R-9509Attachment A
CM: KKV: ckl\f: cmanager\stfprts\rateorder-1. doc
City Council Meeting: April 18, 2000 Santa Monica, California
RESOLUTION NO. 9509 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
ADOPTING A RATE ORDER REGARDING
THE BASIC CABLE SERVICE TIER AND
THE EQUIPMENT AND INSTALLATION RATES FOR
CENTURY SOUTHWEST CABLE TELEVISION, INC.
WHEREAS, the City of Santa Monica (the "City") became certified to
regulate basic cable service rates and associated charges as 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
equipment, installation, services and charges (the "FCC Rules"); and
WHEREAS, Century Southwest Cable Television, Inc. (the "Company")
submitted FCC Forms 1240 and 1205 to the City on May 3, 1999 for the basic
cable service tier and equipment and installation, and an amended Form 1240 on
September 3, 1999 (collectively, the "Rate Filings"); and
WHEREAS, the Company, as permitted under the FCC Rules,
implemented its basic service tier, equipment and installation rates in accordance
with the Rate Flings on August 1, 1999, subject to the City's right to adopt a rate
order and order rate refunds; and
WHEREAS, the City issued a public notice seeking written comments
from interested parties on the Company's proposed rates, and the Rate Filings
were made available for public inspection in order to obtain comment from any
interested party; and
WHEREAS, the City staff has made a recommendation to the City
Council ("Council") regarding the Company's rates based on: (a) information
contained in the Rate Filings; (b) the assumed accuracy of that information; (c)
comments, evidence and information from interested parties; (d) the draft rate
report prepared by the City's financial consultant; (e) the Company's comments
on the draft rate report; and (f) the financial consultant's final rate report ("Final
Report"); and
WHEREAS, the Company has the burden of proving by a
preponderance of evidence that its rates for the basic service tier, equipment and
installations are reasonable under the FCC Rules, 47 C.F.R. § 76.937(a); and
WHEREAS, the City Council has considered the City staffs
recommendations and the reasons therefore; has received and considered
comments from the public; has reviewed and hereby adopts and by this
reference incorporates herein, as appropriate and to the extent not inconsistent
with this Rate Order, the findings, assumptions and other information set forth in
the financial consultant's Final Report;
NOW, THEREFORE, the City Council of the City of Santa Monica does
hereby resolve and order that:
1. The maximum permitted rates on and after August 1, 1999 for the
basic service tier and the equipment and installation charges set forth below are
as follows:
Maximum Permitted
Rate'
Basic Service Tier $25.64
Equipment & Installation:
-- Hourly Service Charge $30.30/per hour
(inclusive of installation materials)
-- Unwired Homes 47.27
-- Prewired Homes 27.88
-- Additional Outlet (initial trip) 16.67
-- Additional Outlet (separate trip) 26.67
-- Changing Tier (Addressable) 1.99
-- Remote Control Device (Basic) .06
-- Remote Control Device (Universal) .79
-- Remote Control Device (Digital) .76
-- Converter Box (Non-Addressable) .73
-- Converter Box (Addressable) 2.16
-- Converter Box (Digital) 6.69
The rates set forth in this Paragraph shall remain in effect until the date in Year
2000 or thereafter the Company is permitted by the FCC Rules to adjust such
rates pursuant to its next FCC Form 1240 and Form 1205 rate filings.
2. The Company shall refund that portion of the rates (plus interest)
paid by subscribers for the basic service tier and equipment and installations
described in Paragraph 1 to the extent such rates exceed the rates approved in
Paragraph 1. The Company shall not offset refunds by the amount of any
discounts provided to subscribers on the basic service tier, equipment and
installation rates subject to this Rate Order. The refund period shall run from the
date the Company implements the refunds required by this Rate Order back to
August 1, 1999. With respect to each affected subscriber entitled to a refund, the
Company shall implement the refunds within sixty (60) days after the date of this
Rate Order.
3. Within five (5) days after the date of this Rate Order, the Company
shall submit a written plan to the City Manager which, at a minimum, shall set
forth the Company's method of providing refunds to subscribers (plus interest)
pursuant to Paragraphs 1 and 2; identifies the basis for the calculation of the
amount of refunds; identifies the amount of the refund; identifies the applicable
interest rate and explains how it was calculated; provides the actual rates
charged subscribers for equipment and installations each month during the
refund period; and explains how the rate refunds ordered herein shall be
implemented. Such plan is subject to the City Manager's review and approval.
The Company's obligation to submit such plan shall not affect the Company's
obligation to implement rate refunds, as set forth in Paragraphs 1 and 2.
4. In the event any of the Company's current rates are above the level
set forth in Paragraph 1, the Company shall adjust such rates to the levels set
forth in Paragraph 1 within 60 days after the date of this Order.
[Footnote is continued from previous page]
i All rates listed in this Rate Order exclude franchise fees.
5. The Company may not increase the rates for any of the items listed
in Paragraph 1, nor may the Company institute new charges for other types of
service, equipment or installations associated with the basic service tier which
are not listed in said Paragraph, without first complying with applicable law or
regulation, including the FCC Rules.
6. The Council reserves the right to modify this Rate Order if, at any
time, it determines that information the Company provided to the City is incorrect
in any material manner.
7. The City Manager is ordered to mail a copy of this Rate Order to the
Company, provide appropriate public notice of this Rate Order, and make a copy
of this Rate Order available to any person upon request.
8. 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:
S/
Marsha Jones Moutrie
City Attorney
Adopted and approved this 18th of April, 2000
S/
Ken Genser, Mayor
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby
certify that the foregoing Resolution 9509 (CCS) was duly adopted at a meeting
of the Santa Monica City Council held on the 18th of April, 2000, by the following
vote:
Ayes: Council members: Holbrook, Rosenstein, McKeown, Feinstein,
Bloom, Mayor Pro Tem O'Connor, Mayor
Genser
Noes: Council members: None
Abstain: Council members: None
Absent: Council members: None
ATTEST:
S/
Maria M. Stewart