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• Two PEG channels continue to be required—one programmed areawide by the <br />Commission, and one narrowcast for individualized programming within each member <br />city. Existing live origination sites are retained. <br />• Within 120 days, the areawide channel must be made available in HD. Thereafter, when <br />substantially all other channels are in HD, the city channels must be available in HD. <br />• The Franchise Fee remains at 5% of gross revenues. The PEG Fee remains at $.85 per <br />sub/per mos. Even before the FCC proposed rulemaking, Charter has resisted PEG Fees <br />of this amount in renewals. Language has been added more clearly restricting PEG Fees <br />to capital costs consistent with GAAP, and requiring that the Commission and members <br />also support PEG access programming at an equivalent level (presumably from Franchise <br />Fees). <br />• The existing service area/system extension requirements are retained. The system must <br />be extended wherever there are at least 9 homes per 1/4 mile of new cable required to <br />provide service. <br />• The existing system capacity and technical requirements are retained. <br />• There are a number of revisions in both the Franchise and Regulatory Ordinance <br />reflecting the fact that the member cities have enacted comprehensive ROW regulatory <br />ordinances as required by state law. These changes reflect that such ROW ordinances <br />will control ROW management issues and that municipal authority over the ROW has not <br />been waived or limited. We believe all or nearly all member cities have enacted such <br />ROW ordinances. <br />• The right to free cable service (and we have argued, free converters) has been limited to <br />specified sites listed in Ex. A-2 to the Franchise, and generally only one converter per site <br />will be provided. This is a compromise. <br />• The existing $50,000 performance bond, insurance requirements, indemnification <br />obligations, and Franchise enforcement mechanisms remain essentially unchanged. <br />• The existing customer service obligations have been streamlined, however we believe all <br />rights to address current, relevant customer concerns remain. <br />• The renewal includes new "Equal Protection" language (Reg. Ord., Sec. 14.4). To <br />summarize, this language will require that any competitive cable provider be subjected to <br />essentially the same obligations and commitments and will give Charter more extensive <br />rights to enforce this requirement. <br />RJV-254155v1 2 <br />SH255-1 <br />