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Home My WebLink AboutCABLE TELEVISION Financial Statement/Reports/Budgets ( 310 (0 Y rC:a1A Pubfir Table 0lellcututun Aut4art-tu ' PCTA - A JOINT POWERS AGENCY 18301 GOTHARD STREET I HUNTINGTON BEACH, CALIFORNIA 92648 I(714)841.2266 DON MACALLISTER HOWARD G.STEPHENS Councilman Huntington Beach Executive Director Chairman ELDEN GILLESPIE Councilman Westminster Vice Chairman BEN NIELSEN Mayor Fountain Valley Director JIM HAYES Mayor Pro Tern Stanton Director SEPTEMBER 27, 1185 DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS 1910 NORTH BUSH STREET SANA ANA, CALIFORNIA 92706-2894 ATTENTION: DON CALLAHAN DEAR DON: SECTION 4 OF THE CONDITIONS OF OPERATION, STIPULATES THAT THE FRANCHISE FEE IS PAYABLE QUARTERLY IN ADVANCE. FOR YOUR INFORMATION, THIS IS NO LONGER CORRECT AND COMMENCING JANUARY 1, 1984, THE FEES ARE TO BE PAID SEMI—ANNUALLY FOR THE PRECEDING SIX MONTHS. FOR YOUR INFORMATION, ATTACHED IS A COPY OF THE REVISED AGREEMENT. I DO NOT BELIEVE IT IS NECESSARY TO REVISE THE CURRENT AUDIT REPORT TO REFLECT THIS CHANGE. VERY TRULY YOURS, t C'�'c l_�! HOWARD G. ST HENS EXECUTIVE DIRECTOR PUBLIC CABLE TELEVISION AUTHORITY HGS:DR ATTACHMENT quarter thereafter in 1983 , Grantee shall pay to PCTA five percent (5%) of Grantee's estimated Gross Receipts for that quarter. Payments shall be made in April , July' and October, 1983 for the following quarter and shall be adjusted to include amounts due, if, any, for actual Gross Receipts for the preceding quarter. (b) Commencing on January 1 , 1984 , Grantee shall pay• five percent (5%) of the actual Gross Receipts. Grantee shall make such payments semi-annually in July and January of each year for the. preceding six (6) months, provided, however, that the payment due in July, 1984 shall be adjusted to include amounts due, if any, for actual Gross • Receipts for the period of October through December , 1983 . (c ) In any period described in (a) or (b) above in which five percent (5%) of the Gross Receipts . is less than the pro rata• share of the minimum fee of . Eighty-five Thousand • s Dollars ($85 ,000.00) then the pro rata share of such minimum fee shall be paid by Grantee. (d) The payments due under (a) , (b) or (c) above are due and payable twenty (20) days after the beginning of the month specified for payment. If such payments are not paid as provided for herein, such failure to pay shall constitute a breach of the Franchises. Such breach will cause damage to PCTA which would be extremely difficult and impracticable to ascertain. Therefore, Grantee agrees to pay PCTA the sum of Three Hundred Dollars ($300.00) per 10 • ' PUBLIC CABLE TELEVISION AUTHORITY FINANCIAL STATEMENTS WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS JUNE 30, 1985 DIEHL, EVANS AND COMPANY A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS CERTIFIED PUBLIC ACCOUNTANTS PUBLIC CABLE TELEVISION AUTHORITY TABLE OF CONTENTS June 30, 1985 i Page Number Accountants' Report 1 Balance Sheet 2 Statement of Revenues, Expenditures and Changes in Fund Balance 3 Notes to Financial Statements 4 — 5 DIEHL, EVANS AND COMPANY A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS "WIN G. PETERS, C.P.A. CERTIFIED PUBLIC ACCOUNTANTS OTHER OFFICES AT. *DONALD H. PETERSON, C.P.A. 'DONALD E. CALLAHAN, C.P.A: 1910 NORTH BUSH STREET 2965 ROOSEVELT STREET ® 'L. PETER SCHERER, C.PA. SANTA ANA, CALIFORNIA 92706-2694 CARLSBAD, CALIFORNIA 92008-2389 'RODNEY K. MCDANIEL, C.P.A. (714) 542-4453 {SIS) 729-2343 'RALPH H.WEINTRAUB, C.P.A. 120 WEST WOODWARD AVENUE *PHILIP H. HOLTKAMP, C.P.A. ESCONDIDO, CALIFORNIA 92025-9990 *THOMAS M. PERLOWSKI, C.P.A. EDWARD GRODSKY, C.P.A. (619) 741-3141 ONE CIVIC PLAZA, SUITE 265 ELLIS C. DIEHL, C.P.A.(RETIRED) NEWPORT BEACH, CALIFORNIA 92660 ® BRYN S. EVANS, C.P.A.(RETIRED) July 31 , 1985 {714) 644-6156 'A PROFESSIONAL CORPORATION ACCOUNTANTS' REPORT Board of Directors Public Cable Television Authority Westminister, California We have examined the balance sheet of the Public Cable Television Authority as of June 30, 1985, and the related statement of revenues, expenditures and changes in fund balance — General Fund for the year then ended . 