CC_Minutes_1998_0810 - Laserfiche WebLink

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"1 10 98 ~lO\ 15: -16 F.U !4J 007 ?v1.r Dan Wall August 10, 1998 Page S comparable user rate", whichever is lower \Ve arc certam that such a rate will compare favorably in the marketplace. The '"most. fayor~d comp2Iable user rate" is a fair1;.. straight forward concept Any user of the Tn~titutional Network, whether a. public institution 01 commercial customer can be used for comparison purposes. Subject to any appropiiatc confidemiaJity agreements. MediaOne ..."ill make the essential deal points in the actual agreements available IO the City III order to establish terms or comparability. With respect to MediaOne's i1ctual cost plus a 45% rnargll1., we contemplate tllat "actual cost" will be determined based on an appropriate allocation of lht: i.ncremental expenses and capital investments of the Institutional Network upgrade over and above the subscriber network upgrade plus the actual expenses and capital investment associated viltb deployment of any special equipment necessary for a particular application. We would anticipate pro,~dmg the City with a summary statement upon request. The charges \\ill include the 45'\-0 margin specified in Section 7 of the fra.nchise (please see July 2, 1998 letter enclosed) tn addition to t!1e Institutional Network capacity set forth above, r..1ediaOne will put four additional fihers J!l place along the Institutional Net\vork fiber route at MedJaOnt" s cost and expense This asswes that infrastructure materials are in place. Any actual activation of those four additional fibers \\111 be at the expense ofthc City or other public institutions desiring to take advantage ofthatfiber. PERIODIC EVALUATIONS The franchise provides a structure within which, at fu!y time dunng the tenn of the franchise, the City may require evaluation sessions regarding technology, system performance, or any other topics the Ci.ty deems relevant. As part of that process, the City can require MediaOne to undertake good faith efforts to reach agreement on changes and mociifieatI011S to the terms of the francr..isc. MediaOne has appreciated the tradition and history of open communication over the years and looks forvvard to that openness continuing. Nonetheless, the periodic evaluation provisions of1.he franchise provide a structure within which the City can reqUln.: that matters important to the City get addressed It IS important. however, to establish a fifteen year franchise term \l,rith certainty as to its provisions. The fifteen year term allows for an appropriate amortiz.atlon of costs. The certainty of obligations removes disincentives which could cause concerns to the lfivestment or lending conununity. tvlediaOne's .enewal proposal reHected a substantIal investment predicated on a fifteen year Z 122636-1 - \1P3