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<br />Subscriber’s bills. Payment by Grantee must be separate from and in addition to any <br />Franchise Fee. <br />g. Use of PEG Capital Fee. The City and Grantee agree that the City will <br />expend the PEG Capital Fees solely for capital costs (consistent with GAAP) associated <br />with PEG Access. In consideration for Grantee’s obligation to remit the PEG Capital Fee, <br />the City 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. Within sixty (60) days of <br />written request, the City shall provide Grantee with an annual report of any expenditures <br />of the PEG Access Capital Fee to insure such fees are used for capital costs related to <br />PEG Access. The report shall also demonstrate how the City fulfilled its requirement to <br />provide matching support for PEG Access. Based on the report, the Grantee may send a <br />written notice to the City alleging that the City failed to demonstrate that the PEG Capital <br />Fee was used for capital or that matching PEG Access support was provided. The City <br />shall have thirty (30) days after receipt of the written notice to provide additional <br />information demonstrating compliance with the requirements of this Section. If the <br />Grantee continues to allege that the City has not complied with its obligations herein, the <br />Grantee may provide written notice of its intent to reduce and/or discontinue collecting <br />and remitting the PEG Capital Fee. If the City disputes the Grantee’s actions, it may <br />initiate any enforcement action under the Cable Ordinance it deems appropriate. <br />h. Access Rules. The City may implement rules governing PEG Access <br />Channels and programming. <br />i. Parity of Obligations. The City will impose equivalent PEG Access <br />obligations on any other franchised provider of Cable Service in the City. <br />Section 4.3 Drops and Service to Public Buildings. <br /> <br />a. The Grantee must provide, without charge, monthly Basic Cable Service <br />and Cable Programming Service (excluding pay-per-channel or pay-per-program), one (1) <br />Drop, one (1) outlet, and one (1) Converter of the type and functionality made available to <br />Subscribers (“Complimentary Service”) to the public institutional sites listed in Exhibit A- <br />2 attached. The programming provided by Grantee is not for public display. The City <br />shall hold the Grantee harmless for any copyright, or other penalties, incurred due to <br />improper use of free service. If additional Converters or other customer premises <br />equipment (“CPE”) are required to receive Complimentary Service, Grantee reserves the <br />right to charge the institution the published rate for such CPE consistent with applicable <br />law. <br /> <br />b. The Grantee shall connect such additional public administration buildings <br />as the City may subsequently designate, provided however, that the Grantee shall only be <br />required to pay the cost of the first one hundred and fifty (150) feet of any necessary <br />System construction, and further provided that the City or institution shall pay any <br />additional mutually agreed upon construction cost. The Grantee will have a reasonable <br />time from the designation of additional sites to complete extension. Institutions may add <br />outlets at their own expense. The Grantee shall only be required to provide <br />526220v5 RJV SH255-14 <br />6 <br /> <br />