HomeMy WebLinkAboutMinutes - City Council - 1964-01-13 12
City Council, Adjourned Meeting
� Police De.pt. & Council.Chambe r s Bldg.
_ Redding, California
s � . .
� _ January 13, `1964 7:00 P. M.
• �_ � : . . ,
The meeting was called to�order by Mayor Martin with the following Councilmen
present: Chatfield, Denny, Kriegsman, Moty and Martin.
City Manager .Cowden and City Attorney Murphy were in attendance.
The following persons signed the Register:
Sandra Aberg Carl Hockett
Mrs. Esther Taylor Jim Ferguson
Don Jerome Bill. Marx
>
ORDINANCES - Rezoning Panorama Heights
The following ordinances were presented for Council consideration regarding the
rezoning of a por,tion of Panorama Heights:
j�� Ordinance No. 751 - An ordinance of the City Council of the City of Redding
amending 5ection 30�3 of the Redding City Code, 1959, as amended, relating
to the rezoning of certain real property in the City of Redding.
Councilman Moty offered Ordinance No. 751 for first reading.
c� Ordinance No. ?52 - An ordinance of the City Council of the City of Redding
/ `� I amending Section 30-3.of the Redding City Code, 1959, as amended, relating
to the rezoning of certain real property in the City of Redding.
Councilman Moty offered Ordinance No. ?52 for first reading.
CATV FRANCHISE
Mayor Martin opened the discussion on the granting of the CATV franchise by
calling on the committee of the City Council; he stated a formal committee and
an informal committee had been working on this; that Councilman Moty and
Councilman Chatfield had been undecided on certain portions of the applications
and had asked permis sion to act as an informal committee, and he had given
them permission to so do.
Councilrnan Kriegsman stated the formal committee had already presented their
recommendation and he would like to hear the report of the informal committee.
�Z� Councilman Chatfield advised he was concerned with getting service which would
be most reliable and that would give the best coverage to the City at the least
expense to the users. To do this, it was necessary to evaluate what service .
would be rendered for a certain number of dollars, for unless cost was compared
with service there would be no equality in the evaluation.
It was his opinion as far as the area to be served and in time and guarantee of
service, Finer Living, Inc. Is proposal was preferred; as far as type of service
offered and reliability of performance, he could not see much difference. Weigh-
ing all factors of cost, and on the basis of multiple installations over a period
of ye ar s Fine r Living was le s s than it would be unde r W e ste rn Cable.
Councilman Kriegsman replied this was a most important point and the formal
committee was.in disagreement; they had gone over both Western Cable and
Finer Living and given them equal rating; they. had checked the reliability
references of both, and they were of the highest caliber and without qualification.
On type of service, both furnished maps of the area to be servieed and both
guaranteed service to the City of Redding - that he could not see one over the
othe r.
