DISCLAIMER

 

06-0112R


RESOLUTION ACCEPTING $34,500 IN SETTLEMENT OF UNDERPAID FRANCHISE FEE PAYMENTS MADE BY CHARTER TO THE CITY AND AUTHORIZING EXECUTION OF A SETTLEMENT AGREEMENT AND MUTUAL RELEASE.

BY PRESIDENT REINERT:

     RESOLVED, that the city of Duluth hereby accepts $34,500 in settlement of underpaid franchise fee payments made by Charter to the city payable into Fund 100-030-1324-4071, and further authorizing the proper city officials to execute a settlement agreement and mutual release substantially in the form of that on file in the office of the city clerk as Public Document No. __________.


STATEMENT OF PURPOSE:  As part of the services provided by the city’s consultant, Moss & Barnet conducted a desk review of franchise fee payments made by Charter to the city and concluded that Charter underpaid franchise fees. The $34,500 offered by Charter is within $26 of the number that our consultant believes the city would be able to collect, short of conducting a full-blown audit, the cost of which may outweigh any benefits. The release covers the period from the franchise year 2000 until the date of the settlement agreement. The administration and cable committee recommend acceptance of this amount in settlement of past-due franchise fees.