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Did you know that Comcast Cable TV Customers pay a higher Franchise
Fee to the Town of Riverdale Park than Verizon Cable TV Customers.<br>
<br>
I have made numerous complaints to the Mayor and Town Council over
the past several years that Comcast is overcharging residents for
the Town Cable TV Franchise Fee. For over a year, Comcast was
charging a 6.5% Franchise Fee. In March 2012, Comcast lowered the
Franchise Fee to 6 %. <br>
<br>
I recently received an e-mail message form Councilman Jonathan
Ebbeler (Ward 2) . Councilman Ebbeler stated:<br>
<br>
" I was curious myself so I took a look at my latest bill from
Verizon and they are charging exactly 5% based upon my math. That
is not to say that Comcast's math is as accurate but without an
example it is impossible to speculate."<br>
<br>
<br>
When I asked the Mayor and Council to conduct an investigation to
determine why Comcast was overcharging the residents of Riverdale
Park for the franchise fee, I received the below response from Town
Administrator Sara Imhulse:<br>
<br>
"As I understand it, you are currently being charged a 6% franchise
fee by Comcast. The Town's franchise fee for cable is 5%. As I
understand it, the cable companies are allowed by federal law to
recover the franchise fees, so in your case the additional 1%
charged to your account is part of that process. Here is the
language that Comcast sent me when I asked that question:"<br>
<br>
"Comcast is permitted by Federal Law to recoup any franchise fees
that are paid to a municipality from its customers. Franchise fees
on non-subscriber revenues such as advertising, home shopping
revenues are not derived from the customer and vary from year to
year. Comcast updates it franchise fee pass through percentage once
a year based on the prior 12 months actual subscriber and
non-subscriber revenues. Comcast goal is to recover all franchise
fees from subscribers in accordance with federal law. At the end of
the year we compare what was paid to what was collected and end up
with a dollar amount, either over collected or under collected, in
order to recoup or give back we convert that dollar amount into a
percentage so that we can implement that new percentage in the
billing system."<br>
<br>
<br>
I am wondering why would the Town would close this complaint based
on a statement from Comcast without conducting an independent
investigation on it's own. It appears the Town is letting the fox
guard the hen house.<br>
<br>
Did you know that residents of Georgia were also being overcharged
by Comcast on franchise fees. The residents banded together and
filed a class action lawsuit against Comcast. The lawsuit was
settled and Comcast paid out over $500,000.00 . (See below web link
for the news article)<br>
<br>
<br>
<br>
<font color="#3333ff"><u><a class="moz-txt-link-freetext" href="http://www.ajc.com/news/business/comcast-settles-in-suit-over-franchise-fees/nQZS6/">http://www.ajc.com/news/business/comcast-settles-in-suit-over-franchise-fees/nQZS6/</a>
</u><u><br>
</u></font><br>
<br>
<br>
I am still not satisfied that the Town has addressed my complaint
properly. That's why I have asked the Town to allow me to review
the quarterly financial statements that are received with the
Comcast franchise payment (these statements are public records). I
sent an e-mail message to Town Administrator Sara Imhulse on
December 19, 2012 requesting information. I did not receive a
response. I followed up on this request with a formal written
Maryland Public Information Act request on January 1, 2013 to Ms.
Imhulse. I still have not received a response.<br>
<br>
<br>
<div align="center"><big><big>Solution to the Problem</big></big><br>
</div>
<br>
A simple solution to correct the problem of paying a different
franchise fee amount depending on the company you get your cable TV
service from Verizon (5% rate) or Comcast (6% rate) is to have the
Riverdale Park Council can pass a Resolution to specify what the
Cable TV Franchise Fee is charged for all residents. Example of new
language for the Resolution:<br>
<br>
<big>Grantee shall pay to the Town a franchise fee equal to five
percent (5%) of supplying regular subscriber video service.</big><br>
<br>
I am asking everyone to contact the Mayor and their Council person
and demand that a Resolution be passed to give all residents equal
protection from paying a higher franchise fee depending on what
cable TV service that you decided to select.<br>
<br>
<br>
J. Holmes<br>
<br>
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