Ford City Borough Council members review an expired agreement with Comcast during last night’s public hearing.
by David Croyle
A public hearing to discuss Comcast’s past performance in Ford City Borough was held last night at the Municipal Building.
The Borough’s current franchise with Comcast recently expired, and Ford City is beginning the process of renewing the franchise agreement.
According to the Ford City budget, Comcast will pay $50,600 in 2011, or approximately 5% of the money the cable company receives from subscribers.
The current agreement was established in 1998 with Adelphia. It was transferred to Comcast when it purchased the troubled cable system during bankruptcy. It expired two months ago.
The length of the new franchise contract is still on the table for discussion; however, Comcast is negotiating for a 15-year agreement by offering the Borough as much as 6% of the annual revenue. While that could mean more money to Ford City, it may not work out that way. Cable subscribership has been on the decline over the past three years in Armstrong County – down one-third from only three years ago – representing thousands of lost dollars to municipalities.
Ford City Solicitor Frank Wolfe pointed out that the agreement is non-exclusive. If another cable company were to come into the area, Ford City could also create an agreement with another entity as well.
Councilman Lou Vergari said he wanted to see the Library get free Internet access under a new agreement. The previous agreement provides for free cable service to the Library, but not Internet service. Free Internet service could save the Library as much as $1,000 per year.
Ford City Fire Chief Scott Gaiser, the only person from the public to attend the hearing, asked Council to incorporate a clause to get the fire department free Internet as well. The volunteer group currently pays Windstream for their Internet service.
Councilman Ron Dillard said use of Internet service by the borough is a safety issue as well.
Councilman Ron Dillard said the new franchise agreement with Comcast will not only benefit Ford City Borough financially, but also assist in security surveillance.
“In negotiations, we want to talk about the access because we want to enhance our security cameras around town because of playgrounds and other locations. We wanted to get a better agreement so we would not have to pay for those cameras,” he said.
According to Dillard, video from security cameras is available through computers in the borough office, police department and “council members that want access can have it on their home computers if they like.”
Council members also discussed the possibility of including Divine Redeemer in the agreement for free Internet and cable television service.
The public hearing was required pursuant to the federal Cable Act, which sets forth the process for franchise renewal.