HomeMy WebLinkAboutAgenda Statement 1977/10/25 Item 05, 05aCITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT
Item No. S,Sa
For meeting of 10/25/77
Public Hearing Considering Intention to Adjust Consumer Rates
ITEM TITLE Mission Cable TV services in Chula Vista
Resolution pg~~ Approving Rate Increases for Mission Cable
SUBMITTED B,Y"~'l Director of Finance
ITEM EXPLANATION
(4/5TH'S VOTE REQUIRED YES- NO X )
for
TV, Inc.
On May 3, 1977 Mission Cable TV, Inc., filed an application to increase rates for
cable television services with the City Council. The City Council on the same date
referred the request to staff for a report, and appointed Councilman Egdahl to
serve on a committee with the Assistant City Manager and the Director of Finance.
The original application for a rate increase (Exhibit A) submitted by Mission Cable
TV called for maximum rates of $9.52 and $10.52, respectively, for 12-channel and
20-channel service. Our present rates for this service are $6.50 for the former and
$7.50 for the latter. This represented increases of 46.5% and 40.3%.
In addition, there are proposed increases for other categories of service, including in-
stallation and construction, as well as creation of new charges for such items as account
set-up, services transfer, and delinquent account collection.
In its application, Mission Cable TV noted .that the proposed rates are maximum
charges and requested they be allowed to adjust rates up to the maximum, dependent
upon the elasticity of the market place. This would mean that rate increases could
be implemented without Council review and approval.
Since submission of the original application, Mission Cable TV has altered their
request as evidenced by their revised request of August 9, 1977 (Exhibit B). They
are now requesting that the City adopt the monthly service rates ($7.75 and $8.75)
approved by the City of San Diego in September, 1977. They have also made revisions
in the remainder of the fee schedule to more closely conform to the schedule approved
by the City of San Diego.
The committee has had numerous meetings with officials from Mission Cable TV, and
also with County and City of San Diego officials involved with regulating cable
television rates and services. As indicated in the rate study (Exhibit C) the
rvurnrrn
tht11I31 ~ J
Agreement Resolution- Ordinance- Plat_ Notification List_
Other X ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
N/A
STAFF RECOMMENDATION
Adopt resolution approving rate increase.
BOARD/COMMISSION RECOMMENDATION
N/A
COUNCIL ACTION
A F P H
OvED G~
b;; tl~~%
k., ~ouroil
(',iii
,~ vaiifornia
`;
...
~. i ° '~ /
cr~~;.~,~ ZS
.,..
............
Ts'Y.CG... _._.
Page 2 CITY OF CHULA VISTA ?tam No. S,Sa
10/25/77
COUNCIL AGENDA STATEMENT
Public hearing to consider - and Resolution
ITEM TITLE Approving Rate Increases for Mission Cable TV, Inc.
committee recommends that a rate increase is justified for the following reasons:
1) The proposed increase is necessary to allow the company to earn a
fair rate of return on their investment. Somewhere between 11 and
12 per cent is considered fair by San Diego City and County Rate
Analysts. We are recommending an 11.17% rate of return.
2) The last increase granted to the company was on October 29, 1974. Since
that time the Consumer Price Index for the San Diego area has risen
20.13%. Recommended increases for 12 and 20 channel services approved
in the report reflect increases of 19.2% and 16.7%, and are within the
Consumer Price Index for the period under review.
3) The proposed rates would be consistent with rates approved in the
Cities of E1 Cajon, La Mesa, National City, Imperial Beach, as well
as, the City of San Diego.
4) A uniform rate structure will effect mutual economies in billing
procedures, both for the company and the City.
5) The average rate of return for the cable TV industry nationally
ranges from 10 to 16 per cent. Recommended increases fall well within
this category.
In addition to the rate study and report, Council has asked Mission Cable TV
for an up-date regarding certain items concerning franchise operations. Their
response is attached in two letters addressed to the Mayor and Council. The
first letter concerns operations and the second letter is a further justification
for maintaining connection rates at $20.00 instead of the committee recommended
rate of $15.00 (Exhibit D).
City Council Meeting
-7- October 35, 7977
Capital Improvement Program Councilman Hobel said he wanted to see a capital improve-
ment schedule within the franchise agreement °to know
where they are heading" - where they are spending their
capital improvement money. He mentioned the possibility
of a studio in Chula Vista as improvements have been
put in The new Library so they could use this facility.
Bruce Fllis, General Manager Mr. Ellis explained Yhat they have a budget for 1978, ~~
Mission Cable TV, Snc. and have developed a three-year plan for 1978-79-80,
but there are not that many capital improvements for
Chula Vista ai this time. There are some areas in this
City that are not built out and this is pare of their
three-year plan. He would have no objection to putting
this schedule in the franchise agreement, but would prefer
to delineate the three-year plan in a letter to the
Mayor and Council. I
Councilman Hobel indicated it would be better to have
this spelled out in the franchise agreement and to
include any other community type services. Director of ~
~
Finance Grant seated that this schedule could he made ~
a part of the resolution.
'PV Dealer rates Mr. Ellis noted a change in the rate schedule for TV
Dealers. Instead of basing the cost on the number of
outlets for the tel cvision s, they are proposing a flat '
rate of $10 a month.
Schedule 1 of the Report Mayor Hyde noted that the resolution refers io Exhibit A
as the rate schedule whereas it should be Schedule 1 of
the staff report.
Gene York Mr. York protested the proposed increase in the commercial
16U Bright wood rate - speaking in the category o£ 21 to 40 hookups. He
Chula Vista has two complexes in the commercial rate - one has 23
units with a rate of §2.49 and the other has 34 units -
rate of $2.15. Calculai ing the increases, it would be
104% higher or a total billing from $130.47 to $265.05 -
a $130.00 increase per month.
Mr. Ellis explained that this matter was a complex one -
the company still has to design and plan service for
apartment complexes. There is a saving in sending out
one billing; however, at this time, Chula Vista has the
Lowest commercial r¢t e. What is happoning is that the
residential subscribers are subsidizing the people ~aho
live in the apartments. That is the reason for the
requested increase in commercial rate - to make them
more uniform.
RECfiSS A recess was called at 9:47 p.m. and the meeting
reconvened at 10:00 p.m.
3a. RESOIDTION N0. 8855 - Offered by Mayor Hyde as drafted by staff, clarifying that
AFPRGVIVG RA'PC: INCItF:ASES Exhibit A represents the rate schedule as recommended
FOR hIISSIOY CABLE TV, INC. on Schedule 1 of Exhibit C which is n letter from Mr.
Grant vin Mr. Asmus to Mr. Cole dated August ]0, 1977 -
Report on Mission Cable TV rate increase.
Mot ion for capital It was moved by Mayor Hyde, seconded by Councilman Scott
improvement schedule and unanimously carried that the resolution be amended
to include a requirement that an attachment showing
capital improvement programs in the Chula Vista service
area for the next three years be included as part of
the rate agreement. _
City Council ~teeti ng -8- Goober 25, 1977
Discussion of resolution Councilman Scott said he felt somewhat uncomfortable in
having to accept what the City of San Diego does in these
areas (cable TV, taxicabs, etc). He added that some of
the statements in the report were not entirely accurate.
