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11 <br />Table D <br />Cable System Upgrade -Both Cable Systems <br />Projected Precapitalization ofSystem Upgrade <br />5 Year Social Contract <br />Year of <br />Contract Subscribers <br />2% growth rate Monthly Charge <br />per Subscriber Amount To Be Collected <br />1st year -1996 5,933 51.00 571,201.88 <br />Zd year -1997 6,117 52.00 S 146,808.00 <br />3d year -1998 6,244 53.00 S224,784.00 <br />4th year - 1999 6,556 54.00 S314,697.60 <br />5th year - 2000 .6,884 53.00 S413,040.60 <br />5 year total Total amouo~t to be collected for upgrade S 1,170,532.08 <br />Social Contract <br />Upgrade and Capital Commitments <br />According to Paragraph 25 of the Time Warner Social Contract, Time Warner is obligated to <br />provide "...an average of 15 new analog channels to benefit CPST subscribers and the initiation <br />of digital distribution technology, which will expand the capacity ofTime Warner to add <br />programming and improve picture quality." Time Warner agrees that ai least ".«60% of all <br />capital expended in connection with the upgrade.commitment described in the Social Contract <br />will be applied for the benefit of BST and CPST subscrbbers." <br />.Also, Time Warner agrees that "...each cable system will have a minimum bandwidth capacity of <br />550 MHZ, and at least 50%0 of Time Wame~'s subscribers will have access to a minimum <br />bandwidth capacity of 750 MHZ. Ia the 750 MHZ systems, at least 200 MHZ is expected to Lie <br />used for digital distribution." <br />Paragraph. l0 of the Social Contract states that Time Warner must provide each firanchise <br />affected by the Social Contract with a "...progress report outlining the amount of capital <br />investments made, the number of subscribers affected by those investments, improvements in <br />system reliability and service, and projected expenditure and upgrades for the following year..:' <br />within 90 days fallowing the end of the calendar year during which the Social Contract is in <br />effect. <br />Thus, the County can expect a report prior to March 31, 1998, from Time Warner stating exactly <br />what the company has accomplished during the past year re;azding the system upgrade. <br />January l3, l998D:\WPDOCS\T1COGi0RANGEtl24U11998\OR~E--O.RPT <br />