CCMIN072269 - Laserfiche WebLink

Mr. Claude Trusty, 7926 Kentwood Way, asked CATV what the proposal is at this time. Mr. Fraser explained the four variations which have been requested by CATV, namely; 1) $6.50 per month with a 5% franchise fee to the City of Pleasanton, 2) $6.50 per month with a graduated franchise fee. 3) $6.00 per month with a 5% franchise fee, and 4) $6.00 per month with a graduated franchise fee. Mr. Fraser stated that CATV is requesting the $6.50 per month with a 5% franchise fee. Mr. Fales reviewed the report of the Assistant City Manager, dated July 10, 1969, and recited the four recommendations of the staff. These recommendations are 1) rate increased for all subscribers from $5.00 per month to $6.00 per month, effective August 1, 1969, 2) the franchise payment to the City be increased from 2% to 5%, 3) accept the offer CATV made on June 16th, 1969, to eliminate the $25.00 installation fee on all aerial installations and, 4) that the City and CATV review the rates every five years. Mr. Fales stated that CATV had submitted a report on how they are providing a higher level of service and are increasing their public relations with their customers. Mr. Fales also reviewed an analysis of rates of return of Tele-Vue Systems and stated that with the City's recommendations, CATV should realize a rate of return of 5.12% over a four year average. Mr. Fales stated that CATV's request would yield them a 6.42% rate of return. Mr. Fales also stated that if the rates and franchise payment to the City were to remain as they currently are, the rate of return would be 2.88%, which he thought was insufficient · Mr. Rickerts, 5410 Winfield Way, reported that he had spoken to Mr. Nelson in the City Manager's Office in Fremont and found out the rates were considerably lower for cable TV in Fremont for a 20 Channel System. Mr. Goddard stated that Pleasanton had two-thirds of its cable placed under- ground, which is costly, and Fremont had over 10,000 subscribers compared to Pleasanton's 2800 subscribers and this would be a contributing factor in Fremont's lower rates. After considerable discussion, it was moved by Councilman Reid and seconded by Councilman Rega that the public hearing be closed. The roll call vote was as follows: AYES: Councilmen Rega, Reid and Mayor Getton NOES: None ABSENT: Councilmen Beratlis and Spiliotopoulos Discussion ensued at the Council level. Councilman Rega asked Mr. Goddard to explain the amortizable assets, which included the Franchise Development Costs. Mr. Goddard explained the breakdown and his company policy which was based on the recommendation of their C.P.A. firm. Councilman Reid stressed the fact that CATV must provide a level of service that is comparable to the charge the subscribers are paying for that service. It was moved by Councilman Rega that the application of CATV be denied. Councilman Rega's motion died for lack of a second to it. It was moved by Councilman Reid and seconded by Councilman Gerton that Resolution No. 69-176, authorizing the increase in CATV rates to $6.00 per month with a 5% Franchise payment to the City of Pleasanton and including the condi- tions recommended by the City Manager, be adopted. The roll call vote was as follows: AYES: Councilmen Reid and Mayor Gerton NOES: Councilman Rega ABSENT: Councilmen Beratlis and Spiliotopoulos The City Attorney advised the Council that it would take a two-thirds majority of the entire Council to pass this resolution. Mr. Fales was instructed to place this matter on the agenda on July 28, 1969, as a matter continued for decision. MATTERS CONTINUED FOR DECISION There were no matters to be continued for decision. SPECIAL. REPORTS There were no special reports scheduled for this meeting. REPORTS OF BOARDS AND COMMISSIONS There were no reports of Boards and Commissions presented at this meeting. REPORTS OF THE CITY MANAGER Matters for the Information of the Council Mr. Fales reported that the Minutes of the Zone No. 7 meeting of June 18, 1969, and the Minutes of the meeting of the Sand and Gravel Committee held on June 11, 1969, have been forwarded to the City Council for their information. 2.