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Home My WebLink AboutRPT 7 CABLE INCREASE 11-16-92REPORTS NO. 7 11-16-92 DM y 5 A%A N ----------- - .ATE: NOVEMBER 16, 1992 Inter -Com TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: CONTINENTAL CABLEVISION RATE INCREASE RECOMMENDATIONS: Receive and file. BACKGROUND: The attached letter from Continental Cablevision provides sixty (60) days written notification to the City regarding proposed changes in Continental's monthly rate structure. The rate increase will take effect on January 1, 1993 and is based on the increase in customer service operating costs and programming expenses. Rate increases are permitted by the Cable Act of 1984, which also precludes local agency rate regulation. However, on October 5, 1992, the Cable Television Protection and Competition Act (Act) was enacted by Congress. The intent of this new law is to assist local governments in protecting consumers from unfair rate increases and poor customer service practice by cable companies. The Act intends that the Federal Communications Commission (FCC) and cities will share the responsibility for implementation of its various provisions, including rate regulation. In regards to rate regulation, the Act specifies that regulations set by the FCC must ensure that rates for basic service are reasonable. These regulations must be designed by the FCC to protect subscribes of cable systems that are not subject to effective competition. The FCC must establish the regulations by April 5, 1993. Also attached is a copy of the letter being sent to Continental Cablevision customers outlining the specific rate changes. It should be noted that there will be no increase in installation charges or in the rates for premium channels (HBO, Cinemax, The Movie Channel, etc.) Robert S. Ledendecker Director of Public Works/ City Engineer BL:KP:ccg:rateinc Attachment 0 a Katie` -Pitcher Administrative Assistant II October 28, 1992 Ms. Katie Pitcher CATV Franchise Coordinator 15222 Del Amo Avenue Tustin, CA 92680 ID �9N'0dN �i nNOOT 3 0: TUSTIN PUBLIC Re: CATV County Ordinance - Rate Notification Dear Katie, Continental Cablevision Continental Cablevision_ hereby provides 60 days written notification to the City of Tustin for changes in its monthly rate structure. This notification is in compliance with the City of Tustin Ordinance Number 1002, Section 6, Rates. Enclosed are copies of the notifications which will be sent to our customers with their November bills. The two different versions are customized and will be sent to customers with specific rate codes and should aid in avoiding confusion or misunderstandings. This notification does comply with the timing requirements set forth in the City of Tustin Ordinance Number 1002. rhe monthly rates to take effect on January 1, 1993 are as follows: SERVICE CURRENT RATE JANUARY 1993 Basic Broadcast Service $ 2.00 $ 2.00 Standard Basic Service 20.95 22.95 Senior Basic Service 14.95 16.95 Extra Outlet (new customer) 6.50 6.50 Extra Outlet (Grandfathered) 3.50 3.50 Orange County Property Tax 2.00 2.00 (added to all accounts) There will be no increase of installation charges or premium channels such as HBO, Cinemax, The Movie Channel, or Disney. Sincerel Wi liam A. Petersen General Manager 7c: Paul Foye genlmgr/ratecity 644 B Street . Tustin, CA 92680 • Telephone (714) 731-0992 V A U-(- �-P� c ( z s' Continental Cablevision' November 1, 1992 Dear Continental Cablevision Customer, This has been a year full of improvements for Continental Cablevision in Tustin. We have placed considerable emphasis on providing the highest quality pictures and customer service. In meeting your needs and expectations, our customer service and operating expenses have increased in the past year. Insurance rates, energy costs and taxes have also risen dramatically. Therefore, in January 1993 we will raise our price by $ 2.00 per month on your Standard Service, from $20.95 to $22.95 per month. We are pleased to announce that the price of the premium channels (such as HBO, Shoe, Cinemax, The Movie Channel, The Disney Channel and SportsChannel) will not increase and will remain the lowest in Orange Count: Futhcrmore, there will be no price increase on your Basic Broadcast Service, Property Tax Surcharge or extra outlet charges. While we understand that no price increase is ever welcome, please be assured that we are committed to meeting your expectations. It is important to us that you receive quality reception on all channels. If you are having reception difficulties with one, or more, channels please let us know. We will do our best to be responsive to your needs. Sincerely, William A. Petersen General Manager 2S9-0SJE8sa 1002 Continental Cablevision November 1, 1992 Dear Continental Cablevision Customer, This has been a year full of improvements for Continental Cablevision in Tustin. We have placed considerable emphasis on providing the highest quality pictures and customer service. In meeting your needs and expectations, our customer service and operating expenses have increased in the past year. Insurance rates, energy costs and takes have also risen dramatically. Therefore, in January 1993 we will raise our price by $ 2.00 per month on your Senior Service, from $14.95 to $16.95 per month. We are pleased to announce that the price of the premium channels � (such as HBO, Showtime, Cinemax, The Movie Channel, The Disney Channel and SportsChannel) will not increase and will remain the lowest in Orange County. Futhermore, there will be no price increase i on your Basic Broadcast Service, property Tax Surcharge or extra � outlet charges, While we understand that no price increase is ever welcome, please be assured that we are committed to meeting your expectations. It is important to us that you receive quality reception on all channels. If you are having reception difficulties with one, or more, channels please let us know. We will do our best to be responsive to your i needs. Sincerely, William A. Petersen General Manager 269.05/FEW 1092