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Cablevision Commission Meeting
December 18, 1981
Chairman Fred J. Steward called the meeting to order.
Members Present: Fred J. Steward, Dr. Richard Long, Jeannie Siems, Caroline Boyd,
James E. Burton, Roger D. Butz, Carl R. Rogers, Robert J. Brown, Robert D. Garrison
and Larry P. Burger, Clerk of the Commission.
Absent: Calvin Hall .
Alan McDonald appeared before the Commission to request that the Commission recommend
to the City Council to allow an increase in Cablevision rates. The increase that Mr.
McDonald is requesting is 20% on basic rate and from $1.50 to $2.00 on additional
outlets.
Jeannie Siems asked why Cablevision is asking for a 20% increase when the Consumer
Price Index has only increased 12 to 13%.
McDonald responded that Cablevision has not had an increase in the four years of
operation. If they were to keep up with inflation, he would have to ask for a 48%
increase.
Concerns were raised that some parts of the City were only hooked up to cable as late
as last fall and what kind of an effect a 20% rate increase would have on them.
McDonald pointed out that Des Moines currently is charging $10.50 for basic service.
He continued that Waterloo has one of the lowest rates in the state.
Jeannie Siems asked that Cablevision set their increase less than 20% so that people
on fixed incomes are not priced out of the market.
McDonald responded that he did not want to price anyone out of the market and did not
think an additional 50 per month would eliminate anyone.
A question was raised on whether the whole City was connected.
McDonald responded that nothing is 100%, but would estimate that they are 99%
connected.
A question was raised about connecting the Crossroads Shopping Center to
Cablevision.
Bill Smith of Cablevision responded that they are presently in negotiations with the
Northwestern Bell Phone Company to use their conduit.
Questions were raised on whether the Cablevision Ordinance was complied with
regarding the hooking up of public buildings and hospitals.
McDonald reported that Cablevision has hooked up every public building and hospital
that has requested service except for Schoitz Hospital and that is due to some
equipment problems, but should be resolved shortly. McDonald continued that he feels
that he has more than complied with the City Ordinance.
Concerns were raised that if the increase was allowed that many people on fixed
incomes would not be able to retain the Cablevision service.
McDonald responded that he would hope that the inflation would slow down so
additional increases would not be needed.
The Commission asked that McDonald provide information to them on what the effect
would be if Cablevision only increased basic service $1.00, expanded service $1.00
and additional outlets 504.
A questions was raised on what would happen if the rate increase was not allowed and
everyone would have to be disconnected.
McDonald responded that he has invested $5,000,000 in the Waterloo system and that if
he had to unhook everyone now on the system, he would have to come up with that money
and he couldn 't do that. McDonald continued that in the 22 years he has been in
cablevision business, had he kept up with inflation, the basic rate would be about
$22.00 per unit.
McDonald pointed out that even with the increase, Waterloo would still have one of
the lowest rates in the state.
Cablevision Commission Meeting Page 2
December 18, 1981
Several members of the Commission expressed the feeling that they would rather see
the additional service rates increased rather than basic services.
McDonald then ran through his written proposal for the Commission.
It was the concensus of the Commission that they would need additional time to review
the proposal just handed to them.
Chairman Steward called for any additional questions. There were none.
The next meeting for the Cablevision Commission was then set for January 7, 1982,
3:30 P.M. , in the Mayor's Conference Room, First Floor, City Hall , Waterloo, Iowa.
McDonald then stated that the franchise states that if no action is taken on this
request in 60 days it will be automatically passed, but he would be willing to
postpone that part of the franchise until the Commission has made their
recommendations.
With no other business, the meeting was adjourned at 4:25 P.M.
Larry P. Burger
Clerk, Cablevision Commission