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HomeMy WebLinkAbout06/02/75 Board of Public Works MinutesREGULAR MEETING JUNE 2, 1975 A regular meeting of the Board of Public Works was convened at 9:30 a.m. on Monday, June 2, 1975 by Chairman Rollin Farrand with all members present. Deputy City Attorneys Arthur Perry and Kathleen Cekanski were also present. Minutes of the previous regular meeting and special meetings were reviewed and approved. PUBLIC HEARING - PETITION OF VALLEYCABLEVISION TO INCREASE RATES This was the date set for holding a public hearing on the petition of Valley Cablevision to increase the rates and charges as stated in their franchise agreement with the City of South Bend. The hearing was advertised on May 23 and May 30 in the South Bend Tribune and in the Tri-County News. The following petition was filed with the Board on May 19, 1975: PETITION BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA The undersigned, Valley Cablevision Corporation, represents to the Board of Public Works of the City of South Bend, Indiana that heretofore on the 22nd day of August, 1966 the Board of Public Works and Safety of the City of South Bend, Indiana did grant to Valley Cablevision Corporation, a CATV franchise authorizing it to operate and provide a community antenna system in the City of South Bend, Indiana which said franchise was approved and confirmed by the Common Council of the City of South Bend by an ordinance adopted on August 26, 1966 and which ordinance was approved by the Mayor of the City of South Bend. Section XII of said franchise provides that the rates and charges to be made for service to be provided by Valley Cablevision Corporation shall not, without the prior approval of the Boa-j+d of Public Works and Safety exceed the rate set forth in said Section XII. Said Section XII provides that such rages shall be subject to review for the purpose of possible adjustment of such rates to the end that the rates shall be consistent with national averages and comparable markets. The rates and charges provided for by Section XII of said franchise agreement and the rates and charges proposed by Valley Cablevision Corporation for which it seeks approval are set forth in juxtaposition: Present Rates Proposed Rates and Charges and Charges Service Charges: Monthly service charge for one outlet (residential, commercial or other) $ 4.90 $ 6.50 Monthly service charge for each additional outlet .90 1.50 10% discount for monthly service charge when paid annually in advance (residential) Installation Charges: Installation Charge lst Connection 14.90 20.00 Additional residential outlets installed at that time No Charge No Charge r�7 REGULAR MEETING Present Rates and Charges Installation Charges: Additional outlets installed later $ 5.00 Relocation Charge within residence 5.00 Reconnection after disconnect 5.00 Connection to existing installation (transfer) 5.00 FM installation No Charge Disconnection No Charge JUNE 2, 1975 Proposed Rates and Charges $ 10.00 10.00 10.00 10.00 No Charge No Charge Installation charges are based on standard drops not exceeding 200 feet. Special installation charges, if any, on quotation based on cost. Technical consultant services for special or custom installations provided at no charge. Commercial installation and maintenance by private contractors welcome. Pates for commercial systems owned and maintained by others on quotation based on system design. The proposed rates are consistent with national averages and comparable markets. The increase for rates and charges requested is necessary so that Valley Cablevision Corporation may be able to render service of the highest caliber to the residents of the City of South Bend. WHEREFORE, the undersigned respectfully requests that the Board°of Public Works of the City of South Bend grant approval of the proposed rates and charges. VALLEY CABLEVISION CORPORATION s/ Harry White Dated this 19 day of May, 1975. Louis Chapleau, Attorney for Valley Cablevision Corporation, was present, as was Thomas Hamilton, Bazil O'Hagan, Warren Wheeler, Harry White, Robert Holmes and Greg Getzig. Mr. Chapleau.reviewed the history of Valley Cablevision, which was approved by the Board of Public Works on August 26, 1966, ratified by Council action on September 26, 1966 and signed by the Mayor on September 29, 1966. The Franchise Agreement provided for a rate schedule and also provided that the rates shall not be increased without the approval of the Board of Public Works. The Franchise Agreement also provides that a percentage of the gross income received by Valley shall be paid to the City of South Bend as a fee. The Franchise Agreement between Valley Cablevision and the Board is for a period of twenty years. Mr. Chapleau said the books and records of Valley Cablevision have been furnished to the City for examination. Information has also been furnished which shows that the proposed rates are consistent with national 'averages. Mr. Chapleau said Harry White, General Manager of Valley Cablevision would make th6 formal presentation. Mr. Harry White introduced himself to the Board as General Manager of Valley Cablevision and gave the Board his background in the coruiunica- tions field. Mr. White said he was asking the Board of Public Works 'REGULAR MEETING JUNE 2 1975 to act affirmatively on the rate adjustment for which Valley Cablevision has petitioned. The increase is needed for the extended service of Valley Cablevision and the obtaining of equipment. Construction costs have more than doubled. Mr. White. said the original franchise agreement submitted in 1966 envisioned far different techniques than are required in 1975.