May 2, 2006

JPR to get second look as AFN buyer

City council weighs fiber network’s future

By Vickie Aldous
Ashland Daily Tidings

Ashland Fiber Network Options Committee member Paul Mace has asked the city to reconsider the nonprofit Jefferson Public Radio Foundation’s offer to take over the cable television and high-speed Internet service.

Mace, who served on the committee that recommended the city sell AFN or spin it off as a nonprofit, argued that a JPR Foundation take-over would be the most financially beneficial for all Ashland residents but especially for the bulk of households that are customers of AFN or Charter Communications cable television.

He spoke out at a Monday night Ashland City Council study session, where councilors were gathering facts to help them make a decision about AFN’s future during a meeting that begins at 7 tonight in the Ashland Civic Center Council Chambers, 1175 E. Main St.

Mace pointed out that the JPR Foundation has offered to take over AFN and pay the city $326,000 a year — money which could be used to help pay AFN’s $15.5 million debt. Additionally, the foundation would continue to provide cable television in competition with Charter, leading to lower prices for customers, he said.

“With JPR, competition remains and there is guaranteed revenue,” he said.

Making for a tough decision for the city council, Ashland Information Technology Director Joe Franell, AFN’s new leader, has recommended the city gradually get out of the cable television altogether because it loses about $732,000 a year. He said cable television customers are saving about $433,704 to $665,014 a year because of dampened AFN and Charter prices.

However, the city would need to continue to raise AFN television prices if the city keeps television, which would reduce those savings, he said.

Franell also said the city should keep the profitable Internet service but begin retailing the service directly to customers alongside the businesses that currently retail the city’s wholesale Internet service. That move could bring in added revenue.

When Councilor Russ Silbiger asked Franell if he will do any better running AFN under that scenario than what the JPR Foundation has offered, Franell said market forces are too uncertain for him to be able to make those kinds of predictions.

JPR Foundation Executive Director Ron Kramer declined to offer specific details to the Tidings earlier this year when asked why he thinks the nonprofit could do a better job running AFN than the city has done.

Kramer said at the time that the foundation has a management team in place and would not need AFN’s newly hired leader.

Franell, who has been on the job a month and came knowing AFN’s future is uncertain, previously said he would be satisfied staying with the City of Ashland and managing its internal computer systems and technology needs, a task that is part of his current job description.

Councilor Kate Jackson said Franell has not had time to meet with Kramer and discuss details of a possible JPR Foundation take-over because the city council directed Franell to explore an option for keeping AFN.

In other business tonight, the council is scheduled to:

• consider options for making payments on AFN’s debt.

• consider approval of a separation agreement with Ashland Police Chief Mike Bianca. Councilors had the opportunity to review the terms of the agreement under which Bianca will step down as police chief, but details of the agreement were not made public.

• consider confirmation of Mayor John Morrison’s appointment of volunteers to serve on various city commissions, committees and boards. Among his selections, Tom Dimitre, who is best known for environmental activism, could be named to the Ashland Planning Commission.

• decide whether to have Ashland be included in a county-wide vote on whether to create a Jackson County Library District. A library advisory board has recommended a property tax rate of $118 on each $100,000 in assessed property value to fund the district in light of expected funding cuts for the county library system.

• continue deliberation on resident Philip Lang’s request for a variance from city planning rules to build a second story on his garage.

Staff writer Vickie Aldous can be reached at 479-8199 or vlaldous@yahoo.com.