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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 S ystem, 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. <br />171276v2 <br />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 s hal l <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 />E-2 <br />117