Santa Cruz-based public radio station KUSP recently announced a proposal to buy its Monterey County counterpart, KAZU. But CSUMB Foundation officials (the Foundation owns the station and its license) say KAZU is not for sale.

“We certainly invited the proposal, but we made it clear that we weren’t interested in selling,” says Jack Jewett, CSUMB vice president for university advancement, who also sits on the Foundation board.

KUSP’s plan includes two options: an outright purchase of KAZU by KUSP, or a management agreement that would allow KUSP to operate KAZU while CSUMB would retain the FCC license.

KAZU’s annual budget is $874,667; KUSP’s is a little over $1 million. Both stations receive about 90 percent of their money from the community – donations from businesses, individuals, foundations and grants – and about 10 percent from the Corporation for Public Broadcasting.

The CSUMB Foundation bought the station in 2000, and KAZU has failed to break even financially ever since. But, says Jewett, things are looking up for KAZU. “The station has enhanced values,” he says, noting that underwriting sales have increased from $51,806 in 2003 to $239,285 in 2007. Individual donations are up, too, and all of this means that the Foundation has to pump less money into KAZU. “Contributions from the Foundation in ’05 amount to $160,000,” Jewett says. “In ’06, $135,000 and in ’07, $75,000.”

At its Feb. 28 board meeting, the CSUMB Foundation will consider KUSP’s proposal and others that Jewett will not discuss. “These are private matters for now,” he says.

KUSP and KAZU both broadcast to roughly the same areas in Santa Cruz and Monterey counties, and air the same National Public Radio shows, including “Morning Edition” and “All Things Considered.” Likewise, both pay to broadcast NPR and Public Radio International programming.

In February 2007, the radio stations and the CSUMB Foundation signed a “letter of intent” to formally evaluate some type of operating arrangement between KAZU and KUSP.

Merging the two stations would be good for listeners, says Terry Green, KUSP’s general manager. “The status quo where KUSP and KAZU cooperate in some ways and compete in some ways is not an effective way to serve listeners.”

Last September, a group made up of radio station and CSUMB officials devised a plan. They recommended combining KAZU and KUSP in a new nonprofit organization that would operate both stations, and presented the proposal to the CSUMB Foundation board.

KUSP board president Susan Goldstein says the response from the Foundation “was a non-response. In December, we got an e-mail and it had concerns. We tried to address all of their concerns and that didn’t go anywhere.”

KAZU’s license is an asset and the Foundation board has a responsibility to protect its assets, Jewett says. “One concern is: If we enter into an agreement where our license would be relinquished to a new entity, and if that new entity is not financially successful, would we be able to get our license back?”

So the Foundation formed a subcommittee to study its options and hired a consultant. “The consultant is helping us with such issues as working with FCC officials in terms of this central point of relinquishing our license,” Jewett says.

KUSP board members, however, fear the Foundation may consider partnering with an out-of-area radio station.

“It’s so important that we maintain local control of the media,” Goldstein says. “We have an opportunity here to build a local news service via the radio.”

Jewett says the foundation’s interest is in maintaining local control by owning KAZU’s license. “As long as we own the license, we have ultimate control over content and programming,” he says.

The board may not make a decision on Feb. 28. Green says he hopes it moves quickly. “This organization wants to move forward,” he says.