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It was his opi�ion the problem had to be approached on the basis of what is best
and the mos� benefit to the people at the least cost. He felt the informal com-
mittee failed to take into consideration that many people rent their homes and -
it would be necessary f or them to pay the $6. 50 transient fee, if they could not
take^the year contract�under Finer Living, Therefore, there,would be some
offsetting, if not a complete offsetting of some of the figures that accrue to the
benefit of Finer Li'ving over the 25� additional cost. The installation charge of
$24. 75 made. by Finer Living is compared to the $15. 00 deposit by Western
Cable; under clarification, this is a refundable deposit within five years - if the
occupant� of the home wanted to discontinue ser�vice prior to the five year period,
it<would be refundable. - - `
If Wester.n's Cable's use of the ;$15. 00 was figured •over a period of• five years at
the interest rate of 5°jo, this would be approximately $4: 75 and it�ould take
seven years for the extra 25�` to pay the private users for the difference in the
initial cost. Figuring the percentage of persons who are renting and do not
have the ability to sign a year contract, the $6. 50 transi�ent fee is higher. It
woul"d appear that figuring service plus savings with the refundable. $15. 00 deposit,
more�p�eople would have the opportunity to bene£it.in a„shorter period of time
with�`We�stern'Cable!s application, than with the� $24. '�5, installati'ori:charge of
. Fine r Living. . _. - - < ,,.:�. , ,
In addition, there was other criteria to take int�o consideration; extra TV sets,
the time and material charges if the wires do not go through the attic or inside
walls. Western Cable made no extra charge for this. Finer Living eharged
$10. 00 for additional outlets, with an�additional $l. 00 'per month charge, how�
ever under their elarification it was made plain they did no't intend to charge
additional for TV or FIvl�if orily �a single TV was in'volved. ' � '
It was his opinion the original committee report was accurate and reliable;
they recommended Western Cable because it was cheaper. He did not feel that
motels or hotels were of primary consideration; he did not fee'P tihat trailer
homes or apartments should pay less thar� he would have to pay'for his owri
installation�a�nd�service. He had not seen anything iri the clarifcations' that has
changed his thinking.. � That 'for' most people who own-their homes or for the
renters of-homes, -Western Gable`s proposal was the be"st arid fie stood behind
the original �report. � �
Councilman Chatfield questioned the $15. Oa refundable deposit, statirig under
Mr. Kriegsman's analysis he disregarded FM under Western Cable's proposal.
This called for an addi.tional charge of $10. 00; that a great number of people
would take FM and under Finer Living there was no additional "cost, The $24. 75
installation fee of Finer Living was transferable; it was es�timated only 30%
of the people are going t o take Cable TV, and� a refurid'from Western Cable
probably was not more than the transferable po-rtion of Finer Living's offer.
The City Attorney was asked�to give�his legal thinking on the transfer section of
Finer Living, and gave the follo�vi:ng illustr"ation: If you assign your instal�lation
charge to the new•buye'r;''you" do not'�h-ave 'tli'e right to use it a second time, that
you can not make double use of the installation•fee. - � �� -
If�"A" sells to "B" with the `consent `of the franchise holder, he may assign his
cable to the new buyer of .'the ho�ne and rriay, or may�not, reeeive consideration
for� tliis: ' Tf ''A's'' new honie has Cable 'T'V; ow�ier "C" ma�y assign his Cable
TV t'o-him for $5:00 plus any considerat�ion the new owner may attach to the
transaction. -If`the riew h'ome'has no� Cable TV, he' would pay $24, 75 installation
' char_g.e. If "A" does not assigri his Cab1e TV :to '�'B'' when he moves, to g�e.t=cable
he=,p.ays.',$5. 00 if�;his;;new_home'is,wired.for�:cable:;"; $15: 00 if it is not.
..� � , _. c : . , . . _ '
Councilmari 1Vloty said iri "s'oin� �a�reas�he does not agree with Councilman Kriegsman:
�'ir�st; Mr.' Krie'gsman had� giveri equal��rating to the service areas. In going through
� the three -�t applications, only one application gave 100°jo guararitee of service
are�; �arid this was Finer Livin�g; Western Cable; at first glance, gave this
guarantee, but after reading the £ine pri:nt under Map Schedule "G", representing
the present City limits and a small area outside the present City limits, it is
14 y
stated they would cover this.•area, according to Sc:hedule "B" attached; this is
a "remote.area" clause that if installation wa�s not within 300 .ft. . of the'exissting cable
there would be _time, material and easement costs, to get into the home. This
is a 20 year franchise and�he did not think it possible to figure the pre.sent.City
limits as being the .full potential area of. the, City in existence_twenty years from
now. It was his further opinion.that.Teleprompter had disqualified themselves;
they had left certain.areas of the-City out, and had left certain:.areas .and escape �::. -.:::�::
clause s in their .written.bid as well. , ,
Finer Living was the only;a�pplicant who gua;rante;ed without qualification 100°jo
service to the City of Redding now and twenty years from now. That, too,. he
thinks the additional cost for inside TV installations and the additional cost
for F.:M, under Western Cable.could be a very substantial�amount, and would
equalize tlie installation costs. .
