Joint Finance Committee / Council June 10, 2019 Pasadena Community Access Corporation (PCAC) FY 2020 Recommended Budget Joint Finance Committee / Council June 10, 2019 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 -- Public Access KLRN & PCC-TV -- Education Access KPAS -- Government Access 2 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 Percent PEG fee collected from cable providers 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 Operating Revenue History By Source Sources (rounded) FY 2018 Actual FY 2019 Revised FY 2020 Recommended General Fund $940,000 $910,000 967,000 Production Services 35,000 38,000 36,000 Program Services & Member Fees 18,000 21,000 Total $993,000 $966,000 $1,024,000 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 FY20, we’re requesting $7k more than approved last year, which was prior to the $50k General Fund reduction.

PCAC Operating Expense History By Category Expenses (rounded) FY 2018 Actual FY 2019 Revised FY 2020 Recommended Personnel $689,000 $731,000 $741,000 Occupancy 176,000 183,000 202,000 Other 128,000 52,000 81,000 Total $993,000 $966,000 $1,024,000 FTEs 12.00 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 rising health insurance costs in benefits and we have a 2% COLA. Occupancy Costs are going up as we have escalators built into the lease and we have no rent abatement month this year. In addition, this year we anticipate not having to draw down our emergency reserve account to offset a General Fund reduction.

PCAC 1% PEG Fee By State Law, cable companies collect 1 percent “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 last five years, PEG fees collected in Pasadena average $250,000 Starting in FY17, City retains 20 percent of all future PEG monies In FY18, funds used to purchase equipment to supplement three existing production systems for KLRN and replace equipment for PCAC 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. 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. For the past few years, this amount has been around 250 thousand dollars which is dropping slowly compared to the rest of the country. We expect that trend to continue and have estimated that will receive 190 thousand. Examples: PUSD Boardroom, the buildout of the Pasadena Media TV studios, cameras for PCC – this year, we replaced camera pedestals in our studio, editing computers and added an audio booth. FY 2018 Actual FY 2019 Revised FY 2020 Recommended PEG Fees Received by PCAC $193,678 $200,000 $190,000

PCAC Normalized General Fund Contribution Increased Occupancy Costs Significant Changes From FY 2019 Budget Normalized General Fund Contribution No reserve draw down to maintain balanced budget Increased Occupancy Costs Rent escalator in lease No free rent abatement month Increased Staff Costs Rising health insurance premiums 2% cost-of-living adjustment Decreased Legal Fees Last repayment of a settlement paid

PCAC Key Issues Strategies FY 2020 Key Issues and Strategies Metrics Public Awareness & Competition for Viewership KPAS Programming Lease Identify and implement enhanced metrics through social media and other methods Finalize and implement new Strategic Plan including comprehensive marketing campaign Continue to expand partnerships with City Departments Negotiate and engage in new lease