Marcus Cable Deal Includes Rebates : Glendale: Subscribers would receive $17 for alleged overcharges under a plan the City Council is to consider today.

GLENDALE —  Cable television subscribers in Glendale will receive a $17 rebate for past alleged overcharges if the City Council allows a new firm, Marcus Cable, to take over the franchise from Sammons Communications.

The council is scheduled to consider the deal at a meeting today.

As part of its proposal, Marcus and Sammons agreed to the rebates to 42,000 cable subscribers for overbilling for installation, basic service and rental of cable equipment, according to city officials. At the same time, Sammons denied overcharging customers, as alleged by city regulators.

A decision could end months of difficult negotiations and political posturing. In Burbank, the council recently approved a similar bid by Marcus after city officials first questioned Marcus’ financial and technical abilities.

Dallas-based Marcus Cable is buying out more than 200 cable franchises nationwide from Sammons. Glendale officials have cited ongoing concern about Marcus’ ability to complete a $15-million overhaul of the city’s cable system that will increase the number of available channels from 40 to 78.

Sammons, in an effort to secure the sale of its Glendale franchise, offered to put up $500,000 in security during the first phase of the rebuilding project. That, plus a $750,000 deposit to be made by Marcus, will provide enough insurance for the project’s completion, officials said.

“We really hadn’t had time to rethink our position when Sammons stepped in, and I don’t know that we would have changed our position,” said John Gleiner, general counsel for Marcus.

If the council approves, the sale of the property will be closed Wednesday and the actual changeover of the business to Marcus should begin next year, Gleiner said.

Sammons officials could not be reached for comment on the deal.

Sammons agreed to build a new cable system for the city using fiber optics under a 10-year franchise renewal agreement approved earlier this year, just before the firm’s corporate parent announced it was selling off its cable television interests. The contract stipulates that if Sammons is sold, the buyer must agree to build the project.

But city officials became alarmed when consultants investigating Marcus’ background reported that the new firm had incurred massive debts to finance the $1-billion Sammons acquisition, raising doubts about its ability to complete the rebuilding. Officials said they refused to approve the franchise transfer until they were assured.

“I think the improvements in [cable television] service will go forward as we planned now,” said City Manager David Ramsay.

“We felt good about the new franchise we negotiated with Sammons, and our position was that we simply wanted that agreement lived up to. We had a vision of the kind of service we need, and we didn’t want to compromise that,” he said.

Marcus has also agreed to reimburse the city for $50,000 in attorney fees incurred during the negotiations.

Otherwise, Glendale’s proposed contract with Marcus mirrors that approved by Burbank earlier this month. It includes provisions for fines of up to $5,000 a day if completion of the rebuilding is late, and up to $500 a day if the firm does not meet FCC customer service standards.

Burbank subscribers will also receive $17 rebates under the franchise sale agreement.