1984-07-31 Special CC Meeting� ��
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SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF ALAMEDA
HELD TUESDAY JULY 31, 1984
The meeting convened at 7:30 p.m. with President Diament presiding.
ROLL CALL
Present: Councilmembers Gorman, Hanna, Lucas, Monsef, and President Diament - 5.
Absent: None.
HEARINGS
84-658 Hearing regarding penalties for late construction of the Cable Television
System.
The City Attorney stated that under Section 6, construction schedule of the Franchise
Agreement, B, penalties are imposed for delays as much as S1,000 per day for particular
items, and the penalty cannot be imposed unless a hearing is held wherein the
Franchisee may prove delays are the result of causes beyond the control and without
fault or negligence of the franChisee. He further stated this is an evidentiary
hearing and comments should be addressed to that evidence.
Barry Wilson, Vice President of operations of United Cable Television Corporation,
stated that two documents had been submitted to the City, a "Completion Memorandum"
and an "Excusable Delays Memorandum." (Note: Both dated July 27, 1984)
Mr. Wilson stated that the "Completion Memorandum" certified that except for certain
specific items, the system is substantially CO0plete, He stated United was specifically
requesting deferral on the Hayward interconnect and the ENG Cable, the local origination
and split screen system for the INET, as well as the INET itself.
Mr. Wilson stated that he felt the penalties were not enforceable, and summarized
the "Excusable Delays Memorandum" stating that delays had been caused because
the fiber optic system was new, delays regarding contract performance, and delay
in transfer of the Franchise to a limited partnership. He requested the City assess
no penalty against United Cable Television.
The City Attorney requested the letters referred to by Mr. Wilson be made part of
the record.
The City Clerk stated that the two letters referred to by Mr. Wilson, from United
Cable Television of Alameda, dated July 27, 1084, were on file.
President Diament declared the public portion of the hearing open, and the following
persons spoke on the Cable Television Franchise addressing such issues as the
proposed penalties, the limited partnership and construction difficulties.
Chuck Corica, 1000 Post Street
William Thomas, l5l8Pearl Street
Joseph Sullivan, 1221 Liberty Avenue
July 31, 1984
Charles Tillman, 2415 Roosevelt Dr,
Fred Scullin, 1120 Chestnut
Louise Ravet, 1816 St. Charles
David Needle, 2981 Northwood Drive, stated the fiber optic system has a problem
relative to sets with remote control, and there was a technological solution that
could be implemented.
The City Manager noted that could be explored with United, and President Diament
indicated she had his address.
The Clerk read a letter from John Barni, Sr., 1380 East Shore Drive, in support of
imposition of the penalty into the record.
Larry Norwood, representing W. B. Skinner, Inc., stated his company had performed
work on the system and had not been paid. Upon his inquiry as to recourse to
collect the money, the City Attorney stated that he shoud sue the people who owe the
money, and it is not the City.
President Diament declared the public portion of the hearing closed.
Councilmember Monsef made a motion, seconded by Councilmember Lucas, that the Council
take three actions: 1) Stop the clock for penalties as of July 27, 1984; 2)
Impose a penalty in the total amount as of July 27, 1984; and 3) Proceed to negotiate
with United with regard to the cost for the deferred items.
In response to inquiry of Councilmember Gorman as to whether the intention was that
the penalty start again if items were not deferred, Councilmember Monsef answered
"Yes."
In response to inquiry, the City Attorney stated that the motion could be rephrased to
say that the penalty will not run between July 27 and 30 days from notification to
United Cable Company by the City Manager that the penalty will start running again.
Upon request, the City Attorney phrased the motion as follows:
1) Acceptance of substantial completion of the system as of July 17, 1984, with
exceptions listed in the letter (from United Cable dated July 27, 1984) excluding
the 18 single - family dwelling unit LDU's listed under exceptions. The sub-
stantial completion does not apply to those exception items, but the penalty
will not run during the period of time that they are being negotiated for
the purposes of deciding whether they will be deferred. After negotiations are
concluded, or either side breaks off negotiations, the City will give United
notice when the penalty will begin running again on those excepted items.
2) The penalty of
326,000 will be assessed.
3) United be required under the appropriate provisions of the Franchise to renegotiate
with the City as to those excepted items in Part 1 and any items which they have
claimed create problems with FCC or the City feels creates problems with FCC.
Councilmember Monsef accepted the motion as phrased by the City attorney, and it carried
by the following roll call vote: Ayes: Councilmembers Gorman, Hanna, Lucas, Monsef,
and President Diament - 5. Noes: None. Absent: None.
ADJOURNMENT
There being no further business to come before the meeting, the Council adjourned at
9:25 p.m. The next regularly scheduled meeting will be held Tuesday, August 7, 1984,
at 7:30 p.m.
Respectfully submitted,
July 31, 1984 DEEN SPEEGLE. City Clerk