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HomeMy WebLinkAboutCC 1979-12-17 Minutes MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820, DECEMBER 17, 1979 - 7:00 P.M. 1. Mayor Faram called the meeting to order December 17,1979, at 7: 00 P. r·t CALL TO ORDER 2. Present: Dick Faram Jim Wood John Michener Sid Cavanaugh Jim Cato Dave Freeman Lena Mae Reeder ~1ayor ROLL CALL Councilmen Councilwoman STAFF: Tom Paul Jeanette Moore Jim Anderson Richard Albin Margie Nash Bill Betts City Manager City Secretary Director Public Works City Engineer Planning & Zoning Commission Civil Service Commission ABSENT: Denver Mills Councilman 3. The invocation was given by Councilman Michener. INVOCATION 4. Councilman Jim Wood advised the Council they had a letter from CONSIDERATION AND one of the companies that had applied for a franchise for APPROVAL OF CABLE Cable TV stating they wish to withdraw their request. TV CONTRACT Councilman Wood stated basically the Council was dealing with POSTPONED two companies who had an application on file at this time. Councilman Wood stated he ,had attempted to draw up some considerations that the Council had asked for from the companies, such as assets, liabilities, insurance coverage and numerous other items. Councilman Wood stated there were numerous difficulties in the area of the contract. Councilman Wood stated there were three companies that were requesting a franchise. A questionnaire was sent, two of the companies returned the questionnaire completed; Austin and Tarrant. Some of the ,questions asked were about local stockholders. There were some local stockholders for Tarrant, none for Austin. All companies agreed to try and get a 5% franchise fee for the city. A 3% fee is the usual fee; the city would get the other 2% only if the FCC approved it. Councilman Wood stated the local stockholders for Tarrant were Bill Meier 5%, C. A. Simson 3%, Jimmy Payton 3~;, ~iarion tl¡assey 3%, Bobby Fuller 3~~, W. G. Ragley 3%, with Storer Corporation maintaining 80% in the local company. December 17, 1979 Page 2 Councilman Wood stated one other question asked was the proposed times the companies would complete the facilities. None of the times were realistic. Councilman Wood stated there were two questions in the contract that had been brought to his attention by individuals on the Council. Councilman Wood stated most of the companies had no objections to ~igning what the city wanted. Councilman Wood stated there had been several items in the local newspaper about major changes in some establishment in the Northeast Religious Council to back some of the channels that would be available to the churchs, public building drops and school drops. All these questions were answered in . terms of where you want them to put it in. Councilman Wood stated the question was brought up and answered by the City Attorney, placing the name of an individual or an officer of the company in the franchise. Councilman Wood stated he had nothing more to add other than the fact the recently revised ordinance left a space to put the name of an individual of the company. Mayor Faram advised the Council he had a request to speak from Mr. Dan Echols. Dan Echols, 5016 Neveda Trail, representing Council for Educational TV in Tarrant, CETT. Mr. Echols stated he had given a statement of policy to Councilman Wood. The purpose of the statement was to make sure that Cable TV was made available to the educational community in an adequate way. Mr. Echols stated they did not have a preference to who the contract was awarded to as long as they agreed to give channels to the educational community. Mr. Echols stated they were concerned that the city get a company that was capable of handling the level of service needed. Councilman Cavanaugh stated he was very concerned about the actual funding of the group. Councilman Cavanaugh stated it had been suggested that each city would donate a portion to offset the total cost for the educational channels and he was not in favor of this at all. Mr. Echols stated it would obviously require some funding. Mr. Echols stated the funding would have to come from the educational organization or from the cities. Mr. Echols stated the Cable companies might contribute some also. December 17, 1979 Page 3 Councilman Cavanaugh stated his suggestion would be that the educational systems fund it totally or the TV Companies. Councilman Cavanaugh stated he could not see the city taxing the people for another service. Mr. Echols stated he agreed totally, if the people were not getting some benefit for that activity they should not have to pay for it. Mayor Faram asked if CETT had been organized long enough to know what they were getting into. Mr. Echols stated they thought they knew what they were getting into. They had not gotten into it enough to know of the actual management of the channels, but knew this activity was very necessary to the community and the educational group as a separate entity. Mayor Faram asked if they had any experience with cable TV up to now. Mr. Echols stated that as far as cable systems, there had not been any around. Councilman Wood asked if the franchise was worked out in being awarded in conjunction