1978/12/0678-1642
Anaheim Public Library~ 500 West Broadway~ Anaheim~ California
COUNCIL MINUTES - December 6, 1978~ 7:30 P.M.
The City Council of the City of Anaheim met in adjourned
regular session.
PRESENT:
ABSENT:
PRESENT:
COUNCIL MEMBERS: Overholt, Kaywood, Roth and Seymour
COUNCIL MEMBERS: Kott
ASSISTANT CITY MANAGER: William T. Hopkins
CItY ATTORNEY: William P. Hopkins
CITY CLERK: Linda D. Roberts
PLANNING DIRECTOR: Ron Thompson
ADMINISTRATIVE AIDE: Jim Armstrong
ASSISTANT PLANNER: Dave Anderson
Mayor Seymour called the meeting to order and welcomed those
in attendance to the adjourned regular Council meeting.
162: COMMUNITY ANTENNA TELEVISION - CABLE TV (CATV): Dr. Ronald Dyas, Member
of HACMAC and a professional professor of communications at Cal State University
at Fullerton, spoke on the history, present problems and technology relative to
the subject as it applied to the Santa Ana Canyon area. He first presented a
brief slide presentation illustrating some of the problems with which they were
faced in the Canyon area precluding, acceptable television receptio~ also showing
examples of that poor reception when, in fact, there was any reception at all.
He then relayed the historical background relative to the outcome of past efforts
in trying to get cable TV into Anaheim. During his presentation, Dr. Dyas pointed
out that changes had been made recently in Federal Communication Commission (FCC)
Guidelines wherein they had moved to suspend a Certificate of Compliance require-
ment which was necessary in the past. In 1973, the FCC denied a certificate to
Theta Cable in their attempt to provide their service to Anaheim because they
did not comply with some of the guidelines specified. The FCC had now abolished
that procedure so that the City and a cable franchise company could now negotiate
an agreement and thereafter construction could begin immediately.
In concluding, Dr. Dyas referred to the final report by the Anaheim Citizens'
Capital Improvement Committee, Public Utilities Subcommittee, dated June 2, 1977
contained in the "Report of the Utilities Committee of the Anaheim Citizens'
Capital Improvement Committee - 1976-77" on file in the City Clerk's Office.
Although he prepared his report independently of that report, the conclusions
were the same--that the City should have cable TV which would be the best way
to resolve the reception problem in the Santa Aha Canyon, and all new home con-
struction should include underground conduits to facilitate cable television.
Mayor Seymour asked if representatives were present from cable television companies
who wished to speak.
Mr. Ron Velik, Chief Technician and Plant Manager of the Yorba Linda Cable TV
Company, Inc., 17495 Imperial Highway, Yorba Linda, first read and submitted a
prepared statement giving background data relative to their providing cable TV
to the City of Yorba Linda,the market for which was in the eastern section of
the City (Santa Ana Canyon). However, their agreement with the city also provided
for a market survey of 25 percent of Yorba Linda annually, and if the study justi~
fied construction as agreed in their franchise, they would build into their service
any area demonstrating an interest and need. Mr. Velik also submitted a pamphlet
on their company which included information as to how cable TV operated, what
could be expected from it, fees and charges and other pertinent data.
78-1643
Anaheim Public Library, 500 West Broadway~ Anaheim~ California
COUNCIL MINUTES - December 6~ 1978~ 7:30 P.M.
In answer to questions posed by the Council and some members of the audience,
Mr. Velik relayed the following: His company would be interested in servicing
Anaheim, but would have to have a certain number of people who desired the
service. If 55 percent of an area was interested in entertaining a reasonable
franchise with his company, his Board of Directors would be interested in con-
sidering such a proposal from the City. The installation fee would be $15 with
a monthly primary service charge of $8 and a monthly secondary service charge
of $2. The City would pay for fees for necessary encroachment permits, but
would receive 3 percent of the gross. A city franchise normally granted easements
for construction in an area generally where there were utility easements. If they
had to go through an uncooperative party's property, they purchased the easement
or constructed around that property.
