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Home My WebLink About95-45 - Cable Television Rates for the Basic Service Tier & Associated Equipment InstallationRESOLUTION NO. 95- 45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, REGARDING CABLE TELEVISION RATES FOR THE BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT INSTALLATION OF COPLEY/COLONY CABLEVISION OF COSTA MESA, INC. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the City of Costa Mesa ("City") was certified to regulate cable television rates for the basic service tier and associated equipment and installation charges pursuant to the Cable Television Consumer Protection and Competition Act of 1993; and WHEREAS, Copley/Colony Cablevision of Costa Mesa, Inc., ("Grantee") operates a cable television system within the City; and WHEREAS, pursuant to Resolution No. 94-79, the City Council established maximum permitted rates for the Grantee's basic service tier and associated equipment and installation charges for the period from September 1, 1993, through July 14, 1994; and WHEREAS, in compliance with Resolution No. 94-79, the Grantee has submitted a refund plan, a copy of which is attached hereto as Exhibit "A"; and WHEREAS, on or about August 15, 1994, Grantee filed FCC Forms 1200, 1205, and 1215 with the City seeking approval of its maximum initial permitted cable television rates for the basic service tier and associated equipment and installation charges. Grantee filed an amended Form 1200 on February 15, 1995; and WHEREAS, the City obtained a report from Diehl, Evans & Company dated April 14, 1995, analyzing Forms 1200, 1205, and 1215 submitted by Grantee; and WHEREAS, the City has issued an accounting order pursuant to Section 76.933 of the FCC Rate Regulations extending the time for it to review the proposed rates and charges; and WHEREAS, Grantee submitted a letter dated May 5, 1995, regarding treatment of the possessory interest tax in the report; and WHEREAS, on June 5, 1995, the City Council held a public meeting pursuant to Sections 76.935 and 76.942 of Title 47 of the Code of Federal Regulations to take written and oral testimony from all interested parties, including the Grantee, concerning Forms 1200, 1205, and 1215 submitted by Grantee, the report received from Diehl, Evans & Company, and Grantee's response thereto; and WHEREAS, the City Council has considered the testimony received during the public meeting and the reports and correspondence described above; NOW, THEREFORE, the City Council of the City of Costa Mesa hereby resolves, determines, and orders as follows: SECTION 1. This resolution constitutes a written decision disapproving the initial rates and charges of Grantee within the meaning of Section 76.936 of the Regulations of the FCC. The basic service tier rate and equipment and installation charges as identified in FCC Forms 1200 and 1205 which Grantee submitted are hereby disapproved for the reasons and on the grounds contained in the report of Diehl, Evans & Company, which report is incorporated into this resolution by reference as if fully stated herein. SECTION 2. The maximum permitted rates for the basic service tier and associated equipment and installation charges for the period after July 14, 1994, shall be as follows: * Basic Service Tier $ 9.92 * Possessory Interest Tax 0.28 * Equipment: Remote Control $ 0.27 * Equipment: Converter 1.71 * New Installation: Unwired Home (underground) 59.30 * New Installation: Unwired Home (aerial) 39.54 * New Installation: Prewired Home (aerial) 29.65 * Additional Outlet: Time of Installation 19.77 * Additional Outlet: Separate Trip 39.54 * Tier Change 2.00 The additional outlet charge (known as "Premium Plus") of $2.30 charged for the New Product Tier (consisting of channels WGN, WTBS, TNT, and The Nashville Network) is disapproved in its entirety. Grantee shall reduce all current rates in excess of the above maximum permitted rates by no later than July 1, 1995. SECTION 3. For the period after July 14, 1994, Grantee shall refund to subscribers that portion of previously paid basic service tier rates in excess of the permitted rates established in Section 2 of this resolution. All refunds shall include interest computed at the same rate as established by the United States Internal Revenue Service for tax refunds and additional tax payments. Grantee, in its discretion, may implement the refund required in Section 2 in the following manner: (a) By returning overcharges to those subscribers who actually paid the overcharges, either through direct payment or as a specifically identified credit to those subscribers' bills; or (b) By means of a prospective percentage reduction in the rates for the basic service tier or associated equipment to cover the cumulative overcharge. This shall be reflected as a specifically identified, one-time credit on prospective bills to the class of subscribers that currently subscribe to the cable system. Notwithstanding the above, the refund of the additional outlet charge shall only be made to that class of subscribers that paid the charge. SECTION 4. Attached hereto as Exhibit "A" is the refund plan implementing City Resolution No. 94-79. The City Council hereby approves the refund plan and orders Grantee to begin issuing basic service subscribers a $0.69 credit by no later than July 1, 1995. SECTION 5. Grantee shall submit a plan implementing the refunds ordered in this resolution within 30 days after the date this resolution is adopted by the City Council. The City Manager may approve or disapprove the plan. Any interested party may appeal the City Manager's decision to the City Council within ten (10) days of the decision. SECTION 6. Grantee shall notify the City of the gross amount of the refund owing subscribers and the amount of the refund upon which Grantee paid any franchise fee to the City. Within thirty (30) days of receiving the statement from Grantee, the City shall refund to Grantee that portion of the franchise fee that was paid on refunds made to subscribers. SECTION 7. Should Grantee appeal this rate determination of the City Council of the City of Costa Mesa to the FCC pursuant to Section 76.944 of the Rules and Regulations of the Commission, the City Council does grant an automatic stay of the execution of the refund ordered hereunder. Such stay does not constitute a change in the effective date or implementation date of this resolution. Nor does such stay in any way constitute an endorsement of the rates and charges in effect after July 14, 1994. SECTION 8. The City Clerk is directed to serve a copy of this resolution on Grantee by United States First Class Mail, and further to post a copy of this resolution in such place or places as City Notices are normally posted and to make copies of this decision available to the public at the office of the City Clerk during normal business hours. SECTION 9. The City Clerk is directed to notify the FCC of the findings of Diehl, Evans & Company of this resolution. Specifically, the Clerk shall notify the FCC that Grantee charged $8.32 for the cable programming service tier for the period from July 15, 1994, through October 1, 1994, but that Diehl, Evans & Company's analysis states that the rate should be $8.28 per month. The City Clerk shall further notify the FCC that the Grantee increased this rate to $8.48 on October 1, 1994, and to $9.40 on February 1, 1995. The Grantee justified $0.83 of the second increase on the basis of the addition of "America's Talking" and "Fx" channels, but the FCC's "going forward" rules only allow a $0.70 increase for these two channels. SECTION 10. This resolution shall become effective as of the date of adoption. PASSED AND ADOPTED this 5th day of June, 1995. ATTEST: I . L, D22--�� — -0� Deputy City Clikk of the City of Costa Mesa 1,9-t4� MayW of the City of Costa Mesa PROVED AS TO FORM CITY ATTORNEY 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No.� was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 5th day of June, 1995, by the following roll call vote: AYES: CK 5oA) I&FFA N6,QR J 13,uCKL9- ma/,IFl14 qA) NOES: GE A) 1 �5 ABSENT: rJ pN 1:� IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 6th day of June, 1995. -T &"�Zc Deputy Cit Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa 010 Ri-e a R its 0 ca!t 4040 J, K3 ob 98 df P -3 cacg - " zq t43 V4 3146 Q O 0 ca!t 4040 J, K3 ob 98 df Z c 3146 Q C4 -4 to la VA Ou� 3N NN 4 ch fo rr JVD Sig 8t! Z c Q C4 -4 to la —A CCP 4 ch rr Sig 8t! 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