SR - AGR-5689.A - LOCAL CABLE PROGRAMMINGAGENDA ITEM
�� March 8, 2016
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TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto,
City Manager
FROM: Irma Hernandez
Deputy City Manager
ReviewedNerifie By:
City Manager
Finance Director
To Be Presented By:
Irma Hernandez, Deputy
City Manager
X Cons Calendar
City Mgr Rpts
Council Reports
Legal Affairs
Boards /Crates _
Public Hrgs
Admin Reports
Plan /Environ
1. SUBJECT
Agreement with Chapman University for Local Cable Programming.
2. SUMMARY
This agreement provides the continued public /private partnership between the City and Chapman
University providing local television origination programs to the community through March 31,
2018.
3. RECOMMENDED ACTION /MOTION
1. Authorize the Mayor and City Clerk to execute this Agreement on behalf of the City;
2. Authorize the appropriation of $40,000.00 from the (130) PEG unreserved fund balance to
Account 130.0000.51700.20067 Contractual Services to cover the FY 15 -16 costs
associated with the Chapman Agreement (the remaining $280,000 will be budgeted in the
FY 16 -17 and FY 17 -18 budget process) more discussion in funding section.
4. FISCAL IMPACT
Upon appropriation, funds will be available to cover the cost of the agreement as follows
130.000.51700.20067 Contractual Services $40,000.
1 5. STRATEGIC PLAN
3e. Develop and strengthen collaborative partnerships to enhance and promote quality of life
programs, projects, and services.
�M�Printed on Recycled Paper
ITEM # '3-1 1 3/8/16
G. GENERAL PLAN IMPLEMENTATION
Land Use Element
Goal 8.0: 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
Historically, cable service providers had to obtain a Franchise Agreement from each local agency
in which they intend to provide service. The City had a local cable franchise with Time Warner
and Cox Communications for many years until the California's Digital Infrastructure Competition
Act ( DIVCA) became effective January 1, 2007. DIVCA authorized cable television operators to
obtain a State Franchise. By 2010, Time Warner, Cox and AT &T had submitted their application
for a State Franchise for areas covered by City of Orange franchise agreements. Therefore, there
was no longer a local franchise that required cable operators to provide local programming and
local access channels. However, DIVCA requires video operators to fund PEG equipment.
Staff worked with Chapman University to establish a unique cable programming partnership that
has been in effect since January 1, 2011. This has proven to be a successful partnership between
the City and Chapman University for over five 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 Channel 3. 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.
Channel 3 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, public service announcements, and emergency information. Chapman
Staff played a vital part of the transition team that worked to successfully implement the complete
upgrade of the City television production backbone system. Chapman took the lead role to develop
the operating manuals for trouble shooting any problems during the training and operations of the
new equipment. During this calendar year, City staff will begin work on Phase II of this project
which will change the front of the house audio /visual components in the Council Chambers.
Chapman staff will provide their technical assistance on this project to ensure the broadcast quality
of the City Council and Planning Commission meetings. The Council Chambers is the City's
"production studio" and all the equipment and systems supporting the video and audio recordings
of the Council meetings have exceeded their intended lifecycle. The Council Chamber upgrades
will improve the quality and reliability of Channel 3 productions for community viewing.
Channel 6 Update
Chapman University has managed and operated Channel 6 which currently airs 1,800 hours of
locally originated programming with an impressive 99.99% on -air stability, on a 24/7 schedule.
Chapman has expanded programming with 30+ hours of live programing on Channel 6 every year
including local sports, election night coverage and Chapman News (Orange County's Only LIVE
Newscast). Chapman also produces and airs a wide variety of community events including Tree
Lighting, 3rd of July celebration, Orange International Street fair, Mayor's Prayer breakfast,
Rotary Car Show, and many others. Chapman is working on a new online distribution solution
through YouTube for residents of orange to enjoy on demand programming.
Other Channel 6 improvements include:
• Adding Channel 6 to AT &T U -Verse for Orange residents has expanded our channel's
reach to the greater Los Angeles area.
• Improved channel quality to Time Warner customers by transitioning to digital
transmission system.
• Refreshed channel programing with new shows and removed outdated content from the
90s.
• Redesigned Channel's Origination System (aka "The Head End ") to state of the art
playback server.
Major Equipment Purchased to Support City productions:
• New "Head End" for Channel 6 with playback server, video router, QC monitors, fiber
transmission,, and network upgrades.
• First Phase of Mobile Multi - camera Production System in custom built road cases: HDSDI
Video Switcher, 3 Camera "Build -up" kits, wireless video transmission system, slow -
motion video replay server, live character graphic system, intercom master station,
monitors, and accessories
Funding
The City's funding commitment to this agreement is in the form of the City of Orange providing
Chapman University a quarterly PEG equipment grant. PEG access funds are collected by the City
from the cable companies and their use is restricted for equipment only, per State legislation. The
City receives approximately $280,000 annually in PEG funds to cover this agreement. The total
equipment grant for this two -year agreement period is $320,000 paid on a quarterly basis. In order
to support this agreement, Chapman provides approximately $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, a
Broadcasting Professor providing oversight of students, student production, and internship salaries
for students.
The following are the key terms in this Agreement:
• Term of Agreement will be April 1, 2016 — March 31, 2018, with appropriate termination
language.
• A $35,000 per quarter grant will be provided to Chapman and will be used for the purchase
and maintenance of production broadcast equipment and for capital acquisition, as
stipulated in State law. The grant is funded using PEG access fees which have very limited
uses.
• Chapman will produce an Annual Report by September 1S of each year providing
documentation for the equipment purchased through the equipment grant.
• Chapman and the City must mutually agree on the purchase of any capital over $100,000.
Staff is recommending approval of this two -year Agreement as it provides for the continuation of
local programming on both Channel 3 and Channel 6.
8. ATTACHMENTS
Attachment A - Agreement For Production of Local Cable Programming