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5. carry broadcast stations per FCC rules. <br /> <br />6. Initially deliver a subscriber network of at least 30 channels to <br /> resident subscribers. Provide a syst~ capable of activation of <br /> tw~-way capabilities to subscribers. <br /> <br />7. Provide an audio-video ~ergency alert syst~. <br /> <br />8. Propose fire detection, m~dical alert, and hc~e-security options for <br /> the syst~n. <br /> <br />9. Propose a mechanis~ or entity to reduce the occurrence of false alarms. <br /> Franchisee shall propose its plan for payment of the expense of false <br /> alarms. <br /> <br />10. Designate an emergency channel to be operated by city in time of <br /> emergency at no cost to city. <br /> <br />11. ~rantee their rates and not seek rate increases ~lntil construction <br /> is ccmpleted in the initial service area or until two years after the <br /> franchise is certified by the state, whichever is longer. <br /> <br />12. Pay to each city an annual fee of 5% of all gross revenues derived <br /> fr~ the cable system within the corporate bouD~aries of the city. <br /> The annual fee may be subject to renegotiation at such time as federal <br /> or state authorities no longer regulate the arrount of the fee, but in <br /> no event shall the renegotiated fee be less than 5%. <br /> <br />13. Agree to rate change franchise procedures as outlined in the preliminary <br /> ordinance. The rate increase application nust be supported by statistical <br /> and other proof indicating that th~ existing rate is inadequate and <br /> unreasonable and that the proposed increases are required to enable <br /> franchisee to render service to fulfill its obligation under the franchise <br /> ar~ to derive a reasonable profit. Applicants will define in their <br /> application their understar~ng of reasonable profit or reasonable return <br /> ~n their investment. Applicants are advised to review the proposed star~ards <br /> for rate changes and to review the information which will be required to be <br /> suk~itted in an application for a rate increase, all of which are included in <br /> the proposed preliminary franchise ordinance. <br /> <br /> 14. Agree to an initial franchise term of ten years. <br /> <br /> 15. Agree to a franchise renew-al term of not m~re than ten years or on a <br /> y~ar-to-year basis in the sole discretion of city. <br /> <br /> 16. Provide at least five channels for access use which should include <br /> public, education, government, leased and regional. <br /> <br />m <br /> <br /> <br />