1987 MAR 25 CC MIN6943
ADJOURNED REGULAR CITY COUNCIL MEETING — MARCH 25, 1987 -7:00 P.M.
MINUTES OF THE PUBLIC HEARING
CALL TO ORDER By Mayor Pro Ten Schuldt at 6:30 P.M.
PLEDGE OF ALLEGIANCE led by Bob Wynn, Director of Parks and
Recreation.
ROLL CALL
Councilman Anderson - present
Councilman Jacobson - present
Mayor Pro Tem Schuldt - present
Councilman West - absent
Mayor Siadek - absent
CLOSED SESSION
Pursuant to GC § 54956 a Closed Session will be held on the following matters:
Section A: E1 Segundo vs Group W Cable
At the hour of 6:30 P.M. Council adjourned to the Mayor's Office for Closed
Session.
Mayor Siadek arrived to Closed Session at 6:35 P.M.
Councilman West arrived to Closed Session at 6:48 P.M.
At the hour of 7:00 p.m. Council recovened in the Council Chambers with
all members present and answering roll call.
SPECIAL ORDER OF BUSINESS 7:00 P.M.
1. PUBLIC HEARING- for the purpose of considering the application of Paragon
Communications, d /b /a Paragon Cable for transfer of the Cable Television
franchise now held by Group W Cable , Inc. under Ordinance Number 754, as
amended, which franchise is scheduled to expire in February 1991.
City Council will consider Paragon's application for transfer of the
existing franchise with conditions to be established in a new ordinance
effecting the transfer.
The Mayor announced that this was the time and place heretofore fixed for a
Public Hearing for the purpose of considering the application of Paragon
Communications, d /b /a/ Paragon Cable for transfer of the Cable Television
franchise now held by Group W Cable, Inc. under Ordinance Number 754, as
amended, which franchise is scheduled to expire in February 1991.
The Mayor asked if proper notice of the hearing had been given. City Clerk
Ron Hart stated that notice of the hearing was administered and published by
the Legal Department. Mayor Siadek stated those files would become part of
the hearing.
Mayor Siadek asked if any written communications had been received. City
Clerk, Ron Hart stated a letter had just been received from:
March 25, 1987
SPECIAL ORDERS OF BUSINESS (continued)
1. Joe and June Dubie, residents requesting that the $8.00 monthly cable charge
be retained. They also requested that Council consider reinstating Fire
Department Garage inspections.
It was the consensus of Council to open the Public Hearing to public input.
1. Fred Dressler, V.P., Franchise Development, American Teleivision &
Communications Corporation stated his Company's intentions for
consideration under the present franchise. These include upgrading and
rebuilding the present system to 54 channels within 18 months after
transfer; replacement of all amplifiers and a change in signal feed from the
present one in Santa Monica to one of local origination. Mr. Dressler stated
that his company desires a good working relationship with the City and
assured Council the rebuild plans would be brought before them for advanced
approval. Mr. Dressler concluded by stating he felt the settlement was fair
and equitable for both sides. ,
t
Council expressed concern regarding three areas that were not mentioned in
the settlement: 1) An agreement to maintain current consumer rates; 2)
guarantee a minimum of $75,000 for operating local program origination; and
3) add live cable casting cabability from the high school, Joslyn Center and
the school district board room.
Mr. Dressler stated his company was here to accept the present franchise
aggreement and was not aware this would be a public negotiating session.
Mr. Dressler further stated these were all additional items that should be
the framework for the negotiating of a new franchise. Mr. Dressler concluded
by stating that the "City has the absolute assurances from the Company that
it will get a rebuild within 18 months; that Paragon will live up to all
existing terms and conditions of the current franchise; the City will get
cash payments right now; and the City, right now, is getting indemnification
against the continuation of a lawsuit or threat of a future lawsuit by
another company."
At the hour of 7:50 p.m. Council adjourned to the Mayor's Office for Closed
Session under Governmental Code Section 5495.9 (a) E1 Segundo vs Group W
At the hour of 8:20 p.m. Council reconvened in the Council Chambers with all
members present and answering roll call. The Mayor announced NO ACTIONS were
taken.
At the hour of 8:30 p.m. Council recessed.
At the hour of 8:35 p.m. Council reconvened in the Council Chambers with all
members present and answering roll call.
At the hour of 8:36 p.m. Council adjourned to the Mayor's Office for Closed
Session under Govenmental Code Section 5495.9 (a) E1 Segundo vs Group W.
