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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