Honorable City Council From

OLD BUSINESS
AGENDA ITEM #
CITY OF VILLA PARK
CITY COUNCIL
September 22, 2009
To:
Honorable City Council
From:
Lori Sassoon, City Manager
SUBJECT:
RESTRUCTURING OF THE VILLA PARK COMMUNITY ACCESS
TELEVISION CORPORATION (VPCATV)
DATE:
September 17, 2009
BACKGROUND
As part of the City’s FY 2009/10 Priorities and Work Plan, staff recommended that the
City Council consider a restructuring of the VPCATV Corporation. The purpose of this
potential restructuring would be to build on the successes of VPCATV to date, while
seeking to contain long-term costs and address technical issues with the operations of
VPCATV.
At the August 25 City Council meeting, the Council received a report regarding the
potential restructuring (Attachment 1). The Council then unanimously voted to direct
staff to pursue the restructuring of VPCATV, and to prepare the transition plan.
Following that meeting, staff developed a draft transition plan (Attachment 2) that was
presented to the City Council and VPCATV Board of Directors at the Annual Meeting of
the Members of the VPCATV, which was held on September 2. At that meeting, the
City Attorney also provided information regarding the legal issues surrounding the
potential dissolution of the non-profit corporation, and the distribution of its assets. A
lengthy discussion was held at that meeting regarding the concepts, and no action was
requested or taken by either the Council or the Board.
It is recommended that the City Council authorize the City Manager to initiate the
restructuring of VPCATV as outlined in the transition plan, and call a special meeting of
the VPCATV Corporation in order to dissolve the corporation. With that notice, the
special meeting of the Corporation can be held on November 17 in conjunction with the
City Council meeting.
FISCAL IMPACT
None by this action. The VPCATV operation has been funded by the City for many
years, and with the restructuring the function would continue to be funded by the City.
RECOMMENDATIONS
It is recommended that the City Council authorize the City Manager to initiate the
restructuring of VPCATV as outlined in the transition plan, and call a special meeting of
the VPCATV Corporation in order to dissolve the corporation.
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City of Villa Park
17855 Santiago Boulevard, Villa Park, Caqfornia 92861-4187
(714) 998-1500 • Fax: (714) 998-1508
www. villaparic org
MEMORANDUM
TO:
City Council and VPTV Board of Directors
FROM:
Lori Sassoon, City Manager
SUBJECT:
Draft VPTV Transition Plan
DATE:
August 31, 2009
COPIES:
City Attorney
On August 25, the City Council directed staff to move ahead and develop plans for the potential
restructuring of VPTV. Following up on that direction, staff is submitting the following
documents for your review and discussion at the annual meeting of the Villa Park Community
Access Television Corporation on September 2:
Draft Transition Plan
The attached Draft Transition Plan has been prepared outlining the various aspects of the
transition. There may be other issues that need to be addressed as part of this transition, and I
would ask the Board of Directors to please discuss those with us at the meeting.
In summary, the Transition Plan seeks to smooth the transition and control costs by narrowing
the scope of City-funded production work to Council and Town Hall meetings. We would likely
outsource this work. Engineering/programming operations (such as scheduling playback and
bulletin board maintenance) would also be outsourced either through a small consulting contract
or through part-time staff We are in the process of identif~,ing potential providers of these
services. Longer term, we would use the restricted PEG funds, which must be used for capital
equipment needs, to address those needs in both the Council Chambers and the engineering
room.
The new Cable TV Advisory Commission would be established by ordinance to advise the City
Council on cable TV issues. The Council and Board should discuss the potential composition of
this Commission; I would suggest that it be a five-member Commission, with each Council
Member appointing a Commissioner. However, there are many different ways it could be
structured.
At the City Council meeting on August 25, VPTV Board President Ten Brooks Elmendorf noted
several legal issues that were raised by a local resident and attorney. City Attorney Todd Litfin is
reviewing those issues, along with others, and will be providing a report to the City Council and
Board at the Annual Meeting.
JIM RHEINS, Mayor BILL MAC ALONEY, Mayor Pro Tern
DEBORAh PAULY, Councilwoman • BRAD REESE, Councilman W. RICHARD ULMER, Councilman
VPTV Restructuring Transition Plan
Page 2
A draft timeline for the transition is also included for your review. This timeline will need to be
adjusted based on input from the City Attorney, however it provides a starting point for our
efforts.
Please note again that staffs intention in encouraging this effort is to improve upon the
successful volunteer efforts that we have had to date. I have repeatedly stated, will state again,
that all the volunteer Board Members currently involved in VPTV would be valued as part of this
new, restructured VPTV. They have both technical expertise and years of experience to bring
that would be so beneficial going forward. We will also continue to provide studio space to the
VPHS media program, and to air programming that is produced by those students.
Budget Comparison and Draft Budget for City Operations
If the restructuring effort moves forward, the City Council will nccd to establish a budget for this
work. A draft budget for the remainder of the fiscal year is also attached. That draft assumes a
start date of December 1, 2009.
As you are aware, the VPTV effort is currently funded by the City’s General Fund; the draft
budget represents a shift of those City funds back from the corporation to the City’s regular
budget.
