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<br />Section 3.1 System Capacity. <br /> <br />Grantee will continue to operate a System providing a minimum of at least 75 video <br />programmed Channels throughout the term of this Franchise. The System must have <br />return capability and permit “narrowcasting” as provided in Section 4.2(c). <br /> <br />Section 3.2 Construction Deadline. <br /> <br />Except for Grantee’s System extension obligations pursuant to Section 2.3, System <br />construction is substantially complete. Subject to Section 2.3b above, Grantee will use <br />commercially reasonable efforts to complete any System extension and construction of <br />new facilities for new developments contemporaneous with installation of other utilities. <br />The City shall provide reasonable and timely advance written notice of the location of all <br />new developments to Grantee. <br /> <br />SECTION 4. COMMUNITY SERVICES <br />Section 4.1 Commercial Video Programming. <br /> <br />The Grantee will provide broad categories of video programming, including news, sports <br />and entertainment. <br /> <br />Section 4.2 PEG Access Facilities. <br />a. Access Channels. The Grantee shall continue to dedicate two (2) Channels <br />for public, education, and government access (“PEG Access”) programming. The two (2) <br />PEG Access Channels must be cablecast on the Basic Cable Service tier. All Subscribers <br />who receive Cable Services offered on the System must receive the PEG Access Channels <br />at no additional charge. Only to the extent required by Minn. Stat. §238.084, Subd. 1. (z) <br />and permitted by applicable law, the VHF spectrum must be used for the provision of at <br />least one (1) of the PEG Access Channels. Nothing herein shall diminish the City’s rights <br />to secure additional channels pursuant to Minn. Stat. § 238.084, Subd. 1(z), and <br />applicable FCC regulations. <br />b. Responsibility for PEG Access. The City will operate, administer, and <br />manage PEG Access programming pursuant to this Section 4.2. The City may delegate its <br />PEG Access authority and responsibilities to the Commission. The Grantee acknowledges <br />that the Commission may coordinate the expenditure of Franchise Fees and PEG Capital <br />Fees by and among the Commission’s member municipalities. Nothing herein shall <br />obligate the City to make equipment or channels available for public access programming <br />or to any particular programmer. <br />c. Narrowcast. The System currently allows one (1) PEG Access Channel to <br />be “narrowcast;” i.e. permits a program to be cablecast on such Channel for viewing solely <br />by Subscribers in one City while Subscribers in adjoining cities served by the Grantee and <br />who are members of the Commission simultaneously view other programming on that <br />526220v5 RJV SH255-14 <br />4 <br /> <br />