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SR-6-C (144) gC~ ~. L. CM:KKV:ckl:r:\cmanager\cable\ J 251995 .. rtord725 Santa Monica, Calirornla Clty Councll Mtg. July 25, 1995 TO: Mayor and City Council FROM: City Staff SUBJECT Recommendatlon to Approve a Resolution Issulng an Accounting Order Regard~ng the lIUniversal Remotell Control Devlce Rates of Century Southwest Cable Telev~slon, Inc. INTRODUCTION ThlS report recommends that the City Council lssue, by resolution, an "account~ng order II to Century Southwest Cable Television, Inc. (lICenturyll ) which wlll provide additional time for Clty staff to review ~nrorwat10n rrom Century in support of its charges for the "Unlversal Remote II control device, and which wlll preserve the City's right to order refunds ln the event the City determines that Century's proposed rates are unreasonable. BACKGROUND The City has been cert1fled by the Federal Communicatlons Commlssion (FCC) to regulate basic cable televlslon rates (which includes the IIbasic cablel1 t~er and rates for associated equ~pment, installation and services) conslstent with FCC regulatlons. Pursuant to these regulations, a cable company must ]ustiry the 1 6C 1 JUL Z 5 1995 .. rates ~t charges as reasonable in accordance with federally-devised formulas. The City serves as the implementing agency for determining compl~ance with federal regulations The FCC has set forth speclfic procedures ror franchlsing authorlt~es and cable companies to follow in the period commencing arter July 14, 1994. Under those procedures, Century must Justiry its rates, and increases ln lts rates, by flling the approprlate FCC Form 1200 Serles form. The City and Century have been proceedlng in accordance with these procedures. Because baslc threshold issues regarding Century Select rates are already on appeal before the FCC, the City and Century have entered into an agreement to defer further review or certain of Century's FCC Form 1200 serles rate ril1ngS pending completlon or current appeals before the FCC, and judlcial review lf any, and to extend Century's rerund liability during that period. This preserves the Clty'S r~ght to order refunds lf rates subJect to those rate f1llngs are found unreasonable but min1m~zes further costs to the City ~n the interlm However, the deferral afrected by this letter agreement does not apply to Century's rate fillng for the Ilunlversalll remote control deV1ce On May 19, 1995, Century submitted a rate fillng for the ITUniversal RemoteTl as part or the 1200 serles reVlew process. Presently, the City 1S revlewlng the rate lnformation from Century and will 2 request addltlonal lnformat~on. (1) to cure any deficienc~es in Century's completion or the rate f~llngi (2 ) to verlfy the lnformation the Company submitted; and (3) to complete reVlew by the Clty or the Company's rate rll~ng. The Clty needs addlt~onal tlme to review Century's FCC fillng for the "Unlversal Remote H Clty starr believes that the City should issue an accounting order to preserve the City's rlght to order refunds in the event the City determlnes that the Company's proposed rates for the "Unlversal Remote" control devlce are unreasonable. BUDGET IMPACT There 18 no Clty budgetary lmpact resulting from the issuance or th18 accounting order. RECOMMENDATION City Starf recommends that City Council adopt the attached resolution issulng an account~ng order to preserve the City's rlght to issue rate refunds ln the event the City determlnes that the rates proposed by Century for the "Unlversal Remote" control deVlce are unreasonable. Prepared by: Lynne C. Barrette, Asslstant City Manager Kathryn Vernez, Senior Management Analyst Llnda A Mills-Coyne.Deputy Clty Attorney Attacht11ent Resolutlon 3 J . CM;KKK,ckl r.\cmanager\ cable\rmtereso Santa Monlca, Callrornla Clty Councll Mtg July 25, 1995 RES0LU'1 ! C::J :{o 8921 - (Clty Councll) A RESOLUTION OF ~HE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING AN ACCOUNTING ORDER REGARDING "UNIVERSAL REMOTE" CONTROL DEVICE RATES OF CENTURY SOUTHWEST CABLE TELEVISION, INC. WHEREAS f the City cf Santa I"lOTI1Ca (the "Clty") became certlfled to regulate baslc cable serVlce rates and assoclated charges as of October 7, 1993, and has rollowed regulatlons prescribed by t.he Federal Commun~cat~ons Commisslon ("FCC" ) ror the regulat.ion of the baslc serVlce tler and associated c~arges (the "FCC Rules") , ana WHEREAS, the Clty has hO~ yet cc~pleced lts reVlew of t~e May 19, 2.995 rat.e fllu:g for t~e 'l-..ln:.versal re'l'.ote" control dev:..ce by Ce~t~ry Southwes~ Cab:e Telev:"slon, 1:1.c. (the "Company" ) and has :lot reached a decls10n regard:..ng che reasonableness of the Co~pany's proposed rates rOY 8UC~ c.evlce, and WHEREAS, the C~ty 18 not yet In a posltlon to lssue a rate aeC1Slon at:. ::.hlS tlffie SlTICe the Company has not submitted sufflClent lnrormat:.lon for the Clty to reach a race declslonf Nm1f ':'HERE?O?E I T~~ CITY =C~~~C~~ OF TH~ C=~Y C? ~~\~A MONICA DOES RESOLVE AND ORDER AS FOLLOWS. SECTION I. P~rsuant to 47 C F ~ Sectlon 76.933(c) of the ?CC ~ules, the C8npa:1Y ::..s ~ereby"r d2.rec~ea. f :rcn the date or th18 Order untll the date the Company lmplel'1ent.s any rat.e aeC1Slon " .. lssued by the C~ty, to keep an accurate account of all amounts rece1ved, and on whose behalr such amounts were paid, for the IIUnlversal Remotell control devlce SECTION 2. The City reserves all rlghts It has under the FCC Rules, including the right to establlsh reasonable rates and order rate refunds, lr the City rlnds that the Company's rates are unreasonable under the FCC Rules, ~ncluding any modlricatlons or amendments to such regulatlons. SECTION 3. The Clty Manager shall cause to be delivered a copy of thlS Order to the Co~pany. SECTION 4. The city Clerk shall certlfy to the adoptlon or thlS Resolutlon, and thenceforth and ~hereafter the same shall be 1n rull rorce and effect. APPROVED AS TO FORM. ~~ MARSB~ J~S MOUTRIE - C:TY ATT ..NEY -' ~ Adopted and approved thlS 25th of July, 1995 4j~ Mayor I hereby cemfy that the foregomg Resolution 8921 (CCS) was duly adopted at a meetmg of the Clty CounCil held on the 25th of July, 1995 by the followmg vote Ayes Council members Abdo, Ebner, Genser, Holbrook, O'Connor, Rosenstem Noes Council members :'-Jane Abstam CounCil members None Absent CouncIl members Greenberg ATTEST ~ . ( . /'!T/~/,,) V J i/.: ...........('- ~ - ~ ,,\ /" l ~ City Clerk