07/09/84 Board of Public Works Minutes

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2'72 REGULAR MEETING JULY 9. 1984 The regular meeting of the Board of Public Works was convened at 9:36 a.m, on Monday, July 9, 1984, by President John E. Leszczynski, with Mr. Leszczynski, Mr. Richard L. Hill and Mr. Michael L. Vance present. Also present was Assistant City Attorney Carolyn V. Pfotenhauer. APPROVE MINUTES OF PREVIOUS MEETING Upon a motion made by Mr. Hill seconded by Mr. Vance and carried, the minutes of the reconvened recessed regular meeting of the Board held on June 25, 1984 and the minutes of the regular meeting of the Board held on July 2, 1984 were approved. PUBLIC HEARING .AND RECOMMENDATION - PETITION OF HERITAGE CABLEVISION FOR INCREASE IN MAXIMUM RATE FOR BASIC SERVICE Mr. Leszczynski advised that this was the date set for the public hearing on the matter of Petition filed by Heritage Cablevision to review and increase the established maximum rate for basic service pursuant to Section 7-5(1)(.2)(b) of Ordinance No. 7181-83. The Clerk tendered proofs of publication of Notice in the South Bend Tribune and the Tri-County News which were found to be sufficient. Mr. Thomas J. Brunner, Jr., Attorney at Law, 120 West LaSalle Avenue, South Bend, Indiana, representing Heritage Cablevision and Ms. Annette Rotolo, General Manager, Heritage Cablevision were present at the public hearing. Mr. Brunner addressed the Board on behalf of Heritage Cablevision. He advised that the Board has been provided with information justifying an increase in the basic service rate of 6.4% and that there has not been c rate increase for cablevision in this area in two (2) years. He reiterated that the Petition requests an increase from $10.95 per month to $11.65 per month for basic service effective September 1, 1984. Mr. Brunner stated that Heritage Cablevision has ex- perienced a sixty-three percent (63%) increase in its programming costs over the last two (2) years. He also stated that because of a recent Supreme Court decision, Heritage has experienced a - twenty-seven per cent (27%) increase in copyright costs. Additional costs incurred include a ten per cent (10%) increase in wages, capital improvements in the amount of $130,000.00, improvements in the telephone system totalling $70,000.00 and the expense incurred for the replacement of the vehicle fleet over the last year. Further, in the area of customer service, office hours have been expanded as well as the number of customer service representatives. Additionally, an expense of $17,000.00 has been incurred as a result of an outside consultant being hired to monitor customer service personnel to make sure the customers are getting the best service possible. Mr. Vance advised that he did request additional financial informa- tion from Mr. Brunner two weeks ago which he has received and reviewed. Mr. Hill inquired if Heritage Cablevision is taking steps in other communities to increase their basic service rate. Mr, Brunner responded that Heritage, in addition to South Bend, has petitioned Mishawaka and received approval and intends to petition the City of Roseland. He advised that outside of these three (3) cities, the increase is automatic with the City of Rochester having a slightly lower rate. In response to Mr. Hill's inquiry whether or not the City of Mishawaka approval contained any stipulations regarding future rate increases, Mr. Brunner stated that the City of Mishawaka requested that there be no additional rate increase for a period of one (1) year to which Heritage Cablevision agreed. Mr. Brunner advised, however, that federal legislation is currently pending which would take away from the City the jurisdiction to regulate cablevision rates and should that legislation pass, the