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Memorandum <br /> North Suburban Cable Commission <br /> March 30, 1990 • <br /> Page 2 <br /> E. For capital improvement funding, the company will provide to <br /> the Commission $178,000 upon the effective date of the agreement. <br /> The company will pay $650,000 upon sale of the system or renewal <br /> of the franchise (approximately 1997) . The company will pay the <br /> Commission $50,000 annually after renewal. <br /> F. As operating funds the company will provide $450,000 in 1990, <br /> payable quarterly. This amount will be escalated annually by <br /> the greater of the cost of living or a special escalator tied to <br /> the company's increase in gross revenues whichever is greater. <br /> G. Studio and office space: <br /> The Commission will sublease from the .company the access studios <br /> and office space currently at Lake Owasso Elementary School in <br /> Roseville. -The sublease will be at the preferred rate currently <br /> offered by the school district to the company. The studio <br /> currently at Edgewood Community Center will be moved to Irondale <br /> High School. The company will pay all reasonable costs of <br /> relocating the equipment from Edgewood to Irondale. <br /> H. The company will reimburse the Commission for all of its • <br /> expenses during the. transfer up to $20,000. <br /> I. The company will provide $2,500 to change the logos on the vans <br /> and offices and will provide ad insertion time on the other <br /> cable channels to promote community programming. <br /> J. The Commission will reduce the payment of performance bonds <br /> currently in place to $50,000 naming all 10 cities. The bonds <br /> shall be replenishable so that if any one city draws on them <br /> the bond will be replenished so that $50,000 is available at <br /> all times to each of the other cities. The Commission or any <br /> Member City in its sole discretion may require the amount of <br /> the bond to be increased to up to $250,000. <br /> There are other minor nuances to the transfer but these are the general terms <br /> and conditions for your City Council. I did not get into some facts about the <br /> history of the negotiations but they are in general: <br /> 1. The company asked to do this at the time they bought the system. <br /> The Commission refused to discuss it for 1 year. <br /> 2. The company's first offer was 45c per month per subscriber and no <br /> money for equipment. (That's about $108,000 per year) . <br /> • <br />