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institution not connected to the I -Net may be subsequently designated for <br />MediaOne Express Service (or equivalent) by City. The Company will <br />provide the first five hundred (500) feet or less from the existing Subscriber <br />network at no charge to such institutions. Any such institution located more <br />than five hundred (500) feet shall be connected if such institution agrees to <br />reimburse Grantee for Grantee's actual costs in excess of the cost of the first <br />five hundred (500) feet of such installation. <br />b. Additional subscriber network Drops and/or outlets will be installed at <br />designated institutions by Grantee at the cost of Grantee's time and material. <br />Alternatively, said institution may add outlets at its own expense, as long as <br />such Installation meets Grantee's standards. Grantee shall have three (3) <br />months from the date of City designation of additional institution(s) to <br />complete construction of the Drop and outlet unless weather or other <br />conditions beyond the control of Grantee requires more time. <br />C. To the extent Grantee provides to Subscribers web site hosting Services as <br />part of its Internet access service, Grantee shall provide City and the <br />Commission web site hosting services free of charge. Any other institution <br />may subscribe to web site hosting services at market rates. <br />SECTION 8. <br />OPERATION AND ADMINISTRATION PROVISIONS <br />1. Administration of Franchise. The City Administrator or other designee shall have <br />continuing regulatory jurisdiction and supervision over the System and the Grantee's <br />operation under the Franchise. The City, or its designee, may issue such reasonable <br />rules and regulations concerning the construction, operation and maintenance of the <br />System as are consistent with the provisions of the Franchise and law. <br />2. Delegated Authority. The City may appoint a citizen advisory body or a Joint <br />Powers Commission, or may delegate to any other body or Person authority to <br />administer the Franchise and to monitor the performance of the Grantee pursuant to <br />the Franchise. Grantee shall cooperate with any such delegatee of City. <br />3. Franchise Fee. <br />a. During the term of the Franchise, Grantee shall pay quarterly to City or its <br />delegatee a Franchise Fee in an amount equal to five percent (5%) of its <br />quarterly Gross Revenues, or such other amounts as are subsequently <br />permitted by federal statute. <br />b. Any payments due under this provision shall be payable quarterly. The <br />payment shall be made within thirty (30) days of the end of each of Grantee's <br />25 <br />