HomeMy WebLinkAboutMN-CC-1987-02-0915'7
COMMON COUNCIL /CABLE COMMISSION PROCEEDINGS
CITY OF ITHACA, NEW YORK
Special Joint Meeting 7:30 P.M. February 9, 1987
PRESENT:
Alderpersons (10) - Booth, Cummings, Dennis, Haine, Hoffman,
Killeen, Peterson, Romanowski, Lytel,
Schlather (arrived 8:30 p.m.)
ABSENT:
Mayor Gutenberger
In the absence of the Mayor the meeting was chaired by Acting
Mayor Sean Killeen.
OTHERS PRESENT:
TV—Cable Committee - Curt Dunnam, Robert Fletcher, Christopher
Heegard
City Clerk - Paolangeli
BPW Commissioner - Nichols
City Attorney - Nash (left meeting at 9:00 p.m.)
N-i Dir., Planning Development - Van Cort
d' Consultant - Jean Rice
LO
PLEDGE OF ALLEGIANCE:
m Acting Mayor Killeen led all present in the Pledge of Allegiance
to the American flag.
Q
ADDITIONS TO OR DELETIONS FROM THE AGENDA:
Television Cable
Alderperson Lytel requested addition of an item "Consideration
of a Technical Analysis on the Question of Degree of Competitiveness
of the City of Ithaca as a Cable Market."
No Council member objected.
Local Law re. Annexation
Alderperson Dennis requested addition of a Local Law concerning
Annexation of Land from the Town of Ithaca.
No Council member objected.
New Business
Alderperson Dennis requested addition of an item under "New
Business" near the end of the meeting.
No Council member objected.
City Attorney
City Attorney Nash requested addition of an item concerning
inclusion of annexation hearing of Town of Ithaca in conjunction
with Common Council meeting of March 4, 1987.
No Council member objected.
PETITIONS AND HEARINGS _O_F_PERSONS BEFORE COUNCIL:
Cable Refranchisng
Georgia Griffith, General Manager of American Community Cable -
vison, S19 West State Street, presented the following:
(woo" "Won't talk about issues but am willing to answer questions
at any time during the meeting or after.
Notes for remarks before the City Cable Commission /Common
Council joint meeting, February 9, 1987
All of you know we are in the midst of a franchise renewal
process - what you may not know is
- This process is defined by the Cable Communications
Policy Act of 1984, commonly called the Cable Act
(contained in the notebook I'll be handing out)
158 -2- February 9, 1987
- this notebook contains a compilation and summary of
all the material we have presented to the Cable Commission
and others during the last two years.
- By resolution 2 years ago, the Common Council appointed
the Cable Commission as your designee to determine what City
residents wanted from a cable operation after the 1988 renewal
date and to determine how ACC has performed under the current
franchise. This process is called the Ascertainment Hearings
by the Cable act. According to the resolution, the Commission
was also to report back to the Council on its "Findings of
Fact" and make a timely recommendation as to what formal
action the Council should take.
There has not been an ascertainment hearing since at least
the end of November and the Cable Commission hasn't effectively
received public comment since months before that. Because
tonight you are deciding on some of the major issues of the
RFP, the ascertainment hearings are clearly not continuing.
Since the structure was defined, several things have changed.
Some of our concerns are as follows:
- The Commission has not reported its findings to the Council.
The only summary of the two years of hearings was a confidential
report prepared last fall that the Commission gave to Rice
Associates - it has not been released to the public nor to
ACC.
- What role does the Commission have in this process now?
We have asked the Mayor (this summer), Charter and Ordinance
Committee (11/17/86) and the Cable Commission (numerous occasions)
who we are to be dealing with in this process - Who is repre-
senting the City? - and we were told that they would get
back to us. No one has. Van Cort has told us that he is
our contact, but the only official designation has been the
cable commission.
- Finally, the law requires the City to negotiate with ACC,
the current franchise holder. In order for this to be effective
negotiation, we need to know who we are dealing with. Who
is gathering info and making recommendations and decisions.
