City looks for cable TV operator
In an effort to preserve competition and low prices for residents, the City of Ashland is seeking an outside party to take over the Ashland Fiber Network's cable television service.
The Ashland City Council decided earlier this year to eventually get out of the money-losing cable television business, while keeping AFN's profitable high-speed Internet service.
But councilors and residents worried that Charter Communications would raise it's cable television prices in Ashland without competition from AFN. AFN and Charter cable television prices have been below-market for several years.
Now Ashland Information Technology Director Joe Franell, who leads AFN and the city's computer services division, is looking for another entity to take over the city's cable television service.
"We wanted something that would allow us to get out of the cable business, where we are bleeding funds, and still maintain the competitive marketplace for citizens," he said.
The city has issued a formal request for proposals from parties that might be interested in running the cable television service.
Franell said that while the city has lost money on cable television, another party would not face some of the restrictions that made it difficult for the city to make money.
As a government entity, the city is not allowed to screen the content of AFN cable television. The city established a citizens' programming committee that decided what channels to offer, but that committee did not make decisions based on financial considerations, he said.
A new operator of the cable television could choose more profitable channel line-ups, according to Franell.
Some channels, such as ESPN, MTV and HBO, are very expensive, while many news, arts and entertainment, public access and educational channels are free or inexpensive, he said.
Ashland City Council member Russ Silbiger said he is pleased to see the city issue a request for proposals for another entity to operate the cable television.
"It would be great to have a third party come in and do it," he said. "It was certainly clear to me TV was the big anchor for AFN." In December 2005, Jefferson Public Radio Foundation Executive Director Ron Kramer offered to take over AFN's cable television and high-speed Internet service. The council later turned down the proposal.
Kramer said on Wednesday afternoon that JPR is not interested in taking over just the cable television portion because that part of AFN's operations is the difficult and risky piece. If the city had issued a request for proposals to run the Internet and cable television services together, or the Internet service alone, JPR would have submitted a proposal, he said.
Charter Communications Southern Oregon General Manager Mike O'Herron could not immediately be reached for comment.
Franell said the request for proposals is worded so that preserving competition is part of the criteria for choosing a new operator for the city's cable television. A proposal does not have to be chosen just because it offers the best financial terms for the city, he said.
That would effectively preclude Charter from taking over the city cable television service by offering the best financial terms.
The city is holding a mandatory pre-proposal conference for parties interested in submitting a proposal at 10 a.m. on Thursday, Aug. 10, in the AFN and electric building conference room, 90 N. Mountain Ave.
Sealed proposals are due by 2 p.m. on Thursday, Aug.
24, with interviews and the selection of the winning proposal likely the following week, Franell said.
The request for proposals is posted on the city's Web site at www.ashland.or.us. For more information about the request for proposals, contact Ashland Purchasing Representative Kari Olson at 488-5354.
Staff writer Vickie Aldous can be reached at 479-8199 or vlaldous@yahoo.com.
