SR - AGR-5689.3 - THIRD AMENDMENT LOCAL CABLE PROGRAMMING G����°���� AGENDA ITEM
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Reviewed/Verifed B :
TO: Honorable Mayor and
Members of the City Council City Manager
Finance Direct r
THRU: John W. Sibley, To Be Presented By:
'C�anager Irma Hernande ,De u Ci Mana er
X Cons Calendar City Mgr Rpts
FROM: Irma Hernand —
Deputy City Manager Council Reports Legal Affairs
Boards/Cmtes Public Hrgs
Admin Reports Plan/Environ
1. SUBJECT
Third Amendment to Agreement No. 5689 with Chapman University for Local Cable
Programming.
2. SUMMARY
This Amendment extends the original Agreement which was executed on December 28, 2010,
with Chapman University to March 31, 2016, to provide local origination programs to the
community.
3. RECOMMENDED ACTION/MOTION
1. Authorize the Mayor and City Clerk to execute the Third Amendment to Agreement No.
5689 on behalf of the City;
2. Appropriate $25,000.00 from Account 130.0000.41160.20067 (PEG Program Revenues)to
Account 130.0000.51700.20067 (Contractual Services for PEG Program)to cover the FY
13-14 costs associated with the Chapman Agreement. The remainder$175,000 will be
budgeted in the FY 14-15 and FY 15-16 budget process.
4. FISCAL IMPACT
Anticipated revenues from Public, Education, and Government (PEG) access fees will be more
than sufficient to cover the appropriation associated with the Chapman University Agreement.
5. STRATEGIC PLAN
3e. Develop and strengthen collaborative partnerships to enhance and promote quality of life
programs, projects, and services.
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ITEM # ��° 3/11/14
6. GENERAL PLAN IMPLEMENTATION
Land Use Element
Goa18.0: Encourage active involvement of residents, businesses, and agencies in the planning and
decision making process.
Policy 8.1: Continue to provide opportunities for public education and involvement in land use
planning decisions through public hearings, community meetings, study sessions, electronic media,
and any other appropriate and available means.
7. DISCUSSION and BACKGROUND
The original Agreement has been in effect since January 1, 201 l, and has proven to be a successful
partnership between the City and Chapman University over the last two and one half years. Over
this time period, the partnership has provided local origination programs to the community, as well
as afforded Chapman broadcast students the opportunity to operate a local channel. Chapman
Students via this agreement on an annual basis, produce in excess of 55 local origination programs
for the City's Local Access Channel 6 and Government Access Channel3. The City and Chapman
through this unique private/public partnership keep both the Government Access Channel (3) and
Local Origination Channel (6) operational as outlined in the Cable State Franchise regulations.
Channel3 Update
This agreement provides staff support for the on-going operations of the City-run and operated
Government Access Channel. Chapman is responsible for the video production of all City Council
and Planning Commission meetings that are aired live on the Time Warner System, AT&T system
and through the City's Website. The remainder of the programming on Channel 3 is the
community bulletin board with information about upcoming events, public service
announcements, and emergency information. Chapman is requesting that during the two-year term
of this agreement, the City update the failing production equipment within City Hall which is
negatively impacting the quality of the meetings. Staff is currently working on the final phase of
this project and will have the new equipment in place prior to the end of this two-year agreement.
Channel6 Update
Chapman manages and operates Channel 6 which currently airs 1,800 hours of locally originated
programming with an impressive 99.99% on-air stability. Chapman has expanded the
programming on Channel 6, including the airing of four hours of 2012 live election coverage on
Cha.nnel 6, a first in the channel's history. Chapman also produces and airs a wide variety of
community events including tree lighting, 3`a of July celebration, Orange International Street fair,
Mayor's Prayer breakfast, Rotary Car Show and many others. Chapman has now made Channel 6
available online at www.ustream.tv/channel/orange6 to be viewed by others without access to
Time Warner or AT&T. Chapman staff and students continue to look for opportunities to expand
local programming to meet the needs of the community. During the term of this agreement
Chapman and the City will be working on a business and marketing plan to begin branding
"Orange TV"as part of the future station identification.
The original 18-month agreement expired on June 30, 2012. Chapman was granted the First
amendment for a nine-month extension expiring March 2013; and given a second amendment
through March 31, 2014. Chapman is again asking for a third Amendment for a two-year
extension through March 31, 2016. These time extensions have been vital as they have allowed
both the City and Chapman to fine tune staffing, scheduling, production, and programming issues
while maintaining both channels fully operational.
This Third amendment allows the City the time to complete the upgrade and equipment
replacement in the Council Chambers. The Council Chambers is the City's "production studio".
Most of the video equipment and systems supporting the video and audio recordings of the
Council meetings have exceeded their intended lifecycle. Equipment targeted for replacement
includes cameras, camera robotic, video switcher, audio mixer, terminal equipment, and recording
equipment. The City has hired a technical subject matter expert/advisor to evaluate the city's
"production studio" and provide direction on system upgrade designs. Staff anticipates that this
project will be completed by the first quarter of 2015, and the studio will be upgraded to improve
the quality and reliability of Channel3 productions for community viewing.
The funding for this agreement which provides Chapman with an equipment grant comes from the
PEG access funds which are restricted for equipment usage only per State legislation. The total
equipment grant amount for this two-year extension period is $200,000 paid on a quarterly rate of
$25,000 a quarter. To support this agreement, Chapman provides $60,000 annually of in-kind
support to the operation of Channels 3 and 6 in the form of a Station Manager for Channel 6,
Broadcasting Professor oversight of student production, and internship salaries for student
producers. The City's commitment to this agreement is in the form of the PEG equipment grant,
commitment to upgrade the City's "production studio", and limited staff support for the operation
of Channel3. .
The following are the key terms in the Third Amendment to Agreement No. 5689:
• Term of Agreement will be April 1, 2014 — March 31, 2016, with appropriate termination
language.
• A $25,000 per quarter grant will be provided to Chapman and will be used for the purchase
and maintenance of production broadcast equipment as stipulated in State law. The grant is
funded using PEG access fees which have very limited uses.
• All other terms and conditions shall remain in effect and unchanged.
Staff is recommending approval of the two-year extension request as it provides for the
continuation of local programming on both Channel 3 and Channel 6. Chapman understands that
staff will not be in support of any further agreement extensions beyond this two-year period.
Chapman understands and will be working with staff during the term of the agreement to develop
a long-term cable programming agreement for City Council consideration in early 2015, that will
outline the local programining and origination terms and conditions.
8. ATTACHMENTS
Attachment A- Letter from Chapman requesting extension
Attachment B - Third Amendment to Agreement No. 5689
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� �' ` ATTACHMENT A
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CHAPMAN UNIVERSITY
Lawrence and Kristina Dodge College of Film and Media Arts
February 27, 2014
Subject: Proposed Two-year extension of PEG-Channel agreement with the City of Orange
Irma Hernandez,
Deputy City Manager
Dear Irma,
Chapman University is proud of the partnership formed with the City of Orange for the operation of the PEG
Channels in the community. Each year Chapman produces 12 community events for the City in addition to
the direction of 50 meetings within City Hall. Chapman also manages "Channel6" which airs 1,800 hours of
locally originated programming with an impressive 99.99%on-air stability. We are excited to announce that
Channel6 is now available online www.ustream.tv/channel/orange6.
Chapman would like to extend the existing agreement for an additional two years keeping the same terms for
production requirements and equipment grants.Our goal is to get the extension onto the March Consent
Calendar so there is no lapse between agreements.
Additionally, Chapman University requests that the City conduct a survey of how other cities handle PEG
operations including Production of Council Meetings, Channel Operation, and Community-Event Coverage.
As you know, Chapman spends appx. $60,000 annually out of pocket, un-reimbursed, in manpower to
maintain the channels and produce meetings and events.
Finally,we request an update on the Production Phase of the City-Council Chambers. The failing analog
production equipment within City Hall is negatively impacting the quality of the meetings we produce for
Channel3.
From day one the PEG partnership has been a win-win for the City of Orange and Chapman University. We
look forward to continuing it.
Warmest regards,
CHAPh1AN UNIYER51iY
tawrence�ad Kr'rctina C)c�d�r t'+�IrRe
�, �rf iiim x�!Media Ar1f
Professor Peter M.Weitzner/Business Journalist
Director, Broadcast Journalism
Station Manager, Orange Channel 6
ONE UNIVERSITY DRIVE��RANGE,Cnr.�oxN�a 92866�FTV.CHAPMAN.EDU�E-MAIL:FT VINFO@CHAPMAN.EDU•(714)997-6765 FAX(714)997-6700
A�'sR. NO. 5689.3
THIRD AMENDMENT ATTACHMENT B
TO
AGREEMENT FOR PRODUCTION OF LOCAL CABLE PROGRAMMING
This Third Amendment to Agreement for Production of Local Cable Programming (the "Third
Amendment") is made and entered into as of , 2014, by and betwee,n the CITY OF
ORANGE, a municipal corporation (the "City") and CHAPMAN UNIVERSITY, a California non-
profit 501(c)(3) corporation (herein referred to as "Chapman"), with reference to the following:
A. The City and Chapman entered into that certain Agreement for Production of Local
Cable Programming (Agreement No. 5689) dated as of December 28, 2010 (the "Original
Agreement"), which was later amended by that certain First Amendment to Agreement for Production
of Local Cable Programming (Agreement No. 5689.1) dated as of June 12, 2012 (the "First
Amendment"), and that Second Amendment to Agreement for Production of Local Cable
Programming (Agreement No. 5689.2) dated as of March 3, 2013 (the "Second Amendment"), which
are on file in the office of the City Clerk and are incorporated herein by this reference.
