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HomeMy WebLinkAboutReso 1994-17545 RESOLUTION NO. 17545 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA PURSUANT TO SECTIONS 76.933(C), 76,936, 76.940, 76.941 AND 76.942 OF THE RULES AND REGULATIONS OF THE FEDERAL COMMUNICATIONS COMMISSION DISAPPROVING THE EXISTING RATES AND CHARGES FOR THE DASIC SERVICE TIER AND ASSOCIATED EQUIPMENT FOR COX CABLE SAN DIEGO, INC., PRESCRIBING RATES AND CHARGES FOR THE BASIC SERVICE TIER AND ORDERING A REFUND FOR SUBSCRIBERS WHEREAS, the City of Chula Vista (the "City") has been certified by the Federal Communications Commission (the "Commission") to regulate the Basic Service Tier, and associated equipment, which certification was effective on November 12, 1993; and, WHEREAS, the City has provided written notice of said certification to Cox Cable San Diego, Inc. (the "Operator") on December 10, 1993; 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, WHEREAS, 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, the City has delivered a written request to the Operator to file its schedule of rates for the Basic Service Tier and associated equipment with the City on December 10, 1993; and, WHEREAS, the Operator has filed with the City an FCC Form 393 on January 10, 1994; and, WHEREAS, on February 1, 1994, the City notified the Operator pursuant to Section 76.933(b) of the Rules and Regulations of the Federal Communications Commission that it was unable to determine based upon the materials submitted by the Operator that 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 May 3, 1994, the City Council ordered the Operator to keep an accurate accounting of all amounts received by reason of the rates proposed by Operator on its FCC Form 393 and on whose behalf such amounts were paid; and, Resolution No. 17545 Page 2 WHEREAS, on May 3, 2994, the City Council continued the Public Hearing to June 21, 1994, at the request of the Operator; and, WHEREAS, the City has reviewed all relevant information including, but not limited to, the FCC Form 393 dated September 1,1993, the Report of Public Knowledge, Inc. (the City's "Consultant") dated March 7, 1994; the letter from the Operator dated May 19, 1994; the letter from the Consultant dated June 6, 1994; the staff reports; and other relevant written evidence; 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, WHEREAS, the City has provided a reasonable opportunity for the consideration of the views of interested parties; and, WHEREAS, the City has considered the views of interested parties as expressed at this public hearing, as continued from time to time; and, WHEREAS, the City has now made a final decision upon the appropriateness, or lack thereof, of the existing rates and charges for the Basic Service Tier and associated equipment as identified on the FCC Form 393 dated September 1, 1993. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The existing and proposed rates and charges for the Basic Service Tier and associated equipment as identified in the FCC Form 393 dated September 1, 1993 are hereby found and determined to be unreasonable because they are not in compliance with the applicable FCC benchmark standards and are therefore disapproved in part for the reasons, and on the grounds, as contained in the Consultants' Report dated March 7, 1994, and the Consultants' letter dated June 6, 1994, all of which are incorporated into this Resolution by reference as if fully stated herein. Section 2. This Resolution constitutes a written decision disapproving in part the initial rate within the meaning of Section 76.936 of the Rules and Regulations of the Commission. Section 3. The Operator is hereby ordered to reduce and modify the rate for the Basic Service Tier from $7.91 per month to $7.75 per month contingent upon the Operator filing a revised FCC Form 393 with updated numbers justifying the $7.75 rate. Absent the Operator submitting such a revised FCC Form 393, the Operator is ordered to reduce and modify the rate for the Basic Service Tier from $7.91 per month to $7.72 per month. Section 4. The Operator's monthly subscriber rate of $7.75 or $7.72, as determined by Section 3 above, shall be made retroactive to September 1, 1993. Resolution No. 17545 Page 3 Section 5. The Operator is hereby directed and ordered to provide a Refund Plan ("Refund Plan") to the City Manager within fifteen (15) days of the effective date of this Resolution, pursuant to which it proposes to refund to subscribers rates and charges collected by the Operator in excess of the rates and charges approved herein since September 1, 1993, or the earliest date from which the refund period may run pursuant to the Rules and Regulations of the Commission, along with such written evidence and documentation demonstrating the reasonableness and appropriateness of said Refund Plan under the standards set forth in Section 76.942 of the Rules and Regulations of the Commission. Said Refund Plan shall reflect appropriate interest due to subscribers for the refund. Section 6. On July 25, 1994, the City Clerk is directed to post a copy of this resolution in such place or places as City Notices are normally posted and to make copies of this written decision available to the public at the office of the City Clerk during normal business hours. Section 7. It is the intent of the City Council that the text of this decision not be deemed released, within the meaning of Section 76.944(b) of the regulations of the Commission, until July 25, 1994. Section 8. This Resolution shall become effective on July 25, 1994, which shall be the date that the Operator's thirty-day appeal period begins under Commission regulations. Presented by Approved as to fo by R. Thomson ~' Bruce M. Boogaard Deputy City Manager City Attorney Resolution No, 17545 Page 4 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 21 st day of June, 1994, by the following vote: YES: Councilmembers: Fox, Horton, Moore, Rindone NOES: Councilmembers: None ABSENT: Councilmembers: Nader ABSTAIN: Councilmembers: None M2yh~r;!~°mnpore ATTEST: Bed~rly~. Au'thel~;t, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17545 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 21st day of June, 1994. Executed this 21 st day of June, 1994. Beveriy 2¢. Au~helet, City Clerk