Council Urged to Reject Cable Transfer Proposal : Television: Move would send talks back to square one and signal Glendale’s concern over a promised $15-million system overhaul.

Amid concerns over financing and service, a staff report has urged the City Council to reject Marcus Cable’s bid to take over cable television operations, but officials with the company remain confident they can iron out the remaining disagreements and close the deal.

The council is scheduled to vote tonight on the proposed transfer of the city’s recently approved 10-year franchise agreement with Sammons Communications to Dallas-based Marcus, which is in the process of buying more than 200 cable outlets serving 650,000 customers in several states from Sammons for about $1 billion.

Although the move would have no immediate effect on television service, it would send the negotiations between the city and Marcus, which began in May, back to square one and signal the city’s concern over a promised $15-million overhaul of Glendale’s cable television system. The provision of Sammons’ contract would be inherited by Marcus.

“They [Marcus] do not have a commitment to this Glendale project in their capital improvement budget, so we need adequate safeguards to assure it will indeed be built,” said Chris Sansone, an assistant city attorney who prepared the negative report.

Marcus’ financial ability arose when city consultants learned the firm had incurred high debts in acquiring numerous cable companies in recent years, and that the debts are expected to climb sharply following the Sammons’ deal, which is underwritten by a variety of investors, Sansone said.

Glendale officials spent two years negotiating with Sammons for the system overhaul, which will use fiber optics to improve channel availability and picture quality and is scheduled to be completed by 1997.

In addition to Marcus’ financial viability, city consultants have also questioned Marcus’ technical qualifications and its customer service record.

Marcus officials threatened earlier to back out of the Glendale deal if differences could not be worked out, leaving Glendale’s 45,000 cable subscribers to be served by Sammons until a new buyer is found.

But Joe Camicia, Marcus’ government relations manager, said Monday he expects the transfer to be completed by the end of the year, even if the council rejects the deal today.

“I think we’ll continue to talk to the city. We’re committed to complete everything that’s required in [Sammons’] franchise agreement, and I don’t think there’s anything that can’t be worked out.”

Marcus is also negotiating simultaneously with Burbank, and the City Council there is also scheduled to take action today. Officials in Burbank had expressed similar concerns on the firm’s track record. Councilman Ted McConkey said he will vote in favor of Marcus and expects the full council to approve the deal.

Glendale Councilwoman Eileen Givens said she believes the company will come to terms with Glendale because “it’s in their best interest.”

“I think they stand to lose big bucks if Glendale and Burbank are out of the picture,” Givens said. “I think we are one of the biggest markets, if not the biggest, in the Sammons’ transaction, and their financial backers won’t find the deal so attractive if we’re not in there.”