HomeMy WebLinkAboutPH 2 CABLE RATE INC. 04-20-81DATE:
April 10, 1981
TO:
FROM:
S UBJ ECT:
HONORABLE MAYOR AND CITY COUNCIL
DAN BLANK~SHIP, CITY ADMINISTRATOR
PRELIMINARY HEARING ON PROPOSED RATE INCREASE BY CO~4UNITY CABLEVISION
A preliminary hearing on the proposed rate increase by Con]nunity Canlevision was
held by the City Administrator at 7:05 p.m. on wednesday, April 8, 1981 at Nelson
School, 14392 Browning Avenue, Tustin, California. This action was in accoraance
with Section 7421b of the Tustin City Code and Council's authorization at its
March 16, 1981 meeting.
The hearing was attended by approximately 14 people and lasted for an bout an~
forty minutes. Tom La Fourcade representing Community Cablevision presented the
company's proposal. Attached is the explanatory material previously provided Dy
Community Cablevision which was the basis of the company's presentation.
Following the presentation, the following citizens asked questions or submitted
Oddments:
Peer A. Swan, 14351 Morning glory
Cliff Cornell, 14282 Raintree
Robert Sibley, 2152 Maple court
Margaret Thon~son, 2251 Barberry Road, (Pres. Laurelwood Homeowners)
Ron White, 14431Raintree
Brenda P-za~ail, 2171 Snow~e_~_~ry
David Miller, 2312 D~hlia 2~ive
Simon Naoufai, 2192
A numker cf ccnce-~p.~ ze_~_ voiced about the size of the percentage increase ana
probier~ L%e Laurei~ccd ~_=ociation would have due to any annual nine percent
maxim~... ~ncrease limit to which they were subject. However, at the conclusion o~
the Pmarinw, I asked ~e audience if anyone had any information that could
indicate Une proposed rate increase was excessive. No one ha~ any such
infornmtion and basically agreed that the rate increase appearea to De
reasonable. I asked the audience if the real problem was the difficulty ~%e
Association ~ould have in LaurelwooO raising its fees to cover the increase on the
12 channel service. They agreed that was the_ case. I then asked the company if
their primary objective was to get authorization of their new 26 channel service
rate. They responded that was correct. I aske~ the company and the audienc9 if a
two step process would ~nswer their various concerns: first, Council approval of
the new 26 channel service rate on April 20th, and; second, Council consideration
of the 12 channel service rate increase within 90 days to permit the Association
to get legal help in order to determine their alternatives. Everyone agreed t~]at
such a two step process appeared to be a goo~ solution to their separate
interests. I therefore notifie~ the audience I would recommend such a process at
the April 20, 1981, 7:30 p.m. Council hearing. The hearing was then aO]ourneo.
e
Council announce the recommendation of the City ~dministrator as a result
the preliminary hearing.
Council open the public hearing and ask for any testimony in favor of or
against the reconmlendation.
If there is no substantive testimony in opposition to the recol,~er~ation,
close the hearing ar~ adopt the reoommendation arm findings of the City
Administrator.
4. If there is substantive testir~ony in opposition to the recomnendation, close
or continue the hearing ar~ decide om the action to ~e taken.
Recon~nendation and Findings of the City Administrator as a result of the
preliminary hearing.
The proposed 12 channel service rate and the proposed 26 charnel service rate
appear to be reasonable and are already in effect in Newport Beadu and Irvine
cities.
e
Conmlunity Cablevision is proposing a greatly improve~ service which is
desirable and should be made available for their applicable service area.
The Laurelwood Association has a procedural and fmonetaz!; problem on adapting
to the proposed 12 channel service rate increase, and shoul~ be given a
peric~ of time to study and select an alternative in cooperation with the
C~r~unity Cablevision Co.~pany.
