HomeMy WebLinkAbout10/30/1980City Council Minutes
10/30/80 - 2:20 p.m.
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M I N U T E S
ADJOURNED MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO
THURSDAY, OCTOBER 30, 1980 - 12:10 P.M.
SAN LUIS OBISPO, CALIFORNIA
Roll Call
Councilmembers
Present: Melanie Billig, Alan Bond, Ron Dunin and.Gerald Munger
Absent: Mayor Lynn R. Cooper
City Staff
Present: Lee Walton, Administrative Officer; George Thacher, City
Attorney; J.H. Fitzpatrick, City Clerk; Geoff Grote, Assistant
Administrative Officer /Attorney
Vice -Mayor Dunin presiding
F143 1, 2 :22 p.m...The Council adjourned,to Executive Session.
2:35 p.m. The Council reconvened in Regular Session with all Councilmembers
present, Mayor Cooper absent.
George Thacher; City Attorney, presented the problem for the Council's consider-
ation stating that the Sonic Cable TV had arbitrarily raised the monthly charges
for cable service to subscribers in the City of San Luis Obispo which in his
opinion was a violation of the existing franchise agreement. He continued that
the Sonic Cable TV attorneys disagreed as they felt that under the State and
Federal laws they were a deregulated industry and were not required to come
under local franchise. He continued that the only way that this could be
settled would be through a lengthy.court litigation. He also stated that at
the present time the City of San Luis Obispo was involved in a rate study
for cable television and that in the interim he had proposed an agreement which
would give the cable company an interim rate increase until the study had been
completed. Following the study, the rates could then be adjusted up or down
depending upon the facts brought out by the study. He then reviewed in detail
the proposed agreement for interim rate increase for Sonic Cable television
company which would increase their monthly service charges for household and
commercial to $7.00 per month and an increase for additional outlets for house-
holds t•o $1.50 per month and a commercial outlet to .80 per month total.
Harold Farrell, Attorney for Sonic Cable television, stated that his client
Sonic Television had spent great sums of money to update the system upon
acquisition from the prior owners and that without.a rate increase the
company was in financial trouble as they had not had a rate increase since
1974 and everyone knew what had happened to the economy since'1974. Further,
they felt that the company did not come under the previous state laws that
required them to have a franchise with the city. He felt that under the
existing laws they were deregulated and did not have to comply with this
type of regulation. He urged the-City Council to approve the interim rate
increase and pledge the company's support in gathering information needed by
the city's consultant who had been retained to analyse Sonic Cable TV's request
for a rate adjustment. He concluded his comments by stating that if the
interim agreement were not approved today, they would have to proceed under
State regulations and take whatever litigation the city wished to start.
Councilwoman Billig agreed that some rat
not feel the present tactic by Sonic was
any supporting documents or records she
She continued that the independent audit
contractor was the way to go so that the
e increase was probably due Sonic but she di,
acceptable. She felt that without
could not approve the interim agreement.
and study being done by a private
community and city residences would
City. Council Minutes
10/30/80 - 12:10 p.m.
Page 2
have confidence in whatever rates were adopted by the City for Sonic CAble
Television. She felt that this looked like a threat to her.
Harold Farrell stated that he felt that the company had no choice but to proceed
as it looked like it would be months before the city's report had been delivered.
He reminded the City Council that Cable Television had asked for a rate increase
months ago and that the consultant still had not begun his study. He again
urged the Council to adopt the interim rate to avoid litigation.
Councilman Bond stated that he had never agreed with retaining another consultant
to review the tv rates. He felt that a rate increase for Cable Television was
justified and he would vote for the interim increase. Also, he felt that the
citizens did not need cable television service so if they did note -like the
charge they could cancel it. It was not like water or service, electric or
telephone, almost necessities.
Councilman Munger felt the proposed interim rates were fair. He agreed with
Councilman Bond's comment that this was not a needed service.
Lee Walton, Administrative Officer, reviewed for the City Council the progress
on the ongoing rate study.
Councilman Munger felt that deregulation might be the proper way to go in
the future as competition is the essence of good service.
Councilman Dunin did not agree with Sonic Television's action on the rates
although he.agreed that a rate increase was deserved and needed. He never
agreed with the rate study. He felt that a cooperative effort between the
City and company would have been the answer working together to solve their
problems and to arrive at a fair and adequate rate for cable service.
Councilwoman Billig stated that the consultant was proceeding post haste with
the rate study and she would not support this interim agreement under the
tactics used to accomplish it. The cable people could expedite the matter if
they would be willing to open their financial records. The city wanted this
study to proceed as fast as possible.
Councilman Bond reminded the Council that he felt that the city was partially
to blame for delay in arriving at the rate study as he said it was months
before they even got around to getting',a consultant after working with all
the various other cities. He felt the city should have proceeded if they
went that route on their own.
Councilman Dunin stated that as he understood it, the interim rate was to be
$7.00 per month, not including the city's utility tax. If any collections were made
at the rate of $7.80 per month previously billed by the cable company, that
.80C would be credited to the consumer, that this would not just be another
increase for the cable company.
Harold Farrell agreed with that interpretation stating that anything over the
$7.00 per month, not including the city's utility tax would be credited to
each account.
On motion of Councilman Bond, seconded by Councilman Munger, that the City
Council-introduce Resolution No. 4312 (1980 Series), a resolution of the
Council of the City of San Luis Obispo approving an agreement establishing
an interim rate increase under certain conditions for Sonic Cable television,
a franchisee of the City of San Luis Obispo.
Passed and adopted on the following roll call vote:
AYES: Councilmembers Bond, Munger and Dunin
NOES: Councilwoman Billig
ABSENT: Mayor Cooper
There being no further business to come before the City Council, Vice Mayor
Dunin adjourned the meeting to 12:10 p.m., Monday, November 3, 1980.
MINUTES APPROVED BY COUNCIL ON:
11/18/80 —
T .4't F.i t-7rnni ri rk _ N to Clerk