HomeMy WebLinkAboutItem 8.1 CTV OperatingSubsidy
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CLERK
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: JUNE 25, 1996
SUBJECT:
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EXHlBITS ATrACHED:
crv Operating Subsidy
Report Prepared by: Steve Honse, Administrative Assistant
1. Letter to crv dated February 26, 1996
2. Response from crv Board of Directors, dated June 4, 1996
3. Letter from crv Board Secretary, dated Apri115, 1996
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RECOMMENDATION: 'Q; ~ Receive report and direct staff as appropriate
FINANCIAL STATEMENT:
DESCRIPTION:
To the extent that CTV subsidies are reduced, there would be a
savings to the City
The City Council has identified the review of the City's financial commitment to channel 30 as a medium
priority objective. The sta~ goal was identified by the City Council in 1995. The goal included a
statement to implement a plan to phase out subsidies. On February 26, 1996, a letter was sent to the crv
Board of Directors (Exhibit "I 'J to infom them of the City's interest in exploring alternative funding
schemes. On May 28, 1996, the crv Board consic:1ered the City's letter. The Board responded with a .
letter to 'the City Manager dated June 4, 1996 (Exhibit "2").- This item is on the agenda in'order to allow
the Council to discuss CYV's response and, to determine whether any additional exploration of the issue is
required.
Beginning during the Fiscal Year 1994-95 budget deliberations, the City Council has questioned whether
the City should be involved in the funding of CYV. The City Councilhas consistently expressed the
sentiment that CIV should rely less on City funding and more on self funding. crv has been encouraged
to seek outside funding and to anticipate that, at some time in the future, the City will discontinue
providing an operating subsidy.
In a letter to the CTV Board of Directors dated February 6, 1996, staff requested that the crv Board
consider the City of Dublin's desire to phase out the subsidy and also requested a clear outline of their
financial plans. The letter also put forth a suggestion that crv offer progranuning in termS of menu
options. Under this system, each program would be casted-out and the City would have an opportunity to
choose which menu options to support.
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COPIES TO:
Claudia McConnick, Dublin crv Appointee, Edy Coleman, Dublin crv Appointee, Jeff Borio, (City of
San Ramon) crv Secretary: ~. ~ f
ITEM.NO.~
Hlcc:-formslagdastmt.doc
CTV'Response . .
The Boai'd msponded with a letter to the City Manager dated June 4, 1996. ') A copy of the letter is
attached as Exhibit "2". The Board's position is that a base level of programming m\lst be established.
According to the Board, "Without this base level of f"mancial support from the Cities, cry would cease .,~.;:.:
to exist" The Boardcmrently considers the following programs as its base or minimum level of service: ::.<,
A. News (3 days)
B. Valley Forum
C.' Electipn coverage
D. The Mayors Report
Staff has spoken to both of Dublin's members of the crv board, Edy Coleman and Claudia McCOmiick to
get a better understanding of the Board's position. They represent the position of the Board as follows:
The base level funding' from the Cities covers only minimum Qperatin~ eX,pCnses
The organization necessarily endures expenses prior to the airing of even a single program.
" While each program involves additional expenses,.it is unrealistic to assume that crv can
recover operating expet1ses by selling increments. without a mechanism that provides for
1:Cvenues' which cover basic operating costs such as equipment, repair and supplies.
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crv eJtPenses are low an4 cannOt be siJDificantly reduced
It is unrealistic ,to anticipate significant reductions in operating costs.
~ '1neIiu plan" wouldma1re it very difficult if not impossible. to offer rerular
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If crv is to offer regular PJ'Ogranuning, then' a certain level of funding is necessary. The-
Board .sees the primary issue as whether Dublin wants to be a full partner in a CTV that.
offers regular progranuning.
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Staff also contactedCfV Bxecutivc'DirectorDarla Stevens. She agreed that each of the above statements
:represent.tbe position of the Board. Pmthermore, s~ stated :
crvbas badsucccss. in obtaining'~g from outside sources. Base level funding from
the Cities furnishes funds for the most basic operating expenses. Without these funds, crv
.:" would be nnable to secure additional funding fromlocal businesses and community
organi1J1rions.. F~g from the cities is vital an4 will remain so for the foreseeable futUre."