There are other tecb~uical matters present om the question of the eligioility
of C~L~uniuy Cablevisicc to claim application of Government Co~e Section
53C~6.~. which exempts Luem from City regulation of rates, however the Company
h~ not chose~ ~ claLu~ e×e~tion an~ therefore the question is moot.
iu is thereCore recc~enced that Community Cablevision's requeste~ rate
~ne new 26 cn~unei se~cice De approve~ and authorize~; and tha~ Co,unity
CaD!evision's re~.'nest for the 12 channel service rate increase be continued
for a period of ti~ not to exceed 90 days in order Cot the Laurelwfx~
Association ~nd Conraunity Cablevision to explore the alternatives available
to see if a mdtually ~zatisfactory solution can be found. During that
period, it is further reco~mende~ that the propose~ 12 channel service rate
increase be granted unless a mutually satisfactory alternative of a
reasonable nature is recon~nended by the Laurelwood Association an~ Core, unity
Cablevis ion.
ReSpectfully submitted,
City A~ministrator
RESOLUTION NO. 81-48
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUSTIN, CALIFORNIA, PERTAINIDG
TO A SUBSCRIBER RATE IMCREASE BY CO~tMU~ITY
CABLEVISION COMPANY.
WHEREAS, Community Cablevision Company applied to
the City Administrator for rate increases pursuant to Tustin
City Code Section 742ib;
WHEREAS, the City Administrator conducted a pre-
liminary hearing into the matter on April 8, 1981;
WHEREAS, the City Administrator prepared a report
of the hearing containing his findings and his recommendations
concerning the application of Community Cablevision Company; and
WHEREAS, the City Council of the City of Tustin,
California, determines that good cause exists to adopt the
opinion and recommendation of the City Administrator.
NOW, THEREFOP~, the City Council of the City of
?ustin, California, resolves to adopt the recommendations of
the City Administrator pertaining to the application of Com-
munity Cablevision Company, as follows:
!. The City Council approves the construction of
a CA~3 ?'~em ~rcvidinc 26-channel service and that the follow-
in~ rates ~e effective for said service commencing on April 20,
1981:
a. Installation Charge $34.95
(plus an annual equip-
ment fee of $25.00 for
each home terminal in-
stalled)
b. Subscriber Rate
10.95/mo.
c. Additional Outlets
5.00/mo.
(each)
2. The City Council shall consider in ninety (90)
days a rate increase for those subscribers electing to maintain
12-channel service as follows:
1
3
4
5
6
?
8
9
10
11
12
13
15
16
17
18
19
2O
21
22,
23,
24 ~i
25
26
27
28
29
3O
31
32
a. Installation Charge
b. Subscriber Fee
(i) Association Rate
(ii) Single Rate
c. Additional Outlets
$10.00
6.70/mo.
8.00/mo.
2.00/mo. (each)
PASSED AND ADOPTED by the City Council of the City of
Tustin, California, this day of , 1981.
ATTEST:
James B. Sharp, Mayor
Mary E. Wynn, City Clerk
RLL:lw:D:4/13/81
-2-
DATE:
April 8, 1981
n er-Com
TO: DAN BLANKENSHIP, CITY ADMINISTP~ATOR
FROM: J~iES G. ROUP~KE, CITY ATTORNEY
ROBERT L. LAVOIE, DEPUTY CITY ATTORNEY
SUBJ[CICITY REGULATION OF RATE STRUCTURES OF CATV FRANCHISEES --
COMe, UNITY CABLEVISION APPLICATION FOR RATE INCREASE
The authority of a city in the State of California to
award cable television franchises and to charge a franchise fee
from the franchisee is set out in Government Code Sections 53066
and 53066.1. Government Code Section 53066 provides generally
that a city may authorize by franchise the construction of a com-
munity antenna television system and may prescribe such rules and
regulations as it deems advisable to protect the individual sub-
scribers to the services of the CATV system. The award of a
franchise may be made on the basis of quality of service, rates
to the subscriber, income to the city, experience and financial
responsibility of the franchisee plus any other considerations
that will safeguard the local public interest. The City's authority
to regulate the subscriber fees charged by a CATV franchisee is
limited in certain circu3nstances by Government Code Section 53066.1.
