Owens should have let sleeping dogs lie

Mooresville citizens ousted Frank Owens from the town board in 2005 after two terms, the last of which was wracked by controversy and scandal.

He was sent packing rather quietly, considering the political atmosphere and sentiment at the time.

But now, eight years later, he has tossed his hat back in the ring, targeting the Ward 3 seat currently occupied by Mac Herring.

Owens has claimed that he is running for office because Herring voted to saddle Mooresville residents with MI-Connection, a $92.5 million cable company that Owens says the town had no business purchasing. And I fully agree with him on that.

But then Owens decided to get a little nit-picky. He recently went digging through his opponent's 2012 county vehicle-tax records and then broke his neck tattle-telling to the Mooresville Tribune about a $88.86 delinquency on Herring's part, which even a county collections official called “very common.” The Tribune contacted Herring, who paid the tax bill before the article was even published in the paper.

Owens attempted to use this as a chance to show, even further, that Herring is irresponsible with money, stating in the Tribune: “What does it say about a commissioner that uses tax dollars from the town and the county and does not pay all of his county tax dollars?” 

Herring's delinquent tax bill was $88.86. If Herring's vote for MI-Connection is Owens' only real talking-point during this campaign, which seems to be the case, then we need to compare apples to apples.

In 2005, Frank Owens rubber-stamped handing a $25 million engineering contract on what would later become an estimated $150 million project to a town-board friend, voting against the recommendation of town engineers who said the expansion of Mooresville's wastewater treatment plant should be completed by a more qualified (and overall less costly) firm.

At one point in Mooresville's history, such a decision would have slid right through, possibly without the public even knowing. But decades of backwoods dealings and good-ol'-boy politics came to an end in the early- to mid-2000s in Mooresville, when the sleepy town was rocked by one scandal after another, all while Owens sat on the town board. With support from the local media and new blood on the board, a new plan was created for the wastewater treatment plant expansion, which meant the overall price was lowered. And the firm that had originally been deemed most qualified by town engineers was given a supervisory role over the former board's choice of CH2M Hill.

But that didn't happen before the town's manager – apparently based primarily on commissioners' persuasion, including (by then former) Commissioner Owens – fired the town's engineer and utilities director, both of whom had vehemently stood up for the best interest of the town's taxpayers against Owens and his ilk … and in spite of personal risk. One commissioner said that the personnel files of the two employees were “completely empty” of any prior disciplinary action at the time of their firings. For more on the CH2M Hill scandal, click here and here. 

But the CH2M Hill controversy was just the tip of the iceberg.

Also during Owens' last four years as commissioner:

• In 2001, Mooresville's librarian was indicted and later pleaded guilty to embezzlement for using public money for her private use. But her indictment came in spite of an apathetic Mooresville Town Board and only after an activist blew the whistle and persistently demanded that something be done about it. She also went to the press. An independent review by the Mooresville Tribune raised the possibility that tens of thousands of dollars in cash and merchandise had been stolen from or through the library for half-a-dozen years before the indictment. 
• In 2003, the town's former internal auditor, whose job it was to help prevent financial mismanagement and possible theft like that which had occurred at the library just a couple years prior, stated publicly for the first time that the town lacked financial controls and that her detection of those deficiencies – and her insistence that the town institute change – is likely what led to her firing after only eight months on the job. 
• In 2004, the then-town manager fired the new town librarian, supposedly for spending more than town policy allowed for a meal. This resulted in another black eye on the town because of widespread scrutiny from newspapers and local television news about the overspending habits of Mooresville's government, primarily via travel and dining expenses. 
• In 2005, despite the town having a full-time auditor, a finance director and an outside accounting firm that annually conducted an audit of the town's books, it once again took a concerned citizen – through his own volunteer financial probe – to identify a shortage in the inventory at the Mooresville Municipal Golf Course, which was already operationally bathed in red ink. A follow-up audit of the golf inventory showed about $5,000 of missing merchandise from the golf course pro shop. An editorial in the Mooresville Tribune stated: “The litany of mismanagement gets longer and longer, our town commissioners say little about it, and you, the taxpayers, foot the bill.”
• Also in early 2006 - just after Owens was voted off the town board - the Federal Bureau of Investigation (FBI) visited the Town of Mooresville and confiscated town computers. To date, no one knows what the FBI was looking for, but most assume it had something to do with the town board, against procedure, granting its friend's engineering firm the lucrative $25 million engineering contract for the wastewater treatment plant expansion. One former commissioner said the FBI told commissioners that the agents were looking into actions of prior town-board members. He said he was specifically asked by the FBI if he thought former commissioners were receiving “kick-backs” for preferential awarding of contracts. “I don't believe they received money for it,” he said, “but it certainly showed poor judgment.”

And now word is finally public about a 2001 FBI investigation into Owens for public corruption, following a state probe into a Mooresville gambling hut. 

One former public official, during an interview about the investigation, said: “Frank Owens has a pattern of abusing power, whether it's as a police officer or a commissioner.

“We have gotten past the yahoo-style of government and crookedness and the 'you-aren't-my-friend-anymore' high-school politics.”

I could not agree more. A vote for Frank Owens on Tuesday is a vote to move Mooresville backwards. It's really just that simple.

Two years ago, commenters on this blog resurrected the issue of Owens' gambling and the 2001 FBI investigation. Owens contacted me via private message on Facebook at that time, asking me to remove the comments and to contact him. I did call him, and while stating that he was "just trying to lead a good, Christian life," he insisted that the gambling accusations were false. He offered to meet with me and tell “the truth” about what "had really happened." I saw no need; after all, he was a private citizen at the time, which meant that whatever had gone on in his private life was no longer the public's concern. Still, his behavior while he was a commissioner was and is fair-game for public scrutiny.

Now that he's running again for public office, the fact that he was investigated by the FBI for public corruption has become relevant for reporting; Owens' personal character is once again the public's business.

But Owens has clammed up again. He apparently doesn't want to talk about the scandal anymore; he still has not responded to Report questions sent in mid-October about his involvement in illegal gambling and the 2001 FBI investigation and grand jury. And the only thing that has changed from two years ago, when he wanted to talk about it, until now is that he's eyeballing a seat on Mooresville's town board.

Yes, Mac Herring, the Ward 3 incumbent, voted for MI-Connection during his first term on the town board. He made, in my opinion, a multi-million-dollar mistake. And I don't take that lightly. But if Herring's vote was so heinous, why did no one challenge him when he sought (and won) re-election in 2009? If Owens' motivation is to remove Herring from office to, as he claims, protect the taxpayers from a tax-and-spender, why did he wait another four years to do it? He could have run against Herring in 2009, but he didn't. In fact, no one did. Herring ran unopposed.

I was here, with a front-row seat, when Owens was last a commissioner. He and other board members gave the town one black eye after another. Far from being apologetic, they banned together and thumbed their noses at the public, over and over. Visits from SBI and FBI agents became almost commonplace. Shameful reports by newspapers and television news stations were plentiful; in fact, the material that Owens and other town-board members gave the Mooresville Tribune was enough to fill a wall with awards for investigative reporting and community service. The town became a laughingstock, notorious for scandal and controversy.

It was an ugly, politically restless period in Mooresville's history. I don't want to see it repeated, nor do I believe that anyone who was on the board at that time deserves a second chance to govern and shape policy in this town.

