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HomeMy WebLinkAboutRPT 2 COMMUNICOM RATE 09-03-85A' G EN DA - WILLIAM HUSTON, CITY MANAGER TO:THRU: BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER FROM: SU BJ ECT: MONDA BUCKLEY, ADMINISTRATIVE ASSISTANT COMMUNICOM RATE INCREASE FOR BASIC SERVICES In April, 1985, the 1984 Cable Communication Policy Act was implemented. Section 623 of the Act allowed cable companies to increase rates for basic services up to five percent (5%) without approval of the franchising authority. On August 15, 1985, CommuniCom notified the City that their rates would increase by 5% on October 1, 1985 in accord with the provisions of the Act. (See attachments). With the letter of notification, CommuniCom also sent a rate schedule for all services. The rate schedule indicates a fee for basic service over the allowed 5%, i.e, $10.50 vs. $9.45. Staff contacted Perry Parks of CommuniCom who stated there was an error on the rate schedule and that he would forward a corrected schedule to the City. When receiving the rate schedule, there were two non-regulatory items that may cause concerns to the cable customers and that staff feels should be specifically brought to the attention of the Council. 1. Previously there was a $.50/month charge for the cable guide. October 1st the charge for the guide will be $2.00. Not only is this a 400% increase, but, according to Mr. Parks, the consumer has no choice as to whether or not they want the cable guide. 2. Effective October 1st there will be a $25.00 charge for "unnecessary service calls". Staff feels this charge is extremely subjective and has the potential for causing problems if CommuniCom does not exercise a great deal of discretion when applying the charge. Monda Buckley Administrative Assistant ~' MB:jr Attachments Ct,F'/ August 15, 1985 cabte..,a univer~ of choice, Mr. Bill Huston 300 Centennial Wy Tustin, Calif. 92680 Dear Mr. Hustom Pursuant to section C (i) of the Cable Communications Policy Act of 1988, we are hereby notifying you that effective October 1, 1985, CommuniCom will be increasing its rates by the allowed 596. Specifically, the service categories impacted are.' CURRENT RATE NE.I/RATE PERCENT CHANGE Basic Service $ 9.00 $ 9.85 .5% Installation $29.95 $ 31.85 5% As previously stated, the effective date of the rate increase will be October 1, 1985 and thirty days prior to the effective date CommuniCom subscribers will be notified by mail. For your information and to facilitate your communication with subscribers, I am enclosing our rate schedule which will be effective October, 1985. Thank you for your continued cooperation and support in the development of cable television in the County of Orange. If there are any questions regarding the proposed increase, please do not hesitate to contact me at (213) ~10-7360. PCP:nt 5731 8uckinghom Porkwoy, Culver Cih/, Colifornio 90231 · (213)4q0-7100 COMMUNICOM OF TUSTIN/ORANGE SERVICE RATES AND ONE TIME CHARGES MONTHLY SERVICE CHARGE Basic $10.50 Additional Outlet 5.00 Cable Guide 2.00 AFFECTIVE DATE 10/1/85 MONTHLY FEATURE SERVICE CHARGES Showtimc, HBO, Cinemax, Movie Channel Any one $11.50 Any two 20.00 Any three 27.00 All four 36.00 Disney 6.00 Rainbow 6.00 (Bravo & American Movie Classic) SERVICE RATES Standard Installation Additional Outlet at Install ! 0.00 Additional Outlet Install (Later) 19.95 A/B Switch Installed 17.50 A/B Switch Installed (Later) 29.95 Custom VCR Installation 75.00 Includes A/B Switch, Additional Converter, Splitter Relocate Outlet 19.95 Converter Depost (Per Converter) 25.00 Change of Service (Premium Channel) 10.00 Non-Standard~ Custom Installation, Includes Parts and Labor (Per Hour) 40.00 Reconnect Primary 1 ~.~)9 Restoral Charge (Non-Pay Cut Off) I0.00 Returned Check Charge 10.00 Unnecessary Service Call 29.00 August 9, 1985 Mr. Mike Groom Communi Corn 5731 Buckingham Parkway Culver City, California 90230 Mr. Bryan Ramsey, Construction Dept. Co~u¥~uniCom 5731 Buckingham Parkway Culver City, California 90230 Mr. Don Guthrie Com~uni Corn 189 Business Center Drive Corona, California 91720 Gentlemen: The matter of the inadequate CATV service being provided by CommuniCom within the City of Tustin, including, but not limited to, the poor quality of picture, no picture, poor response to complaints, misbillings, construction problems causing damage to City sidewalks and other property, exposure of the City to liability from persons who are injured by settlement of sidewalks, failure to build conduits and other facilities in accordance with approved plans, failure of CommuniCom to provide as-built plans to the City, and failure of CommuniCom to provide the City with evidence of easements for facilities has been .referred to this office for action. These various items and others have been the subject of numerous telephone advices to your personnel and numerous letters sent to you, but the problems remain uncorrected. We realize that CommuniCom may be having financial problems which are making it difficult for it to perform its franchise obligations fully and properly, but the City is at the end of the line in being able to go along with your deficiences of performance. If CommuniCom is not able to correct these many problems in a diligent manner and in a reasonable, i.e. very short, time the staff will be soon recommending to the City Council the institution of proceedings for the termination of your CATV franchise. 300 Centennial Way * Tustin, California 92680 * (714) 544-8890 Page 2 August 9, 1985 I request that you provide me with a response to this letter with full and complete detail about your perception of the situation and what you propose to do about it and when you propose to take your corrective measures. Your response and the performance which follows your response will be closely monitored and a determination then made on the staff recommendations to the City Council in this matter. Very truly yours, JGR:se:D:08/05/85(4) cc: M. Buckl~x~'~ R. Ledendecker W. Huston JAMES G. ROURKE City Attorney City of Tustin