HomeMy WebLinkAbout94-79 - Establishing Maximum Initial Rates for Cable Services and Ordering a Refund for Excessive Rates220
RESOLUTION NO. 94-79
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, ESTABLISHING
MAXIMUM INITIAL PERMITTED RATES FOR REGULATED
CABLE PROGRAMMING SERVICES AND EQUIPMENT AND
ORDERING A REFUND FOR EXCESSIVE RATES.
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 rates for cable
programming services and equipment pursuant to the Cable Television Consumer Protection and
Competition Act of 1992; and
WHEREAS, Copley/Colony Cablevision of Costa Mesa, Inc. ("Copley/Colony") holds
a franchise to operate a cable television system within the City of Costa Mesa; and
WHEREAS, on or about November 16, 1993, the City requested Copley/Colony to
submit a FCC Form 393 in order to establish the maximum initial rates for regulated cable
programming services that Copley/Colony may charge; and
WHEREAS, on or about November 29, 1993, Copley/Colony filed its Form 393 with
the City seeking approval of its maximum initial permitted rates for regulated cable
programming service and equipment; and
WHEREAS, the City has obtained reports from Diehl, Evans & Company, dated June
14, 1994, and from Burke, Williams & Sorenson, dated June 20, 1994, analyzing the Form 393
submitted by Copley/Colony; and
WHEREAS, the City Council has held a public hearing pursuant to Section 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 Copley/Colony, concerning the Form 393 submitted by
Copley/Colony and the reports received from the City's consultants; and
WHEREAS, the City Council has considered the testimony received during the public
hearing and the reports presented by the City's consultants;
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Costa
Mesa hereby resolves, determines and orders as follows:
Section 1. The maximum initial permitted rates for regulated cable programming
services and equipment shall be as follows:
Basic service tier (33 channels) $10.36
Installation of unwired homes 34.18
Installation of prewired homes 27.34
Installation of additional connection 17.08
at time of initial installation
Installation of additional connections 34.18
as separate installation
New install - underground 51.27
Charge for changing tiers 2.00
Monthly charge for lease of remote control
Monthly charge of converter box
0.26
1.64
Copley/Colony shall implement the above rates no later than thirty (30) days after the
date this resolution is approved by City Council.
Section 2. For the period from September 1, 1993, through the date that
Copley/Colony implements the maximum initial permitted rates set forth in Section 1,
Copley/Colony shall refund to subscribers that portion of previously paid basic service tier,
equipment, and installation rates in excess of the permitted rates established in Section 1 of this
resolution. Copley/Colony shall implement the refund no later than thirty (30) days after the
date this resolution is approved by City Council.
Section 3. Copley/Colony, 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' bill; or
B. By means of a prospective percentage reduction in the rates for the bask 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.
Section 4. All refunds required pursuant to Section 2 shall include interest computed
at the same rate as established by the United States Internal Revenue Service for tax refunds and
additional payments.
Section 5. At least ten (10) days prior to implementing any refunds, Copley/Colony
shall notify the City how it intends to implement the refund order and how it calculated the
amount of the refund.
Section 6. Copley/Colony shall notify the City of the gross amount of the refund
owing subscribers and the amount of the refund upon which Copley/Colony paid any franchise
fee to the City. Within thirty (30) days of receiving the statement from Copley/Colony, the City
shall refund to Copley/Colony that portion of the franchise fee that was paid on refunds made
to subscribers.
Section 7. City Council has determined that the maximum rate for the cable
programming service tier is $0.314 per channel, or $8.48 for the 27 channels offered.
However, Copley/Colony is charging subscribers $9.07 for the cable programming service tier.
The City Manager is hereby directed to bring this discrepancy to the attention of the FCC for
the purpose of determining if subscribers are entitled to a refund and/or a prospective rate
reduction on the cable programming service tier.
PASSED AND ADOPTED this 15th day of August, 1994.
Mayor of the City of Costa Mesa
ATTEST:
Deputy Ci Clerk of the City of Costa Mesa
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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. 94-79 was
duly and regularly passed and adopted by the said City Council at a regular meeting thereof held
on the 15th day of August, 1994.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City
of Costa Mesa this 16th day of August, 1994.
Deputy CiO Clerk and ex -officio Clerk of
the City C uncil of the City of Costa Mesa
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