with CETT in what authority would they operate. Would they work it out with the city or would they operate to the side between the franchise holder and the city. Mr. Echols stated that in the statement there was a scheduling of priority, first, second and third. Mr. Echols stated the first agency they recommended to have scheduling priority for those channels that are provided by the vendor for access of all sorts is the City Cable Advisory Committee so he urged the Council to establish a City Advisory Committee which would be the primary group that would determine the use. Mr. Echols stated CETT would like to come in as the second scheduled priority in order to deal with the educational portion. Mr. Echols stated the third priority for what is unused by the first two would be the cable operator in order to go ahead and utilize those channels that are otherwise sitting idle. Councilman Wood asked Mr. Echols if he had seen the contract. Mr. Echols stated he had not seen the new ordinance or the actual bids. Mr. Bill Meier'appeared before the Council. Mr. Meier stated he would like to speak to some of the things that already had been considered by Councilman Wood and Councilman Freeman. Mr. Meierstated he would like to emphasize to the Council that Tarrant Communications was a Texas Corporation that was owned 80% by Storer Broadcasting. tk. Meier stated they were in the business of Cable TV in sixteen States with more than 100 franchises around the country. December 17, 1979 Page 4 Mr. Meier stated at this time six local people were involved in Tarrant Cable. The idea being that if it was local you know how to reach them if you have any problems. My'. Mei er stated that in Tarrant County the franchi ses Tarrant was presently in the process of constructing were Richland Hills, Euless, Bedford and Colleyville. Mr. Meier stated he would like to ask Mr. Brown, an associate, to speak in some areas that were not covered in the application at the time it was filed. Mr. Brown appeared before the Council. Mr. Brown stated that since they had filed the application with the city several new services had been added. Two were programming packages, they had added a new 24 hour a day movie package. Mr. Brown stated they had added not only the Madison Square Garden Sports Network but also the Entertainment Sports Network which is a 24 hour a day sports program. Mr. Brown stated they had also signed a contract for programs for Senior Citizens 55 years of age and over. There would also be a 24 hour news program. Mr. Brown stated there would also be a locking device free of charge. Mr. Meier stated there had been a question on the franchise fee. Mr. Meier stated he had checked with the other franchises they had in the area. The FCC had adopted a maximum of 3% they could offer as a franchise fee without any other procedure being handled before the FCC. Mr. Meier stated anything greater than 3% would require a Public Hearing and application by the FCC. Mr. Meier stated they would have the Staff to pursue it if the city wanted more than a 3% fee. Mr. Meier stated that Richland Hills had asked for 4%. Councilman Cavanaugh stated everyone was refering to 35 channels. Would there in fact be 35 channels? Mr. Meier stated there would be 28 channels in use, others would be for future expansion. Councilman Cavanaugh asked if the stockholders were salaried. Mr. Meier replied no, stockholders only. Councilman Cavanauqh asked if the company would object to having the contract assigned to a person. Mr. Meier stated he could not answer that question he did not think they would object. December 17, 1979 Page 5 Mayor Faram stated that Mr. Meier had indicated that Richland Hills had applied for a 4% fee and it had to be approved by FCC, what reasons were justified for the additional franchise fee. Mr. Meier stated that it involved giving FCC the leaver of keeping out the bidding procedure of one company saying they would pay 3% and one saying they would pay 5%. It is the policy matter of the FCC level that is attempted to keep abreast by this kind of situation. Mr. Meier stated that what they wanted was for you to be able to show there is some particular local problems in terms of regulator activity in that you have a matter of needing more oversight because of excess channels being different or there being some other kind of rate involvement and date involvement at the regulatory level at the city because after all the city forms a regulatory body for the cable operators. Mr. Meier stated it was not a routine matter that the FCC was going to approve the request, you have to justify the request. Mayor Faram stated if the 3% was standard, the extra 2% could go towards helping CETT. That would be a justifiable cause in asking FCC. Mr. Meier stated that was the kind of things that were specifically complicated by the regulatory practice. Councilwoman Reeder asked if the company offered the security service. Mr. Meier stated if the city wanted the security service it would be in the contract. It would include direct lines to the Police Department. Councilwoman Reeder asked who would monitor the CETT to make sure the right programs were being shown. Mr. Meier stated the homeowner