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HomeMy WebLinkAbout8.1 Community Access Preservation Act STAFF REPORT CITY CLERK File #660-40 CITY COUNCIL DATE:February 4, 2014 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, Acting City Manager SUBJECT: Resolution in Support of the Community Access Preservation Act (CAP Act) Prepared by Roger Bradley, Assistant to the City Manager EXECUTIVE SUMMARY: In 2011, the franchise agreement between Comcast and the City of Dublin ended, and the City became subject to Assembly Bill 2987, the Digital Infrastructure and Video Competition Act (DIVCA). DIVCA shifted oversight of cable television franchises from local governments to the State through the California Public Utilities Commission. As a result of DIVCA, Tri-Valley Community Television (TV30) lost its flexibility to use PEG (Public, Education, and Government) fees collected from subscribers for ongoing operations. Although PEG fees continue to be collected from subscribers by the cable operators, these fees are now specifically designated for capital costs only. This change detrimentally impacted TV30 as well as public access channels throughout the country with similar state laws. The federal Community Access Preservation Act (CAP Act) would rectify this situation. FINANCIAL IMPACT: The passage of the CAP Act would eliminate the need for annual General Fund expenditures in the amount of $92,000 to subsidize TV30 operations. RECOMMENDATION: Resolution Staff recommends the City Council adopt Supporting the Passage of U.S. Senate Bill 1789, the Community Access Preservation Act (CAP Act). Submitted By Reviewed By Assistant to the City Manager Acting Assistant City Manager ITEM NO. 8.1 Page 1 of 2 DESCRIPTION: PEG (Public, Education and Government) channels connect residents with their local government by broadcasting city council, school board, and special agency meetings. These channels also televise high school sporting events, and provide other local programming such as holiday parades. In short, PEG channels represent community television, not public television like PBS. Community television stations like Tri-Valley Community Television (TV30) have traditionally used PEG funds, which are collected through a subscriber fee on monthly cable bills, to fund operations and capital acquisitions. However, a trend in state legislation across the country has placed restrictions on PEG fees requiring that they be used for capital purposes only. The State of California’s restriction (Assembly Bill 2987, the Digital Infrastructure and Video Competition Act, or DIVCA) went into effect within the Tri-Valley in 2011. At the federal level, PEG fees are only differentiated from other cable provider support revenue if they are used solely for capital purposes. However, at the local level, communities have been able to negotiate the use of PEG fees with cable service providers for operational purposes as part of their local franchise agreements. When the State passed the DIVCA legislation, the authority to negotiate local cable franchise agreements was removed from the State’s municipalities, and designated the California Public Utilities Commission as the sole franchising authority for California. Importantly, there were no provisions within the legislation or new franchise language that would allow the use of PEG fees for operational purpose, leaving many community televisions stations without operational support funding, previously drawn from PEG fees. Left without operational dollars, many PEG channels across the country have been forced to close their doors. For TV30, the commitment of the Tri-Valley cities of Dublin, Livermore, and Pleasanton did not allow this to happen. Instead, General Fund operational funding has been provided by each city, and a TV30 Foundation has been established for local private fundraising. In addition, the Station and its Board of Directors, made up of the Mayors of the three cities, have been advocating for federal legislation that would allow PEG funds to be used for operational as well as capital purposes, relieving the need for General Fund support. In response to the loss of revenue by community television stations across the country, the Community Access Preservation Act (CAP Act) was drafted to address the immediate issue facing PEG channels by allowing PEG fees to be used for any PEG-related purpose. This provision would again permit the use of PEG funds for operations. Another aspect of the Act would also benefit TV30 by ensuring that cable operators cannot charge for the transmission of the PEG channels, and ensure that PEG channels are carried on the basic tier of cable services. The City Council had adopted a resolution of support for a previous version of this bill in a prior session of Congress. Consequently, TV30 has requested that each Tri-Valley city adopt a new resolution (Attachment 1) supporting the current version of the CAP Act, which would signal that the Tri-Valley cities strongly support this important federal legislation. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Supporting the Passage of S.1789, the Community Access Preservation Act (CAP Act) Page 2 of 2 RESOLUTION NO. XX - 14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * SUPPORTING THE PASSAGE OF U.S. SENATE BILL 1789, THE COMMUNITY ACCESS PRESERVATION ACT (CAP ACT) WHEREAS, public, educational and government (PEG) access channels are one of the last surviving sources for local television programming across the country and PEG channels play a significant role in the City of Dublin; and WHEREAS, PEG channels are a unique and valuable resource for local information and discourse for the residents of the City of Dublin; and WHEREAS, PEG channels televise local government meetings, including City Council and Dublin Unified School District Board meetings, so that citizens are informed about the actions taken by local officials; and WHEREAS, PEG channels are also utilized to communicate with citizens on municipal events and services and also provide advisories and preparation directions to residents for emergency purposes; and WHEREAS, PEG channels provide a window through which residents can view the diversity of cultures, educational information, recreational activities and artistic endeavors in their local community; and WHEREAS, PEG channels reflect the unique identity of the communities they serve; and WHEREAS, it is important to preserve PEG channels and funding for PEG channels, and to ensure that the channels continue to be available to the entire community to serve the residents of the City of Dublin; and WHEREAS, the Community Access Preservation (CAP) Act addresses critical and immediate threats to PEG; and WHEREAS, the CAP Act provides important solutions for critical and immediate threats to PEG channels and facilities across the country by removing use restrictions on PEG access fees, restoring PEG revenue streams, and preventing video providers from charging municipalities for the transmission of the PEG channels; and WHEREAS, the CAP Act would allow PEG fees to once again be used for any legitimate PEG expense, instead of restricting PEG fees to capital expenses only. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Dublin supports immediate passage of S. 1789, the Community Access Preservation Act (CAP Act); and ATTACHMENT 1 BE IT FURTHER RESOLVED, that the City Council of the City of Dublin calls on its Congressional delegation to take all possible actions in support of the passage of S. 1789, including, but not limited to, endorsing, co-sponsoring and voting for S. 1789, and to work for its rapid passage. PASSED, APPROVED AND ADOPTED this 4th day of February 2014, by the following vote: AYES : NOES : ABSENT : ABSTAIN : ______________________________ Mayor ATTEST : _________________________________ City Clerk ATTACHMENT 1