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<br /> conduct any further franchise fee reviews for calendar years.2009,'2010 mid 2011,
<br /> provided Comcast fully complies with this Settlement Agreement. This waiver and
<br /> release dries not include any issues associated with C'omeast's methodology of passing
<br /> through to subscribers fry nchise fees paid on non-subscriber revenues. T xeept as
<br /> expressly provided in this paragraph,the NSCC and the Member Cities retain all of their
<br /> rights,powers,remedies and defenses under the Franchises and applicable laws,
<br /> regulations,agreements,resolutions,orders,decisions and prmedures,including(but not
<br /> limited to)all rights and powers granted by Section 626 of the Cable Act,47 U.S.C.
<br /> 546,and Chapter 238 ofMinnesota Statutes.
<br /> 3. At the request of the N CC and its advisors,Comcast provided an
<br /> accurate and representative advertising scenario example to Front Range Consulting,Inc.
<br /> This exaMp
<br /> le and summary,which is attached to die February 24,2c112,Chambers
<br /> Certification,accurately sets forth the;typical Glow of revenue and fees for advertising
<br /> transactions. This example and summary describes essentially all of the advertising sales
<br /> transactions entered into by C omeast and its affiliates, including but:not limited,to NCC
<br /> and Comcast Spotlight.. For purposes of this paragraph, the term"affiliates"means any
<br /> person(s)and/or entity(ies)who awn or control,are owned or controlled by or are under
<br /> common ownership or control with Comcast of Minnesota, Inc.
<br /> 4.. Since January 1,2010,Comcast has been calculating franchise fees on
<br /> video/cable service advertising sales on a single-net basis(which means excluding third-
<br /> party agency fees,but including rep fees,affiliate fees,rebates and commissions earned,
<br /> received or derived by affiliates such as NCC and Comcast Spotlight),instead of the,prior
<br /> triple-nct basis(which means ex;ludir►g third-party agency fees,affiliate fees,and NCC
<br /> and Comcast Spotlight rep fees). The information provided by Robbin Pepper to Front
<br /> /range Consulting, ic.tracing advertising sales revamcs frorn their inception to the
<br /> general ledger for the N CC franchise area and reconciling all such revenues to the
<br /> Comeast Viable Communications, LLC"Trend /reports"is complete road accurate,and
<br /> documents Contcast's proposed additional payment of franchise fees on certain
<br /> advertising revenues in calendar year 2,009 for.settlement purposess only,as a result of
<br /> moving to a"single net"basis for calculating gross revenues upon which franchise fees
<br /> are paid to the NSCC's member cities,
<br /> 5. friar to the expiration of the:Franchises,Comcast shall update and operate
<br /> its billing system so as to erasure that persons or entities that subscribe only to non-cable
<br /> service(e.g.,persons who subscribe only to high-speed Internet access,telephone servic=e,
<br /> alarm monitoring,or a combination of services that does not include cable service)are
<br /> not assessed cable service.franchise lees on ancillary charges imposed by Corticast on
<br /> such subscribers, including but not limited to late fees,convenience fees and non-
<br /> sufficient funds(NSF)charges,unless thei.naposition of cable service francliise fees is
<br /> perraitted by applicable laws or regulations. Comcast shall provide the Executive
<br /> Director of the'I SCC with written confirmation of'the solution implemented and specify
<br /> whether refunds were issued if possible.
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