City and Time Warner reach agreement

A $1.3 million settlement has been reached between the city of Rochester and Time Warner Cable over assertions the company was under paying the city its franchise fee.

The settlement was accepted Tuesday by the City Council.

The disputed franchise fee has been in place since 1992 when the city approved an agreement with Greater Rochester Cablevision, Inc., which Time Warner later acquired.

The franchise agreement between the city and Time Warner Cable requires Time Warner Cable to pay a franchise fee based on a percentage of its gross revenues. The city contended that the formula used did not include all of the revenues that should been included. The parties agreed to settle the issue through negotiation.

“I’m happy all parties were finally able to come to the table and reach an agreement,” said Mayor Lovely A. Warren said. “These funds have been long owed to the city and I’m glad my administration was able to reach a fair arrangement moving forward. I’d like to thank our city’s legal team for all their hard work in securing this long awaited settlement.”

Warren was able broach the issue of the franchise fee when Time Warner and the Comcast Corporation approached officials regarding a proposed merger of the two companies. Cities are required to consent to the transaction pursuant to the Federal Communications Commission, in order to continue service.