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Page 23 PUBLIC DOCUMENT-TRADE SECRET DATA HAS BEEN EXCISED Proposal for Formal Franchise Renewal December 20, 2013 function of carrying channels of PEG programming, and is in fact a demand for a complimentary telecommunications and data pipeline for municipalities—the demand violates the Cable Act. Indeed, applying the Cable Act's provision barring LFAs from unreasonably refusing to grant franchises, the FCC's 621 Order found that LFAs cannot deny a franchise based on an applicant's "refusal to undertake certain obligations relating to [PEG] and institutional networks."49 The 621 Order also clarified what kinds of "in-kind" franchise requirements are counted in determining whether a local franchising authority (LFA) has exceeded the 5% of gross revenue cap on franchise fees. The FCC held that "in-kind" mandatory payments required by LFA's which are unrelated to the provision of cable services are not expenses "incidental" to the award or enforcement of a franchise, and count toward the 5%-franchise-fee cap. Examples of in-kind payments cited by the FCC as constituting franchise fees include fiber optic cabling for traffic light control systems, scholarship funds, money for wildflower seeds, and video hookups for a Christmas celebration.s� Thus, to the extent that the NSCCs I-Net is not related to the provision of cable service, the value of the free I-Net demanded by the NSCC Staff constitutes franchise fees which count toward the 5% cap. The NSCC admits as much in its Staff Report, stating that I-Net facilities, equipment, and capabilities are "in-kind compensation" for the use of the ROW.51 The Staff Report also provides no documentation supporting its conclusions that a community need and interest exist for the I-Net. The Staff Report provides no information regarding the NSCCs current levels of use of the existing I-Net provided by Comcast. Notwithstanding the NSCC's failure to document the community need and interest for an I-Net, Comcast has become aware that the City of Roseville (an NSCC Member City) has leveraged the Comcast-provided I-Net into its own proprietary wide area network which the City has brand named "Metro capacity designated pursuant to this section."); 47 U.S.C. � 531(f) ("the term 'institutional network' means a communication network which is constructed or operated by the cable operator and which is generally available only to subscribers who are not residential subscribers"). 49. 621 Order ¶¶ 5,110. 50. Id. at ¶¶106-107. 51. Staff Report at 23.