1. 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.

2. 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.

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% 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

4. 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.

5. 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.

6. 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

7. 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)

8. 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