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r y Memorandum, Negotiated Renewal Franchise with Meredith Cable Page Two June 25, 1998 2. "Gross Revenue," upon which the company pays a five percent (5%) franchise fee, is expanded not only to include revenue from all Cable Services, as defined above, but also makes clear that fees for such presumed revenue producers as advertising, Internet service, and cable modem service will be captured for the purpose of collecting City revenue. It is anticipated as technology changes occur, the member cities will increase revenues in the areas identified. Other Cable Commissions have not typically been able to negotiate these items into their franchise agreement. 3. The franchise is still "non-exclusive" which is required by law. Therefore, the City can grant franchises to as many competitors as it may wish in order to provide service in the City. 4. The franchise term is for fifteen (15) years. This is standard around the country and is argued by the company to be necessary for them to adequately finance the significant upgrade of the cable system. Some policy makers argue that a shorter term will give the system more flexibility to be upgraded and give the City more leverage in "getting things" from the company. The past franchise was for fifteen (15) years, and the systems were constantly and significantly upgraded, this being in the best interest of the company anyway. The Commission recommends a fifteen (15) year franchise. There is some belief that laws are changing in such a manner that franchising as we now know it will be eliminated. As a result, while historically cable companies have needed the long-term agreements to finance their business operations, many are agreeing to short- term agreements. 5. The franchise is for the corporate boundaries of the City, but the system is really one system for the ten (10) city area, and is required to be interconnected with the systems which border the ten (10) city area. The Commission required this in an attempt to keep the North Suburban System a part of a greater metropolitan communications network, especially since many of the school district boundaries and the county boundaries extend beyond the ten (10) city area. 6. Subscriber and Institutional Network drops must be provided to all institutions listed in Exhibit B. Staff has included the following Arden Hills locations in this document: • City Hall • Maintenance Garage • Ramsey County Library • Mounds View High School • Valentine Hills Elementary School • Bethel College • Lake Johanna Volunteer Fire Department, Station 41 • Army Reserve Center