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2004-181oRDINANcE No. / ¢ / AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING A CONFIDENTIAL SETTLEMENT AGREEMENT WITH MARCUS CABLE ASSOCIATES, L.L.C., D/B/A CHARTER COMMUNICATIONS; AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY TO ACT ON THE CITY'S BEHALF IN EXECUTING ANY AND ALL DOCUMENT8 NECESSARY TO EFFECT SUCH AGREEMENT; REQUESTING CHARTER TO COLLECT A PUBLIC, EDUCATION AND GOVERNMENT (PEG) FEE, AND TO TAKE SUCH OTHER ACTIONS DEEMED NECESSARY TO FINALIZE THE AGREEMENT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on April 19, 2002 the City of Denton, ("City"), notified Marcus Cable Associates, L.L.C. dgo/a Charter Communications, ("Charter"), Charter that the Audit of the methodology used to determine "abnormal operating conditions" during which time Charter is allowed to adjust the number of calls answered under the telephone answering standard required by the federal Cable Act, WHEREAS, the Audit was conducted by C2 Consulting Services, Inc for the period January 1, 2001 through June 30, 2002; and WHEREAS, Charter disagrees with C2's findings in the Customer Service Standard Audit; and WHEREAS, the City and Charter wish to enter into a Confidential Settlement Agreement to settle their dispute relating to the Customer Service Standard Audit. THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitals set forth in the preamble of this ordinance are incorporated by reference, herein. SECTION 2. The Confidential Settlement Agreement, dated June 1, 2004 is hereby approved, and the City Manager is hereby authorized to execute said Agreement and other related documents deemed by the City Manager and the City Attorney to be necessary to conclude the Agreement. SECTION 3. The City Council hereby requests that Charter shall collect, from all Charter cable subscribers within the city limits of Denton, a Public, Education and Government, ("PEG") fee in the monthly amount of fifty cents ($.50) for assisting in financing local PEG operations. The PEG fees shall be paid in accordance with the settlement agreement and shall be set out as a separate line item on all subscriber bills and shall not be deemed a payment for basic services, but a pass-through of an access and government programming fee. SECTION 4. The City Attorney is hereby authorized to provide Charter, through their attorneys, a fully executed copy of this ordinance and a fully executed original of the Confidential Settlement Agreement. SECTION 5. The original executed Confidential Settlement Agreement of June 1, 2004 shall be filed with the City Secretary and marked "Confidential" as required by law. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the/.U~;J~_~day of June, 2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY