10/30/1978 Board of Public Works Minutes

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REGULAR MEETING CHANGE ORDER NO. 2 FOR FIRE STATION $6 APPROVED OCTOBER 30, 1978 Change Order GC -2 in the contract for construction of Fire Station No. 6 was submitted to the Board. The Change Order increases the contract by $210.00 and covers the changing of glass from regular insulated glass to tempered insulated glass. Upon motion made by Mr. McMahon, seconded by Mr. Brunner and carried, the Change Order was approved. PETITION FOR RATE INCREASE - INDIANA CABLEVISION- APPROVED Peter H. Mullen, City Controller, submitted the following letter to the Board: "After careful review of the request from Indiana Cablevision Corporation for a rate increase, it is the opinion of my staff and myself that this rate request has a basis of justification. By applying Indiana Cablevison figures of assets and liab <ilities with those assets and liabilities of businesses within the same industry, the ratios certainly indicate that they are not in a profitable situation. The ratios definitely indicate the opening of anew business as did actually occur when`Indiana Cablevision recently purchased the franchise rights. It is evident from our studies that they have a heavy commitment to the South Bend area and they are "investing" in the long term. It is-evidenced from the figures that were presented that.even with the rate increase, Indiana Cablevision must virtually double their present customers to be placed in a "break- even" situation. It is a fact of depreciation and long -term interest that is placing Indiana Cablevision in a loss situation for last year, as well as year -to -date present situation. This depreciation and interest mainly falls into the category of new capital equipment to modernize and improve picture quality and service. In their petition for increase, they have indicated that their increase in subscribers has on:ly increased 8.9 per cent from 1975. I would like to take this opportunity to point out that this increase in number of subscribers is not a fact that the Board should address in addressing the rate increase, as this was a condition of the market and not an area that the Board can or should have any control over. It is sufficient to say that this increase is something that we could not control and that we should not be in a position to grant this increase because of the small increase. In light of the above, I feel that the supply- demand will take effect. It is the choice of the subscriber to continue with Indiana Cablevision with this price increase or to select an alternative of an antenna or UHF Channels. This choise is not available with other federally regulated or state regulated utilities in that there is no alternative to their product. Therefore, in conclusion, I feel that the rate increase from Indiana Cablevision is justified based upon their financial records and further based upon the subscribers to the service have an alternative to cable television. Sincerely, s/ Peter H. Mullen " Jeff Buford, General Manager of Indiana Cablevision Corporation, was present. Mr. Brunner asked Mr. Buford if this rate increase was comparable with surrounding community rates. Mr. Buford said they are pursuing rate increases in Mishawaka and Elkhart. However, 1