Herring voted for MI-Connection. But the SBI has not been in Mooresville since he's been a commissioner. The FBI hasn't visited, either, except – in the first few months of Herring's first term – to look into the actions of Owens and his fellow town-board members.

The public is smart enough to draw its own conclusions about that. And come what may on Tuesday.

Former commissioner hoping for return to town board

Does the name Frank Owens ring a bell?

The former Mooresville commissioner - who served two terms on the town board before losing his seat to Frank Rader in 2005 - wants back in.

Owens announced yesterday he plans to seek Mac Herring's Ward 3 seat this November.

You can bank on the town's purchase of MI-Connection being a major talking-point in Owens' campaign. Not only was the former police captain ousted in 2005 by Frank Rader, who became MI-Connection's loudest cheerleader (and was later voted out of office himself), but Mac Herring - who currently holds the Ward 3 seat - voted in favor of the town's purchase of the system. Herring was re-elected to his seat four years ago, despite his vote.

For more on this news, check out the Mooresville Tribune.

Senate race heats up as MI Connection takes center stage

If the government owns the media, how does it stay neutral when it comes to political advertisements?

That was one of many concerns raised in 2006 when the towns of Mooresville and Davidson were considering the purchase of the bankrupt Adelphia cable television system.

And the issue reared its head this week when Karen Ray – seeking the 44th District N.C. Senate seat – suggested in a news release that the towns' $92.5 million cable company, now MI Connection, and its marketing partner, ViaMedia, refused to run her campaign ad because it is critical of her opponent, Chris Carney, who voted to purchase the cable system as a Mooresville commissioner in 2007.

The ad, called “Just Like Obama,” criticizes Carney for favoring big business and government bailouts.

“MI Connection, through its partner ViaMedia, had been airing a Karen Ray ad titled 'Fighter' for the past three weeks without issue,” Ray's release stated. “As of midnight Thursday, MI-Connection stopped airing all advertisements bought and paid for by the Ray campaign.The cable company ignored repeated demands on Friday to air the ad.”

“This is America,” said Ray, who also threatened legal action against MI Connection. “Candidates have the right to take issue with their opponents’ actions. MI Connection’s censorship of my campaign is a very serious matter. They are only in business because of taxpayers’ money, and now they are violating my First Amendment Rights because they don’t agree with me.”

MI Connection CEO David Auger said it isn't political. It's simply a matter of company policy:

“ViaMedia, the agency that handles advertising sales for MI Connection, had been running a political ad placed by Ms. Ray for at least a couple of weeks,” he said. “Late last week, she submitted a new copy to replace the old ad. The ad was forwarded by ViaMedia to their legal and management team for review.”

All “spots” - political or not – are reviewed in ViaMedia's corporate office prior to airing, said Auger. Political ads in particular, he said, are “flagged” if they are slanderous/libelous or inaccurate. Ray's ad is inaccurate because it says the cable system cost the towns $96 million instead of $92.5 million, said Auger.

“If a political advertisement falls into one of these two categories, it is forwarded to corporate (ViaMedia) legal counsel,” he added. “If legal deems the ad inappropriate, the CEO of MI Connection (or the equivalent in the other operations that they represent) is contacted and reviews the ad. At that point, a decision is reached and the candidate placing the ad is contacted.

“This policy is similar to the policies I've had in place at the media properties I've managed previously (cable systems and a newspaper),” Auger said.

He said as of close of business on Friday, Ray's ad was still being reviewed by legal counsel.

While ViaMedia was reviewing the ad, Auger said the company “offered to run the old ad.” However, he said, Ray's campaign replied “'absolutely not'.”

“I became aware of the situation Monday, April 23 at 9:24 a.m. when one of the newspapers forwarded to me a copy of Ms. Ray's press release,” Auger said. “I reviewed the ad, noted the inaccuracies, and ordered it to be aired.”

The ad started airing Monday.

Auger said he called Ray and left her a voicemail on Monday morning. But “as of 3:27 p.m. April 24, she has not returned my call,” he said.

Ray, in her news release, also states that she was troubled by an e-mail forwarded by ViaMedia to her campaign that calls Carney “an executive with MI-Connection.”

“We were unaware of his position, given that Chris has not disclosed his association with the State Ethics Commission,” Ray said. “I have instructed my elections law attorney to begin preparing the necessary documentation for a formal complaint to be filed with that board.”

Carney was quick to point out that the assertion is untrue: “I can't help what a third-party puts in e-mails,” he said. “But Ms. Ray's campaign could have simply considered its source and performed a quick fact-check that would have revealed I am not on MI Connection's payroll, nor have I ever been an executive of the company or been involved in any of its decision-making.”

Instead, he said, “Ms. Ray and her campaign were content to take an unfounded and untrue statement by an uninformed third party and send it, as it was truth, to every news outlet in this area.”

“I think Ms. Ray's actions speak for themselves, and voters are smart enough to see that if a candidate is willing to be so careless as to take something someone says as truth without first checking her facts, we don't want her making laws for us in Raleigh.”

While ViaMedia representatives did not respond to Report e-mails this week, asking why they would call Carney an executive with MI-Connection, David Auger said, “Chris Carney is not an employee or executive of MI Connection, and he has never been on the MI Connection payroll.”

Carney is currently serving as senator after being appointed in December to fulfill the term of the late Jim Forrester. He, Ray and David Curtis – all Republicans – will face off in the May 8 primary. The top vote getter will then face a Democratic challenger in November.

Esselman kicks off mayoral campaign

Jared Esselman wants to be your mayor, Mooresville.

"Being in a position of authority does not make a leader; it just means you're in charge," Esselman said to a crowd of about 100 at his official campaign kick-off on Saturday in the Mooresville High School ampitheatre.

A 1998 graduate of Mooresville High School, Esselman, 31, said, "You have helped make me the man I am today, and I want to give back."

Esselman shakes hands with those who attended his campaign kick-off on Saturday

Esselman joined the U.S. Air Force after 9/11, serving in the Iraq and Afghanistan wars. He went on to graduate from the College of Charleston in 2009, earning his BA in political science then received his masters in public policy from Harvard University just this year.

"Mooresville students are receiving the kind of education is takes to get to Harvard," Esselman said Saturday. "Education is the jewel of our city."

Noting Site Selection magazine's naming of Mooresville the past two years as "the best place to build and expand a business," Esselman said: "We have potential; we just have to realize it. We have a wonderful, vibrant, diverse community. 

"Unfortunately, we also have a divided community," he said. "I will work to heal that divide."

Esselman did not expound on what he considers the community's "divide." While his platform covers strengthening education, the economy and the community, he did not mention the town's MI-Connection cable system on Saturday. The struggling system is sure to be a hot topic in local political campaigns leading up to the Nov. 8 election, and Esselman has MI-Connection listed on his website as one of the top issues being reported to him by Mooresville residents.

Esselman did, however, note Mooresville Mayor Chris Montgomery's presence as a special guest at the campaign kick-off on Saturday. Referring to the exposure earlier this year of the mayor's public e-mails to a woman who is not his wife, Esselman said: "I know how you feel about our mayor, and I understand." However, he said people should at least respect Montgomery's courage in facing family, neighbors and himself in the aftermath of the scandal.

"It takes courage and passion to run for mayor," Esselman said. "My passion is serving people and investing in people because you invested in me."

