Minutes 81-04-06HINUTES OF .afl4 ADJOURNED REGULAR MEETING
OF THE CYPRESS CITY COUNCIL
HELD
April 6, 1981
The adjourned regular meeting of the Cypress City Council was called to order at
6:02 p.m. on Monday, April 6, 1981, in the Administrative Conference Room of the
Cypress City Hail, 5275 Orange Avenue, Cypress, California, Mayor Vlckie Evans
presiding.
PRESENT:
ABSENT:
Councilmembers Coronado, Lacayo, Mullen and Evans
Councilman Rowan
CONTINU&FION OF CONSIDERATION OF CABLE TELEVISION FRANCHISE STUDY: The City Manager
presented a report regarding this matter dated April 2. Mr. Frank Fry, President
of City Cable Communications, Inc., a cable operator, and Mr. David Edwards of
Dickinson Pacific Cablesystems, were present to discuss cable TV. Mr. Fry's presen-
tation focused on the merits of a municipally owned CATV system; Mr. Edward's
presentation addressed commercial ownership of a CATV system.
COUNCIL~N ROWAN ARRIVED AT 6:07 P.M.
Mr. Frank Fry, one of the founders of the Public Cable TV Authority for the Cities
of Westminster, Fountain Valley and ltuntington Beach, read a statement which des-
cribed possible municipal uses of cable TV. Some of the uses which his multi-city
study committee investigated included: public opinion polling, water meter reading,
access to data processing services, health care and senior citizens services, city
vehicle monitoring, inter-agency communication, public safety applications for police,
fire and paramedic response, televising City Council meetings, discussions of
community problems, traffic control, job training and local job opportunities, and
home education courses, particularly for persons who must maintain continuing edu-
cation. Mr. Fry recommended that cities consider having local override of all CATV
channels in case of major emergencies. He also recommended that cities establish
their own production facilities. Mr. Fry reported that advantages of a municipally
owned CATV system were: a guarantee of city control over the number of channels
a city requires at present and in the future and control over all pertinent factors
including subscriber rates. Ne stated city ownership would allow the CATV revenues
to be used to lower subscriber rates, for technological improvements in the system,
or to offset other City costs. Mr. Fry stated a city could own the CATV system from
the beginning or the system could revert to city ownership after a specified period
of time. lie indicated the city could own the system and contract for its operation.
Mr. Fry estimated costs for an underground cable system at $50,000 per mile, and
$13,500 per mile for an overhead system.
Mr. Dave Edwards, General Manager of Dickinson Pacific Cablesystems, stated their
managing partner, California Cablesystems~ operates the CATV system for the Public
Cable TV Authority for the Cities of Westminster, Fountain Valley and Huntington
Beach. He reported on the technical aspects of installation of a CATV system,
the program offerings and costs, and uses of the public access channels. Mr.
Edwards offered to provide the City Council with samples of Requests for Proposals
of other cities to show the types of services other cities are requesting from their
cable operators. Mr. Edwards stated that under a management contract, his firm
would build and operate a municipally owned system. He indicated his firm would
prefer to own the system since he felt a cable company is more knowledgeable than
cities with regard to marketing aspects. He indicated subscribers are more willing
to pay for the entertainment channels than the public access channels, and the
entertainment channels are more profitable. Mr. Edwards reported his company does
not charge an installation fee if a person subscribes within 30 days after installa-
tion. lie indicated their top fee is $29.95 per month which includes 33 channels,
Show Time and ttome Box Office. Each of the services alone cost $10.95 per month.
lte reported that about 96% of all subscribers take all three services. Mr. Edwards
stated their goal would be to get 50% subscribers in a service area, within 5 to 6
years.
City Council Minutes
April 6, 1981
In response to questions from the Council, the staff reported that, under a commer-
cially owned system, the City would be preempted by the State with regard to rate
increases and by the FCC with regard to programming, for example, X-rated movies.
Mr. Fry recommended that a city's contract specify the city's right of approval
over transfer of a CATV franchise.
RECESS: Mayor Evans called a recess at 7:45 p.m. The meeting was called back to
order at 7:55 p.m. with all Councilmembers present.
CONTINUKFION OF CONSIDERATION OF CITY TRAVEL POLICY: The City Manager presented
a report dated April 2 which summarized the City's current and past travel policy
and history of travel by City employees. Also transmitted was information from
Councilman Coronado regarding a per diem travel expense policy.
~e City Manager explained the present City policy and indicated it has proven
to be satisfactory because of the limited scale of travel by City employees who
travel to conferences, lie reported that he reviews all travel receipts, is familiar
with the purpose of all travel, and the travel expense forms are ultimately subject
to review by the City auditors. ~ze City Manager indicated the City's travel budget
is low in comparison to other cities. The staff reported that during conference
attendance an employee is paid for eight hours a day for work days spent at a con-
ference and is not paid for week-ends. The City Manager stated usually only
department heads are authorized to attend a conference.
Councilman Coronado spoke in favor of the City adopting ~ per diem travel expense
policy. Mayor Evans stated that department heads who attend conferences are under
the direct control of the Council and stated she has not seen evidence of abuse of
the travel policy. She stated she saw no need to change the present policy. Council-
man Rowan pointed out that the travel expenses for the last year represented only
.004% o£ the total City budget and he did not feel the travel expenses presented a
problem.
The City Manager stated the data on City travel is part of the public record and
is kept on file in the Finance Department and available for anyone's inspection.
It was moved by Mayor Evans, seconded by Councilman Rowan and unanimously carried
to receive and file the report.
CONTINUATION OF CONSIDERATION OF REORGANIZATION OF THE BUILDING DIVISION: The City
Manager presented a report dated April 2 indicating this item was continued from the
March 23 Council meeting. Also transmitted was the original staff report from the
Public Works Director dated March 17 which described the proposed reorganization
of personnel resulting from the retirement of the Building Superintendent. Tbe
C]ty Manager recommended the reorganization program on a trial basis for a period
of six months; he reported the reorganization would result in a total annual savings
of $19,000 in personnel costs.
It was moved by Councilman Mullen, seconded by Councilman Coronado and unanimously
carried to: (1) approve the proposed reorganization plan for the Building Division
as described in the staff report; and (2) authorize the establishment of a new
position classification for Building Permit Clerk at Range 19.
Mayor Evans inquired about the status of the City's redevelopment plan. ~e City
Manager stated staff would present a status report at the next regular Council
meeting.
The Council held further discussion in regard to the cable TV issue. Staff reported
that other cable TV consultants had expressed a willingness to meet with the Council.
The Council requested that staff prepare a report evaluating a commercially owned
versus municipally owned CATV system, including financial data, and also report on
cities which own a CATV system. Staff indicated they would schedule a meeting
between the Council and cable TV consultants and provide the Council with sample
Requests for Proposals. The Council was in agreement that they would place the
cable TV issue on the ballot as an advisory measure, at a future date.
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t:ity Council Minutes
April 6, 1981
EXECUTIVE SESSION: Hayor Evans called an Executive Session at 8:45 p.m. to discuss
Item #4 on the agenda, Consideration of City Council Policies and Procedures. The
meeting was called back to order at 9:55 p.m. with all Com~cilmembers present.
ADJOURNVENT: Hayor Evans adjourned the meeting at 9:55 p.m.
bt~YOR OF TIlE CITY'OF CYPRETSS
ATTEST:
CITY ',: OF' TIlE CITY OF CYPRESS
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