The resolution attached to tonight's agenda appoints the
City Attorney and the Planning Department (two city employees
who have not been involved -in the public information gathering)
and Rice Associates, a consultant who has done its own information
gathering and acsessment outside of the process defined by
law with the responsibility for making final decisions on
the RFP.
At this point Rice Associates has been delinquent in releasing
every report required under its contract and until tonight
has only released publically one of the five reports expected
between June 30 and September 30. These reports included
community needs assessment.
From our point of view, the process as defined by the Cable
.Act and your resolution in early 1985 is not being followed.
We are willing at any point to discuss any issue pertaining
to the refranchising process. What we are asking you tonight
is to appoint a contact person who will represent you in
the remainder of the franchising process."
Atty. Peter Costanza, Danby, N.Y., spoke to the Council urging
that they include, in whatever specifications it places on
the renewal process, a capability for two -way data transmission
in the cable system which it does not now have.
-3- February 9, 1987
Jane Hammond, 2010 Ellis Hollow Road, presented the following
statement to the Council:
"I want to speak in favor of building a two -way cable system
for data transmission and to report a database will be accessible
to anyone with the equipment to use the two -way cable.
I am Jane Hammond, coordinator of the project to automate
the Cornell University Libraries' procedures. This project
is putting our card catalogs and circulation records into
(600,� a Cornell computer.
We estimate that the more than one million books and magazines
included in the file represent at least one -third of the
entire Cornell libraries collections - everything acquired
since 1973 and many earlier acquisitions.
These records will tell you not only if a given book or periodical
is at Cornell, but also which library has it, so you will
know which of the 16 libraries you want to go to to use the
book. You can also find out what hours the library is open.
�- The system will also tell you if someone has checked out
LO the issue of the journal you want or the book, so you don't
make a trip for something that is not available. You will
also be able to create your own bibliography by moving the
(Y] information from the screen into your own file or printer.
Q
Moving of this information into your home computer will be
facilitated by having a high - quality two -way cable rather
than the slower and more error -prone telephone lines. Having
the author's name misspelled or a call number transposed
by static on the telephone line is worse than no information
when you are dealing with a file as big as the Cornell
Libraries database.
Access will not be limited to those with Cornell connections;
anyone with adequate computer equipment will be able to find,
sort and read these records.
I'm not guaranteeing that this access will always be free
or unlimited because the Cornell University Library's computer
capacity is neither free nor unlimited. However, having
a two -way cable access will enable more efficient and accurate
use of whatever access we are able to provide to area residents.
I urge you to extend the cable system to computer users for
reasons you have heard before as well as to accommodate off -
campus users of the Cornell online catalog.
Thank you for your attention to this matter."
Claude Colleyacme, 312 Esty Street, presented data to the
Council from the Cornell Institute for Social and Economic
Research with respect to senior citizens in the city. He
also read the following communication:
"Mayor John Gutenberger
City of Ithaca
City Hall
Ithaca, New York
Dear Mayor Gutenberger:
When considering any rate increase request made by the
American Cablevision Corporation we would urge Common Council
to give special consideration to the senior citizens who
live on fixed incomes. Many senior citizens are homebound
and television is their main source of entertainment and
in some instances contact with the outside world. It would
be unfortunate if this segment of the population were prevented
from obtaining their main source of enjoyment due to its
high cost.
159
160 -4-
We urge Common Council to ensure that American Cablevision
heed the special needs of those on limited and low incomes.
Sincerely,
Marilyn Grey
Executive Director
The Tompkins County
Council, Inc."
Senior Citizens'
Grady Wells, 110 Columbia Street, writer and editor, requested
consideration of two -way data transmission in the cable system.
Malinda Runyan, 420 N. Cayuga Street, requested consideration
of restructured access management, improvement in equipment
maintenance and one -half inch editing system.
John Efroymson, 420 N. Cayuga Street, requested the Council
to take a good look at the community access section of the
contract which he feels should be improved upon. He supports
the idea of an independent access board, and talked on specifics
such as equipment, quality of audio, storage space, head
phones, light bulbs, etc.
