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6.5.C. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> September 24, 2012 <br /> SUBJECT <br /> An Ordinance Regulating Video Franchises Pursuant to DIVCA <br /> RECOMMENDATION <br /> Waive Second Reading and Adopt An Ordinance Enacting New Article IV to Chapter 11 <br /> Relating to Video Service Franchises. <br /> BACKGROUND &ANALYSIS <br /> This ordinance came before the City Council for first reading and introduction at the <br /> September 10, 2012 City Council meeting and is described and analyzed in detail in the <br /> report submitted in connection with the ordinance. <br /> This report concerns a proposed ordinance to add Article IV to Chapter 11 (Privately <br /> Owned Utilities) to the Redwood City Municipal Code, for the purpose of implementing <br /> the provisions of the Digital Infrastructure and Video Competition Act of 2006 (DIVCA), <br /> codified in California Public Utilities Code Section 5800, and following. The ordinance, if <br /> enacted, would authorize the City to fully exercise the regulatory authority that it retains <br /> under DIVCA, including to continue to collect franchise fees and public, educational and <br /> governmental (PEG) access fees. The Finance Subcommittee of the City Council has <br /> reviewed this proposed ordinance and recommended that the City Council consider it <br /> for introduction and adoption. <br /> ALTERNATIVES <br /> 1. The City Council could choose not to take any action and allow the City and state <br /> video franchise holders to continue to operate without a DIVCA-compliant <br /> ordinance. <br /> 2. The City Council could direct staff to make other changes to the proposed <br /> ordinance. <br /> FISCAL IMPACT <br /> Overall, the City will see a modest increase in PEG receipts as a result of this change <br /> and all PEG funds will continue to fund equipment and facilities used by the City for its <br /> PEG programming. The receipts may also increase to the extent that cable operators <br /> are providing service to new customers who were not previously cable subscribers. The <br /> City will also avoid the costs of potential legal challenges over the financial and other <br /> obligations of current and future cable operators. <br /> Page 1 of 2 <br />