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09/24/2012 Sec. 11.75 PEG fees. A. Pursuant to Section 5870(I) of the California Public Utilities Code, every state franchise holder operating within the boundaries of the City shall be responsible for a PEG fee in the amount of fifty-five cents ($0.55) per subscriber per month, until the expiration of the incumbent cable operator's local franchise with the City. B. As permitted by section 5870(n) of the California Public Utilities Code, upon the expiration of the current incumbent cable operator's local franchise, every state franchise holder operating within the boundaries of the City shall pay PEG fee in the amount of one (1) percent of the state franchise holder's gross revenues to be used to support PEG facilities consistent with law. Sec. 11.76 Payment of fees. The state franchise fee required pursuant to Section 11.74, and the PEG fee required pursuant to Section 11.75, shall each be paid to the City quarterly, in a manner consistent with California Public Utilities Code section 5860. The state franchise holder shall deliver to the City, by check or other means specified by the City, a payment for the state franchise fee and a separate payment for the PEG fee not later than forty-five (45) days after the end of each calendar quarter. Each payment made shall be accompanied by a summary explaining the basis for the state franchise fees, containing such information as the City Manager may require consistent with DIVCA. Sec. 11.77 Audits. The City may audit the business records of the holder of a state franchise in a manner consistent with California Public Utilities Code section 5860(i). Sec. 11.78 Late payments. In the event a state franchise holder fails to make payments required by this Article on or before the due dates specified in this Article, the City shall impose a late charge at the rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent (1%). Sec. 11.79 Lease of City-owned network. In the event a state franchise holder leases access to a network owned by the City, the City may set a franchise fee for access to the City-owned network separate and apart from the franchise fee charged to state franchise holders pursuant to Section 11.74, which fee shall otherwise be payable in accordance with the procedures established by this Article. Sec. 11.80 Customer service and consumer protection standards. Each state franchise holder shall comply with all applicable customer service and consumer protection standards to the extent consistent with California Public Utilities Code section 5900, including, but not limited to, all existing and subsequently enacted customer service and consumer protection standards established by state and federal law and regulation pertaining to the provision of video service. ATTY/ORD.360/DIVCA(CH 11 ART III) ORD.2387 REV:07-16-12 PT Page 4 of 7 FOMERLY MUFF#305