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W- VON s <br />�- -- <br />n AQ9 <br />0AQ97 <br />TCI. <br />I <br />December 8, 1997 <br />Mr. Len Woodv� <br />Interim City Manager v� <br />City of Colton v` <br />650 N. LaCadena Drive <br />Colton, CA 92324 <br />Dear Mr. Wood: <br />We owe you an apology. As you know, the Fifth Circuit Court decision requires that the <br />Company now include the franchise fees collected from customers in gross revenues <br />for the purpose of calculating franchise fee payments, thus expanding the pool of gross <br />revenues to which we apply theme° Iculation. Therefore the franchise fee payments <br />made to the City of Colton wi increase, crease, despite the fact that the franchise fee payment <br />percentage remains the same. <br />In our original correspondence to you on November 19, 1997, we stated that there will <br />be an "increased franchise fee payment'. and an adjustment to the "franchise fee <br />calculation and amount" on customer billing statements. However, we have just <br />realized that the message to the customers on their December billing statements <br />inaccurately describes the adjustments being made. <br />In that correspondence, we advised you that the December billing message would <br />read: <br />"Please note with your January statement the amount of Franchise Fee will be <br />slightly higher compared to your previous statement. This adjustment increases <br />Franchise Fees from 4% to 4.17% and is due to a recent court ruling which <br />changed how we calculate the Franchise Fee we are required to pay to local <br />Franchising Authorities." <br />We are taking: every measure possible to correct the December billing message on <br />statements mailed during the remainder of the month. That corrected message, is as <br />follows: <br />TCI Cablevision of 1722 Orange Tree Lane <br />-' California, Inc. P.O. Box 710 <br />Redlands. CA 92373 <br />(909)798-3588 <br />An Equal Opportunity Employer <br />