0u.r examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. ® In our opinion, the financial statements referred to above present fairly the .financial position of the Public Cable Television Authority as of June 30, 1985, and the results of its operations and the changes in its fund balance for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. PUBLIC CABLE TELEVISION AUTHORITY BALANCE SHEET As of June 30, 1985 Account Governmental Group Fund Type General Totals General Fixed Memorandum ASSETS Fund Assets Only Cash on hand and in banks $ 26,896 $ — $ 26,896 Accounts receivables 374,718 — 374,718 Office furniture and equipment, at cost (Note 2) — 9,978 9,978 TOTAL ASSETS $ 401 ,614 $ 9,978 $ 411 ,592 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 795 $ — $ 795 TOTAL LIABILITIES 795 — 795 FUND EQUITY: Investment in general fixed assets — 9,978 9,978 Fund balance (Note 4) 400,819 — 400,819 TOTAL FUND EQUITY 400,819 9,978 410,797 TOTAL LIABILITIES AND FUND EQUITY $ 401 ,614 $ 9,978 $ 411 ,592 See accompanying accountants' report and notes to financial statements. —2— PUBLIC CABLE TELEVISION AUTHORITY GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June, 30, 1985 ® REVENUES: Franchise fees (Note 4) $ 745,486 Interest income 3,996 TOTAL REVENUES 749,482 ® EXPENDITURES: Legal and accounting services $ 7,674 Salaries and wages 10,469 Office rent 1 ,185 Office supplies 137 Telephone 379 Directors fees 2,500 Seminars 779 Printing and duplicating 283 Insurance 1 ,397 Postage 130 Dues and subscriptions 1 ,845 ® Travel 1,450 Miscellaneous 334 Repairs 85 TOTAL EXPENDITURES 28,647 ® EXCESS OF REVENUES OVER EXPENDITURES 720,835 DISTRIBUTION TO MEMBERS (NOTE 4) (370;901 ) FUND BALANCE AT JULY 1, 1984 50,885 FUND BALANCE AT JUNE 30, 1985 $ 400,819 See accompanying accountants' report and notes to financial statements. —3— PUBLIC CABLE TELEVISION AUTHORITY NOTES TO FINANCIAL STATEMENTS June 30, 1985 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. The modified accrual basis of accounting is followed. Revenues are recorded when measurable and available. Expenditures are recorded at the time liabilities are incurred, except that prepaid expenses are not recorded. b. The total column on the balance sheet is captioned "Memorandum Only" to indicate that it is presented only to facilitate financial analysis. Data in this column does not represent consolidated financial information. 2. ORGANIZATION AND DESCRIPTION OF FUNDS: The Public Cable Television Authority (the "Authority") was created in 1971 pursuant to a joint powers agreement between the cities of Fountain Valley, Westminster and Huntington Beach. In 1981 the City of Stanton was admitted as a member of the Authority. The Authority was created for the purposes of developing a Community Antenna Television (CATV) System within these cities. The accounts of the Authority are organized on the basis of funds and account groups, as follows: General Fund - The General Fund is used to account for all general revenues and expenditures of the Authority. General Fixed Asset Account Group - Fixed assets purchased for the Authority are recorded as expenditures in the General Fund at the time of purchase and then are recorded at cost in the General Fixed Asset Account Group. 3. FRANCHISE AGREEMENT: In August 1976 , the Authority granted a franchise to Dickinson Communications, Ltd. On October 2, 1979 the franchise was assigned to Dickinson Pacific Cablesystems (Grantee) , a partnership created in California, composed of Dickinson Communications, Ltd. and California Cablesystems, Inc. , a California Corporation. The franchise was granted for the construction and operation of a Community Antenna Television (CATV) System within the cities of Stanton, Fountain Valley, Westminster and Huntington Beach, financed entirely by the grantee by use of its own funds or other private capital. The original term of the franchise was for a period of 15 years. In 1984 the Board approved and the member cities ratified a five year extension of the term to the year 1999. Upon expiration of the term of the franchise , the City of Stanton , Huntington Beach, Westminster and Fountain Valley, or their nominees, shall each have an option to purchase the CATV system at the lesser of (i) total See accompanying accountants' report. -4- PUBLIC CABLE TELEVISION AUTHORITY NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1985 3. FRANCHISE AGREEMENT (CONTINUED): historical cost, less depreciation computed on a straight-line basis taking into account the remaining useful life of the system, (ii) the replacement cost new, less depreciation, or ( iii) fair market value based upon comparable sales of similar systems. The price shall be paid at the time the option is exercised. The above cities may, alternatively acquire the system by extending the franchise of grantee to operate the system ,for an additional 5 years, at the termination of which grantee shall convey title in the system, together with all underlying real property, free and clear of any debts or encumbrances to the Cities or their nominees. 