(A) PEG channel capacity.
(1) A state franchise holder shall designate a sufficient amount of capacity on its network to allow the provision of four PEG channels to satisfy the requirement of Cal. Public Utilities Code § 5870 within the time limits specified therein.
(2) A state franchise holder shall provide an additional PEG channel when the city satisfies the standards set forth in Cal. Public Utilities Code § 5870(d) or any entity designated by the City to manage one or more of the PEG channels.
(B) PEG support.
(1) Amount of PEG support fee. Any state franchise holder shall pay to the city, or if directed by the city, to the city’s designated PEG provider, a PEG fee equal to 1.401%.
(2) The PEG support fee shall be used for PEG activities, in a manner that is consistent with the terms of the incumbent cable operator’s franchise during the period of January 1, 2006 to December 30, 2006 and settlements.
(3) A state franchise holder shall remit the PEG support fee quarterly, within 45 days after the end of each calendar quarter. Each payment made shall be accompanied by a summary, detailing how the PEG support fee was calculated.
(4) In the event that a state franchise holder fails to pay the PEG support fee when due, or underpays the proper amount due, the state franchise holder shall pay interest at the rate per year equal to the highest prime lending rate during the period of delinquency, plus 1%, or the maximum rate specified by state law.
(5) Notwithstanding Cal. Public Utilities Code § 5870(n), upon the expiration of any state franchise, without any action of the City Council, this section shall be deemed to have been automatically reauthorized, unless the state franchise holder has given the City Manager and the City Council written notice 60 days prior to the expiration of its state franchise that the section will expire pursuant to the terms of Cal. Public Utilities Code § 5870(n).
(C) PEG carriage and interconnection.
(1) As set forth in Cal. Public Utilities Code §§ 5870(b) and 5870(g)(3), state franchise holders shall ensure that all PEG channels are receivable by all subscribers, whether they receive digital or analog service, or a combination thereof, without the need for any equipment other than that needed to receive the lowest cost tier of service. PEG access capacity provided by a state franchise holder shall be of similar quality and functionality to that offered by commercial channels (unless the PEG signal is provided to the state franchise holder at a lower quality or with less functionality), shall be capable of carrying a National Television System Committee (NTSC) television signal, and shall be carried on the state franchise holder’s lowest cost tier of service. To the extent feasible, the PEG channels shall not be separated numerically from other channels carried on the lowest cost tier of service and the channel numbers for the PEG channels shall be the same channel numbers used by any incumbent cable operator, unless prohibited by federal law. After the initial designation of the PEG channel numbers, the channel numbers shall not be changed without the agreement of the city unless federal law requires the change.
(2) Where technically feasible, each state franchise holder and each incumbent cable operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG programming. Interconnection may be accomplished by any means authorized under Cal. Public Utilities Code § 5870(h). Each state franchise holder and incumbent cable operator shall provide interconnection of PEG channels on reasonable terms and conditions and may not withhold the interconnection. If a state franchise holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement for PEG carriage, the city may require the incumbent cable operator to allow each state franchise holder to interconnect its network with the incumbent cable operator’s network at a technically feasible point on the state franchise holder’s network as identified by the state franchise holder. If no technically feasible point of interconnection is available, each state franchise holder shall make interconnection available to each PEG channel originator programming a channel in the city and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by each state franchise holder requesting the interconnection unless otherwise agreed to by the parties.
(Ord. 762-C.S., passed 1-4-11; Am. Ord. 826-C.S., passed 11-17-15; Am. Ord. 926-C.S., passed 10-5-21)