4/23/1980 - Laserfiche WebLink

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MR. CROSBY PROCEEDED TO EXPLAIN THE CONTENTS OF THE PACKET AND POINTED OUT THAT FLORIDA CABLEVISION HAS BEEN IN SERVICE FOR 21 YEARS AND THE LAST RATE INCREASE THEY ASKED FOR WAS IN 1973. HE CONTINUED THAT NOW THE COMPANY FINDS THEY MUST RAISE THE PRICE FROM $6.50 TO $7.25 PER MONTH, AND EVEN AFTER CONSIDERING THE OTHER VARIOUS RATE INCREASES THEY ARE ASKING FOR, THIS WILL PUT THEM IN THE LOWER 40% OF THE STATE; THEREFORE, THEY FEEL THIS INCREASE IS FAIR AND NECESSARY. ATTORNEY COLLINS ASKED HOW MANY OF THE RATES USED AS COMPARABLES INCLUDED A FRANCHISE FEE IN THEM, BUT MR. CROSBY STATED HE DID NOT HAVE THE INFORMATION HERE. MR. CROSBY STRESSED THAT A CABLE COMPANY IS NOT A UTILITY; IT IS A PRIVATE BUSINESS, AND IN THIS AREA, PEOPLE ARE NOT REQUIRED TO HAVE CABLE TELEVISION TO HAVE TELEVISION. HE CONTINUED THAT INDIAN RIVER COUNTY HAS 70% OF ITS RESIDENTS TAKING CABLEVISION. MR. CROSBY COMMENTED THAT A CABLE SYSTEM HAS A LIFE SPAN OF 10 TO 15 YEARS AND MUST BE UPGRADED OR COMPLETELY REBUILT, WHICH WOULD AFFECT THE RATES. HE ADDED THAT THEIR COMPANY SERVES SIX ENTITIES AND FOUR OF THEM HAVE APPROVED THE RATE INCREASE AS REQUESTED TODAY, AND THEY ARE: CITY OF FT. PIERCE, CITY OF ST. LUCIE, ST. LUCIE VILLAGE, AND INDIAN RIVER SHORES - ALL HAVE A 3% FRANCHISE, EXCEPT INDIAN RIVER SHORES. CHAIRMAN SIEBERT ASKED WHAT CABLEVISION'S PARENT COMPANY'S RATE OF RETURN WAS ON THEIR INVESTMENT. MR. CROSBY ADVISED THAT HE COULD GET THE BOARD AN ANNUAL REPORT WHICH WOULD HAVE THAT INFORMATION. INTERGOVERNMENTAL COORDINATOR THOMAS CALLED TO THE BOARD'S ATTENTION THE FACT THAT THERE WAS NO PROVISION IN THE LAST AGREEMENT At THAT IT WOULD BE NECESSARY TO COME TO THE BOARD IF A BILLING CHANGE WAS MADE. HE ADDED THAT CABLEVISION SUBSTANTIALLY INCREASED THEIR INCOME AND THEIR CASH FLOW, AND THOUGHT THAT ANY NEW CONTRACT SHOULD HAVE THE APPROVAL OF THE BOARD TO APPROVE ANY METHOD OF BILLING THAT WOULD EFFECT THE CASH FLOW. 27 APR 2 31980 43 PAGF 2�1