An Orem cable television company has failed to meet an obligation for services to neighboring Provo and is racking up fines of $250 a day.
Northstar Communications of Orem has said its subsidiary, Provo Cable, won't be able to provide services to 80 percent of the city's residents this month, as laid out in its franchise contract with the city. Company managers say it could be a year before that obligation is met, at a cost of nearly $90,000 in fines.Which is fine by Northstar president Ben Cluff, who was aware of the franchise requirement when Northstar purchased the controlling interest of Provo Cable from the estate of Bill Nicol, who died last February.
"The purchase of Provo Cable is still very lucrative for us, even if we pay the fines," he said.
City officials have said they don't intend to cut Provo Cable any slack, and the fines began compiling Oct. 16.
However, the city has said it won't actually collect any money pending the outcome of negotiations, which could include the company providing the city some service in lieu of cash.
"I sent the word out to all department heads that they put their thoughts together and determine what the cable company could give that would be beneficial," said City Council Executive Director Ted Dowling.
TCI Cable, the other cable provider in Provo with 10,000 subscribers, already carries City Council meetings. Several possibilities for Provo Cable include providing the city with video surveillance cameras for the Police Department or setting up automatic meter reading for the Energy Department over its fiber-optic system.
Northstar, however, might be content to just pay the fine, Cluff said.
Cable franchise agreements with TCI and Provo Cable are also lucrative for Provo. The city collects roughly 6 percent of the gross revenue of both firms, totalling $185,000 a year.