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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Public Works
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DATE:
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November 3, 2008
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BOARD MEETING DATE:
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November 18, 2008
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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James C. Porter, Director of Public Works
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SUBJECT:
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Execution of a Amended and Restated Joint Exercise of Powers Agreement for Cable Television and Video Franchise Administration
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RECOMMENDATION:
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Adopt a Resolution authorizing the President of the Board of Supervisors to execute an Amended and Restated Joint Exercise of Powers Agreement by and between the City of Palo Alto, the City of Menlo Park, the City of East Palo Alto, the Town of Atherton, the County of San Mateo, and the County of Santa Clara to provide for cable television and video franchise administration and an enforcement process related to state franchise holders under the California Digital Infrastructure and Video Competition Act (DIVCA).
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VISION ALIGNMENT:
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Commitment: Responsive, effective, and collaborative government.
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Goal 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.
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The Agreement will allow for the continuation of the benefits associated with the collaborative efforts between agencies for cable television and video franchising within a specific area that are consistent with new state law.
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BACKGROUND:
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In July 1983 the Board authorized execution of a Joint Exercise of Powers Agreement (Joint Powers Agreement) and Joint Operating Agreement in October 1983 between the City of Palo Alto, Town of Atherton, City of Menlo Park, City of East Palo Alto, County of Santa Clara, and the County of San Mateo. The Joint Exercise of Powers Agreement was established for the purposes of obtaining cable television service for residents, businesses, and institutions within these jurisdictions, while the Joint Operating Agreement gave the City of Palo Alto the sole authority to grant and administer the cable franchise process on behalf of the Joint Powers.
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DISCUSSION:
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The current cable television franchise agreement is with Comcast and covers specific unincorporated areas of the County of San Mateo, including Ladera, West Menlo Park, and Menlo Oaks. The County’s subscribers constitute approximately 2 percent (2%) of the subscribers in the franchised area. The originally executed franchise agreement was with AT&T Broadband and was subsequently transferred to Comcast. The Midpeninsula Community Media Center, Inc. (Media Center) was designated to manage and operate the Joint Powers’ Public, Education, and Government (PEG) access facilities and channels provided pursuant to the Comcast franchise agreement.
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The California Digital Infrastructure and Video Competition Act (DIVCA) went into effect on January 1, 2007. DIVCA was established to create a streamlined process for granting video franchises in an effort to encourage the rollout of technology, competition, and expand customer choice. DIVCA has changed the franchising and regulatory structure for providing video services in California. State franchises are granted exclusively by the California Public Utilities Commission (CPUC) rather than local franchising authorities. AT&T has obtained a state franchise and Comcast was allowed to seek a state franchise subsequent to AT&T’s entrance into the local market. The CPUC granted Comcast a state franchise on January 2, 2008 that extends into the Joint Power’s service area.
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DIVCA allows for the Joint Powers to continue as the “local entity” and the City of Palo Alto can continue to collect franchise and PEG fees, perform audits, provide PEG oversight, and customer service with respect to state franchise holders who provide video services within the Joint Powers’ service area. Based on the changes in state law it is appropriate to substitute the existing Joint Powers Agreement and the Joint Operating Agreement with the proposed Amended and Restated Joint Exercise of Powers Agreement to reflect these changes and to continue to allow the City of Palo Alto to administer the cable television and video franchise enforcement and monitoring process for state franchise holders within the Joint Powers’ service area.
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The proposed Agreement continues the existence of the Joint Powers Authority consistent with DIVCA and provides for the centralization of the items included in Attachment A, which will be administered by the City of Palo Alto.
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The Agreement facilitates the continuation of a cooperative and cost effective approach to administering cable television and video franchising within the franchise area for the existing cable franchise and state franchises. The cities have executed the Agreement and the County of Santa Clara intends to execute the Agreement.
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The proposed Resolution and Agreement have been approved by County Counsel.
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FISCAL IMPACT:
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Execution of the Agreement will ensure timely payment and distribution of the franchise and PEG fees and provide for the continuation of the cost effective administration of cable and video franchises within the franchise area. The anticipated revenue from state franchises is unknown at this time as the new statewide franchise holders may attract cable customers or new customers who previously were not cable subscribers.
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There is no impact on the General Fund.
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Attachment:
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Attachment A
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