11/27/1995 Council Packet - Laserfiche WebLink

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the availability of the Universal PEG Service at least four ad avails per week to be chosen at the sole discretion of Meredith. The Commission acknowledges that it has received from its legal counsel an opinion that Universal PEG Service is permitted under applicable federal and state law, and that Meredith need not change other services or rates to bring them into compliance with federal or state law. 4. PROFITS ON SALE. Meredith agrees that, should it sell or transfer any interest in the Cable System (sufficient to require Member Cities' approval pursuant to the Franchise) for a Profit (as defined below) prior to expiration of the current Franchise on September 8, 1998, it shall pass the full amount of any said Profit on to subscribers, up to, and not exceeding the total dollar amount of Relief granted by this Memorandum (as defined below). For any sale or transfer of a partial interest in the Cable System, Profit shall be calculated on a pro rata basis as set forth below. Nothing in this section shall constitute an admission or precedent for future rate regulation or transfer or sales of the Cable System which may occur beyond the initial term of the Franchise. "Profit "shall mean the total Sale Price (including the value of any and all non -monetary benefits or incentives) received for the Cable System by Meredith, less the Acquisition Cost, less an annual rate of return of 9% on the Acquisition Cost (subject to verification that 9% was the average of Meredith's actual cost of money since September 1, 1992 acquisition date), as agreed upon by the parties, less the verifiable capital expenditures made since the acquisition date, less the reasonable costs of sale (attorney's fees, broker's fees, etc.). The parties expressly agree that no allowance or other reductions or considerations in profit calculations shall be made for any past or current accumulated operating deficits. "Relief" shall mean the total of that additional amount per month per subscriber, from April 1, 1995, to December 31, 1995, which Meredith may collect and/or retain under this Memorandum, which was previously termed "PEG Costs" or "Other Franchise Fees" by Meredith, and for which the Commission has previously disputed pass-through or external treatment. 5. SERVICE RATES. Meredith is allowed to charge a basic service rate in the amount being lawfully charged as of the effective date of this Agreement and any subsequent increases lawfully put in place by Meredith, plus all amounts identified herein in Exhibit A as costs which are to be given external treatment, costs which may be passed through, or costs to be borne by the subscribers, except as provided for below, and which shall be identified on the subscriber bill and itemized as a "PEG . Fee". Nothing in this Agreement shall limit other external increases not 'expressly addressed in the Memorandum and other rate adjustment consistent with federal law and regulations.