� Current prices have greatly increased operating expenses. Mr. White said con- struction costs in 1966 were based on $4200 per mile. The figure in 1975 is $11,500 per mile. It is necessary that Valley Cablevision. comply with all regulatory actions of the F.C.C. They must provide additional and more costly equipment in order to clear new channels for the future. They must invest in sophisticated testing equipment and provide the capacity for two-way communication. Mr. White said Valley Cablevision maintains a public access channel for public use and this channel is utilized by forty different political, educational, ethnic, religious, municipal and civic groups. ,Valley has added an emergency alert system for severe weather warnings. They provide closed-circuit facilities for hospitals and schools. Mr. White pointed out that Valley Cablevision is a taxpayer and Q will pay personal property taxes of $100,000 this year.- They `p pay a 3% fee to the City of South Bend from customer revenue. They pay a percentage of revenue to the F.C.C.- The -Board has been provided with audited statements which show the income. Mr. White then ;ZZ quoted cablevision rates from other cities which range from $6.00 to $6.95 per month. Mr. White said the interest rate in 1966 was 6%. In 1974, it was been 11% and 12%. The inflationary trend showed a 57.8% increase. Mr. -White then quoted local utility rates which have increased more than 50% in some cases. Mr. White concluded by saying that he felt Valley Cablevision's petition for -the rate increase ,was necessary, reasonable and justified: He said he would respectfully ask the Board to approve the petition. Mr. Farrand then asked if there was anyone else who wished to,speak on the matter. Mr. Silas West, 222 Laurel Street, identified himself to the Board. Mr. West said his concern was that the overall community did not have enough information about Cable Television. Mr.: West said he did not believe the Board had enough in-depth information from the presentation of Mr. White to act on a rate hike this Morning. Mr. West said Valley Cablevision serves 17,000 homes in South Bend and these customers cannot afford the rate increase. Mr. West said the original franchise agreement called for a review of the rates, at five-year intervals and said this was not done. He said he questioned the three per cent that was paid to the City. The F.C.C. now has new rules and regulations which govern the amount of money to be paid to the City and it is now -five per cent. Mr. West said the Valley Cablevision Corporation paid no revenue to the City in 1966 and in 1967. They paid $500 in 1968 and $500 in 1969 and the paid $3000 in 1972 and $3000 in 1973. Mr. West then questioned the fact that a contract such as this franchise agreement was awarded in 1966 without a feasibility study. Mr. West said the F.C.C. had requested that some of the principals in Valley Cablevision divest themselves of certain interests and this was not done. He said he was not sure that Vallev Cablevision was in compliance with al-1 F.C.C. regulations. Mr. West then said the best interests of the community should be kep in mind. He said, in these times, with the economic situation what it .is, the customers cannot afford this increase. Mr. Chapleau was asked if he wished to comment and he said they would have no response to Mr. West's presentation since he raised matters which were not pertinent to this hearing. He said the only question before the Board is whether the petition submitted should be approved or not approved. He said, in reference to the contract provision for review of the rates in five years and the provision for Board approval.being necessary for any rate increase, they consider these are two individual provisions in the contract. There was no 37 REGULAR MEETING JUNE 2, 1975 income paid to the City in 1966 and 1967 because the three per cent fee isbased on profit and it'was not until 1969 that the first customers were served. Mr. Seitz then asked Mr. White if Valley CAblevision had taken any actions to try to hold operating expenses down in view of the economic picture. Mr. White said they most definitely had. He said they are going to redesign and are eliminating equipment. However, he said it was going to be very difficult to keep up the quality of service without spending more money, because con- struction costs are very,high. Mr. White was questioned about certain channels which are not shown locally,and he explained that they are bound by the F.C.C. Rules and Regulations, but they are trying to reschedule those programs which are not shown, mainly baseball games, and show them on a vacant channel. Deputy