LATV – Dissolution might actually lead to a good thing

It might be a local tragedy.

Then again it might actually be a golden opportunity.

The decision last Monday to dissolve the LATV-3 non-profit corporation followed a five-month controversy that began …. Blah blah bla yada yada yada…Zzzzzzzzzzzzzz (yawn!)….

C’mon, Larry, cut to the chase.

Will LATV even continue to be on the air? And more importantly (to our readers), will it continue to broadcast Los Al sporting events?

Answer: Yes, LATV will continue to be on the air… at least, for awhile.

Yes, they will try to continue broadcasting local shows, including sports, but the City Council’s actions have probably tripled if not quadrupled the actual costs of covering Los Al High School sports. They have probably also increased the contribution made by Los Al High booster clubs from the current $400 a game to about $2500 a game.

How did we get to this situation? I’m not going to bore you with all the details (I’ll only bore you with some), but here is how I see it. (And maybe even I’ll understand it when I’m done.)

1. The former LATV Board had become dysfunctional. Some members were dedicated and knowledgeable and had set up a terrific LATV studio facility which from a technical standpoint, operated very efficiently. They even saved up well over $100,000 for needed capital improvements and upgrades. But the LATV Board was increasingly plagued with a sense of entitlement by some board members and “unreasonable demands” (per other board members) on the time of station manger Kirk Stephens for board members’ own shows. This ultimately ensnarled it in the politics of the city council itself. Whatever the reasons, over the last three years, LATV’s attempts to develop new programming and forge a productive relationship with the high school – an absolute necessity to meet their manpower problems which caused much of their lack of new programming – met with little success.

2. The IRS lien/fine flap was in reality, a minor issue and an over-reaction by Los Al city officials and staff which probably cost them thousands of dollars in fees and amortized staff time. LATV had previously filed late returns. (The corporation didn’t officially ’t file their 1995, 1996 and 1997 reports until 1999, shortly after an IRS agent showed up at the door of city hall, saying that LATV owed bigtime back taxes and was being fined $25,000. (In that case, former city employees told us the city had improperly filed the original incorporation papers.) However, a couple phone calls and a make nice letter quickly resolved the issue. This is similar. Yes, it’s a serious matter, but a couple phone calls to former city employees, and some local CPAs could have saved the city thousands of dollars in legal fees and the cost for an audit (which showed no financial irregularities), and probably far more amortized dollars in city staff and council time spent on the non-issue. Yes, ultimately, the LATV Board was legally responsible, but the city had always helped prepare the taxes and had control of the corporation books. Both were responsible – and both are at fault for not admitting it.

3. Some members of the LATV Board acted in a childish, and hysterical manner. While justifiably hurt by the City Council’s decision to remove them, the over-the-top reaction by some LATV board members, unfortunately made much of the public tune out. Subsequent remarks and behavior then made the issue personal, and pretty much doomed any chances of a productive resolution.

4. Los Al city staff did not win any public relations awards by (perhaps unwittingly) seeming to act as a censor.

Stories conflict here, but all versions mesh on the fact that it all begins with the variety show hosted in September by former board member Allan Katz. On the show were 1) former board members discussing the LATV situation, presumably not too kindly about the city council; and 2) a comedian who allegedly made some suspect (by one report, “raunchy”) jokes. City council members say they received some complaints about “inappropriate” material during the early evening. (Whether it was the jokes or the comments about the city council members that were “inappropriate” isn’t clear.) It so happens that the computer server and program to operate the TV station playback is located in city hall (not the LATV offices, because they don’t get cable there). So, apparently not knowing how to pull a single hour program out of the computer file rotation, Los Al city staff temporarily solved the problem by just pulling the plug on the entire station for a few days. I’m sure I have part of this screwed up, but the bottom line is the timing made it seem like the plug was pulled for commentary by Katz about the board’s removal.

