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2. PEG TECHNICAL QUALITY. Grantee shall meet FCC signal quality standards when <br /> offering Access Channels on its Cable System. <br /> 3. RELOCATION OF GRANTEE'S HEADEND. In the event Grantee relocates its <br /> Headend, Grantee will be responsible for replacing or restoring the existing dedicated fiber <br /> connections at Grantee's cost so that all the functions and capacity remain available, operate <br /> reliably and satisfy all applicable technical standards and related obligations of the Franchise free <br /> of charge to the City or its designated entities. <br /> 4. PEG OPERATIONS. City may in its sole discretion, negotiate agreements with <br /> neighboring jurisdictions served by the same Cable System, educational institutions or others to <br /> share the operating expenses of the PEG Channels. City and Grantee may negotiate an <br /> agreement for management of PEG Access Facilities, if so desired by both parties. <br /> 5. TITLE TO PEG EQUIPMENT. City shall retain title to all PEG equipment and facilities <br /> purchased or otherwise acquired. <br /> 6. PEG ACCESS OPERATING SUPPORT. <br /> a) Upon Grantee's acceptance of this Franchise, Grantee shall collect on behalf of <br /> City a per Subscriber fee of One Dollar and Twenty Cents ($1.20)per month solely to <br /> fund public, educational and governmental access expenditures (hereinafter"PEG Fee") <br /> which shall be payable quarterly and included in the Fee worksheet Exhibit H. The City <br /> Council may reduce the PEG Fee at any time and the parties may mutually agree to <br /> increase the PEG Fee at any time. <br /> b) The PEG Fee shall be used by City in its sole discretion to fund PEG Access <br /> expenditures in a manner consistent with Applicable Law. <br /> c) The PEG Fee is not intended to represent part of the Franchise Fee and is intended <br /> to fall within one (1) or more of the exceptions in 47 U.S.C. § 542. The PEG Fee may be <br /> categorized, itemized, and passed through to Subscribers as permissible, in accordance <br /> with 47 U.S.C. §542 or other Applicable Laws. Grantee shall pay the PEG Fee to the <br /> City quarterly at the same time as the payment of Franchise Fees under Section 7(1) of <br /> the Franchise. Grantee agrees that it will not offset or reduce its payment of past, present <br /> or future Franchise Fees required as a result of its obligation to remit the PEG Fee. <br /> d) Any PEG Fees owing pursuant to this Franchise which remain unpaid more than <br /> thirty (30) days after the end of a given quarter shall be delinquent and shall immediately <br /> thereafter accrue interest at the same rate and under the same terms as late Franchise Fee <br /> payments as set forth in Section 7(1) of the Franchise. Enforcement of unpaid PEG Fees <br /> shall be handled in accordance with Section 9(7) of the Franchise, however, Grantee shall <br /> in all cases be subject to interest on any payment more than thirty (30) days after the end <br /> of a given quarter. <br /> 170765 E-2 <br />