For those houses that did not have the necessary conduit already installed to
facilitate hookup, there would be no problem in installing that conduit in
existing housing and the expense would be exactly the same. He then explained
the procedure used in the installation process and pointed out that everything
would be underground and all that would be visible would be a lid placed in the
grass.
If a problem occurred after installation resulting in poor reception, the first
step would be to call the Cable TV Company. If it was their problem, they would
fix it; however, if it was a problem in the TV~set itself, they would refer the
customer to their own TV repairman. Seventy to eighty percent of the calls re-
ceived were customer set problems.
Relative to the time'frame, although he was not making an official statement for
the company, if they were invited to do business in Anaheim, from the start of
construction (first house) to the end of construction (last house),would take
180 days maximum. If within 15 days the service was not what the customer
wanted, they would disconnect the service and refund the installation fee.
The monthly secondary service charge referred to a second outlet where there
were two or more televisions in a household. It was an official policy with
most cable TV companies that if they had to install a second line and maintain
it, it represented a cost to them and therefore they had to charge to cover that
cost. People usually provided the second outlet themselves, and if they did so,
the cable TV Company would be responsible only up to the grounding block of
the house.
Dr. Dyas emphasized that there would be no cost to the City, but instead the
City would be receiving revenue. He clarified that it would only cost $15 for
installation and $8 a month thereafter, with $2 a month more for each additional
outlet.
The Mayor asked if there were representatives from other cable TV companies who
wished to speak.
Mr. Bob Sheid, Times-Mirror Cable TV, stated he was attending the meeting out
of interest only. He commented however that he was not aware of the most recent
FCC ruling explained by Dr. Dyas relative to the elimination of the Certificate
of Compliance Requirement. He also encouraged everyone to attend the 10th Annual
Western Cable TV Show presently in progress at the Convention Center.
78-1644
Anaheim Public Library, 500 West Broadway~ Anaheim~ California
COUNCIL MINUTES - December 6~ 1978~ 7:30 P.M.
Councilwoman Kaywood asked Mr. Sheid if he were to get the franchise for cable
TV for the City, would he be satisfied to serve the Canyon area only, or would he
need to serve the entire City.
Mr. Sheid answered that they were not familiar with the Canyon area, but they
would be interested in Anaheim if a number of things fell into place in pro-
viding that limited service. It was a very complex issu~ and he indicated it
would be unfair for him to explore some of the areas at this time.
Mr. Velik answered that he presumed Anaheim would be issuing a non-exclusive
franchise which he would recommend. He would not recommend an exclusive agree-
ment with any cable TV~company since the competition aspect would be best for
the citizens. If Anaheim did entertain a franchise similar to that which his
company had with Yorba Linda, they would also, in turn, be interested in providing
limited service. He again referred to the clause in their agreement with Yorba
Linda relative to the annual marketing requirement as previously mentioned.
The following people then spoke to the issue: Mr. Greg Hatfield, 6251 Northfield,
stated in the two years he had lived in the Canyon, he had spent in excess of
$1,000 on antennas. Relative to the cost for cable TV, he would be willing to
pay four times the amount quoted in order to receive good television reception.
The audience responded in kind by applauding their agreement.
Mrs. Carol Foba, 1250 Emogene, stated that she had a petition containing over 700
signatures which she was prepared'to submit to the Council, but did not do so,
since, after talking to some Council Members, they indicated it was not needed
as they were well aware of the problem. Mayor Seymour encouraged Mrs. Foba
to submit the petition in any case.
Mr. Randy Stansbury, also a resident of Emogene Street, stated that the Council
should approve the request for cable TV so that his family, friends and the
neighborhood could enjoy what others in the City had the opportunity to enjoy,
that being good television reception.