The reading of the text was waived by unanimous consent
and the Resolution was passed and adopted, as amended, by
the following vote, to-wit:
AYES: Mayor Hyde, Councilmen Scott, Ggdahl, Hobel, Cox
Noes: None
Absent None
A-Channel 100 In a query from Councilman Hobel, Director of Finance
Grant said this would have to he a completely separate
document - it would have to be an ordinance amending the
franchise agreement.
blot ion for annual report It was moved by Mayor Hyde, seconded by Councilman Scott
and unanimously carried that the staff obtain a status
report from Mission Cable with regard to progress on
their capital improvement program for the first of
January - each year, starting in 1979_
CONSGNT CALIWDAIi
(Items 6-10)
6. RESOLl1TI0N N0. 8856 -
ORDERING THE FORM:\TION
OF CHULA VISTA OPEN SPACE
DISTRICT N0. 9 (F:1. RANC110
DEL REY, UNIT N0. 5 SUB-
DIVTSTONJ AND CONFIRIdI NG
THE ASSESSMENT THEREOF
It was moved by Councilman Ilobel, seconded by Council-
man Cox and unanimously carried that the Consent Calendar
be approved and adopted.
The boundary of the District is the same as the sub-
division boundary for E1 Rancho del Rey, Unit No. 5
Subdivision. The areas to be maintained by the District
are all of Lots A, B, C, D, G, H, and I. Gstimaied annual
maintenance cost is §24,230 assessing each parcel $63.10
annually.
7. RESOLUTION N0. 8857 - 'fhe strip of property in question is located above a
REMISING, RS LRAS LNG AND slope at the rear of the Goodsell lot at 381 Camino
QUITCLAIMING CB RTAIN REAL El evad o. The original plan called for the slope to
PROPERTY IN THE CITY TO begin at the end of the Goodsell lot but by some mistukq
KENNETH R. AND CAROL B. the property was graded and extended some 13 feet further.
COODSELL In good faith, the Goodsells planned several improvements
on the property which they bolt eved was theirs. The
staff believes that the property could be better muin-
taine~d by these property o~mers without undermining the
intent and purpose of the open space maintenance district
in any way.
R. RCSOLUTION N0. 8853 -
APPROb'ING 1.V EXTF,NSION OF
'fIbIE 'f0 'CHE CONTRACT FOR
THC CONSTRUCTION OF THE
ROX Cl1LVERT .4T HILLTOP
DRIVE AND '1'E LECRAPH
CANYON R0;\D
9. RESOLUTION N0. 8859 -
ORDRRING 'CI1E VACATION OF
hh\NKATO S'CREF.T RF,TIYEGN
I'IIE RD AL'HNHIi AND G:4RRF,TT
AVENUE:
10. RESOLUI'I OV N0. 3860 -
ACCEP'1'ING, DE UICAT ING AND
NAbff NG CERTAIN I2CA[. PROPERTY
IN 'fHli CITY FOR STREET AND
III GFIWAY PURPOSES LOCATED
ON OTAY U1KC:S I20AU
The contract was awarded on June 7, 1977 by Resolution
No. 8647 to Sapper Brothers, Inc. During the course of
the construction, the contractor has been delayed by
the utility companies and by rain and is asking for a
12 days' time extension. The Engineering staff recom-
mended approval.
On October 4, 1977 the Ciiy Council held a public hrv ing
on this proposed street vacation and directed that a
resolution be brought back ordering the vacation. Ease-
ments arc being reserved for the existing utiLit ics.
On July 9, 1975 Carl Rerg was granted a conditional use
permit To operate a feed barn ai 395G Ot ay Lakes Road
~a ith the condition that he dedicate to the CiTy the
required ultimate right of way for Otay Lakes Road in
front of his property. ;1r. Berg executed this ensemcnt
on Octohcr 13, 19'7.
(END OF CONSENT CALENDAR)
SC:~iUIs: I
SUI~NARY OF PRE.SEPIT, P??OPOSID & REC~-Ti•~ID RATES
Present tdission
\\
{~ Staff San Diego
`:axirmzm Pequested ~ Reco?m~ro<3
1I ~rproved
~arae Pates Pates 1 Rates / ^ates
Individual Serrice
Primarv Ser/ica
12 Caanzel System $0'.50 $7,75 $7.75 $7,75
20 Channel System $7.50 $8.75 $8.75 $8.75
AL~dltlOnal Outle t5
(i-~cluding iid) $1.75 ea, $1.75 ea. $1.T ea. $1.75 ea.
Commercial Srvice
Non-Transient (2)
12 Channel System See att.ZCY:ed $4.65/nr. outlet $4.65 pr. outlet 60°a pri^tiar
service
charge equa
$4,65
20 Channel System See attached $5.25/pr, outlet $5,25 pr, outlet 60o printer
service
chase eqa:
$5.25
Additional Outlets $1.75 $1.05 $1.05 $1.05
Transient (3) $3-$7.50 $3/pr outlet Negotiated Negotiate~.i
pe_r outlet
T.V. Dealers ~7ot Covered $10.00 fd fL
Installation Charges
Initial Installation $19.75 $20.00 $15,00 $15.00
(aerial)
Underground Instal- $30.25 Cost + 15~ Time & Maaterials Time &
lation (50' or less) Materials
Reconnect (includes $9.25 $10.00 $7.50 $7.50
prewired Units) -
Converter only in- D1ot covertul $10.00 yl yi
stallation
Additional outlets
(including P4) $9.25 $10.00 $10.00 $10.00
'4ove or P~rxlify outlet $9.25 $10.00 . $7,50 $7.50
Caccnercial Instal-
lations Actual crost Cost + 15 o Time & Paterials Tide &
Materials
S~DULE I
(continued)
Present Mission Staff San Diego
Maximum Requested Recommended Approved
Charge Rates Rates Rates Rates
Construction Charges
Abnormal Installations (4) Not covered Cost + 15o Time ~ Materials Not covered
Install prewiring Not covered Cost + 15o Negotiated Negotiated
Extend distribution Not covered Cost + 15o Time ~, Materials Not covered
lines
Special Charges
Converter Deposit - $15.00 $15.00 $12.00 $12.00
Delinquent Account
Collection at door
Not covered
$ 5.00
$ 5.00
$ 5.00
Surcharges
Federal, State and/or Prorate of Prorate of Prorate of --
City fees or taxes on Actual Actual Actual
Subscribers Service or
Gross Receipts (exclu-
sive of income or
property taxes and
franchise fees)
Public Broadcasting Prorate of Prorate of Prorate of --
and/or Copyright Fees Actual Actual Actual
~d; ~ EXHIBIT A
BEFORE. THE
CITY OF CHUL:\ VISTA
APPLICATION OF MISSION CABLE TV,)
INC., TO INCREASE RATES AND ) ,
CHARGES FOR CABLE TELEVISION )
SERVICE )
APPLICATION
Mission Cable TV, Inc. (Mission) herewith requests City approval
for Mission to implement a general increase in charges for cable
television service to reasonable and justified levels to enable
Mission to earn a fair and reasonable return on investment and
to enable the Company to continue to furnish adequate service.
