I have spoken to the other issues in previous threads. I think that there is nothing wrong with a corporation such as Pacifica that has assets seeking a line of credit to for example upgrade its property etc. i.e. to invest the money in ways that would increase the value of those assets, but I do not think it is prudent to obtain a line of credit to cover operational costs when the foundations spending exceeds it income. The Foundation has to implement cost-cutting procedures. The main problem area is with personell. It is a difficult problem to address, but it has to be done.
I am opposed to the approach proposed by Ambrose Lane and others for the reasons I have given and also because Pacifica management does not have a god track record of fiscal responsibilty.
Joe W.
>From: srobin21 at comcast.net (Steven L. Robinson)
>Reply-To: lbo-talk at lbo-talk.org
>To: lbo-talk at lbo-talk.org
>Subject: RE: [lbo-talk] Pacifica and KPFA up for sale AGAIN?
>Date: Mon, 08 Aug 2005 19:33:12 +0000
>
>Joe - Well, no matter what one says - KGO and KSFO ARE competitors with
>KPFA for audience (And KPFA, of course, occupies a space on the FM dial
>that Disney, no doubt, would like to have),. That a controller for one
>company would serve in a sensitive financial capacity for a competitor
>would - in the private sector- raise eyebrows, if not be forbidden
>outright. Terms like "conflict of interest" or "apparent conflict of
>interest" might be applied. Once again, KPFA appears to operate in a
>sphere all its own.
> More to the point, I note your silence as to the substance of
>the forwarded message. SR
>
>-------------- Original message --------------
>
> > Marnie is the Controller for KGO/KSFO/KMKY/KIID Radio San Francisco
>which
> > are owned by ABC/Disney. In my mind this is a biographical detail and
> > neither here or there politically. KGO has some of the most progressive
>(as
> > well as reactionary) talk radio on the AM band in the Bay Area. We all
>(most
> > of us anyway) have to work for a living. Marnie is personally a
>progressive
> > person and a media professional. The reference to KSFO's right-wing
>hosts as
> > though Marnie is ideologically connected to or responsible for them is
>ad
> > hominem.
> >
> > Joe W.
> >
>
> > >
> > >Instead of dealing with the very real problems that plague the network,
> > >Pacifica management is proposing to resolve the crisis by borrowing
>money.
> > >This is like "giving teen-age boys credit cards," said Sandy Weinman,
>the
> > >LSB Treasurer of KPFT in Houston, Texas. "We've survived this far in
>our
> > >history without a line-of-credit. It's not time to turn over the
>Monopoly
> > >cards and mortgage our future."
> > >
> > >To borrow money, Pacifica would have to put up something as collateral
>--
> > >the buildings, the broadcast equipment, the station licenses. In one
> > >scenario, the collateral would be future income. Imagine a pledge drive
> > >where your money goes, not to Pacifica, but to Wells Fargo or the Bank
>of
> > >America.
> > >
> > >It should be obvious that if Pacifica goes deep into debt to cover up
>our
> > >runaway budget problems, we are just asking for trouble, and serving up
>the
> > >network on a silver platter to our creditors. "Our assets are beyond
>our
> > >buildings. The real worth is the FCC licenses and the bankers know
>this,"
> > >said Weinman at the most recent National Finance Committee meeting.
> > >
> > >But, in the minds of our current management, not to be in hock to the
>banks
> > >is somehow unbusinesslike. "Is our role to survive?" mused Interim
> > >Executive
> > >Director Lane. "The responsibility of a board member is to enhance the
> > >value
> > >of the corporation for which they serve."
> > >
> > >Not so, said PNB member David Adelson, a representative from KPFK in
>Los
> > >Angeles. "I think the charge is to see that the Pacifica mission is
> > >fulfilled, not to enhance the assets of Pacifica."
> > >
> > >
> > >WHO'S IN CHARGE?
> > >
> > >When it was her turn to speak, Patty Heffley, a PNB National Finance
> > >Committee member from WBAI, said that she had not known that Pacifica
> > >management had received unbudgeted raises and bonuses. "Who is in
>charge of
> > >the managers," she asked, "so they don't overspend?"
> > >
> > >"That's an interesting question," CFO Hicks answered. "Who's
>accountable
> > >for
> > >management expenses of this organization? The issue has not been
> > >resolved...
> > >We need a national policy for monitoring and controlling expenses."
> > >
> > >If the current Pacifica management has its way, the Pacifica community
> > >might
> > >find Wells Fargo or the Bank of America "monitoring and controlling
> > >expenses."
> > >
> > >
> > >[ The quotes in this report are transcribed from the Pacifica National
> > >Finance Committee meetings of July 29 and August 2, archived at:
> > >http://www.kpftx.org/#archives ]
> > >___________________________________
> > >http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk
> >
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