Government Code Section 53066.1 limits the city's control
of subscriber rates when the CATV franchisee falls within the
provis±~ns of subparagraphs (a) and (b) thereof. Government Code
Secticn ~3066.1(a) ~rc~ides generally that any CATV system which:
twenty or more channels to subscribers;
.- ives or has contracted to receive television
(2) rede
sirnals by satellite earth receiving station;
(3) has a subscriber penetration ratio of less than
70% certified by the CATV system;
(4) is located in a county which has available three
significantly reviewed television stations; and
(5) is providing or has agreed promptly to provide a
co--unity services channel program,
shall upon election of the CATV system and upon the filing of a
declaration to that effect with the city, be exempt from regulation
or control by a city as to rates, charges and rate structures,
except for the first year following the date of delivery of service
pursuant to the initial grant of the franchise.
In the case of Community Cablevision, it provides only
12 channels to CATV service, and has a subscriber ratio of more
than 70% (i.e., 677 out of 877 residences or 77.19%) and is there-
fore not exempted by Government Code Section 53066.1(a) from City
regulation of subscriber rates.
Government Code Section 53066.1(b) provides generally
that any CATV system which:
(1) meets the requirements of all of (a) above except
for the requirement of paragraph (3) of having a subscriber
penetration ratio of less than 70%, or
(2) provides between 12 and 20 channels of television
service in a franchise area with fewer than 3,500 subscribers
in a community of less than 20,000 in population, and other-
wise meets the requirements of Government Code Section 53066.1
subparagraphs (a) (4) and (a) (5),
may upon election by the CATV system and declaration filed with the
city, adjust its rates by an amount not to exceed 75% of the per-
centage increase in the consumer price index for the period since
the date of last previous increase, or December 31, 1975, if there
have been no increases since that date. The system may make a
rate adjustment under the precedin~ sentence only for the period
occurring within three years from the date a system would be
entitled to make an adjustment.
This portion of Government Code S 53066.1(b) is not applic-
able to Conm~unity Cab!evision (although a later portion of ~ 53066.1(b)
may be ax discussed below), in that it provides for systems providing
between 12 and 20 channels of services. Community Cablevision pro-
vides ~2 channels of service~ this is outside the scope of "between
12 and 20 channels". This is made clear by the last part of
Government Cc~e ~ ~2~6~I(b) .
The remaln~er of Government Code ~ 53066.1(b) provides
that a cable television system which prior to January 1, 1980, had
12 or fewer channels and subsequently rebuilds its system to 20 or
more ckannels, may raise its rates to a level, within three years of
completion of the rebuild, not to exceed the state-wide average rate
for those cable television systems having 20 or more channels. This
last sentence provides for CATV systems providing "12 or fewer
channels" and which increase to "20 or more channels" of service.
If Community Cablevision remains at 12 channels of service then
its subscriber rates may ~e fully regulated by the City. Should
Community Cablevision increase its service to provide 20 or more
channels of service then it may increase its rates to a level, within
three years of completion of the improvement, not to exceed the state-
wide average for systems providing more than 20 channels of service.
-2-
Community Cablevision is contemplating an increase to 26 available
channels. If and when such an increase in service is completed
the last sentence of paragraph (b) of Government Code ~ 53066.1
shall become applicable allowing Community Cablevision a rate
increase to the average state-wide rate for systems having 20 or
more channels. This office contacted the California Public Broad-
casting Commission to determine the state-wide average subscriber
rate. We were informed that no such statistic has been compiled
to date.
In conclusion, it is our opinion that Community Cable-
vision does not come within the provisions of Government Code
~ 53066.1 and that the City of Tustin may properly regulate its
subscriber rates.
RLL:lw:D:4/8/81 -3-
Ch. 1086 STA 'CXZS OV 97,
COMMUNITY ANTENNA TELEVISION-~SUBSCRIBER RATES
CHAPTER 1086
ASSEMBLY BILL NO. 699
An 'act to add Section 53066.1 t~ the Governmen! Code, relating to community an-
tenaa television.