Esselman's friend and former classmate, Lt. Comm. Joe Cousins, caught Esselman supporters' a little off-guard Saturday when he accidentally introduced Esselman as a gubernatorial candidate. Members of the audience chuckled, some of them responding, “Not yet!”

“One thing at a time,” Cousins replied with a smile.

Cousins, who flew to Mooresville from Washington, DC for the mayor-hopeful's official announcement, said while researching Mooresville, he was bothered to see that 'half the (government) meeting notes are closed.' He said government transparency is important to him and to Esselman.

For more on Esselman and his campaign, visit www.jaredesselman.com.

MI-C board members expect continuing deficits, hire transition consultant

Below is a press release issued today announcing MI-Connection's hiring of a consultant to transition the cable system to more operational self-sufficiency. (For more on that, visit MI-Connection ends management relationship with Bristol Virginia Utilities.)

Davidsonnews.net reports that the consultant, David Auger, is expected to begin work immediately after signing a contract that would pay him $17,867 per month, plus expenses.

The website also reports that MI-Connection board members expect the system's deficits to continue for at least the next two years.

MI-Connection hires Auger to spearhead transition

Mooresville and Davidson’s state-of-the-art cable, Internet and telecommunications system has hired a cable veteran with a record of success to spearhead its transition to local control and operation.

At a special meeting Wednesday morning, the MI-Connection Board of Directors voted 4-0 to approve a contract with David J. Auger of the Auger Media Group, LLC, to serve as the consultant who will facilitate the system’s transition from operation by Bristol Virginia Utilities to local operation.

The announcement comes on the heels of the board’s December 2010 signing of a Memorandum of Understanding (MOU) with BVU, the provider that has managed the system since its inception in December 2007. The MOU announced MI-Connection’s intention to bring local employees and most services in-house, which will result in BVU moving from operator to service vendor.

Board member Dawn Huston, chair of the board’s hiring committee, said the board is pleased with their selection. “The board is highly confident that Dave's leadership will lead to a smooth transition to drive MI-Connection's growth and service within our communities,” she said.

Chairman John Kasberger said he knows the board chose the right person for the job. “Dave is an experienced industry expert who has the vision and know-how to keep us moving in the right direction,” he said.

Auger began his career with Warner Amex Cable and ultimately served as the Director of Marketing at the company’s corporate office. In 1988, he took a position with Jack Kent Cooke as their Vice President of Marketing with oversight of sales, marketing and programming for the company’s 54 cable properties.

From 1989 to 1994, David served as the Publisher of The Los Angeles Daily News, where he managed a budget of $105 million and a staff of over 1,200. From 1994 to 1995, Auger was one of the executives responsible for the development and launch of a wireless cable operator in Southern California that ultimately sold to Pacific Telesis for over $180 million.

Auger also worked for Time Warner from 1995 to 2006, first as the vice president/general manager of Northern Los Angeles and then as Division President for Minneapolis, where he oversaw a successful system rebuild.

In 2001, Auger transitioned to president of Time Warner’s Charlotte division. In this role, he oversaw finance, marketing, sales, customer service, I.T., human resources, technical operations, engineering and annual revenue of $360 million. He led the organization restructure, increased subscribers, digital customers, data customers and improved cash flow while launching a variety of new products and services.

Since leaving Time Warner is 2006, Dave has owned and operated his own consulting and investing firm, Auger Media Group, LLC, where his major client was Charlotte-based American Broadband. He served as the company’s Chief Operating Officer (COO) and was responsible for acquiring and managing multiple cable television operations. He successfully developed a cluster of systems with 40,000 customers under contract and another 50,000 at various stages in the pipeline.

Auger said Wednesday that he is eager to tackle his new role with MI-Connection. “This transition implemented by the board to a locally-run broadband network is key to unlocking this system’s full potential,” he said. “I look forward to overseeing this process and getting it done as quickly as possible.”

For more information on MI-Connection, visit www.mi-connection.com.

Town officials optimistic about MI-Connection's new direction

In a recent press release, MI-Connection officials said they had two things to celebrate this month: the cable company’s third-year anniversary and its move toward more self-sufficiency by splitting with management company Bristol Virginia Utilities.

But let’s face it: After three years of scathing reports about MI-Connection’s financial woes – including $4.4 million needed from the Town of Mooresville and $2 million from Davidson in fiscal year 2011 – suffice it to say, a “celebration” isn’t in order.

For the first time since the towns purchased the cable system, however, town officials – even those who have vocally opposed Mooresville’s ownership of a cable company – seem to be a little optimistic. Why?

“We have been subsidizing a system that we had no say or control in how it was being managed or operated,” Commissioner Miles Atkins said. Moving the management and operation of MI-Connection to Mooresville “means there will be oversight and accountability for the first time since the system was purchased.”

Mayor Chris Montgomery says he believes a shift to more local control will have a “positive impact on subscribership, profitability and (the) overall success of the system.”

But on the other hand, eliminating an outside management company also means that one “barrier” between local government and media is being eliminated. When Mooresville and Davidson were considering the cable system’s purchase, many local residents argued that government has no place owning a private business and worse, a form of media.

Government officials, to placate those skeptics, said BVU and MI-Connection’s board of directors would provide a barrier between the government and the media. But with BVU almost out of the picture, is government one step closer to managing and controlling local media?

“Did we really ever fool anybody into thinking that government wasn’t controlling it?” asked Commissioner Chris Carney. “We may not have wanted to be in control, but once they asked for money from the towns, we were in control.”

Montgomery and Commissioner Mac Herring said the MI-Connection board of directors – whose voting members are appointed by Mooresville and Davidson commissioners – will continue to serve as a barrier between the government and media.

Commissioner Rhett Dusenbury, who along with Montgomery made MI-Connection somewhat of a campaign stumping issue last year, said he is still opposed to government owning a private-industry company. However, he said, “If a change in the company makeup saves the taxpayers money, I would support the change.”

Carney said it’s pointless to “argue philosophy” at this point because what’s done is done. He said MI-Connection “got off on the wrong foot,” and town officials owe citizens an apology for “the serious mistakes that were made.”

However, “fast-forward to today, and what you have is a complete re-launching of MI-Connection,” Carney said. “By us, along with Davidson commissioners, being more hands-on, a much better plan has emerged. We have the right groups of people in place. We have attacked it from every angle we can, and now we’re seeing results.

“We’re looking to get customers and cut serious costs that allow (MI-Connection) to be more effectively and efficiently run, and that’s a good thing. That’s real progress.”

MI-Connection, once the final agreement with BVU is in place, will be taking over the system’s finances, marketing and sales, business development and human resources. BVU – according to the recently signed memorandum of understanding with MI-Connection – will continue handling billing, customer-service calls and technical support.

Montgomery, in a sit-down chat this week, actually sounded excited about the possibilities once MI-Connection’s sales and marketing move from Virginia to Mooresville. He is eager for MI-Connection to start marketing itself as the small-town alternative to a corporate-giant like Time Warner Cable. And since one of his favorite parts of being mayor is interacting with people, Montgomery said he has even considered making personal calls to residents to chat with them about MI-Connection.

The fact is, MI-Connection needs more customers to generate more revenue and pay its debt service. And as was pointed out by Davidson Town Manager Leamon Brice in a February 2010 letter reprinted at www.DavidsonNews.net, “until new customers sign up for telephone, internet and cable services, the towns will be required to subsidize MI-Connection.” Although the potential extent of that subsidy is frightening, residents are tired of being “scared” into signing up for MI-Connection, especially when public opinion was overwhelmingly against the town’s purchase of the system in the first place. And clearly, bullying residents hasn’t proven to be effective.

While perhaps “unsophisticated” and unlikely, since government officials don’t have time to personally call each and every Mooresville and Davidson resident to chat about cable, Montgomery’s approach is a breath of fresh air compared to the alternative. He says it just makes sense: “I don’t believe in shoving it down people’s throats. I would just like to talk to people about it. Time Warner is a corporate machine. We need to bring MI-Connection down to a level where it’s more personable.”

And moving MI-Connection’s operations from Virginia to Mooresville means marketing and sales ideas will be tailored to local people by local people.

Still, not everything is sunshine and rainbows. Many promises were made to Mooresville and Davison residents about MI-Connection, and the cable system, in its three years, hasn’t delivered. We were told MI-Connection would be profitable in five years and that the original debt for the system’s purchase would be repaid entirely through system revenues. That hasn’t happened – by a long shot. We were told MI-Connection would build fiber-to-the-premises infrastructure, making the system a driving force for economic development. That hasn’t turned out to be true, either.

The optimism among government leaders – even those who have opposed MI-Connection in the past – isn’t going to magically make everything better. It isn’t going to fix the mistakes that have been made, and it isn’t going to make the system successful or profitable overnight. But it is nice to know that a little hope exists in an otherwise seemingly hopeless situation.

Optimism is a welcome change.

This column was originally printed in the Dec. 17 edition of Mooresville Weekly. To participate in the discussion, leave comments here or at http://mooresvilleweekly.com/opinion/2010/12/‘mi-correction’/

MI-Connection ends management relationship with Bristol Virginia Utilities

Bristol Virginia Utilities' “sweetheart deal” with MI-Connection is over.

On Wednesday, officials of MI-Connection, the town's cable system, and representatives of Bristol Virginia Utilities (BVU), the system's operator, signed a Memorandum of Understanding (MOU), ending BVU's operation of the cable company – and the $1.5 million management fee that MI-Connection pays BVU every year.

MI-Connection will now pay BVU $300,000 a year to be a “service vendor,” working under contract to continue providing customer service, billing and technical support for the cable company, according to a press statement issued Thursday afternoon. Meanwhile, employees in the Mooresville MI-Connection office – currently employed by BVU – will become MI-Connection employees, and several departments and responsibilities, including human resources and finance, will transition from BVU to MI-Connection, the release states.

Some town leaders have agreed that changing the relationship with BVU – with MI-Connection assuming more self-sufficiency and day-to-day control over its own operations – is a step in the right direction. They also say that having a system that is not only locally-owned but locally-operated will allow the company to respond faster and grow to meet the needs of the marketplace. The MOU “is an important and necessary step to form a common line of action,” said Mooresville Mayor Chris Montgomery. “A focus on managing costs and building on community spirit provides an exciting opportunity citizens should support.”

The MOU is a non-binding agreement that represents MI-Connection's and BVU's intentions on how to proceed with the negotiation of an eventual binding contract that will detail the two companies' new relationship. The transition is expected to be complete by the second half of 2011.

The new arrangement with BVU is not expected to increase costs. In fact, the $1.2 million recouped from the management-fee reduction will be used to pay the new employees and support the departments that the system will acquire, the press release states. MI-Connection customers are not expected to see changes in service during the transition. Customer-service phone numbers should remain the same.

“After three years of significant improvements to the system we inherited, an almost double-digit growth in our customer base in the past 12 months and a 7 percent revenue gain in 2010, we feel it’s time to forge a bridge of independence from BVU,” said MI-Connection Chairman John Kasberger. “While we have benefitted greatly from BVU’s guidance and expertise over the past three years, we feel the need to move toward becoming self-sufficient in our operations.”

This month marks MI-Connection's third-year anniversary, and all three years have been marked by controversy and citizen unrest over the town's purchase of the system and the financial consequences. Despite the dark clouds, Mooresville and Davidson government leaders have maintained a positive public attitude. But outside of press releases and public meetings, a different story has been told the past three years.

In a conversation last year, a clearly frustrated town leader called BVU “a third-party spender that's running the show.”

“They manage and operate the company with no accountability for its performance.”

He said BVU “is not connected to Mooresville” and had little to no experience managing, operating or marketing a cable system before landing the “sweetheart deal” with MI-Connection. “We are their guinea pigs,” he said.

Mooresville Commissioner Mac Herring – in an email obtained in a public records request last summer – seemed to back up that sentiment. “There's a storm brewing,” he wrote. “The financial model is flawed, … and the confidence in BVU at running the system is faltering. Their operations seem to be sound, but there has been little success at marketing the business applications.”

An e-mail Thursday afternoon to BVU President/CEO Wes Rosenbalm and Vice President/CFO Stacey Bright, asking who initiated the end of the management relationship, was not answered.

MI-Connection's move toward more independence is a hopeful sign of good things to come, said Davidson Mayor John Woods. “Like its subscriber growth, MI-Connection’s willingness to take on more responsibility for its employees and operations is a sign of its growing maturity as a company and a sign of its tremendous potential,” said Davidson Mayor John Woods.

Kasberger said that the MI-Connection board is aware of its challenges but that the system is well-prepared for what lies ahead: “We are gaining confidence every day, and we look forward to assuming some of the responsibilities that BVU has so capably carried for us since 2007.”

MI-Connection - more than meets the eye?

Something isn't adding up with MI-Connection.

After reading the Mooresville Tribune's recent article on the town commissioners' planning retreat - http://www2.mooresvilletribune.com/content/2010/feb/19/cable-issue-hot-one-retreat/news-local/ - I was left with the impression that town officials may know more than they're letting on.

And that wouldn't be much of a surprise. After guaranteeing public money for MI-Connection, town officials quickly grew uneasy with public requests about the communication system's financial health and marketing/sales plans. While we own the system, we've been told that some information can't be shared with us. Why? Because it could end up in the hands of our competitors, which could prove detrimental to the success of our $92.5 million (so far) communications system.

The little that is being shared with the public is important. But what's typically more important is what is not being said. Such as this: a Feb. 2 letter from the N.C. Department of State Treasurer to Evan Webster, former Davidson town commissioner and chairman of the MI-Connection board of directors. The letter, in essence, states that the Local Government Commission, in its audit of MI-Connection's FY 09 financial statements, found that the system "has serious financial problems which the System's governing board must address immediately." To read the full letter, click on each document to enlarge:




Perhaps it's information like this that is causing our town board to seem a little off-kilter recently. The topic of MI-Connection apparently led to an exchange between Commissioner Miles Atkins and Mayor Chris Montgomery at the board's recent planning retreat, where Atkins - a member of the MI-Connection Strike Team - agreed to make a presentation about MI-Connection. (http://www2.mooresvilletribune.com/content/2010/feb/19/cable-issue-hot-one-retreat/news-local/)

But that exchange, taken in context, appears to be a small piece of a much larger picture. That "context" may have been provided in a letter sent by Commissioner Mac Herring to Montgomery earlier this week. In the letter, Herring confronts the mayor about his "lack of leadership."

