Our
story about Sun Radio [link] generated several reader comments. Most of the
folks we heard from praised the innovative broadcasting voice the serves the
Austin, Texas area. Also, we received four comments from readers asking the
same thing: Is what Sun Radio is doing
legal? This comment was typical:
While I certainly applaud
the overall intent of Sun Radio. And I don't want to be the fly in the
ointment, but how is Sun Radio legal with KDRP involved? You can't rebroadcast
another radio station's programming on an LPFM license.
 |
| Daryl O’Neal |
We
referred this question to Daryl O’Neal, the founder of Sun Radio. His reply
makes sense. Note: I am not a lawyer or
an engineer, so I’d appreciate feedback from people who are more familiar with
FCC rules,
O’Neal
told us that Sun Radio is not a radio station, it is a syndicator that provides
a 24/7 program stream. Each affiliated station decides how much of the network
feed they want use. All of stations air local programming. FM translator repeat
their primary station.
There is self-generated local programming on KDRP including local
sports and community news. KDRP and other stations chose when, and for how
many hours, they use Sun Radio’s audio feed.
Here
is a rundown of the stations and translators in the Sun Radio group:
• KDRP-LP (103.7 FM), Dripping Springs, Texas
is owed by the Principle Broadcasting Foundation. Principle is a nonprofit
organization that is separate from Sun Radio Foundation. Keep in mind that Sun
Radio is not KDRP; they are two different entities.
• KTSN-FM (88.9), is licensed to the
town of Blowout, Texas, near Johnson City. Sun Radio Foundation owns the
station.
• 106.9 FM, serving the
Fredericksburg area,
is a translator that repeats KTSN-FM. Sun
Radio Foundation owns the translator.
• KCTI (88.1 FM) is licensed to the town
of Gonzales, Texas. Sun Radio Foundation owns the station.
• 99.9 FM, San Marcos is a translator that
repeats KCTI-FM. Sun Radio Foundation
owns the translator.
• 100.1 FM, Austin, is a translator owned
by Sun Radio Foundation. It repeats programming from KLZT-HD3, which is also
owned by Emmis Media. Programming from the HD channel is repeated on 100.1FM.
The other stations get their audio from private IP channels
• KTSN-AM 1490, Austin, is owned by the Sun
Radio Foundation and repeats KTSN-FM.
Sun
Radio also allows other small noncommercial stations in Texas to use their 24/7
program feed for free. According to O’Neal, these stations include KOWO,
Wimberley; KMSN, Mason; KTHE, Llano; and, KTHE’s translator at 96.1 FM in
Hutto, Texas.
AFTERSHOCK AT PACIFICA
AFTER THE AGREEMENT WITH THE EMPIRE STATE BUILDING
 |
| Tom Livingston |
The
recent agreement between Pacifica/WBAI with the Empire State Realty Trust
(ESRT) received praise in media coverage [link].
In fact, the best reporter on the radio beat,
Tom Taylor [link] said interim Executive Director Tom Livingston and Marc Hand
from the Public Media Company should be nominated for a Nobel Peace Prize.
That might
be hyperbole but observers seem to agree that progress is being made.
Not
everyone in Pacifica-land approves the deal.
We received an anonymous comment from a person who thinks Pacifica did
not provide its due diligence before agreeing to the FJC loan:
“Not all observers
consider the $3.7 million loan a sign of internal progress. It was more like
internal bullying. There is no way Pacifica can comply with any of the
financial provisions required by the lender. There is no apparent way to pay it
back.”
 |
| R. Paul Martin |
The
reaction by R. Paul Martin, WBAI’s Treasurer and member of the Local Station Board. was even more
negative. Martin said in memo:
“On
April 5, 2018, the interim Executive Director [Tom Livingston] sent out a press
release announcing a settlement with the Empire State Realty Trust (ESRT) and a
series of agreements that will allow WBAI to get out of the last two years of
its lease at the Empire State Building (ESB) as of May 31, 2018.