Installation cost under F,iner Living:was $24. 75, however the out;-of-pocket cost
under Western Cable was $15. OO .even though. subs.criber may;get this;.back later. ."
However, in addition to the,de:posit of Western Cable, one-half of th,e, subscribers
would pay,additional,charges for time.. and material: to bring ,the cable to,the
inside walls; an additional per.centage would -p�.y-more for rem�ote F. M. _in-
stallations. In his opinion, the out�of-pocket charges for both_Finer Living
and Western Cable were probably on an average pretty close to equal � and then
the rates become significant.
� . _ _ y � - � .
Councilrnan Kriegsman countered.with the. obs.ervation there is.not pla,ce in the
_ City .that the,pole line is beyond 300.ft. Finer Living requires a year contract,
if not a year ,contract you :a,re;a_transient p.aying a higher�fee. A great number
of people eould not sign,.a contract and this would eliminate}a great number of
customers. Under Western Cable, and applicant could cancel at the end of
thirty days.
Councilman Moty, stated this wa,s a very good,point,.;and referred• to the ,sexvice
contract enclosed:by Finer Living. He stated council, called fo:r� a "proposed
service contract'!, which leave•s this. area ope,n to fu,r.ther consideration and
arbitration.between• Gouncil and the suc.cessfu:l appl�icant. �That neither appli-
cant had.submitted a proposed ser.vice comtract that.,would be a�cce:ptable�,
Western Cable was equally, or more unacceptable as they •aren't g�o,ing to.
guarantee anything. Councilman Chatfield then read Paragraph 14 of Western
Cable's subsc-riber's .agreement. , -� _ _ , _ • . ..
� , ' , .
City Attorney Mu,rphy wa_s;a�sked ,regarding Council�'s: prerogative .to negotiate
certain phases.of bi'ds: He stated, yes, these ar� not bids, they are,proposals
in. accordance with the. proeedural provisions. of.our�franchise ordinance; ; This
is. an area;not controlled by P: U. C. ; �the only,,limitations upon Co,uncil freedom
of actian in regard to..the franchise were .those they.had,alr;eady.imposed upon
themselves on the adoption of the CATV ordinances. The successful bidder has
to enter into a franchise agreement with the City, _ and. i£,.the Cit_y requires
clarification.of .any point:that you,feel is not cl,ear.ly spelled out in the proposal,
it_is �vithi-n-•the -provi.nce=to award the -franchise.,to the. successful ;applica'rat,
subje,ct to certain conditions. ,
Daniel Carlton, counsel-for:Western Cable, regrettedhe�could not stay.for the
entire meeting this; evening and,advised Mr._ Asbill will represent th. e interest
of Western Cable. However, before he left he would like �to�make the following
ob.servations: At the-.last council meeting he questioned the wisdom in
calling for clarification�,of bids, being of.the;opinion,clarification, would mean
a. ehange of bid. . Finer Living had changed their bid; nothing had:been,in_,their
application regarding.trailers�or a�ar.tment h.ouses - this had come und:er the
$5. 75 charge. Their proposed contract offers TV signal only at a service
charge of $5. 75; they do not offer FM se�rvice, :these are under extra�outlet
provisions under the terms of thei;r c;ontr.act. , Finer Living agreed "to pro-
. ,.
vide a si,gnal,wire" which will afford reception of television signal in Paragraph
1: Nothing in .the: contract refers to_ FM. Under �their bid.there was. $1. 00
_ �
extra for the outlet and $10. 00:for service, ,:arid this has been changed.
- 15
Certainly Western Cable had no opportunity to consult on this matter, Under
the transfer of Finer Living, ;r-en,ters are committed to a charge of :$6. 50 and
$10. 00 which they do not get,back. , Western Cable endeavored to analyze their
bid with regard to transient.service; with. the deposit .returnable in.five years.
This comparison indicated Finer Living with a rate of $24, 75 installation
charge; Western Cable-with a $15.;0.0 returnable deposit for a maximum of
five year s. :� .. � -
. ,. ,,. .. . , . .
