SR-6-O (32)
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JAN 1 t 199'1
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CM:CABLE:LG:C:\WP\CABLETVRATES
Council Mtg: January 11, 1994
Santa Monica, California
TO: Mayor and city Council Members
FROM: city Staff
SUBJECT: Recommendation that the City Council adopt a Resolution
to regulate basic cable television rates.
INI).'RODUCTION
This report recommends that the city Council adopt a resolution
which will enable the City of Santa Monica to regulate basio cable
TV rates consistent with FCC rules and Federal laws.
BACKGROUND
Because cable television companies use local streets and rights-of-
ways, local governments have always had authority over cable
companies. Since 1984 when the industry was deregulated across the
nation, basic cable service rates rose by 40% in one quarter of the
nation's homes, three times the rise in the consumer price index.
Due to these rate increases and general customer dissatisfaction
with cable TV services, the Congress enacted the Cable Television
and Consumer Protection and Competition Act of 1992.
This Act
provides an opportunity for local authorities to once again
regulate cable rates and many aspects of cable service. The Act
sets up procedures and standards for the local authorities to
become certified by the FCC in order to regulate basic cable TV
rates.
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DISCUSSION
The City has been certified by the FCC to regulate basic cable
rates. In order to commence regulating rates, the FCC requires
that local authorities adopt rate regulations consistent with the
Commission I s regulations for basic cable service. This requirement
may be fulfilled by adopting a resolution indicating that the city
will follow those regulations established by the FCC for regulating
basic service tier cable television rates.
The City has 120 days to adopt these regulations following its
certification (period ends Feb 7, 1994). The City may begin to
regulate rates after adoption of these regulations and after the
City notifies the cable operator that the City has been certified
and has adopted the required regulations.
In order to ensure that Cable operators do not raise rates while
local authorities are completing this process, there is a rate
freeze in effect until Feb 15, 1994.
Our neighboring Century franchisors, the Cities of Los Angeles,
West Hollywood and Beverly Hills have also been certified to
regulate rates.
FINANCIAL/BUDGETARY IMPACTS
There are no budget or financial impacts associated with the
recommendation contained in this report.
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RECOMMENDATIONS
It is recommended that the City Council adopt a resolution to
enable the City to regulate basic cable TV rates.
Prepared by: Laura Greenfield, Cable TV Manager
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CA:JL:LMC: atty\muni\laws\cable. res
City council Meeting 1-11-94 Santa Monica, california
RESOLUTION NO. 8708
(City council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA
AUTHORIZING THE CITY TO REGULATE
CABLE TELEVISION RATES AND COSTS TO THE
MAXIMUM EXTENT PERMITTED BY LAW
WHEREAS, the City of Santa Monica is a municipal government
within the State of California;
WHEREAS. upon the adoption of the 1992 Cable Television Act.
federal law permits local cable television franchising
authorities to regulate certain cable service matters inclUding
basic service tier cable television rates and associated
equipment costs;
WHEREAS, the City of Santa Monica is such a local cable
television franchising authority and desires to regulate such
matters;
WHEREAS, in order to regulate such matters, the local cable
television franchising authority must be certified by the Federal
Communications commission to do so, and the City of Santa Monica
has been certified for this purpose;
WHEREAS, the city of Santa Monica intends to regulate such
matters to the maximum extent permitted by law and in compliance
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with and according to the regulations established by the Federal
Comrnunlcations Commission;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The city Council hereby adopts those regulations
established from time to time by the Federal Communications
Commission for the regulation of cable television rates and costs
as the regulations applicable in the City of Santa Monica for the
regulation of cable television rates and costs.
SECTION 2. The City council hereby adopts its procedures
for public hearings before the City Council as the public
participatlon procedures for the regulation of cable television
rates and costs, and such pUblic hearings shall provide a
reasonable opportunity for the consideration of the views of
interested parties in accordance with federal law.
SECTION 3. 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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I OSEPH LAWRENCE
_~cting city Attorney
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Adopted and approved thIS 11th day of January, 1994
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~1 Mayor
I hereby cemfy that the foregomg Resolution No 8708 (CCS) was duly adopted at a
meetmg of the CIty CouncIl 11th day of January. 1994 by the followmg vote'
Ayes
CouncIlmembers
Abdo. Genser, Greenberg, Holbrook. Olsen. Rosenstem
Noes CouncIlmembers
Abstam CouncIlmembers
Absent" CouncIlmembers'
Vazquez
ATTEST
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City Clerkl