HOULTON, Maine — Cable television subscribers will soon see changes as to which company provides television service.
The Houlton Town Council voted 4-1 Monday evening to endorse an asset purchase agreement between Polaris Cable and Time Warner Cable. Polaris Cable, a local cable television company, is selling its assets to the much larger Time Warner group.
The vote allows Polaris Cable to transfer the current franchise agreement between the town and the cable provider to the new company.
Councilors Jane Torres, Phil Cloney, Matthew Carr and chairman Wade Hanson voted in favor of the proposal, while councilor Brent Dickison was opposed. The chairman does not typically cast a vote at council meetings, unless it is required to break a tie or if a fourth affirmative vote is needed per the town charter rule. The chairman can also choose not to cast his vote in this situation, which means the measure would fail.
Councilor Dickison stated he was voting against the transfer because he did not think it was a good thing for the town, but added, “I know we can’t change it.”
Cathy Donovan, general manager of Polaris Cable, explained the sale was nearing its final stages and residents should see the change take place in June. A representative from Time Warner was not present at Monday’s council meeting. No representative of that company has appeared before the council since the sale was first announced, but has corresponded with the town via email.
As part of a franchise agreement, the town receives between $32,000-$35,000 in revenue from the cable provider. That money comes from customers of cable television, as part of a 5 percent fee on their monthly bill. Therefore, the more customers who have cable television, the greater revenue the town receives.
The town’s franchise agreement was renewed July 14, 2014, and does not expire until June 30, 2023. In July, it was modified from the 55-page document the town crafted in 2002 when Polaris Cable was formed, to a standard 16-page agreement in order to facilitate the sale. Prior to 2002, Houlton Cable TV provided service to the community and before that it was New England Cablevision.
Back in July, several residents opposed changing the franchise agreement, stating the 55-page document was in the town’s best interests. The town formed a special committee and spent around $100,000 to create that document in 2002. That agreement required the cable company to provide a discount for senior citizens. Under the new franchise agreement, no discount for seniors is provided.
Several residents spoke against the transferring of the franchise agreement. Resident Rosa McNally asked if there was any way to lobby for a senior citizen discount for those customers who currently have one.
Donovan explained discounts like this are not common. Instead companies provide multiple tiers of channel packages at varying price ranges to accommodate those on a budget. Donovan added she could not speak for Time Warner Cable and referred questions on pricing to their website.
Time Warner Cable already offers cable television, Internet and telephone services to a number of communities in Aroostook County. According to the company’s website (www.timewarnercable.com), using Presque Isle as the closest town, television packages range monthly from $19.99 for 20 channels to $79.99 for 200 channels during the first year of service. Equipment, such as digital recording devices or cable boxes, is also required at an additional monthly fee. A two-year commitment is required for new customers and prices go up in the second year, which is similar to satellite television providers.
Resident Phil Bernaiche was opposed to the transfer, saying he did not want to see the current provider — Polaris Cable — leave and added there were many unanswered questions about the change, such as what is going to happen to the employees and the building at the corner of Kendall and Military streets; how much rates are going to go up; and what services will be provided.
“It sounds like the town of Houlton is selling out what we worked hard to get,” he said. “We don’t have any plans for what they (Time Warner) are going to do with us. Why would you sell without knowing what is going on? You are shafting the old people who just want to watch television.”
He also asked how many of the current councilors subscribed to cable television. Only two of the five councilors present stated they used Polaris Cable.
Donovan said Time Warner has agreed to enter into a three-year lease for the office building, which is owned by NEPSK/Polaris Cable, and initial reports indicated all of the current employees could be retained. Whether those employees would be located in Houlton or some other location could not be answered, Donovan said. The building and property is assessed at $138,900, according to the town’s online tax maps.
