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MEMORANDUM <br /> August 9, 1996 <br /> Page 19 <br /> US West has agreed to comply with all existing requirements regarding public education, <br /> government access and will continue current channel designations for public education and <br /> government access channels. <br /> Franchise renewal discussions with a company that apparently will only own the systems <br /> for at most 18 months has caused much concern among the Authorities. US West has indicated <br /> that franchise renewal negotiations will be conducted by the system managers, Kevin Griffin and <br /> Jim Commers as appropriate. Mr. Griffin will report directly to Mr. Randall Coleman, who <br /> reports directly to Mr. Emmett White. US West has responded that it is willing and able through <br /> its local franchise holding entity to conduct renewal negotiations and to accept the attendant <br /> • responsibilities. <br /> US West was asked to explain the rights-of-way initiatives both in its litigation against <br /> Minnesota cities and as to its legislative proposals which may be pending. US West responded <br /> that such inquiries were beyond the Authorities' legal, technical and financial analysis. <br /> While both initiatives certainly reflect upon the corporate "character" of US West, an issue <br /> the Authorities can consider.in this analysis, neither initiative would appear to achieve the level <br /> of a reasonable basis to withhold consent to the merger. <br /> A final point of note is the payment of fees incurred by the Authorities for the purpose of <br /> this approval process. After considerable discussion, the transferring entities have agreed to <br /> reimburse Authorities for reasonable fees, all as delineated in Exhibit 1. <br /> • <br /> 1 <br />