R-9112
CM:KKK:ckl:f:\cmanager\cable\reso 1217
City Council Mtg. Dec. 17, 1996
Santa Monica, California
RESOLUTION NO. 9112 eCCS)
(City Council)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA
ADOPTING A RATE ORDER REGARDING
EQUIPMENT AND INSTALLATION RATES
FOR CENTURY SOUTHWEST CABLE TELEVISION, INC.
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
WHEREAS, the City of Santa Monica (the "City") became certified to regulate basic Gable
service rates and associated charges as of October 7, 1993, and has followed regulations prescribed
by the Federal Communications Commission ("FCC") for the regulation of the basic service tier and
associated equipment, installation, services and charges (the "FCC Rules"); and
WHEREAS, Century Southwest Cable Television, Inc. (the "Company") submitted an FCC
Form 1205 to the City on November 6, 1995 for equipment and installation rates, and an identical
FCC Form 1205 on February 1, 1996 as part of its annual FCC Form 1240 basic service tier rate
filing (collectively, the "Rate Filings"); and
WHEREAS, on November 28, 1995, the City extended the review period for the November
6,1995 FCC Form 1205 until March 5,1996; and
WHEREAS, on January 9, 1996, the City Council adopted an accounting order preserving
the City's right to order rate refunds if after March 5, 1996, the City found Century's proposed rates
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for equipment and installation unreasonable; and
WHEREAS, Century was permitted under the FCC Rules to implement its equipment and
installation rates in accordance with the November 6, 1995 FCC Form 1205 on March 6, 1996,
subject to the City's right to adopt a rate order and order rate refunds; and
WHEREAS, pursuant to agreements with Century, the City will review at a later date the
reasonableness of Century's equipment and installation rates between July 15, 1994 and March 5,
1996; and
WHEREAS, the City issued a public notice seeking written comments from interested
parties on the Company's proposed rates, and the Rate Filings were made available for public
inspection in order to obtain comment from any interested party; and
WHEREAS, the City Staff has made a recommendation to the City Council ("Council")
regarding the Company's rates based on: (a) information contained in the Rate Filings; (b) the
assumed accuracy of that information; ( c) comments, evidence and information from interested
parties; (d) the draft rate report prepared by the City's financial consultant; ( e) the Company's
comments on the draft rate report; and (f) the financial consultant's rate report ("Report"); and
WHEREAS, the Council has considered the City Staffs recommendations and the reasons
therefore; has received and considered comments from the public; has reviewed and hereby adopts
(and by this reference incorporates herein), as appropriate and to the extent not inconsistent with this
Rate Order, the findings, assumptions and other information set forth in the financial consultant's
Report; and
WHEREAS, the Company has the burden of proving by a preponderance of evidence that
its rates for equipment and installation are reasonable under the FCC Rules, 47 C.F.R. S 76.937(a);
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NOW, THEREFORE, IT IS ORDERED THAT:
1. The maximum permitted rates for equipment and installation charges from March
6, 1996 forward are set forth below:
Maximum Permitted Ratel
Equipment & Installation
Hourly Service Charge
Unwired Homes
Prewired Homes
Additional Outlet (initial trip)
Additional Outlet (separate trip)
Changing Tier (Addressable)
Remote Control Device Type I (Basic)
Remote Control Device Type II (Universal)
Converter Box (Non-Addressable)
Converter Box (Addressable)
$22.40/per hour
34.95
20.61
12.32
19.71
1.99
.26
.89
.43
2.64
The equipment and installation rates set forth in this Paragraph shall remain in effect until the date
in 1997 the Company is permitted by the FCC Rules to adjust such rates pursuant to its next FCC
Form 1205 filing.
2. The Company shall refund that portion of the rates (plus interest) paid by subscribers
for the equipment and installations described in Paragraph 1 to the extent such rates exceed the rates
approved in Paragraph 1. The Company shall not offset refunds by the amount of any discounts
provided to subscribers on the equipment and installation rates subject to this Rate Order. The
refund period shall run from the date the Company implements the refunds required by this Order
1 All rates listed in the column entitled "Maximum Permitted Rate" exclude franchise
fees and utility users taxes.
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back to March 6, 1996. With respect to each affected subscriber entitled to a refund, the Company
shall implement the refunds within sixty (60) days after the date of this Order.
3. Within five (5) days after the date of this Rate Order, the Company shall submit a
written plan to the City Managerwhich, at a minimum, shall set forth the Company's method of
providing refunds to subscribers (plus interest) pursuant to Paragraphs 1 and 2; identifies the basis
for the calculation of the amount of refunds; identifies the amount of the refund; identifies the
applicable interest rate and explains how it was calculated; provides the actual rates charged
subscribers for equipment and installations each month during the refund period; and explains how
the rate refunds ordered herein shall be implemented. Such plan is subject to the City Manager's
review and approval. The Company's obligation to submit such plan shall not affect the Company's
obligation to implement rate refunds, as set forth in Paragraphs 1 and 2.
4. The Company shall adjust its current rates for equipment and installation to the levels
set forth in Paragraph 1 within 60 days after the date of this Order.
5. The Company may not increase the rates for any of the items listed in Paragraph 1,
nor may the Company institute new charges for other types of service, equipment or installations
associated with the basic service tier which are not listed in said Paragraph, without first complying
with applicable law or regulation, including the FCC Rules.
6. The Council reserves the right to modify this Rate Order if, at any time, it determines
that information the Company provided to the City is incorrect in any material manner.
7. The City Manager is ordered to mail a copy of this Rate Order to the Company,
provide appropriate public notice of this Rate Order, and make a copy of this Rate Order available
to any person upon request.
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8. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and
thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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Marsha Jones I
City Attorney
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Adopted and approved this 17th of December, 1996.
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I hereby certify that the foregoing Resolution 9112(CCS) was duly adopted at a meeting
of the City Council held on the 17th of December, 1996 by the following vote:
Ayes:
Councilmembers:
Ebner, Feinstein, Genser, Greenberg, Holbrook, O'Connor,
Rosenstein
Noes:
Councilmembers:
None
Abstain:
Councilmembers:
None
Absent:
Councilmembers:
None
ATTEST:
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City Clerk