Agenda - Council - 11/22/2016 - Laserfiche WebLink

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Finally, CenturyLink will be required to indemnify the cities and commission generally, but the company must also enter a separate indemnification agreement covering any claim arising out of the grant of a franchise to CenturyLink. This additional indemnification: includes any claims by the incumbent cable operator against the City that the terms and conditions of this Franchise are less burdensome than the incumbent's franchise, or that this Franchise does not satisfy the requirements of applicable state law(s). Accordingly, the commission and cities are legally protected from claims associated with CenturyLink's "market success"build out obligations. PEG Access In all material respects, CenturyLink has agreed to PEG access requirements that equal or exceed the PEG support provided by Comcast. CenturyLink has agreed to pay PEG support in the amount of 3% of its gross revenues. This arrangement mimics the Comcast's current PEG funding arrangement. Comcast's arrangement is, however, somewhat more complicated. CenturyLink will also provide the same number of PEG channels (7), but will additionally offer such channels in high definition (HD) digital format to the extent the programming is provided in that format. CenturyLink will agree to other appropriate PEG technical quality standards. CenturyLink will also provide fiber connections and facilities to replace or augment I-Net connections previously provided by Comcast, some of which are failing. Franchise Fees CenturyLink will agree to a 5% franchise fee based on language that largely mirrors the language in Comcast's franchise. The definition of "gross revenues" is identical and CenturyLink's franchise will language recently negotiated with Comcast to clarify how franchise fees are calculated where cable service revenues subject to the fee are bundled with telephone or internet access services not subject to the fee at a discount. The language requires that the discount be allocated fairly in proportion to the cost for the services individually. In sum, the franchise terms negotiated with CenturyLink comply with the LPF law. 3. CenturyLink's Qualifications CenturyLink's application includes information addressing the company's financial, technical, and legal qualifications and those of its ultimate corporate parent, CenturyLink, Inc. Chapter 238 does not establish standards for reviewing information submitted in relation to a franchise 6 486014v1 QU210-6