City Hits Cable Firm With $504,000 Fine : Telecommunications: Panel vows to get tough with Century Southwest, accused of breaching its agreement to build a studio for public use.

Century Southwest Cable Television Inc., already threatened with revocation of its cable franchise because of poor service and picture quality, was hit with a $504,000 fine Friday for another breach of its franchise agreement.

Los Angeles’ four-member Telecommunications Commission unanimously approved the fine--the largest in the city’s history--for Century Southwest’s failure to build a television studio in which the public for free could prepare programs for broadcast on the system.

Commissioner Harvey A. Bookstein, who favored imposing an even harsher fine of $1.1 million for the violation, said he believed the penalty sends a clear message that the city is tired of the company’s repeated franchise violations.

“Their attitude in the past has been, ‘We don’t care what you think,’ ” Bookstein said. “What we’re trying to say to them is that they can have whatever attitude they want, but we have two options: We can fine them or revoke their franchise. And we will pursue them.”

William J. Rosendahl, Century Southwest’s vice president in charge of operations, called the fine unfair and unwarranted because the company already has built, as required, a public studio on the Westside and recently opened an interim production facility in Eagle Rock. The company is still required to complete a second studio on the Eastside.

“The commitment we’ve demonstrated is something we’re extremely proud of,” Rosendahl said. “We’ve probably produced more access shows than any other franchise in the country. We sincerely hope the commission will appreciate that commitment.”

But Commissioner Mary Ridings said the Eastside studio already has been discussed for too long with too little action from the company.

“I’m fairly convinced you guys don’t think we’re serious,” Ridings told Rosendahl before the vote. “We should proceed rather than continually delay.”

Rosendahl, who said his “mouth dropped” when he saw the size of the fine, said the company will appeal the decision to the City Council.

The commission allowed the company time to respond to the fine and left open the possibility of reducing it at a future meeting.

The commission also decided to delay fining Century Southwest $80,500 for its failure to meet several construction deadlines as it rebuilds its 20-year-old cable system. The delay was approved to allow Century Southwest time to review the complaints and improve its construction record.

But the commission warned that there will be no more delays after its April meeting, and that it will tolerate no more missed construction deadlines.

“I’m skeptical,” Bookstein said. “I’ve been burned in the past by them.”

The $504,000 fine is the most serious action the commission has taken against Century Southwest since threatening to revoke the company’s franchise last August.

Century Southwest is the second-largest cable company in the city. It serves 107,000 subscribers in a swath of territory that covers Pacific Palisades, Bel-Air, Highland Park and Eagle Rock.

For years, the company has been reviled by viewers as one of the worst of the city’s 14 cable franchises. The litany of complaints includes system blackouts, blurry pictures, high subscription rates, abusive customer service representatives and phone lines that always seem to be busy, according to subscribers and city officials.

The company has long maintained that its problems stem from having the oldest system in the city. Rosendahl said the company is now working on a $50-million rebuilding of the system that will be completed by 1993.

Bookstein said the $504,000 fine does not stop the commission’s continuing discussion of revoking Century Southwest’s cable franchise.

Susan Herman, director of the city Department of Telecommunications, said a letter outlining the company’s failings will be sent this month. The company would then have 45 days to respond.

If the problems are not corrected, the commission could recommend the City Council take the unprecedented action of revoking the company’s franchise.