Item 13 - Authorization to Obtain Certification from FCC
AGENDA REPORT SUMMARY
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TO: Honorable Mayor and Members of the City Council
-FROM: James L. Bowersox, City Manager
INITIATED BY: Robert L. Thomas, Director of Community servi~
Patrick R. Foley, Principal Management ADaly
DATE: June 15, 1993
SUBJECT: Authorization to Obtain Certification from the Federal Communications
Commission for the City of Poway to Regulate Basic Cable Service Rates
and Initial Finding of Lack of Effective Competition
ABSTRACT
The Cable Television Consumer Protection and Competition Act of 1992 has become law.
Under the provisions of this law, the city of Poway may obtain certification from the
Federal Communications Commission (FCC) to regulate basic cable service rates, Under
the terms of the 1992 Cable Act, effective competition does not exist in Poway, Staff
is recommending that the City Council authorize staff to submit the appropriate
documentation to obtain certification from the FCC to regulate basic cable service
rates in the City of Poway,
ENVIRONMENTAL REVIEW
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, fhis action is not subject to CEQA review.
FISCAL IMPACT
The City receives over $250,000 annually in franchise fees from the cable operators.
An allocation of $50,000 will be included in the FY 1993-94 budget for the purpose of
hiring consultants to assist staff in the regulation and enforcement of cable rates.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Additional notification sent to Robert McRann, Cox Cable; Ann Burr, Southwestern Cable
TV; and William Marticorena, Rutan & Tucker.
RECOMMENDATION
It is recommended that the City Council authorize staff to submit the appropriate
documentation to obtain certification from the FCC to regulate basic cable service
rates in the City of Poway.
ACTION
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~ AGENDA REPOR'!
CITY OF POW A Y
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 fill out a slip indicating the report number
and give it to the City Clerk prior to the beginning of the City Council meeting.
TO: "",,,01. "..,,, "d ...."'.Sj6 CIty'""'''
FROM: James L, Bowersox, City Ma
INITIATED BY: Robert L, Thomas, Director of Community servic~
Patrick R. Foley, Principal Management Analyst
DATE: June 15, 1993
SUBJECT: Authorization to Obtain Certification from the Federal
Communications Commission for the City of Poway to Regulate
Basic Cable Service Rates and Initiate Findings of Lack of
Effective Competition
BACKGROUND
The Cable Television Protection and Competition Act of 1992 has become law.
This new legislation restores to local governments significant authority to
control cable rates and enforce customer service standards.
FINDINGS
On May 3, 1993, the Federal Communications Commission (FCC) released Report
and Order in MM docket No. 92-266, containing the rate regulations for cable
service and leased access. The provisions become effective June 21, 1993.
Under the terms and conditions of the Cable Act, effective competition does
not exist in the City of Poway. Staff is requesting authorization to obtain
certification from the FCC for the City to regulate basic cable service rates
in Poway. Cable rates remain deregulated until certification. The cable
rates will become fixed 30 days after the City becomes certified by the FCC.
The FCC will regulate cable rates only if the franchise authority does not
have franchise fees to cover the cost of regulation.
Within 120 days of certification from the FCC, the City will adopt and
administer regulations pertaining to basic cable service that are consistent
with the regulations adopted by the FCC pursuant to 47 U,S.C. ss 543(b).
The City's rules and regulations pertaining to rate regulation proceedings
provide a reasonable opportunity for consideration of the views of interested
parties. All interested parties will be given the opportunity to provide
their in ut to the i i
ACTION:
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Agenda Report
1992 Cable Television Act
June 15, 1993
- Page 2
Under the current cable franchise agreements with Cox Cable and Southwestern
Cable, the City of Poway has the legal authority to adopt cable rates in
compliance with the Cable Television Consumer Protection and Competition Act
of 1992, and to have staff administer the rates.
ENVIRONMENTAL REVIEW
This action is not subject to CEQA review.
FISCAL IMPACT
The City receives over $250,000 annually in franchise fees from the cable
operators, An allocation of $50,000 will be included in the FY 1993-94 budget
for the purpose of hiring consultants to assist staff in the regulation and
enforcement of cable rates.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Additional notification sent to Robert McRann, President and General Manager,
Cox Cable; Ann Burr, President, Southwestern Cable TV; and William
Marticorena, Rutan & Tucker.
RECOMMENDATION
-
It is recommended that the City Council authorize staff to submit the
appropriate documentation to obtain certification from the FCC to regulate
basic cable service rates in the City of Poway.
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JllN 1 5 1993 ITEM 13
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