SR-6-G (80)~~jj~ 93S~v cc~s ~~
APR ~ ~ ~
CM KKV ckllf Icmanagerl cablelrorder0~13.doc
City Council Meeting Aprd 13, 1999
Santa Monica, California
To Mayor and City Council
FROM City Staff
SUB,~ECT RecommendatEon to Hold a Public Heanng and Adopt Resolutian
Regarding A Rate Order for Basic CabEe Service, Equipment and
Installation Rates for Century Southwest Gable Tele~ision, Inc
I ntrod uction
This report recommends that the C~ty Counc~l adopt a resolution issuing a rate order to
Century Southwest Cabl~ Tele~ision, Inc {"Centt~ry" or "the Company") The rate order
establ~shes basic cable senrice, equrpment and rnsta~lat+on rates and orders Cent~rry to
issue refunds as appropriate
Backqround
The Ci#y has been certified by the ~ederal Cammunications Commission {FCC) to regulate
bas~c cable #elevESion rates {which includes the "basic cable" #ier and rates for assac~ated
equi~ment, ~nstallation and services) Pursuantto FGC regula#ions, a ca~le company must
~ust~fy the rates rt charges as reasonable ~n accorda~ce w~th feclerally devised form~las
The C~ty serves as the implementing agency for determmir~~ Cenfury's compliance with the
federal regulations
1
A~? 131999
The FCC sets farth specific procedures for franchising authonties and cable companies to
follow m establishing rates The City and Century have followed these procedures The
October 39, '1997 settl~ment of tssues regardmg Century Select and ~aas~c rates does not
a~aply to Centur~+'s annual bas~c cable service, equ~pment and Er~sta!lat~orr ra#e fil~ngs wh~ch
~s tMe sublect of th~s report
Century submitfed ~ts rate Justifcation to the Ci#y on May 'I, 1998 The City re~iewed the
rafe filings to (1) uncover deficienc~es in Cenfury's comQletian of the rate filings, and (2)
~er~fy the information the Company submEtted A supplemental requestfor information was
se~t to Century on No~ember 25, 1998 The Company responded on December 11, 1998
The City has advised Century of the follawing problems with the~r rate ~ustif~cation
* Gentury requested a digital installation rate of $118 35 based on its assumption that
~t will take 4 hours to complete such instalfation Century fa~led ta provide time
stud~es ar other documentat~on to suppart this number Century stated that "based
on prelim~nary tes#ing and techn~cal and operational discussions with other cable
operators, Century has determ~ned tha# the 4-hQUr average used m the FCC Farm
1205 filmg conservati~efy approximates the time ~t takes to perfarm a d~gital
installatkon "
2
Ge~tury stated during the c4urse of the City's review thattheir subscribers would want
to know a fixed rate for a digita! mstallation and would nat be satisfied with 1~aving th~s
mstal[ation perFormed on an hourly bas~s Howe~er, Cent~ry did not subm~t time
studies ar other data in support of the four haur estimate
Therefore, the City does r~ot have support for a 4 hour installation FCC rules permit
operatars to charge either an average rate or charge the actual tim~ incurred
multiplied by the hourly servECe charge
Since Century has not met ~ts burden af demonstrating the reasonableness of the
average installation t~me, staff recommends that Century charge subscribers based
on the actua~ time ~t takes #o perForm this installation The rate woufd be the hourly
serv~ce charge of $29 59 times the actual amount ofi haurs spen# an installat~on
~ Century stated that it had not as yet introduced the digital package, and pro~ided only
a cost of $ 73 far the digital remate based on current negotiations Staff recommends
appra~al of the digital remote controi rate contingent on Century submitting
dacumentat~on shawing it purchased the remote control dev~ce at the cost set forth
in its rate filing lf t~e actual cost differs, the rate will need t4 be ad~usted accardingly
3
• Cent~ary included a I~cense fee of $15 m calculating its digital con~erter rate, and
pro~ided a confidential proposal documenting the licertse fee Staff recommends
approval of the license fee as propossd m calculat~ng the digital converter rate
However, if there a~e ~ariances be#ween the proposa! cost and actual cost, the rate
should be ad~usted accordingly
Public comments were rece~ved on a broad ran~E of Century service, rate and franchise
issues Commer~ts related to rates charged by Century Cable for basic cab[e se-vice,
equ~pment and installatian costs for this time perioc~ were taken into account rn staff's
recommendation and are presented in Attachment C far Council's reference
Based on the ad}ustments suggested abo~e, the financial consultant's report, and FCC
permitted increases, the recommended maximum permitted ra#es are set forth be~ow
SUMMARY OF RATES
Century Recornrnended
Computed Rates Ad~usted Rates
Basic Ser~~ce Rate, exclus~ve of
Franchise Fees and FCC
regulatory fees $24 07 $24 07
Equipment and installafion Rates
Haurly Serv~ce Gharge 29 59 29 59
Unwired Homes 46 16 46 1 B
Prewired Homes 27 22 27 22
4
~igital Installation (Note A) 118 35 29 591hour
Additional ConnectEOns {mitial) 16 27 16 27
Add~tional Connect~ans {separate) 26 44 26 04
Charge for Changing Tiers (addressable} 1 99 1 99
Lease flf Remote Controls
Standard Rernote 24 24
Universal Remote 98 98
Digital Rernote (Note A) 73 73
Lease of Con~erter Boxes
Non-Addressable 68 68
Century Smartbox {addressable) 2 25 2 25
Digital Con~erter Box {Note A} 9 7$ 9 7$
Nate A
The digitaf equipment and installation rates do not appear on Century's rate card as they have nat
offered digital ser~ice as of the date of this report
The equipment and installation rates recommended by the City as franchising authority wEll
remain in effect until the date in 1999 that Century is permitted by the FCC Rules to again
ad~ust their rates in t~e prescribed Form
The Council reserves the right to modify this Rate Order if, at any time, it determ3nes that
information the Company prov~c~ed to the C~ty is incorrect in any material manner
Budget Impact
No City budge#ary impact results from the issuance af ~his rate order
5
Recommendation
Staff recammends that C~ty Council adopt the a#tached resolution issuing a ra#e order to
establish the rnaximum permitted rates for basic cable service, equipment and installation
charges during the per~ad under re~~ew, and to order refunds, if any, of o~erpayment for
such charges during such period
Prepared by Kathryn Vernez, Assistant to City Manager for Government Relat~ons
Joseph l.awrence, Assistant City Aitorn~y
Robin Gee, Cable Manager
Attachments Attachment A - Resolutian
Attac~ment B - Financial Report
Attachment G-~etters From the Public
6
L
~~rTae~n~ a
CM KKV ckllf cmanagerlcablelreso413 dac 5anta Monica, California
RESOLlJT10N NO 93g6
(City Councd Series)
A RESOLUT~ON OF THE C1TY COUNClL
OF THE CITY ~F SANTA MON{CA
ADOPTING A RATE ORDER REGARD~NG
THE BASIC CABLE SERVICE TIER AND
THE EQUIPMENT AND INSTALLATION RATES FOR
CENTURY SOUTHWEST CABLE TELEV~SION, iNC
WHEREAS, the City af Santa Monica (the "City") became certified to
reg~late basic cable serv~ce rates and associated charges as of Qctober 7, 1993,
and has foflowed regulat~ons prescr~bed by the Federal Communications
Commission ("FCC"} far the r~gulafion of the basic service tier and assoc~ated
eq~ipment, ms~ailatEOn, services and charges (the "FCC Rules"), and
WHEREAS, Century Southwest Cable Telev~sron, knc (the "Company")
submstted FCC Fo~ms 1240 ar~d 1205 to the C~ty o~ May 1, 1998 far the bas~c
cable ser~ice tier and equ~pment and mstallation {collectively, the "Rate Filings"),
and
WHEREAS. the Company, as perm~tted under t~e FCC R~les,
implemented ~ts basic service tie~. equ~pment an~ installat~on rates in accordance
with the Rate Fiings an August 1, 1998, s~b~ect to the Caty's right to adopt a rate
order and order rate refunds, and
WHEREAS, the City issuecf a public notice seeking written comments
from ~nterested parties on #he Company's proposed rates, and the Rate Filings
~
were made a~ailable for public rospection in order to obtain comment ftom any
interested party, and
WNEREAS, t~e City staff has made a recommendat~on to the Gity
Caunc~l {"Council") regarding the Campany's rates based on (a) infarmation
contamed in the Rate F~~mgs, (~) th~ assumed accuracy of that information, (c)
comments, ev~dence and intormatior~ from interested parties, (d) the ciraft rate
report prepared by t~e City's financ~al consultant, (e} the Com~any's comments
on the draft rate report, and {f} the financial consultant's final rate report ("Final
Repart"~, and
WHEREAS. the Company has the burden of proving by a
preponderance of evidence that i#s rates for the basic senr~ce #ier, equi~ment ancf
mstallations are reasonabfe ~r~der the FCC Rules, 47 C F R§ 76 937(a), and
WHEREAS, FCC Rules permit a franchising authority ta establish
maximum permitted rates fior eq~ipment and ir~stallations based on th~ "best
information a~ailable" where a cable operator fails to meet its burden af prov~ng
that its ~roposed rates are reasanabie, 47 C F R§ 76 937(c), and
WHEREAS, #he Company's rate card states that it wifl charge
subscri~ers "~ime and materials for all non-s#a~dard or custom work", and
WHEREAS, FCC Rules requrre that a cable operator mclude in the
equ~pment basket on the FCC Fflrm 1245 ail tt~e °ti~rect and ~nd~~'ECt materfa{ and
labor costs af mstalling customer equipmertt,° 47 C F R§ 76 923{c)
(emphasis added}, and
~
.
