HomeMy Public PortalAbout04-29-1993 BOARD OF PUBLIC WORKS AND SAFETY OF THE
CITY OF RICHMOND. INDIANA. APRIL 29. 1993
1 The Board of Public Works and Safety of the City of Richmond, Indiana, met at 9 a.m.Thursday,April 29, 1993,
111 2 in the Municipal Building in said City.Chairperson Janet Hibner presided with Dennis Grimes and Earnest Jarvis
3 in attendance.The following business was had to-wit:
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6 APPROVAL OF MINUTES OF APRIL 22.1993
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8 The minutes of the previous meeting were approved on a motion by Jarvis, second by Grimes and carried on a
9 unanimous voice vote.
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12 CLAIMS FOR PAYMENT
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14 Claims were submitted by the City Controller's office for $65,680.12 most of which was used for supplies and
15 contractual services;and$86,683 which included$19,459 payable to Renewed Performance,progress payment
16 for refurbishing a fire engine. Grimes moved to approve, second by Jarvis and the motion was carried by a
17 unanimous voice vote.
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20 REQUESTS
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22 A. Jarvis read a request signed by Richard Rexford representing the Richmond Jaycees asking for
23 approval to block off some streets for the Go Kart races June 12 and 13 during the Richmond Area
24 Rose Festival. He noted that the request had been sent to the Traffic Safety Division of the Richmond
25 Police Department stating that the course would be the same as last year-South 4th Street from Main
26 Street to South A Street, Fifth Street from North A to South A, Sixth Street from North A to South A,the
27 north service alley from North 5th to North 7th, the south service alley from South 5th to South 7th
28 Street, the Wayne County Courthouse annex parking lot, the Municipal Building parking lot between
29 North 6th and North 7th Street and both the south and east entrances to the Municipal Building parking
30 lots. Also, the report stated, barricades will be required at 10 different locations and an additional 10
31 police officers will need to be brought in on overtime the day of the race.
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33 Rexford explained this was his first year to deal with the race and.he was advised that he should
34 contact the county to get permission to use their areas. Grimes asked for proof of insurance be
35 forwarded to the Board of Works. Jarvis moved to approve the request taking into consideration the
36 recommendations,second by Grimes and carried by a unanimous voice vote.
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38 CONTRACTS
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40 A. Grimes read bids for the 1993 aggregate and bituminous materials contract which included those
41 from American Aggregates, Ashland Oil, Barrett Paving, Contractors United, Richmond Concrete &
42 Gravel and Stonehenge Concrete and Gravel. He noted that they had been reviewed by Purchasing
43 Manager Vicki Stevens and Street Division Manager Bill Smith.
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45 Contracts were awarded for: concrete delivered Class A to Richmond Concrete at $40 per ton and
46 Stonehenge was named the alternate supplier at $40.90 per ton; Class B concrete to Richmond
47 Concrete at $37 per ton with Stonehenge as the alternate supplier at $37.90 per ton; concrete
48 delivered less than three cubic yard loads with a $25 add on to Stonehenge and Barrett Paving with
49 American Aggregates as the alternate supplier; maintenance limestone to Barret Paving, with
50 American Aggregates as the alternate; limestone and flat stone to Barrett Paving; gravel to American
51 Aggregates with Stonehenge as alternate;'washed gravel to American Aggregates with Stonehenge as
52 alternate; sand to Stonehenge with American Aggregates the alternate; oil to Ashland Oil; cold mix to
53 Contractors United with Barrett Paving as alternate; base hot asphaltic concrete and surface hot
54 asphaltic concrete to Contractors United with Barrett Paving the alternate. Grimes noted the prices
55 quoted are good from May. 11, 1993, to May 10, 1994, then moved to approve the awarding of the
56 contracts,second by Jarvis and carried by a unanimous voice vote.
