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4 <br />failure to pay franchise fees over the period from January 1, 1999 to December 31, 2001 <br />in an amount of $80,968 including interest as set forth in the December 23, 2002 report of <br />Lewis and Associates; and <br />WHEREAS <br />, on April 21, 2003, the City Council passed a resolution finding that <br />Ad elphia was in violation of Section 10.01(C) of the Franchise for failure to remit the <br />outstanding franchise fees and auditor’s full costs and expenses; and <br />WHEREAS <br />, the April 21, 2003 resolution and exhibits are incorporated by <br />reference as if set forth fu lly herein; and <br />WHEREAS <br />, on April 29, 2003, Adelphia’s legal counsel sent a letter to the City <br />Attorney’s office advising that Adelphia disputed the resolution and would provide <br />additional information regarding advertising revenues; and <br />WHEREAS <br />, Lewis and Associates received additional information regarding <br />advertising revenues at the end of May 2003, and has revised the audit findings in light of <br />the additional information; and <br />WHEREAS <br />, the revised audit findings from Lewis and Associates indicate that <br />Ade lphia has failed to pay franchise fees over the period from January 1, 1999 to <br />December 31, 2002, in an amount of $41,037.00, including interest through June 4, 2003, <br />as set forth in the June 4, 2003 report of Lewis and Associates, (a copy of which is <br />atta ched as Exhibit A and incorporated herein by reference); and <br />WHEREAS <br />, Section 10.01 (C) of the Franchise provides that where an <br />independent auditor finds that there has been an underpayment, Adelphia shall pay <br />promptly all outstanding franchise fees and i nterest; and <br />WHEREAS <br />, Section 10.01(C) of the Franchise provides that when the City <br />conducts an audit of franchise fee payments and the independent auditor determines that <br />a discrepancy which favors the City in excess of three percent (3%) exists, that the <br />Grantee shall pay the auditor’s full costs and expenses as well as all outstanding franchise <br />fees; and <br />WHEREAS <br />, on June 13, 2003, the City Attorney’s office sent a letter (a copy of <br />which is attached as Exhibit B and incorporated herein by reference) to Adelphia’s legal <br />counsel advising of the adjusted audit findings and requesting (1) that Adelphia pay the <br />outstanding franchise fees and the costs of the audit; and (2) that Adelphia provide a <br />written explanation explaining the underpayment and the steps c urrently being taken to <br />ensure that such underpayment is not ongoing and will not occur in the future; and <br />WHEREAS <br />, as the date of this resolution, Adelphia has not paid the outstanding <br />franchise fees or provided a written explanation as requested by the C ity Attorney’s <br />office; and <br />WHEREAS <br />, pursuant to Section 10.06(A) of the Franchise, if the City finds that <br />Adelphia has violated one or more terms of the Franchise it must provide Adelphia <br />written notice of the violation; and <br />WHEREAS <br />, Section 10.06(A) of th e Franchise provides that Adelphia is to be <br />given twenty (20) days within which to cure the alleged violation or the City may <br />thereafter draw from the security fund required under the Franchise; and <br />WHEREAS <br />, Section 10.05 provides that the applicable penal ty for failure to <br />comply with a provision of the Franchise shall be One Hundred and No/100 Dollars <br />($100.00) per day. <br />NOW, THEREFORE <br /> , the City Council for the City of Charlottesville, Virginia <br />resolves and makes the following Findings of Fact: <br />1. Each and ev ery WHEREAS clause is incorporated herein and deemed to <br />be a finding by Council. <br />