City Attorney Arthur Perry then questioned Mr. White about F.C.C. regulations stipulating the number of channels which can be carried. Mr. White said they are presently operating twelve channels, which is what the F.C.C. will allow, but they have the capacity to carry thirty channels. Mr. Perry asked how many new customers have been added in South Bend in the past year and in the past two years. Mr. White said he could not give Mr. Perry that figure since he did not have the breakdown of customers with him.but he would get the information to Mr. Perry. Mr. Perry asked Mr. White if there had been a substantial increase in customers and Mr..White said he felt it was upwards of forty per cent. Mr. White was asked if Valley Cablevision could go to the F.C.C."to request permission to add additional channels. Mr. White said they plan to ask the F.C.C. for a waiver to allow this. Mr. Farrand asked Mr. Whit if Valley has filed petitions for rate increases in other areas they serve. Mr. White said they have not at the present time. They have rude preliminary inquiries in other areas but since South Bend is the largest area they serve, they began in South Bend. Mr. Perry asked Mr. White about the cost of operations in different areas Valley serves and asked if the increase in South Bend would be disproportionate to the operation, so that the South Bend customers would be under- writing the cost in other areas. Mr. White said construction and maintenance costs are higher in South Bend and lower in the smaller communities. Mr. Farrand said he would like to hear a comment from Mr. White in regard to three questions raised by Mr. West; the matter of no feasibility study being made, the divestiture of certain interests and possible non-compliance with any F.C.C. regulations or rulings. Mr. White said he knew of no F.C.C. regulations that were not being complied with. In regard to divestiture of certain interests, Mr. White said this matter is before the Commission now and they have not made a decision as yet. Mr. West then provided the Board with copies of documents and information pertaining to Cable Television. The documents were filed with the Board and Mr. Chapleau was advised that copies would be furnished. to him. Upon motion made, seconded and carried, the Board took the matter under advisement. A decision will be announced in two weeks. REQUEST FOR DOWNTOWN PARKING Stephen McTigue, Executive Director of the Chamber of Commerce, was present and asked the Board about their request to allow free parking at meters on Monday nights and Saturdays downtown to help the merchants. Mr. McTigue was advised that the Boad has approved the request for parking in the 100 block of North Michigan. It would take 30 to 60 days and an expenditure of approximately $2500 to purchase new meters for this area, so the Board is considering using REGULAR MEETING JUNE 2, 1975 the block as a flat lot if arrangements can be worked out. In regard to metered free parking, Mr. Farrand said the matter is still under study by the Controller's Office. Mr. Hubert Getzinger, President of the Downtown Council, thanked the Board for its action in regard to the 100 block of North Michigan Street and said they would hope for a favorable response in regard to the request for free parking at meters on Monday nights and Saturdays. RECOMMENDATIONS RE: FIRE STATION NO. 11 AND OLD NO. 4 The Board received the following recommendations: "Gentlemen: I have reviewed the bid of $13,000 submitted by Mr. Bluie Marks for Fire Station No. 11 on Lincolnway West. I note that this bid is approximately 50 per cent of the appraised value of this station, based on the average appraised price of two appraisals. In my judgement this offer Q is too far below the average appraised price of the Fire Station to warrant the Bord concluding the sale at this price. cry I also note that the Board has been approached by the Civil W Defense Agency for a lease of this building. It is my recommendation that the bid of $13,000 be rejected, and the Board enter into a lease with the Civil Defense Agency for this site. This will insure that the building will be maintained in a satisfactory condition. The Board thus still retains the option of selling this station at some future date should such a decision be made and a satisfactory price be offered. Very truly yours, s/ Rollin E. Farrand, P. E. " Upon motion made, seconded and carried, the Board approved the recommendation and rejected the bid of Mr. Marks for the station. The lease with the Civil Defense Agency will be approved. "Gentlemen: I have reviewed the letter from Bankers Dispatch Corporation regarding the purchase of old Fire Station No. 4 at 1210 West Thomas Street. I also note that we have other verbal inquiries regarding the possible purchase of this station. It is my recommendation that the Board advertise this Fire Station for sale a second time in an attempt to secure a firm offer for the sale of this property. I note that extensive remodeling may be required for the building and rezoning may be required dependent upon the use. Very truly yours, s/ Rollin E. Farrand, P. E. " Upon motion made, seconded and carried, the Board accepted the recommendation and authorized the Clerk to advertise for bids with sealed bids to be received on June 301 1975 at 9:30 a.m. STREET SERVICES APPROVED -MISSIONARY DORA LOTTIE Upon the favorable recommendation of Deputy City Attorney Kathleen Cekanski, the Board.approved the request of Missionary Dora Lottie to hold Street Services at Napier and Chapin.Street on Tuesdays and Thursdays from 3:00 to 4:00 p.m. during June. The approval was subject to there being no interference with pedestrian traffic or congestion of vehicular traffic in the area because of the services. If such problems occur, the approval will be rescinded. 