KPFA Local Station Board Meeting minutes September 17th, 2005:
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APPROVED MINUTES
KPFA Local Station Board Meeting (Public Portion) Saturday, September 17, 2005, at 11:00 AM Freight and Salvage Coffee House 1111 Addison Street, Berkeley, CA. 11:20AM: Meeting called to order: Intros and Announcements: Present for all or part of the meeting: Howard Beeman, Mary Berg, Max Blanchet, Brian Edwards-Tiekert, Riva Enteen, Ted Friedman, Sherry Gendelman, Annie Hallatt, Chandra Hauptman, Mark Hernandez, Sepideh Khosrowjah, Attila Nagy, Eric Park, Richard Phelps, Sarv Randhawa, Willie Ratcliff, Lisa Rothman, Bonnie Simmons, Chair pro tem, Debbie Speer (KFCF), Marnie Tattersall, Joe Wanzala, William Walker, LaVarn Williams. Roy Campanella (GM), Eric Klein (notetaker), David Shapiro (parliamentarian). 11:35AM: Vote to Excuse Members’ Absences: Rosalinda Palacios for work and Fadi Saba for death in family; both excused without objection. 11:40AM: Review/Approve Agenda: WW moves to put public comment after Treasurer’s Report (switch #7 and #8). Discussion. SK calls question. Debate ended without objection. VOTE: 10 yes, 11 no, 1 abstention. Motion to switch #7 and #8 FAILS. MT: Exec session must include formulation of LSB statement. MH: Point of information. This hasn’t been noticed to public, so can’t change agenda language. WW: Point of information. Exec session business should be discussed in exec session. Chair: Language of exec session agenda will stay unchanged MT: appeals Chair’s ruling. Discussion. VOTE to uphold Chair’s ruling: 8 yes, 10 no. Chair overruled. Changes to exec session agenda can be made in the exec session. MH: Moves to put Town Hall item back on Consent Calendar. WW objects but then withdraws his objection. Town Hall added as Item #3 on Consent Calendar. JW moves to add to agenda a motion to unseat Rosalinda as chair, as Item 4 before Consent Calendar. Discussion. VOTE: 11 yes, 11 no. FAILS. RP moves to have his roll call vote motion (#11-6) to first item of “Unfinished Business”. 2/3 majority needed. VOTE: 11 yes, 10 no. FAILS. The item remains as #11-6. 12:25PM. Agenda approved as amended. 12:26PM. Consent Calendar. MT: Pulls #1 and #2. #3, Town Hall item, is approved. The body agrees to set time and date of next meeting. MT: Moves that next meeting be on Saturday, 10/22, at 11:00AM. VOTE: 15 yes, 5 no. PASSES. Next meeting will be Saturday, 10/22/05, at 11:00PM. SR: If PNB passes a bylaws amendment, may need a delegates’ meeting in September. 9/28 proposed. VOTE: 16 yes, 1 no. If necessary, will meet Wednesday 9/28/05, at 7:00 PM. 12:39PM: Approve Minutes of Meetings 6/11/05, 7/16/05 and 8/20/05. Max moves to approve all three sets. All approved without objection. 12:40PM: GM’s Report (text attached) in support of the budget of 9/16/05 he presents for approval today, including a Budget Summary. 12:58PM: Q & A from Board regarding budget 1:52-2:42PM: Public Comment 2:42PM. BREAK 2:53PM. Treasurer’s Report/Approval of Budget: MT distributes copies to the Board of the budget of 9/9/05 which was presented to the FinCom on 9/10, which she supports; and of a comparison worksheet of the five budget versions presented to the LSB from 8/20 on. Discussion of the current budget by MT and GM. 3:45PM. DS moves to approve the KPFA budget, including the most recent data available as submitted by the KPFA station management. Discussion. 4:00PM. BET calls question. 2/3 vote needed. VOTE: 11 yes, 11 no. FAILS. Debate continues. 4:20PM (approximately. RE call question. WR objects. VOTE: 14 yes, 7 no. PASSES. Debate ends. VOTE on DS motion to approve budget, by roll call as requested: Budget PASSES. 11 YES: HB, MB, BET, SG, AH, MH, EP, SR, Lisa R, DS. 10 NO: Max, RE, TF, Chandra, SK, RP, WR, MT, JW, LW. 1 ABSTAIN: AN. 4:35PM (approximately): Meeting Adjourned. ======================================================= CONSENT CALENDAR ITEMS APPROVED: 3. Motion to hold a town hall meeting within 90 days to discuss station issues, including workplace violence, labor and community relations. (Mark 6/11) ======================================================== Text of General Manager’s Report: GM Report to the LSB, September ‘05 KPFA FY06 Budget Adjustment Since the 2006 KPFA Budget emailed to the Local Station Board on Wednesday, September 14, the following minor updates have been made: 5001 MAJOR DONATIONS/BEQUESTS – Increased $50,000 This line has been increased to reflect a large and unexpected bequest commitment KPFA has just received. On Friday, September 16, KPFA received $50,000 from a charitable trust with a written guarantee that another $50,000 will arrive in 30 days’ time. 5660 Rental Income – Decreased $36,000 Although negotiations are still underway with the National Office about paying rent to KPFA, we are no longer counting on that income in this year’s budget. This is a conservative budgeting measure, and has secured this budget the support of the CFO and National Office. 