3
WHEREAS, the cost of mater~ats for drops are e~ther °cap~talized as
d~stribution plant or separately chargeable to customers in equipment prices," In re
Impiementation af Sections of the Cable Television Consumer Protection and
Campetition Act of 1992 Ra#e Requfation, 9 FCC Rcd 1164 at ¶ 69 (1993), and
WHEREAS. the FCC regulations state that an operator may charge far
~nstallations based an either #he hourly service charge "mult~plied by the actual time
spent on each mdEVidua~ mstallatior~, or the hourly service charge "multtplied by the
aWerage time spent on a specific type of mstallat~on," 47 C F R§ 76 923(e}, and
WHEREAS, for r~onstandard and custom ~nstaUat~ons, the Gaunc~l
concludes that the FCC Rules permit the Company to charge the Haurly Service
Charge of ~29 59 mulfi~lied by the actual time spent or~ a speerfrc type of
installation, and
WHEREAS, the Company states t~at "based an prelim~nary testmg and
technical ar~d opera#GOna! dGscussions with other cable operatQrs, the Company has
deterr-n~ned that the 4 hour average ~sed in the FCC Form 'i205 filing
conservatively appraximates the t~me it takes to perform a digital mstallation", and
WHEREAS, the Company did na~ pra~ide the resul~s of such preliminary
testing, nor pro~ide any time studies or other documenta#ion demonstratmg the
a~erage trme ~t takes to camplete such an instaflation, and
WHEREAS, the Counc~l finds that the Company has failed to meet ~ts
burden of esfablishiRg an a~erage tEme of four (4) hours for ciigital installations, and
WHEREAS, the FCC Rufes would permit t~e Company to charge its
Hourly Ser~ECE Charge for digital mstallations, and
,
~
t
WHERAS, the Cour~cil concludes #hat the Houriy Servace Charge of
$29 59 set forth below is a reasonable per hour charge for d~grtal installa~ions, and
WHEREAS, the Company md~cates that ~t has not yet pro~~d~d
subscnbers ~ts digital converter and dEg~tal remate control de~ice. and
WHEREAS, the Campany has prov~ded cast estimates for the digital
canverter and d~grtal remate control devtce, but has not demonstrated #hat it has
actually purchased the equipment at such prices, and
WHEREAS, the Council has cons~dered the C~ty stafFs
recommendations and the reasons therefore, has received aRd cons~dered
comments from the public, has re~iewed and hereby adapts (and by this
re#erence ~ncorporates herein), as appropnate and to tY~e extent not ~r~cons~stent
wit~ this Rate Order, the fmdmgs, assumpt~ons and other m#ormat~an set fort~ -n
the financiai consultant's Final Report,
NOW, THEREFOR~, the City Cour~cil of the C~ty of Santa Monica does
ordain as follaws
1 The maximum permitted rates a~ and after August 1, 1998 for the
basic seNice tier and the equipment and mstallation cE~arges set forth below are
as follows
Maximum Permitted Rate~
1:~11 rates l~sted in this Rate Order exclude franchise fees
4
Bas~c Service T~er $24 07
Equipment & Installation
-- Hourly Ser~ice Charge ~29 ~9/per ho~r
{mclusive of ir~stallation materrais)
-- Unwired Homes 4fi 16
-- Prewired Homes 27 22
-- Dig~tal installat~on 29 591per hour
-- Additiar~af Outlet (mEtEal tr~p} 'f6 27
-- Additional Outlet (separate tr~p) 26 04
-- Changing Tier {Addressable) 1 99
-- Remate Control Device {Basic) 24
-- Remote GQntral De-r~ce {Universal) ~8
-- Converter Box (Non-Addressable) 68
-- Converter Box (Addressable} 2 25
The Council hereby tentat~vely approves the following maximum permitted rates
for digital converters and digitaf remote control de~~ces as of and after August 1,
1998, sut~~ect to #he Company submitting dacumentatiQn acceptable to the CEty
that 3t p~rc~+ased suct~ equtipment at the costs set forth i~ ~ts Farm 120~
Maximum Permitted Rate
-- Digital Converter
-- DEgitaf Remote Control Device
$9 78
$0 73
The Cauncil reserves the right to mod~fy the rates for the digital con~erter or #he
digital rernote contro{ device if the City determir~es that the Cam~any purchased
sucf~ equipment at a cast that difFers from that set fo~th ir~ the ~orm 1205 The
equipment a~d instalEatian rates set forth in this Paragrap~ s~all remam m effect
until the date m 9999 #he Company rs permitted by the FCC Rules to ad~ust such
rates ~ursuant to Ets next FCC Form 1240 and Farm 12~5 rate fi[mgs
~
S
2 The Company shall refund that portion of the rates (plus interest}
paid by subscribers for the basic sErvice tier and equipment and rnstaliat~ans
described in Paragraph 1 to the extent such rates exceed the rates a~~roved in
Paragraph 'f The Company shafl not offset refuncls by t~e amount af any
discour~ts provided ta subscribers on the basic ser~~ce tier, equipment and
ir~stallation rate5 sub~ect to this Rate Order The refund period shall run from the
date the Company ~mp{ements the refunds requ~red by thts Rate Order back to
August 1, 1998 With respect to each affected subscriber entitled to a refund, #he
Cam{~any shall implement the refunds withm sfxty (60} days after the date of this
Rate Order
3 W~thirt five (~) days after the date of this Rate Order, the Company
shall submit a written plan to the City Manager which. at a min~mum, shall set
farth the Com~any's method of providing refunds #o subscribers (plus mterest}
pursuant to Paragraphs 1 and 2, identifies the basas for the calculat~on of the
amount af refunds, ~d~ntifes the amount of the refund, identifies the applicable
interest rate and explains how ~t was calculated, provides the actWal rates
charged s~bscribers for equipment and mstalfatians each month during the
refund penod, a~d explains f~Qw the rate re#unds ordered herein shal! be
~mplemented Suc#~ plan Es sub~ect to the Ci#y Manager's review and appra~al
The Company's obligat~an to submtit such plan shall not affect the Compa~y's
oblfgation to implement rate refunds, as set forth m Paragraphs 1 and 2
6
~
_4
4 The Cam}~any shall ad~ust ~ts current rates for equ~~ment and
~nstallation to the le~els set forth in Paragraph 1 within 60 days after the date af
this Order
~ The Company may not increase the rates for any of the items listed
En Paragraph 1, nor may the Company institute new charges for other types of
ser~ice, equ~pment or ~nstallations associated w~th the basic service tier which
are not listed in said Paragraph, without first complying w~th applicabie ~aw or
regulation, including the FCC Rules
~ The Go~nc~l reserves the r4ght to mod~fy thES Rate Order ~f, at any
time, it determmes that ~nformation the Company pro~ided to the City ~s incorrect
in any mat~r~al manner
7 The City Mar~ager is directed to mail a copy of th~s Rate Order to the
Company. pro~ide appropriate public notice of this Rate Orr~er, and make a co~y
of this Rate Order a~ailable ta any person upon request
8 The City Clerk shall certify to the adoptron of this Resolution, and
thencefarth and thereafter the same sf~ail be in full force and effect
APPROVE~ AS TQ FORM
~ ~i
~ ;
.;~ ~
~ ~~~J~ ~
.~
Marsha Janes M~utrie
City Attorney
7
.
