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<br />6. Special Requirements and Conditions. <br /> <br />(a) The government channel will be available to the Grantor 24 hours, seven <br />days a week, with programming cablecast at the discretion of the Grantor. <br /> <br />(b) Grantor reserves the right to establish conditions for access to Grantor's <br />facilities for the purpose of fiber system maintenance, consistent with Grantor's then-current <br />security procedures. <br /> <br />(c) Grantor retains the right to transmit on its government channel <br />noncommercial programming that is provided by outside sources, such as the traffic report from <br />CalTrans that is now scheduled to be shown on the government channel twice each day. <br /> <br />7. PEG Capital Support Payment. <br /> <br />(a) Within 60 days after the effective date of this Agreement, Grantee will <br />provide to Grantor a PEG capital support payment in the sum of $450,000. Grantor may use this <br />PEG capital support payment for any capital costs incurred in providing PEG access channel <br />programming and technical support, as well as costs attributable to the maintenance, operation, <br />repair and replacement of the Coaxial I-Net, as provided for below in Section II. <br /> <br />(b) After Grantee has recovered the $450,000 PEG capital support payment <br />from its subscribers in accordance with a pass-through methodology that is agreed upon by the <br />parties, Grantee will remit quarterly PEG capital support payments to Grantor through the end of <br />the sixth year following the effective date of this Agreement at a rate equal to $0.55 per <br />subscriber per month. These payments will be remitted concurrently with Grantee's quarterly <br />franchise fee payments. <br /> <br />(c) On the seventh and twelfth anniversaries of the effective date of this <br />Agreement, Grantor shall have the right to require Grantee to adjust the pass-through amount <br />related to the quarterly PEG capital support payments. The need for each such adjustment must <br />be documented by Grantor. No adjustment may cause the pass-through amount to exceed the <br />sum of $0.65 per subscriber per month. <br /> <br />(d) The cost of the commitments specified in this Section 7 will not be offset <br />by Grantee against any franchise fees that are payable by Grantee to Grantor during the term of <br />this Agreement. <br /> <br />C. Public Access Channel. <br /> <br />1. Channel Allocations. So long as Grantee airs public access programming <br />in Orange County, Grantee will continue to provide one dedicated channel for public access <br />programming. Grantee may satisfy this requirement by cablecasting, on the Santa Ana analog <br />channel line-up, public access programming from another Grantee-operated access programming <br />center. In doing so, however, Grantee agrees that Grantor will not be charged any costs related <br />to this requirement, and no offset against franchise fees will result from this requirement. <br /> <br />12097-0002\(\80(\72v19.doc <br /> <br />F-4 <br /> <br />Cit)! of Santa Ana <br />EXECUTION COPY 4/07/0, <br />