Bristol Virginia Utilities to Add On-Demand Movies, breaks promises again

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Bristol Virginia Utilities to Add On-Demand Movies, breaks promises again

In 2007 Bristol City officials approved another $4.5 million in debt in addition to the almost $60 million BVU now has. Of the $4.5 million borrowed, $4 million was supposed to hook up new customers while $500,000 was to go to some marketing effort. See www.accessbristolva.com.

The BVU Board approved $500,000 to bring "on-demand" movies to existing customers obtained by over building existing private-sector infrastructure. By using the power of government and tax dollars, they offered subsidized CATV.

Wes Rosenbalm, BVU CEO says, “This is another layer of service we want to offer as a maturing system. This is different from our in-demand service, where people can watch movies at certain times. This will allow you to watch what you want, when you want.” He claims BVU has received numerous requests for the service. The service was supposed to start in July 2008. Their local competition already offer this service.

The equipment will cost $380,000 and the BVU board voted as much as $500,000 To quote, "The new equipment is expected to cost about $380,000 and would be funded by a line of credit approved last September by the BVU board and City Council." The board previously approved borrowing up to $500,000 to purchase and install the equipment. 9,000 customers in its electric service area. Ref. BHC Feb 25, 2008

Again, unserved resident forced to pay higher utility because of OptiNet debt go unserved.

More debt and more promises at Bristol Virginia Utilities

"BVU looks to expand telecom services to Abingdon, Scott County with grants, loans," so says the press. The head of BVU wants to spend another $16 million to expand the telecommunications service area. Wes Rosenbalm plans to extend the fiber-optic cable TV, telephone and Internet services called OptiNet into Abingdon, and farther into Washington and Scott counties. He promised this years ago, it seems they will deliver this time. To pay for the promised expansion, BVU officials hope to get as much as $12 million in grants from the Virginia Tobacco Indemnification and Community Revitalization Commission (in addition to the $10 million or more they already spent) and borrow another $4.5 million. $4 million is for serving customers and a half-million is for a new product, which turned out to be www.accessbristolva.com.

Rosenbalm claims, "We’ll pass 5,000 [homes and businesses] and estimate we’ll sign up 3,500." The $4 million is based on that 3,500 new customers (costs about $1,300) and he claims if they get less customers, they would need less money.

On August 29 the City Council approved the new money for BVU, but residents were having no part of it: "We’re in debt over our eyeballs. This debt won’t be paid for years," screamed city resident Nancy Marney. She also urged the council to sell off the OptiNet business. City resident Katherine Jewell demanded to know why Washington County wasn't paying for this. (We already are through electric bills due to BVU debt.)

BVU’s has nearly $50 million in revenue bond debt, about half of which is tied to OptiNet, as the press reports. They failed to note the other $25 million was incurred because the OptiNet division borrowed $16 million from the electric company side, who then borrowed outside bond debt to cover their expansions. The new $10 million building to house OptiNet and other City offices was payed for by electric customers, many non Bristol Virginia residents. Katherine called the plan "ridiculous."

Now they claim the grants are only $6 million. "This [expansion] will not help me as a citizen of Bristol Virginia. And your job is to help us," resident Guy Odum told the council. Ref. Bristol Herald Courier Aug 29, 2007 and Kingsport Times-News 8-21-07.

Some of big money the connected in Bristol, Virginia can earn. Here the per-capita-income is about $17,000. Bristol Virginia Utilities threatened to pull its advertising from the newspaper (BHC) if they published the salary information. Note the City Golf Coarse has been a financial disaster while Mr. Brown headed an effort to spend almost $3 million on a land deal that has so far netted a Cracker Barrel restaurant. It's not that most of the people aren't worth their pay check, but the fact so many other residents are under paid.

Wes Rosenbalm BVU President/Chief Executive Officer $120,536.00
Bill Dennison City Manager $111,000.00
Stacey Bright BVU Executive Vice President/Chief Financial Officer $104,985.00
Robert Kelley OptiNet Vice President of Operations $99,329.00
Mark Lane Network Architect $97,854.00
Robert Snodgrass VP of Operations - Electric/Water/Sewer $93,418.00
Stacy Evans Network Engineer $86,888.00
Jerry Brown Economic Development Director $85,437.00
William Price Police Chief $78,024.00
Luther Minor Clear Creek Golf Club Manager $76,839.00
Bob Childress Parks and Recreation Director $73,720.00

Updated for 2008:

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