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<br />b. <br /> <br />Locations may add outlets at their own expense, as long as such Installation meets <br />Grantee's standards and approval which shall not be unreasonably withheld. <br />Grantee shall have three (3) months from the date of the City's written request of <br />additional accredited schools or public institutions or relocations to complete <br />construction and Installation. <br /> <br />5. <br /> <br />Compliance with Applicable Law. In accepting this Franchise, the Grantee agrees that <br />the commitments indicated in this Section 6 and the attached Exhibit B are voluntarily <br />entered into. Consistent with Applicable Law, Grantee and City agree that any and all <br />PEG access capital support referenced in this Section 6 and Exhibit B will not be deemed <br />to be "Franchise Fees" within the meaning of Section 622 of the Cable Act (47 U.S.C. <br />§542), and such obligations shall not be deemed to be (i) "payments in kind" or any <br />involuntary payments chargeable against the Franchise Fees to be paid to the City by <br />Grantee pursuant to Section 7 hereof or (ii) part of the Franchise Fees to be paid to City <br />by Grantee pursuant to Section 7 hereof. <br /> <br />6. <br /> <br />Itemization of Expenses. Grantee shall not pass-through to Subscribers, by way ofline <br />itemization, surcharge or addition to an otherwise permissible rate, or charge to City, any <br />amounts relating to any provision of this Franchise unless expressly authorized by <br />Applicable Laws. <br /> <br />7. <br /> <br />Programming. All programming transmitted over PEG Access Channels shall be non- <br />commercial in nature. Grantee and City agree that City, or the producer or distributor of <br />such programming, may include acknowledgments for Persons which sponsor or <br />underwrite access programming in a manner substantially similar to the sponsorship and <br />underwriting information provided on the Public Broadcasting System (PBS) and <br />consistent with Applicable Laws. <br /> <br />SECTION 7 <br />OPERATION AND ADMINISTRATION PROVISIONS <br /> <br />1. <br /> <br />Administration of Franchise. The City or its designee shall have continuing regulatory <br />jurisdiction and supervision over the System and the Grantee's operation under the <br />Franchise to the extent allowed by Applicable Law. Nothing herein shall prevent Grantee <br />from challenging any delegated act or function as an improper delegation of City <br />authority. <br /> <br />2. <br /> <br />Franchise Fee. <br /> <br />a. <br /> <br />During the term of the Franchise, Grantee shall pay City a quarterly Franchise Fee <br />in an amount equal to five percent (5%) of its quarterly Gross Revenues, or such <br />other amounts as are subsequently permitted by federal statute. <br /> <br />b. <br /> <br />Any payments due under this provision shall be payable quarterly. The payment <br />shall be made within thirty (30) days of the end of each quarter together with a <br />report showing the basis for the computation in form and substance substantially <br /> <br />26 <br />