Funding History I
Below is a chart which lists the CitY's historic contribution to cry for basic programming and the amount
requested by CIVforFiscal Year 1996-97: I
1992-93 1993-94 1994-95
(AcniaI) (ActUal) \ (Actual)
$49,000 $20,279 $22,779
Hole: Does IIIlIt IDdude fImds bucI&*d fortbe pupoIe oftoleYiJiDa' c.acil meetiDp
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1995-96
.' (Estimated)
$21,236
1996-97
(Requested)
$22,006
Analysis , . .
The cost associated with CIV progranuning has remained relatively. constant for four of the past five .J
years. Further, the funding required from the City has been Ieduced substantially from the levels provided .. .
, prior to Fiscal Y~ 1993194. This reduction istbe result of a policy, adopted by the Board, of allocating
its cost to participating cities based upon the number of subscribers. This funding allocation is explained in
the letter from the Board (Exhib~t "2").
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crv has sought and obtained funding from other sources. These monies have been used to enhance and
underwrite additional progranuning. The Board has stated that it has a continuing interest in seeking
funding to underwrite local progranuning.
Recommendation
Staff recommends that the City Council receive this report and provide staff with direction on any further
action or follow-up.
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CITY OF DUBLIN
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City Offices, 100 Civic Plaza, Dublin, California 94568
P.O. Box 2340, Dublin, California 94568
February 26, 1996
Mr. Jeff Eerio, Secretary
Community Television (CTV)
City of San Ramon
2222 Camino Ramon
San Ramon, CA 94588
Re: 1996/97 Budget Proposal
Dear Jeff:
The City of Dublin anticipates that the Commuriity Television Board of Directors will make a funding
request for the upcoming fiscal year. During the preparation of past budgets, the Dublin City Council
has annually reviewed the City's financial commitment to CTV's on-going operating costs. CTV has
been encouraged to implement a plan to phase out operating subsidies from the cities.
When CTV submits this year's request for funding, it will be important that they clearly outline their
financial plans as well as their justification for anticipated service levels. In the past, the City Council
has been interested in evaluating CTV programs in terms of menu options. Under this system, a city
could choose which menu options to support. I understand that, to some extent, this was done in the
past with Video Newsletters.
Please instruct the CTV Board of Directors to provide the information requested above as soon as
convenient. However, in order to incorporate this information into the City's budgetary process, it
would be beneficial to have preliminary information b~ early April.
Please advise me as to when you anticipate the Budget information will be available. If you have any
questions or wish to discuss this matter, please call me at 833-6655.
Sincerely,
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Administrative Assistant
cc: Richard C. Ambrose, City Manager
Lou Ann Riera-Texeira, Assistant to the City Manager
Mayor and City Council members
Edy Coleman, CTV - Dublin Representative
Claudia McCormick, CTV - Dublin Representative
Daria Stevens, CTV Executive Director
SHllss g :Admln/CTVBudg.doc
EXHIBIT 1
Administration (510) 833-6650 . City Council (510) 833-6605 . Finance (510) 833.6640 . Building Inspection (510) 833-6620
Code Enforcement (510) 833.6620 . Engineering (510) 833-6630 . Parks & Community Services (510) 833-6645
Police (510) 833.6670 . Public Works (510) 833.6630 . Planning (510) 833.6610
COpy
June 4, 1996
Richard Ambrose
City Manager
City of Dublin
P. O. Box 2340
Dublin, California 94568
Dear Richard:
This letter is in response to the letter sent to the Community Television (CTV) Board of
Directors regarding funding for CTV from the City of Dublin.
The Tri-Valley CommuI')ity Television Board of Directors. in response to the City of Dublin's .
request in 1993/94. restructured the basis for City funding of CTV and developed a "base>:.
level" of operations and public service programming which the Cities funding supports. This
base level of programming includes approximately three days of 5801680 News (the fourth
day is covered by underwriting) , Valley Forum. election coverage and Mayors Report.
Without this base level of financial support from the Cities, crv would cease to exist. Any
"menu" options that a City may want broadcast is above and beyond the "base." Menu items
include City video newsletters, broadcasting of Council meetings and training videos.
The Board of Directors. with the support of the Cities, in 1995/96. again in response to
Dublin, changed the methodology by which Cities support cry. Previously, each of the four
Cities supported CTV with a flat $48.000. The formula is now based on numbers of Viacom
subscribers within each Citv, which resulted in a 55% reduction in cost to the Citv of Dublin.
