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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:
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APPROVED AS TO FORM:
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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
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