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Seal Beach Cable Foundation proposes $250,000 capital plan, seeks PEG fee share and a station manager

3148477 · April 29, 2025
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Summary

Seal Beach Cable Communications Foundation asked the City Council to approve phase 1 of a Community Media Access Collaborative (CMAQ) plan that would hire a station manager and modernize studio equipment, proposing initial funding from PEG/franchise fees and a possible conversion to a 501(c)(3).

The Seal Beach Cable Communications Foundation asked the City Council on a night in early May 2025 to approve phase 1 of a Community Media Access Collaborative, or CMAQ, plan that would hire a station manager and invest roughly $250,000 to modernize equipment at SBTV 3.

The request came from Peter Aninos, a Seal Beach Cable Communications Foundation board member, and Jim Quinlan, a volunteer producer and CMAQ advocate. Aninos told the council that the foundation has operated on about $75,000 a year for roughly 40 years and said the city’s 1 percent PEG allocation should be about $115,000 annually under current revenues. “The Cable Foundation has been operating on the same $75,000 a year for 40 years,” Aninos said. “That $75,000 annually would be worth about $220,000 today.”

Why it matters: Foundation leaders told the council that aging equipment, declining cable subscription revenue, and limited staffing threaten SBTV’s ability to produce local programming and support emergency communications. The foundation asked the council to consider using PEG and franchise-fee resources — and to authorize the station-manager position in the city’s budget process — so the station can train volunteers, expand streaming, and pursue outside grants.

Aninos and Quinlan described phase 1 as two linked steps: hire professional leadership (a station manager) and modernize studio equipment to meet current broadcast and streaming standards. Quinlan said the foundation’s estimate for phase 1 capital needs is approximately $250,000, itemized as $85,000 for professional leadership, $229,000 for studio equipment (before tax), $20,000 sales tax, and $12,000 installation (figures presented in the foundation’s prospectus). The group proposed using available PEG fees and franchise fees first, then supplementing with community fundraising or grants.

The presenters cited the Digital Infrastructure and Video Competition Act (DIVCA) — described in their remarks as the state law governing video franchise matters — and told council members they believe SBTV is “grandfathered” to continue using PEG funds for personnel and capital as in the past. Aninos said a separate city account, identified in the presentation as fund 214 and estimated by the presenters to contain roughly $500,000, should be available to support PEG-related capital needs but that the foundation does not know the account’s current status or location in city records.

The foundation outlined several staffing and pay scenarios: retain a part-time PEG manager at roughly $30,000 to $40,000 annually for reduced hours, or hire a full-time manager at about $85,000. Aninos also recommended raising current SBTV hourly wages, citing a target of $30 per hour to remain competitive with surrounding communities where starting rates, he said, can reach $40 per hour or more.

Quinlan described the CMAQ model as a collaborative nonprofit operating structure that would allow access to grants and diversified revenue, including membership fees, studio rentals, podcasting revenue and sponsorships. He said other California cities have used similar models. Quinlan told the council the foundation projects a “very ambitious” annual income figure by year three, but provided that projection as an aspiration rather than an assured outcome.

Council and staff responses were procedural and exploratory. Interim City Manager Gallegos and Director Spindle (city staff) confirmed that hiring a station manager would proceed through the city’s regular budget process; Director Spindle said placeholders related to SBTV had been included in the draft budget and staff was prepared to discuss those items during the budget workshops. Council members praised volunteers and asked questions about audience reach and revenue models, noting the broader decline in traditional cable subscriptions.

The council did not take final action on the CMAQ request at the meeting; presenters asked the council to authorize phase 1 in the fiscal-year budget process and to collaborate on clarifying the distribution of PEG and franchise fees. The foundation said it would work with the city on next steps and on setting up a nonprofit structure if the council approves the capital plan and staffing request.

Details presented to the council included: the foundation’s $75,000 annual operating figure; a cited 1 percent PEG share estimate of about $115,000 per year; an approximate $500,000 reserve identified as “fund 214” (location not specified); a phase 1 capital request of about $250,000; and proposed station-manager salary scenarios of roughly $30,000–$40,000 for part-time and $85,000 for full-time.

Aninos and Quinlan also identified long-time station volunteers and employees by name in their presentation: Zaida Davis, Matt Hoban and Tim Stansbury, and referenced the late or former station manager Robin Fort Linky as the long-serving previous manager. The presenters recommended converting SBTV governance to a 501(c)(3) to access grants and philanthropic support and asked the council to discuss using PEG/franchise fees and fund 214 as initial funding sources.

What’s next: City staff said SBTV budget items will be considered during the budget workshops scheduled in early May; the foundation requested a collaborative review of PEG and franchise-fee accounting and permission to pursue a nonprofit conversion. The council did not vote on the CMAQ capital request at the meeting.

Ending note: Presenters emphasized community training and emergency-communications benefits of a modernized SBTV, and asked the council to consider the proposal as part of the regular budget process rather than as a stand-alone, immediate appropriation.