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HomeMy WebLinkAboutMinutes 83-11-21044 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CYPRESS C1TY COUNCIL HELD November Z1, 1983 The adjourned regular meeting of the Cypress City Council was called to order at 7:35 p.m. on Monday, November 21, 1983, in the Cypress City Council Chambers, 5275 Orange Avenue, Cypress, California, Mayor Otto Lacayo presiding. PRESENT: Council Members Coronado, Kanel, Mullen, Partin and Lacayo ABSENT: None Also present were Darrell Essex, City Manager/City Clerk, and David Barrett, Assistant to the City Manager. PLEDGE OF ALLEGIANCE: Mr. Essex led the Pledge to the flag. CABLE TELEVISION PROPOSAL FORMAL PRESENTATIONS. Mr. Barrett stated that this meeting was called to allow the two companies which had responded to the City's Request for Proposals for Cable Television an opportunity to make a formal presentation before the Council and discuss and clarify their proposals without evaluation or comparisons. Mr. Barrett then introduced Mr. Carl Pilnick of Telecommunications Management Corporation, who is the City's consultant in considering the proposals. Mayor Lacayo announced that Copley/Colony Cablevision of Cypress, Inc., would make their presentation first, followed by Group W Cable of Cypress. Mr. Roger Turner, President of Copley/Colony Communications, introduced the members of his staff and reviewed the history and qualifications of the company and its installations in other cities. Mr. Michael Isaacs, consultant for Copley/Colony, discussed the types of systems that have been designed by Copley/Colony to meet the varying needs of communities the company presently serves and stated that a 550 rather than the requea:od 450 megahurtz system would be installed. He reviewed the proposal and delineated those features which would be provided exclusively for Cypress in response to the City's indicated standards. He then introduced a video presentation in which representatives of cities currently served by Copley/Colony discussed their individual experiences with this company and recommended it. Mr. Bill Rosendahl, Regional Director of New Markets Development, distributed copies of an "Investor's Guide to Westinghouse," and an "Executive Summary," outlining the company's proposal, to the members of the Council and discussed the company's policy of decentralized management in which responsibility is maintained at the local level and is responsive to each community's needs. He then introduced the members of his staff who would be discussing the proposal. A video film presentation was shown, emphasizing the compmay's history, technological innovations and its accomplishments in CATV construction and service. Mr. Artie Ivy, Regional Director of Programming, discussed the programming planned to meet the requirements of the City of Cypress. Mr. Mike Thatcher reviewed the construction portion of the proposal and summarized construction practices of Group W. He stated that his company feels very comfortable with using a 450 megahurtz system because it has proven adequate in past experience. Mr. Dick Waterman, District Manager, Coastal District, Southwest Region, discussed the technological and economic advantages provided by his company's size and experience and its affihation with Westinghouse Electric Corporation. Mayor Lacayo announced that questions would now be entertained from the members of the Council. Councilman Mullen questioned whether advertising would be allowed on pay TV channels. Both companies responded that advertising is contained only on local channels, not pay channels, and provides an additional service to the community as well as additional revenue to the cable company, which can be passed on to the consumer in the form of lower rates. City Council Minutes November Z1, 1983 Councilman Mullen questioned Mr. Ivy about his statement regarding the availability of resources from other cities, such as production facilities, and how the benefit of these could be assured after award of the contract. Mr. Ivy stated that these would be available because Group W owns the equipment and that the language of such an agreement could be worked out during franchise negoiations and necessary assurances given at that time. Councilman Mullen inquired of Mr. Waterman how savings could be passed on to consumers, since the fees for services are fixed. Mr. Watermanstated that, because of the economies of scale, his company would theoretically be able to operate more efficiently and pass those savings on to the subscribers by forebearance of rate increases in the future. Councilman Coronado asked Mr. Thatcher of Group W to indicate in which area of Cypress construction would be initiated and whether it would be aerial or underground. Mr. Thatcher responded that his company is proposing to extend their Buena Park head end into Cypress first and whatever the utility district is at the point of insertion is what would be constructed first. He further stated that equipment and materials can be pulled from local regional warehouses when necessary. Councilman Coronado then inquired regarding the public relations group which would be sent into the community prior to construction. Mr. Thatcher responded that these employees would contact residents of each community prior to construction, discussing the project with them and distributing pamphlets explaining the type of construction and the time frame. Mr. Isaacs indicated that Copley/Colony would also carry out an extensive program to inform the public regarding construction, and this would begin with a mailer explaining practices and schedules. He stated that contactors, subcontractors and all employees of the company would be wearing badges to make them easily identifiable to the public. Councilman Coronado stated his concern about the compaction work to be done in streets after construction and emphasized the importance of the preservation of the present condition of these streets. Mayor Lacayo asked for a nontechnical explanation of the system. Each company gave a brief description of its system, and Group W representatives indicated that this would be found on pages ]4 and 15 of their Executive Summary. Mr. Isaacs referred to Form $, Tab 11, page 10 of 13, in their proposal for a complete channel allocation chart showing programming of each individual channel. Councilman Kanel inquired regarding the differences in indicated mileage of cable that would be installed to serve Cypress. Mr. Isaacs explained that Copley/Colony did not include the lateral cut distance in the mileage quoted and includes underground installation in only one side of the street. Mr. Barrett confirmed that the staff was satisfied that this accounts for the differences in the mileage indicated by the two companies. Councilman Mullen asked if lateral cuts would be made only on residential street or also on arterials. Mr. Isaacs responded that Copley/Colony would use boring methods and not cut laterals in arterial street, but would cut across residential streets. Mr. Thatcher responded that this could be negotiated after the franchise was awarded, but usually in residential areas lateral cuts would be used and boring would be done in arterials. Councilman Mullen stated that he would feel uncomfortable about having a great number of matters left to negotiation after award of the contract. 046 City Council Minutes November 21, 1983 In response to an inquiry by Councilman Kanel regarding the construction period, Mr. Thatcher indicated that Group W would require approximately 24 months, depending upon coordination with telephone companies. Mr. Isaacs stated that Copley/Colony estimated Z1 months to final completion, and is fully prepared to enter into fully bonded contracts indicating construction deadlines. Councilman Kanel inquired as to which areas of the City would receive service first. Mr. Waterman stated that the most cost-effective method is to build into a contiguous area from the existing head end, which is in Buena Park. Mr. Isaacs stated that Copley/Colony is proposing their head end in Cypress to be located at Cypress College and that construction would emanate from that point. In response to an inquiry by Councilman Kanel, the City Manager stated that he did not believe there would be any legal problems involved if the members of the Council wished to personally make inquiries or visit other installatlons by either company, but that this should be done at City expense. The Mayor thanked both companies for the professional manner in which their presentations had been made. Mayor Lacayo then adjourned the meeting at 9:35 p.m. to 6:30 p.m. on November 28, 1983. ATTEST: CITY' CLERK ~5~F THE.C/I"FY OF CYPRESS - 3 -