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equipment and training of PEG personnel, and in addition, provide necessary <br />assistance so that PEG facilities may be used as intended, including, among other <br />things, so that live and taped programming can be cablecasted efficiently to <br />Subscribers. <br />6.1.5 Subject to Section 6.1.2.1, all PEG channels shall be transmitted in the same <br />format as all other Basic Cable Service channels and shall be carried on the Basic <br />Service tier and shall be provided to all cable subscribers regardless of the tier or <br />package of cable service subscribed to by the subscriber. <br />6.1.6 Except as otherwise provided in this Franchise, the Commission shall be <br />responsible for any necessary master control switching of PEG signals and <br />Institutional Network. <br />6.2 PEG Support Obligations. <br />6.2.1 Grantee shall pay a PEG Fee of $3.16/subscriber/month from the effective date <br />until the franchise renews. Starting with the 2016 calendar year, the City may <br />elect to increase this fee based on the incumbent's cable franchise PEG support <br />obligation, or the Consumer Price Index. Any such election must be made in <br />writing to the Franchisee no later than September 1st prior to the year in which <br />the increase shall apply. In no event shall the monthly per subscriber fee be in an <br />amount different from the incumbent cable provider. The PEG fee may be used <br />for operational or capital support of PEG programming. The PEG Fee may be <br />itemized on the Subscriber billing statements per applicable law. The Grantee <br />shall apply one PEG Fee on the master account for services to non -dwelling bulk <br />accounts (such as hotels, motels, prisons and hospitals). The Grantee shall <br />calculate PEG Fees on a pro rata basis for bulk accounts in residential multiple <br />dwelling unit ("MDU") buildings in the following manner: if the bulk rate for <br />Basic Cable Service is one third (1/3) of the current residential rate, then a pro- <br />rated PEG Fee shall be added to the bulk bill for an MDU building in an amount <br />equal to one third (1/3) of the current PEG Fee. If the bulk rate for Basic Cable <br />Service is raised in any MDU building, the pro -rated PEG Fee in that building <br />shall be recalculated and set based on the foregoing formula, regardless of any cap <br />on per Subscriber PEG Fee amounts. Payments for the PEG Fee pursuant to this <br />subsection shall be made quarterly based on actual receipts from the prior quarter <br />on the same schedule as franchise fee payments. <br />6.2.2 The Grantee shall provide the fiber-optic or other cabling and other electronics, <br />equipment, software and other materials necessary to transport all PEG signals <br />from their origination point to and from the Commission's master control to the <br />appropriate subscriber network channel, including channels provided discretely. <br />Grantee shall provide the aforementioned cabling, electronics, equipment, <br />software and other materials at no cost to the City, the Commission, and the North <br />Metro Media Center. This equipment shall include one (1) encoder for each <br />Access Channel. <br />31 <br />