Ben Nichols, 109 Ll.enroc Court, former member of the Ithaca
Cable Committee who helped negotiate the current rate for
television cable service, commented that the agreement clearly
stated that there would be no additional rate until 1988.
He feels there is a violation of "good faith" and wonders,
therefore, what the evidence would be of any "good faith"
in negotiations for the future.
A.F. Marshall, 416 N. Geneva Street, recommended that the
proposal refer to two -way capability; not two -way system
because 91 percent of Tompkins County cable subscribers do
not want two -way system. Only those who want it should be
obliged to pay for two -way capability.
SPECIAL ORDER OF BUSINESS:
Cable Refranchising - Major Issues
Jean Rice stated that the city is following the refranchising
process as proscribed in the Cable act of 1984. She informed
Council that it is typical for cities to have a commission,
a consultant, and the city council involved in the process.
The next step in the process was for a hearing to be held on
community needs and for the issuance of the RFP. The company
would then respond with a proposal and negotiations would
not take place until after the proposal had been received.
At the request of Acting Mayor Killeen, Jean Rice provided
a brief recap of the ten points talked about at considerable
length previously: Franchise fee, consumer protection, penalties
and liquidated damages, performance bond and letter of credit,
access channels, access equipment and ongoing operational
support, access management, system channel capacity, two -way
capacity, interconnection of other communities and term of
franchise.
Thys Van Cort commented that direction should be given to
the Mayor in issuing an RFP based on the issues to be discussed.
Also, he asked for discussion on competitiveness and on the
possibility of Cornell University participating in a two -way
system. He said that he had met with Cornell and that they
have a real interest.
Bob Fletcher, Chair, Ithaca Cable Commission, read from a
letter from the Vice President and Regional Manager of ACC
to the Commission which he passed on to City Atty. Nash,
as follows: "It is our understanding that the basic rate
6W.-I
-5-
February 9, 1987 161
for 12- channel service will increase to $7.00 per month on
July 1, 1984 and to $8.00 per month as 'of January 1986.
In addition ACC agrees to freeze the basic rates until January
20, 1988."
Mr. Fletcher said there are several major questions yet to
be answered with regard to a two -way data communication
system: regarding cost Alderperson Lytel had suggested 25 -400
above conventional cable with operating cost 1.5 -2 times
that of conventional systems. Mr. Fletcher stated that this
will cause basic subscriber rates to increase dramatically.
He said 90 of the subscribers will use two -way if it costs
between $10 and $15; however, he added that ACC will spread
the rate increase over all subscribers. If the City expects
Cornell University to share the cost, and if they decide
not to the problem is that the RFP will already have been
submitted.
Chair Killeen commented that they would be trying to produce
the elements for a request for proposal. Atty. Nash commented
i_j that what they were looking for was some general direction
d. from Council that Rice Associates will then use to make a
In draft of proposed RFP.
Alderperson Booth asked City Atty. Nash where he contemplates
Co the draft RFP to go, if it comes back to Council.
Q Thys VanCort responded that it is entirely up to the Council.
He said there is some concern that we are getting too far
along in the process without going to the RFP because of
time constraints set by the federal legislation. If the
Council feels more comfortable having the RFP come back to
them, this can be done.
Alderperson Cummings commented that another Council meeting
is scheduled for February 24th and it could be brought back
at that time.
Jean Rice said it would take about two weeks to take policy
recommendations and put them into the final document for
the Council to look at.
Thys Van Cort suggested that after Council had gone through
all ten of the issues they could direct Rice to go ahead
and prepare the RFP and authorize the Mayor to issue it.
if not you can request that it come back to Council and you
can vote on it at your next meeting.
Alderperson Schlather arrived at the meeting at 8:30 p.m.
Franchise Fee
Jean Rice answered questions of the council members concerning
the issue of franchise fee, its allocation, possible effects.
