08/14/1995 Council Packet - Laserfiche WebLink

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U L— 2 5— •3 5 TUE 2 1 = 1 S N ID :ES; C C C P - E+ 2 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. 3. PROFITS ON SAj . 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 Fratichise 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 shad 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, ?nit" shall mean the total Sale Price (including the value of any and all mm -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, kss the verifiable capital expenditures made since the acquisition date, ,fess 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, since July 14, 1994, which Meredith may collect and/or retain under this Memorandum, which was previously termed "PING Costs" or "Other Franchise Fees" by Meredith, and for which the Commission has previottaly disputed pass -t r ugh or external treatment. 4. SERVICEMI'ES. Meredith is allowed to charge a basic service rate of $7.64, 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. The parties agree that Meredith will not include in the PEG fee, now or in the future, any expenses or costs associated with the provision of local origination programming. ost2.915 l:2lpa 5