AgdaPkt 2007-01-08 - Laserfiche WebLink

Browse Search

6.30 Page 18 aftermath of the RCN Corp. bankruptcy. The system construction, however, could be a disruptive activity for local residents, although any such disruption would be short term. It has been fairly clear for some time that RCN no longer had the interest and/or the ability to provide additional system construction throughout the communities where it had obtained agreements. Only five of the nine SAMCA T communities with agreements have any RCN subscribers. If any construction expansion takes place, the subscribers with a choice of providers may well find this to be a significant benefit. E. Reservation of Ri~hts Even if it appears that RCN is in substantial compliance with the terms of the current franchise, there could be some contingent liabilities that are not immediately apparent, such as past underpayment of franchise fees. Since the transfer consent request contains timetables that are primarily for the convenience of the transferor and transferee, if the franchise authorities accommodate these timetables, it should not be expected to waive its rights to achieve compliance. Consequently, a reservation of rights, as part of the transfer consent resolution, appears to be appropriate. This reservation of rights can include the obligation of AstoundJWaveDivision, the transferee, to correct any prior franchise non-compliance. known or unknown, at the time of the transfer. F. Reimbursement of Costs .. Section 25(1) {)fttlE! Belmont, Burtingame, Mi11t>rf3e, Red',Nood City and San Carlos agreements with RCN contains an obligation for each City to have its costs associated with the transfer review reimbursed. Similar obligations may exist in the other agreements as well. Since the transfer is for the benefit of the RCN and Astound, and there is a contractual obligation for reimbursement, no reason is seen for the SAMCA T communities not to have their out-of-pocket costs paid by RCN (the current "Grantor"). 14