CYPRESS : Audit Finds Cable Firm Shorted City

Copley Colony Cablevision underpaid the city more than $15,000 last year, a city-sponsored audit has revealed.

The audit, conducted jointly by Cypress and the neighboring city of La Palma, found that the cable company failed to pay the city more than $11,000 in advertising revenues and $4,600 in other fees during the past two years.

Under the franchise agreement, Cypress is entitled to a cut of both advertising rates and subscriptions. The money is put back into the general fund and is used to help cover costs of locally generated programing, such as the monthly broadcasts of City Council meetings.

“These are the two areas that are quite typical for cable companies to exclude when giving the revenues to the cities,” said Assistant City Manager Dave Barrett.

In addition to the fees, city officials have also asked the cable operator to reimburse them for the cost of the audit.

Larry Carragher, general manager for Copley, said company attorneys are reviewing the city’s requests. He would not comment on the audit’s findings.

“We are in receipt of the letter (from the city) and our counsel is reviewing it at this time,” Carragher said.

At the request of Diehl, Evans & Co., which conducted the review, the council this week decided to continue the audit to determine whether the reported debt to the city could be greater than anticipated.