5. All the above obscured the only real important issue – that LATV’s funding was being cut by almost 70% and LATV was unprepared. Time-Warner has been operating in Los Alamitos without a contract for 10 years. Nonetheless, they were still giving LATV a sweetheart deal re: funding (among the best in the country – thanks in great part to the purchasing power of Rossmoor (which brings in nearly a million dollars a year more than Los Al — although Los Al officials may be reluctant to admit it). But new state laws would allow telephone/cable companies to make franchise deals directly with the state (limiting cities to a 1% user fee). Los Al city officials began negotiating in summer of 2005 a cable franchise deal with Verizon. Even though any deal with Verizon or any potential cable franchisee (including Time-Warner) would cause a major reduction in LATV funding, LATV Board members say that at no time during the 16 months of negotiations did city officials notify the LATV Board of the negotiations. (While this may be true, the upcoming changes were well publicized, in fact with some alarm in the “cable/public access community.”). But after the city approved its Verizon deal on September 18 (calling for a $1 fee – approximately 2%) and Time-Warner soon demanded a “level playing field”with Verizon — which basically reduces its public access funding by at least $80,000, almost 2/3 of the LATV budget—the LATV Board had a financial crisis on its hands and no specific fundraising plan or options in place.

6. The LATV controversy probably caused Los Al mayor Fred Freeman to lose his city council seat. Justified or not, many Los Al voters (at least enough to tilt the election) felt that Freeman, and Councilmembers Ken Parker and Catherine Driscoll were the forces behind the whole hubbub. While Parker and Driscoll were not up for re-election, Freeman was. So he bore the wrath of it on election day, and ended up losing his seat by about 50 votes. The two highest vote-getters in the November election were Dean Grose and Troy Edgar, the two council members who voted to preserve the LATV Corporation.

7. The vote to dissolve the LATV Corporation was based on a staff report that was fair and thorough about legal and financial matters, but ill-informed about production realities.

This was almost comical at the Jan. 22 meeting when council would ask staff a question about production or technical matters, and city staff, understandably not experts in this area, would make a stab at an answer, then turn around and seek confirmation or amplification from the very people they were trying to displace. What I found quite unfair were the Councilmember’s continual references that LATV produced only three original shows for $100,000, which shows an unfamiliarity with the basic production process of conception, preparation, set-up, production (actual recording), editing and transferring, etc., not to mention all the time lost on phone interruptions with your spouse after you forgot their birthday. Although it may look like 4-5 hours of recording, a single Los Al High football game requires 2-3 days of work. Factor in the amortized time and resources spent on the broadcasts of at least 25 council meetings, all the broadcasts of LAHS football, basketball and other sports, LAUSD Board meetings, July 4th at the Base, Los Al 5K/10K Race, and Band in the Park shows… together, you’re talking about an amortized cost of my guess is $55-$60,000. Required maintenance and administration (not to mention making video dubs for local parents seeking video in their college scholarship hunts) probably ate up another $10-15,000. So basically it would be more accurate to say LATV produced only three original shows for $25,000 which is not great for public access but not terrible either. Also you must factor in that LATV took on the burden of shooting most of the logistically complicated shows in this area and then shipped them to the Seal Beach cable station, who then shared much of their programs with us.

8. Nobody intended it, but there will probably be exponential increases in the cost to broadcast games and programs. The Los Al High booster clubs pay $400 to broadcast a single game, but the actual cost is around $2000-2500 (with LATV subsidizing about 80% of the cost). If LATV cuts back to a part-time station manager (as per their plan), most likely a qualified station manager with all the necessary skills, could not afford to work at LATV, or at least stay very long. To broadcast LAHS games the station would have to hire an outside production company, and this past fall they charged a reported $4,000 per game – or about $40,000 per year. Even with a $15,000 grant (as Councilmember Driscoll proposed) the football boosters would now have to raise $25,000 – an approximate 600% increase in costs.

9. The Los Al council’s deliberations to dissolve the corporation was a fascinating but totally pre-determined drama that had been choreographed by the council majority and staff at a much earlier date. If it wasn’t, then why did the staff’s attachment #4 “Notice Of Commencement Of Voluntary Proceedings To Wind Up And Dissolve” state that “proceedings for the winding up of the Corporation commenced on January 8, 2007 on which date the Board of Directors of the Corporation elected and consented to the winding up and dissolution of the Corporation.” A minor detail, but one I think would irritate those who thought they had a fair chance to fight for the station.

10. The plan to dissolve the corporation will be passionately protested by former board members, and legal challenges and financial document discrepancies could keep LATV’s assets tied up in bureaucratic limbo for a long time.

