After nearly three years of back and forth and a loss of $300,000 in revenue, Comcast agreed to pay two-percent Public, Education, and Government, PEG, fees to Independence Township.
‘I want to thank our local newspaper (Clarkston News), which wrote a story talking about how long this dispute has been going on,? said Trustee David Lohmeier. ‘Frankly, as a new board member I didn’t realize it.?
Lohmeier, Treasurer Curt Carson, Secrest Wardle Attorney Kristin Kolb, and Clarkston Public Access Center Program Director Andy Reish met with Leslie Brogan, senior director of Government Affairs for Comcast, and Olivia Visperas, government affairs manager for Comcast, on Nov. 20 to resolve the issue prior to meeting with Michigan Public Service Commission.
‘We tried to put aside everything we were arguing about, which included such dramatic issues as who filled out what blank, what date papers were filed, did somebody make the deadline, etc,? Lohmeier said.
The last offer by Comcast for PEG fees was a half percent. Lohmeier said the offer was based on a Community Needs Assessment in California, which included about $300,000 in equipment replacements.
‘Comcast looked across the table and said to us ‘that literally represents about a half of a percent and we don’t see justification for more than that,?? he said. ‘We said we’ll go back and we’ll show you how we can spend the amount of money we’re looking for, which is about $160,000 a year, over 10 years about $1.6 million.?
Over the next two weeks, Reish analyzed cable studio and equipment, as well as Clarkston Schools’ equipment. They met with Comcast again on Dec. 4, at which they agreed to two-percent PEG fees starting in January.
Trustee Neil Wallace said Lohmeier’s accomplishment in the two meetings was ‘borderline magic.?
‘The PEG fees aren’t exactly a windfall because they are going to go out to the citizens as an additional charge,? Wallace said. ‘I would like to see us look at ways to monitor very closely what these expenditures will be.?
Trustee Mark Petterson said he could not vote in favor of the PEG fees because it was ‘another tax? on residents.
‘I’m looking at that as a punishment to the Comcast users in our township,? Petterson said. ‘I realize the township needs money, but I don’t see any way we can possibly charge our Comcast users then take that money.?
Township Attorney Steve Joppich said it would not be considered a tax.
“A tax is paid by all residents,? he said. ‘This is a fee for a specific service.?
Carson said PEG fees were designed for users who get something for them.
‘If in fact they don’t want the additional benefit that is going to come from these fees, they can of course elect to cancel their service,? he said. ‘This board has done a great job at increasing the number of people who watch cable television. I think it’s all worthwhile.?
Carson also thanked Lohmeier for a ‘fine job.?
Lohmeier said Comcast would not pay PEG fees retroactively, and they could only be used for capital costs.
The board voted 6-1 to modify the franchise agreement to include two percent PEG fees. Petterson voted ‘no.?
‘We’re really happy we reached the agreement,? said Patrick Paterno, director of communications for Comcast. ‘We’re looking forward to continuing our long lasting working relationship with the township.?