The Blytheville City Council's Airport and Utilities Committee approved a new 15-year franchise agreement with Ritter Communications Thursday night. The measure is expected to be on this month's Council agenda.
Councilman Kevin Snow, chairman of the committee, called the proposed new agreement "a little bit more city-friendly."
The current agreement expires in two years. Snow noted Ritter said the city can inspect its books, and the cable provider will submit annual statements of gross revenue.
The franchise agreement, which can be reviewed every five years, allows the city to receive 5 percent of the gross subscriber revenue.
Snow pointed out that even before the Council approves a new contract, Ritter offered to help Westminster Village because the retirement community lost its cable service. Ritter is offering Westminster Village residents several services, including cable, Internet, telephone, etc., and incurring all the cost of installing the new system.
Also, Ritter recently agreed to add cable to Promiseland Road and is studying a request to offer service to the Fox Crossing subdivision.
"They have been more than willing to work with us and are very accommodating," Snow said.
Also, Snow said the FCC allows cable providers to charge $1.24 per channel, and Ritter's is 95 cents per channel for the first tier.
"They're well under, like $7 under the monthly charge," Snow said. "Their rates are very competitive."
Snow noted it was his idea to redo the franchise agreement ordinances, not Ritter's.
He pointed out some of the franchise ordinances date back to the 1948 and 1950. Snow hopes to bring all those ordinances up-to-date this year.
Meanwhile, Snow reported that earlier this week, Blytheville Waterworks received a 100-plus page engineering study for the proposed water plant expansion and clarifiers, something the Arkansas Department of Health is requiring.
The water company is examining the study to make sure it includes everything that is needed.
Officials are awaiting options for refinancing revenue bonds for multi-million dollar expansion project.
Snow said the city hasn't increased wholesale water rates in 18 years, and that might be necessary.
He said the water company is looking at increasing wholesale rates from $1.25 to $2.75, which would provide an additional $27,000-30,000 a month.
"This expansion only gets us where we need to be right now," Snow said. "We're still looking at, down the road, probably having to build a whole new water plant. We know that's coming so it's something we're going to have to start planning for now."
He added another wholesale rate increase may be necessary once that happens.
Snow hopes to approve funding sources by May, then send out bids for the expansion in June and break ground in October.
He noted the four clarifiers are all 85 feet in diameter and the water company will have to find a place to put them.
Meanwhile, Snow said the water company has discovered that it has been undercharging some customers, after reviewing Ordinance 1687, which sets base rates for underground lawn sprinkler systems.
Passed in March 2009, the ordinance says sprinkler systems with a 2-inch pipe have a base rate of $69.54. Snow said those customers are being charged at the regular residential rate for 3/4-inch pipe -- $10.03 for the first 1,000 gallons.
He said they will send notices before they begin charging properly, anyone with 2-inch pipe.
Snow said experts are projecting a hot, dry summer, which should increase water revenues as well.
In other business, the board:
-- Heard from Snow that the cost of repairs and replacing the Water Department impeller was $19,531. The committee is asking the Finance Committee to allow infrastructure funds cover the expense.
-- Reviewed financial reports for the Water and Sewer Departments.
-- Heard from Snow that the airport commission is in process of taking bids for an engineering firm for the airport, which must be done every five years. Also, the airport commission plans to apply for a 90/10 grant from the state to remodel and add onto the existing terminal. If approved, the city's portion would be about $9,000. Also the airport commission has submitted a five-year capital improvement plan to the FAA.
mbrasfield@blythevillecourier.com