Loading...
SR-6-M (68) . CC:LC3:KKV:LMC:dvm (ratecble) Councll Meetlng 6/14/94 Santa Monlca, L- V callforniJ.UN 1 4 199't ~ , 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 "" i t {'> ,~ t Ii-... ti...."\ ,-} ".\ [; ~, -'.~ "L'. " \'1" i" " '-. .. ~ 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. 2 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 3 1 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: 1 " 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 2 " . . 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. h_ //~ ~~ ~C7 --- City Clerk ,. 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: 1 -\ 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 l t' . 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. /~/4~ - City Clerk