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492 Mayor Herkner asked whether makers of motion to grant a franchise would withdraw their motion in order to discuss further conditions as proposed. Councilman Rosselli suggested adding specific conditions to the motion granting the fran- chise, such as 4% of gross receipts derived from franchise to City, $200,000 performance bond, a rate analysis after 5 years, and a 10% reduction of service costs to Senior Citizens. Original maker of the motion, Councilman Petersen, agreed to the amended motion, as felt this would give Staff authority to proceed with negotiations with applicants and allow franchise ordinance to be prepared. Councilman Bury requested makers of this motion to allow a separate motion for conditions being added to the franchise. Councilman Granger felt applicants should be asked whether they would object to continuance of this matter for two weeks. Councilman Petersen favored action on motion presented and felt if applicants would not accept conditions proposed, other conditions could be considered. Councilman Rosselli withdrew his second to the original motion, which thereupon was lost, there being no second. Coun- cilman Rosselli moved that Staff be instructed to prepare a franchise ordinance with the following conditions: (a) include 4% of gross as annual revenue to City; (b) $200,000 performance bond be set; (c) rate analysis be made in five years; (d) a 10/ reduction in service costs be extended to Senior Citizens, seconded by Councilman Keckley. Councilman Granger asked motion be amended to include also that Staff and City Attorney prepare documents with conditions stipulated adding any other conditions recommended by Staff, and that copies be furnished all applicants before matter is again placed before Council for consideration. Motion lost for lack of a second. City Manager advised that Staff had also previously submitted some recommenda- tions in addition to those now proposed. He stated Staff had recommended 2% rate on theory of installation and amortization periods would consume five years and allow reasonable return on their investment, and then analysis proposed at the end of this time would allow for an adjustment if justified. It was also recommended by Staff that performance bond be set at $800,000, and also provi- sion included to preclude installation of CATV system in Redwood Shores until such time as other utility installations were made, but restricted to under- ground installation, and further, that time schedule for completion be set for two years. Councilman Bury further questioned percentage of revenue and how it might result in reduction instead of increase to the City. Councilman Rosselli stated his concurrence with City Manager's recommendation concerning 2% of annual gross receilt but stated he would not be adverse to including or changing other recommendations. Mr. Linebarger, of Community Antenna TV, stated he would appreciate opportunity to speak on his Company's proposal, and advised only point in discussion of conditions he would question or protest on was the amounts of performance bond proposed.