W,esterns.Cable:had-_s.ubmitted a .proposal they thought was binding - now.it is
suggested� thi_s .is:ne.gotiable: He di�d not think. this fair. If you can .change
the contract, -.if this is.negotiable, and if you .are .going, to accept ,the rates,
this does not seem right. The_c_ontract influences. the rates.
Western Cable was; 2�5�` highe;r in one major category, taken care of in a large
part by the difference irn.the installation. charge. The seven member's of the
City Council of Chico, and the three members of the Chico Comznittee had been
,unani•mous in their.recommendation by the Committee that Western Cable be
awarded the.-franchise. If:.both..Redding and Chico awarded the bid to V+Testern
Cable, there would b e an automatic reduction of:25.� in their rates, which
would e.q.ualize ,Finer�Living'.s, proposal. , � .�
Finer Living had committed itself 1bo the pre.sent bouridaries of the City; Western
Cable. had,an, application.on.file in.the county to serve Enterprise and other
areas of. the �community. If We.stern. Cable had been outbid, it seemed strange
that two committees working�independently came up with the.favorable bid
for Western Cable. Western Cable's installation fee was more favorable
to the subscriber, their transfer rate was more favorable to the subscriber,
,their, rental.,.service� was more favorable to the subscriber, and their contract
was not based on the. premise� of one year. . '
Councilrnan Moty replied he had se.rious doubt,s about the a.pplic_ation of Western
Cable. Regarding the TV service mention by Mr Carlton, Finer Living's
proposal offered 7 channels, with additional service to be re'ndered.. In addition
their application calls for at least 3 F. M, stations and weather scan.
, _� _ , . . �. ,
That it was stated Finer Living's application did.not guarantee 100%.service -
the proposal states "all subscribers within the boundaries of the City of Redding".
Reg�arding.W�este:rn.=,.C�a:ble's.:'r:emote��are.a �clause;�iif-'an= ins;t'alTa�tion_:is..<be.yond;�3'.00
. .feet;of.�ani_exi:s.ti�ng+..distribu-tion cab�le�; �s.er:Vice:' will�b.e'�made�avaiTab:le��o��_�the�ba:s�s
..of: cost:.of>�maxte;ria;l; la.bo"r::arid�e-asement:x�::H'e�th�eri_;had:�Gouncilman�Chat�fi.eld read
:from�.;�lVestern��Gable:'-s;px�opos'a� - Sche�dul.e B, 2nd Pag,e.
Councilman Kriegsman again stated 300 ft. did not exist as there are no�poles
in the.City �beyond-85. f:t. so this was not�a proble_m. In his opinion it was a
mis�take, to;let people ehange their bids, that_actually clarification had become
a bid:change. He ag�eed with Mr. Carlton, .if we nego.tiate parts of the proposal
. let us negotiate,�on a1�1. The formal committee made the only recommendation
they could, and if a mistake was made they leaned backwards the other way.
That if the_council- £e1t the original proposal of rFiner Living was better, he
would like to hear their reasoning. This was the cr.ux of�the whole situation
otherwise, throw the bids out.
, , , �. , . . .
. _ . . . . + .
- Councilman Chatf.ield state,d he_.did �not feel that Council is bound to agree: with
, � the committee.report. As councilmen they make .their own�decisions.; he did
not feel when you have fine. print in both-bids you can make a decision on
assumptions. �..That it was interesting to.note,. whether by design or oth`erwise,
Mr. Caxlton,did not talk abo.ut ''guarantee of service" and then quoted,Paragraphs
, . , . �
12 and 14 of Western's pr,oposal. , That he vua:ntec� to state, further, he �had.not
talke,d- with anyone from Finer Living, .except once to John Spann on a point in
doubt; that no local pressures had been placed: on him at all, in.fact, he had not
talked with any applicai�ts.
Mayor M'artin,�'too;�'commente.d in no way nor in any manner had pressures
been put to bear on�him�, This was a difficult decision, a difficult situation and
there could onlybe one winner with many losers.
