The towns of Mooresville and Davidson have paid about $93 million to purchase and upgrade the former Adelphia cable television system – a decision that many Mooresville residents have denounced from day one.
At the Oct. 15 town-hall meeting, Commissioners Chris Carney and Miles Atkins were asked about their stances on the cable system.
Atkins was not yet elected when the Town of Mooresville agreed to bond $80 million to purchase the bankrupt cable system, but earlier this summer, he voted against providing an additional $12.5 million for system upgrades.
Carney voted in favor of bonding $80 million for the system. He said it was one of the toughest issues he has faced as a commissioner, especially because it "goes against my philosophy." But when Time Warner (which operated the system from the time Adelphia went bankrupt until the towns took ownership) refused to agree to a “performance bond,” Carney said, he agreed to purchase the system “based on numbers.”
When MI-Connection asked for $12.5 million more this summer for upgrades, however, Carney voted against it. He said that’s because he was adamant that elected officials should not serve on the MI-Connection board of directors … and a member of Davidson’s town board also serves on the MI-Connection board.
Carney said he’s “not happy with everything” related to the town’s purchase of MI-Connection, but that the system “makes quite a bit of money.”
“It still pains me,” he said, noting that he has switched to MI-Connection for his home cable service. “I now have a whopping cable bill like everybody else.”
Atkins said he could imagine that the town board’s original vote to purchase the cable system “was a hard decision,” because government-ownership of the system was so “unpopular.”
As a private citizen at the time, Atkins said he thought “there must be something to it if (commissioners) were willing to go that far against (public opinion)” to purchase the system.
He said the cable debacle points to the town’s need for a public information officer – a person with “boots on the ground” who is “dialed in with the citizenry” and can “engage the community in a visioning process.”
Atkins said the town’s purchase of the cable system fueled the public perception that "elected officials are out of step" because it appeared that the town board was focused on buying a cable system while the public was concerned about issues such as "water, sewer and transportation."
But “opportunities come up, and sometimes we have to jump on them,” Atkins said. The challenge, he said, is "how to share the information with the public and get them on board."
Carney said he still feels that the purchase of the cable system "was a fiscally-responsible decision."
"Was it a good decision philosophically?" he asked, then answered: “You didn’t put me into office for my philosophy.”
To see MI-Connection’s September 2008 financial and statistical reporting package, click on the documents below:
Now it’s your turn to sound off: How did you feel about the town’s purchase of the bankrupt Adelphia cable system? How about the additional $12.5 million for upgrades? Are you a MI-Connection subscriber? How’s the service? Did you switch from MI-Connection to another cable service? Why?
At the Oct. 15 town-hall meeting, Commissioners Chris Carney and Miles Atkins were asked about their stances on the cable system.
Atkins was not yet elected when the Town of Mooresville agreed to bond $80 million to purchase the bankrupt cable system, but earlier this summer, he voted against providing an additional $12.5 million for system upgrades.
Carney voted in favor of bonding $80 million for the system. He said it was one of the toughest issues he has faced as a commissioner, especially because it "goes against my philosophy." But when Time Warner (which operated the system from the time Adelphia went bankrupt until the towns took ownership) refused to agree to a “performance bond,” Carney said, he agreed to purchase the system “based on numbers.”
When MI-Connection asked for $12.5 million more this summer for upgrades, however, Carney voted against it. He said that’s because he was adamant that elected officials should not serve on the MI-Connection board of directors … and a member of Davidson’s town board also serves on the MI-Connection board.
Carney said he’s “not happy with everything” related to the town’s purchase of MI-Connection, but that the system “makes quite a bit of money.”
“It still pains me,” he said, noting that he has switched to MI-Connection for his home cable service. “I now have a whopping cable bill like everybody else.”
Atkins said he could imagine that the town board’s original vote to purchase the cable system “was a hard decision,” because government-ownership of the system was so “unpopular.”
As a private citizen at the time, Atkins said he thought “there must be something to it if (commissioners) were willing to go that far against (public opinion)” to purchase the system.
He said the cable debacle points to the town’s need for a public information officer – a person with “boots on the ground” who is “dialed in with the citizenry” and can “engage the community in a visioning process.”
Atkins said the town’s purchase of the cable system fueled the public perception that "elected officials are out of step" because it appeared that the town board was focused on buying a cable system while the public was concerned about issues such as "water, sewer and transportation."
But “opportunities come up, and sometimes we have to jump on them,” Atkins said. The challenge, he said, is "how to share the information with the public and get them on board."
Carney said he still feels that the purchase of the cable system "was a fiscally-responsible decision."
