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JAIL 12 1988 BOOK 70 PAGE 540 Commissioner Eggert wished more clarification on the modification as she believed it is not the same as it was in the last papers given the Board. Director Pinto advised that the only change in what the Board has now is under Item 2 where they have increased the percentage of the franchise fee - the method of payment has been defined more clearly on how they would pay on a quarterly basis. Commissioner Eggert commented that she had thought we went up to 5% almost immediately, and Chairman Scurlock believed what we have now is a phasing -in of it, and as he understood it, part of the reason for that was to make it more palatable and easier for the new company to transition into the service area without losing customers. Director Pinto reported that he had felt there was a very good faith negotiation between us and the cable company, and we felt the phasing -in arrangement was fair to everyone and kept the customer in mind. Chairman Scurlock asked if anyone present wished to be heard. Becky Sims, Divisional Vice President of Falcon Cable Media, came before the Board and advised their concern is not with the transfer, but with the changes in the ordinance. She stressed that the transfer and the increase of franchise fees are two totally unrelated items, which should not be handled at the same time. Ms. Sims emphasized that they signed the agreement under protest and only because it had been made contingent on receiving the transfer. This process has gone on since last summer, and they cannot hold up the deal any longer. Ms. Sims further informed the Board that they have hired a local attorney, and they have contacted their corporate attorneys in Washington, who represent them before the FCC and Congress, and they all agreed these are two separate items. The transfer should go "as is" with the current ordinance, and then they would like to negotiate any changes in the ordinance as a separate item. 12