B. The City and Chapman desire to further amend the Original Agreement to modify,
amend and supplement certain portions of the Original Agree,ment.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS MUTUALLY
AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:
Section 1. Term. The term of this Agreement shall be extended far an additional twenty-
four(24) month period commencing April 1, 2014 and ending March 31, 2016
Section 2. Grant Payments.
City shall provide Chapman with an additional grant in the amount of$200,000 over the two
year term to be paid in accordance with the following schedule:
June 30, 2014 $25,000 June 30, 2015 $25,000
September 30, 2014 $25,000 September 30; 2015 $25,000
December 31, 2014 $25,000 December 31, 2015 $25,000
March 31, 2015 $25,000 March 31, 2016 $25,000
Section 3. Inte�ration. This Third Amendment, the agreements specifically referred to
herein, and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein
and supersede all negotiations with respect to the subject matter hereof. This Third Amendment
amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the
Original Agreement shall remain in full force and effect. To the extent that there is any conflict or
inconsistency between the terms and provisions of this Third Amendment and the terms and
provisions of the Original Agreement, the terms and provisions of this Third Amendment shall control
and govern the rights and obligations of the parties.
IN WITNESS WHEREOF, the Parties hereto have caused this Third Amendment to be
executed on the dates hereinafter respectively set forth.
ATTEST: CITY OF ORANGE
By: By:
Mary E. Murphy Teresa E. Smith, Mayor
City Clerk
CHAPMAN UNIVERSITY
By:
Harold W. Hewitt, Jr.
Executive Vice President and COO
Approved as to form:
Wayne W. Winthers, City Attorney
2
CITY COLTNCIL MINUTES March 11, 2014
3. CONSENT CALENDAR (Continued)
310 Third Amendment to Agreement with Chapman University for Local Cable
Programming. (A2100.0 Agr-5689.3)
ACTION: 1) Authorized the Mayor and City Clerk to execute the agreement on behalf
of the City; and 2) Appropriated $25,000.00 from Account No. 130.0000.41160.20067
(PEG Program Revenues) to Account No. 130.0000.51700.20067 (Contractual Services
for PEG Program) to cover the FY 2013-14 costs associated with the Chapman
Agreement. The remainder $175,000.00 will be budgeted in the FY 2014-15 and FY
2015-16 budget process.
APPROPRIATIONS
3.11 Appropriation of Donation from the Orange Public Library Foundation (OPLF)
of$9,848.84. (C2500.I)
ACTION: 1) Accepted into the City's revenue budget a $9,848.84 donation into
revenue Account No. 100.2001.48390.19322 (Library Foundation Donations); and
2) Appropriated the donation into the following expenditure accounts:
100.2001.53301.19322 - OPLF (Book Budget) $ 500.00
100.2004.55131.19322 - OPLF (Furniture, Machinery, Equip) $8,143.84
100.2017.51670.19322 - OPLF (Other professional & consulting services) $ 450.00
100.2017.55131.19322 - OPLF (Furniture, Machinery, Equip) $ 755.00
$9,848.84
3.12 Appropriation of Funds received from Santa Ana College for Fire Department
Training. (C2500.H)
ACTION: 1) Accepted into the City's revenue budget a $25,503.08 grant payment
from Rancho Santiago Community College District, into revenue Account No.
100.3023.48210.20174 (Santa Ana College Training FY13-14); and 2) Authorized the
appropriation of $25,503.08 into expenditure Account No. 100.3023.51840.20174
(Santa Ana College Training FY13-14).
BIDS
3.13 Bid No. 134-21; FY 2013-14 Community Development Block Grant (CDBG)
Project — Americans with Disabilities Act (ADA) Wheelchair Access Ramps at
Various Locations. Approval of plans and specifications and request for
authorization to advertise for bids. (54000.5.3.2)
ACTION: Approved plans and specifications and authorized advertising for bids for
the FY 2013-14 CDBG ADA Wheelchair Access Ramps at Various Locations.
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