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4. Customer Service and Consumer Protection Standards. While DIVCA prohibits local agencies from adopting their own customer service standards, it does require state franchise holders to comply with state and federal standards. However, DIVCA places the burden on the City to enforce certain statutory customer service and protection standards (e.g., service call response time, rate increase notification procedures, etc.) when complaints are received from residents within the City's jurisdiction. DIVCA also states that the City shall adopt, either by resolution or ordinance, a schedule of penalties for violations of such standards applicable if the state franchise holders have not remedied the violations within thirty (30) days. The proposed ordinance provides for the imposition of such penalties at the maximum permitted amounts under the law for all violations. See Section 6.54.070 of the attached proposed ordinance. 5. Permits and Construction. The proposed ordinance provides that for all work performed by or on behalf of a state franchise holder on any City public rights -of- way, public property, or City easements, as those terms are defined in the Pleasanton Municipal Code, shall comply with such requirements as set forth in the Pleasanton Municipal Code. See Section 6.54.030.B of the attached proposed ordinance. This protects the City's ability to require encroachment permits and review of projects by the Community Development Department, which may include CEQA review. Because the existing franchise agreement between the City and Comcast remains in effect until June 1, 2011, it is not proposed that the City repeal Chapter 6.52, Cable System Regulatory Ordinance, at this time. Regarding the financial implication of the state franchise, the 5% franchise fee is equivalent to that being provided under the existing local franchise agreement (5 %): in FY09 -10, this was $1.03 million and is expected —given a relatively equal number of subscribers —to be approximately the same going forward under the state franchise agreement. The 500 per month per subscriber fee will be supplanted by a 1% PEG fee under the state franchise agreement (at expiration of the local franchise agreement on June 1, 2011). This provides a positive financial impact based on the following calculation: Annual (FY09 -10) Annual (anticipated) 50' .er month .er subscriber fee 1% PEG fee $121,794 $206,688 However, while the 1% PEG fee will continue to be passed through to Tri- Valley Community Television to host public, educational and governmental programming, these funds can only be used for capital expenses. The Tri - Valley Community Television Board of Directors — currently comprised of the mayors of Dublin, Livermore, Pleasanton and San Ramon —is working with the staff liaisons from each city and the TVCTV Executive Director Melissa Tench - Stevens to redefine a sustainable funding structure for the organization. Page 4 of 5