On October 27, 2004, Advocate Communications, Inc., doing business as Advanced Cable Communications ("Advanced") filed suit in the United States District Court, Southern District of Florida against The Town Foundation, Inc., (the "Foundation") and the City of Weston (the "City") seeking monetary damages and judicial declaratory relief related to certain actions taken by the Foundation Board of Directors (the "Board") and the City Commission (the "Commission").

Advanced Cable brought five counts against the Foundation and City, alleging 1.) theft of cable services under federal law; 2.) theft of cable services under state law; 3.) paying monies collected from residents as opposed to paying from all "closed" residential units, and not paying in a timely manner; 4.) clarifying the definition of "Basic Cable"; and 5.) violation of the Franchise Agreement with the City.

The key points of the settlement are as follows:

• The rate for basic cable, 76 channels, charged by Advanced to The Town Foundation customers will be lowered from the current $36.59 per month to $36.09 per month effective January 1, 2006.


• Future rate increases will be capped at 5.5% per year; previously there was no limit on rate increases.


• The Service Agreement will permanently terminate on December 31, 2013. This settlement provision replaces the previously one of automatic renewal every ten years, in perpetuity.


• The total monthly cost billed by The Town Foundation will be reduced as the Foundation will no longer have to fund this litigation. Reductions appeared on bills in late Spring 2006.