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<br />f. Use of PEG Capital Fee. The City and Grantee agree tl1at the City <br />will expend the PEG Capital Fees solely for capital costs (consistent vfith GAAP) <br />associated with PEG Access. Historically the City has provided, on jan annual <br />basis, substantial financial support for PEG Access programming. In <br />consideration for Grantee's obligation to remit the PEG Capital Fe~, the City <br />agrees to provide financial support for PEG Access that is equivalent to the <br />amount of PEG Capital Fees collected and provided to the City. By March 31st of <br />each year, the City shall provide Grantee with an annual rep~rt of any <br />expenditures of the PEG Access Capital Fee to insure such fees are used for <br />capital costs related to PEG Access. The annual report shall also demonstrate <br />how the City fulfilled its requirement to provide matching support for PEG <br />Access. Based on the report, the Grantee may send a written notice to the City <br />alleging that the City failed to demonstrate that the PEG Capital Fee was used <br />for capital or that matching PEG Access support was provided. Th~ City shall <br />have thirty (30) days after receipt of the written notice to provide additional <br />information demonstrating compliance with the requirements of this $ection. If <br />the Grantee continues to allege that the City has not complied with its obligations <br />herein, the Grantee may provide written notice of its intent to reduce and/or <br />discontinue collecting and remitting the PEG Capital Fee. If the City disputes the <br />Grantee's actions, it may initiate any enforcement action under the Cable <br />Ordinance it deems appropriate. <br /> <br />g. Access Rules. The City may implement rules governing PEG <br />Access Channels and programming. <br /> <br />h. Parity of Obligations. The City will impose equivalent PEG Access <br />obligations on any other franchised provider of Cable Service in the ICity to the <br />extent provided by law. <br /> <br />Section 4.3 Drops and Service to Public Buildings. <br /> <br />a. The Grantee must provide monthly Basic Cable Service: and Cable <br />Programming Service (excluding pay-per-channel or pay-per-program) and <br />install one (1) Drop and one (1) outlet without charge to the public Institutional <br />sites listed in Exhibit A attached. The programming provided by Grantee is not <br />for public display. The City shall hold the Grantee harmless for any cppyright, or <br />other penalties, incurred due to improper use of free service. The Gnantee shall <br />not be required to provide Converters. . <br />b. The Grantee must provide a Drop, outlet and Basic Cable Service <br />and Cable. Programming Service to such other accredited public Ischools or <br />public administration buildings as the City may subsequently designatb, provided <br />however, that the Grantee shall only be required to pay the cost of the first one <br />hundred and fifty (150) feet of any necessary System construction. lfhe City or <br />institution shall pay any additional actual construction cost. The Grantee will <br />have a reasonable time from the designation of additional sites t4> complete <br />extension. Additional Drops and/or outlets at institutional locations must be <br />provided by Grantee at the cost of Grantee's time and material. Alternatively, <br />institutions may add outlets at their own expense. <br /> <br />RJV - 25 n02v I <br />SH255-1 <br /> <br />6 <br />