~
Adopted and app~a~ed this 13th ofi Apnl, 1999
~
~~~ ~~ ~~~ -- ._
P~m O`Co~nor, Mayor
I. Maria M Stewart. C~ty Cferk of the City of Santa Mon~ca, do hereby certify that
the foregoing Resolu~ron 9388 {CCS} was duly adopted at a meeting of the Santa
Monica City Council held on the 23rd of March, i 999 by the following ~ate
Ayes Counciln-~embers
Noes Co~r~c~lmembers
Abstain Counc~imembers
Absent Councilmembers
Femstein, Genser, HoEbrook, McKeown,
Q'Connar, Rosenste~n
None
None
Nane
ATTEST
. V~ ~~. ~~.~.aa~.~-
L
Maria M Stewart. C~ty C~erk
r'iTTACI~I+4E~T B
K.~rsER SCHEREA SC SCHLEGEL
CERTIFIEII PLBLIC ?iCCOi7~'TANTS
1$99 L STREET _\' W, SLTITE 702
W"ASFtII~GTO\, D G 20036
TEL (2021 466~4858
F ~X (202} 331-8312
February 3, 1999
Mr. Wil.liam Caok, Esquire
Arnold & Porter
S55 12th Street, tJ.W.
Washingtan, D.C. 2000~4
Re: FCC Farms 124D and 1205 filed with the City ot Santa
Monica Information Technology Agency by Century
Communications Corporatiaa
Dear Mr. Cook:
2ndependent Acco~xntants' Rapoxt
on Applyinq Aqreed-Upon Procedures
Yau have asked us to analyae the FCC Farms 1240 and 12~5,
filed on May 1, 199B with the City of Santa Monica, California
{"Santa Monica") by Century Communications Corporation ("Century")
regarding Franchise Community iTnit Identification Number CA0456.
The purpose af our analysis was to assist Santa Monica in its
determination a~ whether the rates proposed by Century for basic
service and equipment for its Santa Monica system are reasonable
under the regulations adapted by th~ Federal Communications
Commission ("FCC"), as such rate regulations have been amended from
~ime ta time.
We have performed the procedures enumerated at Exhibit I,
which were agreed to by Santa Monica, salely to assist Santa Monica
with respect to the determination of whe~her the basic service
rates and equipment rates proposed by Century are reasanable.
This engagement to apply agreed-upon procedures was performed
in accordance with standards established by the American Institut~
of Certified Public Accountants. The sufficiency of the procedures
is solely the responsibility of the specified users of the report.
Consequently, we make no rep~esentation regarding the sufficiency
of the procedures described at Exhibit I ei~her for ~he purpose for
which this repor~ has been requested or far any other purpose.
Whi1e our efforts involved ~he arialysis of accounting records
and other infprmation supplied by Century, we did not perform an
audit of Century's financial statements in accordance with
generally accepted auditing standards. Had we performed additional
procedures or had we made an examination in accordance with
generally accepted aud~,ta.ng standards, other matters might have
come to our attention that wouid have been repor~ed to you.
Furthermare, our report assumes that the information provided and
represen~ations made by Century are true and accurate. Our
ana~.ysis and tha.s report are a.ntended solely for use by Santa
Mon3ca for the purpose described above. This report is based on
work performed ta date and the regulations adopted by the FCC.
Copies of the FCC Forms 1240 and 12a5 suhmitted by Century
have been submitted under separate cover and are incorporated by
reference.
-2-
KAISEl~ SCHEI~E1~ SC SG~.EGEL
CENTURY COMM[TNICATIDNS CORPORATION
FORMS 1240 AND 1205
SUMMARY OF RATES
Centur3r Recammended
Computed Adjusted
Rates Rates
Basic Service Ra~e, exclusive
of Franchise Fees and FCC
regulatory fees $24.07 $24.07
Equipment and Installation Rates
Hourly Service Charge 29.59 29.59
Unwired Homes 46.16 46.16
Prewired Hom~s 27.22 27.22
Addt'1 Connections (initial) 16.27 16.27
Addt'1 Cannectians (separate} 26.04 26.Q4
Digitai Installation (Note A) 118.35 29.59/hour
Charge far Changing Tiers 1.99 1.99
Lease of Remote Contrals
Standard Remote .24 .24
Universal Remote .98 .98
Digital Remote (Note A} .73 .73
Lease of Convertez Boxes
Century Smartbox 2.25 2.25
Non-Addressable .68 .68
Di.gi~al Converter ~Note A~ 9.78 9.76
Note A
The digital equipment and installation rates do not appear on Century's
rate card as they have not o£fered digikal service as of the date of this
report.
-3-
KATSE$ SCI3EaE8 $C SGHLEG~L
Si]NIlKARY OF FINDINGS
This section presents a su~unary of the results of our analysis
for those items that, based on a review of the information provided
and pracedures performed, we believe should be considered by the
City of Santa Monica in its review of the FCC Forms 124~ and I.20S
submitted by Century and the rates proposed therein.
BA52C R.ATE
Based an the work performed at Exhibit I, we do not propase
any adjustiments to the Century computed Maximum Permitted Rate of
~24.07 for basic service.
EQUIPMENT AND TNSTALLATION RATES
Based on the work performed at Exhibit I, we do not proposed
any adjustmen~s to the Century computed Maximum Permitted Rates
outlined above except for the rate relating to digital installtion
as discussed belaw:
1. Diqital installation
W~ requested documentation to support the 4 hour installation
time for digital installation. Century £ailed to provide time
studxes or other documentation to suppor~ ~his nuu~ber. C~ntury
s~a~ed that «based an ~reliminary tes~ing and ~echnical and
operational discussions with other cable operators, Cen~ury
has determined that the 4 hour average used in the FCC Form
1205 filing canservatively approximates the time it takes to
perforx~ a digital installation."
