HomeMy WebLinkAboutApril 2, 1992OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
PUBLIC HEARING
APRIL 2, 1992
Mayor Murzyn opened the Public Hearing at 7:00 p.m.
ROLL CALL
Nawrocki, Clerkin, Ruettimann, Peterson, Murzyn - present
PURPOSE OF PUBLIC HEARING
The purpose of the Public Hearing is to receive comments from
staff and the public regarding the proposed transfer of
ownership of the cable system.
The Mayor advised that on February 14, 1992, the City received
a written notice from Cable TV North Central requesting that
the City approve the transfer of ownership of the Cable TV
North Central system to Meredith/New Heritage. Pursuant to the
Cable Franchise Ordinance, the City has to reply in writing to
Cable TV North Central within thirty days of this request and
either indicate the City's approvel or determination that a
public hearing is necessary as the transfer of the franchise
may adversely affect the subscribers.
Mayor Murzyn noted that at the March 9, 1992 City Council
meeting, the Council determined that the transfer of ownership
of the franchise may adversely affect subscribers. A public
hearing had to be held within thirty days of such
determination, so tonight's public hearing was scheduled.
Linda Magee, Assistant to the City Manager, advised that the
City's cable attorney has requested information from
Meredith/New Heritage regarding the request for approval of
the transfer of ownership. Additionally, a financial analysis
of Meredith/New Heritage Partnership and a technical
performance compliance audit of the Columbia Heights/Hilltop
Cable System has been undertaken. The City is still awaiting
the information requested from the cable company, and the
financial analysis and technical performance compliance audit
are still underway. Until the results of the audit and the
analysis are received no Council action should be taken.
The resident at 4746 Heights Drive requested an explanation of
the affects the transfer of ownership will have on
subscribers. Magee responded that at this point in time any
potential affects are unknown and that the Council had
determined that there may be affects.
PUBLIC HEARING
APRIL 2, 1992
PAGE 2
Kathy Donnelly-Cohen, a representative of the cable company,
stated that there is a process in law which governs transfer
of ownership. A determination must be made regarding any
adverse affects in the first thirty days. The audit/analysis
may not be completed until the end of May.
Donnelly-Cohen gave some background information about the new
owner, Meredith/New Heritage. Two months ago they purchased a
cable franchise in Bismarck, North Dakota. The subscriber
rates in Bismarck have not increased.
She noted that the present owners of North Central Cable TV
are not having financial difficulties and this is not a reason
for the sale. North Central Cable TV serves forty-three
cities.
Donnelly-Cohen advised that this is not a high leveraged
buyout so the rates need not necessarily be increased nor an
increase in subscriber penetration be a concern.
Councilmember Nawrocki, who represents the Council on the
Cable Communications Commission, observed that local control
on subscriber rates was usurped some years ago by federal
legislation. Since this control was removed, rates have
increased steadily. Presently, there is cable legislation in
the Congress. Councilmember Nawrocki stated that the Senate
legislation would not be effective for regaining local control
and the bill in the House has received no hearings as yet.
A resident, who has done some local programming, inquired if
this transfer of ownership will result in the lose of some
local access channels.
Donnelly-Cohen advised there will be no impact on local access
programming opportunities. Also, the twenty-four hour customer
service will remain.
The resident at 1042 43 1/2 Avenue inquired if a subscriber
package could be available which included only some local
access channels and C-SPAN. He would like a limited choice of
cable channels which would cost less than the package he is
receiving at the present time. He was advised this is
unlikely.
Donnelly-Cohen explained the billing procedure presently used
by North Central Cable. There are two billing cycles, one from
the first of the month to the thirty-first and the second from
the fifteenth of the first month to the fifteen of the next
PUBLIC HEARING
APRIL 2, 1992
PAGE 3
month. She noted that late payment charges are not applied
until after a full billing cycle has passed.
Councilmember Clerkin inquired if the subscriber rates vary
depending on the percentage of penetration in each city.
Donnelly-Cohen responded that this is not the case. Cities
with lower penetration benefit from services which go to
cities with higher penetration. She felt the cable system has
been greatly improved since the new owner, Hauser
Communications, purchased the system.
Motion by Clerkin, second by Nawrocki that the cable public
hearing be recessed until the City receives information
requested from the cable company, Meredith/New Heritage, and
the results of the financial analysis and technical
performance compliance audit are received. Roll call: All ayes