For comparison purposes, also attached is a spreadsheet comparing the VPTV Corporation’s
actual expenditures for FY 08 09 and the proposed budget for City operations. You will note
that they are similar, with the City budget achieving some modest savings. It will be staffs goal
to reduce costs even fUrther.
Next Steps
We look forward to discussing this Transition Plan with the City Council and the Board. At the
Annual Meeting we can refine and revise this transition plan as needed. No formal action is
needed at this meeting regarding the restructuring. The draft timeline suggests the September 22
City Council meeting as the date for the City Council to make its decision regarding the
restructuring, if the Council desires.
In the meantime, if you have any questions please feel free to contact me.
Draft VPTV Budget for City Operations December 1 through June 30, 2010
-
Revenues:
Estimated transfer of operating fund balance from VPCATV
Estimated transfer of PEG funds (restricted to capital)
Subtotal revenues
Expenditures:
Supplies
Maintenance/repairs
Contract services
Part-time salaries
Subtotal expenditures
$
$
$
5,000
45846
50,846
$
$
$
3,000
4,000
10,000
$
2,000
19,000
$
Notes:
Operating transfer is estimated from starting balance of $15,036 on 8/1/09 (latest Treasurer’s report), and expenditures by the Corp averaging $2500/mo through November30
Transfer of PEG funds assumes Treasurer’s estimate of PEG revenues for last 2 years
Draft 9/17/2009
Cay Manager’s Office
Draft VPTV Budget for City Operations Comparison to Current VPCATV Budget
-
VPTV City Operating budget
(annualized)
VPTV Corp 2008/09 Actuals
Revenues:
Franchise fees support
PEG (restricted to capital)
Exepnditures:
Technical Consultant
Video Assistants
Telephone
Supplies
Advertising
Maintenance/repairs
Postage/stationery
Legal/accounting
DVD blanks
Meeting expenses
Equipment rental
Other expenses
Capital equipmenr
Contract services
Part-time salaries
Total expenditures
$
32300 $
7200 $
$
25,260
3,450
329
3,009
100
568
65
113
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
32300
7,200
-
3000
$
$
$
$
$
180 $
-
4,000
-
-
-
$
$
$
$
-
N/A
N/A $
20,000
4,000
$
31,000
33,074
Notes:
VPTV Corp actuals FY 08/09 as provided by VPTV Board. Numbers are rounded to nearest dollar
Capital equipment budget to be determined following analysis of equipment needs.
9/17/2009
City Manager~s Office
VPTV Transition Plan
Updated September J 6, 2009
City Manager ~ Office
Task 1: Discuss transition with the VPCATV Board of Directors; seek to preserve
volunteer involvement.
• Staff recommends a new Cable TV Advisory Board, established by ordinance
• Volunteers could also continue with public access production work, production
training, other areas of interest by volunteers. All volunteers are encouraged to
continue serving
Task 2: Evaluate and address legal issues.
• City Attorney will provide analysis for City Council and Board
Task 3: Contract for taping of City Council, Town Hall meetings and basic channel
operations during initial transition
• Focus will be pared down to production of government meetings only; other
programming will be provided/produced by volunteers and or public access
producers
• City staff is identifying potential vendors. Estimated cost of $600- $1000 per
meeting ($10,000 $16,000 per year)
• Work with Technical Consultant to transition engineering, bulletin board
functions to City staff and/or new consultant. Staff will identify potential
vendors, and or partnerships with nearby cities or colleges for these services.
(Note: Carl Odium has indicated he will not be interested in staying on with City
after the transition.)
• City staff will coordinate public access equipment check-out
-
Task 4: Transition assets of the Corporation to City administration
• Obtain inventory of equipment from VPCATV Technical Consultant
• Transition corporation bank accounts to City
• Establish City budget for operations, and a new fund for PEG revenues.
Task 5: Coordinate with VPHS media studies program regarding transition issues
• Continue to give VPHS use of the “studio” back room by the HS program during
the transition. (Note City would not have staff to assist w the HS production
work; Carl has been involved in the past.)
• Student shows will still be submitted by VPHS for programming on Channel 3
• Coordinate w Dr. Bartrom to ask students to produce special programming
regarding city events (Boat Parade, Annual Picnic, etc.)
• Look for other ways to involve and support VPHS media students
Task 6: Evaluate Council Chamber and production facilities; make facilities
improvements to address technical issues
• Develop RFP for assessment of equipment/facilities and recommended
improvements
• PEG capital funds are available for this purpose. Improvements may need to be
phased over time
Potential Transition Timeline:
September 2: Meeting with Council, Board to discuss draft transition plan
September 3 22:
Invite community feedback on the VPTV Transition Plan via e
Net, website postings
—
September 22: City Council meeting; City Council considers restructuring of VPTV. If
Council approves restructuring, motion is made to call a special meeting of the
Corporation, in order to dissolve the Corporation. Per Article VII, Section 3(b), notice is
served to an Officer of the corporation, then the meeting must be held 35-90 days of
receipt of that notice from the Members.
November 17: City Council meeting; acting as the Members of the VPCATV
Corporation, City Council takes action to dissolve the corporation. As City Council,
action is taken to establish the budget for VPTV operations.
December XX:
Corporation is formally dissolved; City assumes assets of the
Corporation arid VPTV operations.