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1.2 Definitions. For the purposes of this Franchise, the following terms, phrases, <br /> words, abbreviations and their derivations shall have the meaning given herein. <br /> When not inconsistent with the context, words used in the present tense include <br /> the future tense; words in the plural number include the singular number; words in <br /> the singular number include the plural; and the masculine gender includes the <br /> feminine gender. Unless otherwise expressly stated, words not defined herein or in <br /> the City Code shall be given the meaning set forth in applicable law and, if not <br /> defined therein, the words shall be given their common and ordinary meaning. <br /> The word "shall" is always mandatory and not merely directory. The word "may" <br /> is directory and discretionary and not mandatory. <br /> 1.3 "Actual Cost" means the lowest legally-permissible incremental cost to the Grantee <br /> of materials, capitalized labor, and borrowing necessary to install and construct <br /> fiber-optic lines, coaxial cable and/or equipment. <br /> 1.4 "Affiliate" means any Person who owns or controls, is owned or controlled by, or is <br /> under common ownership or control with the Grantee. <br /> 1.5 `Basic Cable Services" means any service tier which includes the lawful <br /> retransmission of local television broadcast signals and any public, educational, and <br /> governmental access programming required by the Franchise to be carried on the basic <br /> tier. Basic Cable Service as defined herein shall not be inconsistent with 47 U.S.C. § <br /> 543(b)(7). <br /> 1.6 "Cable Service" or "Service" means (1) the one-way transmission to Subscribers <br /> of video programming or other programming services; and (2) Subscriber interaction, <br /> if any, which is required for the selection or use of such video programming or other <br /> programming services. Cable Service shall also include any video programming <br /> service for which a franchise from a local government is required under state law. <br /> 1.7 "Cable System" or "System" means the facilities of the Grantee, which, together <br /> with the facilities of an affiliate of the Grantee, consist of a set of closed <br /> transmission paths and associated signal generation, reception and control <br /> equipment that is designed to provide Cable Service, which includes video <br /> programming and which is provided to multiple Subscribers within the City. A <br /> reference to the System in this Franchise refers to any part of such System including, <br /> without limitation, Set Top Boxes as defined herein. The definition of "Cable <br /> System" or "System" shall not be deemed to circumscribe or limit the valid authority <br /> of the City to regulate or franchise the activities of any other communications <br /> system or provider of communications service to the full extent permitted by law. <br /> "Cable System" or "System" as defined herein shall not be inconsistent with the <br /> definitions set forth in applicable law. Unless otherwise specified, the term shall <br /> refer to the System utilized under this Franchise. <br /> 1.8 "City" means City of Ramsey, Minnesota, a municipal corporation, in the <br /> State of Minnesota, acting by and through its City Council, or its lawfully appointed <br /> designee. <br /> 2 <br /> 489232vI R V QU2I0-6 <br />