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channel capacity, facilities, or financial support to meet identified community communications <br />needs as part of a renewal proposal. It is the NSCC and its member cities — not Comcast - who <br />determine what satisfactory or sufficient PEG support is. <br />Argument: Current PEG capital funding for the past 15 years is less than $100,000 per <br />year or about $0.27 per subscriber per month. <br />Response: The current Franchise Agreement and MOUs set forth the capital funding to <br />be approximately $100,000 per year (approximately $0.27 per subscriber per month), recently <br />dropping to $50,000 in 2014 (approximately $0.13 per subscriber per month). As these PEG <br />funds (the MOU identified "equipment," "operating" and "scholarship" grants) are all allowed to <br />be used for whatever PEG purposes the NSCC so chooses, the funding is not linked to the so <br />called "uses" Comcast's seems to be implying. The NSCC/NSAC have consistently used any <br />and all funds including reserves to pay for capital needs like the leasehold improvements it made <br />to the current facility a few years ago. Those leasehold improvements came to $528,281, and the <br />NSCC/NSAC would not have been able to make them without having sufficient reserve funding. <br />Argument: The NSCC is demanding a 10-fold increase in PEG capital funding. <br />Response: Past spending is not relevant to the determination of whether the Comcast <br />proposal meets the NSCC's future needs. However, over the past 15 years, the NSCC/NSAC has <br />spent over $4 million on capital needs. Additionally, the member cities used franchise fees on <br />additional PEG related capital needs. The identified needs do not represent a 10-fold increase. <br />The member cities' identified future capital needs total approximately $4.5 million as identified <br />in the Needs Ascertainment Report. <br />Argument: The NSCC has $2.1 million in reserves. <br />5 <br />