HomeMy WebLinkAbout1978-01-17; City Council; 5207-3; Daniel's Cablevision Corporate Surety BondsCITY OF CARLSBAD
AGENDA BILL NO.
DATE:
5207 Supplemental #3
January. 17. 1978
DEPARTMENT: Public Works - Utilities & Maintenance
Initial:
Dept.Hd.
C. Atty.
C. Mgr.
£
Subject: ACCEPTING AMOUNT OF $100,000 FOR CORPORATE SURETY BONDS;
DANIELS CABLEVISION.
Statement of the Matter
Section 5.20.090 of the Carlsbad Municipal- Code requires that all Cable TV
franchises file a corporate surety bond in an amount approved by Council,
as a condition of awarding the franchise. Daniels Cablevision has proposed
that this amount be set at $100,000 until such time as the initial construction
is complete and at that time reduced to the bonded amount approved for La Costa
Community Antenna System ($25,000). Council would take action on reducing the
amount at that time. The bonded amount of $100,000 is considered reasonable
based on comparison with other jurisdictions and upon Daniels effort thus far
in anticipation of completing the franchise processes, i.e. market survey,
strand mapping, negotiations for head-end location, negotiations with master
antenna operations, etc. Exhibit A provides further information concerning the
completion of the franchise processing.
EXHIBITS:
A. Memo from Director of Utilities & Maintenance to City Manager of
January 3, 1978.
RECOMMENDATION .
If Council concurs with staff* set the bonding amount for Daniels Cablevision
at $100,000 by minute motion.
Council action
1-17-78 The bonding amount for Daniels Cablevision was set at $100,000,
78-1
January 3, 1978
MEMORANDUM
TO: City Manager
FROM: Director of Utilities & Maintenance
SUBJECT: Acceptance of Cable TV Franchise;
Daniels Cablevision
Dwayne Linholm, local representative for Daniels Properties delivered
documentation to my office at 1:30 P.M. on December 29, 1977 concerning
their acceptance of the cable TV franchise. He had called earlier that
the flight from Denver had been delayed and thus would not make it by
12:01 P.M. as specified in our Cable TV Ordinance (12:01 P.M. of the 40th
day following awarding of the franchise).
I have reviewed the documentation and there appear to be some problems
with the acceptance which will have to be resolved before the process is
complete. The acceptance was by letter rather than the complete agreement
form developed by the City Attorney. I believe this is most likely the
result of a communications breakdown, since we were dealing with the local
representative when Jerry outlined the acceptance procedure. I have con-
tacted Daniel's and they will execute the agreement in the form approved
by the City Attorney and forward it from Denver as soon as possible.
The letter attached also indicates that Daniels Cablevision is accepting
the franchise. As you will recall, the franchise was awarded to Daniel's
Properties, Inc. which is the parent company of several local cable TV
operations. The officers of and the principal stockholder (Bill Daniels]
of both entities are the same however. Daniels Cablevision is incorporated
in Delaware and is a separate corporation from Daniels Properties. Our
analysis and evaluation of the proposals was, of course, based on the
Daniels Properties Corporation. At this point in time I cannot provide
you the information on how this matter will affect our franchise - suffice
to say, Daniels Properties, Inc. has not accepted the franchise within the
time period specified by our Code. I will get with Jerry Pieti and if
necessary with Guinn Leverett, ACSI, our consultant to clear up this point.
Also included in the submission was a request to set the amount of corporate
surety bonds at $100,000 (attached). Staff had suggested initially that this
amount be $125,000 at our meeting of October 14, 1977.
In view of Daniels recent activity in anticipation of accepting the franchise,
I believe the amount appropriate. Daniels has accomplished the following
since being awarded the franchise; strand mapped the City, initiated system
design, commenced negotiations for the head-end location, entered negotiations
Cable TV Franchise (continued)-2-January 3, 1978
with the local master antenna companies, and completed a market survey. I
recommend that the City accept the amount of bond to be $100,000 at this
time. This can be accomplished by Council minute motion concurrent with
resolving the problem of the corporate identification.
R0(p W. GREER
Director of Utilities & Maintenance
Attachment
RWG:pag
daniels cobWvision
December 28, 1977
City of Carlsbad
1200 Elm Avenue
Carlsbad, California 90008
Attention: Margaret E. Adams
City Clerk
Dear Ms. Adams:
Request is hereby made that the amount of the Bond Requirements
under Section 5.28.090 of City Ordinance NO. 6055 dated January
6, 1976 be set at $100,000. With this amount being reduced to
$25,000 upon satisfaction of the initial construction requirement
as described and delineated on Exhibit B of Section 3 of City
Ordinace No. 6058 dated October 18, 1977.
We believe that the above proposal is equitable for both the City
of Carlsbad and Daniels Cablevision, Inc. and hope that the City
looks upon this request favorably.
Sincerely,
Frank L. Griggs
Treasurer
FLG/nlf
daniels cablevision, inc.
2606 Ocean Front | Delmar, California 92014 | 714481-9314
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