Joint Finance Committee / Council June 4, 2018 Pasadena Community Access Corporation (PCAC) FY 2019 Recommended Budget Joint Finance Committee / Council June 4, 2018 Keep it short. Speak up. Stay on script. Make eye contact. In the interest of time, I’ll go through this quickly. I’ll be happy to answer any questions after the presentation.

PCAC Background PCAC (“Pasadena Media”) is one of City’s three Operating Companies Serves as umbrella organization for Pasadena’s PEG Stations: Arroyo Channel -- Public Access KLRN & PCC-TV -- Education Access KPAS -- Government Access As you all know, PCAC, also known as Pasadena Media, is an operating company of the City and serves as an umbrella organization for Pasadena’s four Public, Education and Gov’t channels, which I’ll refer to as PEG throughout the presentation.

PCAC Pasadena Media: Purpose and Function Provides community access to local cable TV Operates TV studio for producing & cablecasting PEG programming Staffs KPAS & creates government info programming, including live Council meetings, press conferences, PSAs, special events, emergency info and bulletin board announcements Provides training, resources and facilities for the public to successfully produce their own TV programs Serves as City’s official administrator and disbursing entity for 1% PEG fee collected via cable providers from subscribers Oversees & administers all policies, regulations, rules and procedures for use and scheduling of local public access channels PCAC provides free speech access to local cable television, Operates a studio for creating and cablecasting local content, Creates gov’t programming for the City on KPAS – such as City Council meetings like this, event coverage, emergency information and other announcements, Provide training and equipment for the public’s use, Administer the 1 percent PEG fee, which I’ll delve into more in a little bit, And we oversee all the rules and regulations pertaining to using those non-commercial PEG cable channels

PCAC Revenue History By Source Sources FY 2017 Actual FY 2018 Revised Recommended General Fund $1,008,000 $940,000 $960,000 Production Services 40,000 38,000 39,000 Program Services & Member Fees 17,000 16,000 18,000 1% PEG Fee Allocation (Capital) 198,000 200,000 Total $1,263,000 $1,194,000 $1,217,000 When it comes to PCAC’s Operating Revenue, you can see that the bulk of our funding comes from the general fund, with other funding coming in from fee-for-service production and fees we collect from those who utilize the facility. From the general fund in FY19, we’re requesting the same amount as the current year.

PCAC Expense History By Category Expenses FY 2017 Actual FY 2018 Revised FY 2019 Recommended Personnel $678,000 $714,000 $738,000 Occupancy 235,000 181,000 185,000 Other 87,000 96,000 93,000 PEG (Capital) 198,000 200,000 Total $1,198,000 $1,191,000 $1,216,000 FTEs 12 As for PCAC’s Operating Expenses, you can see that much like other non-profits like us, our major expenses lie in our staff and occupancy. As usual the contributing factors in the Personnel increase are in benefits – we have rising health insurance costs. Once again, we have no salary increases in the coming year. Occupancy Costs are going up as we have escalators built into the lease. We’ve cut everything else in the “Other” area you see there to the bone, so any further cuts would lead to service cuts.

PCAC 1% PEG Fee By State Law, cable companies collect 1% “PEG Fee” from cable television subscribers Fee is restricted for capital improvements & equipment to benefit all four local channels & PEG system, not PCAC Operating Budget money In Pasadena, PEG fees collected per year average about $250,000 Starting in FY17, City retains 20% of all future PEG monies In FY17, funds used to install centralized production network for PCC-TV, purchase production van for KLRN and reconfigure PCAC facilities Now on to the 1% PEG fee that I mentioned earlier. You might equate this to our Capital Improvement budget. State law requires that cable companies deliver 1% of the cable TV revenue they get from residents and businesses in Pasadena to the City for PEG-related capital uses like equipment upgrades and tenant improvements. For the past few years, this amount has been a little over 250 thousand dollars. The uptick you see at the bottom of the screen is due to the City using the bulk of FY16 PEG fees for the Council Chamber upgrades that we’re enjoying right now. Also, in FY17 going forward, per the City Manager’s office, 20 percent will remain with the City to fund similar projects, while the rest will go to PCAC as usual, in this case, we’re expecting revenues to continue to be flat for the cable companies and that number will be 200 thousand. Examples: PUSD Boardroom, the buildout of the Pasadena Media TV studios, cameras for PCC – this year, we purchased equipment that allows us to use cellular service to deliver video remotely, which is how we went live with the Homeland Security Press conference before the Rose Parade as well as last week’s Police and Fire Memorial service. FY 2017 Actual FY 2018 Revised FY 2019 Recommended PEG Fees Received by PCAC $198,037 $200,000

PCAC Increased Occupancy Costs Increased Staff Costs Significant Changes From FY 2018 Budget Increased Occupancy Costs Rent escalator in lease Increased Staff Costs Rising health insurance premiums First cost-of-living adjustment in three years Offsetting Rising Costs Increasing alternative funding (e.g. grants & charitable donations)

PCAC Key Issues Strategies FY 2019 Key Issues and Strategies Reliance on City Funding Changing Media Landscape Branding / Marketing KPAS Utilization Identify additional sources of revenue, increase underwriting & charitable donations Renew focus on training Increase social media presence, implement guerilla marketing, launched new website with video- on-demand, formed CAC Implemented KPAS Work Plan to efficiently highlight City departments and information