A. PEG channel capacity.
1. A state franchise holder shall designate a sufficient amount of capacity on its network to allow the provision of at least two (2) PEG channels to satisfy the requirement of state law, within the time limits specified by state law.
2. A state franchise holder shall provide an additional PEG channel when the standards set forth in Section 5870(d) of the California Public Utilities Code are satisfied by the city or any entity designated by the city to manage one or more of the PEG channels.
B. PEG support fee.
1. Amount. Any state franchise holder shall pay to the city -- or if directed by the city, to the city's designated PEG provider -- a PEG support fee equal to two and twelve hundredths percent (2.12%) of gross revenues, an amount equivalent to the level of PEG support funding remitted by the incumbent cable operator to the city during the calendar quarter of October 1, 2006 to December 31, 2006.
2. The PEG support fee shall be used for PEG purposes that are consistent with state and federal law.
3. A state franchise holder shall remit the PEG support fee quarterly, within forty-five (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. Each state franchise holder shall furnish, on an annual basis, a statement within ninety (90) days of the close of the calendar year, either audited and certified by an independent certified public accountant or certified by an officer of the state franchise holder, reflecting the total amount of gross revenues, as defined in Public Utilities Code Section 5860, for the preceding calendar year, and all payments, deductions and computations used to determine the amount of the remittances required by subdivision A of this section during the preceding calendar year. The City Manager may establish, and from time to time revise, such additional reporting requirements as are necessary to ensure that the basis for the calculation of the amount of remittances are adequately explained and documented, and each state franchise holder shall comply with such additional reporting requirements provided that each franchise holder shall have first been provided written notice of such requirements at least fifteen (15) days prior to the beginning of the calendar year.
5. If 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 one percent (1%), or the maximum rate specified by state law.
6. Notwithstanding subdivision (n) of Public Utilities Code Section 5870, upon the expiration of any state franchise, without any action of the City Council, subsection B. of this section shall be deemed to have been automatically reauthorized unless the state franchise holder has given the City Council and City Manager written notice sixty (60) days prior to the expiration of its state franchise that this section will expire pursuant to the terms of subdivision (n) of Public Utilities Code Section 5870.
C. PEG carriage and interconnection.
1. As set forth in Sections 5870(b) and 5870(g)(3) of the California Public Utilities Code, 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. As set forth in Section 5870(h) of the California Public Utilities Code, the holder of a state franchise and an incumbent cable operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG programming. If a state franchise holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement for PEG carriage, the city shall require the incumbent cable operator to allow the 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, the 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 the state franchise holder requesting the interconnection unless otherwise agreed to by the parties.
(Ord. 2017-10 § 2, 2017; Ord. 2009-04 § 2 (part), 2009)