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• , <br /> the city. However, should your city adopt such an ordinance,that ordinance will preempt <br /> the franchise in Section 3, construction standards and permitting, and 8.5(c),mapping. In <br /> all other situations, the cable franchise will prevail over conflicting ordinances, except for <br /> those other situations where the city is involved in a lawful exercise of its police power. <br /> 9. Undergrounding. The company will have to put any new construction underground <br /> where all other utility lines are underground, unless the City Council has required <br /> otherwise. In other words,the city has complete authority to require whatever policy it <br /> wishes in this area. Absent such an action,the general rule, above, will apply to the cable <br /> company. <br /> 10. A performance bond of$500,000 will be maintained by the company, and the company <br /> will be fully insured and agrees to defend, hold harmless and indemnify the City <br /> regarding any action of Grantee related to the franchise and any action resulting from <br /> City's administration or enforcement of the franchise. <br /> 11. The company must maintain a$25,000 Letter of Credit from which the city may draw <br /> monies to enforce various penalties and fines delineated in the franchise. <br /> 12. The city retains the authority to review any qualifying transfer of ownership. City further <br /> retains its right to purchase the system for the value of the consideration proposed in such <br /> a transaction. <br /> The other major provisions of the franchise are not substantively changed from the previous <br /> franchise except to bring the document in compliance with current law. <br /> The Commission Executive Director Cor Wilson will present a further summary of the <br /> substantive points of the company proposal including system and channel capacity and <br /> community programming commitments. <br /> If you have any questions please feel free to contact me or Ms. Wilson. We are available to meet <br /> with your city on an individual basis to further explain the proposed franchise. <br /> When all of the exhibits are developed,we will formally transmit the final document to <br /> your cities for recommended consideration and approval. Please do not adopt the enclosed <br /> until you receive the final transmittal from my office. <br /> C:\CABLE\NSCCCC\FRAN-SUM.M#1 <br /> 3 <br />