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BACKGROUND On October 19, 2010 the City Council adopted Pleasanton Municipal Code Chapter 6.54 (State Video Franchises) in response to the Digital Infrastructure Video and Competition Act of 2006 (DIVCA). This action included §6.54.060 which imposes a public, educational and governmental (PEG) fee on state cable franchisees operating within the City. However, DIVCA provides in California Public Utilities Code §5870(n) that a PEG fee ordinance must be reauthorized upon expiration of an applicable state franchise. The Pleasanton Municipal Code provides in §6.54.060.C. that upon the expiration of any state franchise, the City's PEG fee is automatically reauthorized unless the franchise holder has given the City 60-days written notice prior to the expiration of its state franchise that the City's PEG fee authorization will expire. DISCUSSION AT&T, Inc. operates within the City under a state video services franchise that expires on March 30, 2017. The City has received no written notice from AT&T of the expiration of its state franchise. Therefore, pursuant to the provisions of§6.54.060.C., the City's PEG fee is automatically reauthorized with regard to AT&T. However, in the event that AT&T asserts that the Pleasanton Municipal Code is pre-empted by the California Public Resources Code, it is recommended that the City Council formally reauthorize the City's PEG fee by way of an urgency ordinance (which would be in effect immediately and before AT&T's state franchise expires) followed by a regular ordinance for the same action (in the event the urgency ordinance is challenged). This proposed action best ensures that the public continues to benefit from the local programming available due to PEG funding for facilities for Tri-Valley Community Television (TV 30). The cities of Dublin and San Ramon are expected to take similar actions to reauthorize their PEG fees, even though those cities' codes have similar automatic reauthorization language as Pleasanton's code. Submitted by: Fiscal Review: Approve by: Sean elch Tina Olson Nelson Fialho Interim Assistant to Finance Director City Manager the City Manager Attachments: 1. An Urgency Ordinance of the City of Pleasanton Reauthorizing the Public, Educational, and Governmental (PEG) Fee on State Cable Franchisees Operating within the City 2. An Ordinance of the City of Pleasanton Reauthorizing the Public, Educational, and Governmental (PEG) Fee on State Cable Franchisees Operating within the City 3. Ordinance 2013 § 1, approved October 19, 2010 (for reference) Page 2 of 2