The rates in effect as of the date of this application are the
maximum rates currently authorized by the City for CATV service
and are shown in Exhibit A.
All areas served by Mission under the franchise granted by Ordinance
882 are included in this Application by this reference.
Between July, 1974 and November, 1974 the City conducted hearings
and a study to determine maximum city-wide rates. Diission filed
with the City during those hearings complete financial data. The
City Council established rates lower than was determined necessary
to yield a reasonable and fair return on investment.
(l)
As indicated in Exhibit B, Mission's rate of return for calendar
years 1975 and 1976 Baas 6.520 and 4.49% respectively. The pro-
jected operating results for 1977 indicate a rate of return of
only 4.240. These rates of return were computed on an allocated
basis. System mileage was used as a basis for developing the
allocation because capital expenditures (rate base) are most
closely correlated to this. Mission believes an equitable rate
of return to be 16°s. A 16o rate of return, which is Mission's
cost of capital, requires a basic service rate of $9.52 monthly
for 12-channel service areas and $10.52 monthly for 26-channel
service areas.
Mission has begun total rebuild of the 12-channel grandfathered
system. This multi-million dollar project along with the substan-
tial capital outlays made by Mission for new cable plant facilities
since 1973 requires a continual capital flow to Mission. To ensure
that Mission can meet its requirements, the company must be authorized
subscriber rates that will provide a fair and reasonable return on
investment.
hfission would like to point out that regulation is no longer a
mandatory responsibility of local government. The Federal
Communications Commission in July, 1976 amended its rules (Docket
20681) deleting the section. that required local government to
exercise this regulatory role (FCC 76-747, FCC 2nd 1976). Mission
rates are, in the final sense, regulated in the marketplace. The
consumer's decision on whether to subscribe or disconnect will
ensure that Aission's rates do not exceed the value of its service.
(2)
Mission believes the City should permit the company and the mar-
ketplace to work together to determine value of service and the
best combination of service and price.
Therefore, because CATV is subject to the elasticit}• of the
marketplace, ?Mission suggests the City consider eliminating the
rate regulatory requirements of the franchises held by Mission.
As an alternative, Mission suggests that the City grant approval
for maximum allowable rates of $9.52 for 12-channel service areas
and $10.52 for 26-channel service areas. This would permit Mission
the flexibility to adjust rates dependent upon the elasticity of
the marketplace.
Mission is ready to proceed in this matter without undue delay
and at the City's earliest convenience.
Questions and correspondence on this application should be
directed to:
R. BruceEllis
Vice President/General Manager
h9ission Cable TV, Inc.
6225 Federal Boulevard
San Diego, California 92114
Telephone: (714) 263-5728
(3)
I hereby certify under penalty of perjery, that to the best of
my knowledge and belief, the information in this application is
true and correct.
Signed this i ~~~`
y
day of ~ '~-: ~~~ 1977.
Respectfully,
~~ c~c.<J
R. Bruce Ellis
Vice President/General bfanager
(4)
NUMBER OF OUTLETS
2 - 5 $4.00 each
6 - 12 3.00 each
13 - ZO 2.50 each
21 - 40 2.D0 each
41 - 75 1.50 each
76 - 100 1.25 each
101 - 150 1.00 each
151 - 200 .75 each
. FROPO~~ ;taTES ~.`~ Gu~RGES
SERlTC=: PRESET PROPOSED
Prima Cutlet:
$ 6
50
$ 9.52*
12 Channel Sen'ice areas .
7
50 52*
10
26 Charuiel Sen~ice .>reas . .
additional Outlet, Each 1.75 ~ 1.75
F~1 Cutlet (In addition to Pri:.ary Cu±let) Each 1.75 1.75
INST.~I.LaTION:
Primary Outlet, New 19.75 20.00*
Converter Only, Each ----- 10.00*
Additional Outlet, Each 9.25 10.00*
Reconnect Outlet, Each 9.25.;, 10.00*
A1ove or Alodify Existing Outlet, Each 9.25 10.00*
fii Outlet (In Addition to Primary Cutlet) Each ----- 10.00*
Connect Prewired Heme ----- 10.00*
Underground Service Drop ----- Cost plus 15%*
Abnormal Connection Charge ----- Cost plus 15%*
(A normal primary outlet is 150 feet from
t1:e cable plant facilities. The abnormal
connection charge will apply to reques+s
where the service involved would be greater
than 150 feet from the cable plant facilities.)
' CONSTRUCTION:
Provide Underground Distribution Trench Time and Material Cost plus 15%*
Underground Feeder Line Extension ----- Hill Cost*
Commercial Installations ----- Cost plus IS%*
CC4~SIItCL41.:
Installation Charges ----- Cost plus 15%*
Mont;ily Service (Nontransient)1 ----- 80a`of Frimar}
(See Attached) Outlet Charge
per Outlet*
biontnly Service (Transient)2 3.00/7.50 $3_pOper Outle
SURG~'.ARGFS:
Federal Commtmications Commission per subscriber ----- Actual- Pr°rat<=
fees; other Federal, State, County or City fees
or taxes on cable television service or gross
receipts including public broadcasting and copy-
right fees but excluding franchise fees, income
and property taxes.
OTHER ROTES AND CHARGES:
Account Setup Charge (in lieu of normal ----- 10.00*
installation charge)
Service Transfer Charge _____ 10.00*
Delinquent Aecoemt Collection At Door ----- 5.00*
----- 5.00*
Return Check Charge
Television Dealers, hbnthly3 10.00 10.00
Converter Deposit 15.00 15.00
tiontra,-isient commercial rates apply only to mobile
:OTE 1 hone parks, conderni*aitsrs, town-
.
and aoartnent houses and the dwelli.n2 units must be
louses 100% SL'bsCTlbed-f0~ *..o nt~?Lfy
,
`or this rate category and must be operated under one c~.~nership with one c~,iste;;.er billing.
JO'I'E 2. Transient commercial rates apply oriy to hctels, motels and hospitals.
Television dealers are cernected tc tha cc'~1e at ro cost for installatio
<CTc 5 n with a
.
conthiv se ^:;ce cost of 510.00. The deals may previd~ his ern internal distribu tion
>}'stem utilizing as many cutlets as 'r.e desires at sealer's o~.n e:cp°nse.
d Ch T^~ ...ar}:ed wi ~., .-- -: r' ~'.s `) '''- -.._. specific items for ~.hich
a Pstes a-
a this
:
J a~,roval ror c~.._ __ ;ll -. ._, .-~es a:;1
s ei:s -
applicat.~'a > cc.~r~es to r.:-:ain ts:c h~-:ged.
'IOT ~ S
Individual service includes all classes of users except those defined
below as nontransient or transient commercial users and TV dealers.
