Cable Competition Arrives In Garden City
By Stephanie Mariel Petrellese

Garden City residents will now have Verizon as a choice when it comes to cable television service after the Garden City Board of Trustees voted 6 to 1 to grant an 11-year video franchise agreement between the company and Village.

Most of the discussion at the public hearing held on the issue at the August 16th meeting centered on whether the Village's negotiating team of Village Administrator Robert Schoelle, Jr. and Village Counsel Gerard Fishberg were able to get the best possible deal.

One of the most vocal critics of the contract was Trustee Thomas Lamberti, who provided the sole dissenting vote. In a statement to The Garden City News after the meeting, Lamberti gave the following explanation: "I voted 'no' on the Verizon contract, not because I am against Verizon, but because I was not satisfied with the terms of their proposed contract.

"At the hearing, it was pointed out that other villages had received greater benefits in their Verizon contracts. The reasons offered for this disparity were unsatisfactory to me. As an example, Cablevision provides free cable service to school and municipal buildings, which it values at over $100,000, but Verizon offers no compensating benefit. Before the Board of Trustees voted, it should have reviewed these issues to be sure that we negotiated the best terms possible."

The free "drops" to municipal buildings and schools became a significant issue during the hearing. The original contract called for Verizon to pay the Village $16,500 instead of providing the service. Fishberg said the Village agreed on the sum since they did not want to duplicate service. Cablevision's franchise agreement with the Village expires in 2010.

An attorney for Cablevision argued that by offering such a low sum in lieu of free service, Verizon's agreement was not on a "level playing field" with Cablevision's contract with the Village. New York State law and Public Service Commission regulations require that any new franchise must have terms that are on a "level playing field" with terms in the current franchise agreement.

In a conciliatory move, Scott Parr, an attorney representing Verizon in the negotiations, offered to mirror Cablevision and provide free service to schools and municipal buildings. Trustees voted to grant the contract as long as it was amended to include the new offer.

Deputy Mayor John Mauk, who was chair of the Board's Cable TV Committee, submitted the following statement to The Garden City News in response to Lamberti's comments:

"I think Trustee Lamberti is mistaken on the particular example he cites as a disparity between what Cablevision provides and what Garden City will get from Verizon in this new franchise agreement. Cablevision currently provides free basic cable TV service to Village schools and municipal buildings. Since it seemed unnecessary to have Verizon provide essentially the same services, Village negotiators had proposed accepting a cash payment from Verizon instead. At the hearing, however, questions were raised - including by me - about the value of the services Cablevision provides, versus the value of the cash payment Verizon was offering. To eliminate any possibility of unfairness, and despite some concern about duplication, the Board decided to have Verizon provide the same free cable services as Cablevision. Verizon agreed.

"I'm more than a little surprised to learn that Trustee Lamberti isn't satisfied with the Board's granting of the franchise agreement last Thursday. The agreement was the product of lengthy negotiations, and I think the end product is consistent with the Board's objective of getting the best possible deal for Village residents. Tom concluded some time ago that the agreement would probably not be significantly improved through further discussion. For several weeks now, he has maintained that negotiations should end so the Board could adopt the agreement. I think he was correct in that assessment. The terms of the agreement are as good overall as the terms of other municipal agreements with Verizon we used for comparison, and in some cases even better. Along with most of the trustees, I think it is a good agreement for the residents."

Ten residents, all in favor of the agreement, also spoke at the public hearing. John Donovan, a Garden City resident and nationally recognized fiber optics expert who retired from Verizon in 1996, marveled at the technology and encouraged trustees to approve the franchise.

Mayor Peter Bee recused himself from attending the hearing and voting since Cablevision is a client of his law firm.

The Board has been criticized by several residents over the past few months for the length of time it has taken both sides to work out an agreement. Mauk said 13 to 14 drafts were written over a 10-and-a-half month period. Verizon and the Village had six meetings and numerous telephone conferences.

Even with the criticism that the process has already taken much too long, Mauk, as well as Lamberti, expressed concern that the Board was voting too quickly. The Board legally had six months from the close of the public hearing to either award or deny the franchise. They could also have chosen to not act at all, which would be considered a denial. Both trustees wanted more time to explore whether or not the Village is getting the best deal.

Trustee Donald Brudie expressed a concern that the Village's contract be as good as or better than other villages. Parr explained that every contract Verizon negotiates with a village differs. For example, the villages that were among the first to negotiate with the company benefited in certain ways because Verizon was concerned about getting their foot in the door. Franchise fees, which cannot exceed five percent and ultimately get paid for by the customer, can vary among villages. Garden City negotiated a 3 percent franchise fee, which is in Cablevision's current agreement with the Village.

Parr also explained that approximately 18 percent of residents, mostly those living in multiple dwellings, will not be able to get the cable service immediately. Under the agreement, Verizon has five years to ensure that all residents have the option.

"This is great news for residents of Garden City, who now will have a new choice for their video entertainment," said Monica Azare, Verizon senior vice president for New York and Connecticut, in a company press release.

In addition to Garden City, Verizon has been granted video franchises on Long Island in the villages of Massapequa Park, Cedarhurst, Laurel Hollow, Lynbrook, Mineola, East Rockaway, Farmingdale, Valley Stream, Freeport, Williston Park, New Hyde Park, Sands Point, Bayville, Old Field, Floral Park and South Floral Park, and in the towns of North Hempstead, Huntington, Smithtown, Hempstead, Oyster Bay and Islip.

As with all local franchise approvals in New York, the agreement between Verizon and Garden City is subject to review by the New York State Public Service Commission.