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tion; Springfield discussed the matter in a work session without specific action. Interest/penalties <br />(10% specified in the franchise) will continue to accrue if staff moves forward with the debt collection <br />process. <br /> <br />OPTIONS <br />1. The council may approve the proposed motion recommending that binding arbitration be <br /> initiated. This recommendation will be communicated to the MPC at its May 2004 meeting. <br /> <br />2. The council may take no action. The dispute will remain unresolved and debt collection will <br /> remain unfulfilled, unless the MPC takes action to initiate binding arbitration. Both past debt and <br /> future collection of franchise fees based on the disputed revenues could essentially cease. There <br /> may be a legal question whether penalties/interest on the unpaid debt will continue to accrue if the <br /> City voluntarily halts its collection activities. <br /> <br />3. The council may postpone action until a later time. There may be a legal question about whether <br /> penalties/interest on the unpaid debt will continue to accrue if the City voluntarily halts its collection <br /> activities. <br /> <br />STAFF RECOMMENDATION <br />The staff recommendation is that binding arbitration be initiated, as provided in the franchise. <br /> <br />SUGGESTED MOTION <br />Move to approve that binding arbitration be initiated as provided in the franchise, that the decision be <br />relayed to the Metropolitan Policy Committee (MPC) and that arbitration costs be proportionately split <br />between participating jurisdictions. <br /> <br />ATTACHMENTS <br />A. Franchise Fee Disputes Involving Advertising Commissions and Launch Revenue, <br /> Other-City Experiences <br /> <br />Note: Eugene's correspondence file on this issue was placed in the Council Office in March, and kept <br />current. ,4 public viewing file is available at Information Services Division, 8 a.m. - 5 p.m., Monday <br />Friday, at 100 West lOth Ave (Eugene Library), 4thjToor. <br /> <br />FOR MORE INFORMATION <br />Staff Contact: Pam Berrian <br />Telephone: 682-5590 <br />Staff E-Mail: pam.c.berrian~ci, eugene.or.us <br />Prog. Web Site www.ci.eugene.or.us/telecom <br /> <br /> L:\CMO\2004 Council Agendas\M040421\S040421A. doc <br /> <br /> <br />