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Agency Knocked for Cable TV Pacts

Posted on: Thursday, 6 October 2005, 15:00 CDT

By Daily News, Los Angeles

Oct. 4--Elected leaders criticized the Information Technology Agency on Monday for failing for years to update cable television franchise contracts, saying the existing terms -- dating back to 1987 -- are obsolete.

City Controller Laura Chick, who in May issued a harsh audit calling for the contracts to be immediately renegotiated, told the council's Audits and Governmental Efficiency Committee that she was stunned the contracts haven't been reworked since the issue was raised in 1999.

"The cable industry has advanced so far in technology and the services it gives, and our contracts are not in sync," said Chick, whose audit also identified problems in collecting franchise fees and scrutinizing the cable companies' performance.

"We're missing the boat in terms of both potential dollars the city could be bringing into its general fund and into promoting education and public access programming."

The city administers 15 cable franchises run by five cable operators and collects $20 million a year in fees -- about $12 million of which goes into the city's general fund.

Chick said the city's leaders also bear responsibility for not pressing harder for negotiations, noting that elected officials who appear on public-access shows share a "mutual self-interest" with the companies.

Councilwoman Wendy Greuel, the committee's acting chairwoman, said there was no satisfactory explanation for the delays, adding that failure to renegotiate the contracts has hurt the city and the franchises' 600,000 customers.

"They have been extraordinarily tardy in renegotiating the contracts," Greuel said after the meeting.

ITA General Manager Thera Bradshaw said the mayor and council were responsible for negotiating the contracts, and that those talks are under way. But she acknowledged that the ITA hadn't always provided the necessary support.

"The department lacked leadership for a long period of time, and that hurt the department," said Bradshaw, who took over the agency last year.

Bradshaw said oversight of the cable franchises had been beefed up, and that the staff had collected $7.7 million in past-due fees and identified millions of dollars in savings for consumers.

Mayor Antonio Villaraigosa is working with City Attorney Rocky Delgadillo and Chief Legislative Analyst Gerry Miller to resolve the delays, said his spokesman, Joe Ramallo.

Councilman Tom LaBonge said the agency had taken too long to complete negotiations, which began in July.

"The department has to be held accountable," LaBonge said. "Everybody dragged their feet, including the industry."

Deane Leavenworth, president of the Los Angeles Cable Operators Association, said the industry had been working with the city on the transfer of Adelphi Communications Corp. and Comcast Cable franchises to Time Warner Cable, and would continue to work on the contract renewals, as well.

"We've talked to the city on some of the broader issues, but we're all focused on the transfers right now."

By Beth Barrett and Rick Orlov

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Copyright (c) 2005, Daily News, Los Angeles

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Source: Daily News - Los Angeles, California

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