What’s Happening with LMC Negotiations?

by Cindy Goldstein and Kathy Savolt -

Although negotiations between the Village of Mamaroneck and LMC Media began in April, there’s still no agreement.  Since then, LMC Media (LMC) has lobbied the public for support and to pressure the Village of Mamaroneck (VOM) to pay them all of the franchise fees that, under the former structure, were paid to them during the heyday of cable company revenue.  See HERE.

Interim Agreement Not Reached

In a recent phone conversation, Village Manager Kathleen Gill told The Mamaroneck Observer that LMC did not sign the Memorandum of Understanding (MOU) in April.  According to Gill, LMC objected to factual language referencing the more than $1.2 million the Village has provided to LMC Media since mid-2023. 

Also included in the draft MOU was a provision that the VOM would release franchise fees paid to the Village by the cable companies from late 2025 to early 2026 to LMC while negotiations on a contract continued.  A written agreement was required to be reached before June 1, 2026.  Because of the breakdown in talks, those funds have not been released.  See HERE.

The Mamaroneck Observer also reached out to Matt Sullivan, Executive Director of LMC Media to seek answers to several questions. 

We wanted to understand what internal steps LMC had taken to plug its budget gap, since LMC knew these franchise fees from the cable companies were in jeopardy and declining.  Had fundraising efforts increased?  Had there been any cost-cutting?  Would fees be charged to businesses that currently do not pay to use the studio and equipment?  Before we could ask all our questions, Sullivan declined to answer any questions at this time, other than indicating that the parties are close to an agreement.

Gill also said she believed the parties are close to an agreement.

Public Funds for Private Charities

The issue raised here is popping up in other areas of the Village – what is the law regarding when a municipality can give money to a private group or, in this case, a charity? 

The NYS Constitution prohibits a village from giving money or property to any individual, private corporation, or association.  See HERE. Although the language seems clear there are still some questions arising from this prohibition.  The situation is more complicated when a local charity has a loyal and dedicated following.  According to the public statement released by the VOM, “The Village supports LMC Media and recognizes the important role it plays in the community.  However, the Board of Trustees (BOT) and the Village Manager have a fiduciary obligation to monitor the spending of public funds and to ensure that any agreement is consistent with New York State and Village procurement requirements.” See HERE.

There are many local charities that deserve funding so how would a BOT choose which ones to support?  In this case, the VOM is requiring a formal agreement to pay LMC specified amounts for services rendered.  LMC had initially balked at being referred to as a “vendor,” seemingly suggesting that the historic friendly relationship is enough to justify taxpayer support.  See HERE.

Personal Liability for Mismanagement of Taxpayer Funds

If taxpayer funds are inappropriately spent, it could create personal liability for BOT members to repay them, given the fiduciary responsibility of Village officials.  The way to avoid this situation is to only expend taxpayer funds for services rendered pursuant to a vendor agreement.  See HERE. There must be both a public benefit and a contract in place to specify the terms.

Existing Contracts with the Town of Mamaroneck and the Village of Larchmont

Both the Village of Larchmont and the Town of Mamaroneck have executed fee-for-service contracts with LMC since the dissolution of the Cable Board of Control.  An agreement with the VOM is the final piece of a very complicated puzzle with a long history.