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58 OTHER MATTERS
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60 A. Fire Chief Sticco introduced Jeff Gindling, noting that he had completed the necessary requirements
61 of a probationary firefighter and recommended he be hired by the Richmond Fire Department.
62 Chairperson Hibner moved to approve, second by Jarvis and carried by a unanimous voice vote.
63 Gindling was sworn in by Chairperson Hibner.
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Board of Works Minutes Cont'd
April 29, 1993
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1 B. Police Chief Dennis Rice asked Detective Jon Carrico to give the background on the events leading
2 up to the citizen's award to be presented. Carrico said on April 13 during a conversation with a senior
3 citizen during the time she was making a withdrawal, Margaret Shaffer, a teller at West End Federal
4 Savings Bank became uncomfortable with her explanation that the withdrawal was for home repairs.
5 Carrico pointed out that there is a fine line between the right of privacy and the concern of safety for the
6 depositor. Shaffer called the Richmond Police Department and talked with Detective Carrico,who, upon
7 arriving at the lady's home, learned that she had been a victim of a home improvement fraud and
8 suspected that she had been bilked out of money three times before. Detective Carrico presented the
9 Citizen's Award to Shaffer, stating that it was given for her efforts in assisting the local police by going
10 one step beyond what is necessary.
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12 TCI PRESENTATION
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14 A. Rich Cody, manager of TCI, appeared before the Board accompanied by his office manager. He
15 stated there were three issues he wished to address.The first was the concern over the late payment of
16 the $50,000 prepayment of the franchise to the City. He said although he respected the opinion of the
17 Telecommunications Council it was TCI's opinion that the late fee did not apply to the$50,000 since it is
18 stated in a letter which is a separate part of the agreement. However,TCI feels it is in its best interest to
19 make that payment to the City. Calculated at 12 percent per annuam, Cody said he came up with a
20 figure of $197.26. He noted that the prepayment was due January 7 but was not paid until 12 days
21 later.
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23 The second issue Cody spoke to was the franchise fee on each customers' bill. He read TCI's
24 interpretation of the franchise,breakout, explaining that TCI took what the customer had been paying
25 for basic,deducted 5 percent from-that amount and lowered the rate. He added that this happened the
26 latter part of last year and simply showed that broken out amount as a franchise fee. He noted that
27 while the franchise fee and the state sales tax are both 5 percent the sales tax total is higher because
28 - TCI pays sales tax on the total bill including the broken out franchise fee item. Cody said the franchise
29 fee paid to the City is, in fact, paid on gross revenue as defined in the franchise agreement including
30 the franchise fee shown on the bill. Cody added that the franchise fee is the cost of doing business and
31 as such is included in what the subscribers pay.
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33 Being forerunner of the cable TV industry, Cody said, TCI has its interpretations and opinions of laws
34 just as the City or'any other department and feels certain this is the best way to do the franchise fee
35 break out. He stated that the federal government stated theycan do this.Jarvis said he had a problem
36 with TCI's interpretation, noting that he felt TCI should be paying the franchise fees, not the subscribers.
37 Cody explained that the way it was done was because of TCI's interpretation of the federal law.He said
38 this franchise agreement with the City falls right in with that interpretation.
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40 Chairperson Hibner agreed it was a subject of interpretation, adding that there seem to be multiple
41 interpretations. She said the major complaints being heard are whether or not the 5 percent franchise
42 fee is assessible to the customer and multiple individuals are saying it should not be broken out. Cody
43 said TCI's mailouts had explained the breakout, noting that the bottom line is that it does say pricing,
44 programming and packaging are subject to change and franchise fees and taxes do apply.
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46 Cody said TCI chose as an industry to show the franchise fee calculation on the customer's bill because
47 it felt it was the only legitimate way to show that to the customer. Jarvis said his interpretation is that
48 TCI should take a little of its profit and pay the City the franchise fee and;snot charge the customer.
49 Cody responded, saying that part of TCI's profits, by the way the customer is paying, are given to the
50 City. Cody said the exact same thing that happened prior to TCI changing the billing is happening now.
51 He said if the customer was paying a set amount, TCI, in turn, was paying the City a set amount and
52 once it was broken out in the bills, nothing changed.