“Funding
for the settlement was provided through a loan from the non-profit lender FJC.
The [finance committee] has not received any financial documents related to
this loan. There is a Pacifica policy…that any financial endeavor above a
certain magnitude must be sent to the [finance committee] for review.
“This policy has not been
adhered to in this case. The result is that the NFC is officially mostly in the
dark regarding the details of the largest financial transaction in the history
of Pacifica.”
Martin
continues to recite Pacifica “rules” as if they were Federal law:
“Article Three, Section 5
of the Pacifica bylaws says that all Pacifica members will get to vote…yada,
yada, yada…
Holy
bureaucrat!
People within Pacifica treat internal corporate policies as if they are
permanent dictates. Actually, all of these rules can be erased
by the stroke of a pen.
A major portion
of Pacifica’s dysfunction is caused by these arcane, useless rules. They are like a security blanket that Pacifica's lifers can't give up.
These folks remind us of a bunch of
Scientologists. They believe deeply in what they are saying, but, at the end of
the day it is meaningless. Pacifca's rules are used to keep certain
people in power. Perhaps Pacifica would be better off if they had only one committee,
the National Board of Directors.
 |
| Marc Hand |
KEN SAYS: We are impressed by what
Livingston and Hand have accomplished but everyone knows there is still a long
way to go before Pacifica is solvent.
We like the quiet way things are moving. Livingston and Hand have gotten things done, rather than just talking.
They aren’t taking part in the endless second-guessing or meaningless
factions. Let’s hope things keep moving that way.
Pacifica is not going down without a fight nor quietly. They will fight to broadcast their waste of space. I think they are.
ReplyDeleteHate to say it, but what Sun Sounds is doing isn't legal. 47 CFR 73.879 is very clear: "An LPFM licensee may not retransmit, either terrestrially or via satellite, the signal of a full-power radio broadcast station." The fact that they're providing a 24/7 content stream that is available on both stations is a no-no.
ReplyDeleteThese are my responses to Ken’s post above (in 2 parts). Ken is in quotes.
ReplyDelete"The recent agreement between Pacifica/WBAI with the Empire State Realty Trust (ESRT) received praise in media coverage [link]."
The link above leads back to Ken's own coverage of this story. I haven't seen any "praise" in media coverage yet, only basic reporting on Pacifica's press release which, oddly, did not list the amount of loans which are $3.7 million and $500,000. (Plus at least $800,000 interest as best I can tell. The loan documents still have not been made public. Pacifica’s operating budget is under $12 million.)
"In fact, the best reporter on the radio beat, Tom Taylor [link]..."
Link leads to 404 code.
"... said interim Executive Director Tom Livingston and Marc Hand from the Public Media Company should be nominated for a Nobel Peace Prize."
Let's not forget President Obama won the Nobel Peace Prize and continued or started wars in - is it five or seven? foreign countries, plus a coup in Hondruas.
"That might be hyperbole but observers seem to agree that progress is being made."
“Observers” should make their observations public so we don’t think this might be made up. I don't see progress but complete disarray. Unpopular, or merely inconvenient voices have been shut out, including Pacifica's CFO, (CFO Resignation letter), and Pacifica's corporate counsel (his letter to PNB).
"These folks remind us of a bunch of Scientologists. They believe deeply in what they are saying, but, at the end of the day it is meaningless. "
True statement. Grace Aaron who spearheaded this loan (and her husband, Ken, KPFK's Treasurer) are, in fact long time Scientologists.
"Pacifca's rules are used to keep certain people in power."
True. Nonetheless, they are the present rules that must be followed. What R. Paul Martin was pointing to:
“All Members shall have all rights granted to them by law or by these Bylaws, including without limit the right to vote… on the sale, exchange, transfer or disposition of all or substantially all of the Foundation's assets; on the sale, exchange, transfer or disposition of any of the Foundation's broadcast licenses; on any merger, its principal terms and any amendment of its principal terms; on any election to dissolve the Foundation;
That means using a sale or swap of a radio license as possible means of paying back the loan is outside of the scope of the PNB to promise and, without being a lawyer, appears illegal. The public looks forward to seeing the documents to see exactly what is promised to pay back the loan, if anything.
