1. 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.

2. 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.

3. 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

4. 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.

5. 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.

6. 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

7. 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

8. 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