After a brief comment by staff, Councilman Roth stated that the City should move
ahead as soon as possible to acquire a cable television franchise. At the last
meeting, he asked the City Attorney to obtain a copy of both the ordinance and
contract between the City of Yorba Linda and Yorba Linda Cable Television Company.
He recommended that staff be directed to proceed with and prepare the necessary
documents to open the bidding process, thus putting it on a competitive
basis. Time was of the essence and that aspect should be made a part of the bid
process.
Mr. Paul Vokes, 7602 Woodboro, stated that the time element was a very important
aspect because it involved property values in the area. There were many people
interested in moving into the area who would not buy a home there because they
would be unable to watch television. Thus, the sooner the City acquired a cable
television franchise, the more beneficial it would be in maintaining their property
values.
78-1645
Anaheim Public Library, 500 West Broadway, Anaheim, California
COUNCIL MINUTES ,- December 6~ 1978~ 7:30 P.M.
Dr. Dyas stated that the City should look at what went wrong with the Theta
franchise in 1973 so that history would not repeat itself. He suggested that
the summary of recommendations made by the Citizens' Capital Improvement Commit-
tee in June of 1977 again be evaluated.
Mr. Velik, now speaking as a concerned citizen and not a representative of the
Cable Company, stated that since a restricted area was involved, it was possible
for the City to grant a restricted franchise which would enable them to get a
feel for the market. The City might retain a recognized CATV consultant, and he
could provide data enabling the City to proceed with the matter on. a timely basis.
Mrs. Denise Reagen stated they were renters, but they wished to have the service and
were going to pay for it. However, she wanted to know if in the future the service
could be discontinued; Mr. Velik indicated that it could be discontinued at any time.
The Mayor thereupon concluded the public input portion of the meeting.
Councilman Overholt stated that he agreed with Councilman Roth that the City
should move forward with deliberate haste to acquire cable television. Council-
woman Kaywood stated as the Council would recall, she previously said she did
not see the need for a meeting on the matter because the Council understood the
problem when Mrs. Foba approached them initially at a Council meeting. She then
posed a question to the audience asking if there was anybody present who was not
willing to pay to hook up to cable television. No one responded.
MOTION: Councilwoman Kaywood moved that staff be directed to initiate the
competitive bid process to acquire a cable television franchise for Anaheim.
Councilman Overholt seconded the motion.
Before a vote was taken, Assistant City Manager Hopkins stated the procedure
they would have to follow would be to employ technical ~onsultants to develop
the bid which could be done quickly and then returned to the Council with that
information.
Councilwoman Kaywood asked if the existing poles and wires could be used or if
undergrounding was necessary; Assistant City Manager Hopkins stated that aspect
would have to be evaluated with respect to present ordinances.
Mr. Bob Masters, 1271 Emogene, requested an amendment to the motion to include
a time limit.
Councilwoman Kaywood stated that would be part of the motion. Assistant City
Manager Hopkins estimated it would take two weeks to make the arrangements for
a contractual relationship and from there, the matter should move quickly.
Dr. Dyas asked if they were to assume that contractual arrangements would be non-
exclusive.
78-1646
Anaheim Public.~ibrary~ 500 West Broadway~ Anaheim~ California
COUNCIL MINUTES - December 6~ 1978~ 7:30 P.M.
Mayor Seymour confirmed that the proposed action was to hire a cable television
technical consultant to make recommendations and, in turn, those recommendations
would be submitted to the Council for consideration and subsequent action. He
also confirmed for Mrs. Foba that the Council was unanimously dedicated to pro-
viding cable television to the Canyon area.
A vote was then taken on the foregoing motion. CouncilMan Kott was absent.
MOTION CARRIED.
ADJOURNMENT: Councilman Roth moved to adjourn. Councilman Overholt seconded
the motion. Councilman Kott was absent. MOTION CARRIED.
Adjourned: 8:06 P.M.
LINDA D. ROBERTS, CITY CLERK