A. All unsatisfied obligations, existing on January 1, 2007, to remit any cash payments to the city for the ongoing costs of public, educational, and government ("PEG") channel facilities or institutional networks contained in a local franchise, shall continue until August 19, 2010, and shall be paid by the incumbent cable operator and any state franchise holders pursuant to California Public Utilities Code Section 5870. Such cash payments shall be divided among the incumbent cable operator and all state franchise holders pursuant to California Public Utilities Code Section 5870.

B. All obligations, existing on December 31, 2006, to provide and support PEG channel facilities and institutional networks and to provide cable services to community buildings contained in a local franchise shall continue until August 19, 2010, pursuant to California Public Utilities Code Section 5870.

C. Commencing August 20, 2010, any state franchise holder shall remit to the city a fee to support PEG channel facilities in the amount of one and twenty-four hundredths percent of the gross revenues of the state franchise holder in compliance with California Public Utilities Code Section 5870. All revenue collected pursuant to this fee shall be deposited in a separate fund and shall only be expended for the purpose of supporting PEG channel facilities.

D. Any state franchise holder shall designate a sufficient amount of capacity on its network to allow the provision of PEG channels in accordance with California Public Utilities Code Section 5870. Any state franchise holder shall have three months from the date the city requests the PEG channels to designate the capacity. The three-month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible.

E. Notwithstanding California Public Utilities Code Section 5870(n), upon the expiration of any state franchise, this section shall be deemed to have been automatically reauthorized without further action of the city council, unless the state franchise holder has given the city manager and the city clerk written notice sixty days prior to the expiration of its state franchise that the state franchise holder will consider this section and the PEG fee established by this section to have expired, pursuant to California Public Utilities Code Section 5870(n), upon the expiration of its state franchise.

F. This section shall be enforced, and disputes regarding this section shall be resolved, pursuant to California Public Utilities Code Section 5870.