santa Clarita's Public Access, Education and Government (PEG) channels, which include Time Warner channel 20 and AT&T channel 99. With the passage of the Digital Infrastructure and Video Competition Act (DIVCA), cities gained access to PEG funds to support public access television. PEG funds are restricted funds Page 1 Packet Pg. 22 O that can only be used to support capital -related costs associated with the support of public television. In 2009, following more than a year of work, and nearly one dozen meetings with interested stakeholders, the City Council took formal action to approve the Santa Clarita Public Television Authority (SCPTA). The SCPTA encompasses multiple local public agencies in Santa Clarita which collectively oversee operations associated with Public Television in the Santa Clarita Valley. The SCPTA was created in a manner which designates the Chief Administrative Officer of each participating agency to serve as that agency's representative to the SCPTA. This permits each member agency to leverage their particular area of expertise to determine how best to manage local public television resources. In 2008, the City of Santa Clarita (City) circulated a Request For Proposal (RFP) for the purpose of soliciting parties interested in managing day-to-day operations of public television in Santa Clarita. The City received two proposals from interested parties on July 31, 2008. During negotiations, one of the interested parties withdrew its proposal. Ultimately, on December 9, 2008, the City Council awarded an agreement for the day-to-day operations of public television to Santa Clarita Valley Television (SCVTV). SCVTV is a 501(c)(3) nonprofit that provides television, webcasting, podcasting and new media services for the local public, nonprofit agencies, and government institutions. SCVTV provides 24/7 community programming to nearly every Santa Clarita Valley household via Time Warner Cable (channel 20), AT&T (channel 99), SCVTV.com (live channel stream and video on demand), and various internet and social media websites such as YouTube, Vimeo and Facebook. SCVTV operates the City's PEG channels under contract with the SCPTA, whose members as of September 7, 2016, include the City, the Santa Clarita Community College District, the William S. Hart Union High School District, the Castaic Union School District, the Newhall School District, the Saugus Union School District, and the Sulphur Springs Union School District. In November 2015, the SCPTA voted to create and circulate an RFP for the management of public television in Santa Clarita. In January and February of 2016, a subcommittee of the SCPTA created the RFP, seeking an entity that would manage day-to-day operations and produce programming. In March and April of 2016, the RFP was published and circulated. During the circulation, the RFP was viewed by 25 interested parties. A total of three interested parties participated in the RFP bidders' conference; however, only one interested party, SCVTV, ultimately submitted a completed proposal. In response to the RFP, SCVTV indicated their annual cost to manage Santa Clarita Public Television ranged from $299,525 to $363,604 depending upon the type of programing sought by the SCPTA. In April 2016, the subcommittee of the SCPTA began negotiations with SCVTV with the intent of developing a long-term agreement. As negotiations on a long-term agreement continued beyond June 30, 2016, the SCPTA Board took action to extend SCVTV's operating agreement Page 2 Packet Pg. 23 O for an additional three months through October 1, 2016. The three-month agreement was intended to give SCPTA sufficient time to finalize a long-term agreement with SCVTV. On September 7, 2016, the SCPTA Board voted in favor of recommending a one-year public television management services agreement with SCVTV, subject to the appropriation of necessary funds by the Santa Clarita City Council. This agreement recommends an increase to the current $50,000 in annual compensation provided to SCVTV to oversee the management of public television operations. In the original agreement, $50,000 was sufficient for SCVTV; it had a business model that would grow public television by internally generated revenues, grant funds, sponsorships and financial donations from the officers of SCVTV. However, after seven years, this model for public television is unsustainable and the need to adjust funding was revealed during negotiations. This new agreement would increase the amount paid to SCVTV to $190,000 by using City General Fund money ($90,000) and PEG funds ($100,000). During the Fiscal Year 2016-17 annual budget process, the City Council appropriated $50,000 from the General Fund in support of public television. The terms of this proposed agreement would increase the General Fund contribution this fiscal year by $40,000, bringing the total General Fund contribution to $90,000. Further, this proposed agreement would authorize the appropriation of an additional $100,000 in PEG Funds to support the purchase of locally produced original programming. Under the proposed agreement, SCVTV would be required to manage the City's public television studio a minimum of 35 hours per week inclusive of playback, programming, and production studio operations. Further, SCVTV will be responsible for creating and airing original programming throughout the year which benefits the community, including: • Arts and Culture Series - Production of at least five (5) 24-minute shows which focus on the arts within Santa Clarita (production cost of $28,350, being purchased with PEG funds); • Concert Series Program - Production of at least eight (8) two-hour shows that focus on musical performances in the Newhall Arts District (production cost of $40,490, being purchased with PEG funds); • Local History Program - Production of at least four (4) 24-minute shows focusing on the historical aspects of Santa Clarita (production cost of $18,200, being purchased with PEG funds); • SCV in the Movies - Production of at least six (6) two-hour in-depth shows featuring and discussing films with a Santa Clarita connection (production cost of $12,960, being purchased with PEG funds). The cost for each program was determined by reviewing the average cost of similar programs produced by comparable production companies. The estimated value for each program series also takes into account what it would normally cost the City to hire an outside vendor to produce a similar type of program. In addition, the City is seeking to procure a new high -definition (HD) portable flight pack which is a portable piece of equipment that can be utilized by City staff and the contractor of public Page 3 Packet Pg. 24 O television, SCVTV, for various video productions. The flight pack currently in use does not have the ability to insert graphics, record and playback in HD video or record with modern cameras. Many of these limitations make the current flight pack virtually unusable with the modern camera and computer technology. The new HD flight pack will have many benefits for the City and SCVTV, including HD recording of the annual Fourth of July parade, ribbon cuttings that can be broadcasted on channels 20 and 99, and support filming of the new concert series program. The HD flight pack would be owned by the City and will create broadcasting redundancy during emergency situations or for City Council meetings. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT During the Fiscal Year 2016-17 annual budget process, the City Council appropriated $50,000 from the General Fund in support of hiring a contractor to manage day-to-day operations of public television and in addition, $34,000 for operational and maintenance (O&M) costs associated with running a public television studio. These O&M costs are for electricity, water, pest control, janitorial services, etc. The proposed action would increase the General Fund contribution to public television this fiscal year by $40,000, bringing the total General Fund contribution to $124,000. Also, in the Fiscal Year 2016-17 budget process, the City Council appropriated $105,000 from the Public Access, Education and Government (PEG) funds to cover capital -related costs associated with running public television in Santa Clarita. These capital costs cover leasing a studio space, production -related equipment, and technology. This proposed action would authorize the appropriation of an additional $100,000 in PEG funds for the support of public television, bringing the total PEG fund contribution to $205,000. In total, both PEG and General Fund contributions for public television in Santa Clarita would be $329,000. Lastly, this action would authorize up to $80,000 for an HD flight pack using PEG funds. Page 4 Packet Pg. 25