Agenda - Council - 04/14/1981 - Laserfiche WebLink

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K. ImIiALQUALIFI~TI~S Evidence must be presented to assure the cities that the applicant cc~plies with the applicable rules, regulations and statutes of the FCC, the State of Minnesota, and the Minnesota C~hle C~u~nications Board regarding ownership am~ control of regulated franchises and businesses. Applicant will, of course, be required to cu~ly with any future changes in the above mentioned legal star~rds. L. FINANCIAL PLAN PRO FOPiMA An important feature of the application is an adequate d~onstration the financial capacity to perform in accordance with the ordinance, this RFP and the applicant's proposal. Failure to provide the detailed pro forma requested may be interpreted by the City as evidence that the applicant is not properly qualified to recieve a grant of the franchise. The pro forma data sut~aitted should include plans and terms for debt and equity participation, terms of local ownership participation (if any), financial goals, as well as financial projections and assumptions. Cu~lete detail is required pertaining to equity participation of local ownership and the equity of lenders, now and envisioned for the future. Ail understandings for equity participation are to be provided in detail, whether oral or written, and if equity is provided by the c~t~any in exchange for services, the extent and nature of the services are to be detailed. Tiered-service structures, if offered, must be factored into the revenue projections. ~equate documentation of the applicant's assumptions and research methods must be provided so that a fair analysis can be made of the projections. For purposes of the financial pro forma, year one begins on the date the franchise is certified by the state. The rates initially proposed by t/~ applicant must be substantiated in the pro forma statements by use of realistic levels of penetration. The cities intend to regulate all rates and applicants rmast agree to such reasonable regulation (as elaborated upon in the prelim/nary franchise) as a condition precedent to the cities' entering into a contractual relationship with the cable cu,l~any. Applicants shall indicate projected increases in the pro forrna projections. An average annual inflation rate of 9 percent (9%) Shall be used by all applicants ~in preparing financial projections. N. DEMONw£F~A.~o EXPF~ IN OF~md~TING A CARI.F~ CC~MUNICATIONS SYSTEM Information will be solicited concerning the applicant's cable television franchises in other cities. This information will be used by the cities to in~re into the applicant's experience in other cc~mmities in which franchises are held. e