10/09/1978 Meeting - Laserfiche WebLink

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Mr. Swanson said possible open bidding was considered during franchise e negotiations. However, Teleprompter had a large capital investment. Another television company would have had to make a very large capital ,investment to purchase the system. He said it was a tactical choice on the part of the Commission not to open pUblic bidding, thus hoping to conclude with a much better franchise with Teleprompter. It was felt that if the bargain with Teleprompter did not work out, then the option was to open to public bidding. Regarding the lS-year franchise period, he noted the cablegram from Mr. Horn, an expert in the business, said a lS-year franchise period is reasonable. He said the terms of the franchise can be reviewed at any time. Regarding using fees to provide a public broadcasting center, Mr. Swanson said at the present time there are centers at Lane Community College, the University of Oregon, and Teleprompter. Experts had indicated to the Commission it would be a waste of tax payers. money to provide another center. In summary, Mr. Swanson felt the Commission had provided a good franchise, probably one of the best in the country. Councilor Williams said he was proud to recommend adoption of the franchise by the City Council. He said in private discussions, Mr. Horn said that if the franchise had been put out to public bid the . chances of getting a better one were slim, and the possiblity of a worse one were significantly greater. Further, Mr. Williams felt Council should reconsider the way in which it deals with franchises. He cited the recent ambulance rate franchise, in which the SUbject was not terminating and going to some other company, but rather what the public was getting for its money. The Cable Commission attempted and had succeeded in providing a good franchise that includes controls for vehicles for change. He felt this was the appropriate way to deal with franchises: To provide a mechanism to force the supplier to comply and resolve dispute, rather than to "scrap" them. Mr. Lieuallen wondered, under the purpose of statement, the meaning of a "nonexclusive" franchise. Mr. Swanson said it is not an exclusive franchise and would leave open the possibility of another cable system. In regard to the1S-year period for the franchise, Mr. Lieuallen wondered if there were any statistics showing whether or not that was an average period. Shirley Swenson, Finance Department, said the FCC standards recommend lS-years. Mr. Lieuallen expressed concern regarding public access and whether or not the public will actually be able to afford the cost ($40 per hour) for use for equipment and studios at Teleprompter. Ms. Swenson said the FCC requires five minutes of free time be provided e 10/9/78--3 "3