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The next issue is whether the CenturyLink franchise contains a reasonable build-out schedule. The franchise ordinance recognizes that CenturyLink has already constructed a legacy communications system throughout the City, which is capable of providing telephone and internet service. The build-out provisions in the franchise are related to upgrades of the legacy system to make it capable of providing cable service to all area residents. The proposed CenturyLink Franchise addresses build-out as follows:  Complete Equitable Build-Out. Goal is to build-out the entire City over 5- year term, based on market success, with a significant investment targeted to areas below the median income in the City.  Initial Minimum Build-Out Commitment. 15% of the city over two years. o CenturyLink must make its best effort to complete the initial deployment in a shorter period of time. o Equitable Deployment to households in the City. o Must include a significant number of households below the medium income of the City. o CenturyLink permitted to serve more households than the initial commitment.  Quarterly Meetings. Starting January 1, 2016, CenturyLink must meet with the City [and/or City designee at NSCC] and show to the City’s satisfaction: o Number of households capable of being served and actually served. o Compliance with anti-redlining requirements. o Maps and documentation “showing exactly where within the City the Grantee is currently providing cable service.”  Additional Build-Out Based on Market Success. Starting January 1, 2016, the CenturyLink build-out commitment will increase if its penetration rate is at least 27.5% in the areas that it is offering service. o Example: If CenturyLink is offering service to 60% of a City and CenturyLink has penetration of 30% in that area, then the build-out commitment will increase by 15%, to cover 75% of the City. o Additional build-out commitment continues until all households are served.  Line Extension. No initial mandatory line extension, unless CenturyLink becomes the dominate cable provider. Then the City decides CenturyLink’s build-out schedule, including a density requirement that is the same or similar to Comcast’s density requirement. The City may consider whether the Initial Minimum Build-Out Commitment of 15% of each member city over two years is reasonable. CenturyLink claimed in its application that it initially would be providing service to a greater portion of the City. During negotiations however, CenturyLink was concerned about having too high a commitment in the franchise ordinance and that cities in Minnesota and elsewhere would use a greater commitment as a new standard. CenturyLink refused to increase the Initial Minimum