SR-6-M (68)
. CC:LC3:KKV:LMC:dvm (ratecble)
Councll Meetlng 6/14/94
Santa Monlca,
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STAFF REPORT
TO: Mayor and City Council
FROM: Clty Staff
SUBJECT: Recommendation to Approve a Resolution Issulng
an Accounting Order Regardlng Basic Services
Rates and Associated Charges of Century Southwest
Cable Television, Inc
INTRODUCTION
This report recommends that the Clty Council issue, by
resolution, an tlaccounting orderll to Century Southwest Cable
TeleVlslon, Inc. ("Centurytl) which wlll provide additlonal time
for City staff to review supplemental informatlon recently
submitted by Century ln support of its charges for cable
television serVlces (FCC Form 393) .
BACKGROUND
The Clty has been certified by the Federal Communlcatlons
CommlsSlon (FCC) to regulate baslC cable televlslon rates {WhlCh
lncludes the I1baslc cablell tler and rates for assoclated
equipment, lnstallation and service} conslstent with FCC
regulations. Pursuant to these regulations, a cable company must
justify the rates it charges as reasonable ln accordance wlth
federally-devlsed formulas. The Clty serves as the implementlng
agency for determlning compliance wlth federal regulations
JUN 1 4, 199It
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The FCC has dlvlded the rate regulation analysis and decision-
making process into several tlme per~ods. Presently, the City is
reviewing rate lnformatlon from Century for the perlod beglnnlng
September 1, 1993 (FCC Form 393). Dependlng on the outcome of
the analysls, Century Cable customers may be entitled to refunds
for some portion of charges made since September 1, 1993
The FCC has set forth speclflc procedures for franchlslng
authorities and cable companies to follow in this reVlew process.
The City and Century have been proceeding in accordance wlth
these requlrements over the past few months.
The City of Santa Monica was certlfled to regulate rates by the
FCC on October 7, 1993. The City Councll adopted a resolutlon to
regulate rates conslstent wlth FCC rules and regulations on
January 11, 1994 and the Clty notified Century of its right to
regulate basic rates on January 24, 1994 The City recelved
Century's FCC Form 393 on February 22, 1994. On March 8, the
Clty extended the rate review perlod until June 22, 1994 due to
the need for addltlonal informatlon from Century.
On March 17, 1994 the City sent Century a Supplemental
Informatlon Request and rece~ved partlal lnformatlon from the
company on Aprll 5, 1994. A second request was sent to Century
on May 5, 1994 and Century provided informatlon on May 11, 1994.
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Further information was provlded durlng a May 26th conference
call and follow-up communlcation on May 27, 1994. Century
provlded further information to the Clty on June 1, 1994
Because essential information was received on June 1, 1994 and
must be analyzed, City staff believes that lt lS prudent to
extend its review perlod and yet preserve its rlght to make a
rate determinatlon and order refunds that can be retroactlvely
applled to September 1, 1993.
In order to accomplish this
extension, lt lS necessary to lssue this accounting order.
BUDGET IMPACT
There lS no Clty budgetary impact resulting from the lssuance of
thlS accounting order
RECOMMENDATION
Clty Staff recommends that Councll adopt the attached resolution
issuing an accountlng order to allow further time to conclude the
rate determinatlon analysls regardlng baS1C services rates and
assoclated charges of Century Southwest Cable Television, Inc.
Attachment
Prepared By
Lynne C. Barrette
Asslstant City Manager
Kathryn K. Vernez
Senior Management Analyst
Linda Mills-Coyne
Deputy Clty Attorney
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CA:MJM:LMC:atty\muni\laws\century.l
City council Meeting 6-14-94
Santa Monica, California
RESOLUTION NO. 8763
(City Council Series)
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.
WHEREAS, the city of Santa Monica (the "city") became
certified to regulate basic cable services rates and associated
charges 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 charges
(the "FCC Rules"); and
WHEREAS, the City has not yet reached a decision regarding
the reasonableness of the rates for basic service and associated
equipment, installation and service charged by Century Southwest
Cable Television, Inc. (the "company"); and
WHEREAS, the City is not yet in a position to issue a rate
decision at this time since the Clty needs additional time to
review the supplemental information submitted by the Company in
support of its FCC Form 393;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND ORDER AS FOLLOWS:
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SECTION 1. Pursuant to 47 C.F.R. section 76.93J(c) of the
FCC Rules, the Company is hereby directed, from the date of this
Order until the date the Company implements any rate decision
issued by the city, to keep an accurate account of all amounts
received, and on whose behalf such amounts were paid, for basic
service and associated equipment and installation.
SECTION 2. The city reserves all rights it has under the
FCC Rules, including the right to establish reasonable rates and
order rate refunds, if the City finds that the Company's rates
are unreasonable under the FCC Rules, including any modifications
or amendments to such regulations.
SECTION 3. The city Manager shall cause to be delivered a
copy of this Order to the Company prior to June 22, 1994.
SECTION 4. 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:
~~~ ~fuj;J
MARSHA JONESJMOUTRIE ~
City Attorney
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Adopted and approved tlus 14th of June. 1994
r1 SIb
~or
I hereby certIfy that the foregOIng ResolutIOn 8763 (CCS) was duly adopted at a
meetIng of the City CounCIl held on the 14th of June, 1994 by the followmg vote
Ayes Councllmembers'
Abdo. Greenberg, Holbrook. Olsen. RosensteIn. Vazquez
Noes Councllmembers'
None
AbstaIn CouncIlmembers'
None
Absent Councllmembers
Genser
ATTEST.
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--- City Clerk
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CA:MJM:LMc:atty\muni\laws\century.l
City Council Meeting 6-14-94
Santa Monica, California
RESOLUTION NO. 8763
(City Council Series)
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.
WHEREAS, the city of Santa Monica (the "city") became
certified to regulate basic cable services rates and associated
charges 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 charges
(the "FCC Rules"); and
WHEREAS, the city has not yet reached a decision regarding
the reasonableness of the rates for basic service and associated
equipment, installation and service charged by Century Southwest
Cable Television, Inc. (the "Company"); and
WHEREAS, the city is not yet in a position to issue a rate
decision at this time since the city needs additional time to
review the supplemental information submitted by the Company in
support of its FCC Form 393;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND ORDER AS FOLLOWS:
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SECTION 1. Pursuant to 47 C.F.R. Section 76.933(c) of the
FCC Rules, the Company is hereby directed, from the date of this
Order until the date the Company implements any rate decision
issued by the City, to keep an accurate account of all amounts
received, and on whose behalf such amounts were paid, for basic
service and associated equipment and installation.
SECTION 2. The City reserves all rights it has under the
FCC RUles, including the right to establish reasonable rates and
order rate refunds, if the city finds that the Company's rates
are unreasonable under the FCC Rules, including any modifications
or amendments to such regulations.
SECTION 3. The city Manager shall cause to be delivered a
copy of this Order to the Company prior to June 22, 1994.
SECTION 4. 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:
~~ ~-f1-<e
~SHA JONESJMOUTRIE
City Attorney
2
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.
Adopted and approved thIS 14th of June, 1994
a ~/b
~or
I hereby certIfy that the foregoIng ResolutIOn 8763 (CCS) was duly adopted at a
meetIng of the CIty Councll held on the 14th of June. 1994 by the followmg vote
Ayes: Councilmembers.
Abdo, Greenberg, Holbrook. Olsen, RosensteIn. Vazquez
Noes. Councllmembers'
None
Abstam: Councllmembers:
None
Absent: Councllmembers'
Genser
ATTEST.
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- City Clerk