Opp finalizes sale of CableTV

Published 12:00 am Tuesday, December 30, 2014

The Opp City Council finalized the sale of its cable TV system on Monday.

In October, the city of Opp and the Opp Utilities board approved the sale of Opp CableVision to Andy Cable in a special called meeting. The sale included an asset agreement for $2.5 million for the equipment and another $2 million that will be put into an escrow account for the city’s bond issue.

During yesterday’s special called meeting, the council approved an ordinance that will take effect in 30 days for an initial term of five years, and is automatically renewable for two additional five-year terms.

The City of Opp and Opp Utilities board will be paid a franchise fee of 3 percent. A figure will be derived from the lowest tier of basic cable.

According to Opp Utilities General Manager Stacey Parker, the revenues for fiscal year 2013-2014, unaudited, were $2.6 million. Based on that estimate, annual franchise fees would be roughly $80,000 per year.

Andy Cable also will provide free broadband/cable at city hall; Senior Adult Activity Center and Nutrition Center; Opp public locations; Opp Police Department; Opp Fire Department; Opp City Schools (cable only); and city warehouses.

Andy Cable also will provide the city with 24-hour access to a local access channel, and will have the right to sell the company upon approval of the city.

The board also approved a joint usage of the communications tower with a payment of $1 per year to Andy Cable.

Mayor John Bartholomew said that the police antennas are located on the tower, and would be allowed to remain under the contract.

During the Opp Utilities meeting Tuesday, the board approved the joint use of electrical poles by Andy Cable.

A fee of $11 per pole this year will be charged by the utilities board, and will increase by $1 each year until Jan. 1, 2020, when subsequent rates will be determined.

Parker said the city has approximately 2,900 poles in use.