A. PEG FEE: A fee of 1% of Gross Revenues shall be assessed on all video service providers that use the public rights-of-way, including all local franchisees and all holders of state franchises as consistent with state or federal law. The PEG Fee shall be paid quarterly, to be received by the City not later than 45 days after the close of each quarter of Grantee's fiscal year.
(1) On a quarterly basis, Grantee shall provide the City a complete and accurate statement verified by a financial officer of Grantee indicating Gross Revenues for the past quarter, listing every revenue source, and depicting gross revenue computations.
(2) A video service provider subject to this section may recover the amount of any fee by billing a recovery fee as a separate line item on the regular bill of each Subscriber .
B. CHANNEL DESIGNATION: All video service providers that use the public rights-of- way shall designate sufficient amount of capacity on its network to allow the carriage of at least three public, educational, or governmental access (PEG) channels. For the purposes of this section, a PEG channel is deemed activated if it is being utilized for PEG programming within the city for at least eight hours per day.
(1) PEG channels shall be for the exclusive use of the City or its designee to provide public, educational, or governmental channels.
(2) Advertising, underwriting, or sponsorship recognition may be carried on the channels for the purpose of funding PEG-related activities.
(3) The PEG channels shall all be carried on the basic service tier of grantee.
(4) To the extent feasible, the PEG channels shall not be separated numerically from other channels carried on the basic service tier and the channel numbers for the PEG channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law.
(5) After the initial designation of PEG channel numbers, the channel numbers shall not be changed without the agreement of the City unless the change is required by federal law.
(6) Each channel shall be capable of carrying a National Television System Committee (NTSC) television signal.
C. INTERCONNECTION. Where technically feasible, all Grantee's video service providers shall negotiate in good faith to interconnect their networks for the purpose of providing PEG programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. Holders of a state franchise and incumbent cable operators shall provide interconnection of the PEG channels on reasonable terms and conditions and may not withhold the interconnection. If a holder of a state franchise and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, the City may require the incumbent cable operator to allow the holder to interconnect its network with the incumbent's network at a technically feasible point on the holder's network as identified by the holder. If no technically feasible point for interconnection is available, the holder of a state franchise shall make an interconnection available to the channel originator and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by the holder of a state franchise requesting the interconnection unless otherwise agreed to by the parties.