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BACKGROUND <br /> The Community Access Preservation Act (CAP Act or HR 1746) was introduced in the <br /> House in the spring of 2011 and would amend the Communications Act of 1934 to <br /> protect Public Education and Government (PEG) channels. Specifically, the Act would <br /> allow the City to use PEG support money for operations in addition to equipment and <br /> capital expenditures. Currently, federal law limits PEG support fees to capital and <br /> equipment. If fees are used for operations and maintenance, the cable operator may <br /> deduct the operations and maintenance costs from its required 5% franchise fee. The <br /> CAP Act would remove the distinction between capital and operational use and allow <br /> the local jurisdiction to determine the allocations necessary to best serve the needs of <br /> the community. The CAP Act will also ensure that PEG channels are available to every <br /> subscriber without additional charge (beyond basic service) or rental equipment. In <br /> addition, the CAP Act will further ensure that local governments can secure funding for <br /> PEG channels in exchange for cable operators' use of the public right of way and <br /> without charge to local government. <br /> Submitted by: Fiscal Review: Approved b : <br /> v11 &" 0 <br /> Maria Lara Emily Wagner Nelson Fialho <br /> Assistant to the Director of Finance City Manager <br /> City Manager <br /> Attachments: <br /> 1. Resolution <br /> Page 2 of 2 <br />