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HomeMy WebLinkAbout5891 RESOLUTION NO. 5891 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DISAPPROVING THE RATES PROPOSED BY TCI CABLEVISION OF LOS ANGELES COUNTY FOR THE BASIC SERVICE TIER IN THE FORM 1210 FROM JULY 1, 1994 TO MARCH 31, 1995, ORDERING A REFUND TO SUBSCRIBERS AND MAKING FINDINGS IN CONNECTION THEREWITH WHEREAS, the Cable Television Consumer Protection and Competition Act of 1992 (the" 1992 Cable Act") and the regulations adopted pursuant thereto by the Federal Communications Commission (the "FCC Regulations") permit the City of Arcadia to regulate the cable television subscriber rates charged by TCI Cablevision of Los Angeles County ("TCI") for the Basic Service Tier and associated equipment; and WHEREAS, the FCC regulations establish the guidelines, rules and regulations under which the City may regulate such rates, and pursuant to these regulations, the City of Arcadia on September 2, 1993, was certified by the FCC to regulate the Basic Service Tier and on this date, duly notified TCI of this certification and the rate regulation authority granted thereby; and WHEREAS, the City has adopted regulations with respect to the Basic Service Tier and associated equipment that are consistent with the regulations prescribed by the Commission, and furthermore, the City has adopted procedural laws and regulations applicable to rate regulation proceedings which provide a reasonable opportunity for consideration of the views of interested parties; and WHEREAS, on April 13, 1995. TCI filed with the City its FCC Form 1210 purportedly showing the manner in which TCI established increases in its rates for the Basic Service Tier and after reviewing this form in accordance with FCC regulations, the City determined that the Form 1210 submitted by TCI contained deficiencies and failed to conform to the FCC regulations; and WHEREAS, on April 14, 1995, the City issued an order pursuant to Section 76.933(b) of the Rules and Regulations of the Federal Communications Commission stating that based upon the materials submitted by the Operator. it was unable to determine the existing or proposed rates were within the Commission's permitted Basic Service Tier charge or actual cost of equipment and that the City was tolling the thirty-day deadline found in Section 76.933(a) of the Commission's Rules and Regulations for the purpose of requesting and/or considering additional information or to consider the comments from interested parties for an additional ninety days; and WHEREAS, on June 28, 1995, the City issued an accounting order pursuant to Section 76.933(c) of the Rules and Regulations of the Commission requiring the operator to keep an accurate account of all amounts received by the Operator by reason of the rates and charges for the Basic Service Tier as found in the FCC Form 1210 indicating on whose behalf such amounts were paid; and WHEREAS, the City retained Communications Support Group ("CSGn), the City's cable television consultant, to review the Form 1210, the additional information submitted by Tel, and TCI's records relevant thereto; and WHEREAS, CSG reviewed the additional information provided byTCI on August 18, 1995 and the additional information and documentation was used by CSG to determine a reasonable rate for the purposes of making a rate decision; and WHEREAS, the City has given proper notice of this hearing pursuant to Section 76.935 of the Rules and Regulations of the Federal Communications Commission and has provided a reasonable opportunity for the consideration of the views of interested parties, and moreover, the City has considered the views of interested parties as expressed at this public hearing; and NOW, THEREFORE, THE ARCADIA CITY COUNCIL, based upon the evidence submitted, including but not limited to the Form 1210 submitted by TCI, the staff and consultant reports and all other written and oral evidence received in connection with this matter, does hereby find, determine and order as follows: Section 1. The increase in the rate for the Basic Service Tier established by TCI is unreasonable and does not comply with the FCC regulations due to the fact that as it pertains to TCI's full reduction rate proposed in the Form 1210, TCI failed to correctly calculate the amortization of the equipment included in franchise-related costs. Using the correct estimate of the useful life of the equipment (7 years). the maximum permitted rate for the basic service tier is determined to be $11.64 per month rather than the $12.20 rate established by TCI. Section 2. The proposed rate for the Basic Service Tier as identified on the FCC Form 1210. dated April 13, 1995, is unreasonable within the meaning of Section 76.941 in that said rates and charges do not comply with 47 U.S.C. Section 453 and Sections 76.922 and 76.923 of the Rules and Regulations of the Commission for the reasons and grounds as previously set forth herein. Section 3. The Operator is hereby ordered and directed to credit subscribers the difference between the prescribed rates and the rates actually charged for the period October 1, 1995, to present within sixty days from the City's adoption of this resolution. Section 4. The Operator is hereby directed and ordered to provide a Refund Plan ("Refund Plan") to the City within thirty (30) days of this hearing proposing the method of refund to subscriber rates and charges collected by the Operator in excess of the rates and charges approved herein since March 31,1995, along with such written evidence and documentation demonstrating the reasonableness and appropriateness of said Refund Plan under standards set forth in Section 76.942 of the Rules and Regulations of the Commission. Section 5. Should the Operator appeal this rate determination of the City Council of the City of Arcadia 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 of the implementation of this resolution. Nor does such stay in any way constitute an endorsement of the rates and charges in effect from March 31, 1995. Section 6. The City Clerk is hereby directed to post a copy of this resolution in such place or places a City Notices are normally posted and to make copies of this written decision available to the public during normal business hours. Section 7. That the City Clerk shall certify to the adoption of this Resolution. Passed. approved and adopted this 21 ATTEST: J) Ci APPROVED AS TO FORM: ~~If M~ City Attorney of the City of Arcadia STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS: CITY OF ARCADIA I, JUNE D. ALFORD, City Clerk of the City of Arcadia, hereby certify that the foregoing Resolution No. 5891 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 21st day of November, 1995 and that said Resolution was adopted by the following vote, to wit: AYES: Councilmember Chang, Kuhn, Ulrich, Young and Lojeski NOES: None ABSENT: None 1) Arcadia Ci