IRVINE : Cable TV Contract Renewal Delayed
The City Council voted Tuesday to delay renewing its cable-television contract with the Irvine Co. to further discuss ways of improving the proposed agreement.
Council members want their cable television committee to examine extending the proposed 10-year contract by three years in exchange for more concessions from Community Cablevision, which is owned by the Irvine Co. The cable company’s 15-year service contract with Irvine expires in August.
The council’s Finance Commission recommended that the city renew the contract for 10 years. But on Tuesday, the president of Community Cablevision, which had requested a 25-year term, told the council that a shorter term probably will “increase pressure to increase subscribers’ rates.â€
The contract now calls for the cable company to make $10 million to $12 million in improvements to upgrade picture quality. The shorter the contract renewal term is, the harder it would be for the company to borrow money at favorable terms and stretch the improvement costs over a longer period of time, Cablevision President J. Donald S. McNutt said.
Councilman William A. (Art) Bloomer suggested that the city approve a contract of up to 13 years if the cable company promises to keep rates low and provide more money to help public education channels. The proposed 10-year contract calls for the company to give $650,000 in equipment to the city and area school districts to help with public education programs. Bloomer suggested an added $200,000 in exchange for the three extra years.
McNutt said his company cannot commit to specific rates for customers, but would be willing to discuss other concessions in exchange for a longer contract. The added $200,000 would probably be an amount “we could live with,†McNutt said.
