CATS Funding Request
September 27, 2006
TO: Salina City Commission
CC: Jason Gage, Salina City Manager
FROM: David Hawksworth, Executive Director, Community Access Television
SUBJECT: Additional Information for Funding Request
Introduction
As per your request, the following provides additional information related to the request
from Community Access Television for additional funding from the City of Salina.
Community Access Television currently receives 40% of the cable franchise fee from the
City (approximately $191,000), and a "pass-through" fee of 80 cents per month per
subscriber from the cable company (approximately $143,000), for a total of
approximately $334,000 per year from both sources. Community Access Television also
raises about $25,000 annually from independent funding sources.
Community Access Television's 2005 expenses include $235,868 for payroll and
employee benefits, $44,568 for equipment purchases, and $70,420 for administrative
expenses, for a total of$350,856.
The new state video franchising law does not allow the 80-cent "pass-through" fee to
continue after expiration of the current local cable franchise on February 3, 2007. Cox
Communications has declined to voluntarily continue providing this fee after the
expiration of the local franchise. Community Access has requested that the City provide
to Community Access Television 70% of the cable franchise fee (currently about
$334,000) in 2007 and beyond to continue funding Community Access Television's
operations at current levels while more independent funding sources are developed.
Why does the City currently fund Community Access Television?
The local cable franchise (and the new state law) provides that video service providers
grant the access channels on Salina's video systems to the City of Salina as owner of the
public rights-of-way. The City has designated Community Access Television of Salina,
Inc., as the management entity to administer the operation of these channels as well as an
access facility on behalf of the City. The City of Salina provides partial funding for the
operation of Community Access Television. Community Access Television has an
independent contractor status with the City.
What are the likely impacts on operations according to various funding levels?
The City Commission has requested information on the impact of reductions in funding
to Community Access Television. Listed below are probable scenarios with City funding
at selected levels in 2007:
1. There would be minimal limitations of operations at 70% of the franchise fee.
With funding at 70% of the franchise fee yielding approximately $334,000
annually, Community Access Television would continue serving Salina
citizens much as it does presently. All major programs and initiatives would
continue, such as the production of informational CiZ of Salina programming
and the Afterschool Media Literacy Program for t and 8th graders. Also,
with this level of funding, important new initiatives, such as purchasing a
video server to make programming available via the Internet to those who do
not subscribe to cable television, would be implemented. Should the City
accept Community Access Television's 5-year funding proposal (see below),
the staff would be restructured to place a higher priority on funding
development: the Administrative Coordinator and Administrative Assistant
positions would be eliminated (with tasks being reassigned to other staff or
outsourced), and a Development Director would be hired to help implement
development of independent sources of funding. Though this would mean a
total net loss of 1,500 staff hours (out of 13,150 currently), the main work of
meeting the demand for services by citizens would be largely unaffected.
2. There would be significant limitations of operation at 60% of the franchise
fee.
With funding at 60% of the cable franchise fee (approximately $286,000),
Community Access Television would operate with several significant
limitations. The staff would be restructured to reduce costs and begin
independent fund development: the Administrative Coordinator,
Administrative Assistant, and Production Coordinator positions would be
eliminated; the part-time Production Assistant position would be cut to 1,000
hours annually from 1,250; and a Development Director would be added.
This would result in a net loss of 3,830 staff hours (or about 30% of the
13,150 current staff hours), and as a result, Community Access Television
would have difficulties in meeting demand for usage of the facility by its 175
volunteers. In the absence of a Production Coordinator, much programming
would be lost. Except for coverage of meetings, all locally-produced
government and education programming would be discontinued, and Salina
citizens would no longer have an important source of information about the
services provided to them by their local government and school district. Also,
"Eye on Salina," a newsmagazine program overseen by the Production
Coordinator, would be discontinued. This program has been extremely
important over the past six years in helping new producers develop their
abilities to produce programming - quite a few current producers started by
working on this program. Because of the reduced staffing levels, Community
Access Television would also discontinue its Summer Youth Camp, leaving
Salina children without a fun, safe, and stimulating environment during the
summer months. Community Access Television would also have to reduce its
coverage of the Smoky Hill River Festival by about 50%. The River Festival
programs are some of the most popular programs with viewers, according to a
telephone survey conducted in March 2006. As current equipment wears out,
it would be replaced by lower-quality components, and several equipment
upgrades, such as the purchase of a video server to help increase access to
programming, would need to be either delayed or eliminated. It is estimated
that as a result of these reductions in service, levels of programming on the
access channels could decline by as much as 10-15%, and Community Access
Television may not be able to meet the demand for equipment and facility
usage by citizens in the future.
