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institution may not exercise control over the system for a period exceeding one year unless authorized by the city, in its sole discretion, and during that period of time it will have the right to petition the city to transfer the franchise to another grantee. (6) Grantee must reimburse the city for the city's reasonable review and processing expenses incurred in connection with any transferor change in control of the franchise. These expenses include, without limitation, costs of administrative review, financial, legal, and technical evaluation of the proposed transferee, consultants (including technical and legal experts and all costs incurred by these experts), notice and publication casts, and document preparation expenses. No reimbursement may be offset against any franchise fee payable to the city during the term of the franchise. (g) Geographical coverage. (1) Unless otherwise provided in the franchise agreement, grantee must design, construct, and maintain the cable television system to have the capability to pass every dwelling unit and commercial building in the city, subject to any service-area line extension requirements set forth in the franchise agreement. (2) After service has been established by activating trunk or distribution cables for any service area, grantee must provide service to any requesting subscriber within that activated part of the service area within seven (7) days from the date of request, provided that the grantee is able to secure on reasonable terms and conditions all rights-of-way and permits necessary to extend service to that subscriber within that seven- day period. (h) Nonexclusive franchise. Every franchise granted is nonexclusive. The city specifically reserves the right to grant, at any time, such additional franchises for a cable television system that it deems appropriate, subject to applicable state and federal law. If an additional franchise is proposed to be granted to a subsequent grantee, a noticed public hearing must first be held if required under the provisions of Government Code Section 53066.3. (i) Multiple franchises. (1) The city may grant any number of franchises, subject to applicable state and federal law. The city may limit the number of franchises granted, based upon, but not necessarily limited to, the requirements of applicable law and the following specific local considerations: a. The capacity of the public rights-of-way to accommodate multiple cables in addition to the cables, conduits, and pipes of the existing utility systems, such as electrical power, telephone, gas, and sewerage. Ordinance No. NS-2774 Page 5 of 9