4. FRANCHISE FEE: ® The operations of the Authority are financed entirely from franchise fees paid by the grantee. The franchise agreement provides that the grantee shall pay to the Authority the greater of 5% from grantee' s gross revenues per year from ® cable television operations within the franchised cities or $85,000 per year, payable quarterly, in advance. The 5% franchise fee is to be distributed to participating cities in the following manner: 1. 60% of the fee is distributed to each city based upon the ratio of sales per city to total sales of the grantee. 2. 40% of the fee is to be held in reserve for actual and anticipated operating expenses of the Authority. The balance exceeding requirements for operating expenses will be distributed to each city based upon the ratio of sales per city to total sales of the grantee. The Authority has chosen to retain only enough of fees collected to cover its operating budget. It will therefore distribute to members most of the revenue collected. During the current year the Authority made distributions to its participating members amounting to $370,901 . Each member' s share was as follows: Huntington Beach $ 216,548 Fountain Valley 71 , 173 Westminster 66,406 Stanton 16,774 Total $ .370,901 See accompanying accountants' report. -5- �Lt t, s PUBLIC CABLE TELEVISION AUTHORITY 10200 SLATER AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING DATE: AUGUST 8 , 1990 TIME: 7 : 30 AM --------------------------------------------- -------------------- IN ACCORDANCE WITH THE REQUIREMENTS OF CALIFORNIA GOVERNMENT CODE SECTION 54954 . 2 , THIS AGENDA IS POSTED NOT LESS THAN 72 HOURS PRIOR TO THE MEETING DATE AND TIME ABOVE . ALL WRITTEN MATERIALS RELATING TO EACH AGENDA ITEM ARE AVAILABLE FOR PUBLIC INSPECTION IN THE OFFICE OF THE CITY CLERK OF EACH MEMBER CITY OF PCTA. IN THE EVENT ANY MATTER NOT LISTED ON THIS AGENDA IS PROPOSED TO BE SUBMITTED TO THE BOARD FOR DISCUSSION AND/OR ACTION, IT WILL BE DONE IN COMPLIANCE WITH SECT. 54954 . 2 , OR AS SET FORTH ON A SUPPLEMENTAL AGENDA POSTED NOT LESS THAN 72 HOURS PRIOR TO THE MEETING. ---------------------------------------------------------------- I . Call to Order/Pledge of Allegiance and Invocation 2 . Roll Call 3 . Approval of Minutes of the Regular Meeting of June 13, 1990 as amended . (See Back up Item #3) 4 . All persons wishing to address the Board on specific items on matters of general interest should do so at this time. As determined by the Chairman. speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes . 5 . Approval of Expenditures A. Register of Demands , Number 3122 through 3143 ( See Item 5A) B. Receive and File Treasurers Report - June and July 1990 (See Back up Item #5B) 6 . Reports A. Report of Chairman B. Report of Board Members C . Report of Executive Directors D. Report of Cablesystems ti o r D -2_ 7 . Unfinished Business A. Report on Telemetering B. Update on Installation at Goldenwest College C . Status Report on Updated Franchise Documents D. Report on Revision of the Joint Powers Agreement E . Additional Letter Pending Federal Cable Legislation (See Back up Item V E) 8 . New Business A. Report by General Telephone Company of their Position on Possible Entry Into Cable Television . 9 . CLOSED SESSION DURING THE COURSE OF CONDUCTING THE BUSINESS SET FORTH IN THIS AGENDA AT A REGULAR MEETING OF THE BOARD, THE CHAIRMAN MAY CONVENE THE BOARD IN A CLOSED SESSION TO CONSIDER MATTERS PENDING OR THREATENED LITIGATION OR PERSONNEL MATTERS, PURSUANT TO GOVERNMENT CODE SECTION 54956 . 9 OR 54957 . 6 . REPORTS RELATING TO (A) PURCHASE AND SALE OF REAL PROPERTY: ( B) MATTERS OF THREATENED OR PENDING LITIGATION OR (C) EMPLOYEE COMPENSATION; AND ( D) WRITTEN MATERIAL EXEMPT FROM PUBLIC RECORDS ACT, MAY BE REVIEWED BY THE BOARD DURING THEIR PERMITTED CLOSED SESSION AND ARE NOT AVAILABLE FOR PUBLIC INSPECTION. AT SUCH TIMES AS FINAL ACTIONS ARE TAKEN BY THE BOARD ON ANY OF THESE SUBJECTS, THE MINUTES WILL REFLECT ALL REQUIRED DISCLOSURES OR INFORMATION. A. Convened in CLOSED SESSION, if necessary. B. Reconvene in REGULAR SESSION. C . Consideration or action, if any, on matters considered in CLOSED SESSION. 