3. Limitations of operation at less than 60% of the franchise fee would be
devastating.
After careful and considerate discussion with its Board of Directors,
Community Access Television has determined that amounts of funding less
than 60% of the franchise fee (approximately $286,000) would be inadequate.
At this level of funding, not only would the above staff reductions take place,
but the Production Assistant position would be eliminated as well, leaving
Community Access Television with just three employees to administer the
functions of the organization (a reduction of 6,910 staff hours, or 52.5% of
current staff hours). Moreover, the remaining employees would have to take a
pay cut of as much as 7%. Since evenings are the busiest time of day, all staff
would work second shift, and operating hours would be reduced accordingly,
from 64 per week currently to 40 per week. In addition to the reductions in
service mentioned above, all youth programs would be discontinued. There
would be no funding for equipment upgrades - only for replacement (at a
lower quality) of non-functioning equipment. Since staff would need to focus
on serving current volunteers, outreach would diminish significantly, and it is
estimated that programming levels could drop as much as 25-30% or more.
Community Access Television would no longer be able to innovate and create
new initiatives to serve the citizens of Salina, and the center would eventually
become technologically obsolete. Although a Development Director could be
hired at a funding level of 50% of the franchise fee, this would be impossible
at lower funding levels, leaving Community Access Television with no way of
developing significant sources of independent funding. In short, with funding
at less than 60% of the cable franchise fee, Community Access would have
significantly reduced equipment and support available for citizens, and could
no longer be able to carry out its mission of building community by giving a
voice to those whose voice otherwise would not be heard, and providing a
forum for communication among Salina citizens through the use of electronic
media.
Citizens value Community Access Television.
The recent performance review and telephone survey completed by Community Access
Television were very positive. In the survey (completed in March 2006):
· About 60% of respondents said they watched the access channels at least once in
the past month, with about 20% saying they had watched more than five times. If
that data were extrapolated (based on about 16,400 cable subscribers in Salina), it
is estimated that approximately 9,800 cable subscribers are tuning in to
Community Access Television at least once in a given month, and about 3,300 are
watching more than five times.
· A clear majority said that Community Access Television does well or extremely
well in providing programming that deals with local issues, providing good
coverage of local government meetings and other activities, and providing
valuable community information.
· About 81 % of those surveyed said that it was important or very important to have
cable channels that feature programs about Salina schools, government,
community organizations, and residents.
· When asked how much of their monthly cable bill should be set aside for
Community Access Television, the average of all responses was $1.69 -
approximately the amount Community Access Television receives currently
(franchise fee plus "pass-through" fee).
The performance review notes that Community Access Television has undertaken several
unique initiatives that have dramatically increased programming hours and volunteer
participation over the past several years. These initiatives include:
· One-on-one training by appointment, the Afterschool Media Literacy Program,
and Tuesday Night Television (a city-wide crew call for studio productions).
· Community Access Television's "Strictly Salina" program, which highlights
non-profit organizations; in 2005, 68 non-profits were featured in programming
on Community Access Television, with many more participating by submitting
community bulletin board announcements.
Usage of Community Access Television appears to be on a record pace in 2006, both in
terms of programming hours as well as facility usage. The City Manager has praised the
work of Community Access Television, as has the Public Information Officer of USD
305. A majority of volunteer producers say that Community Access Television facilities
are readily available for use, the condition of production equipment is good or excellent,
and rate the quality of most services by Community Access Television staff as good or
excellent.
Community Access Television is the only mass media voice Salina citizens have.
For a democracy to succeed there must be a free exchange of ideas. In our "mass media"
society today, it is quite difficult for the average citizen to express his or her voice in a
way that other citizens can hear. The cost of expressing one's opinion on commercial
television or radio is normally beyond the reach of most. Newspapers, while accepting
letters to the editor, may edit the letters or disregard them altogether.
Community Access Television provides the free use of television production equipment,
training to use such equipment at nominal rates, and free channel time for citizens to
express any and all opinions in an unfettered manner. Community Access Television
exercises no editorial control over programming submitted by citizens. It is the only
mass medium that allows expressions of our citizenry to be made - and heard. Although
there are nearly 2,000 similar access centers around the country, Community Access
Television is the only one in the state of Kansas, and the City Commission should be
commended for giving Salina citizens the opportunity to use this powerful
communications tool.