LEGISLATIVE COUNSEL'S DIGEST
Under existing law, the governing body of a city or county or
city and county may authorize by franchise or license the con-
strnction of a eommnnity antenna television system. The law
presently imposes mnximnnl limitatioas on the a~nounts of f~ for
the granting of such a franchise or lit~nse and permits the award
of a franchise to ~ made on the b~sis of. among other things, the
rates to the subseri~r,'
This bill would, upon request of thc franchise or licens~,
modify local regulation by the franchisor, m~der specified condi-
tions, of the rates, charges, a~ rate structures of a franchis~ or
]icens~ if such franchisee or licensee provides a community anten-
na television system, as defined, which provides a commmfity serv-
ice channel program, as specified. -
It would permit the franchisor to act tis a public trustee of
sach community service channel or channels, ns specified. It
would exempt a frauchisce or licensee from liability for nets aris-
ing frolll tile nsc of thc camm~mity service ehanuel by others.
It wollld prcscrlhe . cc, mf, laint system with respect to such a
franchisce's or licensee's scr~ces and provide for the levying of
certain penalties for failure to remedy a complaint, as specified.
The bill would cease ~o be ,q,erativc on Jam~ary I 1~4,
cwpt a pr.vision we,fid reqv:ti:~ in effect bcyoml that date requiring
that r;lIes II~ca ~n t.ffect shall n,}t l~c suhject to reduction by h,cal
F~q~d!y, thc bill wuuld rt.,i ;ire the California Public Broad-
C.l;r~'~ C'..ql lIiiSS[&l tO make a -i,ccifi~(l report by April 15. 19S2,
rk:&:.k::g :he effect of the bill. and wouhl impose specified filing
2'he .~.egb~'e 6! ;Jxc Stale o! Califoraia do enact ~
SECTION 1. Section 53006.1is added rathe Guvermnent Code, torend;
5506&1.
m; Notwithstanding the provi~ions of Section 53~6, any cable television system
;; hich:
(1) Provides 20 or more channels to the cahle television suhscril~r,
(2) Receives or h~s contracted to receive tc]eviqina s]g~mls hy satellite earth ~-
~iving station,
(3/ Has a subscriber penetration ratio of less than 70 percent certified hy the
Ide television system, snhjcct to review by the franchisor or ll~nsor,
(4) Is located in a~(mnty or portion of :~ cmmty which has available thrr~ signif-
icantly viewed tek vision stations, as defined by the Federal Communications Com-
mission, or two signif~c;~ntly viewed t(4exision stations and an educational televi-
sion station, and
sTs- 0s0 g CUL.Xn SESSION Ch. 1086
(5) Is providing or-has ago'ced promptly to provide a conmmnity servico~ channel
program as defined in subdivision (dL
shall, ripen election by tbe cable television system and upon fl~c filing of a declara-
tion to that effect with thc francblsor, bc excmp~ from regulation or control by a
tures, except for the first year following the da~e of delivery of service pnrsuan~ to
the initial grant of a franchise.
~) Notwithstanding the prov)sions of Section 53066, any cable television system
which:
(1) Otherwise ~n~ets the requirements of sabdivision (a) except for the r~
quirement of paragraph (3) of sal~ivision (a), or
(2) Provides ~tw~n 12 and 20 channels of television servl~ in a franchise
area with fewer than 3,5~ snhscrihers in a community of less than 20,~ in
population, and otherwise meets the reqnirements of paragraphs (4) and (5) of
subdivision (a), · .
may, upon election by the cable television system and declaration fil~ with the
franchtsor, adjust its rate by an amoant not to exc~d 75 percent of the percentage
' increase in the Consumer Price Index for the period since the date of the last pr~
vlou$ rate increase, or December 31, 1975, if there have been no increases since De-
cetnber 31. 1975. A system may make a rate adjustment nnder the preceding sen-
' tence only for the peri~ occurring within three years from the date a system
would be entitled nnder such scnten~ to make an adjustment. A cable television
system which, prior to Jammry 1, 19~, had 12 or fewer channels, and snbsequently
rebuilds its system to 20 or more channels, may raise its rates to a level, within
for those cat,lc television systems having 20 or m,.,re channels.
