The expiration of Time Warner Cable’s franchise agreement provides an opportunity for Henderson. It remains to be seen whether that opportunity will be for more city revenue, more services or a change in companies.
The City Council held a brief discussion Monday night on the pending negotiations for a new franchise agreement with the cable company. Henderson and Vance County have separate but nearly identical deals with Time Warner and are planning to negotiate in sync. (The differences between the city and county agreements involve such issues as unincorporated areas and population density for new cabling, which aren’t factors inside the city.)
The current franchise expires Nov. 15.
Brad Phillips, a Time Warner vice president, sent the city a draft contract for the next franchise last week. The draft makes few changes from the current deal, and it sticks with a payment of 5 percent of gross revenue to the city. That deal earns the city some $126,000 a year.
City Manager Eric Williams said the plan is for the staff to review the draft, then meet with the council to discuss how to proceed. He said one issue will be the length of the contract, with the cable company pushing for a longer term.
“As fast as technology is expanding, to do a five-year contract seems ludicrous,” council member Elissa Yount said.
The North Carolina League of Municipalities has issued a “cookbook” of issues to consider in negotiating cable franchise agreements because of a wave of technological developments, from broadband Internet service to digital phone service to high-definition television.
Granite Street resident Marty Gister raised the idea of inviting another cable company to join the negotiations and increase Henderson’s bargaining power.
Any other cable company could enter the Henderson market at any time, Mayor Clem Seifert said, because Time Warner has a nonexclusive franchise, but the costs of installing a second cable network would be prohibitive.
Gister, however, noted that the contract provides for the sale of Time Warner’s local assets to another cable company at fair market value if Time Warner loses the franchise. He suggested that Cox Communications, which operates in Wake County and eastern North Carolina, would be interested in moving into Vance County.
Yount suggested advertising the city franchise’s pending availability.
Williams said the cable system would be a perfect item to highlight on the municipal government’s upgraded Web site, which could be launched by the end of this month.
The city manager said he hopes to demonstrate the new Web site at the council’s next meeting March 21. He said the project, overseen by Pam Brame and Sheri Jones for the city, will come in under budget.
Also Monday night, the council:
* Authorized a joint city-county application for a federal Justice Assistance Grant of $41,471, 60 percent of which will go to the city and 40 percent to the county. The grant requires no local match.
Police Chief Glen Allen said the grant is written to apply the money toward a victim/witness services coordinator he will propose for the fiscal year beginning July 1. But if the City Council doesn’t add that position, the money can shifted elsewhere within law enforcement, and the city will have four years to spend the money.
* Assigned two engineering contracts with Peirson & Whitman to Earth Tech, whose purchase of Peirson & Whitman became official Monday. The contracts cover sewer rehabilitation and raw water facilities.
Mike Acquesta of P&W said the terms of the contracts don’t change, and if anything, the city will get better service because he will be able to focus on engineering and customers instead of running a business.
* Scheduled meetings of the Finance and Intergovernmental Relations Committee and the Public Utilities Committee for noon today and for the Community Development Committee for 4 p.m. Wednesday.