At the hour of 8:41 p.m. Council reconvened in the Council Chambers with all
members present and answering roll call. The Mayor announced that NO ACTIONS
were taken in Closed Session.
2. Mark Jones, 770 W. Imperial requested that Homeowner groups be considered
in future franchise negotiations.
Seeing no other public input, it was the consensus of Council to close the
Public Hearing.
(2)
March 25, 1987
Council Minutes
ti94
h.445
SPECIAL ORDERS OF BUSINESS (continued)
City Manager Art Jones summarized and reviewed the conditions of the
__Franchise Transfer. He stated that Paragon had agreed to the following: 1)
to accept and comply with all the provisions of the existing franchise
ordinance; 2) to rebuild the system to a minimum of 54 channels within 18
months and provide a new feed to the system; 3) to give the City guarantees
on the rebuild in the form of a letter of credit established in the amount of
estimated cost of the rebuild; 4) to a provision that if the rebuild is not
finished in 18 months the City can assess liquidated damages in the amount
of $500.00 per day for everyday the rebuild is not completed in that period;
5) to agree to accepting this franchise to comply with those specifications
that will be attachments to the ordinance and to submit those final
specifications to the Council for their consideration and approval before
the rebuild takes place; 6) to extend some customer protection guarantees
which are not now in our existing franchise; 7) to establish a phone number
which will be available without limitations and inquiries will be
acknowledged within the next business day; 8) to provide basic service to
all the City and school district facilities at no charge; 9) to maintain the
two existing educational and governmental channels operating in the
community; 10) within 6 months Paragon will provide additional guarantees
and a higher level of service as far as planned .interruptions are concerned
and notices to subscribers will be given in advance of interruptions; 11) to
provide an extensive system of maintaining records for customer complaints
and request for service that will be open to inspection by the appropriate
City representatives at any time; 12) to conduct at least every 18 months a
customer satisfaction survey among the E1 Segundo subscribers; 13) to
negotiate with the City and attempt wihtin 12 months to reach terms on a new
more modern franchise; 14) to pay the City $150,000 in advance to assist the
City in reimbursing its costs incurred through this whole franchising
process; 15) to reimburse the City for actual costs incurred in negotiating
the new franchise up to a maximum of $25,000; 16) to use their best efforts
to obtain actual releases or dismissals with prejudice of all the existing
litigation that we are involved in with Century and others; 17) lacking the
ability to obtain outright dismissals to indemnify the City against any
future costs the City may have with regard to that litigation.
Mr. Jones concluded that Paragon had agreed to a change of language in
Exhibit E that stated the City will seek live broadcasting capabilities from
E1 Segundo High School studio, E1 Segundo City Library, Joslyn Center and
the board room of the E1 Segundo Unified School District. Art Jones stated
these additions will be "on the table" when the City negotiates the new
franchise agreements.
Additionally there were minor matters in the original ordinance drafted that
the City suggested modifications to: Page 4, subparagrah 1; include the High
School studio and in subparagraph 2 at the bottom of page 4 add the City
Manager or his designee may make those inspections referred to. It was noted
that in addition to the new ordinance adopted there were a number of other
things that needed to be accomplished before the final transfer. These were
agreements that Paragon must enter into with the City and related to the
agreed conditions aforementioned.
City Attorney Dolley stated the Ordinance would include those modifications
and changes as stated by City Manager Arthur Jones.
City Attorney Dolley read the title of the following:
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO APPROVING! (1)
THE ACQUISITION OF THE STOCK OF GROUP W CABLE, INC., BY A CONSORTIUM; AND
(2) THE TRANSFER OF A FRANCHISE FOR A CABLE TELEVISION SYSTEM FROM GROUP W
CABLE, INC., TO PARAGON COMMUNICATIONS.
Mayor Pro Tem Schuldt MOVED, Councilman Anderson SECONDED to read by title
only. MOTION CARRIED BY UNANIMOUS VOICE VOTE.
Councilman West MOVED, Mayor Pro Tem Schuldt SECONDED to introduce the
Ordinance. MOTION CARRIED BY UNANIMOUS VOICE VOTE.
Final adoption of the Ordinance will conclude at the next Council meeting
of April 7, 1987.
(3)
March 25, 1987
Council Minutes
PUBLIC COMMUNICATIONS NONE
FURTHER NEW BUSINESS NONE
ADJOURNMENT
At the hour of 9:08 P.M. Council adjourned.
R
I
RONALD L. HART, CITY CLERK
(4)
March 25, 1987
Council Minutes
-ti916