“Actually, all of these rules can be erased by the stroke of a pen.” True but, to date, they have not been and thus they are the laws of the land.
“Pacifca's rules are used to keep certain people in power.”
True. But people who are so inclined will always find ways to manipulate rules if they perceive they will benefit and are dishonest. Look at Mitch McConnell’s refusal to bring Merrick Garland to the Senate for a vote for SCOTUS!
“Perhaps Pacifica would be better off if they had only one committee, the National Board of Directors.”
Perhaps but CA state law requires Pacifica have an audit committee. (There is one but is non-functional.) It is time to stop blaming Pacifica’s bylaws, insane as they are, for the actions and decisions of the people who make the decisions. Whether one committee or 10, it or they would still be populated by the same incompetent and uninformed people.
End part 1
Part 2
ReplyDelete“Livingston and Hand… aren’t taking part in the… meaningless factions."
Of course they are playing factional games. My observation is that, like John Proffitt when he got to Pacifica, Livingston identified the three or four people who are driving their factional train and ignores everyone else.
Livingston said in a public email, “The decision to seek a loan to address the ESRT judgment was made prior to the start of my time at Pacifica. All of the policy decisions regarding the agreements were made by the PNB.” I responded: “Are you suggesting you accepted this job to do the bidding of majority of Directors, wherever they lead you? One would have thought that you, as a professional with a long career in helping public radio stations, would show your independence and ask hard questions - before signing loan documents.” And further, “One would have hoped you were hired to offer informed advice and plans not just rubber stamp what the board wanted. After all, they are the ones who have put Pacifica in the dire situation it presently is in.“ Tom is factional game-playing at its worst and most destructive to Pacifica.
As far as I can tell, Pacifica could not qualify for this loan either by having the appropriate financial reporting required or by any plan to pay back the loan. A six month waiver was given to Pacifica to complete the financial reporting required which includes: finish FY2016 audit, start and complete FY2017 audit, complete two pension plan audits and pay off the pension monies owed since 2015 (and is, at a minimum, $750,000 plus penalties which have not been calculated). Livingston was not able to say who told the lender Pacifica could accomplish all this by September. The CFO did not say it can be done. I do not believe it can be done, especially, as of May 4, with no CFO and no auditor.
Livingston said in a public email, “I believe I speak for the board that it is the strong hope that by improving Pacifica's programming and operating practices the organization can generate sufficient resources to be both sustainable and service the debt.”
My response was, “Your statement is shocking. You signed a $3.7 million loan, with all of Pacifica’s real estate assets, including everything inside the buildings, plus KPFK’s transmitter and the Pacifica Radio Archives, both irreplaceable, only on a “strong hope”? Please see my 4/8 email where I asked if this was a predatory or “liar’s loan.”
We’ll see who gets an “I told you so moment” as to the future of Pacifica. I’ll be happy if it’s not me but I do not think it will be those who are trying to put enough lipstick on this sad pig to make it look like a good deal for Pacifica.
Kim Kaufman
Former KPFK LSB, Treasurer,
Pacifica National Board, audit committee
Unfortunately the bylaws constrain Pacifica, and the bylaws are the legal structure of the Foundation. Changing the bylaws involves a vote by members of all the stations to vote on such changes, which is a costly thing, and I'm sure someone will sue, and there goes more of Pacifica's money. I imagine it would be a $200K cost for an election, and who knows how long it will take to get it together and find a vendor who will do the work? If they just go ahead and do something in variance with the bylaws, someone will sue. This bunch of idiots is the most lawsuit happy group I've ever seen.
ReplyDelete