05/31/83 Board of Public Works Minutes

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230 REGULAR MEETING. MAY 31. 1983 BE IT FURTHER RESOLVED that the rates established hereunder shall remain in effect until changed by resolution of the Board of Public Works. Adopted: May 31, 1983. BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA s/ John E. Leszczynski s/ Richard L. Hill s/ Joseph E. Kernan ATTEST: s/ Sandra M. Parmerlee, Clerk PUBLIC ;HEARING AND RECOMMENDATION - INDIANA CABLEVISION CORPORATION/HERITAGE COMMUNICATIONS, INC. FRANCHISE APPLICATION AND CABLE TELEVISION FRANCHISE AGREEMENT Mr. Leszczynski advised that as authorized under the Cable Television Franchising Ordinance (No. 7181-83) adopted by the Common Council on April 11, 1983, a public hearing on the matter of the joint franchise application of Indiana Cable - vision Corporation/Heritage Communications, Inc. was set, this being the date set for such hearing. The Clerk tendered proofs of Publication of Notice in the South Bend Tribune and and the Tri-County News which were found to be sufficient. Mr. Thomas J. Brunner, Jr., Attorney at Law, 1100 Hazlett Build- ing, South Bend, Indiana,. representing Indiana Cablevision Corpora- tion, informed the Board that in compliance with the above referred to Ordinance, he is prepared to present evidence regarding the applicant's legal character, financial condition and technical expertise. To assist him in his presentation, he introduced the following individuals: Mr. James S. Cownie, President of Heritage Communications, Inc., William Moss, General Manager of Indiana Cablevision Corporation (ICC), Geoffrey Buford, Vice President ICC, Kevin Rice of Heritage Communica- tions, Inc. and Annette Rotolo, General Manager who will be succeeding Mr. William Moss in the near future. Mr. Brunner informed the Board that it is the intent of ICC to sell the franchise and all assets to Heritage Communications, Inc Mr. James Cownie, President of Heritage Communications, Inc. advised the Board that Heritage is a public company - a New York stock exchange company principally in the cable TV business - and is the 17th largest in the industry. He further advised that the revenue of Heritage is approximately $100 million dollars with a net profit of $6 million dollars. Service is provided to approximately 200 communities in thirteen states. He stated that there are 60,000 basic subscribers in limited partnership of which Heritage is General Partner. The Board was advised that Heritage Com- munications, Inc. has a home base in Des Moines, Iowa with the principal limited partnership being Heritage Cablevision Associates with the General Partner being Heritage Indiana Cablevision, Inc. Mr. William Moss, General Manager, ICC, advised the Board of the record of ICC concerning subscriber complaints. He stated that 1,500 complaints are handled each month from South Bend subscribers. Sixty -Five per cent (65%) of the complaints are taken care of the same day they are received. Crews run until 9:00 p.m. six (6) days a week. On Sunday, an individual is in the field from 8:00 a.m, to 8:00 p.m. and from 9:00 P.M. to 8:00 a.m. technicians are on call for major problems. The 1