Discussion followed on the floor.
Resolution
By Alderperson Schlather: Seconded by Alderperson Cummings
RESOLVED, That the franchise fee be 50.
Further discussion followed on the floor.
Alderperson Schlather stated that he recognized full well
that the franchise fee could in the final analysis be considered
a tax. We have always worked to spread some of the costs
of operating the city government to various users and to
the extent that it is a tax it will relieve the other tax
burden at least in some small way, which is spread across
an even larger base of city taxpayers. This basically says
"yes, you are going to pay a So tax to get cable service."
"There are some people in the city, believe it or not, who
don't get cable service and therefore will not have to pay for
that.
162
_6- February 9, 1987
A vote on the resolution resulted as follows:
Ayes (9) - Booth, Cummings, Dennis, Haine, Hoffman, Killeen,
Peterson, Schlather, Lytel
*Abstention (1) - Romanowski
Carried
*Alderperson Romanowski explained that as a phone company
employee he felt a conflict of interest and would not vote
on many of the evening's resolutions but he would participate
in the discussion.
Consumer Protection
By Alderperson Cummings: Seconded by Alderperson Booth
RESOLVED, That strong consumer protection provisions be
included in the RFP.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Ayes (9) - Booth, Cummings, Dennis, Haine, Hoffman, Killeen,
Peterson, Schlather, Lytel
Abstention (1) - Romanowski
Carried
Penalties /Liquidated Damages
By Ald erper-gon Dennis: Seconded by Alderperson Cummings
RESOLVED, That the City include penalties /liquidated damages
in the RFP.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Ayes (9) Booth, Cummings, Dennis, Haine, Hoffman, Killeen
Peterson, Schlather, Lytel
Abstention (1) - Romanowski
Carried
Performance Bond and Letter of Credit
By Alderperson Dennis: Seconded by Alderperson Cummings
RESOLVED, That the City require a performance bond to cover
periods of construction and or ongoing operation and a letter
of credit to cover penalties /liquidated damages arising from
ongoing operations.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Ayes (9) - Booth, Cummings, Dennis, Haine, Hoffman, Killeen,
Peterson, Schlather, Lytel
Abstention (1) - Romanowski
Carried
Access Channels
By Al erperson Lytel: Seconded by Alderperson Cummings
RESOLVED, That the City require 150 of the channel capacity
of the system be access channels; given that there is no
converter on the basic tier, one channel shall be provided
on the bottom 12; that all the access channels be unscrambled;
and that 3 access channels be activated at the time the system
is turned on and the others activated by demand; and be it
further
RESOLVED, That if a converter is provided in every home or
if there is a similar type of technical change, all access
channels shall be provided on basic.
It
-7- February 9, 1987
Discussion followed on the floor.
Amending Resolution
By Alderperson Schlather: Seconded by Alderperson Booth
RESOLVED, That the requirement be amended to read 100 of
the channel capacity of the system, 1 being on the bottom
1.2, that all of these channels be unscrambled and that 3
access channels be activated at the time the system is turned
on and the others activated by demand.
Ayes (2) - Schlather, Booth
(4wv Nays (7) - Cummings, Dennis, Haine, Hoffman, Killeen, Peterson,
Lytel
Abstention (1) - Romanowski
Motion Defeated
A vote on the main motion resulted as follows:
Ayes (8) - Schlather, Booth, Cummings, Dennis, Haine, Hoffman,
Killeen, Lytel
Nay (1) - Peterson
T-� Abstention (1) - Romanowski
ej- Carried
LO Access Equipment and Ongoing Operational Support
= By Alderperson Cummings: Seconded by Alderperson Haine
m RESOLVED, That the City require a proposal for certain equip -
ment, additional training, staff, publicity, insurance for
access users, operating funds, remote access facilities and
interconnection of public facilities.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Ayes (9) - Cummings, Dennis, Haine, Hoffman, Killeen, Lytel
Peterson, Schlather, Booth
Abstention (1) - Romanowski
Carried
Access Management
By Alderperson Cummings: Seconded by Alderperson Hoffman
RESOLVED, That the City adopt a non - profit operated access
management organization, with a specific definable allotment
from the franchise fee.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Ayes - (5) - Lytel, Cummings, Haine, Hoffman, Peterson
Nays - (4) - Dennis, Booth, Killeen, Schlather
Abstention (1) - Romanowski
Motion Defeated
Resolution
By Alderperson Booth: Seconded by Alderperson Lytel
RESOLVED, That Council direct ACC to offer a proposal for
the services they will provide; the City will have an indepen-
dent oversight board and they will keep their option open
for a non- profit organization at a later date.
