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CABLE MODEM SERVICE NOT SUBJECT TO FRANCHISE FEES Recently the Federal Communications Commis- are immediately stopping payment of cable franchise sion (FCC) issued a declaratory ruling finding that fees on cable modem revenues. Cities and counties cable modem service offered over a cable system is that have received such letters are requested to send neither a telecommunications service, subject to copies to the NLC, 1301 Pennsylvania Avenue NW, state or federal telecommunications, nor a cable Suite 550, Washington, DC 20004. Attn: Cameron service subject to local cable franchise requirements Whitman and Juan Otero. or to federal cable service regulations. At the same time, the Commission~raised a series of questions Please watch for and respond to requests for about how this "interstate information service" information that will be developed and distributed should be treated with interactions with local com- soon to determine the revenue loss to cities. This munities and local cable modem subscribers, important information will be compiled into a report to use in building the coordinated court case, The National League of Cities (NLC) is develop- replying to the FCC, lobbying Congress and educat- lng a comprehensive strategy to challenge the FCC's lng the public through a well planned media cam- actions. The NLC is coordinating its efforts with paign. The League will continue to keep you posted other national associations in addition to state on any new developments. Leagues, and is also pursuing legislative and legal remedies. To ensure that municipalities speak with one voice on this important issue, the NLC has CITIES URGED TO PARTICIPATE IN requested that state Leagues refrain from taking immediate action, and instead coordinate efforts HOUSING SURVEY with the NLC. The Non-Profit Housing Association of Northern California (NPH) and the Califorma Coalition for Rural The six largest cable companies (Time Warner, Housing (CCRH) have recently distributed a survey AT&T, Comcast, Charter, Adelphia, and Cox) have sent that will be used to produce a report on inclusionary letters to all local franchise authorities stating they housing in California. No comprehensive data have been collected or~ this topic since 1994 when CCRH PUC RESPONSE from page 1 · · · · · · · issued its report entitled "Creating Affordable Com- munities: Inclusionary Housing Programs in Califor- Pacific Gas & Electric (PG&E) and Southern nia." California Edison (SCE) recently notified cities that franchise fees might be reduced by up to The report will be valuable to both local govern- 23% if the CPUC decision on CDWR energy ment staff and elected officials that want updated purchases and related franchise fees was not information on which local governments have resolved. The ALJ's request for comments inclusionary housing practices and what the impact of could resolve this issue. San Francisco was those programs has been. Broad participation is _joined in the response by the cities of Berke- crucial and in appreciation of your efforts, the NPH ley, Davis, Santa Rosa and Sunnyvale. A copy and the CCRH will distribute a free copy of the report of the response was distributed through the to all local governments that complete the survey. city attorney's listserve and is posted on the League's Web site (www. cacities.org) under Surveys were mailed by NPH and CCRH to all cities the city attorney's Web page. Final comments and a notification will soon be sent by the League on to the ALJ are due by April 26. Cities with its HCED listserve. NPH and CCRH are asking you to franchise agreements with PG&E and SCE are return the survey by May 10, 2002. If you have any encouraged to review the comments and send questions, please e-mail doug@nonprofithousing.org responses by the final comment date. or contact Amy Cardace at (510) 530-6979. Visit the League's Official Web Site--www. cacities.org PRIORITY FOCUS/PAGE 3