Loading...
HomeMy WebLinkAboutC-2890City of Arcadia Dominic Lazzaretto City Manager 240 West Huntington Drive Post Office Box 60021 Arcadia, CA 91066 -6021 (626) 574 -5401 (626) 446 -5729 Fax dlazzaretto@ci.arcadia.ca.us www.ci.arcadia.ca.us O ccl -10 C Z � l_ July 3, 2014 SENT CERTIFIED RETURN RECEIPT REQUESTED AND U.S. MAIL ~I/ Dwee Haverkate, P rtt ANA CGe2 CBC Broadband Holdings LLC 2702 Media Center Drive Los Angeles, CA 90065 -1733 Re: Payment of Delinquent Utility User Taxes, Cable Franchise Fees, and PEG Channel Support Fees Dear Mr. Haverkate: As you are aware, CBC Broadband Holdings ( "CBC ") has been delinquent in remitting the utility user tax (UUT) imposed on CBC Broadband's open video system (OVS) customers in Arcadia, and has also been delinquent in remitting the OVS franchise fees and public access (PEG) channel support fees also owed to the City of Arcadia. CBC is responsible for collecting these amounts from its customers and remitting them to the City under applicable provisions of the Arcadia Municipal Code, the Digital Infrastructure and Video Competition Act of 2006 ( "DIVCA ") and other applicable law. This is not the first time that CBC has failed to timely collect and remit these amounts. Rather, CBC has been chronically late for the past few years. In addition, CBC was seriously delinquent in making these payments starting in approximately September 2013 CBC's continued inability to timely collect and remit UUT and franchise and PEG fees is unacceptable. Specifically, CBC has failed to remit UUT and franchise and PEG fees for the period from December 2013 through June 2014. Given the average monthly payment is $8,200.00' (representing UUT $1,200, franchise fees $6,000and PEG fees $1,000), CBC is approximately $57,400 behind in payments. As a courtesy, the City is willing to permit CBC to enter into a payment plan for the owed amounts as set forth in this Letter Agreement. In an attempt to reach a solution short of litigation, CBC shall pay two oldest delinquent months' worth of UUT, franchise fees, PEG fees and interest (as identified below) each month beginning July 2014 and continuing until CBC is current on all owed fees and taxes. For example, in July 2014, CBC shall remit all owed payments for December 2013 and 1 While DIVCA allows CBC to pay franchise and PEG fees quarterly.. CBC has paid proportional shares of these amounts monthly. By agreeing to this Letter Agreement, CBC agrees to pay the owed franchise and PEG fees monthly as set forth in this Letter Agreement. Dave Haverkate July 3, 2014 Page 2 of 2 January 2014. Similarly, in August 2014, CBC shall remit all owed payments for February and March 2014. Based on this timetable of payments, CBC would be up -to -date and back to the regular payment cycle starting January 2015. Please note that all payments shall be accompanied with supporting documentation substantiating the owed amounts. Despite the fact that CBC is subject to significant late charges and interest on these delinquent amounts under applicable law, the City is willing to waive these late charges and interest in exchange for CBC agreeing to pay one - percent annual interest on the principal and interest balance compounded monthly. The City's offer to forego late charges and agree to the above interest amount is an offer to compromise and expressly contingent on CBC's timely payment of all amounts owed to the City. In the event CBC makes a single payment late, the City may recover all applicable late charges and interest that would have been owed but for this Letter Agreement. If you agree with the terms of this Letter Agreement, please so indicate by signing and dating where indicated below. If we do not receive a signed original of the Letter Agreement by Monday, July 14, 2014, we will assume that you are not interested in the City's proposal and the City will have no choice but to commence litigation. An original, executed copy of this Letter Agreement is enclosed for your records. By entering into this Letter Agreement, the City of Arcadia does not waive any right or remedy it may have with respect to noncompliance by CBC Broadband with any obligation it has pursuant to the Arcadia Municipal Code and /or applicable law. CITY Or ARCADIA CBC BROADBAND HOLDINGS LLC Approved by: Reviewed and Accepted by: ominic Lazzaret il;41W K Gave Haverkate City Manager Pfet�N��2 Date: ��3Ti`F Date: J_ ✓L �yr Zvi `