Ayes (6) - Cummings, Haine, Dennis, Booth, Killeen, Schlather
Nays (3) - L,ytel, Roffman, Peterson
Abstention (1) - Romanowski
Carried
System Channel Capacity
By Alderperson Cummings: Seconded by Alderperson Haine
RESOLVED, That the City require a 60- channel capacity.
Discussion followed on the floor.
163
164
A vote on the resolution resulted as follows:
Ayes (9) - Cummings, Haine, Dennis, Booth, Killeen, Schlather
Lytel, Hoffman, Peterson
Abstention (1) - Romanowski
Carried
w -WaAlderperson llennis: Seconded by Alderperson Lytel
RESOLVED, That the City's goal be a two -way activated system
at no cost to the non -using subscribers, in either capital
or operating costs, and be it further
RESOLVED, That a two -way system is required to be activated
unless a binding agreement cannot be carried out between
the cable operator, the city and one or more third parties
that meets the above goals, and be it further
RESOLVED, That some capacity be available at no charge to
the City and the public sector organizations that were
identified in the Institutional Assessment done by Rice
Associates.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Ayes (8) - Cummings, Haine, Dennis, Killeen, Schlather, Lytel,
Hoffman, Peterson
Nay (1) - Booth
Abstention (1) - Romanowski
Carried
Bob Fletcher asked that the views of Ithaca Cable Commission
be noted in the record:
Opposed - Fletcher
In favor with /reservations - Heegard, Dunnam
Interconnection
Jean Rice and the Council discussed the draft findings of
the Institutional Ascertainment and Ms. Rice explained how
interconnection works.
Resolution
By Al erperson Schlather: Seconded by Alderperson Cummings
RESOLVED, That interconnection be an encouraged offering
in the Request for Proposal.
Ayes (8) - Cummings, Haine, Dennis, Killeen, Schlather, Lytel,
Hoffman, Peterson
Nay (1) - Booth
Abstention (1) - Romanowski
Carried
Term of Franchise
By Al erperson Booth: Seconded by Alderperson Cummings
RESOLVED, That the term of the franchise shall be negotiated
after the company's proposal has been received.
Ayes (9) - Cummings, Haine, Dennis, Killeen, Schlather, Lytel,
Hoffman, Peterson, Booth
Abstention (1) - Romanowski.
Carried
Consumer Compatability
By Alderperson Cummings: Seconded by Alderperson Haine
RESOLVED, That the RFP require that subscribers can purchase
converters from other sources and have internal wiring installed
and maintained by other parties and that the cable operator
165
February 9, 1987
cannot charge for these subscriber installed improvements,
and be it further
RESOLVED, That the company must supply a consumer compatability
plan.
Ayes (9) - Cummings, Haine, Dennis, Killeen, Schlather, Lytel,
Hoffman, Peterson, Booth
Abstention (1) - Romanowski
Carried
(600e, Cable Refranchising - Schedule
By Alderperson Cummings: Seconded by Alderperson Haine
RESOLVED, That the RFP be prepared and returned to the Council
for its March 4, 1987 meeting. Thys Van Cort will forward
to the Clerk's Office to be_placed on the Agenda under "Old
Business ".
