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· The universal PEG tier specified in the MOU is retained and incorporated in the <br /> renewal franchise. <br /> <br />FtLaNCHISE FEES <br /> <br />AT&T will pay a franchise fee of 5% of goss revenues to Andover, Anoka, <br />Champlin and Ramsey. Franchise fee payments will be made to the cities on a <br />quarterly basis. <br /> <br />I <br />I <br />I <br /> <br />VII. <br /> <br />· A_ll mounts paid are subject to audit and recomputation by thc member cities. <br /> <br />PERFORMANCE BOND AND LETTER OF CREDIT <br /> <br />AT&T will post a $100,000 performance bond and file a $25,000 letter 0~' credit with <br />the Commission. These instruments can be used by the cities to ensure that AT&T <br />pays all amounts due and complies with the terms and conditions of the franchise and <br />applicable law. AT&T must replenish the letter of credit whenever it is drawn upon. <br /> <br /> I <br /> <br />'1 <br />I <br /> I <br /> I <br /> I <br /> I <br /> <br />LX. <br /> <br />INSURANCE AND INDElX'INIFICATION <br /> <br />AT&T will indemnify the cities and the commission against all liability and damages <br />arising out of or in connection with the construction, operation, maintenance, repair <br />and removal of the cable system. AT&T will not indernn/fy the member cities and <br />the commission for negligence or misconduct related to public, educational and <br />governmental access programm/ng. <br /> <br />· As part of its indemnification, AT&T will obtain general liability and broadcaster's <br /> insurance that names the member cities and the Commission as additional insureds. <br /> <br />CUSTOMER SERVICE <br /> <br />AT&T will be required to comply with enhanced customer service standards that are <br />based on the standards adopted by the Federal Communications Commission. By <br />way of example, AT&T must operate a 24-hour~ toll-free telephone number that <br />subscribers and non-subscribers can call to inquire about services, to feaster <br />complaints and to make requests.. <br /> <br />Under normal operating conditions, telephone answer time by a customer service <br />representative, including wait time, must not exceed 30 seconds from the time a <br />connection is made. If a call needs to be transferred, the transfer time cannot exceed <br />30 seconds. These standards must be met no less than 90% of the time, under normal <br />operating conditions, measured on a quarterly basis. <br /> <br />AT&T must begin working on service interruptions within 24' hours after a service <br />interruption becomes known, and pursue to conclusion all steps reasonably necessary <br />to correct the interruption. <br /> <br />4 -291- <br /> <br /> <br />