1. Extension throughout service area. The Operator shall design and construct the cable communications system in such a manner as to pass by every single-family dwelling unit, multifamily dwelling unit, school, and public agency within the service area so long as it is financially and technically feasible. Service shall be extended to all properties where a minimum of ten (10) living units are occupied within a quarter linear mile of cable system. New construction shall be in accordance with an annual schedule accepted and approved by the City.

2. Non-discriminating service. Construction of the network shall be performed by the Operator in such a manner as to ensure that no group of potential subscribers is denied access to services because of the income level of the group or because of the relative cost of extending services into the particular area in which the group resides; provided however, that such extension may be denied based upon the density requirements stated above.

3. Service to public facilities. Upon request, the Operator shall provide one basic service outlet to all City buildings, fire houses, police stations, public or private schools, and libraries which are within the City and are passed by the Cable System. The Cable Service provided shall not be used for commercial purposes, and such outlets shall not be located in areas open to the public. The City shall take reasonable precautions to prevent any use of the Cable system in any manner that results in the inappropriate use thereof or any loss or damage to the Cable System. The City shall hold the Operator harmless from any and all liability or claims arising out of the provision and use of Cable Service required by this subsection. The Operator shall not be required to provide an outlet to such buildings where a non-standard installation is required, unless the City or building owner/occupant agrees to pay the incremental cost of any necessary Cable System extension and/or non-Standard Installation. An additional service outlet shall also be provided in each room or area where television reception is desired in any of the above-mentioned building, provided that the Operator shall be reimbursed its actual cost for labor and materials required in the installation of such service outlets which are additional to the main outlet, but no service or other charge will be made after installation.

4. Educational and governmental channels. The City shall have exclusive right to the use of dedicated channels for educational and governmental purposes, (the “City Access Channels”). The Operator shall make available one channel to be used for educational and governmental cablecast programming. When first-run programming on the first City Access Channel occupies fifty percent of the hours between 11:00 a.m. and 11:00 p.m., for any twelve consecutive weeks, the City may request the use of one additional channel for the same purpose. The additional channel must maintain programming twenty-five percent (25%) of the hours between 11:00 a.m. and 11:00 p.m. for twelve consecutive weeks. If this level of programming is not maintained for any channel, that channel will return to the Operator for its use. The Operator also reserves the right to program the designated City Access Channel (2) during the hours not used by the City or other governmental entities. The channel(s) shall be shared with other municipalities receiving programming from the common headend receive site location. The City shall agree to indemnify, save and hold harmless the Operator from and against any liability resulting from the use of the aforementioned City Access Channel(s) by the City. The City may require as part of a Franchise authorization that the Operator prospectively provide a “Capital Contribution,” paid annually during the remaining term of the Franchise, to be used specifically for educational and governmental access. The City shall give the Operator ninety (90) days’ notice of such a requirement. The amount of the Capital Contribution payable by the Operator to the City shall be designated in the Franchise. The City agrees that all amounts due to the City by the Operator as the Capital Contribution may be added to the price of cable services, prorated monthly, and collected from the Operator’s Subscribers as “external costs,” as such term is used in 47 C.F.R. 76.922. In addition, all amounts paid as the Capital Contribution may be separately stated on Subscriber’s bills as permitted in 47 C.F.R. 76.985. The Capital Contribution will be payable by Operator to the City after;