2. Nontransient commercial ra±e=_ apply to mobile home parks, to~.•mhomes,
condominiums, apartments and other similar typos of dwelling units
which are served by a master system. To qualify for this rate category,
all the d~.velling units in the complex must be 100 percent subscribed,
and be under common ownership which receives one bill.
The Commercial Service Schedule in our current agreement (Resolution 7494)
is as follows:
,4partments (h?onthly ner Outl~*_)
?lumber of
~Ut1etS
2-5 X4.00
6-12 3.00
13-20 2.50
21-40 2.00
41-75 1.50
75-100 1.25
101-150 1.00
151-200 .75
3. Transient commercial rags apply only to hotels, motels and hospitals
which must be 100 percent subscribed for all units (rooms). Under our
present service schedul= (Resolution 7494) hotels, motels and hos-
pitals rates are negotiated between the cable TV company and the user
providing for a minimum charge per outlet of y3 and a maximum charge
of X7.50.
4. Abnormal installations are aerial installations in excess of 150 feet
and underground installations in excess of 50 feet.
I
II
III
Fi ~ ;_ n ~'~' nAn
.~~f~F li'.~ri ~.~.I1 f'\'l ft Ur' F l..)',\ ~. ,, .'U ~~1IIhi
AIISS['.?>: (~\o!,E, 16, I?:~.. I?; CHlJL.4 VISTA
5
1977
L? 1576 Fsriated
Allocation Com*~uta*_ion:
Plant Miles in Emit}' 149.0 178.0 193.0
Total Mission Plant `piles 1,347.0 1,971.0 2,095.0
0 of Total in Entity 8.1~ 9.0% 9.25
Rate Base Computation:
Intangible Property 7,244
724
1
836 9,077
2,290,161 11,119
2,721,344
Tangible Property ,
, 2,299,238 2,732,463
Total Property
1,843,968
Depreciation Rese n e 533,651 778,713 1,033,x82
Net Property 1,310,.117 1,520,525. 1,699,081
Materials and Supplies 23,088
263
69 39,132
104,346 50,182
121,273
tCorkin~ Casn Allo:cance ,
402
668
1 1
664,003 1,870,5
Depreciated Rate Base ,
, ,
Rate of Return Computation:
Total Cable Television Revenues
709,514
955,820
1,112,838
Operating Expenses (Before Int. F, Divd.) 392,779 611,604 723,011
Depreciation and Amortization 161,493
753
63 225,939
485
43 267,213
43,265
Federal and State Income Taxes , ,
Total Ex~ellses 618,025 881,028 1,033,489
Net Profit 91,489 74,792 79,349
Rate of P.eturn o 0
4.49a
4.24°s
EXI-IIBIT "B"
RATE BASE AND RATE OF RETURN COMPUTATION COMPARATIVE
STATEMENT FOR TEST YEAR 1977 USING PRESENT RATES
I
II
III
1977
Company Staff
Allocation Computation:
Plant miles in entity 193.0 193.0
Total Mission plant miles 2095.0 2095.0
0 of Total in entity 9.20 9.2%
Rate Base Computation:
Intangible Property 11,119 -
Tangible Property 2,721,344 2,721,344
Total Property 2,732,463 2,721,344
Depreciation Reserve 1,033,382 1,033,382
Net Property 1,699,081 1,687,962
Materials F, Supplies 50,182 --
Working Cash Allowance 121,273 83,964
Depreciated Rate Base 1,870;536 1,771,926
Rate of Return Computation:
Total Cable T.V. Revenues 1,112,838 1,112,838
Operating Expenses before
Interest $ Dividend 723,011 679,630
Depreciation 0, Amortization 267,213 267,213
Federal F, State Income Taxes 43,265 66,102
Total Expenses 1,033,489 1,012,945
Net Profit 79,349 99,893
Rate of Return Percentage 4.240 5.640
The following is a sumunary of staff adjustments made to Exhibit "B"
1977 using present rates:
1. Intangible property of $11,119 was eliminated by staff as not a normal item
to be included in the depreciated rate base total.
2. Materials and supplies were combined with working cash allowance and the
figure was reduced by $87,491 to $83,964 based on an allowance of 60 days
for operating expenses less amounts for average advance subscriber payments
and customer deposits held.
3. Qperating expenses were reduced by $43,381 based on normalized expenses and
using a 2 1/2o maximum allowance for advertising and marketing. Staff
noted that operating expenses in 1976 were 55~ over 1975 and in 1977 increased
840 over 1975.
4. Federal and State Income Taxes were recalculated due to the adjustments made
by staff.
EXHIBIT "C"
RATE BASE AND RATE OF RETURN COMPUTATION USING
PROPOSED NE4V RATES RECOMDYFrVDED BY STAFF
I. Allocation Computation: 1977 Estimated
Plant miles in Entity 193.0
Total h9ission plant miles 2095.0
of Total in Entity 9.20
II. Rate Base Computation:
Tangible Gross Property 2,721,344
Less:
Depreciation Reserve 1,033,382
Net Property 1,687,962
Working Cash Allowance,
including Materials $ Supplies 83,964
Depreciated Rate Base 1,771,926
III. Rate of Return Computation:
Total Cable Television Revenues 1,321,867
Operating Expenses 686,433
Depreciation F, Amortization 267,213
Federal F, State Income Taxes 170,273
Total Expenses 1,123,919
Net Profit 197,948
Rate of Return 11.17%
As indicated in this exhibit, using staff recommended rates, Mission Cable T.V., Inc.
should earn an 11.17a rate of return in Chula Vista. This compares favorably with
their computed cost of capital of 10.940 as reported by the City of San Diego.
In San Diego the projected rate of return is 11.320. This is based on rates similar
to what staff has recommended in Chula Vista. This is comparable with the earnings
experienced by the parent company, Cox Cable Communications, Inc. in recent years.
,,. Y
C1'IY OF CLJLA ~'ISTfl
RATE 1NCI:Li~~SE ,~PI'LIC.?:PIC\
P}.OFOIL~1~1 1977 I:LSULTS
EXHIBIT "D"
X6.50/$7.50 $8.00/$9.00 ~9.52/fi10.52
Rates Rates Rates
I. Rate Base Computation
Intangible Property 11,119 11,119 11,1].9
Tangible Property 2,721,344 2.721,344 2,721,344
Total Property 2,732,463 2,732,463 2,732,463
Depreciation Reserve 1,033,382 1,033,382 1,033,3S2
Net Property 1,699,081 1,699,081 1,699,081
Materials $ Supplies 50,182 50,182 50,132
Working Cash Allowance 121,273 121,273 121,273
Total Assets 1,870,536 1,870,536 1,870,536
Depreciated Rate Base 1,870,536 1,8 i0 ,535 1,870,556
II. Rate of Return Computation
Total Cable Television Revenues 12112,838 1,354,056 1,557,973
l?perating Expenses (Before Interest 73,011 730,248 736,365
$ Dividends)*
Depreciation $ Amortization 267,21s 267,213 267,213
Federal $ State Income Taxes 43,265 170,387 277,851
Total Expenses 1,033,489 1,167,848 1,781,429
Net Revenue 79,349 156,208 276,544
Rate Base (from above) 1,870,536 1,870,536 1,870,536
Rate of Return 4.20 9.90 14.7
*Operating Expenses do not include interest expense per rate of return theory.
