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1541226v1 1 ORDINANCE NO. AN ORDINANCE AMENDING ORDINMANCE NO. 3237, THE MISSOULA CABLE TELEVISION FRANCHISE ORDINANCE WITH BRESNAN COMMUNICATIONS, LLC WHEREAS, on or about December 1, 2003, the City of Missoula, Montana (“City”) passed and adopted Ordinance No.3237 (“Franchise”) granting a cable television franchise to Bresnan Communications, LLC (“Bresnan”); and WHEREAS, pursuant to Exhibit B paragraph 6 of the Franchise, a fee is to be collected from subscribers to support public, educational and governmental (“PEG”) access in the City (“Access Fee”); and WHEREAS, the City and Bresnan now desire to amend the Franchise to clarify the procedure for collecting the Access Fee from subscribers that reside in multiple dwelling units such as apartments, condominiums and similar structures (“MDUs”); and WHEREAS, neither the City nor Bresnan desire any further modifications or amendments to the Franchise. NOW, THEREFORE, the City of Missoula, Montana hereby ordains as follows: 1. Exhibit B paragraph 6 of the Franchise is hereby amended to add the underscored language set forth below: 6. PEG ACCESS SUPPORT Grantee shall provide City with a capital grant of Fifty Thousand and No/100 Dollars ($50,000), payable upon acceptance of the Franchise. Upon acceptance of this Franchise, Grantee shall also collect, on behalf of City, a per Subscriber fee of twenty-five cents (25¢) per month, solely to fund PEG access related expenditures (hereinafter “Access Fee”). The Access Fee will be automatically adjusted every two years during the term of this Franchise, equal to the cumulative increase in the Consumer Price Index (“CPI”) during the preceding years. Any and all payments by Grantee to City in support of PEG access programming shall not be deemed “Franchise Fees” within the meaning of Section 622 of the Cable Act (47 U.S.C. § 542). In the case of collecting the Access Fee from multiple dwelling units (MDU’s), the “Subscriber” means each lessee, tenant or occupant not the building owner calculated using the city-wide MDU occupancy rate provided by The Missoula Organization of Realtors (“MDU Data”). For the calendar year 2010, the occupancy rate shall be ninety-five percent (95%) and the occupancy rate for the following year and each subsequent year shall be established using the MDU Data from the prior year. The Grantee is not required to collect or remit the Access Fee beyond the calculation provided for in this paragraph for “unoccupied” units. ---PAGE BREAK--- 1541226v1 2 2. All other terms, conditions, and provisions of the Franchise shall remain in effect. Passed and adopted by the City of Missoula, Montana this day of , 2010. CITY OF MISSOULA, MONTANA By: Its: ACCEPTANCE Bresnan Communications, LLC hereby accepts the City of Missoula, Montana Ordinance No. , amending Ordinance No. 3237. Agreed and accepted this day of , 2010. BRESNAN COMMUNICATIONS, LLC By: Its: President