Referring to the planning retreat in particular, Herring writes: "During the entire 2 day session you only made 1 comment, and that was a personal attack on Commissioner Atkin's [sic] presentation of where we are with MI-Connection. You contributed NOTHING to any other conversation. You were frequently doodling or texting. At least twice an hour you would get up and leave for 10-15 minutes, sometimes for 30 or more. Though present, you were absent.

"For you to sit in our Strategic workshop and not engage in the conversations, offer your opinion, ask questions and help provide direction for out Town's staff is inexcusable...especially as your attention was elsewhere and and you were frequently elsewhere," Herring continued. "It almost seems as if you are choosing to abandon the duties and responsibilities of the position to which you were elected."

To read Herring's letter in its entirety, click on the documents below:

MI-Connection: Looking forward

Recent comments here have raised some key points and questions in the ongoing MI-Connection saga.

We can always look behind us and chastise our elected officials for their decision to purchase the system, despite the public outcry. But that’s a score that can be settled in the voting booth. Even then, we’re left with a cable system. As one commenter (Aug. 31 at 6:41 p.m.) very plainly stated it: “Let's suppose we vote everyone out? Great! Your mission will be accomplished. Then what? Anybody have a buyer just waiting to bail us out? If so, let's bring them forward and talk to MI-C or whomever. The fact of the matter is right now we are stuck with this system until we can sell it….”

Another comment (Aug. 30 at 8 p.m.) added: “Regardless of what anyone thinks of this deal and whether or not it should have been approved, the fact of the matter is, we own the system … What's done is done and you can use the election to voice any of your displeasure with the people who voted for the deal.”

That commenter goes on to rally folks to support MI-Connection, lest our taxes are raised to pay for the system.

While town officials from both Mooresville and Davidson are assuring us that raising taxes isn’t in their “plan,” they’re also pointing out that the success of the system depends on us, the residents and prospective MI-Connection customers. In a Sept. 1 DavidsonNews.net article, David Boraks quoted Davidson Mayor John Woods, saying: “To those negative voices in the world, I say the future is in your hands. Use the system and it will be successful.”

But some of you aren’t buying that. “So to be clear Mr. Mayor,” one person wrote (Sept. 1, 8:22 p.m.): “Whether or not you raise our taxes depends on if we ‘embrace’ the system. So our ‘embracing’ of the system is not unlike paying the mob protection money. Pay up, and no one gets hurt.”

I think it’s smart for us to be wary of Woods’ argument. Why? Because we’re also being told that for MI-Connection to be profitable, residential subscribers aren’t going to be enough – instead, the system must be upgraded to be able to serve more lucrative commercial accounts. Last year, we were told that $12.5 million would be sufficient for that. A year later, however, we’re being told that the $12.5 million was, oh, maybe $19 million short.

As one recent post (Aug. 31 at 1:22 p.m.) stated: “All the upgrades have been for RESIDENTS who didn't want this thing in the first place. Now they need BUSINESSES to MAYBE make it profitable. But oops they ran out of money before they made it possible to service the businesses.”

Added another post (Aug. 31 at 2:29 p.m.): “There is a misconception that we just need a little more business so this thing will break even. Wrong! Even if the top line were to double, MI-C would still lose money (just check out their budget and do the math). There aren't enough households in Mooresville and Davidson to make this thing profitable.”

So, which is it? Will the system be successful if, as Woods stated, we simply use it? Or are we actually being asked not only to subscribe to the system, but also to support another multi-million-dollar infusion into its capital budget (guaranteeing it with, yes, our tax dollars) to make MI-Connection profitable?

That’s the $19 million question raised by a comment at 7:47 a.m. this morning:

“I have been (supporting MI-Connection) and in case you haven't noticed, we have had our rates increased at least twice since they have taken over. How many more increases are there going to be? And if they still go under...how much more (are) we going to pay? Seems we will be paying two fold for supporting them when we didn't even want them.”

One problem is that we might not ever see the full picture. Town officials are scrambling to figure out ways to keep confidential information about MI-Connection that could be competitively damaging. But they have a dilemma, because in doing so, they would also be keeping from the public a lot of information about a system that we own. That’s a legal no-no. And as any honest government official in Mooresville (no jokes here, please - ha) would tell you with certainty, that hasn’t traditionally sat well with Mooresville citizens.

Is it a sticky predicament for the government? You bet. And we could all shake our fingers and say “we told you so.” But, again, we’ll still own the cable system.

I am not suggesting that our government will hear our suggestions or solutions. But an open, constructive debate has never hurt anyone.

Here are some questions that'll hopefully get one started:

Do you subscribe to MI-Connection? What do you think of the service and price? If you do not use MI-Connection, which service do you use? Did you switch to a different service provider after the towns purchased and launched MI-Connection? Why?

If you do not subscribe to MI-Connection, are you considering switching in an effort to financially support the system? Do you buy into the notion that residential support of MI-Connection will be enough to keep the system afloat or, better yet, make it profitable? Do you believe that, without extra money from the towns, MI-Connection will go belly-up?

For those of you who do not subscribe to MI-Connection out of principle (because you disagree with government involving itself in private business, or you disagree with the government controlling media): What’s worse – compromising your principles, or paying higher taxes for a system with which you never agreed?

Should we just call it quits with the system and sell it, even in a bad market? Would you support that option even if the system sold for half the price we paid for it, and then tax increases would have to make up the difference? Should we invest additional millions for capital improvements then sell the system? What are the risks, and do you consider them worth it?

Should we simply trust the government and throw our support behind the system? Or, do you have a hard time supporting a system with ever-changing projections that have already cost millions … and are “projected” to cost millions more?

One commenter (Aug. 31 at 11:06 a.m.) listed several stipulations that s/he would have before switching to MI-Connection. Among them: the Town of Davidson passes an ordinance “prohibiting it from ever again borrowing more than $2 million without a vote of the citizens.” Thoughts?

Do you believe we should seek investors for a public-private ownership arrangement of the cable system? What are the pros and cons?

DavidsonNews.net: "A loss for 2009, but signs of growth at MI-Connection"

Thanks to a neighboring news website to our south, DavidsonNews.net, we have a first glimpse into yesterday's MI-Connection meetings. Be sure to check out David Boraks' article. It's linked in MI-Connection News Around Town (above), and also here:

http://davidsonnews.net/2009/09/01/a-loss-for-2009-but-signs-of-growth-at-mi-connection/

Of particular interest to me, at least, were the last few paragraphs of the article. I'll reprint them here for your convenience:

AUDIT AND HURDLES AHEAD

The figures released Monday are still preliminary; an audit won’t begin
until Sept. 14.

Meanwhile, hurdles remain. System officials say they likely will need more
money in the future to continue growing.

“Based on what we know today and based on the obligations of MI-Connection
and our indebtedness, and based on a model that we think we can achieve … it is
a potential that the towns might need to invest more in the future,” Ms. Bright
said.

“It might be 19 (million dollars), it could be 7 (million) it could be 10
million,” she said. If growth picks up, the number would be higher.

The system expects to cover a shortfall this year (2009-10) with reserves,
but it’s unclear what happens a year from now in the 2010-11 fiscal year. That’s
when the towns will have to begin making principal payments on their initial $80
million bond issue, which paid for the system and initial work on the
upgrade.

