Article 6. PUBLIC EDUCATIONAL AND GOVERNMENTAL ACCESS OR "PEG ACCESS"  

1.

PEG and Leased Access Channels. Grantee shall, to the extent required in this Franchise and subject to applicable law, offer to each of its Subscribers who receive all or any part of the Cable Services offered on the System, reception on one specially designated public access Channel, one specially designated local educational access Channel, one specially designated local government access Channel and one specially designated leased access Channel available for use by the general public on a first-come, non-discriminatory basis. If the Grantee provides only alarm system services or only data transmission services for computer operated functions to certain Subscribers, the Grantee need not provide the Channels required by this section to such Subscribers. The VHF spectrum shall be used for at least one (1) of the specially designated noncommercial public access Channels required. No charges shall be made for Channel time or playback of prerecorded programming on at least one (1) of the specially designated noncommercial PEG Access Channels. However, personnel, equipment and production costs may be assessed for live studio presentations exceeding five (5) minutes in length. Charges for such production costs and any fees for use of other PEG Access Channels shall be consistent with the goal of affording the public a low cost means of PEG Access.

2.

Additional Channels. Whenever the Channels required by section 6.1 of this Franchise are in use during eighty percent (80%) of the weekdays (Monday-Friday), for eighty percent (80%) of the time during any consecutive three (3) hour period for six (6) consecutive weeks running, and there is demand for use of an additional Channel for the same purposes, Grantee shall, after written request of the Grantor, have six (6) months in which to provide a new specifically designated PEG Access Channel for the same purpose, provided the provision of such additional Channel(s) shall not require the Cable System to install Converters.

3.

Unused Channels. If demand for use of the Channels required in Section 6.1 does not warrant activation of all such Channels, such programming may be combined on one or more Channels. To the extent time is available such access Channels may also be used for other broadcast and nonbroadcast services, provided that such services are subject to immediate displacement if there is demand to use the Channel for its specially designated purpose under this Franchise.

4.

Community Access Corporation or "CAC". Grantor may delegate to the CAC, as provided for in this Franchise, such authority and responsibility as it deems in the best interests of Cities. The CAC shall be accountable to the Grantor and shall have at least the following functions:

A.

Responsibility for program production and management of the PEG Access and the Local Origination Programming Channels required under this Franchise;

B.

To assure that these Channels are made available to all Residents of the Cities on a non-discriminatory, first-come first-serve basis;

C.

To assure that all PEG Access and Local Origination Programming decisions comply with law;

D.

To devise, establish and administer all rules, regulations and procedures pertaining to the use and scheduling of these PEG Access and Local Origination Programming Channels required under this Franchise;

E.

To prepare such regular or special reports as may be required or desirable;

F.

To make all purchases of materials and equipment that may be required provided that the CAC obtains input from Grantee as to compatibility with the Cable System.

G.

To develop additional sources of funding, such as ad revenue from Local Origination Programming Channels, foundations, federal or state grants, to further community programming;

H.

To perform such other functions relevant to the PEG Access and Local Origination Programming Channels as may be appropriate.

5.

Participation in CAC by City after Withdrawal from Commission. Upon withdrawal from the Commission, any withdrawing City has the option of continuing participation in the CAC. To continue participation in the CAC, a withdrawing City shall contribute its pro-rata share of the costs of the CAC as determined by the Board of Directors of the CAC. In the event a withdrawing City elects not to participate in and contribute to the CAC, such withdrawing City shall forfeit its membership and right to assets realized or unrealized including gifts, grants, and surplus of the CAC.

6.

Grantee Support for Local Programming. The CAC shall operate and manage existing Local Origination Programming, PEG Access requirements, functions, and responsibilities related to this Franchise. Grantee shall provide the following additional support for PEG Access and Local Origination Programming:

A.

Reservation, dedication, and use of all PEG Access Channels required by this Franchise.

B.

Grantee shall provide a PEG Access capital grant to Grantor or its designee in the form of:

(1)

Payment to the Commission of a $1.2 million capital grant to expand the Brooklyn Park studio as follows:

and

(2)

Grantee shall collect payment of a sixty-four cents ($.64) per month per Subscriber ongoing pass-through local programming capital grant fee starting on the Effective Date to be used by Grantor for the purchase of equipment and facilities. The ongoing pass-through local programming capital grant fee commitment set forth in this subsection shall be increased by three percent (3%) per year commencing on January 1, 1998. Payments pursuant to this subsection shall be payable monthly no later than the twenty-fifth (25th) day of the month. The support level for a given month shall be calculated based upon the average Subscribers for the month ending two (2) months prior to the given month.

7.