,
rcc:rr,;
j'~': I775 Gf.(r
Ia i~ i~ ~~~ (',y ~~l ~ flv. II-4;n ~_;t 7:n A,11
i=F.U~{i;,L C,C';.!.,. Id„_~."I L..l~^ C.... ~S~Ui~ .
QEl,VC CC~IG~HC~I
%ftCl_E TGL[;'1Si0't /;flfiU!lL Flt:/:HCiAL EFFORT """-"
Fat F'criod 13c~inning JAnU3T}' 1 19 ~~ and En:?ing nECEIn)J L'T 31_ jq ~6
A strarac FCC Foam j? i tease be filed Ier r.:ch cable rr !e:is ioa system except ^:^ce ~,roup filings eetap?t vi:h
EL.- ei,aso!idation p:evis ir.^ scr fc::h in thc• (nilo.: ink ar Cra ph_ Each scpa:a cc :.,d dis[incc eemaunity n: muni-
eip_) cr.:ity (iaclu~,iiag ^nir,c o: poruca' z:ras and siag!e, cisuc[e t:ni.^.ec: pe:aeed arezs) scrve3 by ea::ie telcei-ion
{acilitics eo-sticc:cs a sci,.t;a(c cable trlcvisinr, system, ercn i( the-.e is a smgtc F.c~dcn:i anal idcn;ical ea•nrship
n.' facilities ex[cnding ir.:o sc•:cr_! eo-!-{::cities. P.n FCC I'o:n 32G sits!! be filed io: a eai;Ie [e?evision system T:•i[h
in ,0 2: ys of [he close o! is lases[ iisc-l ycu on an annezl basis. GII inforracion coats incd in chc Corm shall be
~rzttd as of ;h< Iasr day of chc fiscal year.
G'Stre eab!c teLvision systc^s, as defined above, arc (:nder common oc•ntrship and maragcd as -single ep;racing
c:,city a eensolida:ed Iota :goy Se hied in acec:~ar.ee c.•i:h chc falloxing c:i:eriz. A sink ie orentinr ea:ity inveives
ctiy these systc-a c•ithin a 40 -miic radius e! an omr.crdcsigaaud; etc: crce point c~F.ich i:cep a consoLda ted set
e5 Loo; ke epini; rec uds, and a;e ecchnnlo~ica!ly co^r.ccted either by private aicroc~z.ve o: b? eu!e. ?,ny ir.[c r.cion
Yo provide eonso!idzrcd da[a fo: s}•s:cros e::^.ich do r. o: t-..ec; chc above cri;cria tnusr reecice joie: Cor..assion
op?:oval. Tl:e Commission resures the tight ro eh;alcrgc zry consoGdzricns. •
'Jeraikd iarsections and account definitions zrc at:ztFcd co chic form.
6 (2GKOVECTNG OF 'fHE
Le.~~LS FROr.S Tr; t. cover, ?4ISSION CABLE TV, INC.
FHEET OF THIS FORS+.
AND r LAGC HERE -
P`IT' ;..9.3 ELS FtAVG NOT GLCN PROVIDED OR THE 1::F ORM ATI Otd 13 1NC0 RRCCT, INDl Cf. S'E THE
f'Ii~ i'L-'R INF OFi7.i .'i iON CL"LOl'i ........................................................................................
j DT~T[u Ca::E ,~ sJ ~T .+ COwv Vw~Y•
{ L- I I I 1 Jt ! ~_~_! L ! 1_I!__~!! LI ! I i I f ? t_ _ _
Li.:~L ,1 vl Gf CM 11YT Lbw if i4. O~".. rlwil`.G LUl TS'1111
t l i._LLL1J_L1LLL_1 ! ~ I_LLLU._I_.(_U_,L1J~_Ll_I_LU_
l(.C AL Twa'JL ,. .
1~1__I..L_i._l-i_~_1.1~L_i_J_J.11.1_U - ~ Ll-I---LLU~.L.L1__LL_t_L_LU_
., u:r.c an~LLr oowLa cw .~.. c t
~_L, I__I_._l_1J_! L_L1_LJ_J_! L I i l I_I_I_I_I :____
.~~IYi_`i~.~_l_Ll.~-_a-~_!._l_J__1__~Lr L~u~~ ill>,.i.l_~I
C I`:~1CCATE 7rIC tNTC~;17.1L f: Ct/CNU F_ SER Vt Ct2 e~rd F'L O`; ~?ft '. _ _
1^t'NY lL".1.1 f'.O. 3=(, 3t l~lif: I.OCi.I. CUSINC$ ~ ISf(-I'tTY {^ -- I-
hii!SCl'(_Y U7:!I; ~. PING 'I'l: (: L(.CAI_ il'S7t_rd. 1G ~ :1.,,_L~~_!__.'_.-~_.~
(J: ::H/\TOIi 1'l l•t. Y:}V[: i!{TI: R:O t--. M11f9A 1'i~. C': l.tJ.U A(O
I:..1. f. J., U.(. ..J4!,ll. :. LI. IJ l:I ~1• P!U... .
FoH Tltf,rls-V1 p.eo C~:<rcr.,^.r r or?
Zy
to
~i
2~ i
- 7q
- J I
[ --~.
t:~_ -
..5.
E Arr. t:r l!:rtt on lncn,l;c
2 Iic~ ul .r >;uirscn6ar :2pvcn::-
I-CC. I~w.e J5 SC11;: GL'LC i. CAf; 1. (: Yr .....__....-_ --_..__~_ _.._
_ "T___- .l. i. Vl SIGH til GUi-. ALD CYPCtti
,.. r- -~_._______._._ __~__
,..E ,.._. _...___~._.__--I Gidp VUT `_.-.'
