HomeMy WebLinkAboutReso 1996-18447 RESOLUTION NO. 18447
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA 1) DISAPPROVING UPGRADE-RELATED INCREASES IN
MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER;
2) DIRECTING STAFF TO FILE A COMPLAINT WITH THE FCC
ON BEHALF OF LOCAL SUBSCRIBERS REGARDING UPGRADE-
RELATED INCREASES IN THE CABLE PROGRAMMING SERVICE
TIER RATES 3) APPROVING PROPOSED COST-BASED RATE
DECREASES FOR ASSOCIATED EQUIPMENT; AND 4)
APPROVING PROPOSED COST-BASED INCREASES IN THE
MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER
WHEREAS, in May 1996, Cox Communications instituted a ~3.79 increase in its Cable
Programming Services (CPS or "expanded service") tier which charge is subject to FCC
regulation, thus any complaints must be filed with the FCC; and
WHEREAS, at the same time, Cox proposed to raise its Maximum Permitted Rates for
the Basic Service Tier, which is subject to City regulation; and
WHEREAS, both of these changes were based on costs to upgrade Cox's
infrastructure; and
WHEREAS, further cost-based increases in Maximum Permitted Rates were requested
in July, along with decreases in the rates for associated equipment/installations (e.g. charge
per installation; rental of decoder boxes, remote controls); and
WHEREAS, a study by Public Knowledge, Inc. of Cox's methodology in spreading its
upgrade costs called into question both the Basic and CPS share of the upgrade; and
WHEREAS, said study also found the cost-based increases to be appropriately justified;
and
WHEREAS, accordingly, staff is presenting a recommendation to deny and/or protest
the questionable upgrade-related rates, approve the equipment rate decreases and approve
the cost-based service charge increases; and
WHEREAS, on those portions of the rate requests with which the City disagrees, the
FCC is the final arbiter and should Cox wish to institute such rate increases above the City's
objections, they would be required to file an appeal with the FCC in conjunction with any rate
increase; and
WHEREAS, if the FCC finds in the City's favor, any overcharges would be subject to
refund by Cox.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby 1 ) disapprove upgrade-related increases in maximum permitted rates for the basic
service tier; 2) direct staff to file a complaint with the FCC on behalf of local subscribers
regarding upgrade-related increases in the cable programming service tier rates 3) approve
Resolution 18447
Page 2
proposed cost-based rate decreases for associated equipment; and 4) approve proposed cost-
based increases in the maximum permitted rates for the basic service tier.
Presented by Approved as to form by
Gerald Young Ann Y. Moore
Principal Management Assistant Acting City Attorney
Resolution 18447
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 22nd day of October, 1996, by the following vote:
AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Horton
NAYES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
~,~. , /~
Sl~e~'l-lorton, Mayor
ATTEST:
Beverly ~. Authelet, 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. 18447 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 22rid day of October,
1996.
Executed this 22rid day of October, 1996.
~Authelet, City Clerk