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SECTION 5 <br />SERVICE PROVISIONS <br />( 1) Rate Regulation. The City reserves the right to regulate rates for Basic Cable <br />Service and any other services offered over the Cable System, to the extent not prohibited by <br />Applicable Laws. <br />(2) Consumer Protection and Customer Service Standards. Grantee shall comply <br />with the consumer protection standards attached hereto as Exhibit D under Normal Operating <br />Conditions. <br />SECTION 6 <br />PUBLIC ACCESS PROVISIONS <br />( 1) Public, Educational and Government Access. City or its designee is hereby <br />designated to operate, administer, promote, and manage public, educational, and governmental <br />programming (hereinafter "PEG Access") for the Cable System established pursuant to this <br />Section 6. Grantee shall have no responsibility whatsoever for PEG Access except as expressly <br />stated in this Section 6. <br />(2) Grantee Support for PEG Usage. In accordance with the provisions of the Cable <br />Act and Minnesota Statutes Section 238.084, Grantee shall provide and make available for PEG <br />Access usage within the Service Area in accordance with Exhibit E hereto. <br />171276v2 <br />(a) PEG Access Facilities shall be operated by the City. <br />(b) Community Access/PEG Programming. Subject to the legal and technical <br />feasibility of same, Grantee shall, upon request from the City provide carriage of the <br />Lake Minnetonka Cable Commission (LMCC) PEG programming originating from the <br />LMCC and the Cities of Wayzata and Medina. Grantee will work with the City to <br />explore the feasibility of broadcasting programming originating from the City in the <br />future. <br />SECTION7 <br />OPERATION AND ADMINISTRATION PROVISIONS <br />(1) Franchise Fee. <br />(a) During the term of the Franchise, Grantee shall pay quarterly to the City a <br />Franchise Fee of five percent (5%) of Gross Revenues or a lower percentage amount as <br />established by the City Council from time to time. Grantee and City may mutually agree <br />to increase the Franchise Fee subject to Applicable Law. In the event Grantee bundles or <br />combines Cable Services (which are subject to the Franchise Fee) with non-Cable <br />Services (which are not subject to the Franchise Fee) so that Subscribers pay a single fee <br />for more than one (1) class of service resulting in a discount on Cable Services, Grantee <br />agrees that for the purpose of calculation of the Franchise Fee, it shall allocate to Cable <br />14 <br />.J <br />92