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<br />3. <br /> <br />4. <br /> <br />decision. Any funds transferred from Construction Cost to PEG access capital <br />funds shall be paid to the City on or before January 31, 2007. <br /> <br />PEG Access Support Fee. <br /> <br />a. <br /> <br />Grantee shall have the right to assess Subscribers a monthly fee to recover all <br />costs associated with the PEG access capital grants and the Construction Costs <br />associated with the fiber network, including seven percent (7%) cost-of-capital <br />throughout the term ofthe Franchise. This seven percent (7%) cost of capital <br />component which Grantee reserves the right to add to the pass-through will not <br />occur anytime prior to January I, 2007. <br /> <br />b. <br /> <br />Any and all payments by Grantee to City as capital support for PEG and for the <br />construction of the fiber network shall not be deemed "Franchise Fees" within the <br />meaning of Section 622 of the Cable Act (47 US.c. § 542). The PEG Access <br />Support Fee is intended to conform to the provisions of Section 611 of the Cable <br />Communications Policy Act of 1984, and further is intended to be payments of <br />the type described in Section 622(g) (2) (B) and (C) of said Act, and not to be or <br />to constitute Franchise Fees. <br /> <br />Existing Live and Taped Programming. Grantee shall maintain all Cable System <br />connections existing on the effective date of this Franchise to permit such live or <br />recorded coverage of events within the City. The locations capable of inserting live and <br />taped programming are as follows: <br /> <br />1. <br /> <br />City Hall, 1017 Middlefield Road <br /> <br />a. <br /> <br />PEG Operations. <br /> <br />1. <br /> <br />City shall be responsible for all programming requirements, including but <br />not limited to: scheduling, playback, training, staffing, copyright <br />clearances, and equipment, maintenance and repair. <br /> <br />11. <br /> <br />City or its designee may negotiate agreements with neighboring <br />jurisdictions served by the same Cable System, educational institutions, or <br />others to share PEG operating expenses, as appropriate. City or its <br />designee may negotiate an agreement for management of PEG facilities, if <br />so desired. <br /> <br />b. <br /> <br />Title to PEG Equipment. Grantee shall transfer to City all existing PEG <br />equipment located in the City provided with funding made available in any prior <br />franchise agreements by and between the City and Grantee, or Grantee's <br />predecessor in interest. Grantee shall also provide to SAMCAT all existing PEG <br />production equipment located at KCSM and the SamTrans studio provided with <br />funding made available in any prior franchise agreements by and between the City <br />and Grantee, or Grantee's predecessor in interest. <br /> <br />B-3 <br />