HomeMy WebLinkAbout2008-10-28 - AGENDA REPORTS - LOCAL PUBLIC TV MGMT (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT
Agenda Item: ID
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
October 28, 2008
LOCAL PUBLIC TELEVISION MANAGEMENT
Administrative Services
RECOMMENDED ACTION
City Council:
1. Reject'all proposals.
2. Appropriate funds in the amount of $116,000 from Public, Education, and Government Fund
Balance (330) to Account 12205-5201.002, and appropriate $25,000 from Council
Contingency Account 19300-5401.001 to the Communication Division's Professional
Services Account 11500-5161.002.
3. Direct the City Manager to proceed with efforts to oversee the management of the City's
Public Television Operation.
BACKGROUND
Due to changes in California law, effective January 2, 2009, Time Warner Cable will no longer
be legally obligated to provide production support for Channel 20, including the day-to-day
operation and funding of Public Television. On June 11, 2008, the City issued a Request for
Proposal (RFP) to solicit proposals from parties interested in assuming the daily operation and
management of public television production in Santa Clarita.
Through this RFP process, the City sought to award a three-year contract to operate and manage
all programming on the City's Public, Educational, and Governmental (PEG) Access channel,
known as Channel 20. As part of this process, City staff made it clear in the RFP document that
it reserved all rights to reject any or all proposals received.
Ve_4'LVk14Q_S L tJc- 4,0 �► �
On July 31, 2008, the City received two proposals from local entities that included Santa Clarita
Valley Television (SCVTV) and the Santa Clarita Public Television Corporation (SCPTC). A
panel comprised of seven members, including the City Manager, the Deputy City Manager, and a
cross section of City staff, were responsible for evaluating and ranking each proposal. A formal
evaluation of each proposal was completed independently by each member of the panel using
objective scoring criteria consistent with the scoring priorities outlined in the RFP. On
September 3, 2008, a panel comprised of internal staff and the City Manager conducted
interviews with representatives of each proposing party.
i
Staff's evaluation found both proposals to have strengths in several of the priority areas sought
by the City. The proposal submitted by SCVTV was strong on experience and fostering
community-based partnerships. However, staff found SCVTV to be limited in the area of
available financial resources, as evidenced by their request for City funding in the amount of
$278,000 with contingency and management-related fees that potentially increased the total
requested budget to approximately $350,000 for first-year costs.
SCVTV's proposal relied heavily upon potential grant opportunities to develop revenue sources
and indicated a belief that their operation could be profitable by the conclusion of year three.
Finally, their proposal indicated that anticipated City contributions to support year two and
beyond operational costs would be evaluated following the first year of the agreement.
SCPTC was also strong on experience and provided a proposal that indicated their ability to
assume 100% of all costs associated with the daily management and operation of Channel 20. In
staffs evaluation of SCPTC's proposal, there were concerns among the evaluation panel as to the
proposer's technical engineering abilities, as well as their ongoing ability to fund all operational
costs at a potential loss. Further consideration of SCPTC proposal became unnecessary on
September 22, 2008 when SCPTC provided formal notification of their intent to withdraw their
proposal.
As the City Council is aware, the City is beginning to feel at a local level the impacts associated
with the slowing national economy. As such, City staff does not believe it is appropriate to
recommend the City Council consider the appropriation of General Fund monies in an amount
that could exceed $300,000 on an annual basis to retain a Non -Profit Organization to manage and
operate Channel 20. Therefore, staff recommends the City Council reject all proposals.
As the City Council has expressed an interest in maintaining public television for the benefit of
our community, staff believes the continued operation of Channel 20 is warranted. City staff has
developed an alternative recommendation for the City Council's consideration.
Staff's recommendation is to bring the operation of Channel 20 in-house through the hiring of a
contractual position to manage the public access studio facility. This approach is financially
responsible given the current state of the economy and continues to make local television
available to the community.
In order to bring the public television operation in-house, the City Council will need to consider
and approve appropriation of funds to address equipment, facility, and staffing needs. Staff is
requesting appropriation of $116,000 in PEG Capital Grant Funds to support one-time studio
equipment needs ($100,000) and costs associated with the continuing lease of the studio facility
on 14th Street ($16,000) for the remainder of FY 2008/09. It is important to note that these
specific PEG Capital Grant Funds are restricted by law and can only be used to support
capital -related costs associated with public television. Additionally, staff is requesting
appropriation of $25,000 from the Council Contingency to provide resources to hire part-time
contractual staff to manage the public access facility.
ALTERNATIVE ACTIONS
1. Do not approve recommended action.
2. Appropriate funds in the amount of $350,000, and award contract to SCVTV to manage the
City's public television operation.
3. Other action as determined by the City Council.
FISCAL IMPACT
1. Appropriate funds in the amount of $116,000 from the Public, Education, and Government
Fund Balance (330) to Account 12205-5201.002.
2. Appropriate $25,000 from Council Contigency Account 19300-5401.001 to
Communication Division's Professional Services Account 11500-5161.002