“That’s really when there comes issues of the maybe the towns’ needing to
step up and help with capital, and that capital might be only the capital needed
to extend infrastructure to an enterprise customers or hook up more residential
customers,” Ms. Bright said.

TAXPAYER CONCERNS
Some critics of the system worry future capital infusions could come out of
taxpayers’ pockets. But officials from both Davidson and Mooresville said Monday
they don’t envision paying for growth or making up shortfalls with property
taxes.

“It’s not in our plan,” said Maia Setzer, Mooresville’s director of
administration and finance.

Added Davidson Town Manager Leamon Brice: “I don’t see it in our plan. That
really is speculation. … Now that we have the best system available, we
anticipate being able make (our) numbers. We now have a very good system that we
need to market and people need to support.”

Davidson Mayor John Woods also said a cable-related tax increase is
unlikely, and he said citizens can help make sure that doesn’t happen.

“It has never been our intent to support this system with taxpayer funds.
The 2010 budget has been approved and there is no need for taxpayer assistance.
The future depends on our citizens and businesses embracing the system, taking
advantage of its offerings,” Mayor Woods said.

“I hope we can celebrate a locally-owned effort that contributes to this
community. To those negative voices in the world, I say the future is in your
hands. Use the system and it will be successful,” the mayor said.

Press Release: MI-Connection launches search for new general manager, enters new customer growth phase

(Click on the documents to enlarge:)

Town/BVU officials can meet today, after all

A couple hours ago, I received an e-mail from Sara-Lynne Levine, communications director for the Town of Davidson. She said the three people who are holding individual conferences with the press today and tomorrow could accommodate a meeting with me today (as opposed to tomorrow), after all.

At first, I agreed, as long as the officials could meet a little later in the afternoon than the 3 p.m. time they proposed for my conference. But after further consideration and discussion, I've decided that I can't go to the meeting because I cannot justify attending a meeting that the public is not allowed to attend.

I sent an e-mail to Levine, thanking her for trying to accommodate my schedule. However, I explained that I am very uncomfortable with the format of the meetings. Various media outlets will be meeting individually to discuss MI-Connection with Mooresville Finance Director Maia Setzer, Davidson Town Manager Leamon Brice and Bristol Virginia Utilities Chief Finance Officer Stacey Bright.

The people of Mooresville and Davidson - who are ultimately responsible for the MI-Connection system - are not invited.

I let Levine know when the three folks holding the individual conferences decide to present themselves publicly and field questions from the public, I will make any necessary adjustments to my schedule to attend that meeting.

Town commissioner on MI-Connection: 'There's a storm brewing'

Mooresville and Davidson: Get ready to dig deep – again – for MI-Connection.

Town officials predict the cable system might need at least $19 million more in the next five years.

Officials contacted by the Report last week did not want to discuss specifics, citing “proprietary information” – specifically, information that could be damaging once in the hands of MI-Connection’s competitors.

Town commissioners say they’re reluctant to elaborate because they haven’t been given “hard numbers.” Commissioner Chris Carney, in fact, said figures being used in discussions are “speculative” at best, because no one has yet seen MI-Connection’s audited year-end financial statements. Those aren’t expected to be released until October.

Town Manager Steve Husemann received MI-Connection’s unaudited year-end financial report last Wednesday. He did not release a copy to the Report, however, before beginning an eight-week leave of absence on Friday.

“I know there have been discussions that money is going to be needed if we’re able to accomplish all the things we’ve talked about,” Carney said last week. But when asked how much money is being discussed, he said: “So much of what we’re talking about is speculation. The numbers are unaudited. They’re good to use as a tool to start coming up with a strategy, but you don’t base your entire business plan around them because they’re not accurate yet.”

Once the numbers are given to commissioners, Carney said, “We are going to be honest. If we have something that says the sky is black, then the sky is black. We can be honest, but we need to be factually correct when we’re honest.”

Commissioners might not know just how black the sky is right now. But in the words of Commissioner Mac Herring in an e-mail obtained by the Report in a recent public-records request, they do know “there’s a storm brewing.” And in fact, town officials confirm they’ve been told to anticipate at least $19 million more in five years.

“Not sure if our local fiber optic venture will be successful,” Herring wrote in the e-mail. “The financial model is flawed, the Chair has apparently been withholding information, and the confidence in BVU (Bristol Virginia Utilities) at running the system is faltering. Their operations seem to be sound, but there has been little success at marketing the business applications. Perhaps we just kept our eye off the ball for too long.”

The towns of Mooresville and Davidson purchased the cable system for $80 million in December 2007. Last summer, the two towns coughed up another $12.5 million because, without it, MI-Connection wouldn’t be able to complete upgrades, including extending fiber to local businesses, which would be a significant money-maker for the system. (For detailed information, visit http://thegattonreport.blogspot.com/2008/05/cable-cash-cow-turned-catastrophe.html)

Four seats are open on Mooresville’s town board this November – the mayor’s seat and those of Commissioners Herring, Carney and Frank Rader. All four voted for the original $80 million financing for MI-Connection; Carney voted against the second $12.5 million request. Rader and Thunberg - two of the staunchest town-board supporters of MI-Connection - did not respond to Report questions this week. They are both running challenged races this year. Carney and Herring are running unopposed.

Mooresville Finance Director Maia Setzer said last week that the original $80 million for the cable system was “a Certificate of Participation borrowing,” while the “secondary ($12.5 million) was an installment loan.” This fiscal year, she said, $4.7 million is due in debt payments – half next month, and the other half in February.

Herring said: “I am of the opinion through our discussions (with no ‘real’ numbers in front of us), that MI-Connection can make its payments but will have no capital to make the taps into the business market. It’s kind of like having a wonderful 6-lane highway with no exit ramps.

“My understanding,” he added, “is that in order to reach the potential business customers … additional capital will be needed.”

“We have a high quality telecommunications product but need to market it (and) find some additional capital to get it to market,” Herring added. “We have a Cadillac of a system, now we need to start utilizing it.”

But if MI-Connection overextends itself in infrastructure costs, trying to reach more lucrative commercial accounts that will foot the repayment bill – and if that puts MI-Connection in a position where it can’t repay the towns’ debt in the meantime – does the burden of repayment fall back on the town?

“It would,” said Setzer, “but there has been no indication that MI-Connection would not be making those payments this year.”

But if Herring’s understanding is accurate, then MI-Connection may be able to pay its debt payments, but that will leave the system with not enough money for capital improvements to be able to lure in more lucrative accounts.

So what happens if the town continues subsidizing MI-Connection’s capital costs? Will town commissioners have to raise taxes? Setzer responded simply: “I do not know.”

While official figures have not been released, officials in recent e-mails make repeated references to the pending projections and the “bad news” that will accompany their release.

One e-mail in particular may provide more questions than answers, but it points to a looming problem for MI-Connection. In the June 5 e-mail, Wes Rosenbalm – president and CEO of BVU (MI-Connection operators) – stated to Davidson Commissioner and former MI-Connection Board Chairman Evan Webster: “We do not want to be alarmist but we think the situation with MIC is very serious.”

Rosenbalm points to two attachments (removed before the e-mail chain was sent to Mooresville commissioners): “a memo from (BVU Chief Financial Officer) Stacey (Bright) to me on the situation,” Rosenbalm wrote, “and then a memo from me to you on what options we have at this point.