10 . ADJOURNMENT TO OCTOBER 10, 1990, 7 : 30 AM AT THE FOUNTAIN VALLEY COMMUNITY CENTER. PCTA.AGJ Aut4or-tV CTA Jjuhl c able 0 1 t PCTA — A JOINT POWERS AGENCY (714)968-2024 INVOTCE _ ` � r Section S—D of the conditions of operations, Part I reads as follow=s»:- �a The payments due under a, b, or c are due and payable twenty daysF"efter the beginning of the mon':h specified for payment. If such payments are not paid as provided for herein, such failure to pay shall constitute a breach of the franchises. Such breach will cause damage to I'CTA which would be extremely difficult and impracticable to ascertain. Therefor Grantee agrees to pay PCTA the sum of Three hundred dollars per calendar day until such breach is cured. Payment due July 20, 1990 Payment received July 21 , 1990 Due PCTA $300.00 Please remit. Howard G. Stephens Executive Director II: ll-(UuJ1.J : RZ-r-t 1LM J:�:SV1l,..;.. bl rb-,4j1,11 The number shown is the numberof seconds to answer by a live person_ after machine transfer to repair -dept..____. DATE TINE MIONDAY TUESDAY 1•;ED'-`r-'SDA" T: URSDAY _ =I.DAY-_ SATURDAY^_ CO!" ENT,S fo " - f i - ` 00 l � t � � � ✓`�'�-�./�" h� 'c-1�� ram{ l', 17 �✓4( 1 .�. tiL 1 � I f -� --- t-- - - -------_i ----- ----- - --- -- i UL PCTA Public Table 0 leu ii an Aut4art j PCTA — A JOINT POWERS AGENCY (714)968-2024 INVOICE 4-D < I0 Section 5-D of the conditions of operations Part I reads as follovv't: The payments due under a, b, or c are due and payable twenty days -aft-,er the beginning of the month specified for payment. If such paymeyxbs are not paid as provided for herein, such failure to pay shall constitute a breach of the franchises. Such breach will cause damage to PCTA which would be extremely difficult and impracticable to ascertain. Therefore Grantee agrees to pay PCTA the sum of Three hundred dollars per calendar day until such breach is cured. Payment due July 20, 1990 Payment received July 21 , 1990 Due PCTA 1300.00 Please remit. Howard G. Stephens Executive Director n=,uucz,1 e A I K �)-' tviL-'� 898-°211 The number shown is the number of seconds to answer by a live person after machine transfer -to repa-ir —.__-._--DATE - TINE ^;CI�'DAY TUESDAY i'cD"ESD=." TiLTRSD?.Y ?IDAY SATUR" Y CC'';A:rt•.'TS V __ f0 --- - 1 -- -- ---- -- - -- -- ---- - ----- -- -- - ---- - - j f IAiR {/ t � I - 1 - - - _ - -_- - 7-- PUBLIC CABLE TELEVISION AUTHORITY REGISTER OF DEMANDS June 30 , 1990 DATE CHK NO PAYEE AMOUNT EXPLANATION 6/5 3058 Laurann Cook $ (50 . 00) Lost in mail 3122 Laurann Cook 50 . 00 Replacement #3058 6/22 3123 General Telephone 29 .04 Telephone 3124 Paragon Cable 560.00 Subscriptions 3125 Rourke & Woodruff 195. 25 Legal services 3009 Rourke & Woodruff (190 . 51) Lost in mail 3083 Martha Weishaupt ( 50 . 00) Lost in mail 6/30 3126 Laurann Cook 50 . 00 Bd mtg 6/13 3127 Martha Weishaupt 100 . 00 to to If and replacement #3083 3128 Jim Silva 50. 00 Bd mtg 6/13 3129 Joy Neugebauer 50 . 00 ITif IT 3130 Lyn Gillespie 50. 00 If " " 3131 Howard G Stephens 950 . 00 Salary 3132 Howard G Stephens 140 . 53 Mileage,postage , Bus mtg, medical 3133 Leona G Evans 153 .00 Acctg/June , postage 3134 Diana Rockwell 178 . 30 Clerical , mileage 3135 City of Fountain Valley 94 . 50 Duplicating $ 2 , 360 . 11 v '� PUBLIC CABLE TELEVISION AUTHORITY TREASURER'S REPORT June 30 , 1990 1989-1990 12 mos . Budget Budget Actual** Contract-Executive Director $ 11 , 400 . 00 $ 11, 400 . 00 $ 11 , 400 . 00 Secretary 3 , 000 . 00 3 ,000 . 00 2 , 144 . 45 Duplicating & Printing 600 . 00 600 . 00 193 . 39 Postage 300 . 00 300. 00 151. 25 Office Supplies 250 . 00 250 . 00 247 . 26 Office Rental 1 , 200 . 00 1 , 200. 00 1 , 200 .00 Director' s Fees 2 , 400 . 00 2 , 400 . 00 2 , 050 . 00 Legal Services 6 , 000 . 00 6 , 000 . 00 4 , 216 . 06 Director, Key r Ers:i- Sub Y 2eS 3 , Telephone 480. 00 480. 00 389 . 27 Subscriptions , Memberships 300 . 00 300 .00 273. 00 Mileage 450 . 00 450 . 00 295. 97 Seminars , Conventions 1 , 000 . 00 1 ,000. 00 565 . 00 Seminars-travel 1 , 000 . 00 1, 000 . 00 463 . 48 Insurance .1 , 210 . 00 1 , 210 . 00 1 , 373 . 41 Accounting 3 ,027 . 00 3 , 027. 00 3 , 027 . 00 Business Expenses 600 . 00 600 . 00 211 . 20 Capital Expenditures 500 . 00 500 . 00 Office Equipment M & R 250 . 00 250 . 00 104 . 95 Director ' s Fidelitv Bond 170 . 00 170 . 00 Technical Services 10 , 000 . 00 10 ,000 . 00 1 , 000 . 00 Medical Expense 500 . 00 500 . 00 298. 78 $ 48 , 417 . 00 $ 48 ,417 . 00 $ 32 , 524 . 87 ** Exclusive of year end accruals CASH 6/l/90 CASH 6/30/90 IMM $ 31 ,051. 35 IMM $ 28211 . 80 CHECKING 5 ,101. 98 CHECKING 5741. 87 $ 33953 . 67 INTEREST EARNED 160 . 45 CHECKS DISBURSED (2 , 360 . 11) CASH AVAILABLE $ 33 ,953 . 