Century stated during the course af our revievv that their
subscrihers would want to know a fixed rate for a digital
installation and would not be satisfied with having this
installa~ion perforzned on an hourly basis.
Howav~r, we do not have suppor~ for the 4 hour installation.
FCC ru~es permit operators to charge e~ther an average rate or
charge the actual time incurred multiplied by the hourly
service charge.
-4-
KAISER SCHE$L~'1~ SC SGHLEGEL
5ince Century has nat met its burden o~ demonstratiag the
reasonableness of the average installation time, we recommend
that Century charge subscribers based on the aetual time it
takes to perform ~his installation. The rate would be ~he
hourly service charge of $29.59 times the actual amount of
time spent on installatian.
We noted other issues relating to the digital equ~pment:
2. Diqita~ ~emote control
We noted that Century provided a letter detailing confiden~ial
negotiations for the cost of the digital remota. No remote
controls have been purchased. If Century purchases the remates
at such price, Century`s proposed rate is reas~nable. We
recommend that Santa Monica approve ~he digital remote control
rate contingent on Century submitting receipts showing that it
purchased the remote con~rols at the p~i~e stated in the
le~ter. If Century obtiains a different price, Century should
notify Santa Monica of the price, and the rate wi.ll rxeed to
be adjus~ed accordingly.
3. Diqital conver~er
We noted that Century pro~rided a detailed listing of the
compoxzents af the ~nit cost for ~he digital converter. Cen~urgr
provided invoices supporting the base cost of ~ach converter.
Included in the list of digital converter costs was an amount
for license fees. We requested documentation supportizzg the
license fee included in. the cost. Century provided a 1997
confidential proposal dacumenting the license fee. The
proposal set farth different license £ee options. Depending on
which option Century chooses, the actual fee could change from
what Century proposed.
Based on information to date and what Century has represented
will be the cost far the converter, we recammend that Santa
Monica approve the recommended adjusted digital converter rate
contingent an Century submitting receipts showing that it
purchased the digital converters at ~he invoice pra.ce stated
and that it selected the license tee option stated in the
confiden~ial documentation used in camputing this rate.
-5-
KAISEE SGtf rr.RFg ~C SCHI.L~'G£L
Cantury shauld notify Santa Monica of ~he final digital
conver~er cost and which license fee option i~ actua3ly
selects. If there are variances, the rate should be adjus~ed
accordingly.
4. Non-standard wark charqed usinq time and materia~s
We noted on the rate card that Century sta~es that it will
charge subscribers "time and materials for all non-standard or
custom work." The FCC rules clearly state that the hourly
service charge includes a rate o£ return component and an
expense aamponent which includes labor and materials.
Therefore, we recommend that Century be permitted to charge
the hourly service charge tixnes the actual amount of tim~
spent on such installations.
We have no responsibility to update this report far events and
circvms~ances occurring after the date ~f this report.
Very ~ruly yours,
re R. Sch el
ab~sm12499 rpt
-~-
KAISE~ SCHEI~tEA SC SCHLEGEL
CENT~RY COMMUNICATIONS CORPORATION
FORMS 1240 AND I2U5
~XHTBIT I
PROCEDURES
The procedures we performed included, but were nat limited to,
the following:
1. We received a copy oE the FCC Foxm 1240, setting rates as af
August 1, 199$, da~ed April 30, 1998 fi~.ed with the City of
Santa Monica by Century. We also received the attached Form
12Q5, dated February 10, 1998.
2. We assis~ed Santa Monica in preparing a supplernental request
for infor~ation in Nqvembex 1998.
3. We reviewed Century's response to the supplemental request for
information.
~k. We recomputed the FCC Forms 1.24Q and 1205.
5. We de~velaped an understanding af the assumptions and
computations used by Century in completing the FCC Farms 1240
and 1205 and analyzed the proposed rate in relation to the
explanations and information provided by Century.
6. We developed an understandi.ng of ~he computations required in
the Form 1240 as stated briefly below:
The Form 1240 is used to ~valuate regulated cable rates on or
after September 15, 1995 by giving regulated cable opera~ors
the 4ption of filing far rate adjustmez~,ts on an annual basis
instead of on the existing quarterly system.
The maximvm permitted rates for this period are camputed by
using seven segments:
Headend Upgrade Segment;
-7-
KAisEx Scx~x~a Sc Scx~.E~~i.
~xternal Costs Segment--six external costs are a~lowed ta be
passed thraugh directly to subscribers: programming fees
associated with channels added prior to May 15, 1994 or added
after May 15, 1994 using the Markup Methad, retransmissian
consent fees, copyright fees, cable specific taxes, franchise
related costs, and FCC regulatary fees;
Caps Method Segment;
Markup Method Segment;
Channel Residual Segment;
True-Up Segmen~--contains the compensation far overcharges and
undercharges which have accurrad during the True-Up
periods; and
Inflation Segment--al.lowances for the effects af inflation on
the op~ratar's costs of doing business.
PART I; PRELIMINARY INFdRMATTOId
Madule A: Maximum Permitted Ra~e From Previous Filing
Al. We agreed the current maximum permitted ~ate input by Century
tfl the previous F'CC Form 12~40 and ta the FCC order.
Module C: Inflation Information
Cl. We recomputed the infl.ation percentage after agreeing the
monthly ra~es to the appropriate FCC Public Notices.
Module D: Calcu].ating the Base Rate
D2. We compared the current external casts stated on Lin.e D2 to
the previously submitted FCC Form 1240, noting any
discrepancies.
D8. We recalculated the base rate on Line D8 and agreed this
amount to Line I4 from the previousl.y adjusted Form 1240, net
of the GAP external cost adjustment.
-S-
KAISEA SCHER~'R Sc SGI3I.EGEL
PART II: TRUE-UP PERIOD
Module F: Maximum Permitted Rate for True-Up period 1
F4. We recalculated the True-Up period rate eligible for inflation
on Line F4.
F5. We recalcu~ated the inflation segment for True-Up per~od on
Line F5.
Module H: True-Up Adjustment
H14. We recomputed the True-Up adjustment.
PART III: PROJECTED PERIOD
I4. We recalculated the Projected period rate eligible far
inflation on Line 24.
I5. We recalculated the inflazion segment far Projected period on
Line I5.
I7. We agreed ~he external costs segment for Prajec~ed period to
the amount on Worksheet '1.
I9. We recalculated the maximum permitted rate for the Projected
period.
WORKSHEET 7: EXTERNAL C05TS TRUE-UP AND PROJECTED PERIODS
Ql-3.We agreed the information in Questicns 1 through 3 to the
applicable informatior_ on the front page of the filing.
701. We compared the ax~ount stated for curren~ cast of programming
ta amounts stated ~n prior FCC ~240 for reasonableness. We
agreed the cast per subscriber ~o the attached documentation.
703. We compared the amount stated for copyrigh~ fees to supporting
docuanenta tion .
710. We recomputed th~ mon.thly per-sub ext~rnal costs on Line 71D.
_g_
KA~s~a Scx~aEg & Scxx.E~~L
FORM 1205
1. We agreed the amounts for the assets Zist~d an Schedule A:
Capital Costs of Service Installation and Maintenance of
Equipment and Plant to various supporting docvsnents provided
by Century.
2. We recomputed the depreciation expense percentage for
reasonableness.
3. We agreed ~he amounts for Schadule B: Anr~ual Operata.ng
Expenses for Service Installation and Maintenance of Equipmen~
to supportin.g docvmenta~ion provided by Century. We compared
the costs to prior years for reasonableness.
