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FEB18 1995 BooK 5 0— "- $.99 <br />which is basically the net investment in plant to provide service <br />in that area, and determined that they will not be earning the <br />full return that could be justified at the proposed rates. <br />Commissioner Scurlock was concerned about the consistency of <br />the franchise fees, and asked what other counties were doing. <br />Mr. Bolte stated that in most of the franchise areas in <br />which they have worked, the franchise fee has been in the neighbor- <br />hood of 3%; however, most of them do include the paid services <br />revenues and most of them are going to 5%. As he understood it, <br />the County could go to 5% without a waiver. <br />Mr. Smith stated that whether the County could go to 5% <br />under the new law depends precisely on the language included in <br />the franchise. If it states that the franchise fee is 3% and <br />includes language that it can go to 5% with FCC approval, or if <br />it is legal to do so, it will automatically go to 5%; if it <br />states that it is 3% for the term of the franchise, it stays at <br />3%. He felt that in construing the new'law, you simply have to <br />look at the franchise itself and analyze its applicability. <br />Attorney Brandenburg advised that Indian River County does <br />not issue cable franchises any longer and that the cable franchises <br />that were issued before the new franchise ordinance were turned <br />into licenses. He asked, in that case, if the County could raise <br />the fee to 5%. <br />Mr. Smith felt the County might have difficulty if the <br />language in the agreement is for 3%, regardless of whether it is <br />called a license or a franchise. <br />Mr. Crosby noted that any additional franchise fee other <br />than what is called for in the franchise is also in a proposed <br />pass through. <br />Commissioner Wodtke asked if it would be cost effective for <br />the company to provide 25, 35, or 45 channels instead of 20. <br />Mr. Crosby stated that they are proposing to activate 20 <br />channels at the present time, but the equipment, as designed, is <br />capable of going to 54 channels by installing additional equipment. <br />9 <br />