67 P P lacTahtedeu-sion -tu C A PCTA — A JOINT POWERS AGENCY 9220 EL MORADO/FOUNTAIN VALLEY,CALIFORNIA 92708/(714)968-2024 June 27, 1990 Honorable Alan Cranston United States Senator 5656 W. Century Blvd. , Room 515 Los Angeles, CA 90045 Dear Senator Cranston: You have previously received a copy of our resolution #1989-2 urging the restoration of local regulatory authority over cable television systems. You have also received a letter from PCTA dated April 30, 1990 outlining our concerns with the "staff draft" which was being considered as a substitute for S-1880. Both of these documents supported the right of a telephone company to offer cable services in their local telephone service area. This support was based on the assumption and the assurance by the telephone companies that they would be subject to the same rules and regulations as the cable companies. We have nov`received information that Kent B. Foster, president of GTE telephone operations, has stated that they would not need franchises and would not be subject to a franchise fee. The PCTA is a strong supporter of the need for competition, however, all operators must be required to operate under the same set of rules and regulations. We are urging your support in making sure that any bill passed includes this requirement. Sincerely, Laurann Cook Chairman LC:HS:1 s l� RECEIvEr, PARAGON CABLE REPORT TO PUBLIC CABLE TELEVISION AUTHORITY August 8, 1990 MARKETING Basic subscribers in the PCTA area at the end of June totaled 66,471, up 375 from the last PCTA meeting. The breakdown is as follows: Customers Homes Passed Penetration Huntington Beach 41,688 70,368 59.2% Fountain Valley 9,780 18,354 53.2% Westminster 10,327 20,736 49.8% Stanton 3,980 9,734 40.8% Midway City- 696 1,412 49. 2% The total basic subscriber penetration is 55.1% and the homes passed number is 120,604. The Business Office answered 77% of its calls within 87. 2 seconds with a total of 1,325 sales. The Repair Office answered 73 .8% of its calls within 191.2 seconds. On yet another front, Santry Elmer, newly appointed Customer Service Manager,,is examining customer service operations to upgrade performance through additional training and appropriate staffing and scheduling. He is meeting with a specialist in cable customer service telephone systems, with a January 1, 1991, target date for a new installation. TECHNICAL Through the good offices of PCTA Board Member, Councilwoman Joy Neugebauer, Paragon may be nearing agreement with a long-time mobile home target in Westminster containing 600 units. Attempts five years ago to construct the park brought negative results, but current discussions are moving along well. Efforts are continuing to upgrade the Paragon signal transmission system to eliminate the necessity for service calls from customers. In addition, "how to do it" messages are being taped to instruct customers on easy ways to handle audio buzzing, non-functioning VCRs, and other minor problems. The expectation is that this will prevent many calls to the service office normally solved completely by telephone. Finally, new equipment has been purchased to eliminate annoying fluctuation in sound levels on many channels. Paragon Cable Report to PCTA August 8, 1990 Page Two There are presently 638 new development units in various phases of construction within the system area, which is in addition to those listed below. The following is a status report on dwellings within the system: 1) Single Family Units - All homes serviceable: 70,003 2) Multiple Units S not including Mobile Home Parks) 46,233 units are serviceable 149 units are in various stages of construction 2,271 units are uncontracted 3 ) Mobile Homes Parks 4,352 units are serviceable 0 units are in various stages of construction 3 ,816 units are uncontracted These numbers have been adjusted based on a review of all pertinent files. PROGRAMMING PRODUCTION "Westminster City Council Coverage" , °°VNTV°B and "Cable Connection1° continue as regularly scheduled productions. The mobile van and Video Engineer were provided to the City of Huntington Beach for coverage of the 4th of July Parade as in past years. Additional production support was also provided to HBTV 3 for the Grand Opening of the Surf Museum. Two Public Service Announcements were created and aired for both the El Capitan District Boy Scouts (Fund Drive) and the Stanton Recreation Department (County Fair) . And a unique Fitness program involving St. Polycarp Grade School in Stanton and the Marine Corps was covered and is expected to air in August. PUBLIC ACCESS No Video Production Workshop has been conducted since our last report. At that time the next workshop was slated for Saturday, August 4. Dates of workshops are determined by the volume of calls. Summertime usually brings about a reluctance to sit in a workshop for six hours on a Saturday! However, summer also usually brings an increase in productions. The edited productions resulting from this activity are targeted to be finished during September and October. DPC MOBILE HOME PARKS WESTMINSTER SERVICEABLE Caravan Trailer Lodge 13782 Hoover 61 units 48% Pronto Verde MHP 14081 Magnolia 181 units 40% Summerset Mobile Estates 9200 Westminster 116 units 53% Westminster MHP 14272 Hoover 150 units 40% Kensington Gardens 9800 Bolsa 123 units 51% Villa Magnolia 15300 Magnolia 116 units 42% TOTAL SERVICEABLE 6 Parks 747 Units TOTAL ACTIVE 334 Units PENETRATION 45% UNCONTRACTED American Mobile Estates 14362 Bushard 145 units Bolsa Verde Estates 9350 Bolsa 85 units Del Prado Estates 8200 Bolsa 189 units Driftwood-MHP 15621 Beach Blvd. 170 units Green Lantern-MHP - 14352 Beach Blvd. 132 units Los Alisos MHP 5772 Garden Grove Blvd. 665 units Los Roblas MHP 13100 Melanie 103 units Mission Del Amo MHE 9702 Bolsa 217 units Rancho Del Sol MHP 9851 Bolsa 196 units Regency Villa 1S111 Bushard 127 units Royal Garden Estates 10200 Bolsa 152 units West Grove Mobile Estates 13202 Hoover 97 units TOTAL UNCONTRACTED 12 Parks 2278 units HUNTINGTON BEACH SERVICEABLE Brookfield Manor 9850 Garfield 137 units 39% Cabrillo MHP 21752 Pacific Cost Hwy 46 units 100% bulk Del Mar MHP 19252 Brookhurst 142 units 39% Ellis MHP 7051 Ellis 45 units 40% HTS Mobile Estates 7652 Garfield 105 units 37% Huntington by the Sea 21851 Newland 447 units 49% Huntington Valley MHP 19350 Ward 96 units 61% Huntington Shorecliff 20701 Beach 304 units 59% Los Amigos MHP 18602 Newland 145 units 48% Pacific Trailer Park 80 Huntington 268 units 45% Scandia MHP 16444 Bolsa Chica 169 units 40% Sea Kira MHP 6241 Warner 230 units 29% Sea Breeze �HP 5200 Heil 65 units 100% bulk Villa De La Playa 16400 Saybrook 130 units 45% Rancho Del Rey 16222 Monterey 379 units 37% TOTAL SERVICEABLE 14 Parks 2708 Units TOTAL ACTIVE 1257 Units PENETRATION 46% UNCONTRACTED Beachview MHP 17261 Gothard 81 units Driftwood-Beach Club 21462 Pacific Coast 244 units Huntington Pacifica 18377 Beach Blvd. 39 units Rancho Huntington 19361 Brookhurst 193 units Villa Huntington 7850 Slater 151 units TOTAL UNCONTRACTED 5 Parks 708 units FOUNTAIN VALLEY SERVICEABLE Fountain Valley MHP 12062 Edinger 63 units 35% Rancho La Siesta MHP 18194 Bushard 181 units 29% Stoneridge MHP 12300 Lilac 135 units 38% TOTAL SERVICEABLE 3 Parks 379 units TOTAL ACTIVE 137 units PENETRATION _ 36$ UNCONTRACTED Fountain Valley Estates 9320 Talbert 192 units UNCONTRACTED 1 Park 192 units STANTON SERVICEABLE Beach Plaza Pines MHP 11250 Beach Blvd. 144 units 42% La Lampara MHP 7271 Katella Avenue 99 units 34% Parque Pacifico 12101 Dale 110 units 39% Fernwood MHP 10550 Western Avenue 165 units 56% TOTAL SERVICEABLE 4 Parks 518 Units TOTAL ACTIVE 230 Units PENETRATION 44% UNCONTRACTED Beach West MHP Estates 8051 Acacia 90 units Katella MHP 8681 Katella 269 units Rancho 39 MHP 7887 Lampson 103 units Villa- Capri Estates 8111 Stanford 176 units TOTAL UNCONTRACTED 4 Parks 638 units 4 l PUBLIC CABLE TELEVISION AUTHORITY 1984-1985 BUDGET GUIDELINES Executive Director 12 months x $610.00 per month Secretary Mid point in range of co. average of $9.87 hr. Duplicating & Printing Same as current year Postage Est. Current usage Office Supplies Same as current year Office rental 12 mo. x $100.00 Director's fees 8 x $50.00 x 8 Legal Services Current usage . incl. increase Director & Key Personnel, Sub. fees Same as current year Telephone 12 x 40 moo Subscriptions/memberships Estimated usage Mileage Est. usage Seminars, travel Same as current year Seminars, conventions Same as current year Insurance Current cost 750 + 10% Accounting & Audit Acct $125.00 x 105% x 12 mo - audit $1116 Business expenses $40.00 month x 12 Employee bond Current cost $166.00 +10% Office equip. M & R Contingent Capital Expenses Contingent Tech. Services Possible contract services Medical Expenses Physical exam for executive director 11-B S ` J)ubhc CAle TMI'N'on Oluoritp BUDGET 1985-1986 1984-1985 Proposed 1983-1984 1984-1985 11 month 1985-1986 Budget Budget Actual Budget Contract-Executive Director $ 4,000. $6,360. $6,720. $7,320. Secretary 17,400. 3,600. 2,883.40 3,600. Duplicating and Printing 583. 400. 163. 400. Postage 480. 300. 