4. We agreed the amounts for ~he asse~s ].ist~d ~n Schedule C:
Capital Costs of Leased Customer Equipmen~ to various
supporting documents provided by Century.
5. We reviewed the suppo~ting invoice far the new digital
converte~ and suppor~ing letter far ~he remote. We noted that
the converter cost included a license fee,
-10-
I~AISEE SCHEI~EB SC SCHLEGEL
Attachment ~
Letters From The Public
. __ , r .
.- - r
C! f T Oh ~;~NT~; M~~:~k
C!T'f MA~MC:~=~''`~ ~)~~~~`~-
~~j ~z s r, Y~ ~ r
3~ i ~~ ~~ ~~ ..
~ l~~ ~0 ~ ~ :Q$ 2912 Mon,tana Avenue, ~t4
San.~a ~Ionica, ~CA 90403
riarch 23, 1999
Santa ~Sonica City Clerk's Of~ice
16$5 Main St.
Room 102
Santa Monzca, CA 90401
Re: Century Cable Cornpan_y
Dear Sirs.
It is my understanding that Che City Council wi~l have a
hearing on Apri.], 13th re~arding the renewa~ of the license held
by Centu~y Cab1e.
In my opinxon, as Century Cable conducrs its bus~ness in
t~e czty of Santa rionica, it does not deserve to have its Zzcense
rene:~ed. 0~ course, any company w~th a monopoly will take
a~vantage af the lack of competition. Century Cable is no
exceptaon.
Specifxcally, Cent~r~y Cab1e zncreases sts rates in a h~gh-
handed manner they don't even bother to ~ustlfy--not to the pub~sc
anyhow. In i~ay of 199$, I paid S1.5Q aver the basic rate to receive
~TMIC and Bravo. In February, 1999, ~he charge bal~ooned. to $12.99.
The total charges saere $24.94 ~n I~`,ay, ~umping to fi37.06 ~.n
February. I cons~der th~s increase inc~efens~ble. Furthermoxe,
the rudeness af the neople t•r'~~o anst~er on the "Ca~~ Wendy" lzne
~s appalling. These people must ~e spec~fzcal~ly trained to reply
lxke robQts to customer inc~uiries and ~o prevent eustomers fram
fi .dzrg out th~ a~.~~ ~d ~,~on~ r~~r,w~~ oi a superior or adminzsi.rator.
Century Cable shou~d not be allowed a renewal. of the~r l~c~nse
in Santa Monica t3nless they can be made to do business fairly
and raith some degree of respect for thezr customers.
Yours tru~y,
~~: ~ ~ - - -
Patricla Cachrane
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SGi~#0 M4i'IICG~GC~~RffIl09Q41~~Q~-~
toi~phor~a 9] 0 S~3b~-~2Qa fax 910 63b-9320
Ma~+Ix ;3~ 1999
Pax• ~lr1-394-29~2 Qtr~ Cler~
Ta: 3o1~a 3~lili, Caty M~ns~r 9i7-6~r~(1
Rabin Ge~. ~ity ~h~e Phon~ ~SS•8594 ~~x 310-2~-1568
Gitg Couacs~ (sce a~tac'l~d}
~rorr~; :~+ii~eli W. Bl~cic
RAai~I
~: Frc~~nsed R~ ~-creasc af Cent~tv ~~ble
In rewi~r`u~ ~e rnatcriala ~~y C~aitu.*y Ca~r~le, despi~ th~ deal of data that is pmvided, far ~one
t
t~~tinn~ ar~ ?~sed by mat~1 aot pz~vr~1 in thc ma#~arial~, y not pr~r-iding ~sw~S tD ~y at 1he ; ol~ving
q~o~as, in fairue~s tu the ~den~ t~f S~ttita Mnnics, we ~v~ that Cau~ s~~1d table bcariag a~dY reyue~st~
fac in4r,~a~ea uiatil s~m~ bas~ ~'~~ciat and otl~or guestions c•~n be ~so1v~. Th~ GY~r aY~auld nat appro~~
A:~Y ral~ lncreases ~dl lhese fssn~ ~r~ ci~~d,
? . ~ ~f C~ta~r~r Cabf~e~--
~'ith the a~cc~ZSittan cf Contury Cab;.~ by Ad~hi~ C~mmui~tians Cor~raarxsaa f~ $3.36 bi~l,iao~ pli:a ~snruII+g
~- ~~ billic~n in de'ot, Council ~uld ~c}aest pro~csals irar~ othcr c~a~np~a ~et4t~ t'eaewi~-~ t~tis fra~ch~s~. ~t
wa~ r~cv~.r tbc intcat o~ ~an~ end ~~hBr~genc~~a iu allow t~e traasfer ~f awn~r~hip iaa ntalit~ w~ dc~i~
b~ We,t St-+eet fina~aiers wxt~~ut a~zy ia~ut from thc citiu~~s ~ing sc~v~d. Request fcu P~P~~ ~-rn nt~er
companics $hould ba ~nt ou~.
~. ~asEam~; Sati~Cfi~On-
~,*~~-hec~a in the rast~i~al providc~ dc~~ Century Gab1~ show ~ny surv~y sl~~+a.~ing s~tisf~cti~ of casto~eaa. For
r.xampl~, wh~tt I ca:ied Ce~m Cable u- obt~ capies of th~r t+eport~ r~a~u ;~f r1a~ p~ple I le~t ~~~ far ~t
Cent~ C~~ rCturt~ my t:~~ Wh~ dOP~It't C°~tury Cable pt~vide ~ st~~vey af cas#om~lt 5~factitrn?
~. Cazn~~r'~sot~ u.f ptioe~--
The mos~ cucrent +~ in the ~la~g ~~wing cnm,~rabl~ c~sts !s ~t~ A~~ 2,1~4: Th~s dsta w~ pr~de~ by
Ptt~e ~~terhncls~. How ~~tt nn~ d~s~~ss rat~s vnshhc~vt l~c~wit3g wbat otkers ~ payu-~ fur t~milar seri+~e8. 'T'~e
c~ta provi~ by Ccnt~uy s~s its rcpa~ shc~ws s range nf ~2$,78 ~ 53.33 fnr ~,a.sic ~rv~c~. Ar~ Saat~ Maaics
ie.si~ca~s~e~ gend ea:ue for #1~ ~nu~: £~ af w~4Ul~ for cable a~rviccs? ~i~ t~518 tloi e~ues~on heing
a~ in rcpart but ~u~d : as~ i~ f~, see~n pieriY ~~. ~ fcat it is i~perative fo~ Ca~i r~a r~ise t~s ~
~Vhy ~.~'t this data he~a ~newed and upd~tcd?