7 REGULAR MEETING JUNE 2, 1975 STREET SERVICES APPROVED - REV: BRINKLEY COLLIER Upon the favorable recommendation of Deputy City Attorney Kathleen Cekanski, the Board approved the request of Rev. Brinkley Collier to hold Street Services on two Saturdays a month at the corner of Washington and Walnut from 6:00 to 7:30 p.m. and on two Saturdays a month at the corner of Garst and Franklin Streets from 6:00 to 7:30 p.m., with such services to be held from June 7 through October 4. Approval was given subject to there being no interference with pedestrian traffic or congestion of vehicular traffic in the areas because of such services. If such problems occur, the approval will be rescinded. RESOLUTION OF INDIANA STATE HIGHWAY COMMISSION FILED RE: RIGHT TURN ON RED AT U. S. 31 AND IRELAND ROAD A resolution of the Indiana State Highway Commission, which would permit right turns on red at the intersection of U. S. 31 and Ireland Road, was received by the Board: Upon motion made, seconded and carried, the Board filed. -the resolution. TRAFFIC CONTROL DEVICES APPROVED The Bureau of Traffic, and Lighting recommended the installation of the following traffic control devices: 1. Two Hour parking on both sides of the 100 and 200 blocks of South Taylor Street. Upon motion made, seconded and carried, the installation was approved. 2. No Parking Anytime on the East side of Bendix Drive from a point 100 feet south of Council Oak to a point 200 feet north of the north boundary of Boland Park. Upon motion made, seconded and carried, the installation was approved. John Linstaedt was present and suggested to the Board that there be no parking allowed on either side of Bendix Drive at this location since this is a very congested area. The Board referred the suggestion to the Bureau of Traffic and Lighting for consideration. FIRE WORKS DISPLAY APPROVED - MORRIS PARK COUNTRY CLUB A permit from the State Fire Marshall's Office and a Certificate of Insurance were submitted to the Board by the Morris Park Country Club in connection with their planned fireworks display on July 4. Upon motion made, seconded and carried, the fireworks display was approved. PERMISSION FOR GARAGE MOVE APPROVED The Board received a recommendation from the Bureau of Buildings and Permits that approval be given for the moving of a garage from 3905 S. Michigan Street to 4201 S. Main Street by Mitschelen House Movers. Upon motion made, seconded and carried, the Board approved the garage move, subject to coordination by the Bureau of Traffic and Lighting. REQUEST FOR STREET LIGHTS - AIRPORT INDUSTRIAL PARK The Board received a request from Howard Bessire, requesting installation of street lights in Airport Industrial Park, Phase III. Mr. Farrand noted that the Board's position is that, at the present time, there is no money available for additional lighting. Upon motion made, seconded and carried, the request was referred to the Bureau of Traffic and Lighting to be filed until such time as additional funds are available for street lighting. 1 REGULAR 14EETING JUNE 2 , 1975 REQUEST FOR 14ALKATHON NOTRE DAHME HUNGER COALITION The Board -received a request from Stephen R. Judge representing the Notre Dame Hunger Coalition to hold a Hike for Hunger on October 11, 1975. There is a previous request from the American Heart Association to hold their Cyclethon on October 5, 1975. Rules of the Board require a two -week time period between such events. Mr. Judge is to be advised that another date should be submitted for consideration. RECOMMENDATION FROM AREA PLAN COMMISSION RE: VACATION PETITION NORTH -SOUTH ALLEY BETWEEN WALNUT AND MAPLE STREETS The Board received a recommendation from the Area Plan Commission that a public hearing was held on the petition of the St, Joseph Burial Association to vacate the north -south alley between Walnut and Maple Street, from the north right-of-way line of Western Avenue to the south right-of-way line of the first east -west alley north of Western Avenue, City of South Bend, and the Commission was favorably recommending the petition to the Board of Public Works. ® Upon motion made, seconded and carried, the Board filed the recommendation and referred the petition to the Bureau of Engineering for preparation of the Vacation Resolution. W HOMELAND ADDITION NO. 2 SANITARY SEWERS - FILING OF PRELIMINARY ASSESSMENT ROLL, ENGINEER'S ESTIMATE AND PRELIMINARY PLANS The Bureau of Design and Administration presented to the Board the preliminary assessment roll, engineer's estimate and preliminary plans