5.53.040 PEG channels and fee.
A. Capacity Designation. A state video franchise holder that uses the public rights-of-way shall designate sufficient capacity on its network to enable the carriage of at least three public, educational, and governmental (“PEG”) access channels. These channels shall comply with all DIVCA requirements, including but not limited to the following:
1. PEG access channels shall be for the exclusive use of the City or its designees to provide public, educational, or governmental programming.
2. Advertising, underwriting, or sponsorship recognition may be carried on the PEG access channels for the purpose of funding PEG-related activities.
3. The PEG access channels shall be carried on the basic service tier and shall be of similar quality and functionality to that offered by commercial channels on the lowest cost tier of service unless the signal is provided to the video service provider at a lower quality or with less functionality, as provided in Section 5870(g)(3) of the California Public Utilities Code.
4. To the extent feasible, the PEG access channels shall not be separated numerically from other channels carried on the basic service tier, and the channel numbers for the PEG access 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 access channel numbers, the channel numbers shall not be changed without the prior written consent of the City, unless the change is required by federal law.
6. Each PEG access channel shall be capable of carrying a National Television System Committee television signal, as provided in Public Utilities Code Section 5870(b).
B. Fee for Support of Local Cable Usage. A fee paid to the City is hereby established for the support of PEG channel facilities consistent with state and federal law. This fee shall be the maximum amount allowed by law, which is currently one percent of a state video franchise holder’s gross revenues, as defined in California Public Utilities Code Section 5860 (the “PEG fee”). The PEG fee shall be remitted quarterly to the City Treasurer and must be received not later than 45 days after the end of the preceding quarter. The PEG fee payment shall be accompanied by a summary that explains the basis for the calculation of the PEG fee for local cable usage. This PEG fee shall commence on July 1, 2012. The City Council may decrease or increase the amount of the PEG fee, up to the maximum amount allowed by law, by resolution. (Ord. 3230 § 2, 2012).