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Mr. 5pann then introduced Mr. Goddard, one of the directors of Finer Living,
Inc. , vVho �read a seven page prepa'red�statement regarding Finer Living's
appli�ation for a franchise�-in the `City of Redding. He briefed his experiences
and stated for over one and one 'half'years• he and hi`s associates liad' exp�lored
' the�possibilities of. installation of a 'CATV system in Redding, Red Bluff and
Chico. They had'in advance procured the cooperatiori of Charinels 7 and 12
and quoted from tHe Federal Communicati•on'Cor'rimissiori:� � � '
"Where the CATV system to be served by the proposed mi�rowave' ,
' s'tation operates within the Grade A service area of a regular television
"�' ''`` b°roadcas't 'station; 'tlie` rriicrowave �station will b"e `au"tli�orize'd only. if�the"
" CATV'system to t5e served`agre'es`that it' wil°1`riot�duplicate either
' ' simultaneously'or fifteen days prior or subsequent tliere.to�a prog�ram -
broadcast by the televisiori'`stati'on'�-`="�=-": • ' � ' �
. A'complete anaTysis'of�th-eir proposai was mad`e'," tog'etfie"r��with financial `
responsib'il'ity. M'r�`God`darcl c'oricluded�witli' tlie� following: ' ` `` � - ` `
, ... _. . '+:� _ __ � _• . ,.. - . .. ' . . _ � . . .
' ' � ' ''Firier i;iving's�b�id''is supe"ri'o`r�in the'following"to�any' other appl'ication:
"��'`� T. It provides`a `irio�re 'comple'te uniriterrupted programniing without '
� ' qualifications
2. It provides the best of equipment, •whic`h �is going'-to� cost Finer
Living, Inc. a great deal of money.
3. 'Its rates 'are 'no't disproportionate`in tHe over='all picture `to those` ��
' � ' ' � specified'by We�stern Cable, and� taking�irito corisideration
the.hotels arid motels rates, which are a very important part of the
' CATV sys.tem to this city; 'Fine`r�Living; �Inc. �iri'the� overall picture'
� is "much� ch'e'ape'r: ' - .. .. �; _ , .. ., . . .
_ . , . ., _ _. . .. . , . . . . . . . , .. . _ - :
-" �'And finally, I� sliould 'like'to 'say that�a'great�deal� of time 'and consideration
has been given to the formatitin`of Firie`r Livirig; Iric. , its officers arid�
ownership. As stated in our application, it has been our experiences
' � that'community ow'ne�r`ship is vital and that ownership by people in the
community of this system guarantees a high quality of service and a better
operated' service:�" ' " ' �
. _ _. . �..-_ , � � . . . .�., _ . � , , _... . � .
(Mr. Goddard's complete report on file in the office of the City Clerk,
� ° - ' i;egisTativ`e'File` 1Vo:' 424`) . , . r - �
. . . .. _. ..� i . . . � . a � . . � , � , ..
Mr: Johri`Fitzpatrick; President 'of �Firier I:,iving�,� �Inc.", stated it was h'is� pleasure
to.have all the directors of the company��work on the Cable TV system. �He
buys�'TV s�ervice himself and he must be sure he is getting the best. It was to
his interest to have the best for the City of Redding, and lie assured'the listen-
ing group no pressures had been placed on anyone.
Furtlie `r, Finer Living wa's adequately financed arid�he was pr.oud to� be 'as'sociated
wi'th' tlie'se people; lie warited this to�be a coirimuriity busiriess with local; resgonsible
business people offering the lowest rate and the most definite approach to the
TV coritract; and he`�th`ought 'Finer Living, Ine. , was- entitled to this franchise,
Councilman Chatfield then asked the City'Attorney to explain the proper p'ro-
ced'ure for- Council action this everiing. � ` ' � � !
