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MINUTES NORTH SUBURBAN CABLE COMMISSION REGULAR MEETING OCTOBER 5, 1989 PAGE 3 Ms. Joyce Gimmestad of Roseville had a complaint regarding the late fee charges; she cannot understand her bill; the rude treatment that she has received from the company and in addition to the .$2.50 late fee charge an additional $6.00 a month collection fee charge. Ms. Donnelly-Cohen informed the commission of the billing practices of the company. VII. NEGOTIATING COMMITTEE REPORT Chairman Bauer reported that discussions had continued regarding negoti- ations with the company. He stated that discussions had been held throughout the day on October 5, 1989 and a tentative deal had been made. Mr. Bauer then made a presentation using updated overheads as he had done at last months meeting to show where the negotiating committee and the company were in their negotiations. RESPONSIBILITY - Mr. Bauer stated that they still agree that the Access Corporation will take over responsibility for all the access.channels. OPERATING EXPENDITURES - The annual amount for the operating expenditures for the access function would be $450,000.00 escalated on an annual basis according to some functions. He stated that the escalation factor turned out to be the stickiest part of the entire deal. OPERATING ESCALATOR - Mr. Bauer stated that the escalator that was agreed to will range from between 57 - 87 annually or the cost of living which ever is greater. The 57 to 87 was determined based on the gross revenues using a 137 annual increase in gross revenues of a base. If the gross revenues go up 137 then the commission gets their base 57 increase in the operating expense. If the gross revenues increase greater than 137 then you add onto the 57, one-tenth of the amount as excess. If the gross revenues increase 147 or 17 more than 137, then you will add on one-tenth of that or one-tenth of a percent onto the 57. Mr. Bauer further stated that the basis for that was that the company in agreeing to the .57 base had already assumed that their gross revenues were going to increase on the order of 157 on an annual basis. The company also argued that they would not have agreed to the $450,000.00 operating budget if there was some higher amount going to the escalator. Mr. Bauer stated that the company was not very comfortable with tying the escalator to gross revenues in any way. He also stated that he was not real comfortable with the compromise result, but it seemed to be the best that the negoti- ating committee was able to do.