"Was it a good decision philosophically?" he asked, then answered: “You didn’t put me into office for my philosophy.”
To see MI-Connection’s September 2008 financial and statistical reporting package, click on the documents below:
Now it’s your turn to sound off: How did you feel about the town’s purchase of the bankrupt Adelphia cable system? How about the additional $12.5 million for upgrades? Are you a MI-Connection subscriber? How’s the service? Did you switch from MI-Connection to another cable service? Why?
Posts
42 comments:
Bullcrap Carney !!!!!!!!!!!!!!!!!!!!!!
Carney said, he agreed to purchase the system “based on numbers.” Whose numbers? Oh, yeah. Let me guess. Numbers from the self-problaimed "Numbers Guy" on the town board, soon to be ex-commissioner Frank Rader! Same dude who's now been exposed for the shyster that he is.
Carney needs to learn that in an elected position trust is a good thing, ONLY when it is given to those who have earned it. It is a BAD thing when it is given to white-collar scam artists like Rader and his puppeteer, the mayor.
I was a subscriber to Mi-Connection and am now with DirecTV. My decision was based on the fact that I don'tt hink the government should be financing private enterprise or owning them. I also switched because of the poor quality of the high-speed internet, the frequent disruptions in cable service, and an unacceptable level of customer service. The investment is not making a profit; they're just not losing as much money as they anticipated. The reports provided to the ToM and to Davidson do not reflect the total costs related to debt service and loan amortization.
Get out of the cable business.
I SECOND THAT.
No amount of P.R. would have convinced this electorate to support this rabbit hole of a deal called the Cable Purchase. To borrow a term, "you can't put lipstick on a pig".
I second EVERYTHING that Larry from Fieldstone said. I'd also like to call B.S. on Chris Carney.
I atteneded a Rotary Club meeting in which I heard you with my own ears gloat about purchasing the cable system. Someone asked you about a local business owner who was being vocal in opposition and you answered,"No problem, ToM will just buy that too!" You then lifted your morning coffee as if to say "cheers" and walked away laughing. Miles, I believe. You sir are so full of it you slosh when you walk.
The customer service people in this town are so rude they show contempt to us when we ask questions. They will not hook up anything like Time Warner that wasn't rented from them. T.W. would hook up VCR's, DVD's etc. All this place wants is for you to rent a DVR. They treat you like you're an indiot if you ask a question, especially the rude brunette who's usually in the front office on the left as you walk in. I am going to be switching my service to Windstream before Christmas. Larry is quite correct about the spin being put on this little deal. They aren't disclosing the whole truth. They have CONSTANT interruptions on WBTV and don't answer calls quickly enough. When you do finally get someone, they act like it's their first day in the industry. I told the morons from Virginia that the only people in this town who wanted them here are thr commissioners. The rest of us said HELL NO. AND WHERE DID THAT GET US??? THE MAYOR BROKE THE TIE WITH HIS VOTE KNOWING WE DIDN'T WANT IT. He has broken several ties with his vote and guess what?? He has always voted againest the wishes of the people. There is an election coming idiots, you'd better wise up. You are not all-powerful.
Kudos, Jamie for finally telling the truth about this crock of bull. Mac Herring was probably the lost eager to get into bed with private business. we have no business whatsoever owning a cable system. We cannot even control our own government. How long do you think it will be before the headlines read,"Embezzlement in MI-Connection" ? ToM strikes out again, complete with fiber optics and pixie dust.
Hey Jamie,
This is off the topic but what about the town vehicles sitting in front of officials houses, rotting the tires off? Is Rader STILL using the police dept. gym? If so, we need to cancel his gym membership and he needs to write ToM a check for the unused protion.
Has Steve Husemann dealt with the "personnel issues" which were spelled out to him before he reached Mooresville? And I don't mena the public ones, I mean the ones only insiders know about and others have failed to take care of? If not what is the hold up? We haven't forgotten about all these unanswered audits and investigations, etc. It is time to terminate the useless Erskine Smith. make Cheif Greene drive the vehicle he was issued or write him up. If that doesn't work, fire him for insubordination. When are these people in town government going to realize we aren't playing? If we have to call a syndicated talk show here to get cameras in their faces over corruption, we will!!!!!
