HomeMy WebLinkAboutStaff Report 1656City of Palo Alto (ID # 1656)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/6/2011
June 06, 2011 Page 1 of 5
(ID # 1656)
Summary Title: Approval of Agreements with Media Center
Title: Request for Approval of: 1) Agreement Between the City of Palo Alto on
Behalf of the Joint Powers and the Midpeninsula Community Media Center, Inc.
for Public, Education, and Government Access Channel Support Services; 2)
Amendment No. 1 to Agreement No. C05111535 Between the City of Palo Alto
and Midpeninsula Community Media Center, Inc. in the Amount of $25,000 for
Cablecasting and Other Production Services Through June 30, 2011 for a Total
Amount Not to Exceed $125,000; 3) Agreement Between the City of Palo Alto
and Midpeninsula Community Media Center, Inc. in the Amount of $100,000 for
Cablecasting Services from July 1, 2011 Through June 30, 2014; and 4) Authorize
the City Manager to Execute Amendments to the Cablecasting Services
Agreement Between the City of Palo Alto and the Midpeninsula Community
Media Center, Inc. for Additional Services in an Amount Not to Exceed $25,000
Per Year
From:City Manager
Lead Department: Administrative Services
RECOMMENDATION
Staff recommends that the City Council:
1)Approve an Agreement between the City of Palo Alto, representing the Joint Powers
communities (Palo Alto, East Palo Alto, Menlo Park, the Town of Atherton and portions of
San Mateo and Santa Clara counties), and the Midpeninsula Community Media Center, Inc.
from July 1, 2011 through June 30, 2014, with the option to extend for two additional two-
year periods, for public, education, and government access channel support services.
2)Approve Amendment No. 1 to Agreement No. C05111535 between the City of Palo Alto
and the Midpeninsula Community Media Center, Inc., in the amount of $25,000, to cover
cablecasting and other production services through June 30, 2011, for a total contract
amount not to exceed $125,000.
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3)Approve an Agreement between the City of Palo Alto and the Midpeninsula Community
Media Center, Inc., in an amount not to exceed $100,000 per year, from July 1, 2011
through June 30, 2014, for cablecasting services.
4)Authorize the City Manager or his designee to execute one or more amendments to the
Cablecasting Services Agreement between the City of Palo Alto and the Midpeninsula
Community Media Center, Inc. for related, additional but unforeseen work which may
develop during the year, in an amount not to exceed $25,000 per year. If the contingency
is utilized, it would bring the total amount of the Cablecasting Services Agreement (in
recommendation number three above) to $125,000.
BACKGROUND
In 1983, a Joint Powers Agreement (JPA) was entered into by Palo Alto, East Palo Alto, Menlo
Park, the Town of Atherton and portions of San Mateo and Santa Clara counties for the
purposes of obtaining cable television service for residents, businesses, and institutions within
these jurisdictions. The JPA gives Palo Alto the sole authority to administer cable franchises and
act on behalf of the JPA members. Cable franchise holders provide various forms of
compensation (e.g., franchise fees; public, education, and government (PEG) access fees and
local channels, etc.) to pay for the use of the JPA’s public rights-of-way.
The City’s Cable Television Ordinance provides that the City may designate a nonprofit access
management entity (Access Corporation) to operate and administer its PEG facilities,
equipment and channels. In 1991, the City Council designated the Mid-Peninsula Access
Corporation (MPAC) as its Access Corporation. In 2000, as part of the sale of the Cable Co-op
system to AT&T, a new nonprofit, the Silicon Valley Community Communications (SVCC) was
formed. AT&T made a charitable donation of $17 million to SVCC. In August 2001, MPAC
merged with SVCC and was renamed the Midpeninsula Community Media Center, Inc. (Media
Center). Since that time, the Media Center has served as the Access Corporation for the JPA. In
this role, the Media Center administers the JPA’s seven PEG channels, broadcasts local
community programs, offers video production classes and workshops to community members,
and provides local election coverage. In 2010, the Media Center cablecast a total of 2,782
community programs and provided gavel-to-gavel coverage of 368 local government meetings.
Palo Alto forwards all PEG access fees received from franchise holders (currently AT&T and
Comcast) to the Media Center in support of these services. These PEG fees total approximately
$325,000 on an annual basis.
The Media Center has used a portion of the AT&T charitable donation to purchase a new state-
of-the-art facility (studio, video production and training facility) located at 900 San Antonio
Road in Palo Alto. The donation monies are also used, on an ongoing basis, to fund a portion of
the Media Center’s annual operating expenditures.
The JPA’s existing agreement with the Media Center expires on June 30, 2011. In addition, the
City of Palo Alto has a separate agreement with the Media Center for cablecasting services in
the amount of $100,000 per year. This agreement is also set to expire on June 30, 2011.
