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WPCNR THE FEINER REPORT. By Town of Greenburgh Supervisor Paul Feiner. August 3, 2006: Paul Feiner has announced an agreement with Verizon to provide cable fiber optic service to Greenburgh and assorted villages, to the media today. Here is Mr. Feiner’s announcement and explanation of the agreement:
The Greenburgh Town Board will be holding a hearing on a proposed agreement that will enable the town to have cable TV competition. Verizon is seeking a franchise with the town. The hearing will be held on Wednesday, August 9th at
PAUL FEINER
Here is the text of the Town of Greenburgh agreement with Verizon:
SUMMARY OF PROPOSED FRANCHISE AGREEMENTS BETWEEN VERIZON NEW YORK INC. AND THE
Background
A Consortium of the Town of
The renewal process with Cablevision remains open and the Consortium looks forward to resuming that process at the earliest opportunity.
Process
The Consortium prepared for negotiations by carefully reviewing the cable-related needs of its constituent communities taking into account the costs associated with meeting those needs. The bulk of those cable-related needs were concerned with public, educational and government access and this fact is reflected in each proposed agreement commensurate with the demonstrated need in each community. However, in the conduct of the process other such needs were identified and these also are reflected in the proposed agreement.
State regulations specify certain minimum franchise standards. In particular, Section 895.3 of Public Service Commission cable television, rules states that “No municipality may award or renew an agreement which contains economic or regulatory burdens that when taken as a whole are greater or lesser than those burdens placed upon another cable television franchise operating in the same franchise area.” While much of the evaluation regarding level playing field awaits completion of the Cablevision renewals (whose underlying current franchises have nominally expired but are continued provisionally under temporary operating authorities granted by the PSC), the Consortium has negotiated the proposed agreement with Verizon giving particular attention to this important responsibility.
The Greenburgh area communities are on the cusp of a new competitive marketplace for cable television service. Obviously, the public hearing is a key stage in that process. Within 60 days of the municipality’s approval of the franchise, Verizon is required to file an application for a certificate of confirmation with the PSC. Upon release of an order granting the certificate, Verizon may then begin to provide cable service to the community.
Highlights
Term
Service Obligations
Verizon is required to provide cable television service to all residents within five years. The sole exception to this commitment is a finding of economic infeasibility by the PSC, each and any incident of which must be filed for and demonstrated to the PSC’s satisfaction by Verizon. In most if not all cases, Verizon has or will indicate in its application that it has completed the construction of its Fiber to the Premises (FTTP) network to in excess of 90% of the households in each of the municipalities. Economic redlining is expressly prohibited. The vast majority of the residents in each community will have service available to them almost immediately following PSC certification.
Verizon is required to comply with all Federal and state laws and regulations pertaining to cable television service including the handling of requests for service, complaints and trouble calls, subscriber billing, termination of service for non-payment, system installation and repairs, subscriber credits and fee waivers, protection of subscriber privacy, technical performance and safety of the technical plant. While adequate safeguards exist within federal and state rules and the proposed agreement, it is expected that the imperatives of a competitive marketplace also will ensure the provision of superior customer service. Nonetheless, there is a procedure specified in the proposed agreement to effectively address deficiencies in this regard short of revocation of the franchise.
Franchise Fees
Verizon is required to annually pay, on a quarterly basis, a franchise fee of five percent (5%) based on “all revenue, as determined in accordance with generally accepted accounting principles, which is derived by Franchisee from the operation of the Cable System to provide Cable Service in the Service Area.”
Because the amount of the franchise fee collected from subscribers is included within the definition of gross revenue in the proposed agreement, the effective rate of the franchise fee obligation is 5.25%. Each payment must be accompanied by a report showing in detail the basis for the computation. The proposed agreement anticipates a marketing device known as “bundling” under which voice, internet and video programming (cable) services are offered at a discounted rate if the subscriber agrees to subscribe to all three in a package from the same company. If such bundling occurs, Verizon has agreed not to allocate such discounts “for the purposes of evading the franchise fee”, and to “allocate the bundled discount such that the discount allocated to Cable Service revenues will not exceed the amount which would be allocated to Cable Service revenue on a pro rata basis”.
The municipality may audit any such payment for a period of up to three years after such payment is first made.
Public, Educational and Government Access Support
In addition to agreeing to provide, install and maintain, without cost to the municipality, the equipment for receiving a video signal feed from each municipality’s “master control” facility for distribution to the community at large, Verizon has agreed to provide live interconnection to the “master control” facility from up to three sites in each community.
If the underlying technology changes in such a manner as to render the existing connections inoperable or insufficient, Verizon has agreed to provide suitable upgrades and replacements, also at no charge to the municipality. Verizon also is required under the proposed agreement to make both an “Initial PEG Grant” and “Annual PEG Grants” to be used by the municipalities for capital costs associated with PEG access.
Within sixty (60) days of effective date of the proposed agreement, Verizon will pay to each municipality for the following “Initial PEG Grant”:
Ardsley $24,793
Greenburgh $88,843
Hastings-on-Hudson $61,983
Ardsley $0.57
Greenburgh $0.60
Hastings-on-Hudson $0.75
Other Provisions
The proposed agreement requires Verizon to repair or replace and to restore to serviceable condition any municipal property damaged or destroyed in connection with its provision of cable service and to restore to its pre-existing condition any subscriber property damaged in connection with the installation, repair or disconnection of cable service
Consistent with recent PSC orders, the proposed agreement provides that upon delivery of cable service, Verizon’s FTTP network becomes a “mixed use” facility subject to the PSC’s minimum cable television franchise standards and the police power of the municipality but that the municipality is not granted any broader authority over the construction, placement and operation of the mixed use facilities as a consequence of Verizon’s providing the municipality with cable service.
Free basic cable service will be provided to each public library and educational institution chartered or licensed by the state education department or Board of Regents, as well as other buildings used for municipal purposes.
Under the proposed agreement, the municipality has the right to inspect Verizon’s pertinent books and records and Verizon will be required to maintain certain records for a period of three years.
There are insurance and indemnification requirements running to the benefit of the municipality.
The municipality retains the right to approve or deny transfers, consistent with the limitations imposed by federal law.
Verizon is prohibited from abandoning service, in whole or in part, without the written consent of the municipality.
Equal employment opportunity practices also are ensured under the proposed agreement.