t 0'~rT CLtTSI
G P Olhcr SuLsc:ihcr RcvFnar~, ~~- ~-
-_.__ fd0!:-SU3SCr"L'C::R ilr yc;:UES:
Pcr I'ro+ra- n; Pcr Chan acl lncoav
4 ~ (Pny Tclcvr:ioa) ---
S + Adccrli:.in~ Income-~---'-
I
IQ
(i ! Speeiaj Se rv ic. lnrronc --
7 Other t:on-SuSscriucr Rev:: m:~s
707l;L CPER.'.71t;G .4EVc1:U~
OPEf:~71;tG EY.F'Et;SES
SERVICE COSTS:
9 Salaries, antes ar.d Enplo~ee B^ne:its
~I~ Pole e ,d D;:ct I:cntnis
71 Privatc'v:icrowavc Scrcice (CSRS)
12 Cocrm-n C . r,
IS
lu
17
lE
I9
20
t3
.... aruc. ,,,tcroa•ace Scn•ICc
3` Total 7ari(i (Le:,s_bx;:) CF.argcs (o;, n!ics
recei vj r. r±telepho,-ie cc.-pa:, v_ chan~cl se:vi
All O; F.cr Sc:circ Ezpc•^sts
Solari cs, 4;ad~ ad [;r.ployce Be: c;its
ALL 0' iicP, 0?,(GINA710N EY,?Et;SES
SELLIic~,, GENcnl.. aNU eii-;;T;ij j (;,.11 t
Salt ties, N-arcs ar.d F_r..7lopee Bercli is
Frandiisc Fecs
ALL OTHER ScLL:::G, G=NcF;,:L ANp a.(
EXf'°VS=S
TOT.'.L O?FRAYING E ;PENS
----_-- -
TO"fAL OPERATING I:~CO!dE -~
DEYRECIATIO>; AND a'.{pi27f-rj
Amoltisatjon
O-SHEI; h:r_O:;E AF:D E:•.~'ct.;;t.S ----'
'O71lEk INC0:.4P:
7-o;al Other Intone
' Int:^:.•~(
.... ~.. r,an~~pps
_f0-~n~ O1-f1ER I_~c0 t~r (Oil LCS51
------- r, ,. Tr,.~C:
701':.l_ r_rnj-r.nl..ll~~, `.TA7fi It;CO~.:': 7A):ES ,.._-~-.._~_.
- 1_r
[U
S7
Cr,S
~_1J~o j 1
f izl,la(:
L 2 3 4 ~3
_(~~?,Isjs~sJ~l
-~1 G_i~~ ~ ~4~ 4; 3.
!"i (rl sL!1~c.~z
[_L' L.L_i_J_L
i CC (w.~i 7?6~`-__-LCHLGJLC :. CI.I_F,11C[ S!1t!'"f t!JFOr?6tA7iCr!
.~t~_..~._.,.._~. .._, ~_.,.. _._~._._,._
i 5 -- ____,_...__.
Lrt7 ASSN "i S:
Cash
C:hcr C:::rec: A.ss cts
Totnl C•_rcr.t Assets
f-1; EU l.SSc t S:
S Lend and 13vi:?inns
Firadc,-,d
I Trunk cr.d u(st:ib.5on Systrn
{ Su bse:ibcr Dcviees
~ Yrog:es Gi~ir.atien Dau~rrcr,t
C:nstn:etioa Plork in PreZ:css
O;l:cr Fix. Pscc;,
Pant Adjust:cent
Lcss: Ace.r..sl:.ted Dcp:ccic;ion
Acccr..ul¢tcd Anoai.nlion
Tate2 Fizcd Acsc;s
U'C ~tf: ,45ScT5:
Total Ot~cr Asscts
TOl'AL ASSETS
Lonns Pcyeb:~
Aceoun±s Pa, eb'.e
' Othcr Cu:rrat Li¢bilitics
To;zl Ccnent Liabi:iticc
DEF._RRF.D CFEDITS:
To:a1 DcCc:rcd Crccits
LCd:G l'[R',S DLuT:
Totes Load Tcm Dcbt
O'i;;~cR'S ECU(T1' -
TOT%.L STO'~K ISSUED
rro~ l,l~ro^•s Enurr,
OTIIf?F; O~~Vi'i2'S EQUITY ----~
--TOTAL Ol~;::F;'S CQtllT1' V~.. _
1 Y(~~1'AI_ LI~,!11LIT1' !Rf` O'~crlCi!:'S i-...JI7Y"
i;ln;cn i c r.tt:rnt:u o: n;_rr,,::a;. ~!o>; u:a:o..._~.
28
61.1 C%UNT (Cr.irT fcgT51
--1_L'_I_?. ~ 61?181oJ?
-1--1--X51-'_L? f_~~'-L
619 519 73
117101111171216
7j 31760
019 01613
715 3 7 2
01 71 51 11 4
8
5
1_ f (_i -o
~1 (1 ~3~7
41117
3
I_1 LL11~5 17 t6 II
_.l_1 s 1s1~! IzILI~R l6_.
_: `;-'act( i' 1.; i...!_-..__~
r ~--- ~-- -- _ . ~- -- --- -- -- -- ---- ----
- ~1 : ~. (cru zfl4 SLII;.:%7Lf. C, it tlii•hr Ct, i; it l!:v l l 1, I. I',IUlli L(I4:i'/.NI C11•a!b •
(7r, Lo fun.olo4J o:.l~ol„ C.'.I. , ~n „, Sr •' r, upc rallnc cnJ:. o Tat. p6onr.
•ry larllll• .l.acil
Unn„arr.I, nJ vale. Matti- Anwrl.
f. fn, [h~o, xl ORIGLIGL AU,C(t "(IZA 71 C:1 (Cell .: noa tenon rorron
No, Cl,o.p• Cc:. J) 7.,.n IC. r;..,i
(In Yner. U•: A.
Otnrr hen-Flrr~nnt~ f
d 7u7L.L (Ilnre I-J) _~ ! I I ~ I I ~' I I~-~
7/ U.e [hc folloc: U.g cock [0 ladica[c er,.ortlzx LLOn nctilcd uscd (Co: o:.ln r)
Coda No. 1.{¢liod
7 SUtl;;.z Llnc
7 Deeanlny Dulcnce
sun-ef G!•yeers dlelt¢ .
A Othtr
SCHECULE S. E)LPLOYMEN7
Indlee le the ncaber of cnplcytce (ot Lhe cre:~wocl In vn!ch
L`to Ix et Cay of C:< Flacai Yoe: fell. '
-- Hum6o• cf Er..p lc ycea
FULL'i!'dE
PL,F2T TILSE ( t t
CER71FiCl,T0;1
i?rln trport Wool be cc-lfird M• tl:e lr. dl vidu r! ewnin~ LSe :cpor; LnQ crole tcl cvi sloe cystcr., 1f indi-
tfduol!y caned; by a pari~e t, !(n ynrtncr_hi;.; by n : efficcr cf L'1 eeo:, aretir,.:, ((nee Yore ticn; or Sy
e mp: c-c:ac Uve holdL~y ,over c: cttom cy to echo o! phyalc¢1 d(aa bully of cn L^.di vldes( ormer er
kle a6 atree frog tl:e L'nllcd Ste loc. '
eerUry iLet 7 hr.ve tzrm la td L'ils rcpori, and flat cll etc icmento of fact con:¢Intd t}r trt In are tnr e,
eoe~;c!o, end correct to 6e. text of ny kno wled Qc, L-,fol7u Uon, and bells f, and ere node L~ Eood It!L1.
.~~' Assistant Secretary/Treasurer
St. John Martin, Jr. _ March 11, 1977
^ Pdn: rd nmre of pc+.on elQnlnd Pstr 9Enc1
EXHIBIT D
IVIISSi~I®1
6225 FEDERAL BOULEVARD
~Iw~w~L.~ ~V~ IIVC^
SAN DIEGO, CALIFORNIA 92114 (714) 2635728
October 14, 1977
Mayor Will T. Hyde
Members of the City Council
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 92010
Dear Mr. Hyde:
In light of the pending application of Missi
general rate increase, it was felt a timely
tain items concerning operations was needed.
update of the December 14, 1976 staff repor
your City Manager.
