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Cable TV Franchise Audit - Laura Chick

I thought you would be interested in receiving my report on the "Audit of Contract Monitoring of the Information Technology Agency's Cable Franchise Agreements."

Laura Chick
LA City Controller

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Chick Audit Finds City Operating On 18 Year Old Cable TV Agreements
Calls For Immediate Renegotiation of Contracts

FOR IMMEDIATE RELEASE Thursday, May 19, 2005

FOR MORE INFORMATION Rob Wilcox (213) 978-7209

Los Angeles - Finding that the City is operating on 18 year-old cable television agreements, City Controller Laura Chick has called for the immediate renegotiation of the contracts.

"Updated agreements are needed to reflect changes in technology, tap new revenue streams, and reflect the way the cable industry operates today," wrote Chick in a letter to Mayor Jim Hahn, City Attorney Rocky Delgadillo, and all fifteen members of the City Council.

The City of Los Angeles currently administers 14 cable franchises and collects $20 million in annual fees. The Los Angeles City Council, the Board of Information Technology Commissioners, and the Information Technology Agency (ITA) are responsible for negotiating and approving cable franchise agreements.

"Nearly $12 million from the cable franchise fees are deposited directly into the City's General Fund providing precious dollars for police and fire protection, street repair, libraries, and other needed services," said Chick.

The Chick audit also found that the ITA needs to conduct annual reviews of franchise fee payments to ensure that the payments are up-to-date, timely, and accurate.

"Here in the 21st Century, it is time for the City of Los Angeles to negotiate contracts that reflect the changes in the cable industry. The cable franchises are extremely valuable in generating revenue to the City and in providing important services. Never again should we put our management of these public benefits on automatic pilot and just hope for the best. The people of Los Angeles deserve better," said Chick.

Re-elected overwhelmingly in March to a second four year term, Chick has worked diligently to save taxpayer dollars, improve city services, eliminate waste and open up the City's books to greater public scrutiny.

The complete cable television audit can be accessed below:

Click here for Cable TV Audit: Audit of Contract Monitoring of the Information Technology Agency’s Cable Franchise Agreements (pdf format) .

All of the Controller's audits and reports, can be accessed on her web site at www.lacity.org/ctr