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Charter would need to specify any in-kind contributions that the company believes are deductible <br /> and identify the fair market value of such contributions. <br /> It might be useful to provide an example. The 621 Order contemplates that the fair market value <br /> of complimentary cable service provided to public facilities pursuant to a franchise are included <br /> in franchise fees. But Section 5.3(a) of the member cities' franchises provides that such <br /> complimentary service and certain associated equipment must be provided "free of charge"to <br /> certain public institutions and schools. Thus, a franchise modification would be necessary to <br /> allow the value of complimentary services to be deducted from future franchise fee payments. <br /> In order to initiate a discussion about any such modification, Charter would need to identify the <br /> locations receiving complimentary service and associated equipment along with the company's <br /> calculation of the fair market value of the services and equipment provided at each location. <br /> Until that information is supplied and a franchise modification is agreed upon, no franchise fee <br /> offset or deduction related to complimentary service is allowed. Absent modification(s), such an <br /> offset or deduction would violate the franchises. Any other in-kind contributions that Charter <br /> believes are deductible would need to be addressed in the same way. <br /> Please contact us if you have any questions or need for clarification. We look forward to <br /> communicating with the company about this matter. <br /> Yours truly, <br /> cc: Bob Vose, legal counsel <br />