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<br />4.04 Karnack shall provide the City with the <br />capability to broadcast public and municipal notices on the <br />cityls dedicated channels by means of an electronic character <br />generator. Karnack shall further provide the equipment necessary <br />to operate the character generator from anyone location within <br />the City of San Marcos through available phone lines as <br />determined by the City. <br /> <br />4.05 Karnack shall produce a picture that is <br />undistorted, free from ghost images and accompanied with proper <br />sound on typical standard production TV sets in good repair, and <br />as good as the state-of-the-art allows. <br /> <br />4.06 Karnack shall transmit signals of adequate <br />strength to produce good pictures with good sound at all outlets <br />without causing cross-modulations in the cable or interfering <br />with other electrical or electronic systems. <br /> <br />4.07 Karnack shall limit failures to a minimum by <br />locating and correcting malfunctions promptly. Karnack will <br />attempt to correct all complaints through its local office. If a <br />customer is not satisfied after contacting the local office <br />twice, then on third attempt the complaint is to be handled <br />personally by the cable system manager. On the fourth attempt the <br />complaint shall be resolved through the City Manager's office. <br /> <br />4.08 Karnack shall notify all subscribers by mail of <br />all channel changes within 7 days of the change. <br /> <br />4.09 Karnack will provide electronic devices for <br />sale to subscribers at Karnack's materials cost plus 10% which <br />will allow the subscriber to, at their discretion, prevent <br />selected channels from reaching their receiver devices. <br /> <br />4.10 Upon City's request, Karnack shall furnish the <br />equipment necessary to originate for distribution throughout the <br />cable television system, broadcast signals from the City Council <br />Chambers. To accomplish this, Karnack agrees to establish a fund <br />to be used exclusively for purchase, rent or lease of such <br />equipment equal to 4% of its annual gross basic monthly service <br />revenues collected in calendar year 1987. This fund will be <br />available to the City from and after September 1, 1988. <br /> <br />Additionally upon City's request Karnack shall furnish <br />to the City an amount equal to 4% of its annual gross basic <br />monthly service revenues collected in calendar year 1997. This <br />fund provided to the City shall in no event exceed $40,000.00. <br />This fund will be available to the City from and after September <br />I, 1998. <br /> <br />The City shall have exclusive control over the amount, <br />type and brands of equipment purchased, rented or leased with <br />these funds. Karnack agrees to assist City with any purchase if <br />requested by City. <br /> <br />5. <br /> <br />Company Staff <br /> <br />5.01 Karnack shall at all times maintain a <br />sufficiently competent staff to adequately service all of its <br />equipment, during all hours of telecast distribution. <br /> <br />6. <br /> <br />Operation and Maintenance of System <br /> <br />6.01 Karnack shall render <br />repairs properly and interrupt service <br />for the shortest time possible. Such <br />possible, shall be preceded by notice <br />periods of minimum use of the system. <br /> <br />efficient service, make <br />only for good cause and <br />interruptions, insofar as <br />and shall occur during <br /> <br />- Page 3 - <br />