Hell hath no fury like a passionate public volunteer scorned. Even some of the calmer former board members feel that despite an audit proving them good stewards of the LATV finances, that their personal reputations have been been unfairly tainted, and they have been publicly humiliated purely for city council politics. Rightly or wrongly, some even feel this was a council ploy to grab significant public access funds for other city projects (which would be illegal). They feel they have the documentation to prove enough to the attorney general to halt the city’s fast-track plan for dissolution.

So what does this all mean?

Actually, I think this whole mess can be an opportunity for an even better community television station.

Faced with changes in funding, and recurring manpower shortage issues, LATV simply had to come up with a new business model to survive.

Here is what must happen:

Recognize that LATV-3 hasn’t scratched the surface of its potential as a community asset. If you want to make people aware of an event, sell an idea, communicate concerns, raise significant monies for activities – when done properly, nothing comes close to television.

Let Los Al form its commission. I personally think it’s cumbersome (the Brown Act will prevent three commission members from even having a burger at Mr. B’s and even discussing LATV business between karaoke numbers), restrictive (Rossmoor residents can’t serve on the commission), and most studies have shown that a non-profit corporation is the most effective method for public access stations to raise funding …

but all this can be dealt with.

Supporters of the old corporation must quit dwelling on what was; and focus on what can be. Campaigns to recall Los Al City Council members are counter-productive and further polarize the community (at least that part which even cares). Allan Katz has tremendous passion and energy. Channel it into productive efforts which will 1) raise the funds necessary to operate LATV; and 2) result in a good show. In other words, quit telling me what we can’t do and let’s figure out how to do what needs to be done.

Rossmoor must get into the game as an equal partner. Currently, Rossmoor pays nothing to LATV. (This goes back to when local cable started circa 1983 and the RCSD didn’t even exist.) Rossmoor’s franchise fees (over $100,000 annually) go to the county, although Time-Warner throws LATV a $13,000 annual bone to air RCSD meetings (but with the LATV dissolution, T-W is no longer required to do that). The RCSD should begin negotiations with Orange County to funnel more of Time-Warner’s franchise fees to Rossmoor. (If Supervisor John Moorlach wants us to even ponder being a “super city”or in Los Al’s “sphere of influence,” make them pony up the cable money so we can broadcast public forums on the topics and make people aware of the options.)

Los Al and Rossmoor should combine as equal partners in a new non-profit corporation to operate LA/Rossmoor TV Channel 3. The new corporation would have three representatives from both Los Al and Rossmoor, and one from the Los Al School District.

Los Al would contribute it’s approximate $25,000 franchise fee money, and Rossmoor will work to make their arrangement with OC to be at least equal to Los Al. Los Al will also lease the LATV van and other necessary equipment (much in definite need of upgrading)to the station for a nominal fee.

The new corporation should operate TWO local mixed (PE&G) public access channels, which current contracts allow.

Why?

  1. Better government coverage. If LATV wants to fully tap into Rossmoor, they must do a better job of covering Rossmoor governing events – and even RHA meetings, etc. But these meetings are usually in conflict with LAUSD or sometimes Los Al city council meetings. Two channels would allow you to broadcast both RCSD and LAUSD Board meetings simultaneously…live. You could also broadcast both Los Al and Seal Beach City Council meetings simultaneously … live.. Because what happens with the (Old Ranch) Target center and Rossmoor Center , Seal Beach meetings are often of interest to Rossmoor and Los Alamitos residents.
  2. More public access programming options. (One channel airs an LAHS dance performance or a childrens theater play from the Liberty Theater on the base while the other airs an LAHS football game.)
  3. Most importantly, it maximizes marketing power. While there are legalities that need to be addressed, public access stations can raise revenue through advertising/sponsorships that resemble regular commercial advertising. With two stations local sponsors/advertisers get a better bang for their buck because their ads are carried on two stations instead of one. Plus, any local fund-raising telethon could now be on two stations instead of one.) Rossmoor/LATV advertising and/or sponsorships could be sold at a comparable cost per thousand (CPM) to other local media.
  4. The only significant additional cost to operate a second channel is a one-time only capital expenditure for a playback server.
  5. What channel number? Obviously, one would be Channel 3 but I won’t stress over the other channel. A low channel number is preferred, but not crucial. LATV is on Channel 3 now and virtually nobody watches it. The Golf Channel is on Chanel 78 (in these parts) and probably draws 10 times the audience. The first concern is content. Provide it and viewers will come.
  6. Explore designating the new second channel as leased access. Generally the two stations would share public access programming, and (in case of conflicts), Channel A would be a primary Los Al/LAUSD channel , and Channel B would have a Rossmoor-Seal Beach focus. During late night hours (midnight to 6am) Channel A would carry community announcements and programming schedules, but Channel B could be used to raise money by leasing air time for an infomercial, a locally produced program, or you could even sell air time to film students at LB State or other local colleges and have a mini-film festival. The Bottom line is that every minute of air time is a potential revenue stream. If you leased the six hours from midnight to six am air for even just $100 total per night, that’s an additional $32,000 to the operating budget. The local demographics probably make it worth much more than that. Let’s exploit those assets!!
  7. Host two cable-thons in May with the goal of raising all the necessary funds for this year’s budget ($125,000). There are two significant local events in May. Rossmoor’s 50th anniversary celebration is on May 5. It’s an all-day celebration at Rush Park. Let’s be telecasting live throughout the day, interspersing coverage of events, and pre-edited segments with requests/appeals for funding.