130.20 200. Office Supplies 750. 250. 125.11 250. Office Rental 6,146. 100. 100. 1,200. Director's Fees 4,800. 4,800. 2,250. 3,200. Legal Services 6,160. 5,000. 4,270.50 5,000. Utilities, Gas & Electricity 960. -0- -0- -0- Director, Key Prsnl, Sub.Fees 800. 1,860. 1,165. 1,860. Telephone 1,300. 420. 344.14 480. Subscriptions, Memberships 392. 392. 115. 300. Mileage 3,000. 2,700. 1,412. 720• Seminars - Conventions 50% 1,000. 1,000. 779.47 1,000. Seminars - Travel 1,000. 1,000. -0- 1,000. Insurance 2,782. 550. 1.,065. 825. Accounting 3,053. 3,114. 3,025. 2,700 Security Alarm 706. -0- -0- -0- Business Expenses 600. 500. 305.79 480. Capital Expenditures -0- 200. 105.94 200. Office Maint. & Cleaning 900. -0-' -0- -0- Office Equip. M & R 260. 260. 185. 100. Taxes - FUTA 130. -0- -0- - Taxes - FICA 1,264. -0- -0- - Taxes - SUI 646. -0- -0- Worker's Comp. Ins. 70. -0- -0- - Director's Fidelity Bond 700. 170. 332. 183- Technical Services 10,000. 10,000. -O- 10,000- Medical Expense 300. Medical Expense TOTAL ESTIMATED EXPENSES $71,382.00 $42,976. $25,376.55 $41,318. 1 ` ` BUDGET ADJUSTMENTS 1984-1985 Approved Budget $42976 Less reduction in mileage for Executive" Director from $2700 to $1680 1026 $41956 Plus increase in contract for Executive Director from $6360 to $7320 960 $42916 Plus increase in insurance from $550 to $1065, 515 $43431 Increase caused by rate increase and short term extension of existing policy Plus increase in Fidelity Bond Insurance from $170 to $332 Current expenditure includes payment for 83/84 and 84/85 fiscal periods. Adjusted budget $43 ,593 11-A r d PUBLIC CABLE TELEVISION AUTHORITY FINANCIAL STATEMENTS • WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS JUNE 30, 1988 d d d d d • d PUBLIC CABLE TELEVISION AUTHORITY TABLE OF CONTENTS June 30, 1988 Page Number Accountants' Report 1 Balance Sheet 2 Statement of Revenues, Expenditures and Changes in Fund Balance - General Fund 3 Notes to Financial Statements 4 - 5 DISH ''�—!c 'a ' S WIN A PETERS,CPA pY pL l�","I�VI�ZIl�r� DONALD H.PETERSON,CPA &COj� ,rP *TV DONALD E. ERER, PA CPA 1��rL�LV j L PETER SCHERER,CPA CERTIFIED PUBLIC ACCOUNTANTS RODNEY K.McDANIEL,CPA RALPH H.WEINTRAUB,CPA A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS MICHAEL R LUDIN,CPA 1910 NORTH BUSH STREET PHILIP H HOLTKAMP,CPA SANTA ANA•CALIFORNIA 92706-28% THOMAS M.PERLOSWKI,CPA PHONE(714)542-4453 t August 4, 1988 ACCOUNTANTS' REPORT Board of Directors Public Cable Television Authority Fountain Valley, California We have examined the financial statements of the Public Cable Television Authority as of and for the year ended June 30, 1988, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the • financial position of the Public Cable Television Authority as of June 30, 1988, and the results of its operations and the changes in its fund balance for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. -1- OTHER OFFICES AT: ONE CIVIC PLAZA•SUITE 265 2%5 ROOSEVELT ST. 120 WEST WOODWARD AVE. • NEWPORT BEACH,CA 92660.5915 CARLSBAD,CA 92008.2389 ESCONDIDO,CA 92025-9990 (714)644-6156 (619)729-2343 (619)741-3141 PUBLIC CABLE TELEVISION AUTHORITY BALANCE SHEET As of June 30, 1988 Account Governmental Group Fund Type General Totals General Fixed Memorandum ASSETS Fund Assets Only Cash in banks $ 22,634 $ - $ 22,634 Franchise fees receivable 487,480 - 487,480 Interest receivable 126 - 126 Office furniture and equipment, at cost (Note 2) - 8,781 8,781 TOTAL ASSETS $ 510,240 $ 8,781 $ 519,021 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 4,810 $ - $ 4,810 TOTAL LIABILITIES 4,810 - 4,810 FUND EQUITY: Investment in general fixed assets - 8,781 8,781 Fund balance (Note 4) 505,430 - 505,430 TOTAL FUND EQUITY 505,430 8,781 514,211 TOTAL LIABILITIES AND FUND EQUITY $ 510,240 $ 8,781 $ 519,021 See accountants' report and notes to financial statements. -2- PUBLIC CABLE TELEVISION AUTHORITY GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30, 1988 REVENUES: Franchise fees (Note 4) $ 914,684 Interest income 4,696 TOTAL REVENUES 919,380 EXPENDITURES: ® Legal and accounting services $ 7,409 Contract services 11,997 Office rent 1,200 Office supplies 227 Telephone 343 Directors fees 1,500 ® Seminars and conventions 634 Printing and duplicating 408 Insurance 1,235 Postage 250 Dues and subscriptions 2,550 Travel 400 Consulting fees 46,798 Miscellaneous 789 TOTAL EXPENDITURES 75,740 EXCESS OF REVENUES OVER EXPENDITURES 843,640 FUND BALANCE AT JULY 1, 1987 440,289 DISTRIBUTIONS TO MEMBERS (NOTE 4) (778,499) FUND BALANCE AT JUNE 30, 1988 $ 505,430 See accountants' report and notes to financial statements. -3- PUBLIC CABLE TELEVISION AUTHORITY NOTES TO FINANCIAL STATEMENTS June 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. The financial statements have been prepared on the modified accrual basis of accounting. Revenues are recorded when measurable and available. Expenditures are recorded at the time liabilities are incurred, except that prepaid expenses are not recorded. b. The total column on the balance sheet is captioned "Memorandum Only" to indicate that it is presented only to facilitate financial analysis. Data in this column does not represent consolidated financial information. 