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54 Cody explained that the new negotiated terms states that TCI pays the City 5 percent of its gross
55 revenues, adding that the City is realizing 5 percent of what the customer is paying because it is an
56 assessment 'of the customer's total bill. He said he feels it is, very important that the customer
57 understands and realizes what is happening, adding that he feels TCI has been able to satisfy those
58 customers,who have called into the business office directly to complain. Jarvis disagreed, noting that
59 evidently some of those customers had not received the answers they wanted and'contacted the
60 Telecommunications Council.,That's why the issue has come before this Board.
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62 Chairperson Hibner said it was her feeling that what is occurring is a legitimate difference of opinion
63 resulting in a basic interpretive difference. Cody said the City will realize a lot more money from TCI this
64 year than they have in past years because of the franchise and all TCI is doing is,showing the
65 customers that a portion of their bills is going to the City. He added,that he didn't want-to-leave this
Board of Works Minutes Cont'd
April 29, 1993
Page 3
1 - meeting today with any member of the Board being unhappy with his explanation. Chairperson Hibner
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reminded Cody that the reason for this meeting is merely to gather information, not to arrive at any
conclusion. -
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5 The third issue Cody addressed was Exhibit C. He said it was specifically stated in the franchise
6 agreement that Exhibit C, which is a franchise fee worksheet which actually reflects TCI's gross
7 revenues, be mutually developed by TCI and the Telecommunications Council. The agreement, Cody
8 said, states that if after 60 days no Exhibit C is arrived at by the two parties, the sample worksheet in
9 the agreement will remain as Exhibit C and become a part of the franchise. Cody said he personally
10 took exception to the statement made by the Telecommunications Council that TCI has not worked with
11 them, adding that TCI has nothing to gain by not working with the Council. Cody said he has worked
12 with the City for the past year to come up with an accurate Exhibit C and he has given the City
13 Controller a franchise fee worksheet which is not unlike the original Exhibit C. He said if the
14 Telecommunications Council has a problem with this Exhibit C and makes TCI live with the original one,
15 nobody gains. Cody said in his Exhibit C, adjustments were made because the City Controller needs
16 the information that shows how TCI made a calculation whereas the originial one did not give all the
17 pertinent information.
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19 Cody added that during the 60 days referred to inthe franchise agreement he talked with City Attorney
20 Thomas Milligan and City Controller Dennis Grimes about the number of changes that would be taking
21 place within the cable TV industry and within TCI itself, such as channel additions, rates and some
22 things that would call for adjustments in.Exhibit C. He said they agreed there was no need to put forth
23 another sample exhibit in that 60-day period when it was going to be 14 months before the City would
24- realize exactly what was going to be done. Grimes interjected that the total gross per year would be
25 $200,000 with WCTV receiving 40 percent of that amount.
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27 Jarvis commented that he had talked with a customer who paid $30 to watch a wrestling show then
28 found it on another channel free. He said the customer called and was refused by TCI when he asked
29 that his bill be relieved of the charge. He added that he hoped TCI would give that some consideration
30 and Cody asked for the name of the client so he could make it right.
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32 PUBLIC COMMENTS
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34 Chairperson Hibner read a letter written by Robert W.Rosa of 69 South 24th Street who had been in attendance
35 but had left the room. In his letter Rosa stated his objections to Richmond Power& Light going into cable TV.
36 (See copy of letter in file).
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38 ADJOURNMENT
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40 There being no further business, on a motion duly made seconded and passed and carried on a unanimous
41 voice vote,the meeting was adjourned.
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47 Janet Hibner, Chairperson
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52 ATTEST:
53 Myra Miller, Deputy Clerk
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