SR-6-C (144)
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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
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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
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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
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CM;KKK,ckl r.\cmanager\
cable\rmtereso Santa Monlca, Callrornla
Clty Councll Mtg July 25, 1995
RES0LU'1 ! C::J :{o 8921
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(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
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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.
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MARSB~ J~S MOUTRIE -
C:TY ATT ..NEY
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Adopted and approved thlS 25th of July, 1995
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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
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City Clerk