Item 9 - Southwestern CA TV Rates for Basic CA TV Svs in Poway AGENDA REPORT SUMMARY
TO: Honorable ]~layor and Members of the City Council ~
FROM: James L. Bowersox, City Mana~
BY: John D. Fitch, Assistant City Manage~/~
INITIATED
Robert L. Thomas, .Director of Commuli/ty Service.$~ ,
Patrick. R. Foley, Prmcipal Management AnalystJ~ff~f
DATE: January 17, 1995
SUBJECT: Southwestern Cable TV Rates for Basic Cable Television Services in the City of
Poway
ABSTRACT
Southwestern Cable TV has submitted its Federal Communications Commission (FCC) Forms
1200, 1205, and 1210 to the City. Based on the city's cable consultant review of these
forms, staff is recommending that the City Council determine that Southwestern's
proposed rates and charges for the Basic Service Tier and associated equipment are in
substantial conformity with the applicable FCC Benchmark Standards.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
The 2.6 percent increase in cable rates will result in a slight increase in the City's
cable franchise fee revenue.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF
Additional notification sent to Ann Burr, Southwestern Cable TV.
RECOMMENDATION
It is recommended that the City Council determine that Southwestern's proposed rate and
charges for the Basic Service Tier and associated equipment are in substantial
conformity with applicable FCC Benchmark Standards.
ACTION
JANl?1995 ITEM 9
- AGENDA REPORT
CITY OF POWAY
This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the
City Council unless members of the Council staff or public request it to be removed from the Consent Calendar and
discussed separately if you wish to have this report pulled for discussion, please fii~ out a slip indicating the report number
and give it to the Cit~ Clerk pdor to the beginning of the City Council meeting.
TO: ~onorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Manj~
INITIATED BY: John D. Fitch, Assistant City Manage~
Robert L. Thomas, Director of Community Service~,~ ~ ' /
Patrick R. Foley, Principal Management AnalysV~
DATE: January 17, 1995
SUBJECT: Southwestern Cable TV Rates for Basic Cable Television
Services in the City of Poway
BACKGROUND
The City of Poway is authorized to regulate rates and charges for Basic Tier
cable service and associated equipment, under the federal "Cable Television
Consumer Protection and Competition Act of 1992 (Cable Act of 1992}."
Based on the Cable Act of 1992, the Federal Communications Commission {FCC)
issued rules and regulations requiring cable operators to implement new rates
for Basic Tier service using FCC developed benchmarks on its calculations.
FINDINGS
In accordance with City Council direction, the City's cable consultant, Jay
Smith of Public Knowledge, analyzed Basic Service Tier rate information filed
by Southwestern on FCC Form 393, "Request for Cable Rate Approval," to
determine if the new rates were in compliance with the FCCs requirements.
The cable consultant's Form 393 review resulted in a finding that Southwestern
was overcharging for Basic Tier service. The consultant recommended that
Southwestern's rates be reduced by .15¢ per month retroactive to September 1,
1993.
ACTION:
JAN 1 7 1995
Agenda Report -
January 17, 1995
Page 2
On May 24, 1994, the City Council adopted a resolution ordering Southwestern
Cable to reduce its rate for the basic tier by .15¢ and provide refunds to
subscribers for basic service retroactive to September 1, 1993.
On August 11, 1994~ Southwestern notified the City that it would implement a
refund to subscribers in the City of Poway. The refund plan was implemented
by means of a one-time credit of $1.48 on bills of current subscribers to the
Basic Service Tier. The refund period ran from September 1, 1993 through May
14, 1994. The refunds were issued in Southwestern subscribers' August or
September 1994 statements.
Form 1200 Review
The City's cable consultant has reviewed the FCC Forms 1200 and 1205 (dated
August 12, 1994) and then Form 1210 (dated October 14, 1994) submitted to the
City of Poway by Southwestern Cable TV.
The cable consultant is recommending that the City approve Southwestern's
maximum permitted rates for basic service as filed on the Form 1200 (dated
August 12, 1994) and Form 1210 (dated October 14, 1994). The new rate for the
basic service will increase from $10.13 monthly to $10.39. This is a 2.6
percent increase. The new rates will go into effect on February 15, 1995.
The consultant is also recommending that the City request Southwestern to file
.- revised Forms 1200 and 1205 to include copyright fees in programming costs
(there will be no effect on maximum permitted rates).
ENVIRONNENTAL REVIEW
This item is not subject to CEQA review.
FISCAL INPACT
The 2.6 percent increase in cable rates will result in a slight increase in
the City's cable franchise fee revenue.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF
Additional notification sent to Ann Burr, Southwestern Cable TV.
RECONMENDATION
It is recommended that the City Council determine that Southwestern's proposed
rate and charges for the Basic Service Tier and associated equipment are in
substantial conformity with applicable FCC Benchmark Standards.
JLB:JDF:RLT:PRF
(C: \ DATA\AGI:NDA \ BAS,ATE, 5WC )
3 of 3 JAN 1 ? 1995 ITEM g