City, Cable-TV Firm Agree to Settlement

After 10 months of negotiation, the city has reached an agreement with the company that took over its cable-TV franchise.

The City Council on Tuesday night unanimously approved the pact, which calls for the new franchise holder, Continental Cablevision, to give the city a one-time settlement of $50,000.

That amount is for allegedly unpaid franchise fees and a lump-sum payment of the city’s share of future advertising revenue from the cable company.

Continental Cablevision took over the old franchise holder, Copley Colony, in a 1994 corporate merger. Continental subsequently began negotiations with La Palma to assume ownership of the city’s cable franchise.

City officials contended that Continental should pay La Palma $17,000 in allegedly unpaid back fees and $34,000 as the city’s share of expected ad revenue for seven years remaining on the Copley franchise.

Continental and the city ultimately approved a total settlement of $50,000. The franchise-transfer agreement says the settlement does not “constitute an admission by the franchisee or transferee of any wrongdoing or breach of franchise.”