Should naver have happened. Government does not belong in the free market arena, especially when Time Warner was standing by ready and willing to purchase / carry on the business. I pay my taxes for utilities, fire, police, etc. Not for cable systems. I wanted to invest in cable systems I could buy stock, mutual funds whatever. In return I would get a vote on how the company is operated plus if I'm not satisfied I can sell my stock and get out. Now, my money is invested in MI but I don't get a vote and I surely can't get my money out. From the very beginning Rader and Thunberg pushed this thing. They kept telling us that they had it all figured out, that we just didn't understand. If you haven't realized it yet, they are far too intelligent for us common people. They know what's best for us. Wouldn't you think that if they are so damned intelligent, they could explain this so we all understand it. But they chose not to. Didn't need to. After all they know best. Just ask them.
Now here's the question I want to ask them. They're so smart. I know they've got an answer. How does an economic slowdown fit into your projections? What happens if subscriptions drop off 10%? 20%. Who has to come up with the shortfall in cash needed to pay the debt and operate the system? That won't cost me anything will it? I mean I don't want to put more of my money into the system.
Everyone and I mean everyone I talk to thinks it was a mistake to buy this thing. So, with that in mind, what if all the stakeholders, that would be your constituents, the taxpayers, say 'sell it'. Would you listen? This time? What do you think the market value of the system is today? Seems to me it might be less than what we have invested. I imagine the taxpayers get stuck with the loss, right?
Geez you guys are smart. Too smart for me I guess cause I just don't get it.
Hey Atkins. Are you serious? A Public Information Officer? You're kidding right? We don't need any Public Information Officer on the payroll. "Boots on the ground?" "In touch with the citizenry?" I don't want to shock you or anything but I think that's supposed to be your job.
Those that know me know I was very much against the cable purchase. I spoke out at the meetings, only to have my opinion discounted because I am a Time Warner Cable employee....a Time Warner Cable employee that owns a home in Mooresville, that pays taxes, and that votes. When I asked if they could guarantee that this purchase would not eventually hit my wallet in the form of higher taxes they said no, they couldn't.
It was amazing for me to see a room full of people come out against something only to have the commissioners vote in favor of it. There was a "we know better" attitude that was down right insulting.
A Troutman commissioner told me "politics is not hard. If everyone is against something you vote against it." Troutman voted against joining the consortium and their upgrade was completed months ago. They have had video on demand, VOIP phone, hundreds more channels, and much faster internet speeds for months....as have Statesville and Huntersville who also went with Time Warner.
One of the channels we don't get with MI-Connection is News 14 Carolina. In the past 2 weeks we've missed... exclusive in depth interviews interviews with John and Cindy McCain, Joe Biden, live press conferences from Panthers Coach John Fox, and extended interviews with former BofA CEO Hugh McColl on the banking crisis.
We've also missed live coverage of the service held at Camp Lejeune honoring the 200+ Marines that died in Beirut 25 years ago this week...including Timothy McNeely from Mooresville.
I remember at the public meetings the pro-consortium people specifically said they did not feel there would be any competition in the area in the foreseeable future. Time Warner is building in Mooresville...Windstream has expanded their service areas for internet service, other companies are coming and soon the budget for MI Connection gets steeper.
And I would bet that Frank Rader still thinks this is a "no brainer".
Jim
Screw what Frank Rader thinks. I know all I need to know about Frank Rader, and that is that he is A LIAR. Everything he says is a lie, from its beginning to its end. He lies with a straight face, too.
I hope I’m not showing my ignorance, but when accumulated depreciation is minus $13.5 million and the total assets are $67.5 million, does that mean we paid $80 million for an asset that’s now worth $67.5 million, which we’ve now put another $12.5 million into? So, roughly the town has spent $92.5 million for something worth $67.5 million. I bet TimeWarner was happy about that deal.
I won’t go into all the gory details, but I heard something about a credit crisis set off by subprime mortgages. You probably won’t believe this, but the government was trying to make all of us better off by increasing the number of subprime mortgages through Freddie and Fannie and by strong arming private banks. In 2005, Alan Greenspan warned that if GSEs (Fannie and Freddie) weren’t reigned in they could cause a crisis. You may not have heard this part, but tinkering by government can cause a global economic catastrophe.
When I spoke at a Mooresville town meeting earlier this year, I used an economic example that may not have resounded as effectively as I had hoped. If our current economic disaster sounds like a hammer against a bell, then that’s about the right pitch. Government should stay out of private affairs as much as possible. Our town should seek to sell MI Connection as soon as possible.
