Independence Township lost $600,000-$650,000 in cable-TV revenue and legal costs over the past two years, a victim of incomplete paperwork.
According to several letters from Comcast, the township missed out on $320,000 in Public, Education, and Government (PEG) fees because its Uniform Franchise Agreement was ‘incomplete? and not sent within the prescribed ?30-day time clock by which a community could review and approve a filed franchise.?
Under the Uniform Video Services Local Franchise Act (PA 480 of 2006) in order to receive both franchise and PEG fees, the proper blanks must be filled in with ‘not to exceed five percent? for franchise fees and ‘not exceed two percent? for PEG.
‘In the event a fee is left blank by the franchising authority and/or the document is returned unsigned, then the provider is without the authority to collect those fees from customers and remit it to the franchising authority,? said Olivia Visperas, government affairs manager for Comcast in a May 19, 2008 letter to Kristin Kolb, attorney with Secrest Wardle law firm. ‘Such is the case in your community.?
Clerk Shelagh Vanderveen said township attorneys did their jobs.
‘I really wouldn’t want to comment on that because I’m not looking at what you’re looking at,? she told the Clarkston News. ‘I know our attorneys did everything according to the way they should have. I know Comcast has thrown up a lot of obstacles in order to stall having to pay us anything.?
Kolb did not return calls to the Clarkston News seeking comment, but spoke to the Township Board, Aug. 19.
‘Of the 10 to 12 municipalities firm represents, Independence Township is the only one in this situation because under your expired franchise with Comcast, you didn’t receive any PEG fees, the township has never gotten anything from their cable provider,? she said. ‘All the other communities we represent have always gotten something.?
The two-percent PEG fees would have generated an estimated $160,000 for the township per year, for a total loss of $320,000.
These fees are used to help pay for public access programming, including equipment, facilities, services and would help cover the salary of Clarkston Public Access Center (CPAC) Program Director Andy Reish, who now instead of being paid by PEG fees is being paid taxes out of the general fund.
Comcast initially disputed paying the five percent, which is approximately $100,000 per quarter, but after nine months and $300,000 loss in franchise fees, the two parties voluntarily agreed to restart franchise fees effective May 2008.
The board voted unanimously at the Aug. 19 meeting to authorize attorneys to file a complaint with the Michigan Public Service Commission if they are not able to reach a ‘favorable conclusion? with Comcast.
Where the situation is currently and why the township isn’t demanding a quicker ‘conclusion? is still in question.
Supervisor Dave Wagner said it’s in the clerk’s hands.
‘I call up Kristin, or I’ll ask Shelagh what’s going on and bring it to conclusion,? he said. ‘It’s like ‘well we’re doing everything we can do and when something else happens, we’ll bring a report to the board.??
Litigation costs include attorney fees and hiring of an outside consultant based in California to conduct a ‘Community Needs Assessment.? These additional costs are more than $30,000.