The City Attorney stated there were two choices: To accept the offer of one
of the applicants as he'has nzade it; which�.would include propos`al as �originally
submitted.; plus' any clarifications that have been submitted'pursua'ri't''to tlie
request of 'Council, if these represerited ariy chariges or caused'the ori�ginal
` propo'sal t'o�be"changed or'clarified; or accept the proposal of �one of the
applicants, subject to "a' con�dition o"'r' c'onditions �a's counci'I s`e'es fit;` if�' some
portion,of the proposal is s.til'1 unsatisfactory to�them' as it relates��to=�tlie '
citizens of Redding, In other word's,�.accept the'propo`sal as made`;` or'a'ecept
the proposal's�bject to conditio�is: ' - ' � � " " ' ' � � '
MOTION: Made by Councilman Chatfield, seconded by Councilman Moty, we
accept tlie-proposal of Finer I�iving;' Iric. ; siibject'to=City Coizncil having control
ariti.;power to approve' 'or disapp'rove the `cusfomer eoritract: � �
. � , � . .. - � .� .. . , .
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Councilman Kriegsman stated he did not feel the people of Redding
would be hurt if the franchise was awarded to either firm; �no: one had
talked with him and he appreciated this. Th�e CATV was a community
affair and he was firmly convinced the original report was correct:
However, one of the most undesirable features of Finer Living's pro-
posal was the one year contract; he questions the propriety this could
be changed, however he does not question the legality. If this is
eliminated, it eliminates a great deal of the problem of the renter being �
tied to a year contract. The CATV franchise was closely united to
City's well being, and council should be fairly unanimous in their decision.
He still thought Western Cable has the best offer for the most of the .
people in Redding, without any changes or conditions, and he had no '
qualms about this. He had to make his: own points clear, his conscience
was clear on this.
Councilman Denny said that as co-author of the committee's report he '�
had arnple opportunity to analyze the applications very completely, and
as one about to vote on a motion, he feels certainly obligated to state
his position after the clarifications and conversations have taken place. ,
He would like to state the method the committee used. First, there
was the analyzing of the applications'without prejudice, to set forth the
features. in favor of a particular applicant and tho`se not in favor of the
applicant. He would .like to call attention to the fact the first stateme nt
the committee made was to emphasize the value of the significant high
regard the local representation were held in Redding and Shasta County.
This was a substantial consideration in .the minds of the committee.
After analyzing, complete evaluation and recommendation was made by
the committee, trying to distinguish very carefully between interpretation
against evaluation. The committee felt the job of evaluation, in view of
the many omissions and ambiguities.was a matter for them to decide, not
on the basis of consultations with re�presentatives of the applicants, or
clarifications. If there were clarifications, the committee felt they
should make them, if the committee's interpretations were not acceptable,
then the franchise would not be awarded.
After analysis was made, the committee looked at what it had done and
overwhelming consideration was made by the committee on the cost to the
subscriber. The committee came finally to the hard reality of rates and
installation fees, and he felt and still feels he would have some difficulty
representing to a subscriber the logic of recommending rates in one case
$24. 75 against a case of a .$15. 00 deposit. That some of the ramifications
and interpretations were valid, however he had placed himself in the place
of a subscriber, perhaps a short term subscriber and reached the very
difficult decision, fully aware of the friendships involved. That he .too,
struggled with his conscience and would have to vote in accordance .with the
recommendations made by Mr. Kriegsman and himself.
Councilman Moty stated he had received the committee's report, had gone
through it rapidly, then in more detail. Before there were any clarifications
he seriously questioned some of the assumptions made by the committee..
He though't= some of the assumptions were in error. To him the decision
was clear cut, that Finer Living, Inc. 's proposal was the best for the least
amount of money.
Voting was as follows:
Aye s: Councilmen - Chatfield, Moty and Martin
Noes: Councilmen - Denny and Kriegsman
Absent: Councilmen - None
There being no further business, on motion of Councilman Moty the meeting was
adj ourned.
APP .
L r
Mayor
Attest: �
.;/� ,. t `. /�= , ��
�,��
City Clerk
.. ._ __.. .
s