CENIl2AI.IZID CUSTObiQt SERVICE DEPARTiNEN'I'
i E ti'
~. ~ ~, ~-
'_ /~'
on Cable TV for a
update regarding cer-
The following is an
t submitted to you by
As reported to you in December, Mission Cable installed a new
communications system in its Customer Service Department. This
unit provided 16 full time service representative positions to
answer subscribers' calls. We have recently expanded to 22 posi-
tions to accommodate anticipated growth.
In March of this year we added our Repair Service Department to
this new communications system and expanded that facility to ten
positions. We continue to monitor our performance in this area
and will expand as needed.
REBUILD PROGRAM
In April of this year Mission Cable began the rebuild of its
existing 12 channel (grandfathered) system. This rebuild en-
compasses over 600 miles of system and will affect about 70,000
Mission subscribers.
service of Cox Cable Communications, Inc.
Mayor Will T. Hyde
October 14, 1977
Page Two
Our rebuild started in El Cajon which is the oldest cable plant
still operating. While this rebuild is not progressing as fast
as desired, we are still optimistic about completing this area
this year. Concurrent with this rebuild we are engineering the
entire Chula Vista area. Rebuild construction should begin in
the latter part of 1978 and continue until completion in late
1979. This will afford the residents of Chula Vista more than
20 channels of service with a greater variety of programming than
they are currently receiving. The newer, more sophisticated equip-
ment we are installing will also provide better quality pictures
and greater reliability.
EXPANSION OF SERVICE
As indicated in the December 14, 1976 report, Mission does in fact
plan to provide cable television service to Windsor Views. However,
timing on this service is dependent upon construction being com-
pleted from the "J" Street extension east toward Windsor Views. It
has been determined by our engineering and technical staffs that
this is the most expeditious way to get our services to this location.
On site inspection in September of 1977 reveals that grading is pro-
ceeding on the development west of VJindsor Views. This is the sub-
division lmown as E1 Rancho del Rey #S. Mission has signed agreements
to place its services into this subdivision. l4e have also placed the
necessary distribution conduits into Windsor Views. Upon completion
of E1 Rancho del Rey, Mission's Right-of-Way agent will secure an
easement across an existing power lead that is needed to extend ser-
vice to Windsor Views.
It appears that service will be available to Windsor Views in 1978.
As soon as E1 Rancho del Rey #5 is sufficiently complete, Mission
will extend its services through and into the Windsor Views subdivi-
sion.
PROGRAM ORIGINATION RELATIVE TO CHULA VISTA
Since the 1974 report Mission Cable has continued to be active in
the South Bay area with its remote production facilities and pro-
gramming produced within its E1 Cajon studios. The following
represents Mission's efforts to develop programs and cover events
of special interest to residents of Chula Vista and other South Bay
cmmmxnities over the past few years:
Mayor Will T. Hyde
Page Three
October 14, 1977
Conversation with Fred Lewis
208 half hour programs produced as a public service of Cable 2.
About 100 of the topics and guests are from South Bay Communities.
California Viewpoint
26 half hour programs produced by the California Cable Television
Association about California politics and affairs. Guests have
included Congressman Lionel Van Deerlin and State Senator Jim
Mills, etc.
League of California Cities Dinner
Color coverage of the monthly dinner meeting hosted by Chula Vista.
Chula Vista Political Foriun
No cost production and air time given to candidates for City Council
and Mayor in 1976 and 1977.
Jack Walsh Reports
135 half hour programs dealing generally with problems, people and
politics of South Bay Communities.
1977 State of the City Message
Remote from Chula Vista City Council Chambers
1976 Chula Vista Bicentennial Parade and Library Dedication
Color remote featuring two hours of parade coverage and new library
opening ceremonies.
San Diego Scene
26 half hour programs produced by San Diego State about activities
around San Diego County, including highlights from South Bay
Communities.
Newscene
25 half hour programs featuring news about local communities pro-
duced by San Diego City College.
30 Minutes
20 half hour programs about news and activities in San Diego County
communities, produced by San Diego State.
Mayor 1Vi11 T. Hyde
Page Four
October 14, 1977
Mission Cable currently anticipates it will continue its South Bay
programming involvement in the future at about the same level.
Sin er ly, ~
R. Bruce Ellis
Vice President/General Manager
RBE: lmm
MISSI~IV CASLE TV, 11lIC.
6225 FEDERAL BOULEVARD SAN DIEGO, CALIFORNIA 92114 1774) 2635728
October 19, 1977
Mayor iVill T. Hyde
Members of the City Council
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 92010
Dear Mr. Hyde:
The following is in support of our request regarding connection rates.
We feel we should be granted the rates we requested because: 1) Even
the rates we are requesting will not permit us to recover our costs;
2) The City of San Diego rates were a compromise to avoid a large
jimp to rates that staff recognized were cost justified; 3) This
would represent a regressive step in that the rates proposed by
staff are less than are authorized now.
The attached analysis regarding the cost of various installation work
supports our request for connection charges. It shows that at $20.00
we will not recover $3.66 every time we install service to a dwelling
unit that has not had it before. It also shows that we do not re-
cover $1.35 every time we install an additional outlet. Taking this
into consideration, the amount we will receive for reconnecting ser-
vice or relocating an outlet that is in excess of our actual costs
will not be offset - resulting in a deficit when all installation
work is considered.
The staff of the City of San Diego was cognizant that the rates they
recommended would not allow us to recover our costs. Their recom-
mendations were based upon what they considered to be a reasonable
interim step between where we were and where we should be. The rates
adopted by San Diego were also, coincidentally, those requested by
Southwestern Cable Television Company which also participated in the
citywide rate proceedings.
service of Cox Cable Communications, Inc.
Mayor i^Fill T. Hyde
Page Two
October 19, 1977
It should also be pointed out the requested rates have been adopted
by the City of Imperial Beach and the Cable Television Review Commi-
ssion of the County of San Diego. Therefore, your adoption of these
rates will not put our subscribers in Chula Vista in a unique position.
Given the above, we respectfully request that you grant us the con-
nection rates we have requested which are certainly justified.
Respectfully yours,
//n r =' / /
R. Bruce Ellis
Vice President/General Manager
RBE: lrrnn
Attachment
FULL DIRECT COST OF VARIOUS INSTALLATION WORK
Average Wages and Vehicles and
Hours to Benefits at Equipment at Admin. Material Total
Complete $5.70/Hour $1.92/Hour Cost Cost Cost
New Install 1.3 $7.41 $2.50 $1.25 $12.50 $23.66
Additional Qutlet .8 4.56 1.54 1.25 4.00 11.35
Relocate Outlet .8 4.56 1.54
34
1 1.25
1
25 1.25
25
3 8.60
9.83
Reconnection .7 3.99 . . .
