06/16/1980 Board of Public Works Minutes

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is REGULAR MEETING JUNE 16, 1980 The rise in gasoline, cable supplies and materials has increased, and a 58% increase in wages was realized in the past year. The company now employed over 110 people. Mr. Hren stated that increases in operating and capital costs have not been offset in over 17 months. Mr. Kernan asked if anyone attending the meeting wishes to make any comments concerning the rate increase. Mr. James Page, 1111 North Blaine, stated that he has seen the progress made in the area of expansion, but he had experienced a problem a month ago with equipment and had been without the cable for over a month. He felt a reduction in the rates he paid should be made to him since the problem had been with the cable. Mr. Hren stated that Indiana Cable T.V. offered free service and main- tenance of cable as part of the subscriber fee. Also, response to complaints is usually made within 24 to 36 hours of the complaint. Mr. Page stated that one channel had been out for over a month for several subscribers he knew. Mr..Hren assured Mr. Page that he would investigate the matter. Mr. McMahon stated that Cable T.V. had a policy of rebating to the customer part of the monthly rate for service not provided, and Mr. Hren indicated that this was the case. Mr. E. R. Windhorst, 53166 Twyckenham Road, suggested that Cable T.V. was involved in two businesses, one of the distribution of signals off the air and the special services it provided. Mr. McMahon reminded Mr. Windhorst that the Board had jurisdiction only as far as the rate increase was concerned. Mr. Windhorst stated that he felt the regular subscribers were subsidizing the other services. When the special services were introduced, he stated that there was no reduction in the price paid by the regular customers. He felt the people who were paying the regular rate were subsidizing the special programs. He felt there was no question that the cable had to be serviced and the office force paid, and he felt the amount should be adjusted to the regular customers. Mr. McMahon asked if the figures furnished to the Board reflected the total operation or were they restricted to basic service. Mr. Hren stated that they included total operation. He stated that the total deficit has decreased since the special programming, and the channels have been increased to the basic customers. He indicated that the pay channels are not subsidized by the regular customers as Mr. Windhorst had suggested. He further explained that the Federal Communications Commission has structured that local govern- mental bodies have no jurisdiction over pay channels. Mr. Kernan asked if, on the expense side, Cable T.V. has shown an added cost to personnel. Mr. Hren stated that that was correct, and all figures were broken down. He stated that expenses and income is reflected. He stated that the specialty programs were paid for on a subscription basis. Mr. Windhorst stated that' ' 'this may have helped the basic, services somewhat, but he felt the subscriber rate for basic services has helped the special programs more. Mr. H. Theodore Noell, attorney for Indiana Cablevision, stated that the deficit would be substantially higher if it were not for pay television. He also stated that a higher rate increase would be requested if that was not the case. Mr. Kernan stated that, since last year, two new channels have been added. Mr. Hren stated that, over the past two years, three channels have been added and the regular cable channels have also been expanded. Mr. Kernan stated that a substantial increase was noted in programming and origination. He asked about this. Mr. Hren stated that Cable T.V. had a full -time staff member and part -time people to do the programming. The company provided community affairs on its channel, and he referred to a program sponsored by Indiana University on aging and special Little League programs which have been aired. He stated that the company has reduced its deficit over the past few years and that the rate increase or adjustment being requested at this time would not eliminate the the deficit. Mr. Kernan stated that he was concerned about program- ming and origination. Mr. Hren stated that, in the line item, the following expenses were considered: administrative salaries, production salaries, office supplies and rent, origination expense and costs for 1 1 u