4. ~ricing fcn condas, aprxsrs;ents and 3im`~~ar ~ites-
C~ur ~Adom#r~iuss~ e8sne~at~rrn fovnd its mcmt~ly fee for s~e~rvice almo~t ds~ablcd wh~ ~~r ~tvC yCSt C~i w$a
re~wed.'~ 7 Cc~~ut~- docs n~t prar:~ ~ny c3~t~ to shtsvv thax it~ costs for provi3~ag 1$ {'in o~ cssc3 ~ta ~±3~
~
ha~ic ~pIus ~ t) s~:~uice has ~ncreased 1U0~6 in fi~ ycars. Ca~r~cil a~oul~! insist on ~~publis~ed ~ s~t~
t~~t c+u- b~ ~cv~vcd t~ ~ermins wt~ ~1e tn~e ca~ (a~ groft) :t wksn ~enWry ~s ~bZc t~ ~a a, L~cge ~~scnb~r
of tmtt~lnt~~es, etc. et the asme cime with a siu~ a~ontYily bilL 9Vhy ar~n.°i rs~es o~ t~ t~#e ~ard'~
S. Bundl;~ df eervices ~nd Incr~aac in l~ces far Sasic C~-~1s-~
Ti~i~ ~ e~ funcl9i~Ex~:.~l Qu'siiart that #.~e cegnrt doe~ a~L review. Wm ~s Ccncury ~owcd t~ b~e ~oe.s? Tf~
FC~C mand~te~ that t~e braa~ast ~LiannG~ mus~ be c~tr:~d. F~hy t~e.~ d~~ Ce~t~uy #nsist tha~tt Basi~ 5e~vic~
i~~clu~e 21 addi~onal c~s~ls7 ~ dnes Couaacil allow Cen~ry to ~ill ~aat~ Ntcui:ca ~x~lc as~s ft~ ch~ns,esl~
BuG~ tkS A$t~ ~15~ ~ tilOnth), Nf't'V ~2d.6~ a mottt~), FC3X Spos~ (S] .~~ aad 61~ e mond-) and &~PN (99,2~ a
m~nth}'xhe only tee L~ent~ry pays to c~-*xy tl~ braQdaust cha:u~els is ~.3~i¢ ~ m~mth iu F~e~ally mandated
Capyrig~t fer.a. :~n ~ddius~n~l $7.99 is c~rged for tbeese "~~.~ic" ~erviees. [fSA chsnr~ol r~ised it~ foe fr~ 39¢
]ast y~r ta 41~ e~ut~criber, ~r 5.196 why`t ~hy,~ t}~Se ~croascs ~saac~i bac~ tv ~~c Ser~sce subcri~berr~s?
~ont~wad
~eat~r~ Cab1~ C~mments P~gg `i~vo
l~~~rch 15,1~~8
Century fa~l~ ta ~haw chat ii~se ra~e ir:ci~ase~s a.^~ raasonablw C~:ary fai1~ ca ~w if ~y ~re c~mPed~ve wit~
~srl~at other arA~icc ~o~p~rr~ ~~sying ~or th~ FA~ ct~ant,e~is, ~it~~ t~ f~es ~ i~ b~ndl~d se~ th~ 'ss
nc incentive fa~ Ceatwry to seek lowsr fees ~sncc tha hghrx tt~cc foc tl~ lar~cr t3~ ma[Y~p 'This is ~c~ther r~s+vn
tv untwi~ie ~h~s ch~,nrjels st~ coc~u~e.ra can select wr~ich ci~aanel~ they w~ aa p~ut of thcir "bamc" xrvice.
I~ ~diCion~ Century ~s it~d to marle np these servicee~ 7.~9b [ Why src daey atakaug s pra~t ~ Co~yd~t
fees7 "Basic" cab~ co~ p~uvid~d ~ San~ ~+ionica ~siden~ f€~rl~.a~ t~an $ I~ a mo~th ~f a11 af t~ ad `'o~t
fe~s w+e~ ~o~ ~si~i In t~ ~asc ~e~r, Centur~ has a1low~d tke basa~ c.3~nnc~s ~whicli it pay~ f~r) ~o iz-c~ fee~
fmr~ $4.47 to ~5,376 vr $.9ia6 or ~D.Z~~96 No ~~ial ~et~ i~ prb~ to ~us 't~f~y t~ oa~~~~~ ~c~f
2~}.a~i~,. Anocher eY p~?+ple af this is t~e Caacury shauld bc re~ui~cd to ,u~b,xnal~ u~ the
caos-uuers cs~n ~1~t w3t~.~h chsr~n~l~ th~' waat ~#` t~.ey war,t esa, t~e~ can ~dd tb~. ¢ for aa~e ~av~e na ini~resi
in most of tbese. r~,a~ar~el~.)
C~at~xy pro~~itles x~n d~ on ~hc cost sttuct u~3 ~t ~ty of ~e a~c Ch~C14. iN~y? 1Nhy sha~d~°~ cus~s
]mow wl~t th~ cc~st o~ each channel is ~td rhen ~le~t to p~rc~ i4 ar nos. This ~t~ad oC ~rar-idi~g $ul~Iber$ a
but~ot of sr~ricea r,v3a~ an ~-Ia c;art~ m~-u wo~id be :sim,~' pr~rvides r~o in~:tive to Oenttuy ae t1~e bas~c c~b1a
~m~ies to provide serui~e that geaple w~t to wa#ch.
~. F~es Are Arbitrstiy
C~ncury r~il~ t~ prv~ide ~y da;a io sn~w thet itc ~~pose~ f~es f~r r_a:c P~ym~ {$4.'15) Itccwra Chccks (~~~)
~nd Callectic~n fee~ (~lU) w+c 1a~sed on actual cost~ pI~ ~ prafi~ marg~. Mo~ da~ ~ needed, fiee,s s~out~ r~fle:et
actual. cc~sts g~us pmfi~.
R~co:umai~da~en:
a. ~entury ~ou1~ uctbu~.t~1~ ~ervice3 T~ 8~t~t~ yUSt~1Bx8 to sele~t chatil~ (beyoad Etle broad~ast aban~l~) es
n~ded. This would provide ~wer cflst ~enriae ta Saata A+lonics r: ssdants. Cen~ury ~as ao incentive ta ger ci~xns
t~ ~est rat~ fc~r basic ~~ o~aaae]s. Ceatury has ~n-ided na datn te s,iiaw ch~ tha chaa~~a it bsa Iwadled inta
t~as~c service ~re t~e cha~els coaasumer~ went w see ~a~~ pay for).
2. Ceatury should ~ot bepor~~ttcd to ci~rge ~ 7.59b marY up an Copy~~lt fees. `Ih~ i~~s no r~ellahanship to i~s
~~st DY p~yin~ tY~es~ mya~ty b~l Fees.
3. C:ent~r~+ sI~~~.~~ pmvide a ratic~nal schedul~ af f~g ia~ cnulti-usc.r contract~. ~~~st sev~.n~ shcwl~ be ~SSed on
to the res~dCnr~ of c~ados, ~~e~t buil~gc, h~sgit~s, etc,
4. C.eiat~tuy shauld prnv~de s~form~~±~-~ sa :te service can ~ o~ragatcd ro~rh~f cabk comp~ni~ in t~e US in Tsc~s
of fee~, cusWr~x aa~acti~., o~c, Fe~ should ~e wi~ ~ few c~nts at ~ meai~n ~ees paid by c~ Ainerf~
cahle users t~r sinzil~r servi~ea.
5. Ceah:ry's ro~osa~ doe~ ~ot ~dd~s~ ~1C futur~. 'Whe.t~ vril- the s~rvlx t~ upgr~~etl7 Cm~l~ mode~ms. v~deo aa~
dem~[!d, hult 0~ Gh~el.c ~'e r~ow p~SSible~. Wh~t is r!±pir p~y ~o~ the fui~u+C~ ~ha# i~ thC ~ far lk~ pl~u
to ua? - --
~. ~entu~y i~ ch~ging €~ f~r s~rrvft~es ~1~ ~"l~te p~;~nem tae.~" that ~ r.a~ j,uti6ed.l~,r'hy?
