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DBVBLOPKBBT DBPARTKBBT
OF THE CIn OF SAB BBRlURDIBO
REOUEST FOR CONUSSIOB/COUBCIL ACTIOB
From:
1USJ.'I1'U5TIl J. HENDERSON
Executive Director
Subject: IBLAIID EMPIRE ALL NEWS
r.Jf A 1IIIRT .
Date:
March 07, 1992
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SvnoDsis of Previous CnmmissionlCouncil/Cammittee Action(s):
On February 3, 1992, the Community Development Commission referred the
subject item to a meeting in March 1992 for further consideration an
action as deemed appropriate.
Recomm~~ed Kotion(s):
(ColllllUllitv DeveloDlllent COlllllission)
That the Community Development Commission consider the January 23,
1992 attached request from Creative Communications, Inc. establish an
all news channel and take action deemed appropriate.
Adm~ator
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J. IIBIIDBRSOB
tive Director
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Contact Person(s): Ken Henderson/Shauna Clark
Phone:
5081
Project Area(s):
All
Ward(s):
Supporting Data Attached:
Staff ReDort
FUNDING REQUIREMENTS:
Amount: $1.500.000
Source:
To Be Established
Budget Authority:
To Be Established
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Cn--fS8ion1Cnnn~il Rotes:
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VH: :lmp:2104B
CONUSSIOB KBBTIBG AGDDA
Keeting Date: 03/07/1992
Agenda Item Bumber: ::2....
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DEVELO;PMEBT DEPARTMEBT
OF THE CITY OF SAB BERBAIlDIBO
STAR REPORT
Inland EmDire All Bews Channel
This item has been placed on the agenda at the request of the Chairman
of the Commission.
The Mayor and Common Council previously approved financing for Phases I
and II of a feasibility study conducted by Creative Communications,
Inc., relative to the establishment of an Inland Empire All News
Channel. Creative has previously provided reports to the Mayor and
Common Council relating to its findings, conclusions and
recommendations.
Attached is a draft proposal received by staff which requests a letter
of credit or loan guarantee of $1.5 million to support a six (6) month
start-up phase and twelve (12) months of operation.
Based upon the foregoing, staff recommends adoption of the form motion.
Director
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KJH: lag: 0496E
COMMISSION MEETING AGENDA
Meeting Date: 2/3/1992
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Agenda Item Number:
1\),.)11
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January 23, 1992
DRAFT
TO: TIM STEINHOUSB
FR: EDWIN HART, CEO, CREATIVE COMMUNlCA nONS ASSOCIATES, INC.
RE: INLAND BMPIRB ALL NEWS CHANNEL
CC: MAYOR W.R. "Bob" HOLCOMB and MEMBERS of the COMMON COUNCIL
We are nearing completion of Phase n of an exciting and unique project for the City of
San Bernardino to initiate a private. non-profit daily television news channel via cable outlet to
be known as the Inland BmpiM All News Channel (JEANC). The JEANC will deliver news 24
hours a day. Initially, the clllmnel will provide a unt:-huur local and re&ional news program
shown prime time Monday through Friday. The remainder of the service will be state. national
and world news provided by CONUS, a Minneapolis-based news gathering operation similar to
CNN. On an hourly basis throughout the day, local news cut-ins of 60 to 120 seconds each will
be aired. As the service expands, local news will also be shown on weekends.
We have concluded the following:
1. The JEANC should initially be delivered on COMCAST, which serves 40,000
subscribers within the city limits. After the ANC begins broadcast, the service should be offered
to the remaining cable systems in San Bernardino and Riverside counties. As more cable systems
deliver the service, local news coverage will expand to include the additional communities. More
than 2.5 million people reside in the two counties.
2. The !BANC COIporation, a ,SOI-C3 non-profit cmporation, has been fonned to
administer funding and employ a management firm to establish and run the daily news operation.
Creative Communications, as the company which has guided the project from the beginning,
would like to be retained to develop the JEANe. ,
3. We ask for a letter of credit or loan guarantee for $1.5 million to support a six-month
startup phase and the first 12 months of operation.
4. We project that through sales of advertising time and possible cable subscriber fees,
the IEANe should break even withln 18 to 24 months. (See projections contained in monthly
report for December 1991.)
5. Creative Communications has identified 52 key foundations that, by ,geography and
interest, are most likely to provide grant money to help defray startup costs. With the
establishment of the cmporation board, grant requests can proceed. (See monthly reports for
October and November 1991.)
6. Should the city government approve. Creative Communications could jointly manage
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the IEANC.and Teleconununications Division, improving the quality of programming on Channel
3 while reducing the clty.'s cost of supporting the division by as much as $100,000. (See mOllthly
report for January 1992.)
NOTE: The consulting contract between CCA and the City expires February 29, 1992.
To continue the project, the mANC cOlpOration board should hire CCA, or another management
company, to take the next steps necessary to begin operation. That includes acquiring necessary
broadcast equipment and hiring and training journalists and technical staff as outlined in the plan
presented in June 1991 at the conclusion of Phase I. CCA can provide CONUS transmissions on-
air within 90 days of contract. The prime time local news program -- the mainstay of the mANC
- can go on-air within 180 days of contract with CCA.
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