Glendale Council Approves Change in Cable TV Firms : Communications: Satisfied with safeguards in contract, members unanimously support transfer to Marcus.

Despite lingering concerns about Marcus Cable, City Council members on Tuesday approved the transfer of Glendale’s cable television system to the Dallas-based company, saying the new contract contains sufficient safeguards to protect the city’s interests.

In a 5-0 vote, the council approved the sale of the city’s cable franchise with roughly 42,000 subscribers to Marcus, which is in the process of acquiring more than 200 franchises from Sammons Communications for $1 billion.

The deal went through largely because Sammons agreed to put up $500,000 to ensure Marcus will follow through on a promise to rebuild the city’s cable system for $15 million, city officials said.

Seeking to secure the sale of its Glendale franchise, Sammons also offered to pay a $17 rebate to each of Glendale’s cable subscribers for alleged overcharges.

The company has long denied overbilling for installation, basic service and rental of cable equipment, but it has now agreed to pay more than $1.3 million in refunds to Glendale and Burbank subscribers, city officials said.

But the main obstacle throughout six months of negotiations was Sammons’ promise to build for Glendale a new cable system using fiber-optics, which would increase the number of available channels from 40 to 78.

Just before the sale to Marcus was announced earlier this year, the city extended the Sammons franchise. As part of the deal, Sammons agreed that it would not sell the franchise unless the buyer agreed to build the project.

The negotiations bogged down after city consultants learned of large debts incurred by Marcus to finance the Sammons takeover and other ventures, raising doubts about the firm’s ability to complete the rebuilding.

But city consultants said the proposal approved Tuesday provides adequate financial protection.

“[Marcus’] financial situation hasn’t changed, and their history hasn’t changed, but we’ve always said that if they provide sufficient safeguards to ensure the rebuilding, we’d be willing to go with them,” said Deputy City Atty. Christina Sansone, one of the city’s negotiators on the issue.

As talks between the city and Marcus grew tense in recent months, both sides accused each other of political posturing.

Marcus officials said the city was purposely stalling the talks because it believed the cable company had given more favorable terms to Burbank, which approved a similar franchise transfer earlier this month. City officials accused the company of threatening to pull out of the deal.

“Things have been a little difficult,” John Gleiner, a Marcus executive, said before the council meeting. “But we believe we will establish a positive working relationship with the city and the customers. We know we have to prove ourselves, and we know that we can.”