On the following weekend, the base pool is the site of the 2007 NCAA women’s water polo championships. Let’s do another cablethon. LATV should make a deal with CSTV (which currently does not have coverage on Time-Warner) to carry the actual games. LATV then provides local coverage between games with coverage in the hospitality tents (giving coverage and exposure to local personalities and restaurants who quite possibly could be enduced to provide, for example a $10 gift certificate to anybody who donates to the new station over the next hour.).

Raise money via memberships with perks — and the more the donation, the more perks. (free t-shirt, passes to Los Al events, gift certificates to local restaurants….

The new LA/Rossmoor TV Board MUST arrange with Los Al High to place a studio facility on that campus (as it was many years ago). The studio can be used as a classroom for the video and related graphics arts courses (be it in broadcasting, corporate telecommunications, or the even faster growing broadband internet video opportunities.) In effect, the district can use LA/Rossmoor TV to set up an AP Video class. This on-campus location will help Los Al High students get valuable training and marketable in-the-field experience, and benefit LATV by providing trained manpower for local public access TV programs. All this will significantly reduce the costs of producing high school sports and other local programs, and make it easier to cover Los Al High plays, or dance and choral performances. LAHS students currently create a video magazine that is shown to classes. This should be aired on the new station (and perhaps with some LATV help it could be made into a daily feature – like it is at Mater Dei). All this creates greater awareness of LAHS activities, can increase attendance at these events, and can make parents and the community more likely to help fund high school activities. PLUS, groups like dance or whoever could share in any cable advertising sponsors/money – even from sponsors they didn’t arrange or line up.

The new corporation could make its programming available on a broadband web site. Because of DirectTV, or other reasons, about 35% of the local homes do not subscribe to local cable and thus can’t see LATV. Streaming Video on a broadband station would allow these viewers to watch council meetings, plays, sporting events, high school events, etc., and again maximizes marketing value. This could also be a small revenue stream in itself. Many college athletics are providing internet telecasts of their games for a slight fee. Why not see if we can make broadcasts of Los Al High football available on the web with fees going to offset costs. We might pick up 1,000 football fanatics around all Southern California (not to mention some alumni who reside across the country) who may want to watch a Los Al game.

 

Upgrade the van and, during down time, lease it out to neighboring prices for events.

 

Under the right circumstances, it might be possible to make the LATV van a revenue-producing asset.

 

Leasing out the van and LATV crew (during local down time) to other communities could bring in some additional revenue for LATV coffers but also provides additional revenue for station employees and even the volunteers, which provides stability and loyalty.

 

I have many more suggestions on how this station can be integrated to help raise awareness and funding for other entities (We Care, Precious Life, the Youth center) while at the same time raising revenue to support itself.

 

I’m sure there are a thousand even better suggestions than I have proposed.

 

The one bottom line I am convinced of for anything positive to happen is… to make this work most efficiently, the station must retain a full-time employee and it needs a functioning home.

 

And all parties – former board members and city council members, and all the many supporters on both sides – they – we — must get over what has happened and focus on what can be.

 

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