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David Seykora/ William Wright <br />Notice of Franchise Violations <br />December 12, 2002 <br />Page 3. <br />compliance with the franchise ordinances in current and future reporting and payment <br />periods must be submitted to the Commission by the end of the cure period. <br />If AT &T Broadband fails to effect a cure that is satisfactory to the Commission, the <br />following amount will be withdrawn from the letter of credit as a penalty in accordance <br />with the franchise ordinances: two hundred and fifty dollars ($250) per Member City <br />franchise, per violation, per day for each day, or part thereof, the violation occurs or <br />continues. Since there are two (2) franchise violations discussed in this notice, the total <br />amount that will be withdrawn from the letter of credit is five hundred dollars ($500) per <br />Member City franchise, per day for each day, or part thereof, the violations occur or <br />continue. In addition, if AT &T Broadband does not remit all franchise fees owed within <br />the cure period, the Member Cities will exercise their right to withdraw franchise fees <br />due and payable for the second and third quarters of 2002 from the performance bonds <br />and /or letters of credit provided for in §§ 9.1 and 9.2 of the franchise ordinances. If <br />AT &T Broadband fails to accurately report the gross revenues received from cable <br />modem service /Internet access during the second and third quarters of 2002, the <br />Commission and the Member Cities will be forced to estimate the amounts due under the <br />franchises and collect those amounts, as necessary, from the sources mentioned above. <br />By addressing only the violations listed above, the Commission and the Member Cities <br />are not waiving any other franchise violations that may exist. In addition, the <br />Commission and the Member Cities reserve all other remedies they may have under the <br />franchise ordinances and applicable law. <br />Please call me or Steve Guzzetta, the Commission's attorney, if you have any questions <br />concerning this matter. <br />cc: Communications Commissioners <br />Thomas D. Creighton, Esq. <br />Stephen J. Guzzetta, Esq. <br />David G. Seykora, Esq. <br />John F. Gibbs, Esq. <br />3 <br />Coralie A. Wilson <br />Executive Director <br />