Ayes (9) - Cummings, Haine, Dennis, Killeen, Schlather, Lytel,
Hoffman, Peterson, Booth
rl Abstention (1) - Romanowski
Iq Carried
Ln Alderperson Hoffman asked when the Public Opinion Surveys
will be available. Jean Rice responded that the Public Opinion
m Survey information will go out with the RFP and the Consumer
Q Market Analysis.
Competitiveness Study Proposal
By Alderperson Lytel: Seconded by Alderperson Cummings
RESOLVED, That Rice Associates be authorized to do a General
Consultation Computerized Technical Assessment, On -Site Technical
Testing and Petition to the Federal Communications Commission
which, including Travel and Expenses, would be an expense
of $31,000, with the understanding that if we can get any
part of that done by the New York State Cable Commission,
it can be taken out of Rice Associate's services.
Discussion followed on the floor.
Alderperson Schlather asked Jean Rice to address the allegations
made by ACC that they have made a determination that the
City of Ithaca is in a competitive market place and in support
of that, relate that they conducted tests using equipment
purchased at Radio Shack for $113.20.
Chair Killeen pointed out that Curt Dunnam had responded
to ACC by letter. Mr. Dunnam responded to questions from
Council.
Further discussion followed.
A vote on the resolution resulted as follows:
Ayes (6) - Lytel, Cummings, Haine, Dennis, Hoffman, Killeen
Nays (3) - Booth, Schlather, Romanowski
Abstention (1) - Peterson
Carried
LOCAL LAW - ANNEXATION - LAID ON TABLE
By Alderperson Dennis: Seconded by Alderperson Booth
RESOLVED, That a LOCAL LAW ANNEXING TO THE CITY OF ITHACA
A PORTION OF LAND OF THE TOWN OF ITHACA AND AMENDING SECTION
1.2 OF THE CITY CHARTER OF THE CITY OF ITHACA ENTITLED
"BOUNDARIES OF THE CITY" AND AMENDING SECTION 1.3 OF THE
CITY CHARTER OF THE CITY OF ITHACA ENTITLED "WARD BOUNDARIES ",
SUBDIVISION B., WARD V, THEREOF be laid on the table.
Carried Unanimously
1 sE►
-10- February 9, 1987
NEW BUSINESS:
East Hill Zoning
By Al erperson Dennis: Seconded by Alderperson Booth
RESOLVED, That the recently passed East Hill Zoning Amendments
be referred to the Planning and Development Committee for
review of one section: Change in B -2b Maximum Building Height
Requirements, and bring back recommendation to the Council
at its March 4, 1987 meeting.
Carried Unanimously
Cable 'Franchise Negotiating Committee
By Alderperson Dennis: Seconded by Alderperson Booth
RESOLVED, That a Cable Franchise Negotiating Committee -be
created to be composed of the following: 2 members of Common
Council and 2 members of the Ithaca Cable Commission to be
selected by the Budget and Administration Committee of Council;
the City Attorney, Mayor and a representative of the Planning
and Development Department, as well as Rice Associates in
a consultant capacity, and that the Mayor be empowered to
appoint the committee on recommendaiton of the Council.
Carried Unanimously
EXECUTIVE SESSION:
By Alderperson Lytel: Seconded by Alderperson Cummings
RESOLVED, That the Council adjourn into Executive Session
to discuss possible litigation.
Carried Unanimously
Common Council adjourned into Executive Session at 11:35
p.m.
Common Council reconvened in Regular Session at 12:00 midnight.
Resolution
By Alderperson Dennis: Seconded by Alderperson Lytel
RESOLVED, That the Common Council directs the City Attorney
to pursue legal action against American Community Cablevision
in order to prevent implementation of their proposed S0�
rate increase due to take effect March 1, 1987.
Ayes (7) - Schlather, Cummings, Lytel, Dennis, Killeen, Peterson,
Hoffman
Nay (1) - Booth
Absent (2) - Romanowski, Haine
Carried
ADJOURNMENT:
On a motion the meeting adjourned at 12:30 a.m.
Carried Unanimously
Callista Paolangeli
City Clerk
1 '
Sean Killeen
Acting Mayor