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Home My WebLink AboutStudy Session #1 - PowerPoint communication entitled "PCTA EPCTA Exit and Transition Plan to "Surf City 3" City Council Meeting — December 17, 2018 History & Background --1----,-I"`V N—�� On April 9, 2018, Council Members Lyn Semeta and Patrick Brenden introduced a Council Member Item to: Direct the City Manager to obtain information from PCTA and other programming providers to assess the current resources available to the City for broadcast of public interest programming and conduct a review of best practices of local government programming in order to ensure that the City is utilizing current technology most efficiently and effectively. • Study Session on Alternative Methods and New Trends was held on July 11, 2018. Council Members Semeta and Brenden introduced a Council Member item on October 29, 2018, to discuss the potential withdrawal from PCTA. SUPPLEMENTAL COMMUNICATION MedN Date: - I ,;�, 47 —(>? History of PCTA • Almost 30 years ago on December 26, 1990, the Cities of Huntington Beach, Fountain Valley, Stanton, and Westminster entered into a Joint Powers Agreement to create the Public Cable Television Authority (PCTA). • Only JPA for cable channel operations in Orange County • Created to plan, develop, finance, acquire, construct, manage, maintain or operate any community antenna television system or cable television system. • PCTA is a public entity and is subject to all public meeting requirements. • This JPA was revised in 2004 and is currently under review for an update. IDIC ceNe toe, ision a^oM Governance PCTA is administered by an eight member Board of Directors — two from each member City. Each Director serves at the pleasure of their Appointing City Council. ® The Board has responsibility for the general management of the affairs, property, and business of PCTA. • Each Director has one vote — Huntington Beach is represented by a 25% vote, yet funds 67% of PCTA. • At the first meeting of each Fiscal Year, the Board elects a Chair, Vice Chair, Secretary, and Treasurer/Auditor franchise and PEG Fees PCTA collects and keeps 100% of Huntington Beach subscriber paid PEG fees. In 2017, PCTA collected $604,751 of Huntington Beach PEF fees. PCTA collects and remits to the City franchise fees from Frontier and Spectrum. In 2017, the City received $2.8 million but they withhold approximately $151,165 annually to fund their Administrative Budget. • The City funds 67.74% of PCTA operations. This is calculated based upon the amount of PEG and franchise fees collected by PCTA on behalf of the four cities from the video service providers. • Based on the most recent audited financial statements (October 31, 2018), PCTA has a fund balance of $3 million in a Local Agency Investment Fund (LAIF) account. Summary of 18/19 PCTA Budget (Administrative and PEG) mmA PCTA $232,174.00 $880,000.00 $1,112,174 100% Funded by HB $151,165.33 $604,750.51 $755,615.84 67% Funded by $81,008.67 $275,249 $356,257 33% Stanton, Westminster and Fountain Valley L"W". n PCTA films and broadcasts • City Council Meetings (live), Planning Commission Meetings (live); NEW — City Council promos • Annual 411 of July Parade • Selected Summer Concerts in the Park • Annual Miss Huntington Beach Scholarship Pageant • Annual Downtown Tree Lighting Selected meetings and events: other holiday shows, Town Hall meetings, dedications, ceremonies, etc. • Ongoing programming such as "Reflections of Former Mayors," "Young at Heart," "The O Scene," "Wow! That's in OC," "Surf City Highlights," and "Orange Slices." • During election years, candidate statements and election night coverage • Occasional documentaries such as "50 Years: Golden West College" and "HB Junior Lifeguards Program" • New programming, such as an upcoming Chamber of Commerce show for Huntington Beach • Covers events/council meetings/programming for Stanton, Westminster and Fountain Valley DIVCA requires that Channel 3 must only run "locally produced video programming" and that there must be on average 8 hours per day as measured on a quarterly basis. k@mpj&of "Newer" Programming • https://www.youtube.com/cityofriverside • Riverside — In Studio (Music Show — Original Programming) - https://www.youtube.com/watch?v=KlCV2UX11NY City of Mesa, Arizona — VLOG Real Mesa (Original Programming) - https://www.youtube.com/realmesa What are other Orange County cities doing? • PCTA is the only cable television JPA in Orange County Staff surveyed 30 Orange County cities and found that: --k- • 23 cities contract out their cable channel operations to a third party production company and utilize their PEG funding. • Seven cities have part time staff that run the cable channel and utilize their PEG funding. • These costs range from $75,000 per year (Seal Beach) to $224,000 (Mission Viejo) all paid for using PEG. • Production Costs (Staffing): • Santa Ana — Contract $65,000 per year • Fullerton — Utilizes a Contractor (In FY 2017/18 $39,712 was budgeted for 39 events/meetings) • Mission Viejo — Contract $111,877 per year comparison Chart -Per Capita Spending Costa Mesa $0.66 Fullerton $0.27 Irvine $0.47 Mission Viejo $1.53 Newport Beach $0.24 Tustin $0.61 PCTA $2.87 usiness Plan for perating" Surf City 3" Iroposed Staffing Model The cable operations would be overseen by the City Manager's Office managing contracts, staffing, and programming. Information Services would assist with technical needs (e.g. servers, license agreements, etc.) I ftgramming • Programming decisions would be made by the City Council's existing Communications Committee. • The established Committee would convene on a more regular basis to discuss the operations of Surf City 3 and to review the programming for the channel. • Shows would focus solely on Huntington Beach — this is not the case with PCTA programming. • DIVCA — "Locally produced video programming" means programming produced or provided by any local resident, the local entity, or local public or private agency that provides services to the residents. 10rogramming Ideas Sample New Shows • "HBeats" — Music show featuring local bands, singers in studio • "In Depth" — Meet the Mayor/City Council Member • "Game of the Week" — big matches between cross town high school rivals • "Senior Strength" —exercise shows from the Senior Center, people features, beach workouts • Golden West College Programming • Arts & Theater — Covering high school performances, concerts, library events • Kid Shows — Arts & crafts, cooking, music • Library Showcase — feature fun activities like the "Fancy Nancy Tea Party" and Storytime • Nature Shows — reels of nature/beauty. Sunsets, sunrise, surfers riding the waves, Bolsa Chica, Central Park (similar to CBS Sunday Moring) • Cross Programing with other cities — Newport Beach, Costa Mesa, others share local programming Proposed 1st Year Budget Mal a I F line Item ProposedAmount Personnel (Contract Employees) $50,000 Capital Expenses $50,000 Video Production $100,000 Large Event Taping $50,000 Software, Licensing, technical support, $175,000 etc. (Information Services) Total Proposed First Year Budget $425,000* PCTA currently takes in on average $755,000 annually in HB Ratepayer Funds. Their total PEG and Administrative budget is $1.1 million �JVhat can PEG be spent on? PEG funds are restricted and can only be used on: Cable Access Programming • Video Production and Editing • Fiber/Broadband — Connecting City facilities • Streaming Services • Capital Expenditures • Information Technology — Website and IT Servic • Software License Costs r Revenue/Partnership Opportunities Provide six month notice to PCTA to begin transition. Continue partnership with PCTA