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<br />12. <br /> <br />Preferential or Discriminatory Practices Prohibited <br /> <br />12.01 Karnack shall not, as to rates, charges, <br />service facilities, rules, regulations or in any other respect, <br />make or grant any preference or advantage to any person nor <br />subject any person to any prejudice or disadvantage for any <br />reason, provided that nothing in this contract shall be deemed to <br />prohibit the establishment of a graduated scale of charges and <br />classified rate schedules to which any customer coming within <br />such classification would be entitled. Karnack shall not deny <br />access to cable service to any group of potential residential <br />cable subscribers because of the income of the residents of the <br />local area in which such group resides. At all times Karnack <br />will provide programming service on an equal basis to all <br />segments of its distribution system within the rights of way of <br />the City. <br /> <br />12.02 Equal opportunity employment shall be afforded <br />by Karnack, and no person shall be discriminated against in <br />employment by Karnack because of race, color, religion, national <br />origin, age, sex or handicapping condition. <br /> <br />13. <br /> <br />Extension Policy <br /> <br />13.01 Karnack shall, where necessary to supply any <br />person who will contract with it for its service, upon written <br />demand, extend any of its existing cables a distance of not to <br />exceed one hundred and fifty (150) feet per customer at no charge <br />but the monthly rate and published installation fee. Karnack's <br />policy for extensions of service over 150 feet shall be submitted <br />to the City for approval. <br /> <br />14. <br /> <br />Approval of Transfer <br /> <br />14.01 Karnack shall have the right to transfer this <br />agreement. The written approval by the Council shall be secured <br />~y Karnack before it may transfer or assign this agreement, or <br />any of the rights or privileges included within it, or any <br />significant portion of its plant or system. Any successor or <br />assignee of Karnack shall be bound by all the duties, <br />obligations, and conditions of the agreement. Such transfer or <br />assignment will be considered only upon the filing with the City <br />Secretary of an instrument duly executed by the assignee agreeing <br />to be bound. The City shall not unreasonably withhold approval <br />of a transfer; provided, however, the proposed assignee must show <br />financial responsibility and must agree to comply with all <br />provisions of this agreement. <br /> <br />15. <br /> <br />Payment of Gross Receipt Taxes to City <br /> <br />15.01 Within thirty (30) days following the close of <br />each calendar quarter, Karnack shall pay to to City a sum equal <br />to five percent (5 %) of collected basic monthly service revenue, <br />of sales and lease revenue from converter devices and of revenue <br />from connection and reconnection fees. <br /> <br />16. <br /> <br />Records and Reports <br /> <br />16.01 The City shall have the right to inspect, copy <br />and audit, at any time during normal business hours, the books, <br />records, maps and all other records otherwise reasonably <br />required, pertaining to Karnackls operation within the city <br />limits of San Marcos. <br /> <br />- Page 7 - <br />