Direct Labor
Total Wages Average 1Vage
per Hour Installers per Hour
$279.10 65 $4.29
Productive Hours per Year
Gross Hours
Less Nonproductive Time:
Vacations ~ g0
Sick Leave 4g
Holidays 64
Down Time 48
Breaks 115
Training ~ Administration 115
Total Nonproductive Time
Productive Hours per Year
Fringe Benefits
Vacations (80 X $4.29)
Sick Leave (48 X $4.29)
Holidays (64 X $4.29)
Uniforms ($9.10 X 12)
Payroll Taxes and Insurance
Total Fringe Benef
t 1618
e 1618
r 1618
e 1618
($4.29 X .15) X 2088
its per Hour
2088
470
1618
$ per Productive Hour
$ . 21
.13
.17
.07
e 1618 .83
$1.41
Vehicle Cost per Productive Hour
Annual Lease Cost $1126.20
Annual Operating Cost 839.76
Annual Repair Cost 281.16
$2447.12
Cperating Cost per Productive Vehicle Hour
Total Annual Productive Cost per
Cost Hours Hour
$2447.12 1618 $1.51
Equipment Cost per Operating Hour
Tool $ Equip.
Cost per Productive Cost per
Install Hours Hour
$666.b7
1618 $ .41
AdmirLi trative Cost per Order
Labor (1/4 hour per order) $3.s0 X .ZS =
Fringe Benefits @ 25a
Data Processing
$ .88
.22
.15
$1.25
Monthly Service Charges
Individual Service
Primary Service
12 Channel System
20 Channel Systcm
Additional Outlet(s)
Commercial Service
Nontransient 2
12 Channel System
20 Channel System
Additional Outlets
Transient 3
TV Dealers
Installation Charges
Revised request 8-Q-77 EXHIBIT ~
Present Proposed .,,
~r~ ; ~ . .
$6.50 $7.75
$7.50 $8.75
(Including FM) $1.75 each $1.75 each
See Attached
See Attached
$1.75
$3.00-$7.50 per Outlet
A'ot Covered
Initial Installation (Aerial)
Underground Installation (50 Feet or Less)
Reconnect (Includes Prewired Units)
Converter Only Installation
Additional Outlet (Includes Fd Outlets)
Move or Modify Outlet
Commercial Installations
Constriction Charges
Abnormal Installations 4
Install Prewiring
Extend Distribution Lines
Special Charges
Converter Deposit
Delinquent Account Collection at Door
Surcharges
Federal, State and/or City Fees or Taxes
on Subscribers, Service or Gross Receipts
(exclusive of income or property taxes and
franchise fees).
$19.75
$30.25
$ 9.25
Not Covered
$ 9.25 each
$ 9.25 each
Actual Cost
Not Covered
Not Covered
Not Covered
$15.00
Not Covered
Prorate of
Actual
$4.65 per Outlet
$5.25 per Outlet
$1.05
$3.00 per Outlet
$10.00
$20.00
Cost Plus 15%
$10.00
$10.00
$10.00 each
$10.00 each
Cost Plus lSo
Cost Plus lSa
Cost Plus 15~
Cost Phis 150
$15.00
$ 5.00
Prorate of
Actual
Public Broadcasting and/or Copyright Fees Prorate of Prorate of
Actual Actual
_,
notes
1. Individual service includes all classes of users except those defined below
as nontransient or transient commercial users and TV dealers.
2. Nontransient commercial rates apply to mobile home parks, townhomes, condo-
minituns, apartments and other similar t~~pes of dwelling units which are
served by a master system. To qualify for this rate eate~ory, all the
dwelling units in the complex must be 100 percent subscribed, and be tinder
common ownership which receives one bill.
3. Transient cormrercial rates apply only to hotels, motels and hospitals
which must be 100 percent subscribed for all units (rooms).
4. Abnormal installations are aerial installations in excess of 150 feet and
underground installations in excess of SO feet.
EXHIBIT C
August 10, 1977
T0: Lane F. Cole, City Manager
VIA: E. R. Asmus, Assistant City Manager
FROM G. K. Grant, Director of Finance
SUBJECT: Report on Mission Cable Television Rate Increase
BACKGROUND
On May 3, 1977, Mission Cable T. V., Inc. filed with the City Council an applica-
tion to increase rates and charges far cable television service in Chula Vista.
At the Council meeting of May 3, 1977, Council referred the request to staff and
appointed Councilman Egdahl to join staff in the study and report. The current
rates in effect were granted by the City Council on October 29, 1974 by Resolu-
tion No. 7494.
PURPOSE
The purpose of this report is to provide the City Manager and City Council with
information pertaining to the request of Mission Cable T.V., Inc. and to discuss
possible alternative proposals and recommendations.
REQUESTED RATES
The present maximum monthly rates for 12 channel and 20 channel service are $6.50 and
$7.50 respectively. The one dollar differential was established to encourage the
upgrading of 12 channel systems.
Mission Cable originally filed an application requesting authorization for monthly
rates of $9.52 and $10.52, or increases of 46.5% and 40.3% respectively. On
August 9, 1977 they submitted a revised rate increase request reducing the rate to
$7.75 and $8.75. This was done according to Mission Cable T.V. officials to
equalize rates approved in San Diego by the Land Use & Transportation Committee.
The company has not requested an increase in the additional outlet rate which is
currently $1.75 per month. Schedule I summarizes our present and company-proposed
rates for all currently established service and installation charges. The company
has also proposed establishing some new service categories not now included in our
presently approved service categories. Staff recommendations concerning these items
are also included in Schedule I_of this report.
-2-
SUMMARY 'OF 'RECOMMENDATIONS
Based on information obtained from the report of the Rate Analyst in San Diego
and the analysis presented in this report reflecting operations in Chula Vista,
staff is recommending that maximum allowable rates be increased by $1.25 per
month to $7.75 for 12 channel service and $8.75 for 20 channel service. These
figures represent increases of 19.2% and 16.7% respectively. Furthermore, staff
is recommending that in all categories of service, installation, construction
and special charges, that our rates in Chula Vista be uniform with the City of
San Diego. Most of the cities in our area, including El Cajon, La Mesa and
Imperial Beach, will be recommending uniform rates equal to the City of San Diego.
GKG:mab
Attachments
~~
Office of
JENN[F, M. FULAS7., CITY CLERK
December 9, 1977
T0: Honorable Mayor and City Council
City o~ (',fnuQa ~Uista
CALIFORNI9
FROM: City Clerk
SUBJECT: Rate increases and capital improvement plans - Mission
Cable TV, Inc.
Attached is a letter from Mission Cable TV, Inc. outlining their
capital improvement plans for the next three years. This was submitted
in response to a motion adopted by the Council at the meeting of
October 25, 1977 requesting that a report on the capital improvement
programs in the Chula Vista service area be included as apart of
the rate agreement.
The original letter has been attached to Resolution No. 8855 - APPROVING
RATE INCREASES FOR MISSION CABLE TV, INC., adopted on October 25, 1977.
JENNIE M. FULASZ, CMC
Cit~j Clerk
jd
eputy City Clerk
cc: City Manager
Finance
FOR C;LJL:: CIL l.':FORPIA TIOtV ONLY
I~-i3-~~