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Memorandum <br />Page Three <br /> <br /> 2. Article VI. Section 4.E. (7) would read "(7) as the <br />result of a periodic review or a valuation session, the City <br />may require Grantee to upgrade or modify the System or to <br />provide additional services. Grantee shall comply with any <br />such requirement of the City unless, in the sole opinion of <br />City, technology does not permit it, or Grantee establishes <br />to the satisfaction of City that the cost would prohibit the <br />'implementation of the upgrading, modification or addition of <br /> <br /> services. Failure of Grantee to upgrade or modify the System <br /> or to provide additional services shall be grounds for termina- <br /> tion of the franchise with no penalty whatsoever to City." <br /> <br /> 3. Article VI. Section 5. Franchise renewal will be <br /> changed to allow for an early renewal..of the franchise should <br /> the City decide to use this incentive to encourage techn6iogical <br /> updating of the system by the Grantee. Section 5.A. will be <br /> changed to allow for renewal of the franchise at any time prior <br /> to the expiration of the f~anchise. Section 5.E. will be amended <br /> to read "renewal of this Franchise may be for any length of time <br /> but not more than fifteen years, unless otherwise permitted by <br /> federal or state law, and may be on a year-to-year basis in the <br /> sole discretion of the City." <br /> <br /> It is my opinion that if these changes are made, the cities <br /> may even be in a better position to require the upgrading of <br /> the system than they would have been with a ten-year franchise <br /> <br />DIJNKL£Y AND BENNE'i-'r <br /> <br /> <br />