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DISCUSSION
Access Corporation Agreement
Since the early 1990’s the Media Center (formerly the Mid-Peninsula Access Corporation) has
served as the Access Corporation for the JPA. Over the years, the Media Center has created a
vibrant organization and built a top-notch studio and training facility that serves the JPA
communities. Since the Media Center owns its video production facility and has ongoing
income from the AT&T charitable donation to supplement its operating expenditures, there is a
significant barrier to entry for any other provider of this service. Due to these circumstances,
staff recommends that the City Council approve a new Access Organization agreement with
Media Center on behalf of the JPA. The key terms are discussed below.
Term: The new agreement is for a three-year time period with the option to extend for two
additional two-year periods. This term was established to coincide with the term of the
Comcast franchise agreement, expiring in 2018. The AT&T franchise agreement expires in
2017.
Public Channel Administration: Operate and manage public access channel numbers 27, 28,
and 30 for local community programming purposes. Community members use the public
access channels to create and distribute programs that promote and celebrate individual
expression, local achievements, education, cultural exchange, arts appreciation and civic
engagement.
Government Channel Administration: Operate and manage government access channel
numbers 26 and 29. These duties include coordinating JPA member requests for use of the
channels, program scheduling, program acquisition and production, live unedited coverage of
government meetings, replays of local agency meetings, channel publicity and maintenance of
the scrolling cable text.
Education Channel Administration: The two education access channels (channel numbers 75
and 76) are operated and managed by Stanford University and De Anza Community College.
The Media Center would only be called upon to manage these channels on an as needed basis.
Classes, Facilities & Equipment: Manage and maintain a video production studio, cameras, and
editing equipment so that it is available for public use. Offer workshops in the techniques of
video production and provide technical advice in the creation and execution of productions.
Train and certify students to become community producers to create non-commercial
programs for distribution on the public channels.
Annual Plan and Budget: Involve the JPA in the development of annual plans and budgets.
Each year, the Media Center would submit its annual plan and budget to the City, outlining the
activities and programs that are planned for the following fiscal year. The JPA would have an
opportunity to comment on the plans and Media Center would take the comments into
account when finalizing its annual plan and budget.
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Standard Rates: The new agreement implements a new set of standard hourly rates that will
be used by JPA member communities, schools, non-profits, and small businesses when
contracting with Media Center for the creation and production of custom videos or for
cablecasting government meetings. Examples of custom videos include: clips for websites,
public service announcements, training videos, fundraising campaign messages, live event
coverage, and documentaries. The Media Center’s existing rates are based on operating costs
that included high facility rental expenses. With the SVCC merger and subsequent ownership of
its facility, the Media Center has been able to reduce its operating costs. As a result, the Media
Center has lowered some of its production and miscellaneous rates in the new agreement,
while keeping all other rates unchanged.
Funding: The City would continue to pass along the entire PEG fee payment received from
AT&T and Comcast to the Media Center. These fees are $.88 per subscriber per month, or
approximately $325,000 annually.
Amendment to Existing Agreement
Staff requests that the Council approve an amendment to the existing agreement between the
City of Palo Alto and the Media Center to cover cablecasting and other production services
through June 30, 2011. This amendment adds $25,000 to the existing agreement, for a total of
$125,000 in fiscal year 2010-11. This money is needed since there have been a larger number
of (and longer starting at 6pm instead of 7pm) City Council and Council Committee meetings
this fiscal year (e.g., new Rail Corridor Study Task Force, Council Rail Committee, etc.). In
addition, this funding is to pay for coverage of the City Council retreat held in January 2011 and
the Mayor’s State of the City address.
City of Palo Alto Cablecasting Services Agreement
Staff requests that Council approve a new agreement between the City of Palo Alto and the
Media Center, in an amount not to exceed $100,000 per year, starting on July 1, 2011. This
agreement funds: 1) cablecasting of Palo Alto City Council, Council Committee and Board and
Commission meetings; 2) archiving webcasts of City meetings and hosting on them on the
Media Center website; and 3) programming of Palo Alto special events, programs and activities.
The Media Center will bill for these services monthly based upon the standard rates established
in the Access Corporation agreement with the JPA. A contingency amount not to exceed
$25,000 per year is requested to cover extended City meetings or additional production
services requirements, if needed. If the contingency is used, it would bring the total contract
amount to $125,000 per year.
RESOURCE IMPACT
Funds for the Access Corporation agreement come from PEG fee revenues (approximately
$325,000 annually) received from AT&T and Comcast. Funds for the City of Palo Alto
agreement are part of the Technology Fund’s FY 2011-12 Proposed Budget. These costs are
offset by franchise fee revenues received from AT&T and Comcast, which amounted to
$768,449 in calendar year 2010.
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POLICY IMPLICATIONS
The recommendation is consistent with the City Council practice of funding PEG access services
provided by the Access Corporation with PEG fee revenues received from cable franchise
holders.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act.
Attachments:
·Attachment A: Agreement Between the Media Center and the City of Palo Alto
Representing the JPA for PEG Services (PDF)
·Attachment B: Amendment No. 1 to C05111535(PDF)
·Attachment C: Agreement between the Media Center and the City of Palo Alto for
Cablecasting Services (PDF)
Prepared By:Melissa Cavallo, Financial Analyst
Department Head:Lalo Perez, Director
City Manager Approval: James Keene, City Manager