AT&T agrees to pay $95,000 to city for bumping of KSAR
By Kara Chalmers
The legal battle that started in September between Saratoga and AT&T over the city's public-access television station, KSAR, ended March 3 with a $95,000 settlement to the city.
For AT&T, bumping KSAR from its desirable, long-held location at Channel 6 to the less desirable Channel 15, the legal hassle and settlement was apparently worth it. AT&T spokesman Andrew Johnson called the settlement a "win-win" situation.
"Obviously, our primary goal was to ensure this wouldn't become a lengthy legal battle, where the only people who'd become rich were the attorneys," he said.
But, for KSAR station director Tessa McGoldrick, Saratoga came out on top. The city filed the suit on behalf of KSAR. "Considering this was a sort of David and Goliath fight, we're pretty happy we came out with some money for the city's and KSAR's costs incurred from the channel change," she said. "I'm certainly glad we didn't just sit by and let this happen."
AT&T will also run $10,000 worth of advertisements to promote KSAR at its new location on Channel 15. And, if AT&T ever tries to change KSAR's channel again, unless compelled by federal "must carry" laws, Saratoga will get $150,000 in damages.
Since Saratoga and Los Gatos filed the lawsuit jointly against AT&T (formerly TCI cable) that town received an identical settlement. The Los Gatos station, KCAT, was also bumped from its Channel 6 position. Neither KSAR nor KCAT will return to Channel 6.
KSAR announced its settlement after KCAT, since KSAR board members wanted to protect their interests during the legal proceedings between Saratoga and AT&T, McGoldrick said. While the cities were always free to reach separate agreements with the telecommunications giant AT&T, it would not have been in AT&T's interest to settle with one and not the other.
The $95,000 will go to Saratoga, not directly to KSAR. The city will decide what to do with the funds at a future public hearing. At that time, KSAR will have the opportunity to plead its case before the City Council. Legal fees of a little under $20,000 will be paid first, including fees to Saratoga's city attorney, who works under contract, rather than as an in-house attorney, such as Los Gatos' Orry Korb, said Bogosian.
In September, AT&T booted the stations to make room for San Jose's KICU, which is located at Channel 6 in many Bay Area cities. KICU was at Channel 8 before.
Besides being able to reduce advertising by establishing a uniform presence on one channel, Channel 6 is a desirable location for any station, since it is between two networks, McGoldrick said. "[Channel 6] is better than Channel 8," she said. "Being between five and seven is pretty good real estate."
AT&T's reasoning was that under federal law, they had to comply with KICU's wishes. But, attorneys for Saratoga and Los Gatos have said that the "must carry" laws AT&T cited could not apply in this case, since AT&T already had a franchise agreement with KSAR and KCAT that was to run until September 2008. AT&T's agreement with the non-profit KSAR involves no money, McGoldrick said.
McGoldrick said she thinks their case would have held up in court since AT&T technically wasn't free to reach an agreement with KICU, because it already had an agreement with KSAR and KCAT.
McGoldrick said she has confidence the city will use the money to support the public-access station.
"I think that the channel change effects the whole community," said Saratoga Mayor Stan Bogosian, who sits on KSAR's board as the City Council liaison. He said that, out of habit, he turned to Channel 6 for results of the primary election March 7, momentarily forgetting that KSAR is now on Channel 15.
"I think that we'll be able to address some of their needs, like upgrading their station," he said. "And there are some things the City Council would like to see at City Hall, like improving the cablecasting of meetings."
McGoldrick hopes the funds are spent on new equipment, improving service and lowering the costs of the channel change. She said the settlement sum will cover actual costs, such as changing the station's logo on stationery and its van.
"But there are other, intangible types of losses--the loss of viewers because of the channel change," she noted.
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Saratoga, California Since 1955