Arrogance is infectious and Chris Carney's purported behavior at a Rotary Club is a perfect example of that. He kept rubbing elbows with Mr.'s Arrogant - mayor Thunberg and at-large-commissioner Rader - until finally he was bitten by their arrogance bug himself. It can happen just that quick. The cable deal is a losing deal, if not today, then tomorrow - if not tomorrow, then the next day. Anybody with even rudimentary mathematical skills could have foreseen that. Now, as somebody pointed out, add to that equation a downturn in the economy, and it looks like we're all getting ready to take a bath, courtesy of Carney, Rader, Herring and Thunberg.
One thing I'll say about Commissioner Chris Carney is that he apparently showed up to the Q&A session a couple weeks back. He must have known he was going to get drilled about cable but he still showed up. Even Commissioner Frank Rader showed up at a Q&A a month or so ago knowing he was going to take it on the chin and rightfully so.
This is more than I can say about the other two turkeys that voted for the cable purchase in the face of all the jumping up and down by their constituents. Where was Mayor Bill Thunberg? Where was Commissioner Mac Herring?
Whether he knew it or not, Mac Herring actually admitted he was afraid to show up when he put his foot in his mouth and said he wanted to avoid all the "negativity".
But the mayor has not given the courtesy of any type of reply to the people he was elected to represent. He has become and continues to be an absentee mayor, that is unless if the doors are closed and he is speaking to one or two pawns in his bigger game.
Hey 10:10, that was a Top O' The Lake Rotary meeting in early 2007. I heard the comment also. He said it loudly enough for the whole room of about 50 to hear.
Hey Folks, just because the Herring name is supposed to mean something in this town, doesn't excuse Mac of his misaligned political stunts. Why does everone pick on the others (me included) but your highness Herring falls between the cracks????
Unfortunately, for us, his District will re-elect him, much to my dismay. Too bad he's not an at large commissioner, then we could get rid of the whole political,incompetent bunch.
Reiterate!!!!! Carney, Bullcrap.
It is important, whether or not you agree with Rader, Carney or Atkins, that they showed up and answered any questions that were submitted to them. We may not like their answers but at least we know what their answers are. If Thunberg won't answer the public or Gatton, then the Tribune needs to get off its rear and ask him these questions and print all of his answers or non-answers. Goebelt's analysis is right on target about this cable debacle--something that could essentially bankrupt this town. And I want to know where all the HD channels are--I'm hearing the lucky people who got to keep Time Warner already have their upgrades in place.
I ran for mayor because of the cable decision. What know one points out is that the mayor who cast the deciding vote has TIME WARNER. Government should not be in private business because the taxpayer will have to subsidize. We should also not be in the business of subsidizing mass transit. There is not one transit system in this country that doesn't need taxpayer funding. But appears there are more takers than earners and saying that is why we will probably get Obama as President. So now all governments punish hard work and success to give to people who drop out of high school and have babies out of wedlock. Larry Gregory
What REALLY pisses me off is these a--holes got us into this cable mess and the WORST thing we can do to them is vote their sorry asses out of office. There should be some kind of other punishment besides just that. Can't they be held civilly responsible by the taxpayers? Right now they're just going to skulk off in disgrace but that's all!
So exactly how much taxpayers money has been put into this thing? How much of my taxes have been actually used to fund the purchase or operational costs of MI?
I wanna know!
And I want to know just exactly how "public servants" became the "public masters". The people spoke out loudly and clearly against buying the broken cable system. They could not have been more clear. They're the Boss. And the Boss is always right. The four people who voted for this deal against the wishes of an entire community need a reminder lesson about simple facts like this. Let's give it to them.
What happen to voting on issues, why do you let government decide on your cable company selection?
This may sound silly, but petition to place it on the voting ballet, and let the PEOPLE DECIDE!
Again a government that represents their own interest, not the community!
Corruption just like Jaime has spelled out in all of these articles.
You've got a bunch of grifters running this town. And when one of them actually gets caught, like the former police chief, they just drag things along until everybody goes away.
I ran across an old Town Voice from a couple months ago and saw that old worthless Erskine Smith's article in it again. He never answers any questions but there he was, telling us how we just got to trust our government, lecturing us on how everything takes time and pretty much scolding us for raising hell over corruption.
Yeah, my local government's really earning my trust with the way they're dragging their feet, cool as cucumbers, over the Crone thing. And yeah, it's really earning my trust with buying something like the cable for going on 100 million bucks that we're all going to ultimately be responsible for if it tanks. And yeah, it's really really earning my trust when a bunch of these losers go into hiding when they're getting hit up with questions from people and media. Erskine next time just keep your trap shut when you feel the urge coming on to show your rear end.
Mr. Gregory if you'll refer to my earlier comment, I pointed out that Thunberg cast that vote. I was there . I heard and saw it done.
