LV, Henderson approve cable television deal

The Las Vegas and Henderson city councils Monday joined North Las Vegas and Boulder City as local entities that have approved the change over from Prime Cable to Cox Communications of Las Vegas Inc. as the area's new largest provider of cable television.

The Clark County Commission is scheduled to decide the same issue today.

The unanimous vote by the Las Vegas City Council also repealed the city's ordinance governing the rules and regulations for cable television -- a 22-year-old measure that city officials say is antiquated, but an action that nevertheless drew public protest.

"It's a new day in the telecommunications industry for Las Vegas," said outgoing Prime Cable General Manager Harris Bass, who soon will start a similar job in Washington, D.C.

The acquisition by cable giant Cox "is more than a quantum leap," said Prime Cable Vice President Brian Greenspun, whose family pioneered cable into the Las Vegas Valley two decades ago. In May, he sold the company to the Delaware-based corporation for $1.3 billion.

"This has been an evolutionary process for us ... with an eye toward making this the very best communications company for Las Vegas."

In Henderson the measure also was passed by a unanimous vote in a special session Monday night.

The Greenspun family, owners of the Sun, started Community Cable TV in the 1970s, and was granted a 20-year community antenna television system franchise by the city in December 1979. The company later became Dimension Cable and eventually Prime Cable.

The deal between Prime and Cox will result in the city receiving a $1.8 million settlement from Prime, relating to any outstanding liabilities, including claims relating to audits and franchise payments.

Also the franchise fees for Cox will climb from the current 3 percent of gross revenues to 4 percent the first two years. That figure will go to 5 percent -- the federally mandated ceiling -- for the remainder of the franchise agreement.

This is projected to boost the city's revenues by $1.2 million over the next two years and $200,000 a year over the remaining eight years of the franchise agreement. Cox also received two conditional extensions of five years each, making it a potential 20-year deal.

The city also was promised a government access channel, along with an education channel and, if there is a demand for it, a community access channel.

The issue of fair public access -- and the franchise deal in general -- sparked criticisms from Gary Peck, executive director for the American Civil Liberties Union in Nevada.

"I have to express deep dismay about what is going on," he said. "The deal is not a good deal for the county or the city. The deal by industry standards is a dreadful deal."

Peck said the deal hammered out between the cable companies, municipalities and county was a glaring example of "private interests manipulating a system to the detriment of the public."

Mayor Jan Laverty Jones disagreed, saying that everyone came to the table to deal in good faith for the betterment of cable service to Southern Nevada.

"I think both Cox and Prime Cable went out of their way to meet the needs (of area communities)," she said, noting that Peck's concerns about a public access channel are "something that can be negotiated by both sides."

As part of the agreement, Cox says it is committed to completing the fiber-optic upgrade of its system by Jan. 1, 2000.

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