Loading...
SR-6-E (76) , . 6E CM:KKV ckl f \share\rateord Santa Monica, cal~fJi~!J 9 199't City Council Mtg.-Nov. 29, 1994 TO Mayor and City CounCll FROM City Staff SUBJECT: Recommendation to Approve a Resolution Issuing an ACCQUnt1ng Order Regard1ng BaS1C Serv1ces Rates and Associated Charges of Century Southwest Cable Telev~sion, Inc. INTRODV"CTION Th~s report recommends that the C~ty Councll issue, by resolutlon, an II account1ng orderll to Century Southwest Cable Television, Inc (11 Century") WhlCh wll1 provide additional t~me for City staff to reVlew supplemental information recently submitted by Century 1n support of ~ts charges for cable televis~on serVlces for the period from July 15, 1994 to the present BACKGROUND The C~ty has been cert~fied by the Federal Communicat1ons Comm1ssion (FCC) to regulate basic cable television rates (which includes the "basic cable" tier and rates for assoclated equipment, lnstallat~on and service) consistent w~th FCC regulat1ons. Pursuant to these regulat1ons, a cable company must Justify the rates ~t charges as reasonable in accordance with federally-devised formJlas The Clty serves as the lmplementing agency for determ1ning compllance with federal regulatlons. NOV 2 9 199It 1 6E The FCC has dlv~ded the rate regulation analys~s and dec1s~on- making process 1nto several time periods. The C~ty Counc~l adopted a rate order on July 19, 1994 wh~ch a) established Cen::ury's permltted rates for the basic cable serV1ce tier and associated equipment, 1nstallation and serVlces for the perlod from September 1, 1993 to July 14, 1994j and b) ordered refunds for overcharges for the basic serVlce tier and for certa1n installatlon rates during that perlod. Century appealed the City's rate order and the matter is now pending before the FCC Presently, the City is revlew1ng rate lnformation from Century for the perlod beginn1ng July 15, 1994 (FCC Form 1200 and associated forms) . Dependlng on the outcome of this ar.alysls, Century Cable customers may also be entltled to refunds for SOMe portlon of charges made since July 15, 1994, ln addition to the refunds prevlously ordered. The FCC has set forth speclf1c procedl..:.res for franch1s~ng authorities and cable companies to follow in thlS FCC Form 1200 Series reVlew process. The C1ty and Century have been proceedlng in accordance wlth these requlrements over the past few months The Clty received Century's FCC Form 1200 on August 12, 1994 The lnformation contained ln lt was not sufficient for the Clty to make a rate determ1nation On September 7, 1994 the Clty extended the 2 period durlng Wh1Ch the Clty could reVlew the 1nformation provided by Century to December 10, 1994 due to the need for Century to provlde additional information. On October 11, 1994 the City sent Century a Supplemental Informat1on Request and received information from Century on October 26, 1994. The City needs additional time to review Century's response and may need additional informatlon from Century before maklng a rate declsion concern1ng the reasonableness of Century's rates for the period. Because essentlal informatlon was rece1ved on October 26, 1994 and must be analyzed, C1ty staff believes that it 1S prudent to officially extend the City's review perlod beyond December 10, 1994 and yet preserve ltS r1ght to make a rate determlnat10n and order refunds that can be retroact1vely applled back to July 15, 1994. In order to accomplish th1S extenslon, it is necessary to 1ssue this account1ng order. BUDGET IMPACT There 1S no City budgetary impact result1ng from the issuance of this accounting order 3 . RECOMMENDATION City Staff recommends that City Councll adopt the attached resolut~on issuing an accounting order to allow further time for the City to reach a rate dec~s~on regard1ng the reasonableness of the basic serVlces rates and assoclated charges of Century Southwest Cable Telev~s~on, Inc for the period commencing July 15, 1994. Prepared by: Lynne C. Barrette Ass1stant City Manager Kate Vernez Sen10r Management Analyst Linda A. M~lls-Coyne Deputy City Attorney Attachment: Resolut~on 4 --- ----- --- . .~ CM:KKK:ckl.F \share\ratereso Santa Mon1ca, Callforn~a City Council Mtg.-Nov. 29, 1994 RESOLUTION NO 8839 (Clty Councll) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING AN ACCOUNTING ORDER REGARDING BASIC SERVICES RATES AND ASSOCIATED CHARGES OF CENTURY SOUTHWEST CABLE TELEVISION, INC. FOR THE PERIOD COMMENCING JULY 15, 1994 WHEREAS, the C1.ty of Santa Monlca (the '1 C ~ t Y 11 ) became certlf~ed to regulate baslc cable serv~ce rates and assoc~ated charges as of October 7, 1993, and has followed regulations prescrlbed by the Federal Communicatlons Comm~sslon (llPCC" ) for the regulation of the baslc service tier and associated charges (the II FCC Rules") i and WHEREAS, the Clty has not yet completed lts review of the FCC Forms 1200, 1205, 1210 and 1215 subm1.tted by Century Southwest Cable Telev~slon, Inc. (the II Company" ) and reached a decision regard~ng the reasonableness of the rates for baslc se~Jice and assoclated equipment, installat1.on and serV1ce charged by the Company; and WHEREAS, the C~ty ~s not yet in a pos~tlon to issue a rate decision at thlS t~me since the Clty needs additlonal t~me to rev~ew the supplemental ~nformatlon submitted by the Company 1n support of 1ts FCC Forms; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AND ORDER AS FOLLOWS: - , "- SECTION 1. Pursuant to 47 C.F.R. Section 76.933(c} of the FCC Rules I the Company 1S hereby directed, from the date of thlS Order untll the date the Company implements any rate deClslon lssuea by the Clty, to keep an accurate account of all amounts recelved, and on whose behalf such amounts were paid, for , oaS1C serVlce and assoclated equlpment, lnstallatlon and serVlce SECTION 2: The Company may not increase its rates for basic cable serVlce, and for associated equlpment and 1nstallat1on, nor may It lnst1"Cute new charges for other types of servJ.ce, equipment or lnstallation assoclated with the basic service tler, without flrst complYlng wlth the FCC Rules, EICl udi:1.g any modiflcatlons or amendments to the FCC Rules. SECTION 3. The City reserves all rlghts it ~as under the FCC Rules, lncluding the rlght to establlsh reasonable rates and order rate refunds, lf the City finds that the Company's rates are unreasonable under the FCC Rules I lncluding any modif~catlons or amendments to such regulations SECTION 4. The Clty Manager shall cause to be delivered a copy of this Order to the Company prlor to December lO, 1994. SECTION 5. The City Clerk shall certlfy to the adoptlon of this Resolut~on, and thenceforth and thereafter the sa~e shall be in full force and effect. APPROVED AS TO FORM: - -i1 L~~ "'-tUvz.-' , Ci.~y Attorn (, ( ~ -:7 _ ') - Adopted and approved tlus 29th of November, 1994 2v tPy{ Ma or I hereby certIfy that the foregomg ResolutIOn 8839 (CCS) was duly adopted at a meetmg of the CIty CouncIl held on the 29th of November, 1994 by the followmg vote' Ayes Councllmembers Abdo, Genser, Greenberg,Holbrook, Olsen, Rosenstem, Vazquez Noes Councllmembers None Abstam Councllmembers. None Absent Councllmembers: None ATTEST ~~/A~ ~ --,. CIty Clerk