Agenda - Council - 05/22/2001 - Laserfiche WebLink

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-t16- 1289265v2 Section 2. The Member Cities acknowledge that franchise fees and other revenues derived from the operation of the cable communications system (the "Revenues") shall be pledged to the bonds, obligations or other forms of indebtedness issued to finance the Project. So long as such indebtedness is outstanding any Member City withdrawing from the Commission shall not be entitled to the Revenues. A member may withdraw from the Commission by filing a written notice with the secretary-treasurer by October 15 of any given year giving notice of withdrawal effective at the end of the calendar year; and membership shall continueuntil the effective date of the withdrawal. A notice of withdrawal may be rescinded at any time by a member. If a member withdraws before the dissolution of the Commission, the member shall have no claim against the assets of the Commission, except as provided herein. A member that has withdrawn from the Commission may, if no bonds, obligations or other forms of indebtedness are outstanding upon request, recover up to 1/4 of any equity that exists, as of the withdrawal date, in real property and buildings purchased or constructed with .any bonds, obligations or other indebtedness issued by the Commission. The Commission may if no bonds, obligations or other indebtedness is outstanding, at any time after the withdrawal of a member as provided for herein, initiate a buy out of the ¼ equity interest of the withdrawn member, pursuant to the same terms and conditions as provided in this section. The amount of any equity distributed to a withdrawn member will be paid, without interest, on a payment schedule established by the Commission, provided, however, the term of such payment schedule shall not exceed five (5) years. When calculating an equity repayment schedule, the Commission may deduct the withdrawn member's ¼ share of outstanding indebtedness from the amount of any equity due to the withdrawn member. A withdrawing member shall have no claim to the franchise fee collected on its behalf for the year in which its withdrawal is effective, except for the reimbursement of cable-related expenses for that year. If no bonds, obligations or other forms of indebtedness are outstanding, for the calendar year following withdrawal, and for all subsequent years, the franchise fee calculated upon gross revenues attributable to the system within the withdrawn member shall be paid by Grantee directly to the withdrawn member. 6. This Resolution shall be effective immediately. I I I I I I I ! ! I' I I I I I I, I I