114.08 SYSTEM AND CAPACITY.
   1.   System. The parties understand and agree that Franchisee shall construct a cable system with a signal capacity of 550 MHz according to the construction timetable below. The system shall be operated in accordance with performance standards which meet or exceed FCC regulations.
   2.   Construction Timetable. Franchisee shall increase the signal capacity of the system to 500 MHz within three years after the date of the franchise renewal. Franchisee shall upgrade the channel capacity of the system to 550 MHz within six years after such date.
   3.   Construction Oversight. Franchisee will inspect 100% of all fiber and coaxial cable to insure that it meets the specifications of Chapter 115 and this chapter. The Franchisee shall designate an employee to act as a company representative for responding to public service complaints on a daily basis during the rebuild and provide the City with the person’s name and telephone number.
   4.   Compliance with Applicable Law. In constructing, operating, and maintaining the system, Franchisee shall at all times comply with Chapter 115 and all applicable laws and regulations.
   5.   Equipment Quality. Equipment used for the distribution system, headend and reception facilities shall be of good and durable quality and be serviced and repaired on a regular basis.
   6.   Converters. All programming services exclusively offering adult rated programming shall provide picture and audio scrambling of services not purchased by a specific subscriber.
   7.   Upstream Capacity for City Use. Franchisee shall enter discussions with the City concerning the City’s possible use of up and downstream capacity on the cable system not to exceed one-half (1/2) MHz in either direction, to allow the City to collect data and other signals from subscriber homes or City sites for non-commercial governmental and education purposes only. Franchisee shall cooperate with the City on pilot projects and City-wide implementation, including (but not limited to) City installation and use of equipment which utilizes a larger amount of bandwidth than described above, if necessary, so long as the actual bandwidth utilized by the City is the same or less than that described above. Franchisee shall allow the City to co-locate necessary equipment on the cable system provided said equipment does not interfere with the system’s integrity. The Franchisee may provide such capacity to the City at a rate which, at a maximum, shall be equal to the lowest rate provided to any commercial customer or subsidiary company. Ongoing maintenance charges will be at cost plus a reasonable profit and, at the City’s option, such cost will be paid by the City or a third party.
   8.   Emergency Alert. Franchisee shall provide an all-channel audio-only emergency alert system for use by the City by the end of the second year following the date of the franchise renewal. The emergency alert service shall be upgraded throughout the franchise term as set forth in FCC rules, regulations, or guidelines. The Franchisee shall not be held responsible for any failure of the emergency alert system to operate during any emergency.
   9.   Test Equipment. Throughout the term of the franchise, Franchisee shall have accessible to the City within a 24-hour period adequate test equipment to troubleshoot system problems and monitor system performance as required by this chapter and applicable FCC regulations.
   10.   Ongoing Preventive Maintenance. Franchisee will comply with the preventive maintenance program. It is the Franchisee’s responsibility to make sure that the City is covered and all detected leaks are repaired each quarter.
   11.   Satellite Earth Station. The system configuration shall include earth stations if necessary to ensure the ability to receive signals from operational communications satellites that predominately carry programming services available to cable systems throughout the life of the franchise.
   12.   Standby Power. Franchisee shall provide a suitable standby power-generating capacity at the headend. Franchisee shall maintain standby power system supplies, rated for at least two and one-half (2.5) hours’ duration at all optical node locations in the distribution network.
   13.   Parental Control Devices. Franchise shall provide to subscribers, upon request, parental control devices that allow any channel or channels to be locked out. Such devices shall block both the video and the audio portion of such channels to the extent that both are unintelligible. The cost to subscribers for parental control devices is subject to FCC regulation.
   14.   Performance Testing. Franchisee shall perform all system tests and maintenance procedures as required by and in accordance with the FCC, this chapter and Chapter 115, Franchisee’s standards of good operating practice, and the National Cable Television Association’s test procedure guidelines.
   15.   Technical Standards. The cable communications system permitted to be operated hereunder shall be installed and operated in conformance with Chapter 115, this chapter, and the FCC rules and regulations. Any FCC technical standards or guidelines related to the cable communications system and facilities shall be deemed to be regulations under this chapter. At such time as the FCC does not regulate technical standards, Franchisee will continue to comply with the FCC standards which were in effect on the effective date of the franchise, unless such compliance becomes commercially or technically impracticable.
   16.   Employee Identification. Franchisee shall provide a standard identification document to all employees, including employees of subcontractors, who will be in contact with the public. Such documents shall include a telephone number that can be used to verify identification. In addition, Franchisee shall use its best efforts to clearly identify all field personnel, vehicles, and other major equipment that are operating under the authority of Franchisee.
   17.   Stereo. When commercially practicable, the system will have the capability and shall provide Broadcast Television Systems Committee (BTSC) stereo signals.