(c)(l) Prior to April 15, 19S2. the Calif,,mia Public Broadcasting Cummls~ion
telccomntunic;t~b,;~s p.,Ik.y of the state of the rate adjustments by cable television
ins its rates p~:rstlau; to this section shall file witb tbc C:difornia Public Broad-
scribers and ~er,-ic-s y~y~v~ded. After thc required filing on Sel,~cmber 15, 19S1, all
state on t1:a~ d,~te for the class of service provided. . .
(d) A cable television system shall be dec,ned to be offering a conmmnitv servi~
¢kannel program if the system does all of the following:
41 VA) Provides for those systmns which furnish between 12 and 20 channels, one
functional equivalent of a single ¢omnmnity service channel; or (B) provides for
those s.vst.m~ winch furnmp ,no,] ?]pS~,~chan,;e1 is in use anring S0 ;~cent o~.
ed channel, a -econd such cna,kne~,nt;~[~e'~luring 'my ednsecutive 13-bour period for
deletions ny a ~ , t' it; ':~ "':"~'*'
.
Ch. 1086 STATUTES OF 1979
(2) Participates In a statewide cooperative program, ~dmini~tered by .an associa-
tion of cable uperators, with the advice of potential risers, that: (A) provid~ In-
struction and training for individuals, groups, entities and agencies interested in
Jug communlt3' scrrl('cs channels, (B) fnrnishes guidelines Ior the use and allocation
an independent board of directors, including representatives of local nongo~'ernmen-
ta] user groups and Imhlie agencies. Soch foundation shah have grant-making
thority to nse~ and shall have, as its primary purpose, thc pronmtion and encour-
agement of uso of community servicm channels.
(3) Provides fifty cents ($0.~) per subscriber per year to tho foundatlon'¢skab-
lished pursuant to paragraph (2) of subdivlsion Id).
(4) Provides to Iodividuals, groups, and entitles using commnnity service
technical advice by l~al program staff and reasonable access to local studio facili-
ties. if such facilities and staff are part of the local system. ' '
(5) Cooperates with courses and programs in s~ondary schools, community eof
leges and elsewhere which furnish training In the uses iff cmnmunity servi~ chan-
(6) Has available for u~ without charge tape playback facilities for entran~
into the system. .
(7) Provides through display Information on comnnmity service channels, and by
other ineans, lnelmling written noti~ to subscribers, information to potential u~rs
of the Opportunity to bare access to community ~rvicc channels. ·
(8) Unless the franchisor elects to act as trustee for the community channel
channels, consults with the franchisor In establisbl ~g policies for tbe use of commu-
nity service channel or channels.
(9) Provides to governu~ent and educational agencies reasonable access to each
station facilities for the receipt of programming for thc community service channel.
(10) Regularly provides to thc foundation for community service channels and to
the i,ublic and pnblic agencies inforn~:'ttion containing tho name, address and tele-
phone numher of the system, the name of tho systtqn m;tm~ger, and the status and
~t:,~z:~tb,n Of the cor~lm~mity access c]lanlle]s.
(e) The fr~nt'hisee or licensee may utilize nny comm~Hlity serv ce c]~an~el which
gr~mm~g is ~ven s,:l~ednling priority.
~f~ TSe frTm~t~i~or may elect tu ac~ as public ~ru~tee or alq~Oiu~ a delegate, report-
~.~ t~ ~e f:'a:~chl~r. 1o act as l,~hllc tr~slee of the commmdty service channel,
~:~ ~he ~:anohis~ or licensee, or such delegate as is ~ppointed a trustee of
~.::~:~:.:ry secvice eham~els~ shall not be liable for acts arising from ~he B~
tr:~::~'h~see or l~censee shall establish regulations governing ~he use of such
nels which provide uniform and l~omliscriminatory stalldards, e~sure adequate o~
p.:,-:uni;y for participation by local nongovermncntal nsers and incorpnrate restri~
t~o~ on Ii~lous or slanderous or illegal programs.