5800 Grants Income – Increased $20,000 This item has been increased following talks with the Miller and LEF foundations about the likelihood of renewing grants to fund the Full Circle Fellowship positions Net Surplus KPFA’s Net Surplus after capital expenses is now $190,362, exactly one half of one month’s operating, capital, and central services costs. FY06 Budget Summary The following summary takes into account the changes noted above. This summary provides both a general perspective of the FY06 budget and its underlying assumptions along with some detailed highlighting of relevant budgetary figures. KPFA’s current savings fund balance is approximately $670,000. The FY06 budget will result in a Net Surplus of $190,360. It is highly probable that we will have the capacity to add $280,000 to this savings fund from our net surplus after the Fall fund drive in FY07. KPFA’s balance in its savings fund by the end of 2007 should be about $950,000. In addition, KPFA has made the last payment on its Berkeley property. Our three buildings have a current market value in excess of $3,000,000. The FY06 budget assumes a decline in Listener Support of approximately 2% that is offset by modest increases in various income categories (Major Donations, Matching Gifts, Interest/Other, the Crafts Fair, Grants Income, Grants Income CSG, and Grants Income – Mateel Toxics fund). These estimates reflect a greater degree of diversification from our revenue streams and a general trend upward in KPFA Total Income. The audited actual FY04 Total Income was $4,423,192 and the August actual/September forecast for FY05 is $4,600,345; an increase of $177,153. Our FY06 estimate for Total Income is $4,764,525; revealing a slightly lower increase of $164,180 in comparison with FY05 results. Total Operating Expenses in our FY06 will increase in comparison with FY05 (August actual/September forecast) to $3,609,799 from $3,503,534. This increase of $106,265 in Total Operating Expenses is significantly less than the $330,036 spending increase between the FY04 actual of $3,173,498 to FY05’s $3,503,534. The FY06 budget has reduced KPFA’s headcount to 42.7 FTE from 44.1 FTE in FY05. This figure includes workstudy and severance. The most significant external threats to KPFA’s financial stability are reduced CPB funding and potential fines from the FCC. Internally the most significant threats are continuing conflicts within and between three primary elements – staff, board, and management. Steps must be taken to minimize the internal threats to KPFA’s financial and organizational stability. Management believes the FY06 budget is a step in the right direction. The core strength of KPFA is its programming. The mind, heart and soul of KPFA’s programming is its creative staff, paid and unpaid. The FY06 budget respects and nurtures this strength. This budget is not a panacea for curing all the internal ills of KPFA. No budget could accomplish this objective. There are no such panaceas. But we can begin to take the correct path toward peace, forgiveness, and reconciliation. The FY06 budget is a vital bridge to such a path. Income: Listener Support – We are projecting a decline of $67,773, about 2%, in Listener Support for this coming fiscal year. This is a prudent estimate based on KPFA’s past performance and the anticipated economic climate. Interest/Other – KPFA has been subsidizing the cost of operating the Pacifica network’s KU and satellite interconnections. The FY06 budget will bill Pacifica for these amounts; most of which are staff salaries. In essence, KPFA is actually paying for satellite services that it doesn’t use to serve its audience. Instead, we are paying to uplink programs for the Pacifica network. The FY06 budget will correct this problem. Board members at the local and national level should want the financial accounts of Pacifica to accurately reflect each transaction. Pacifica’s CFO, Lonnie Hicks, has agreed to assume these costs. Community Events – KPFA is planning a major music concert in June, 2006. We anticipate about $60,000 in revenue. Expenses: Salaries & Related Expenses – The FY06 budget slows the pattern of growth in this category. The FY04 Salaries totaled $2,024,292 and increased in FY05 to a total of $2,299,883; that is $275,591, an increase of about 13%. The FY06 Salary total is $2,343,907; an increase of $44,024 or less than 2%. This includes the anticipated cost of adding a Program Director. The actual salary compensation levels at KPFA are significantly lower than many public radio stations and far below the mainstream industry averages. Salaries & Related Expenses are 49% of Total Income. In addition, salaries as a percentage of total income is more revealing than salaries as a percentage of Listener Support because some of our employees are generating revenues through non-listener support efforts. For instance, revenues from the KPFA Craft Fair covers the salaries of more than ten part-time employees and also contributes to our net surplus. These same employees are wrongly included in the calculation of salaries as a percentage of Listener Support. Finally, as long as KPFA management carefully limits the growth of salaries and reduces, when feasible, FTE’s on a long-term basis, the policy of focusing our resources on paying a programming staff to create locally produced radio is very viable and in accord with our mission. Respectfully Submitted, Roy Campanella II |