2. ORGANIZATION AND DESCRIPTION OF FUNDS: The Public Cable Television Authority (the "Authority") was created in 1971 pursuant to a joint powers agreement between the cities of Fountain Valley, Westminster and Huntington Beach. In 1981 the City of Stanton was admitted as a member of the Authority. The Authority was created for the purposes of developing a Community Antenna Television (CATV) System within these cities. The accounts of the Authority are organized on the basis of funds and account groups, as follows: General Fund - The General Fund is used to account for all general revenues and expenditures of the Authority. General Fixed Asset Account Group - Fixed assets purchased for the Authority are recorded as expenditures in the General Fund at the time of purchase and then are recorded at cost in the General Fixed Asset Account Group. No depreciation is provided on General Fixed Assets. 3. FRANCHISE AGREEMENT: In August 1976 , the Authority granted a franchise to Dickinson Communications , Ltd. On October 2 , 1979 the franchise was assigned to Dickinson Pacific Cablesystems (Grantee) , a partnership. On April 13, 1988, the Board approved the transfer of the franchise to Rogers Cablesystems of the Southwest Inc. (RCTSI) one of the partners of the grantee, with the provision that the Board would be furnished with a letter stating that the Dickinson Pacific Cablesystems partnership has been terminated, and that RCTSI agrees to be bound by the terms and conditions of the original franchise agreement. The franchise provided for the construction and operation of a Community Antenna Television (CATV) System within the Cities of Fountain Valley, Westminster, Huntington Beach and Stanton, financed entirely by the Grantee by use of its own funds or other private capital . The original term of the Franchise was for a period of 15 years. In 1984 the Board approved and the member cities ratified a five year extension of the term to the year 1999. See accountants' report. -4- PUBLIC CABLE TELEVISION AUTHORITY NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1988 3. FRANCHISE AGREEMENT (CONTINUED) : Upon expiration of the term of the franchise, the Cities of Huntington Beach, Westminster, Fountain Valley and Stanton, or their nominees , shall each have an option to purchase the CATV system at the lesser of ( i) total historical cost, less depreciation computed on a straight-line basis taking into account the remaining useful life of the system, ( ii) the replacement cost new, less depreciation, or ( iii) fair market value based upon comparable sales of similar systems. The price shall be paid at the time the option is exercised. The above cities may, alternatively, acquire the system by extending the franchise of Grantee to operate the system for an additional 5 years, at the termination of which Grantee shall convey title in the system, together with all underlying real property, free and clear of any debts or encumbrances , to the Cities or their nominees. 4. FRANCHISE FEE: The operations of the Authority are financed entirely from franchise fees paid by the Grantee. The franchise agreement provides that the Grantee shall pay to the Authority the greater of 5% from Grantee' s gross revenues per year from cable television operations within the franchised cities or $85 ,000 per year, payable semi-annually in July and January of each year for the preceding six months. ® The balance of the 5% franchise fee which exceeds requirements for operating expenses is distributed to each member city based upon the ratio of sales per city to total sales of the Grantee. During the current year the Authority made distributions to its participating members amounting to $778,499 . Each member' s share was as follows: Huntington Beach $ 483,217 Fountain Valley 126,010 Westminster 129,513 Stanton 39,759 Total $ 778,499 See accountants' report. -5- •