LOS ANGELES — As much as $50 million could be freed up for the City of Los Angeles’ General Fund over the next 15 years due to a settlement of a lawsuit brought by Los Angeles City Attorney Mike Feuer between the City and Time Warner Cable.
“This settlement will save tens of millions of dollars for the General Fund,” said Feuer. “This money will pay for police officers, firefighters, street paving, tree trimming and more.”
“It’s a win for the city and a win for residents,” said Councilmember Paul Krekorian, chair of the Budget and Finance Committee. “By securing this settlement, the city is receiving a substantial payment into the General Fund, and saving taxpayers millions of dollars for years into the future. It will allow us to improve our fiscal health and enhance critical services in neighborhoods across Los Angeles. I applaud the City Attorney for aggressively pursuing this lawsuit and working with the City Council to reach a favorable settlement of the city’s claims.”
Specifically, Time Warner has agreed to the immediate transfer of $5.2 million - held in dispute by the City for the past five years - to the City’s General Fund. This is money that Time Warner paid under protest to the City and was seeking to have returned through its counterclaim. Further, Time Warner has agreed not to challenge, contest or offset future fee payments against the City’s use and expenditure of public access (PEG) fees paid by Time Warner. This unique agreement between the City and Time Warner will allow the City to utilize TWC PEG fee monies to support and even expand upon the City’s existing public access operations, which are broadcast on Channel 35 and Channel 36. In making these PEG monies available for public access services that are currently paid for by the General Fund, the agreement saves the City’s General Fund tens of millions of dollars over the term of the agreement.
Feuer sued Time Warner in March of 2014 for $9.7 million in unpaid fees. In addition to the benefit for the City’s General Fund the settlement ends Time Warner’s countersuit against the City.
Read the Settlement Agreement