City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: January 12, 2026
Report #:2510-5319
TITLE
Approval of a Contract with the Media Center for Cable Casting Services of Public Meetings for a Term of Three Years and a Not to Exceed Amount of $540,000 with Two One-Year Options to Extend for a Potential Not to Exceed amount of $900,000 over a five-year term, for cablecasting, production, and streaming services; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council approve a three-year agreement (Attachment A) between the City of Palo Alto and Midpeninsula Community Media Center, Inc., from January 1, 2026 through January 1, 2029, in an amount not to exceed $180,000 per year, with two one- year options to extend (for a potential total not to exceed amount of $900,000 for a five-year term), for cablecasting, production and streaming services.
BACKGROUND
In 1983, a Joint Powers Agreement (JPA agreement) was entered into by the cities of Palo Alto, Menlo Park, East Palo Alto, the Town of Atherton, and San Mateo and Santa Clara counties for the purposes of obtaining cable television service within these jurisdictions (only portions of the counties are covered). The JPA agreement gives the City of Palo Alto (the City) the sole authority to act on behalf of the Joint Powers communities. Cable franchise holders provide various forms of compensation (franchise fees and public, education, and government (PEG) fees) to pay for the use of the Joint Powers’ public rights-of-way.
The City’s Cable Television Ordinance provides that the City may designate a nonprofit entity to serve the Joint Powers by providing PEG facilities, programming and related services.
Midpeninsula Community Media Center, Inc. (Midpen Media) has served in this capacity since the early 1990’s, through a series of agreements. In 2000, as part of the sale of Cable Co-op to AT&T, Midpen Media received a $17 million charitable donation. This donation was used to purchase a state-of-the-art studio, video production and training facility located at 900 San Antonio Road in Palo Alto. The donation monies are also used, on an ongoing basis, to fund a portion of Midpen Media’s annual operating expenditures. Since Midpen Media owns its video
production facility and has ongoing income from the AT&T donation to supplement its operating expenditures, there is a significant barrier to entry for any other provider of these services. Bringing in a new provider would require an extensive and complex implementation process involving the City’s IT department and the new service provider. As such, under Palo Alto Municipal Code (PAMC) 2.30.360, the City Manager has approved an exemption from competitive solicitation due to the impracticality to solicit for these services.
In its continuing role, Midpen Media administers the Joint Powers’ seven local PEG channels, broadcasts local community programs, provides coverage of local government meetings, offers video production classes and workshops to community members, and provides local election coverage. In 2025, Midpen Media provided coverage of all live government meetings and produced local programs. Since the state of emergency due to COVID-19, Midpen Media has assisted the City with streaming Council meetings live via YouTube and Zoom.
ANALYSIS
Staff recommends that Council approve a new three-year agreement with Midpen Media, with two one-year options to extend, in an amount not to exceed $180,000 per year, starting on January 1, 2026. This agreement enables the following services:
1) Cablecasting of Palo Alto City Council, Council Committee, Board and Commission, and Citizen Advisory Committee meetings;
2) Cablecasting of the Mayor’s State of the City address, the annual City Council retreat, and other special events;
3) Recording of Utility Department workshops, major capital infrastructure projects, and special events; and
4) Streaming and archiving services.
Midpen Media will bill for these services monthly based upon the standard rates established in the PEG Support Services Agreement with the Joint Powers, approved by the Palo Alto City Council on January 27, 2020.
The new agreement again includes the scope from the last agreement for the recording of special Utility Department workshops, capital infrastructure projects, and community events (in an amount not to exceed $40,000 per year and on an as-needed basis). Either party may terminate the agreement with six months prior written notice.
If this contract extension is not approved, there would be a startup period where the City would need to hire additional staff or assign current City staff to take on videography duties, purchase any necessary equipment and/or software, and develop the process/procedures needed for channel switching and archiving meetings. The City may not be able to televise meetings on the government channel or archive meetings until this effort is finalized. Also, funding for this alternative is anticipated to be more than the $180,000 annual cost paid to Midpen Media for these services.
FISCAL/RESOURCE IMPACT
Funds for the first year of this agreement are included in the Fiscal Year 2026 Budget. The General Fund will support $140,000 for citywide public meeting coverage, and the Utilities Enterprise Funds will support $40,000 specifically for special Utilities workshops, capital infrastructure projects, and community events. The agreement includes a provision for annual CPI rate adjustments beginning in 2026. While the contract establishes a not-to-exceed annual cap of $180,000, staff will monitor service usage rates. If CPI increases significantly reduces the billable hours available under this cap, staff may return to Council for a contract amendment or budget adjustment in future fiscal years. Historically, hours have been under the cap.
Subsequent years of the contract are subject to Council approval of annual operating budgets.
STAKEHOLDER ENGAGEMENT
Staff has coordinated with the Media Center on this agreement.
ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3).
ATTACHMENTS
Attachment A: Midpen Media, Contract C26196212
APPROVED BY:
Lauren Lai, Administrative Services Director