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HomeMy WebLinkAboutMinutes-06-02-81-Special Meeting6 S/S MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY SPECIAL CALLED MEETING JUNE 2, 1981 The City Council of the City of Downey held a special called meeting at 7:30 p.m., June 2, 1981, in the Council Chamber of the Downey City Hall, Mayor Milton R. Mackaig presiding. PRESENT: Council Members: Lyell W. Swearingen Mayor Pro Tem James T. Quinn Robert G. Cormack Theodore H. Jackman Milton R. Mackaig Mayor ALSO PRESENT: Don Wagner, Assistant to City Manager Robert L. Shand, City Clerk -Treasurer Cable Television Advisory Committee: Gene Boutault Paul Lambros Bruce Lively Joe Sarabia Dale Hardiman Chairman Special Called Meeting for the Purpose of discussing Cable Television Mayor Mackaig announced the ground rules for the meeting will be to take testi- mony from the Committee and then the Council will vote on this matter at its meeting on June 8th. Mr. Wagner reviewed the Council's action to join the Cities of Pico Rivera, Commerce, Santa Fe Springs and Bell Gardens, with the goal that each city grant a franchise to the same Cable TV company. Subsequently, a Cable Television Committee was formed for the purpose of monitoring the franchise process and studying and evaluating the proposals and the consultant's evaluations of those proposals. The objective of the Committee was to make a recommendation to the City Council on selection of a Cable Television franchise. Mr. Wagner stated the City Council has adopted a model Cable Television ordinance and approved the Cities of Lynwood and Paramount joining the consortium. He commented on the review process of the bids received from Cable TV companies and the oral presentation by each company. The Committee reviewed the evaluations and a recommendation has been made to the City Council. Chairman Hardiman said the Committee has recommended California Cable Systems, Inc., as the leading contender in future negotiations for a franchise, based upon extensive research of their proposal and analysis. He then discussed the recommenda- tion of the consortium consultant who ranked Teleprompter highest based on dollars and California Cable Systems and Cross Country highest based on past performance and history. Mr. Hardiman reviewed the reasons for the Committee's recommendation to select California Cable Systems based on their bid submitted. He said the Committee attempted to be as fair and objectionable as possible in its decision. Mayor Mackaig suggested requiring a performance bond. Mr. Hardiman clarified the Committee's recommendation to designate California Cable Systems as the leading contender for future negotiations. At such time as the Council agrees to grant a franchise, then a requirement could be included for a performance bond. Mayor Mackaig raised a question concerning the rates involved. He was told the rates would vary depending on the type of services received. There would also be an installation charge. Mr. Hardiman mentioned a representative of Teleprompter contacted him regard- ing several items which may influence the final decision of the City Council, one of which is potential foreign ownership and restrictions that could affect that owner- ship. He pointed out that California Cable Systems is a subsidiary of a Canadian corporation, and he subsequently contacted the Federal Agency Registry and Federal Communications Commission concerning the question of foreign ownership. He was informed the FCC had been contemplating preempting the right of foreign ownership of American cable systems because of the possibility of hostile nations becoming Council Minutes 6/2/81 (Special) -1- r/6 involved, but this was subsequently dropped and there is no such regulation pending at this time. Mr. Hardiman concluded that five cities in the consortium share the Committee's recommendation of California Cable Systems, Inc. Mr. Wagner mentioned five cities have designated California Cable Systems as the leading contender, with the Cities of Commerce and Downey having not made a decision. After making a decision, the next step would be the negotiating process. It was noted each city would have its own separate contract. Mayor Mackaig commented on information he received concerning a comparison of the rates. Mr. Wagner said if the Council approves the recommendation of the Cable TV Committee, the work of the Committee will not cease, and the next step in the pro- cess is to prepare a list of items the City feels should be negotiated with the leading contender. The Committee and staff will be advising the Council as to the status of negotiations. Mayor Mackaig stressed the need for a performance bond. Mr. Wagner mentioned the consotrium cities agree no city will award a franchise without a performance bond, and it has been suggested that the best assurance for receiving what is promised is to include a range of penalties in the franchise agreement. Mr. Hardiman requested the Council to instruct the franchise bidders to main- tain the procedure of presenting any information or input through a selected staff representative, which in turn would be submitted to the Committee and the Council. Mr. Norval Reece and Mr. Kenton E. Krogstad, representatives of Teleprompter, each requested permission to address the Council. They were informed the Council would not be taking input at this time. It was moved by Councilman Swearingen, seconded by Councilman Quinn, and so ordered to adjourn the meeting at 8:08 p.m. Robert L. hand/City C erk-Treasurer Ma.Zton R. Mackaig, Mayor/ Council Minutes 6/2/81 (Special) -2-