While most other access centers are content to just help CItIzens make and show
programming, Community Access Television has deliberately gone beyond such a model
to more effectively serve Salina citizens. This includes not only the initiatives mentioned
above, but also collaborating with other organizations to bring information to the public
through community forums, "Strictly Salina," and other staff-produced programming;
inviting greater political dialogue by helping candidates for political office create
statements concerning their candidacies; creating a better sense of community by
covering the High School Graduations, the Smoky Hill River Festival, the Tri-Rivers
Parade, and the Santa Fe Day Parade; and more. In short, Community Access Television
has actively helped to raise community dialogue in Salina to levels unseen in other
Kansas communities. To weaken this opportunity, regardless of the entertainment value,
is to weaken our democratic process.
Community Access Television can make improvements.
Improvements to Community Access Television are needed in several areas, such as
establishing more partnerships, improving community outreach, engaging more citizens
in community dialogue, and improving quality of service in some areas. But to
accomplish these and other improvements, it is vital that Community Access Television
have adequate funding. Without it, Community Access Television will not be able to
grow and develop, and simply will not be able to serve Salina citizens effectively.
Community Access Television would like your support and makes this proposal.
Community Access Television recognizes it is asking for a large increase in funding
provided by the City; however, it is not asking for any more total funding than it is
receiving under the current funding mechanisms. Indeed, had the change in state law
occurred at a point where the cable franchise (and Community Access Television's
contract with the City) was several years from expiration (rather than expiring in 4 If2
months), Community Access Television would not be asking for this funding.
Community Access Television was not originally set up as an organization with a major
fundraising function because it was anticipated by all parties at that time that the funding
mechanisms put in place would serve as the primary funding vehicles and major
fundraising would not be needed to provide services to effectively serve the community.
We now find ourselves in a different environment - one that has changed quickly, and
Community Access Television recognizes the need to develop substantial independent
sources of funding. Community Access Television is in the first stages of putting such
development processes in place. It is anticipated that a Development Director will be
hired to start as soon after January 1, 2007 as possible. It is the goal of Community
Access, by the end of 2011, to raise enough funds annually from independent sources to
completely replace the "pass-through" funding that will soon disappear (approximately
$143,000). Developing these revenue sources is not a quick process, though, and a
"ramp-up" period of several years will be necessary. In light of this, to continue serving
Salina citizens effectively Community Access Television proposes the following:
1. The City of Salina and Community Access Television will enter into a new 5-
year contract (from January 1, 2007 until December 31, 2011) in which the
City grants to Community Access Television a percentage of the cable
franchise fee according to the following schedule:
· 2007: 70%
· 2008: 65%
· 2009: 60%
· 2010: 55%
· 2011: 50%
2. During these five years, Community Access will be actively engaged in
developing increased independent sources of revenue. Community Access
Television will continue to provide annual financial data to the City so
progress on fund development may be monitored.
3. In mid to late 2011, the City and Community Access Television will review
the funding situation and decide on a future funding level for Community
Access Television by the City. It is the goal of Community Access Television
that enough independent funding can be secured so that funding by the City of
Community Access Television's operations can return to 40% of the cable
franchise fee in 2012 and beyond.
It should be clearly recognized and understood that the City will need to play a
continuing part in the future funding of Community Access Television's operations.
There are two main reasons for this:
1. As mentioned above, the access channels are granted to the City, and the City
has designated Community Access Television to manage those channels and
the access facility on behalf of the City. Therefore, it seems appropriate that
the City be a major funder of Community Access Television's operations.
2. It is unlikely, with many other requests for charitable dollars in Salina, there
would be enough independent funding available for Community Access
Television to be completely self-sustaining.
There is a clear and growing demand for the services that Community Access Television
offers, and in order to meet this demand, Community Access Television would like to
work with the City of Salina to create a public-private funding arrangement for the
continued effective operations of Community Access Television.
Conclusion
Community Access Television hopes this provides the information the Commission
needs to make a decision concerning Community Access Television's future funding.
Community Access Television would be more than happy to host a future study session
to provide a tour of the facility and give more details on our operations. Please let us
know if you require any further information concerning this issue. We look forward to
constructive discussions, and thank you once again for your consideration of this request.