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Mood swing: Cable conversations go from improved service to shutdown

By RM.com
Created 04/03/2008 - 6:58am

[Edited April 4] In less than a month, the Rancho Murieta Association Communications Committee has gone from anticipating the relaunch of an improved cable system to contemplating shutting the system down at year's end if a proposed bylaws amendment passes. Committee members pushed back Wednesday, saying the community needs to hear the rest of the story -- that shutting down cable also means shutting down the RMA's broadband Internet service, which is used by almost a quarter of the community.

At the March RMA meeting, the Freedom of Choice group announced its intention to amend the association's bylaws to prohibit the RMA from including any cable television costs as part of dues as of Jan. 1. Cable costs represent about $30 of a member's monthly RMA bill.

In 2006, the board approved a multi-year plan to upgrade the cable system. The plan called for spending $200,000 in each of the first two years. After numerous delays -- fueling opposition to the plan and criticism of the cable system -- the projects are finally complete.

"The playing field has changed over the course of the last three weeks. We now have to adjust accordingly to the situation that's now in front of us," General Manager David Stiffler told the committee Wednesday.

Committee

Discussing the cable situation are from left, RMA General Manager David Stiffler, Director Mel Standart and committee volunteers Myrna Solomon, Carol Anderson and Ray Matheny.

The committee chair, Director Mel Standart, said efforts to come up with "Plan B" -- an alternative to having the RMA operate the system -- intensified after the announcement about the bylaws amendment. He likened the push to make participation in the cable system voluntary as "a freight train coming down the tracks. ... We better get it together because without dues this system will collapse."

Standart said he, President Jack Cooper and Stiffler make up the search team that is meeting with representatives from AT&T, Comcast, and others. They are telling the companies the RMA is "open to any suggestions, which would include lease, purchase, rent, outsource, you name it. However, ‘sell' is the only option that gets this HOA out of the business," Standart said.

Stiffler said making cable optional and "what we do with the cable TV" are separate issues, but "One may lead to the other. Time will tell."

Standart said the bylaws amendment would require the approval of 50 percent of the membership plus one vote to pass, but John Weatherford, a leader in the drive to make cable voluntary, told the committee, "It's not going to a ballot. We're going to collect proxies. We're going to get in front of every single resident out here and hand them that proxy. And we've got from now to December to do it. I would give our chances at least 9 to 1 that this is going to be an amendment to the bylaws between now and December."

"I'm inclined to believe you," said Standart. "I think it would be foolhardy to not assume the worst. ... And the worst-case condition is there will be no dues, which we currently subsidize the system with to the tune of over $900,000 a year."

"We're talking video, but if the video goes, so does the broadband," said committee member Ray Matheny.

The system has 522 broadband Internet subscribers and 203 premium channel subscribers. For decades, Murietans have received basic cable service as part of their dues. The service includes Channel 5, which broadcasts RMA meetings and community announcements.

Matheny and other committee members doubted whether the cable system could be transitioned in time if the bylaws amendment passes. "There's no way in hell somebody's going to come in here the first of January," said Carol Anderson.

"Figure out what you have to do to cover all the bases if you have to shut this thing down Dec. 31 and have that ready by September or October as a Plan C," Weatherford advised the committee. "We could have made that amendment take effect the day it passes, so it could have been April 15. We chose to make it January ‘09 so you, the board and the organization ... have time to plan for this."

"Are you taking into consideration and letting us know as you go out and solicit what we're losing?" Matheny asked Weatherford.

"If I'm out there talking to people, I'll tell them whatever they ask," Weatherford replied, "but I've been on this thing since 2003 and I've sat in here on this committee. ... I've told both sides of the story. My stand personally has been ... that we don't belong in this business. ... I'm just reacting to what the board's doing."

"I would like to hear what you're telling the people, because if you're just saying cable TV, then you're really misleading me because I'll say 'Oh, I'll still have my broadband,' which I won't," Matheny said.

"When I did these petitions and I sat in front of the grocery store, nobody asked that question. Now, maybe the ones that didn't, didn't walk up to sign it, but it's kind of the majority rules," Weatherford replied.

"The community has heard John, Wilbur (Haines) and George (Roper) ... and they really haven't heard the other side," committee member Myrna Solomon commented. "I think that's really critical. They have to know what this is all going to mean to them. ... People in this community need information about what is going to happen if that passes. And I don't think the average person understands."

"I think it's pretty darn important that the committee and the board -- because they've authorized us to get these projects done -- allow us to implement this thing so the members can see what the quality is and what they're going to be giving away or selling," said Maintenance Manager Rod Hart.

"We have the equipment, we have everything in place to be able to do it, so let's go ahead and start adding those channels," said Justin Jordan, a contractor for the system who has also been a committee member.

But the offering is being scaled back. "My eyes obviously have been opened with what's going to happen and what's going on," said Jordan. "I don't think it's smart to launch any channel now that would put us in a direct contract with the programmer ... even though we can talk all day about how someone might assume the responsibility" if system management or ownership is transferred. The better option is to use programming obtained through a co-op since it can be canceled on short notice, he said.

The original plan, discussed last month, was to market new tiers of digital and high-definition programming to the community with a 60-day free trial.

"Unfortunately, none of us, myself included, realized at that point there's a significant cost to that since every new service ... requires a set-top box," said Stiffler. The 2,100 boxes would have cost about $700,000, according to Stiffler. The Finance Committee balked at the expense, and the Cable Department will make do with about 100 boxes to loan out for the free trial.

"When somebody signs their name on the dotted line and says, ‘I want this service for the next 12 months,' assuming it's still available for the next 12, then we'll go out and we'll buy another box," said Standart. "That way we do not have to go back to the Finance Committee and get our tail feathers whooped again. For whatever reason, they don't want to spend any money, and given the circumstances of the possible shutdown of the system Jan. 1, I'm not sure I do either."

"We've put a lot of effort towards getting where we're at right now and we're right to the point of payoff, we need to make something work," Hart said. "I think it's important that somehow or other we show the community what the board ... has put into this system."


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