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Charter-Northborough Contract “ renewal ” Proposed Approach submitted to “ Cable ” committee for review by Dick Swee. Current 5-year contract will end 5 years after Oct 17, 2008. Proposed approach: Use existing contract with modifications
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Charter-Northborough Contract “renewal”Proposed Approach submitted to “Cable” committee for review by Dick Swee • Current 5-year contract will end 5 years after Oct 17, 2008. • Proposed approach: • Use existing contract with modifications • Add modifications as an amendment to the existing contract. • After appropriate Northborough public and M.G.L. town process - Submit proposed amendment language to Charter and have their lawyers review. Charter Contract Amendment Items for "Cable" committee discussion
Charter Contract Amendment Items • Extend current contract for 5 more years –makes it a 10 year contract with 5 years already “gone”. • Payment Changes – to 5% + 20% funding floor • Senior & Handicapped discount changes – no means test • School, library, senior center internet for free • PEG channels location – must be in Basic Service • I-NET maintenance free & incorporate Data Services Contract • Capital Equipment funding with eye for future Charter Contract Amendment Items for "Cable" committee discussion
Extend current contract for 5 more years • Change section 15.12 to new effective date • Section 2.2 already states the contract is for 5 years. Keep as is. Charter Contract Amendment Items for "Cable" committee discussion
Payment Changes 1- to 5% from 3%2- Funding floor of 20% • Replace Section 13.4(a) with the following language, and delete Exhibit 13.4 (13.4 deleted in recent amendment). • 13.4 (a) Licensee shall provide payments to the Town or its designee to be used to support ongoing operations of PEG access programming (the “PEG Access Support”). Such payment shall be used by the Town or its designee solely for personnel, operating and other related expenses incurred in connection with PEG access programming operations. The PEG Access Support provided by Licensee hereunder shall be five percent (5%) of Licensee’s annual Gross Revenues. Each payment made pursuant to this Section 5.4(b) shall be accompanied by a statement certified by a duly authorized representative of Licensee documenting, in reasonable detail, the basis for the computation. It is provided, however, that in any future year, if Licensee’s total franchise fee payments exceed five percent (5%) of Licensee’s Gross Annual Revenues, such payments shall be reduced proportionately in order that they not exceed the 5% limit set out under federal law. The foregoing five percent (5%) cap shall apply to the annual aggregate of annual payments for the PEG Access as required under this paragraph and payments to the Issuing Authority and State pursuant to M.G.L. c.166A, s.9, and the intent hereof is to codify the Cable Act 5% cap on payments within the Cable Act definition of subject franchise fees; however, payments for PEG Access equipment, facilities and capital payable under Section 5.5 shall not be counted toward said 5% cap. • Licensee Payments cannot drop in any month by more than 20% from the peak year amount of ___________. • Add the following to section 10.1: • 10.1 (d) Licensee Payments cannot drop in any month by more than 20% from the peak year amount of ___________. Charter Contract Amendment Items for "Cable" committee discussion
Senior and Handicapped discount • Change Section 9.3 (a ) to new wording as fiollows: • Qualified Subscribers will receive Senior Citizen or Handicapped Citizen discounts. • Old wording was: • (a) Current Subscribers receiving a Senior Citizen or Handicapped Citizen Discount as of the Execution Date of this Renewal License shall continue, throughout the term of this License, to receive the same discount previously provided or at their option, the discount set forth in subsection (b), the following notwithstanding. • Change section 9.3 (c ) to new wording as follows: • (c) To be eligible for senior citizen discount, a resident must meet the following criteria: sixty-five (65) years of age or older and head of household • Old wording was: • (c) To be eligible, a resident must meet the following criteria: sixty-five (65) years of age or older and head of household receiving one of the following: (i) Supplemental Security Income (SSI); (ii) Medicaid; (iii) Veterans’ Services Benefits; (iv) the Town’s income-based senior citizen real estate tax abatement, if any, pursuant to applicable law; or (v) any other suitable criteria that the Licensee and the Issuing Authority mutually agreed upon. • Eliminate section 9.3 (f) as not necessary Charter Contract Amendment Items for "Cable" committee discussion
Free Internet Service to Town Buildings • Insert new section 13.1 (d) • 13.1 (d) Licensee shall provide free Internet access to all town public buildings at 100 Mbits/sec or higher including: • Town hall • Police and fire stations • DPW headquarters • Public access studio • All public school buildings • Library • Senior Center Charter Contract Amendment Items for "Cable" committee discussion
PEG channels location • Add section 8.12(d) • 8.12 (d) PEG channels must be located in channels that are part of subscriber’s basic service. Charter Contract Amendment Items for "Cable" committee discussion
I-NET maintenance free & eliminate separate data contract • Eliminate fee identified in separate contract called “Data Services Agreement” dated Oct 17, 2008 and running for 60 months. Current cost is $200/month for 6 sites = $1,200/month or $14,400/year. • Eliminate separate Data Services Agreement dated 12/8/08 and incorporate in this Charter contract renewal amendment. • Add a section 15.13 • Section 15.13 This section replaces the previously separate Data Services agreement. I-Net service will be provided at no cost to the town. Monthly operating and service charges are eliminated. Northborough sites connected via I-NET are: • Town Hall • Police Department • D.P.W. • Library • Fire Department • Senior Center Charter Contract Amendment Items for "Cable" committee discussion
Capital Equipment Fund for future • Needs discussion. • Currently there is $.50 per subscriber in contract. Charter Contract Amendment Items for "Cable" committee discussion