The Town Board Tuesday approved an amendment to Davidson’s cable TV interlocal agreement with Mooresville that will allow the two towns to borrow an additional $12.5 million for upgrades to the town-owned MI-Connection cable TV and internet system.

The extra money is needed mainly because the towns had to pay more than expected for the system last December. To cover the shortfall, they dipped into money originally allotted for upgrades. The system also needed more work than originally anticipated.

Mooresville’s Town Board earlier this month approved borrowing the $12.5 million. Tuesday night’s action commits Davidson to help repay the additional loan.

The higher purchase price was the result of an unexpected jump in the number of customers reported by Time Warner Cable, which had been operating the system while the towns decided whether to exercise an option to buy it.

Meanwhile, the town board authorized Town Manager Leamon Brice to negotiate a contract that would allow MI-Connection to locate a small network equipment building at the public works yard, which is at Gamble and West Walnut streets. The hub would be part of a major system upgrade designed to improve and expand service on the network, Mr. Brice told the board.

Also Tuesday, the board briefly discussed and then deferred consideration of a proposal from a private company to provide local government programming on the MI-Connection system.

Mr. Brice told the board he thinks the proposal was too expensive, given the town’s current tight budget environment. He suggested the town might take another look at the idea in a future budget year.

Mr. Brice also said it appears that Cornelius and Mooresville might decide to go ahead with the local government programming.

DOCUMENTS

Aug. 12, 2008, Davidson Town Board order to amend cable interlocal agreement, CLICK HERE>

PREVIOUS COVERAGE

June 4, 2008, Towns discuss extra borrowing for cable.”

May 9, 2008, “MI-Connection issues first quarterly report”

April 11, 2008, “Cable system seeks $12.5 million more”

Nov. 28, 2007, “Cable system price tag rises”