would have control by the locking device. Mr. Joe Hipple, Vice President, Austin Cable TV, appeared before the Council. Mr. Hipple stated many of the services that were mentioned were in their recent proposal to the city. Mr. Hipple stated that if Austin received the franchise for the city they would install, at the time the system was installed, the lock box. Mr. Hipple stated they were very interested in serving a franchise in North Richland Hills. Mr. Hipple stated the company was locally orientated, the Corporation headquarters were local. December 17, 1979 Page 6 Mr. Hipple stated Austin was presently under construction in Hurst and Haltom City. Councilman Wood asked if the city got into a rate increase lawsuit would it be handled by a local attorney or an attorney located out of State. Mr. Hipple stated they had Corporate Attorneys located in Washington but all local matters would be handled by local attorneys. Councilman Michener asked Mr. Hipple if he could tell him what competitive edge Austin would have over Storer. Mr. Hipple stated first of all that Austin'~ corporate office was located here in Hurst, Texas, and he was Vice President of the Corporation. Mr. Hipple stated he felt this was their bid advantage in services rather than having the corporation located outside of the area. Councilman Cavanaugh asked Mr. Hipple if he would be willing to put the lock box in free of charge. Mr. Hipple replied yes. Councilwoman Reeder asked if Austin built the cable and operated it indefinitely or do they build it and move on. Mr. Hipple replied no, they did not buy and sell. Councilman Freeman asked for a recess on this item because there was some question on the contract. Mayor Faram asked if a recess was needed for discussion on the contract. Councilman Freeman replied possibly. Councilman Wood stated he agreed with Councilman Freeman because he had discovered discrepancies in the contract. Mayor Faram called a ten minute recess. RECESS BACK TO ORDER Mayor Faram called the meeting back to order. The same Council Members and Staff were present as recorded at the beginning of the meeting with the exception of the City Engineer who left at this time. Councilman Michener moved, seconded by Councilman Cavanaugh, that the Council instruct the City Manager to negotiate with each company heard tonight and to develop each independent contract in all detail, and in all respects and submit to the Council at the next meeting for approval. r<1otion carried 6 -0. 5. Councilman Michener moved, seconded by Councilwoman Reeder, to approve payment in the amount of $45,263.25, for 2.0 MG Elevated Storage Tank to Universal Tank & Iron Works, Inc. Motion carried6 -0. 6. Councilman Freeman moved, seconded by Counci lman Wood, to approve payment in the amount of $97,345.01, for Water System Extensions from Bursey Road to Davis Blvd. to A. E. Shull Construction Company. Motion carried 6 -0. 7. Mayor Faram asked if the applicants had been contacted. City Manager Paul replied they had been contacted. Councilman Michener moved, seconded by Councilman Wood, to approve Ordinance No. 891, naming Mr. Charles Owen, Mr. Clifford Griffith and Mr. Len VanEssen, as the 1980 Board of Equalization Members. Motion carried 6,-0. 8. Councilman Cavanaugh moved, seconded by Councilman Wood, to appoint Mr. Carl Greenfield to the Planning and Zoning Commission term to end May 1, 1980. Moti on carri ed 6-0. 9. Mayor Faram stated he did not feel the Council was ready to make these appointments since no one had been interviewed. Councilman Cato moved, seconded by Councilman Freeman, to .table this item. Councilman Wood asked if the Staff would setup interviews for the applicants to be conducted at Pre Council, January 14, 1980. > December 17, 1979 Page 7 CONSIDERATION AND APPROVAL OF PAYMENT IN THE AMOUNT OF $45,263.25 DUE UNIVERSAL TANK & IRON WORKS, INC. 3-531-, CITY OF NORTH RICHLAND HILLS 2.0 MG ELEVATED TANK ON BURSEY ROAD, CONTRACTORS ESTIMATE NO. 2 APPROVED CONSIDERATION AND APPROVAL OF PAYMENT IN'THE AMOUNT OF $97,345.01 DUE A. E. SHULL CONSTRUCTION COMPANY, 3-541, CITY OF NORTH RICHLAND HILLS WATER SYSTEM EXTEN- SIONS FROM BURSEY ROAD TO DAVIS BLVD. CONSTRACTOR'S ESTIMATE NO. 2 APPROVED APPOINTMENTS TO BOARD OF EQUALIZATION ORDINANCE NO. 891 APPROVED APPOINTMENTS TO PLANNING & ZONING APPOINTMENT TO CIVIL SERVICE COMM I SS ION POSTPONED Mayor Faram stated interviews could be set any time the Council brought in any applicants. Councilman Wood stated that based on passed experience if a date for interviews was not set it seemed like some time the Council did not get around to the interviews. Councilman Cato asked Councilman if he could have his applicant present on January 14, 1980. Councilman Wood stated he felt he could have his applicant present on January 14, 1980. Councilman Cato stated they would have their applicants present on the 14th and request that anyone else on the Council that ,had a prospective member for the Civil Service Commission to have, them present on January 14, 1980. Motion to table this item carried 6-0. 10. Mayor Faram adjourned the meeting of December 17, 1979. ATTEST: ^;vlz, ~ -' 1j11ÞYv D ck aram - Mayor -~ December 17, 1979 Page 8 ADJOURNMENT