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
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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/
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