"7, Cau~cfl n~s t~ lo~k at the rec~nt ~~~c~~sc cf Ce~tury Cable ta datarmin~ how rl~c needa o~ tlu city arc ~d
w~th profits g+aisig ca ~ebt scrvice ia4tcad af ~w s~rvit,~. The ~`ancl~ise ~ c~ be apen to caa~petitian or~ ~
r~gular basis. v4'e ae~d tro see whe~ we c~ ~xg~ct si~ar op~C ~ablcs to re~lacc tl~c t~e~hur~ rand ~-ther ~bl~s we
now h avc c~ea'u~ i~to o~u ~ wmr.~. S h c aul d # he C it~ ~s~ee ;~v~r the ~sic ser+t~ice o~'praws d i ng ~ h e w i r~ c a b l c an~
th~ a11~v the ~its.~as ta ~o~ara~t fQr t~e tnareriuls ;h~t ~~ ~z tlac ~ir~iub~x apti~ ~~b~.
c~: Pam ~'C~r~ntx~ Vlay~r FAX ~58-fi~sRf~
ICen Get~er, Mayar Ft'o Tempo~c Fe~X~hano t33) 395-02~3
Rola~rt H~rlbroui~: F~ 393-7948
Ke~ ll+lcK,ea~x+n, Psx 393-3~09
Micte~ Feiust~ein, FSx 392-f~5~
P~u! Raaer~stei~t, Fax 449-4~4~8
~ ~ 7,`J l~: rs
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~`~~: PTeov=14 tl: F' ~i .j ~~t=.ilt'.~7~ ~._2" C~:~11Ct L.C Si1'??1~~~t~t~ ?~V t'_l~lr
~2COIuS.
t.°I74tiz'~r' i.c= 1i Cr~.r:SE:i ~~S ~d~GS Q~'@~ ~hE V~.BY'S Ct% iLT~t1~z'li?~
1t`_~ ~%'Y~Gi'~o1~ ~1. i]f ~r:u~_1:.~°~i ~1~!~ ~it.Li.~r ?i0?Yc~i~..Z;it?~ ~ G-l?~ ~E
o[_u3~lO i~1~ G~ i.LG C:i<^~i1.lC=iS. l.iiTO~~L;iG~~21"9 ,`C~S~ vT ti_.L'S~.
2.G~c~.i C-.2.i:E1S ~i3tie i:3T!`: CO;u~crCldi ~Lttr=rillrt:O:e :;O 4i12
~il_~SCriJ~T5 c1i'2 17Qt -~~.t1:1.~ a~i~ C_il:: ; O` Y~?.ill? 35 ~.29? .12s.'
C..~~~Il: ~S ; T.': ii0~ ~.J`~:-.erciai Li~E. Zill:ceCi, .~OS~ Oy ~_1"'- _13VE
~+1P.04'1:1~~:; ~J~l~y ..:~'~ ~ ~C~:yL'E;li CD ~ ~. ~YiC~~ L ~W~11S .
i JP_11C?VE= tilc:.t `.ii~il L~E2 T~::1:~1 :~; SG12 ~F '..cRt:^?'~: ~OT~ '~:1`11C :.t1(;:^:$
~D c7L1 D~,~-Qi--st~LF' C8t~2 i.oi1`~d:~,: ~!:d~ :1::T Xa~pS •'111 L=a .k'~'
CVEtl i,l~~~Cr LC n2i' ~OY i.'i2 COoi. C~ tCilS ~C'.~1151~.1:~T:~ 'i=1.'..Ci~ i5
~~i035~j U11=~1.Y.
~ er~~_~tt~n : a-no~ cn~l~. o* or:I~; n~~e c~ble co-,p~a-r to oTeraz~ i~
u dUf~:~~;~ ~rca r~a5 sa~~ose~ to ~uarr~tee ~t~e ~o~=~st costs ror
t~~~_ c~~l~ co~~anv Gna ~ere su^~os~a t,^, ~~ -sassed c~ ~o w11
,
~:~asc~'~ °,ers. x:_~~ ._as nev°r occur~es i~ C~.e ~a.nta fon? ca ar~:a.
~~ iuct. ~°~tur:Tis T~=~11~-,.~~e;•,-n for -r~c~ ~ou~z~? ar:c rc+~r
sar:Tlee.
T_?~~~eTore, I a,~ o~ ~.ie srron~ o~ii.~ci~ ~:at :.er_tur~• CQ'~~e'.~
r~tes ar.~ ~~rea~o.zu~i~ ~ri~ si~o~l~ ~e r~,:uc?c tc~ reflect ~~s
tL":;? CJS.~".a ~:i~ :lOL ctiC~~5S1lTC. ?~~~~i,5.
`.erv tru~t- w•owrs,
~ ~ ~
~G
r'rv . Ied uca
13~0 ~t.~ 7rr~e~- ;~1
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r
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Ni~Gh 11, 1 ~99
/~-tt~ion' Ka~ 1~~~
CC]MMElr+9T5 RE C~{1iTlJR1~ ~ABL
~xter~eJ FayB
Fr~m 1989 ta i 9~~ ~nt~+ry C~bfe and Cer~#ury Sefect rat~s r~ ~r~ea~d almv~t
50'~0. Rates f~ !ow-iric~rne a~e unl~ $4-8# ~ss ~han the r~at~s #Or b~ssac S~vio~,
~r~d ar~ th~ sem~ ~or Cer~xy ~~i~ci.
Cer~t~ry Cabie has tae~ piag~ed wfth probiem~ far ma~r
~. Vlf ~ring has still to ~ upci~ter, ~n sarrta nll~ar~ica as prc~,~~ ~ound ~~ia7.
~. ~n a dty r~rf~re ur~ns a~e s~rt~ by mv~ oi~ic~l~ and i C~n~ry Cabie
t~erminat~d mo~# o~ th~ir employ~ a~d ~ aut !~s~ Th~ r~lted
in untrain~J re~r~rnst~ll~~1t~1 pe~'sanr~ef and customer ~rai l~n~ transterred to
Colorado Customer ~en~ae now i~ v~~lly nor~-exiat~nt,
~Yhi~e we re~Nze #r~ghe~ c~e rat~ berrefit ~ city ~rr~naaiiy
~xes, +~e d~ no~t t~i~nk ~is ~R~Ci ~ ~ coctir~tc~ec~ i~ ~
This r~spar~e may 1.~ ~r~ as Cent~yr Cabl~ has ru~r
Atie~a ~s~~ri~~ ma~k~ f~lpkti~'~ ~ ~s~ge~
~~
W~ ~re r~ques~ng t~t the C~-y M~~er's affice hold ~ pt~
~r+e~tat~s ~it~ ~+e s~e~ co~~~ ~~ tv ~~~z~+~ ac~y cx~
c~n,~rt}~.
~~~•~
~~ ~ ~~ ~f~
S~nta MOniC~, CA 9~Oi
f~~4~ 3~4-A~63~
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S~n~- Mt~niCS, ~~ 9Drf€13
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~t f~o ~:~.
d to be aoquired by
~a~r +~+ t~
Eing r~ard~n~
wi~h ~e s~r ~bte
~
~....
~ Mr Gerard Pkhette ~~
" 1402 Anzona Ave Apt 5 - ~ + ~~ ~ ~g
Sarita Mornca CA 90404-1029 ~'
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TO Santa Monica Catv Counc~l ~~ ~'~~ ~ ~ T~ ~ ~- - . ,~
FROM Brian Loa ~ , ; ; ,~ ~ , , , .
