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9 WHEREAS , Section 10.01(A) of the Franchi se provides that Adelphia shall pay to the City a Franchise Fee equal to five percent of its gross revenues; and WHEREAS , Section 10.01(E) of the Franchise provides that in the event any payment is not made on the due date, simple interest on the amount d ue shall accrue from such date at the annual rate of twelve percent; and WHEREAS , on July 7, 2003, at a regularly scheduled City Council meeting, the City Council was provided information from the City staff concerning Adelphia’s failure to pay franchise f ees over the period from January 1, 1999 to December 31, 2001 in an amount of $41,037.00, including late fees and interest through June 4, 2003, as set forth in the June 4, 2003 report of Lewis and Associates (hereinafter the “Lewis Report”), a copy of wh ich is attached as Exhibit 1 and incorporated herein by reference; and WHEREAS , the parties have exchanged substantial correspondence in an effort to resolve this dispute; and WHEREAS , Adelphia disputes certain findings of the Lewis Report but acknowledges that it owes $21,632.00 of the amount, which accounts for unpaid fees related to shopping channel launch revenue adjustments, non - subscriber revenue exclusions, customer coding and related interest on the unpaid fees and late payments; and WHEREAS , Adelp hia agrees that in exchange for the City agreeing to not fully pursue the findings of the Lewis Report, Adelphia agrees to pay the City $21,632.00 and agrees not to pass through any of this payment to subscribers; and WHEREAS , the parties recognize that th is settlement is subject to approval of the United States Bankruptcy Court for the Southern District of New York (hereinafter the “Bankruptcy Court”) and, in the event approval is not granted, the City reserves its right to fully enforce the findings of th e Lewis Report. NOW, THEREFORE , the City Council for the City of Charlottesville, Virginia resolves and makes the following Findings of Fact: 1. Each and every whereas clause is incorporated herein and deemed to be a finding by Council. 2. In consideration of a payment of $21,632.00 by Adelphia to the City and for Adelphia’s agreement (a) not to pass through any of this payment to subscribers either via a line item on subscribers bills or as an external cost on any FCC rate regulation forms and (b) not to deduct any portion of the payment from past, present or future franchise fee payments to be made to the City, the City will waive its right to fully enforce the findings of the Lewis Report. 3. The parties recognize that this settlement is subject to approval of t he Bankruptcy Court and, in the event approval is not granted, the City reserves its right to fully enforce the findings of the Lewis Report and to seek full reimbursement for the $41,037.00 of unpaid franchise fees owed to the City plus accrued interest. 4. This Resolution shall become effective upon the occurrence of both all of the following conditions: (1) The Resolution being passed and adopted by the City Council; and (2) Adelphia’s acceptance of the settlement as described in paragraph 2, above, provided A delphia (a) submits the settlement agreement with any other required documentation for processing to seek approval from the Bankruptcy Court within fifteen (15) days from the date this Resolution is passed and adopted, and (b) makes payment to the City in the full amount of $21,632.00 within twenty - one (21) days from the date this settlement is approved by the Bankruptcy Court; and