“I apologize for sending this to you before I leave on vacation,” Rosenbalm said to Webster, “but we thought it was serious enough that we need to get it to you this week. We request that you share this with the remainder of the (MI-Connection) Board so they are aware of the situation.”

But Webster did not pass the information along until July 10 — five weeks later. “Wes sent this email approximately 5 weeks ago,” Webster said in an e-mail to other MI-Connection board members. “I did not forward it at that time because I did not agree with the tone or the approach. Wes left for a two week vacation after sending this, and I wanted to talk with him before pushing this along. In addition, we were still working on the budget.”

Webster stated that “the outlying situation” documented in the memos “has been discussed among ourselves, so the subject matter should not come as a surprise.” He also indicated that Bright’s memo included a financial analysis that “does highlight the slope against which we must climb.” However, Webster stated, “her initial analysis assumes that we will climb the slope in one year. I think that this is a multiple year project.”

As for the options that Rosenbalm proposed, Webster stated to the MI-Connection board members: “Even if we concede that there are two options, prudence would dictate that we take the time necessary for adequate consideration. We know that we are good for at least 12 months.”

When word reached Mooresville that Webster did not share for five weeks the information provided to him by Rosenbalm, at least two town commissioners – Carney and Atkins – moved quickly to try to have Webster unseated as the MI-Connection board chairman.

With a resolution in hand at the beginning of the Aug. 3 town board meeting, Atkins intended to make a motion asking that a letter be sent to Davidson’s mayor and town board, on behalf of Mooresville’s town board, “informing them that we have lost confidence in the ability of Mr. Webster to lead MI-Connection in a direction that will benefit our Town and its citizens and asking that Mr. Webster be immediately removed from the MI-Connection Board of Directors.”

The resolution also stated: “It is imperative, both for the benefit of MI-Connection, and certainly for the citizens of the Town of Mooresville and our Board, that each member of the MI-Connection Board of Directors and most certainly its chairman, strive to make MI-Connection a successful business and service venture.

“Of equal importance,” the resolution added, “it is imperative that the person serving as chairman of MI-Connection keep our Town Board updated about the strengths and weaknesses of anything that might impact on the operation of the MI-Connection system.”

Commissioners found out just before the start of the Aug. 3 town board meeting that Webster’s term would expire Aug. 13. Assurances that Davidson would not reappoint him to the MI-Connection board mitigated the need for the resolution and motion at Mooresville’s Aug. 3 town board meeting.

Carney – who, along with Atkins, voted against the additional $12.5 million for MI-Connection last summer because he disagreed that elected officials should be able to serve on the MI-Connection board – said last week: “I very publicly had asked for a change in the board chairmanship for the last 12 to 18 months because the person in charge was not in a position to be unbiased.

“We have a system with the opportunity to break based on that. And – guess what? – it broke,” Carney added.

Webster also chose not to seek re-election this year to his seat on Davidson’s town board.

Carney said he hopes that new leadership on the MI-Connection board will “provide a different philosophy based on our original goals and objectives.”

Mooresville will also be gaining a representative to the MI-Connection board. While Mooresville guaranteed the large majority of the $92.5 million for the cable system, until recently it had only two representatives, as opposed to Davidson’s three, on the MI-Connection board. But Mooresville is looking now to appoint a third representative, which will decrease Davidson’s representation to two.

Atkins said that he has “complete confidence in, and admiration for,” the Town of Mooresville’s two current appointed MI-Connection board members, John Kasberger and David Pendleton. “They have been very open and transparent with the information that has been made available to them,” Atkins said, “and for that I am truly grateful to have them represent Mooresville’s interest in MI-Connection.”

In addition to changing the structure of the MI-Connection board, Atkins said the Town of Mooresville “has been assured MI-Connection will be much more aggressive in its sales, marketing and business development initiatives to meet the growth/revenue projections required to achieve the financial goals and obligations of the organization.”

MI-Connection itself is also undergoing an organizational restructuring. And town officials say they have identified a flaw in MI-Connection’s agreement with BVU that needs to be corrected: the agreement is not performance-based. In other words, it does not include a specific mechanism to hold BVU accountable for the performance of the cable system from a sales and marketing standpoint.

While these plans have not been announced publicly, Mooresville’s Husemann has tried relentlessly to get in front of the story at least since the beginning of August. In e-mails to town and MI-Connection officials, Husemann repeatedly stressed his uneasiness with unaudited figures – that could turn out to be wrong – being reported by the media. He is also adamant about the need for an action plan and to be open and honest with the public. On Aug. 12, he stated in an e-mail to the MI-Connection task force, including Atkins, Carney and Herring: “We would be wise to package the bad news with a statement about what is being done to address the situation.

“When we have official projection numbers, bad news could have a negative effect on marketing,” he added. “Any type of governance restructuring, changes in personnel, changes from engineering to sales/marketing all need to be announced soon as well as a statement about the financial situation.

“The message,” continued Husemann, “needs to be ‘Yes – we have a problem, but here is how we hope to address.’ Open, honest …”

In an Aug. 21 e-mail about a pending press release, Husemann stressed: “This needs to happen ASAP. We need to announce it early next week and be very open and honest.”

Obviously, no one moved on Husemann’s pleadings until last week, when pressure mounted from the press.

On Friday, meetings were being scheduled for tomorrow and Tuesday with various media outlets. The Report was contacted by Sara-Lynne Levine, Davidson’s communications director, requesting to meet Tuesday “to discuss MI-Connection” with Mooresville’s Setzer, BVU’s Bright and Davidson Town Manager Leamon Brice.

I will not meet on Tuesday. Therefore, once news from the meetings begins to be posted online – possibly on newspapers’ online sites tomorrow since that’s apparently when their individual Q-and-A sessions were scheduled – those articles will be linked here. Online-only news sources were apparently scheduled to meet for their individual conferences the following day. As soon as those stories are posted, they will also be linked here. If you find them first, please feel free to post the link in the Comments section.

MI-Connection raising rates

The towns of Mooresville and Davidson borrowed $80 million in December 2007 to purchase and upgrade the bankrupt Adelphia cable television system.

About six months later, the cable company - renamed MI-Connection - requested and received an additional $12.5 million from the towns.

Then on Jan. 30 of this year - just after the cable system celebrated its first birthday - the Mooresville Tribune published the following article, titled "Some fees to rise for MI-Connection customers": http://www2.mooresvilletribune.com/content/2009/jan/30/some-fees-rise-mi-connection-customers/news-local/

And hitting the mailboxes of MI-Connection subscribers either today or early next week: a notice that cable rates are going up an average of 9.3 percent, effective July 1, "as a result of the increased costs to MI-Connection" for "programming and other services."

In case you haven't received your notice already, here's a sneak peak of what you'll get:

And for a list of Frequently Asked Questions compiled by MI-Connection, click on these documents:

Cable official: MI-Connection 'not looking very good'

The Lake Norman Times recently reported that five months into the fiscal year, MI-Connection's operating revenue is about $686,000 in the hole.

Click this link for the entire article: http://www.thelakepaper.com/articles/2008/12/26/news/news003.txt

"Sound Off": MI-Connection

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?

Getting Back to Basics

Wednesday night’s “town hall meeting” was an eye opening experience – in many ways.

