Council approves 1st reading of cable agreements

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March 16, 2010

The Daily Independent Tue Mar 16, 2010, 11:25 PM EDT

FLATWOODS — The Flatwoods City Council on Tuesday gave tentative approval to new franchise agreements with the city’s two television cable providers.

However, the proposed agreements aren’t exactly what either cable company had requested.

The council voted unanimously to approve first reading of an ordinance granting five-year franchises to Time Warner Cable and Armstrong Cable.

Both companies had sought longer contracts. Time Warner wanted a 10-year pact and Armstrong wanted 15 years, Mayor Bobby Crager said.

However, the council said it was unwilling to sign off on anything longer than five years.

Councilman Darrell “Sonny” Hewlett said he was concerned the city might hamstring itself if it approved an agreement longer than five years. That, he said, could deter other cable providers that might be able to offer better rates and service from doing business in the city.

“Personally, I’d like to stick with five years,” he said. “That gives them ample time to upgrade their equipment and service.”

Time Warner provides service to a majority of Flatwoods residents who subscribe to cable TV. Armstrong services those who live on the west side of the city, including residents of Caroline Estates, Crager said.

The city receives about $47,000 a year in franchise fees from Time Warner and considerably less from Armstrong, Crager said.

The city’s previous five-year franchise agreement with Time Warner lapsed in August, and the current agreement with Armstrong expires in May, Crager said.

Second reading and approval of the ordinance could come at the council’s April meeting.

In an unrelated matter, the council approved an agreement for its public works department to purchase materials on consignment from C.I. Thornburg of Huntington.

The council also discussed the possibility of making changes to the rate structure at the city pool in an effort to reduce the amount of money the city loses on it, but no action was taken.

KENNETH HART can be reached at khart@dailyindependent.com or (606) 326-2654.

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