WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. April 16, 2007:. Updated 10:14 AM In a Special Meeting of the Common Council this evening, the council approved a landmark Verizon Cable Franchise Agreement calling for a $250,000 grant upfront over the first three years of the agreement and a $1 per subscriber PEG Grant over the first 10 years, which increases 25 cents in the 11th through 15th years of the contract., The contract is worth an estimated $3.4 Million.
Paul Jamison of Cablevision Makes an Offer and warns the council of an ambiguity in the contract they subsequently approved last night.
The approval was made over the objections of Cablevision, whose attorney pointed out as WPCNR did in a previous article that a section of the contract that city attorney Edward Dunphy and city negotiating lawyer Mark Ames cited as assurance the PEG Grant would be paid, stipulated by its language that Verizon would have the right to enter into a lesser contract if the city negotiated a contract for a lesser amount with another cable operator such as Cablevision.
Mr. Dunphy rejected the Cablevision attorney’s contention and interpretation of the key paragraph, when asked by the council to explain how the city PEG grant from Verizon is protected. Dunphy took an attack stance, saying Jamision took the paragraph (that Jamison read),”out of context” and dismissed the interpretation as being “a disservice to us.” Dunphy said the two sentences had nothing to do with each other.
Protection Enough? The “redlined” agreement made available to WPCNR by Rita Malmud showing the new wording in Section 5.4.2 of the new Verizon franchise contract showing the removal of the words “Except as set forth below.” and “The second and third installments of the initial PEG Grant shall not become due and payable until the LFA (city) imposes a commensurate obligation to the obligations contained in this Section 5.4 on all cable service providers in the Service Area.” Mark Ames, the city’s private negotiator, told WPCNR that it was the elimination of these two phrases that assured the city it would receive the PEG and Annual PEG Grants.
Mr. Jamison, theCablevision attorney, echoing a comment in a previous WPCNR report, maintained that the wording in Section 5.4.3 in the above photo, to wit, “In any event, if any new or renewed franchise agreement contains obligations that are lesser in amount or aggregate value than the obligations imposed in this Section 5.4 (including the total amount of the Initial PEG Grant and the sliding scale amounts of the Annual PEG Grant), Franchisee’s (Verizon’s) obligations under Section 5.4 shall be reduced to an equivalent amount.”
Cablevision’s attorney, Paul Jamison said the correct way to structure the agreement between the two parties was to have Cablevision and Verizon each pay $1.7 Million over 15 years, and he said Cablevision was prepared to sign a deal like that.
Mayor Joseph Delfino tried to limit Mr. Jamison’s response, forbidding him to speak any farther, (“I don’t want you to comment” in reponse), chiding Cablevision for refusing to negotiate for a full year previously, and not paying the $100,000 he alleged they owed on their present agreement. The Mayor said he was angered that Cablevision made an offer now. “We’re not negotiating Verizon’s contact here.” However, he let Jamison respond.
After the hearing, Cablevision’s Mr. Jamison told WPCNR the city had refused to negotiate the $100,000 allegedly owed by Cablevision into the new renewal agreement, which Cablevision had been willing to do, Jamison said. Jamison also backed up his original comment about the section 5.4.3, describing the language of the Verizon contract the city approved as “poorly drafted.”
Dennis Power, the councilman, asked for more time to digest the contract, since all changes had not been incorporated into the agreement paperwork before the Council. Power agitated over this issue, prompting Councilman Roach to ask to see all the new language before the vote. Rita Malmud cut a fine line between the two positions, asking for a 15 minute recess to go over the final nits in the new contract. The council ajourned for the fifteen minutes, came back and Rita Malmud said she was satisfied with the changes, and had been assured by counsel Dunphy that all changes the council had requested had been made, and she saw no reason to hold up the approval.
The Mayor had been pushing for the agreement approval in order that the franchise agreement with Verizon be presented to the Public Service Commission of New York State May 16.
Power, too said he was satisfied all was contained in the agreement. The council then voted approval, 7-0. It is now up to the Public Service Commission.
WPCNR asked Mr. Dunphy after the vote what prevents the city being hit for a refund if a more attractive cable agreement is signed before, and why the city did not include the phrase to the effect that the PEG Grant of $250,000 was guaranteed to the city, Dunphy said “it’s in there, call me tomorrow.”
WPCNR asked Mr. Ames, the city negotiator, in light of the fact that Verizon’s right to recover all costs of the franchise agreement from the subscribers is not mandated, why didn’t the city negotiate that part of any PEG agreement could not be recovered from subscribers. Ames said Verizon was adamant on retaining that right.
Kensington a Slam Dunk.
Earlier in the meeting, the council voted approval 7-0 to approve White Plains Kensington LLC as the take-over developer of the former Sunrise Senior Living project on Cromwell Place. The council also approved borrow $19 Million to build the parking garage to serve the city, White Plains Hospital and the Kensington project, moving that project for the next stage which is formal approval of White Plains Hospital Center as partner in the parking garage project.