12:08
The cost has been estimated at appx 6800.00 per household.
Larry, I'm glad you didn't get elected. I voted for you, not knowing you had a religious right agenda. Go away and find Thunberg to hide with.
Hey Jamie,
Time Warner has an office in the race park. Are they trying to make a comeback and can we order service from them now? What's the scoop here? I can't find a number that will answer my questions regarding them. I'd go back in a heartbeat if I could. If not, I'll be moving cable and internet(nowAOL) to windstream.
6:53 - Thanks but is that actual out of my pocket to me or an estimated "worse case scenario" if if fails and the towns decide not to fall back on the part that they had put in that they can sale it at anytime. I was under the understanding that no tax monies have been used to fund the purchase or the operational tasks.
7:11 - they still have customers in the area so the Rack Park isn't really a comeback its their office for payments and techs - I have heard they are planning on overbuilding a few areas.
I'm directing my comments to the previous commenter. Okay, Frank Rader, or Bill Thunberg, or one of their little lapdogs (I'll just call you FrankBerg for convenience). Thanks for your Thun-Speak, but we're not buying your B.S. hairsplitting. Bottom line is that you usurped the will of the people. Bottom line is that if and when your little plan goes belly up we'll be the ones holding the bag. Bottom line is that you're twisting the numbers to deceive us, making it look like the cable deal is profitable when in fact it's just not losing as much money as even you thought it would. Go peddle your B.S. somewhere where there's a market for it. It ain't here.
Gotta say I like the name Frankburger to describe the handful of yes men to the cable fiasco. Never mind that they all either voted for it or are employed through it!
8:27 - since my opinion is not wanted here. I will take you up on your offer and move on. I want to think Jamie for going back to the basics and hope her well. There was a time when the hate between differing opinions were getting out of hand.
Glad to see things have changed around here
I didn't know holding people responsible for their actions and not taxpayers is a religious right agenda. I did state that Thunberg cast the deciding vote, but wanted to point out he has Time Warner.
25 days ago I sent a question to Husemann (who then forwarded it to Jr. Miller at Mi-Connection) regarding the total costs related to this venture. Mr. Miller did not respond until I followed up on the question over the weekend and CCd the town board. What Mi-Connection ended up sending this morning was the same stuff Jamie posted on this thread. But then Rader responded with the follow -- which I guess I'm too stupid to understand. Can someone please decipher this for me?
Mr Miller can get it but would not routinely have it unless he is a bond investor. Mr Miller is one of about 20? BVU employees in ToM assigned to MIC.
There will be two schedules. One for the Bonds, the other for the Installment loan.
The bond payment schedule is generated by ToM's Investment Bank, BoA, for their client ToM and for the Red Herring and Prospectus published with the Muni Bond offering and available from brokers. It would be with MIC system management firm BVU and ToM. It may be with Local Government Commission (LGC). It is a Muni Bond issue.
The installment loan would be with ToM, BVU and the loan provider
Either will show standard Muni financing elements such as capitalized interest and MIC held reserve funds.
---
I have some summary charts and numbers I did from the business model prior to purchase. Those were distributed to press and Commissioners a year or so ago. MICis different from that model because MIC is larger and more dense than the model assumed. They are Rader Math, not ToM, MIC or BVU charts taken from model numbers. The model was generated by Doug Dawson of CCC Consulting, I recall.
So much for Rader's "Davidson College Education". Is he writing in English or code? Get him outta there!
Frank Rader calls this mumbo jumbo an answer? It looks more like a riddle to me. Is this guy for real?
Larry
What question did you ask that brought forth Rader's attempt to show off?
The fact that you had trouble understanding it is not surprising.Rader doesn't understand it ,and he wrote it!
When Rader starts talking you can be reminded of the old proverb--smart people occasionally surprise you by being stupid,but stupid people never surprise you by doing/saying something s
smart is the last word
Frank's so full of it. BTW his being totally incoherent is nothing but an act. He figures people will just assume he's smarter than them and go away believing his original premise whatever it was. Got news for you Frankie. It's not working anymore. We're all onto you.
Let's just give up and admit it. Frank Rader is just too smart for us. As a matter of fact, I'm surprised he even bothers to grace us with his intellect. We just don't deserve him and we sure as hell don't appreciate him. Next time I'm going to vote for someone just a litte dumber; someone I can talk with without being talked down to someone that can speak in a luanguage I can understand. Frank speaks and noone can understand. Then we've got a mayor that won't speak at all. FUBAR
Frank Rader's motto: "DAZZLE THEM WITH BULLSHIT".
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