Money Woes May Put KOCE-TV on the Sale Block

Rumors were swirling Friday about a possible sale of public television station KOCE-TV, fueled by the station’s $350,000 operating deficit last year and the need to spend millions to meet Federal Communications Commission standards on digital television.

The PBS affiliate, located on the Golden West College campus in Huntington Beach, says it is among the top 15 most-watched public television stations in America. It has long attracted interest from potential buyers ranging, including individuals, UC Irvine and a religious broadcaster.

Those inquiries stalled, but given the financial challenges confronting KOCE--including a $1.5-million to $10-million investment in new equipment to broadcast digital television signals as mandated by the FCC--a sale may become more attractive to the license holder, the Coast Community College District. The district operates Coastline Community, Golden West and Orange Coast colleges.

Rumors of an impending sale prompted KOCE vice president and station manager Bruce Reed to issue an internal memo to his staff Friday. In the two-page document, a copy of which was obtained by The Times, Reed wrote that “I have ‘heard’ that several entities are interested in adding a public TV station in Orange County to their collection [of] media properties.” He mentioned UC Irvine, Chapman University, USC and KCET, the Los Angeles PBS station.

Barbara Goen of KCET denied the station was interested in purchasing KOCE.

In recent years, KCET, KOCE, KVCR and KLCS have discussed ways they could cooperate to reduce costs, including locating digital transmitters in the same building, Reed said.

“My experience in life teaches me that everything is ‘for sale’ for the right price,” Reed’s memo continues.

Reed said in an interview Friday that he doubted KOCE was for sale but “I wouldn’t necessarily know.”

William M. Vega, chancellor of the Coast Community College District, the holder of KOCE’s license, has broached the subject of selling the station with at least one member of the district’s Board of Trustees, according to a source close to the chancellor.

Although the station cannot be sold without the approval of the board, that Vega has spoken about the issue indicates a sale is on his mind, the source said.

Vega also sits on the Board of Trustees at Chapman University, which is said to have designs on KOCE to augment its expanding film and TV program.

“Chapman is always interested in exploring opportunities that could enhance our students’ experience,” Chapman spokeswoman Ruth Wardwell said.

Vega did not return calls from The Times on Friday.

John Renley, a vice chancellor at the college district, noted the trustees had never publicly discussed the issue of selling KOCE.

Asked whether he favored selling the station, Renley replied, “I don’t know. I can see some advantages; I can see some disadvantages.”

He said that the district would reap millions from such a sale but that he feared a loss of “wonderful programming.”

KOCE has broadcast since 1972 and has more than 3 million viewers in Southern California. Programs include Real Orange, KOCE’s weeknight magazine and news series about Orange County, which debuted in September 1997.