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IC�A•�+3 be provided with interactive communications capabilities. The highest level of basic cable service and cable modem Internet service will be provided to each of these buildings at no charge to the City or school districts. In addition, if the City or the schools wish to purchase additional cable Internet accounts from RCN, they will be provided to the schools and the City at a 20% discount from the current pricing offered. (These accounts currently cost $39.95 per month.) During the term of the franchise, RCN will provide up to four PEG access channels to the City of Redwood City. Initially, finro of these channels will be activated at the effective date of the franchise. These channels will carry the programming from Peninsula N as well as a second channel, which will be used for information, videos, and other materials provided by the City of Redwood City. • Upstream video connections from City selected locations to the system headend will also be permitted. This will allow us to provide either live or taped cablecasting of programming from key city sites around the community. Customer Service Standards — These are based on the standards established by the Federal Communications Commission (FCC) and in some instances exceed the FCC - standards. System design — The proposed system is state-of-the-art and is equal to or better than similar systems being installed nationwide and will accommodate up to 110 channels of analog signals at 860 mhz. Undergrounding of above ground equipment — The "pedestals" (the boxes housing inactive electronics) that are located at every finro to four single family houses will be placed underground. Active electronic devices and back-up power supplies (which serve approximately 150 subscribers each) will be placed above ground. The agreement provides, however, that in the event RCN places active electronic equipment below ground, in other cities, any time five years after this agreement is executed, RCN will be required to place such items underground in Redwood City. Institutional Network (I-Net) — RCN is offering, at a price, an institutional network (I-Net) to cities granting RCN a franchise agreement. An I-Net is the nefinrork infrastructure needed to physically connect city buildings together to form a Wide Area Nefinrork (WAN). The City currently leases lines from Pacific Bell to connect various City buildings together to form our WAN. RCN is offering three I-Net options for the City and has agreed to provide the City with 90 days after the date of this agreement is executed to determine which option, if any, is financially feasible. Findings — State law requires cities that are considering awarding a second cable television franchise to advertise and hold a public hearing concerning the award of such agreement. Moreover, the City Council must make certain findings before granting the second franchise agreement. The findings that must be made are as follows: 1. Whether there will be significant positive or negative impact on the community being served. 3 . . . . .._ . __ . _ .-►- ? _