Regional Channel 6. The standard VHF Channel 6 shall remain designated for uniform regional channel usage as required in Minnesota Statutes section 238.43.

8.

Reservation of Channels.

A.

Grantee shall continue to provide eight (8) Channels for PEG Access (four (4) of which shall be the specially designated access Channels required by section 6.1 of this Franchise) and Local Origination Programming (not including Regional Channel 6). Grantee shall provide and maintain its System so as to transmit high quality signals on PEG Access and Local Origination Programming Channels.

B.

Upon six (6) months advanced written request by Grantor, and after the completion of the System Upgrade pursuant to Article 5 of this Franchise, Grantee shall provide up to three (3) additional PEG Access or Local Origination Programming Channels.

C.

Grantor may request the dedication and activation of two (2) additional PEG Access or Local Origination Channels, whenever all of the PEG Access or Local Origination Programming Channels required by sections 6.8(A) and (B) of this Franchise are in use during eighty percent (80%) of the weekdays (Monday-Friday), for eighty percent (80%) of the time during any consecutive three (3) hour period for six (6) consecutive weeks running, and there is demand for use of an additional Channel for the same purposes. Grantee shall, after written request of the Grantor, have six (6) months in which to provide a new specifically designated PEG Access or Local Origination Programming Channel. The use of repeat programming in excess of thirty percent (30%) of the amount of original programming on the existing PEG Access or Local Origination Programming Channels, as well as text or character-generated programming shall not be considered a "use" for the purposes of this subparagraph C.

9.

Access Channel Designations. Grantee acknowledges and agrees that on the Effective Date, the PEG Access and Local Origination Programming Channels activated and used by the Grantor have the following Channel designations:

A.

Channels 12 and 34 - Local Origination Programming

B.

Channels 35-36 - Non-commercial public access programming

C.

Channel 37 - Government access programming

D.

Channel 38 - Shared educational access programming between North Hennepin Community College, North Hennepin Technical College, and Hennepin County Library.

E.

Channel 39 - Shared educational access programming between Robbinsdale and Wayzata School Districts.

F.

Channel 40 - Educational access for Osseo School District.

G.

Channels 41-45 shall be made available to Grantee pursuant to section 6.8 of this Franchise.

Grantee may change the above referenced PEG Access and Local Origination Programming Channel designations once without Grantor's approval during the term of this Franchise for the purpose of facilitating a uniform Channel line-up for the Twin Cities metropolitan area, which specifically includes the City of Minneapolis. Otherwise, Grantee shall not change the above referenced Channel designations without the prior approval of the Grantor, as long as the audio and video signals for all of the above described programming are transmitted in analogue over the Cable System.

10.

PEG Access Rules and Procedures. The use of PEG Access or Local Origination Programming Channels by CAC, shall be in accordance with and subject to the rules and procedures adopted by the CAC as authorized under the Cable Act.

11.

Assistance with Soliciting Contributions. Once per year at the Grantor's sole discretion and expense, Grantee shall provide its Subscriber mailing list to Grantor for the purpose of mailing notices to Subscribers for the purpose of soliciting voluntary contributions for community television. Grantee shall also receive and collect such contributions on behalf of Grantor.

12.

Ad Avail Grants. Grantee will provide the CAC with thirty thousand dollars ($30,000) worth of ad avails each year at Grantee's lowest unit cost, at no cost to promote programming on Northwest Community Television's Local Origination News Channel. The ad avails will be on a "run of schedule" basis and shall appear on Channels used by Grantee for local advertising.

13.

Channel 14 Trap. Grantee agrees to "trap out" the programming offered on Cable System Channel 14 on the Effective Date of this Franchise for any Subscriber not wanting the current Channel 14 available on their cable-ready televisions. Any Subscribers requesting a Channel 14 "trap" will be charged an amount equal to Grantee's actual cost of materials only.

14.

Proof of Performance Testing. To ensure high quality service on PEG Access and Local Origination Programming Channels, proof of performance testing throughout the System and on all Channels will be made available to the Commission throughout the term of the Franchise. Included in the proof of performance four (4) System taps will be designated, corresponding to the four (4) schools where programming is originated. The Grantee will regularly monitor PEG Access Channels on a weekly basis throughout the System to determine the level of quality of PEG Access Channels and to ensure the same level of quality as on other Channels. A log shall be maintained for inspection by the Commission or its engineer. However, in the event that a Complaint is made by a programmer of any PEG Access Channel, the Grantee shall immediately investigate the Complaint and determine whether the Grantee is in compliance with the technical standards set forth in section 7.2 of this Franchise. The procedures set forth in section 7.3 of this Franchise shall apply with respect to technical testing of PEG Access Channels.