DATE: March 12, 2025
TO: Honorable Mayor and City Councilmembers
FROM: City Manager's Office
TITLE: SUPPLEMENTAL FUNDING REQUEST FROM KOCT, IN THE AMOUNT OF $75,000, TO SUPPORT CONTINUED COMMUNITY TELEVISION PROGRAMMING OPERATIONS
RECOMMENDATION
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Staff recommends that the City Council approve a payment to KOCT Television, in the amount of $75,000, to support continued community television programming operations; appropriate $75,000 from General Fund Unassigned Reserves; and authorize the City Manager to execute the payment.
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BACKGROUND AND ANALYSIS
On February 15, 2017, the City Council approved a five-year agreement with KOCT which designated KOCT as the access management organization responsible for public, educational and government (PEG) cable television activities for the City (Attachment 2). That agreement had a five-year extension option, which was executed in 2022 (Attachment 3). The current agreement’s termination date is on June 30, 2027.
This agreement grants KOCT access to and use of the public access and educational channels in Oceanside. KOCT, through the contract, is responsible for production and programming in support of government access and educational programs. This includes cablecasting coverage of City Council meetings and workshops, special events, public service announcements, and other programs. At termination or non-renewal of the contract, all equipment and facilities acquired with funds pursuant to the agreement become the property of the City.
Through the agreement with KOCT, the City of Oceanside provides 93 percent of the City’s PEG funding from cable franchisees to KOCT. The City maintains 7 percent of that funding to maintain and periodically upgrade necessary Council Chamber technology equipment such as cameras, lighting, sound, and automated voting system.
As cable use declines through citizens “cable cutting” and opting for streaming media content, the PEG funding also declines, a trend noted for at least the last decade. Per the contract, KOCT is encouraged to receive supplemental funds through fundraising, grants, and contracts with other public agencies to support its operation.
The PEG funding “passed through” to KOCT from the cable franchisees for the past five years are as follows:
|
2020 |
2021 |
2022 |
2023 |
2024 |
|
$ 405,888 |
$ 391,437 |
$ 355,881 |
$ 327,400 |
$ 296,356 |
Additionally, prior grants supplied to KOCT were $49,000 from the City’s Chamber Technology Maintenance Fund on 1/16/2024 and $75,000 from the City’s General Fund on 7/2/2024. The Chambers equipment fund currently has a balance of $0.
As noted in the attached letter of request, while the amount of PEG funding continues to decline, KOCT has taken steps to increase the amount of external revenue it receives and anticipates a notable increase in revenue between FY 2024 and FY 2025. Nonetheless, the request identifies significant budgetary challenges in the immediate future which has prompted the current request.
FISCAL IMPACT
As noted above, the City’s current PEG fund balance is insufficient to cover the current $75,000 funding request. Therefore, staff recommends appropriating funds from General Fund unassigned reserves to the Non Departmental Account. The current General Fund unassigned reserves balance is $2.4 million; therefore, sufficient funds are available to cover this request.
|
Description |
Amount |
Account Number |
Funding Source |
Available Balance |
|
KOCT Grant |
$75,000 |
170174101.5390 Non-Dept Expenses |
101.3100.0001 General Fund Unassigned Reserve |
$2.4M |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
Does not apply.
end
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. KOCT Agreement
3. KOCT Contract Extension
4. KOCT Request Letter