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This required an increase in costs to the Cities of Livermore and Pleasamon. which they
supported. and cominue to support because they understand the benefits that CTV provides
to their communities. and the fairness of the methodology.
crv very much depends on the financial suPPOrt of the Cities of Dublin. Pleasanton,
Livermore and San Ramon. Again, without their financial support for the basic operations of
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Trl.Valley Community Television
Daria Stevens, Executive Director · 4663 Bernaf Ave., Ste. B · Pleasanton, CA 94566 . (51 Q) 462-3373
EXHIBIT 2
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Richard Ambrose
Page 2
June 4. 1996
the station, crv would cease to exist. C1V has done an admirable job over the past'several
years to secure underwriting to further support programming which is significant and
beneficial to our collective communities. Examples of this programming includes; One
additional newscast weekly; EBAL Wrap (high school sports show); Everything Local; Media
Roundtable; Conversations; Let's Talk SportS; and Valley Gardner.
The Community Television Board of Directors and staff is committed to continuing to
provide quality. award winning local public interest programming. Additionally. we are
working hard to pursue additional underwriting that will support additional original local
programming which will benefit all of the viewers in the Tri-Valley.
The financial support of the Cities is necessary and fundamental. a position the Board
unanimously supports. To further clarify the position of the Board of Directors. your
appointed representatives, Edy Coleman and Claudia McCormick will be contacting your
office to review this matter.
Sincerely,
Charlotte Severin
Chairperson
Edv Coleman
Vice-Chairperson
cc: City Managers
Pleasanton
Livermore
San Ramon
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CITY OF SAN RAMON
1221 CAMINO RAMON
r,O, BOX 5148
SAN RAMON. CAlifORNIA 94S83
(510) 175.2200
FAX, (510) 866.1436
April 15, 1996
Steve Honse
Administrative Analyst
City of Dublin
P. O. Box 2340
Dublin, California 94568
Dear Steve:
Attached is a funding request from Tri-Valley Community Television (CTV) to the
City of Pleasanton for 1996/97. The CTV Board of Directors voted to request a very
modest 3.5% i~crease in funding from the Cities to cover the increased costs of
providing the "base level" of services to the Cities, including the 580/680 News,
Mayors Repon, and Valley Forum.
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In order for CTV to be able to continue to provide quality, original local
programming to the residents of the Tri-ValIey, CTV must rely on the support of it's
member Cities. Weare truly grateful for the support we have received, over the years,
and we look forward to another year of quality programming.
"CTV, important because it's local!"
Sin~erelY. /J
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Secretary to the CTV Board &
Parks and Community Services Director
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EXHIBIT 3
CITY COUNOL, 275.2)30
CITY IMNAC:;E~, 275-2HO
CITY CLEltK: 275.2350
^OMINISTR^lJVE 5ERVt(:ES, 275.232]
PUBLIC 5E~V1CES: 275.2260
T~^NSPO~T^TION: 27S.22)0
POLICE: 27S-2270
P^~KS " COMMUNITY SE~VlCES: 27S-229D
COMMUNITY CENn~: 27S.2]OO
SENIOR CENTE~: 27S,231'
ENG'NEt~'NG: 27S.2250
fOI.,\NNINC: 27S.22.0
BUILDING INSPECTION: 27S.2220
~mFvELOPMENT: 27S-22BO
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Tri-Valley Community Television Corporation
Proposed 1996/97 City Funding
A e:en cv # of 1992/93 1993/94 1994/95 1995/96 *Proposed
Subscribers Fundin!! Fundin!! Fundin!! Fundin~ 1996/97
Pleasanton 19,168 $48,000 $41,000 $46,590 $47,221 $48,934
Livermore 19,318 $48,000 $41,000. $42,790 $45,000 $46,632
Dublin 7,263 $48,000 $20,279 $21,893 $21,236 $22,006
San Ramon 13,508 $48,000 $41,000 $33,436 $34,196 $36,642
Total 59,257 $192,000 $143,279 $144,709 $149,000 $154,214
Each City also receives a $1,000 "contribution" for equipment and repair annually from Viacom
as a franchise requirement. Each City in turn, contributes that funding for repair of equipment at
CTV.
The proposed funding increase for CVT in FY 1996/97 is + 3.5%, equates to a $5,214 increase
overall to $154,214. This 3.5% increase is proposed to fover additional expenses of providing a
"base level" of programming forthe funding Cities. This base level includes the following
programs: 580/680 News, Mayor's Report, and Valley Forum.
Major increases in costs incurred by CTV during FY 1995/96 have been in temporary employee
services and full time salaries. These operational costs are imparative to the day to day
operations of CTV and it's ability to provide the Cities a "base level" of programming.
* Proposed Funding Level for 1996/97