Disagreement between Charter and Lakeville Could Cost Customers

Charter customers in Lakeville could see a larger cable bill depending on the outcome of a dispute between the city and the company.

Lakeville and Charter are in a disagreement over the payment of "educational and governmental access programming fees," according to a lawsuit Charter Cable Parners, LLC has filed against the city and reported by KAALtv.

Lakeville says Charter has not paid the fees since the beginning of the franchise period, which began in 1998, according to the lawsuit. The city is charging Charter $943,906.53 for unpaid fees, including 18 percent interest, for the time period between 2006 and July 2013.

Charter says that it collects the fees from customers on behalf of the city. Until recently, Charter did not collect the fees because the city did not require it. Charter claims in the lawsuit that the retroactive payment the city has asked the company to pay is in breach of the franchise agreement.

The company further states that it would collect the more than $900,000 from current customers, according to the lawsuit: "The EG [educational and governmental] Access Fees that the City has demanded from Charter will ultimately be collected from its customers, both as required under the Franchise Agreement and as permitted by federal law." 

Charter began charging its customers a $0.50 access programming fee after receiving a notice from the city in July 2013.

Earlier this month, the city held a public hearing and voted to find Charter in violation of the franchise agreement. Lakeville City Council will discuss the lawsuit in a closed session at the Nov. 18 council meeting.

A link to download the lawsuit is available on KSTP.

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