CC - 05-16-83 - Adjourned MeetingAZD
MINUTES OF THE ADJOURNED MEETING
ROSEMEAD CITY COUNCIL
MAY 16, 1983 AT 8:00 P. M.
The Adjourned Meeting of the Rosemead City Council was called
to order by Mayor Cleveland at 8:00 p. m., in the Conference Room
of City Hall, 8838 E. Valley Boulevard, Rosemead, California.
The Pledge to the Flag was led by Councilman Imperial.
The Invocation was delivered by Mayor Cleveland.
ROLL CALL OF OFFICERS:
Present: Councilmen Imperial, Tury and Mayor Cleveland
Absent: Councilman Taylor and Cichy (Excused)
1. REVIEW OF TOUCHE ROSS STUDY ON CABLE T.V.
The representatives.of Touche Ross & Company, Roger Pease
and Carol Kaiser, went over the synopsis of the economic analysis
of municipal ownership of cable television operations in Rosemead.
They commented on the options for cable television system owner-
ship and operation, conducted an objective review of the costs and
benefits of each option, and made recommendations to the City.
Roger Pease stated that the objectives of the City should be
determined, defined characteristics of the system should be esta-
blished, and he also identified the four ownership options. He
commented on the projected financial results and performed finan-
cial analyses of the four options, and summarized the risks and
benefits of each option. He stated that the critical point would
be the penetration that would take place in the City of Rosemead.
The basic subscriber penetration rates at 30%, 35%, 40% and 45%
were evaluated. He stated that he felt that the average cost to
a subscriber would be approximately $25.00 per month.
Carol Kaiser ran through the general risks and benefits of
municipal ownership, and then the additional risks and benefits
for the City of Rosemead specifically. She reiterated that the
risk primarily revolves around the basic penetration rates, and
stated that Rosemead specifically has a greater risk than some
other City might have because of the high quality off the air
signals, high concentration of subscription television, such as
ON and Select, and climate here is exceptionally good and people
have other things to do.
Roger Pease stated that the people have to be educated to
the difference between subscription television and cable and
that there are vast entertainment opportunities for all members
of the family with cable.
Carol Kaiser stated how critical penetration is to.the whole
project. There are two other factors that suggest that Rosemead
may be somewhat more at risk. One is that the City of Rosemead
has exceptionally good reception and people are not going to sub-
scribe for cable because they do not have good reception. The
other is that the typical Rosemead resident may have less dis-
posible income than the residents in the surrounding areas. She
then went over the comparative financial results of the four op-
tions, and concluded with recommendations depending upon the
City's objectives.
Roger Pease stated that if the City is an absolute risk avoider,
then the traditional franchising is the right approach, however, if
the City wants to achieve more and better things then municipal owner-
ship is feasible.
Mayor Cleveland inquired if there were any questions that the
Council would like to ask regarding this presentation.
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None of the Councilmen present had any further questions.
The Council Meeting was adjourned to the next regular Meeting
on May 24, 1983.
Respectfully submitted:
APPROVED:
(l City Clerk
MAYOR
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