From fraternizing with developers to the treatment of the town’s elderly and special-needs population – mingled, of course, with lively discussion about some of the town’s more controversial issues – the meeting offered citizens a rare opportunity to speak casually, yet candidly, with their elected representatives.

Two commissioners – Ward 4 Commissioner Chris Carney and At-Large Commissioner Miles Atkins - turned out for the three-hour-long informal meeting, organized by Rev. Larry Green and attended by about a dozen local residents, including Iredell County Commissioner Ken Robertson. Green said every commissioner except Thurman Houston responded in some way to his invitation. Mitch Abraham and Mac Herring said they had previously-scheduled plans, and Frank Rader didn’t respond to Green but told the Charlotte Observer that he wouldn’t attend. Mayor Bill Thunberg, said Green, didn’t respond to the invitation at all.

And that’s unfortunate because even though I wasn’t sure what to expect from the meeting – or if it would be fruitful or productive at all – the free flow of information and the uninhibited exchange of ideas was unlike anything we have ever witnessed in Mooresville before.

I left the meeting with fresh insight. Perhaps the most compelling impression that the meeting left on me was that our town and its government is headed in the right direction. It is progress, not perfection, that we expect. And as long as elected officials are talking to us, and listening to us, we’ll continue to move in that direction.

The open dialogue that transpired at the meeting reminded me of the original purpose of my blog – and it highlighted for me just how far some have strayed from that purpose.

I am a fervent believer in the First Amendment of the U.S. Constitution, and I staunchly defend people’s right to speak freely – even when their speech displeases me, and even when their words stand in opposition to everything in which I believe.

Commissioner Atkins and his wife, Kim, have been heavily criticized in the comments section of my blog since last week when the Mooresville Downtown Commission announced that it had hired Kim Atkins to serve as its executive director. I have no problem with people questioning public officials, doubting their motives and/or intentions, and holding them accountable for their actions.

What I do have a problem with is this: Despite sustained attacks on this blog against Atkins and his wife, when he stepped out of Town Hall and sat down willing to face his critics on Wednesday, only one person confronted him about his potential influence over his wife’s hiring. That one person: local attorney Cliff Homesley.

Homesley pointedly asked Atkins if at any time during the hiring process he had discussed his wife’s candidacy with other government officials or MDC board members.

“I have had no contact even with fellow commissioners,” Atkins said. “I’ve had some talk to me, but I have refrained.”

It appears, however, that at least two elected officials did not “refrain” from attempting to interfere in the process. In fact, those two individuals apparently threatened to withdraw the town’s funding of the MDC if it hired Kim Atkins as the new executive director.

Atkins neither confirmed nor denied the information, but he said that since his wife’s hiring he has heard that some of his fellow elected officials were “really opposed” to her hiring.

Carney, however, stated that members of the MDC board of directors approached him, concerned about their funding from the town. He said they asked him if the funds would be “at risk” if they hired Atkins as the executive director “because they had heard that from other elected officials.”

Carney acknowledged that he warned the MDC board members upon their selection of Atkins that “they better be sure their policies and procedures were in place.”

He told those in attendance at Wednesday night’s meeting that it was improper for commissioners to have spoken for the entire town board and to have threatened to pull an organization’s funding.

Carney explained that town commissioners earlier this year agreed to fund the MDC as long as the organization met certain goals that it spelled out in a three-year business plan that was shared with town commissioners in budget talks this year.

Homesley also pointed out that Carney’s brother, Robby, was recently hired as the existing industry and marketing manager of the Mooresville-South Iredell Economic Development Corporation – an organization that, not unlike the MDC, receives annual funding from the Town of Mooresville.

County Commissioner Ken Robertson chimed in, denying that government agencies “play favorites” with family members of public officials. “They actually get scrutinized more,” he said, because of precisely what is happening right now to the MDC. “The employers are afraid they’ll be accused of cronyism,” Robertson said.

Sometimes, he said, that means the employer will “work twice as hard” to find a reason not to hire the family member.

And the government official, Robertson said, “is scrutinized only because they are related to someone who is trying to maximize their value in this world.”

Said Atkins: “I hope that people will get to know Kim and myself. She is accountable to her board as I am accountable to you as your public servant.

“She has to stand on her own as a professional,” he said.

Simple, straightforward questions. Simple, straightforward answers. A free-flowing exchange of ideas and opinions. That's what Wednesday night’s meeting proved is possible.

It’s also what my blog is about.

Let me make something clear: My reporting is about principles, not personalities. And I expect out of others what I expect out of myself -- that any criticism will be relevant, well-founded and factual. If I ever fail in that, I ask that you hold me accountable for it.

I created my blog just over seven months ago to foster open, uncensored dialogue among and between the residents of Mooresville, southern Iredell County and beyond about issues that are important to us.

At times, certain readers have used my blog as a conduit for outright lies about me and other private citizens. One example: an innocent joke by a reader was turned into an accusation that I was having an extramarital affair … without regard for the fact that my husband, my two young daughters … my mother … all read my blog.

One reader has repeatedly called for investigations of private citizens, including me, accusing us of having “skeletons in our closets,” always stopping short, however, of disclosing just what those skeletons are.

I have even been accused of being “on welfare.” Though I see no shame in human beings who fall on hard times and need a little help, the fact remains that my husband and I chose to make financial sacrifices in order for me to be at home with our children while he earns our living … and pays our taxes.

Many readers who have signed their names to their comments, and others who are simply mentioned in my posts or readers’ comments, have been randomly grouped together despite the fact that some of us would not know each other if we ran into one another in the grocery store.

One reader wrote obscenities and attributed them to me and other community activists. Other readers have gone so far as to ridicule peoples’ appearances, their body shape, their national origin and their religious beliefs. They have stooped so low as to use derogatory and vulgar terms such as “sheep,” “freaks,” and “retarded” to describe readers who have posted statements that are critical of government officials.

I agree with one reader who pointed out that in our system, there is a fundamental distinction between public officials and private citizens. When it comes to criticism, public officials are fair game. Private citizens are not. Why? Because public officials are public officials by choice. If they don’t relish scrutiny and exposure, they can rescind their status, reverting back to being a private citizen. Private citizens don’t have that luxury; they can’t “rescind” their status as a private citizen.

The long and the short of it is this: Like many of you, I have been appalled by the hateful content of some comments that have been posted on my blog. Countless people have contacted me, beseeching me to censor such comments. But I have refused to do so. My loyalty to freedom of speech easily trumps any hurt feelings which may result from someone’s words.

However, I call on those of you who have committed to joining me in my “mission” to refrain from engaging with those whose sole purpose is clearly to personally attack others – that includes private citizens and public officials alike. This does not preclude legitimate, factual and pertinent criticism of public officials.

Let's get back to basics. In the coming days, I plan to post several different topics that were discussed at Wednesday night’s meeting. I will provide a brief synopsis of what was discussed, and, as always, I welcome and encourage your voice in the ensuing discussions and debate.

Among the issues that will be posted:

• Town commissioners and town staff fraternizing with developers
• What ever happened to the town-hall protestors’ demands for the assistant town manager’s firing? Does the town really need an assistant-town-manager position?
• The town’s hiring of engineering firm CH2M Hill for the expansion of the wastewater treatment plant
• The ever-controversial question: Should Iredell County’s two school districts merge?
• Town employees’ use of the municipal golf course