Charter subscribers may feel brunt of audit finding

After an audit showed that Rafkin Acquisition Partners, locally known as Charter Communications, has underpaid the City of McMinnville when it comes to franchise fees, Charter subscribers could be asked to make up the difference.

The amount the city claims to be underpaid is $21,460 in franchise charges from October 1, 1999 to September 3, 2005. The franchise fee is a long-standing agreement between Charter and the City of McMinnville which allows Charter to operate a cable system within the city, a right-of-way agreement.

As clarified by city legal council, Charter undercharged their customers when it came to the franchise charge throughout that six-year period and as a result underpaid the city when it comes to the franchise fee, an oversight made by Charter.

?It was just something that happened,? said Charter Communications operations manager Sean Hendrix.

The current resolution agreement between Charter and the City of McMinnville regarding the amount owed states, ?Notwithstanding any provision of this Settlement Agreement, the parties hereby acknowledge and agree that any franchise fee payment made pursuant to the Franchise may be recovered by Charter from subscribers….?

As for recouping its loss, Hendrix reports he has seen nothing that would suggest the corporation will do that, just that they have the legal right.

?If in fact the company decides to recoup the loss,? said Hendrix, ?it will be over a several year period.?

Recouping its losses over a several year period will only increase subscriber bills slightly.

The Board of Mayor and Aldermen passed the resolution and Charter has 45 days to pay the full amount.