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<br /> <br />232860v1 <br /> <br />43 <br />programming available of the PEG Channels. City understands and agrees that <br />if it exercises this option, Grantee may reduce the number of PEG Channels on <br />the Basic Tier to two (2) channels in addition to the Regional Channel six (6) <br />if applicable. <br />(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 Headend, <br />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 <br />available, operate reliably and satisfy all applicable technical standards and related <br />obligations of the Franchise free 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 <br />institutions or others to share the operating expenses of the PEG Channels. City <br />and Grantee may negotiate an agreement for management of PEG Access <br />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 ($1.20) per month <br />solely to fund public, educational and governmental access expenditures <br />(hereinafter "PEG Fee") which shall be payable quarterly and included in the <br />Fee worksheet Exhibit G. The City Council may reduce the PEG Fee at any <br />time. The City shall have the right, no more than every two (2) years during <br />the term of the Franchise, to increase the PEG Fee by providing Grantee ninety <br />(90) days advance written notice. No single increase in the PEG Fee shall <br />exceed fifteen cents ($.15) per subscriber. <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 <br />intended to fall within one (1) or more of the exceptions in 47 U.S.C. § 542. <br />The PEG Fee may be categorized, itemized, and passed through to Subscribers <br />as permissible, in accordance with 47 U.S.C. §542 or other Applicable Laws. <br />Grantee shall pay the PEG Fee to the City quarterly at the same time as the <br />payment of Franchise Fees under Section 7(1) of the Franchise. Grantee agrees <br />that it will not offset or reduce its payment of past, present or future Franchise <br />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 <br />108