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Ordinance No. Page 4 J. "Video service" shall have the meaning given that term by subdivision (s) of Public Utilities Code §5830. Section 6.54.030 State Video Franchise required. A. No person may provide Video Service, or construct, operate, maintain or repair a Network in the City without first obtaining a State Franchise for that purpose. B. A State Franchise does not convey any rights upon the Holder other than those specified in this Chapter, DIVCA, or by any other applicable law; nor does it relieve the Holder of the obligation to comply with all laws, ordinances, resolutions, rules and regulations applicable to the placement of utilities in the public rights -of -way, public property, or private property, including, but not limited to Public Resources Code §§ 2100 et seq. (California Environmental Quality Act) and Chapter 13.04 Encroachments. C. Holders and applicants for a State Franchise to provide Video Service in the City shall deliver to the City full and complete copies of all applications, amendments, and other documentation submitted by the Holder or the applicant to the California Public utilities Commission related to the State Franchise. Section 6.54.040 Franchise Fee. Consistent with Public Utilities Code §5860: A. Any State Franchise Holder operating within the City shall pay to the City a State Franchise fee equal to five percent (5 %) of Gross Revenues. B. The Franchise fee shall be paid quarterly, within forty -five (45) days after the end of each calendar quarter. Each payment made shall be accompanied by a report detaining how the payment was calculated. C. The City many examine or audit Holder's business records to ensure compliance with this Chapter. D. In the event the Holder fails to make payments required by this Chapter on or before the due dates specified herein, the City shall impose a late charge at a rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent (1 %). E. In accordance with Public Utilities Code §5840(q)(2)(B), in the event a 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 Holder pursuant to this Section, which fee shall otherwise be payable in accordance with the procedures established by this Section. Section 6.54.050 Public, educational and governmental access channels. A. PEG Channel Capacity. 1. A Holder that has been authorized by the California Public Utilities Commission to provide Video Service in the City shall designate and activate three (3) PEG channels within three (3) months from the date that the City requests that the Holder designate and activate these PEG channels. However, this three (3)-