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Comcast cable customers may pay more in Mishawaka

Posted on: Thursday, 4 December 2003, 06:00 CST

MISHAWAKA -- Comcast cable customers in Mishawaka may see an increase in their cable bills in January.

The city is poised to approve a 10-year agreement with Comcast that would raise the amount of money it collects from the cable company's revenues by 2 percent. The city currently receives 3 percent of the company's revenues in what's called a franchise fee. The new agreement calls for a 5 percent fee.

The boost would raise Mishawaka's fee to what South Bend collects from Comcast.

That fee is generally passed on to subscribers in their monthly bills as a rate increase.

Under federal law, the maximum cities may collect in franchise fees is 5 percent of a company's revenue.

The increase would give the city an additional $100,000 a year, said Philip Miller, president of the Board of Public Works and Safety. Last year the city collected $175,000 in fees.

The board approved the franchise agreement with Comcast last month and needs Common Council approval by Dec. 31, when the city's 10-year agreement with Comcast's predecessor, AT&T Broadband (formerly TCI), expires.

Comcast bought AT&T Broadband in February, said Lori Marsh, Comcast's manager of corporate affairs.

On Monday the Common Council unanimously agreed to postpone a vote on the fee increase until its next meeting, Dec. 15, so residents may attend the public hearing.

Marsh said basic cable costs less than $15 a month, but she did not have exact figures Monday evening. She said the increase for customers would depend on their cable programming because the 2 percent boost is based on a percentage of the total bill.

"The city is authorizing us to add 2 percent onto cable bills," Marsh said. "We remit it back to the city because we collect it for the city."

For customers who have basic cable service at an estimated $13.95 a month, the increase would add about 28 more cents to their bills.

Gregg Hixenbaugh, D-1st District, made the motion to postpone a vote until the public has an opportunity to weigh in.

He also raised concerns about the city's apparent hands-off approach to regulating basic cable services and the administration's decision to raise the franchise fee to 5 percent without holding a special public meeting.

Miller said most subscribers carry more than the basic cable channels and enhanced programming can't be regulated by cities.

Dave Wood, R-2nd District, asked Miller whether the agreement with Comcast precludes other cable companies from offering cable services in the city. It doesn't. Other companies could offer cable services in Mishawaka. Wood raised the question because during Mayor Robert C. Beutter's State of the City address, Beutter said he would like the city to offer cable services to residents. A study hasn't been conducted on the plan, though.

Wood likes Beutter's idea and thinks it would add healthy competition to the local cable market.

In other business, the council unanimously approved an annexation and zone change for a 48-acre parcel of land in the 55600 block of Fir Road. The vacant land is slated for a mixed development called Deer Run. It would include 119 townhouses, some commercial buildings and three light industrial buildings.

Staff writer Carol Draeger:

cdraeger@sbtinfo.com

(574) 235-6553

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