DAT`E March 8, 1999
RE PLEASE LOWER BASIC CABLE RATES FOR CAPTIVE CUSTOM~RS
I would strongly encourage you to look for vc+ays to provide rel~ef to Santa Momca residents wha are mti~oluntar~
cable subscr~bers ~Vhen ~ve moved mto Santa ~Iomca, ~ve had no intention of sigmng up for cable ser~ices
Our telev~sion needs are simple and l~mited to watchzng d~e news on the nerivork stations Ho~r•ever; ~~e soon
found that, because af frequency transm~ssion problems m the City, us~ng an oid-fash~oned "rabbrt ears" antenna
is not poss~ble When we called the cable companS~ m search of a strippecl dov4n bas~c access plan for some sort
of token access charge, we learned that their basic plan would cost us $2'7 per rnonth (inclusive of a~~aneh of
taxes) Ihat ~s a lot to pay for free network telev~sion
Flease work wrth the cable compan~~ xa pro~ ide lo~~v-przced access plans for `capt~ve" residents t~vho do not have
a cho~ce Thank you far your c~nsideration of m~~ request
Frances; E Young -
1936 Se~b}- A~enue ~ ~
Las Angel~s, CA 9D02~
(310) 470-5183 =~ ~" ~ ~ ~
u -c~,, ,;~,- ~ , F T ~_;
~-, ~~ ,
Office of the Crt~~ Gierk
Crtv Hall
Room 102
1685 Main Street
Santa Mon.zca. CA 94401
R~. Rates Gharged b~= Cent~r~~ Cable
To Whom It'~Ia~,~ Coneern
I have heen a subscnber to Century Cable for the past fi~~e ~-ears It is d~fficult to thmk af
an~~ positxve comrnents regarding their services. The reception is usuall~~ bad, the ser~~ice
goes out on a regular basis, serv~ce cal~s are difficult to ;m~ossible to schedu~e and man}~
of the channels offered bF~ other sen~~ce pro~-iders are una~=ailable through Centur~~ Gable
Finding that a cable ~i~e ~n o~tr t~acky-ard had came dov~~, I pho~ted Century° Cab~e anc~
requested that the~~ repair ~t After fi~~e months and se~~eral phone calls. m~~ husband
finall~- climbed on the roof and repaired it himself
I hat~e researched other compames and find that ~~e are trapped b<< a monapol~~ and
cannot char~ge to another pror~ider in our area Othenn.~se v~; e lvould certainl~~ switch to
ar~other senice.
In li~ht of the abotiTe we ti~~ere appalled to discover that reflected on aur most recent bill,
Centun' Gable increased the~r ch~r'ges bi- $$_14. VL~'e have also disco~~ered that «~e are
being biileci for services ~~hich ~re are not receiving We are pa~~ing far too much alread~-
~or incredibly poor ser~~ice '
Thank 1 ou for ~nvestigat~ng th~s matter
Sincerel~,
,
~~~,
Frances oung
i\`Il,~l ~-13 i i-F. f 7'f Y
1027 4th Street. #S
-,--, ~
i j~'~._.°~ ~, `' . .;•UIIIU I''v'~U~Iii.U. ~11 YiJ4i7J
U
'1
1tL ~ECitJi}I `.OfflfilU~iCQIiUf1S LC][}Ic ~U'~'S~~',: F ~
_i
~ O I RE VTfiCu''- G: T~IE ~.IP~1 lllcfK.
I•~:T? V`JPITIii~ TO ~l~L• roau•y ~n response i~ `~OUf i:C~UESi iOf ~LJl7ii4 COfTi;i3EiiU f~GJ'QfCllll~ Tfl° :~iES CfiQi~EC1 C~'d
+~ent;.iry ~.ommunicatrens ?~i CQ~ie seraice I!1C"!VE been SiJC~I°Tflfl~ CiEC2 Ifl ~antq i~~'~onica far a~o~r i.i Cl'lpf?T~TS
now. cnd ilQ'.'•' IJ~en growir,g ~~crzas;rg:y ^Fi9~~ea, anncy~a, ara iiUSTf[7~2C7 ~T iilc hign ~Qf~S C~~fg~C] [7V
'~.cflTUfy~ i aireaay 44f15iCl2i~^ IT12 f7s25 Wa f~oc hi~~ •,rvnen €ney w•~~~ ro~se~ a~a~n a~re~v r,~anths ago '4~Vhen I
~~
G~~~EG ti.@R'Uf'~d }O CSK V•J•^•t' f'•t1~ D~'•i Sii(~ClEfl'y~ \NeCli f~Of"1 ~,3/~- D~ ~f'• ~i.rO~fJ°f t0 ~~ i~.j cVEf S~r1G~, i Y•~Q5 ~91tCffTl2Cl
I~rat rt ~~ac so~el~lrr,~C to cio w~ih sorr~e sort vJ co,^trc~iE ~vr1r~ i~~e c~ty t}aal iu~d ex~ired ~VVi~er: J aslce~ ~t I had a~y
ot~er outions other than *a st~p rec~i~ir~g cabl~; I vras toEd that u^I2ss I svr~tch~~ to satellit~ servi~e, 1~rras ttuLk
~,r~~th Centu^,~ In other ~~rrords, there rvere no ~omp~tit~ve cptrons fT l, or an;~c~e eise in the re~ghborhooc~ v~ant
cabke. we ar~ torceci to go witn Lentury anc€ pa,r ~n~hateve~ the)~ ~eca~e Eo char9e ;~vhich. atier taik~~g ~rith ~thers
outsFde ot ihe area, seems ta be more ihar~ what sorr~e ott~er cqbie com~an~es char~e Tor the same service~
l.orreCT m2 it I~m Wrong, bui cOUltin~t this be Consicier2c~ a monopoiy2 rrom ~rrhaT I understqnCE, When ane
company conrrois an entire marke~, tnereby eiimmat~ng any ana r~li competition, mar s a monopoiy Hnd it wornes
me ~har w~rn tne increasea ~reeciom to consoiiaate markets ana na~~e Tewer qna Tewe~ companies conTroiiing ana
o~^rning all ot the supPasedly public s airv~~aves (ce~t~tesy~ or the rec~nt ~ederal commun~cation acts passed over
the lasi ~~ear or so~, pr~ces v~»II conhnue to soar unab~~ed C~ranted, ! coulc} ~~st o~t to not have cable, bu~ cJ~e to
my research as a media aralyst, I neec! to have accsss to what C.ent~ry has tota~ control over
i~e not know ~^ahaf the answe~s ar~, b~f I do knov,~ Fhai a~ fhe ~4.1 Q„~ ~ m~st pa~ t.entu~~
C=,ommun~catians e~~err month, knowin~ I~ave no ofher o~tions it f want andi~ar need cable, is r~d~culous, and
espec;ally gr~~er *ne total lack ofi compe+~lyde o~tions, ~~ is insane that cab]e costs more than aIl oth~r basic ~~i~ifiies
combinsd, anci b; The lack ot compet~tion screams ro me that t~ere is a potent~ally ilie9al monopal~,~ al~ve n~ well
and ihat someihing needs +o be done about ~~ I also do nat appreciate t~e 5crew Vou ifi you dan~t like it" attitE.~d2
~ have recei~eci ~rom L.entury re~arding my dissatisTaction with their pr~ces
'I hank you •~err much Tor taking the tirrie to acidress thjs ~ssue and r°ad my letter f'leclse pratect us
consumers rrom being ~orcec~ ta pt~y hugeiy ~ntiatecl prices t`ar vvnat is supposediW pubi~c ^arwaves
~°
~ K~sp~ctiuiiy 'rours:
v
~-
f
~ r'- ~pencer u ~resler
~
Pubfic Comment rece~ved by City Clerk Monday, 3/15199
From Steve Kandell and Alena Estrin
2910 Urban
Santa Monica 904D4
RE RespondGng to public comments on Gentury rates
~ appalled at hig~ rates eWen with rate roiiback for period of time ended this
month
• higher than anywhere m the cvuntry
• paying ~42 ~~ for 2nd tier service
• bad reception e~en with an an#enna Minim~am discount or rates bemg
permanently rolled back should occur