for the Homeland Addition No. 2 Sanitary Sewers. Upon motion made, seconded and carried, the documents were ordered filed. ADOPTION OF IMPROVEMENT RESOLUTION NO. 34153, 1975 Upon motion made, seconded and carried, the following resolution was adopted: IMPROVE14ENT RESOLUTION NO. 34152 1975 BE IT RESOLVED by the Board of Public Works of the City of;South Bend, Indiana, that it is deemed necessary to improve the Homeland Subdivision by constructing a sanitary sewer on Ewing from Olive to Meade, continuing on Meade from Ewing to Prairie, continuing. on Prairie from Meade to Irvington. The same to be done in accordance with the profiles, drawings, general details and specifications for such improvements approved and to be adopted by the Board of Public Works of the City of South Bend, Indiana, immediately upon the final adoption and confirmation of this Resolution and placed on file in the Office of the Board of Public Works of said City, and such improvement is now ordered. The.'total cost of said improvement, including all incidental costs, such as advertising and engineering, shall be assessed upon the real estate abutting on said sanitary sewer, in accordance with applicable statutes. The said improvement is to be financed and paid for as provided in Chapter 40 of the Acts of 1953, as amended (1971 I.C. 18-6-3). Assessments, if deferred, are to be paid in five (5) equal installments, with interest at the rate of six (6) per cent per annum. The 16 day of June, 1975 at.the hour of 9:30 a.m, o'clock, Local Time, is hereby fixed as the time and the Board of Works Hearing Room as the place when and where all persons whose property may be affected by such proposed improvement, may be heard as to the necessity for the same, and all petitions and remonstrances received. The Board will, on said day, decide whether- the benefits accruing to abutting �1 REGULAR MEETING JUNE 2, 1975 property, and to the City of South Bend,'Indiana, will be equal to or exceed the estimated cost of said improvement. The Clerk of the Board is hereby ordered to give notice by two weekly publications of the time and place of hearing of this resolution. Adopted June 2, 1975. BOARD OF PUBLIC WORKS s/ Rollin E. Farrand s/ James R. Seitz s/ James V. Barcome Notice of Hearing Published on June 6 and June 13, 1975 s/ Patricia DeClercq, Clerk of the Board APPROVAL OF CITY -OWNED LOTS FOR GARDENS Upon motion made, seconded and carried, the following city -owned lots were approved for use as community gardens: 612 E. Wenger, 304 S. Iowa, 618 E. Wenger, 1611 S. Fellows, 1506 S. High, 923 E. Bowman, 620 S. Clinton, 613 S. Clinton and 1601 Longley. APPROVAL OF TITLE SHEET AND BID ADVERTISING FOR WIDENER LANE SANITARY SEWERS The title sheet approving the plans for the Widener Lane Sanitary Sewers, authorized under Improvement Resolution No. 3406, 1974, adopted by the Board of Public Works on September 3, 1974, was submitted to the Board. Upon motion made, seconded and carried, the title sheet was approved. The Bureau of Design and Administration requested that bids for the project be advertised and that a non-refundablt charge of $5.00 be made for plans and specifications. Upon motion made, seconded and carried, the Board directed the Clerk to advertise for bids for the project, with bids to be received on Monday, June 16, 1975 at 9:30 a.m, at the regular meeting of the Board. RIVER BEND PLAZA APPLICATIONS APPROVED Louis Wilcox, Director of River Bend Plaza, submitted the following applications to the Board with a favorable recommendation: Smith Bicycle Shop, Display Booth, July 12, 1975 Rickey`s.Bike Mart, Display Booth, July 12, 1975 Sounds Unlimited, Inc., Display Booth, the month of June Kathi Farrar - Sales Booth -Macrame - One Month Upon motion made, seconded and carried, the applications were approved. FILING OF CERTIFICATE OF INSURANCE - AMERICAN CHAIN AND CABLE CO. A Certificate of Insurance for the American Chain and Cable Company was submitted to the Board. Upon motion made, seconded and carried, the insurance certificate was ordered filed. STREET LIGHT OUTAGE REPORT FILED The Street Light Outage Report for the period of May 15 through May 27 was received. Upon motion made, seconded and carr-ied, the report was ordered filed. 37T f� REGULAR MEETING BONDS APPROVED JUNE 2, 1975 Ray S. Andrysiak, Bureau of Engineering, recommended to the Board that the following bonds were properly executed and could be approved: Contractor's Bond - Robert E. Reuter d/b/a Swank Cement Contracting Company to June 2, 1976 Contractor's Bond - Edward Nierzwicki d/b/a N & S Construction Company to May 23, 1976 Contractor's Bond - Derso Horvath to January 1, 1976. Contractor's Bond - Willie's Construction Company, Inc. to June 171, 1976. Contractor's Bond - Verlin V. Engle d/b/a Engle Construction Company to May 19, 1976. Contractor's Bond - Roseland Construction Company to December 31, 1975. Upon motion made, seconded and carried, the bonds were approved to the dates listed. There being no further business to come before the Board, upon motion made, seconded and carried, the meeting adjourned at 11:15 a.m. ATTEST: CLERK ,(j�Q Ro'llin E. Farrand J es V. Barcome