Agenda - Council - 12/12/2000 - Laserfiche WebLink

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-288- SUMiYLqR Y OF _FR~4NCHISE REiYE~VAL TERs¥_[S FOR TIlE CITIES OF ANOKA, C[-fA~F£PLI~¥, RAi¥£SEY AND AND 0 PIER, PUBLIC, EDUCATIONA_L AND GOVERNMENTAL ACCESS SUPPORT/OBLIGATIONS AT&T Broadband ("AT&T") will provide a $200,000 capital support grant to the Quad Cities Cable Communications Commission (the "Commission") within fi~een days a~er the effective date of the renewal franchise, Within ninety days of'the effective date of the renewal franchise, AT&T will provide a $300,000 capital ~ant to the Commission. On the second anniversary of the effective date of the renewal franchise, AT&T wilt provide a $200,000 capital support ~ant (adjusted by the consumer price index) to the Commission. All three grants will be in addition to franchise fees paid to the member cities, an.d wit1 be used to purchase public, educational and governmental access equipment. AT&T will provide an annual $40,000 equipment grant to the Commission. This equipment grant, which combines the existing annual equipment grant and intern gant required under the terms of the December 22, 1994, Memorandum of Understanding ("MOU"), will be increased by the consumer price index on an annual basis. AT&T, as it currently does under the MOU, will continue to provide the Commission with operating support in the mount of 2 ½ % of gross revenues, as defined in the franchise. Tiffs support will be provided on a quarterly basis. We ~ticipate that the mount of the quarterly payments in the year 2000 will total $197,088.00. In the event of a federal or statute statutory change that entirely eliminates AT&T's .obligation to pay a franchise fee to any entity, AT&T will rem/t to the City an amount equal to the prior year's franchise fee as public, educational and governmental ("PEG") access support. Such support will continue for a period of one year during wh/ch time AT&T and the City will engage in good faith negotiations regarding PEG support obligations. AT&T will reserve and dedicate four 6 M_Hz downstream channels on the cable system for public, educational and governmental access use. This is the same number of channels reserved for PEG use under the existing l~anchise. AT&T's system will be designed and constructed to permit narrowcasting of governmental access channels discretely by municipality. AT&T must provide and mainta/n all equipment necessary to accomplish narrowcasting, at no cost to the member cities or the Commission. PEG access facillties will be connected to AT&T's headend via an upgraded, hybr/d fiber<oaxial institutional net-work. As a result, access channel picture quality should I I I I I I I I I I I I I' I I I