Adelphia comes under fire at

Agoura Hills council meeting
Discrepancy in rate hike alleged
By Stephanie Bertholdo
bertholdo@theacorn.com

What might have been a routine vote at the Feb. 23 Agoura Hills city council meeting turned into a heated discussion about whether the council should offer Adelphia Cable services until December.

The city council last April extended Adelphia’s contract to allow the company to reorganize after its Chapter 11 bankruptcy. City staff said the extension also was granted so the company could rebuild the Agoura Hill’s cable system and provide new products to consumers, including digital television and cable modems.

Even as Adelphia works to emerge from bankruptcy, the company has been put up for sale. Time Warner and Comcast are said to be suitors, but no formal bid has been accepted.

Adelphia filed Chapter 11 after owner John Rigas and his sons, Timothy and Michael, were convicted on securities and bank fraud, federal conspiracy and other counts that resulted in a $60 billion corporate loss.

City staff recommended the extension because the city continues to collect franchise fees. To date, Adelphia has paid $107,367 in franchise fees.

Carol Tubelis, assistant to the city manager, also noted that service to subscribers has not been interrupted during the company’s reorganization.

Rather than give a stamp of approval, Councilmember John Edelston pulled the item for further discussion, saying Adelphia General Manager Steven Nabor’s testimony last April was "false and misleading." Edelston said he called Nabor twice and wrote him a letter detailing his concerns and received no response.

Edelston wrote to Nabor about cable television rate increases as compared to the consumer price index. He said that the actual rate change was more than 100 percent greater than what was stated in Nabor’s report last year.

At the meeting, Edelston asked that the council wait to extend the contract until the information can be verified.

Nabor explained that there are a variety of factors that affect rates from community to community.

"We’re trying to get to one rate structure throughout the country," Nabor said.

He presented a chart documenting the cost of service from city to city.

Residents in Agoura Hills, Calabasas, Westlake Village, Oak Park, Santa Paula and Fillmore, are charged $13.25 per month for basic cable. Classic cable brings the bill up to $39.85, which is a 7.4 percent increase over last year.

Simi Valley residents pay the highest rate for basic cable at $15.37 per month.

City Attorney Craig Steele said, "The city is not a rate regulator." He added that the city was protected by having the extension in effect.

Although the city council cannot dictate rates, Edelston, believes councilmembers should negotiate with Adelphia because the company is expanding its services to the Internet and the telephone.

Mayor Ed Corridori was concerned that if the contract wasn’t continued, the city would be at risk.

He used the example of homeowners working with a contractor who does a terrible job. "You can’t hold him to the terms of the contract if there is no contract," he said.

Mayor Pro Tem Denis Weber agreed to give Edelston time to investigate.

"Two more weeks are no big deal to me after there has been no contract for two months," Weber said.

Council member Jeff Reinhardt said that $40,000 per quarter is at risk. He added that by renewing the contract, the city was protected.

Edelston said that the company may be on leading edge of technology, but when it comes to paying the bill, it may mean that the residents of Agoura Hills are on the "bleeding edge."

Since council member Dan Kuperberg was absent, the vote was tied. As a result, no action was taken and the contract will not be extended until the next meeting, scheduled for March 9.