(h) The Califcrnia l'ublic Broadcasting Commission, in cooperatioa with the CMi-
~ornla Arts Council, the Office of Appropriate Technology, the State Department of
Edt:Cation and the State Departmeut of Consumer Affairs, sad such other agencies
as requested by the commission, shall nndertake efforts to encourage state and l~al
shall prepare a report by January 1. 19~, tmlicatiug the uses that government and
~.hannels.
(i) The Regents of the University of California, if it so elects, the Trustees of the'
California Sta~, University and Colleges, the Board of Governors of the California
Community Colleges and the State Dcp~,~t,nent of Education shall negotiate with'.
4220. ' Changes or additions In text are Indicated by underline
:t.. {A) l,rovides in-
;~-x:~o :md allocation
· .~ grant-making au-
'. f,,undation es~ab-
. ,~:~] ~.rrice channels
:;, ,cai studio facill-
:.~].pity service chart-
,' :ies for entrance
~c~channels, and by
.-"~,blress and [ele-
or local g)vern-
)n with the Calf
" e Department of
.;2~0 state and local
· Trustees of the
,f the California
-!.:all negotiate with'_
~Ic--ded by underline
1979-1950 REGULAI~ SESSION Ch. 1086
.~entenee sh;tll retort to the Legislatnre on or before June ]5, 1981, concerning the
extent to which there has ~,en nsc of television, including salcllite interconnection,
to fulfill the mission of each agency and aetaal nsc of community service channel
~d other cable and broadcast facilities. Such report sbaI1 also indicate the pros-
peet for additional nses of'such interconnected facilities and shall make recommen-
dations for such ]egiMation as may be need~ to assure al)propriate 'use of such
chanaels. · ' (J) For purposes of this section, the following definition~ stroll ~pply:
(1) "Cable television system" means a community antenna television system serv-
(2) "Class of servia" ~eans a category as described in subdivision (a), or in
paragraphs (1) or (2) of subdivision (b).
.(3) "Consmner I'ri~ Index" means the consnmer pri(~ index puld~sbed at the end
of the month following the rate adjustment by the United States Burea~ of Labor
Statistics for the area in which the cable televisiou system is'located or the nearest
area for wbleh such index ~ published.
(4) "Satelll~ eartll receiving station" means any structure or device ntillzefl to
receh'e signals from a satellite.
(5) "Subscriber penetration ratio" means the mind,error snbscrihing reside~wes
vialed by the total number of residences having cable available. ·
(k) In addition to any other penalty provisions ia the franchise or ]icen~t if a
franchi,ee or licensee files a declaration pursmlut to sabdivisiou (a) or (b) the fran-
and if s,cb franchisee or licensce fails within a l'pagollllhlo ].q'iod f,,llowing receipt
a penal~y of lip to five buudred d,llars {$500) for any ,,,-cur,'cnce or se~-ies of relat-
; ..... 1 c,~e the penalt) shall not exco,d lwo l~m,h't.d dollars ($200). if the fran-
:zzy. :::e year, of tbe sanctions pro, idea in tbia section, a~] of the procedure for
,+,',:rblkin in writing to the franchisor of the frauchisce's failure to resolve a
cvmpla~nt which is preventable and rcasouably wRhin the francbisee's or liceus~'s
evntrol. ~e proper address of the franchisor or licensor to which compla}uts ma~
l.e directed shall he iucluded in such notice.
SEC. ~. If any provision of this act or the application thereof to any person or
circumstances Is held invalid, snch invalidity shall not affect other provisions or
applications of the act which can be ~iven effect without the invalid provision or
application, and to this end the prnvisions of this act nrc sev~ralde.
Approved Sept. 2L 1~7~. ' -
Filed Sept. 28. 3~2~. ..-
deletions by asterisks * * *
4221