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HomeMy WebLinkAbout1994 Resolution No. 046RESOLUTION NO . if SERIES OF 1994 A RESOLUTION AUTHORIZING RATE ORDER NO. 94-D BY THE GREATER METRO CABLE CONSORTIUM IN ORDER ro COMPLY WITH THE FEDERAL COMMUNICATIONS COMMISSION' RULES WHICH IS NEEDED FOR CABLE TELEVISION COMMUNICATIONS IN THE CITY OF ENGLEWOOD, COLORADO. WHEREAS, the City of Englewood, Colorado is a member of the Greater Metro Cable Co nsorth.1 m; and WHERl!:AS, the United States Congre11 provided authority for the regulation of cable television service rates in the Cable Television Consumer Protection and Competition Act of 1992, to be implemented by regulation of the Federal Communication• Commi1eion; and WHEREAS, the Federal Communications Commission issued a Report and Order and Notice of Further Rulemaking CF'CC 93-177), In The Matter of the Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992, MM Docket 92-266, regarding Rate Regulation on May 3, 1993, establishing procedure• by which certified local franchising authorities may regulate basic cable television service rates; and WHEREAS, in accordance with FCC rules and regulations, the Consortium initiated review of basic cable television service rates and auociated equipment and inat.allation charges by requesting cable operators operating in the listed Member jurisdictions, including Telecommunications, Inc. (TCI), to submit FCC Forms 393, within thirty days on November 15, 1993 ; and WHEREAS, the Greater Metro Cable Consortium provided TC! with "punch lists" detailing the defects in TCl's filings and requesting additional information on February 3, 1994, and met with TCI to review TCl's revised 1ubmiasion1 and to receive TCl'1 input with regard to the rate regulation process in Rate Order No. 94-D; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: ~-The City Council of the City of Englewood, Colorado hereby authorizes Rate Order No . 94-D by the Greater Metro Cable Consortium in order to comply with the Federal Communications Commission rules which is needed for cable television communications in the City of Englewood, Coloredo . ADOPTED AND APPROVED this 18th day of April, 1994 . ~~ ucrishiaA.El1is,CityClerk 1, Loucrishia A Ellis, City Clerk ro, )}le City of Englewoo , above is a true copy of Resolution No .:z;1;2, Series of 1994 Loucriahia A Ellis Date April 18, 1994 INITIATED BY STAFF SOURCE COUNCIL GOAL CO':JNOL COMMUNICATION Agenda Item lli Subject Cable TV Consortium Rate Order Department of Administrative Services, Wonnation Systems Peny Movick, Manager of Wormation Systems Is.SUE/ ACTION PROPOSED Staff seeks Council support for a resolution authorizing Rate Order No. 94-D by the Greater Metro Cable Consortium. PREVIOUS COUNCIL ACTION Passage of Ordinance No. 37, Series of 1992 -Authorizing costs incurred in Franchise negotiations. Passage of Ordinance No. 38, Series of 1992 -Authorizing entering into a intergovernmental agreement for Greater Metro Cable Consortium. BACKGROUND The GMCC Rate Regulatir,n Committee has completed its review of TCI of Colorado's rates in accordance ,-.ri th the FCC Rate Regulations and Procedures. The attached Order describes the Committee's findings. The GMCC was authorized through resolution to regulate rates on Englewood's behalf. The •purpose of this presentation is to have CoWlcil review the order and decide whether or not to direct the GMCC to make this Order on behalf of the City of Englewood . The deadline for the GMCC Order is April 28, 1994. Franchise Authorities, through the passage of the 1992 Cable Act and subsequent rulemakings by the Federal Communications Commission, have been given power to jointly regulate basic cable television service tiers and accompanying ::harges for equipment, maintenance, and installation. The following chronology summarizes the process the GMCC Rate Regulation Committee has followed to prepare the Rate Orders: Swnmer93: Sept. 1, 93: r October 93: Nov . l !i, 93 : Dec . 14, 1993: Nov-Fe b , 1994: March 94 : April 28, 94 : May 94: FCC issues a 500 page document detailing rate regulation. Effective date of rate regulation . Any refunds order by cities for excessive rates may be issued back to this date. GMCC Member City Coundls pass resolutions authorizing the GMCC to act as their agent for the purpose of rate regulation in accordance with the 1992 Cable Act and FCC Rules . The GMCC is certified by FCC to regulate rates. (Certification by ti-1 FCC is the first step required.) Date for submission of FCC Forms 393 by TCI/Mile-Hi passes. Rate forms are eventually submitted by TC! on December 29 , 1993 for Denver Metroplex, Douglas County, and Mile-Hi . Rate forms for former ATC TO cities are submitted later. GMCC Rate Re gulation Committee seeks public comment (comment forms distributed at public buildings and ads placed in November 28th issues of weekly t.v . guides for Rocky Mo'lliltain News and Denver Post.) GMCC meets with TCI to conside,: its input. GMCC reviews forms submitted by T□, all in atcordari.:e with FCC rules . Technical A deficiencies in the ·corms submitted by TO delay the process and W require resubmission. GMCC reviews finalized . Orders drafted . Rate Regulation review period expires. GMCC Rate Orders, if issued at all, must be issued by this date. Rate orders for Scripps Howard and former ATC cities are due slightly later. FCC has issued an additional 7% Rate Regulation Rollback Order which the cities need to proceed with, but which cannot be enacted until this First Order is completed. Due to the extremely complicated FCC Rate Order Procedures, the GMCC had to evaluate the current Mile-Hi /TC! of Colorado rates and changes into three Rate Order Groups . (Tl-.e Rate Order for Your Group is attached): Rate Order C : Rate Order D: Rate Order E: Douglas County, Castle Rock, and Parker. Adams County, Arvada, Aurora, Cherry Hills, Commerce City, Edgewater, Englewood , Golden, Lakewood, Sheridan, and Westminster. (Mile-Hi): Denver and Glendale The FCC regulations required the groupings based on the same number of channels and services offered, headend delivery system, and financial and corporate history of the operations. A brief comparison of the Basic Cable Service Programming Tier, Equipment, and Maintenance and Installation findings between the Rate Order Groups is as follows : Mainlmance & Rate Order G,oup Basic Cable Equipment Installation · Rat e Order r. Overcharged Under permitted level : Uncle.· permitted lev el: $.44/month : refu nd frozen• frozen • --- Rate Order D Overcharged Under permitted level : Under permitted level: $.54/month : refund frozen• froz~m• Rate Order E Meets permitted level: Under pP<1T1itted level : Over permitted level: No change frozen• reduced and refund • In accordance with FCC Regulations, cable operator rates and charges found to be under permitted levels were frozen as of September 1, 1993 . Therefore, the separate Orders reflect the intentions of the FCC to freize charges at current levels. GMCC Counsel has advised that rates under the FCC benchmarks can only be raised through a separate process that requires the cable operator to initiate requests for rate increases through future filings . PROS AND CONS OF omONS REVIEWED There are tour potential options a Council /Board might consider with respect to this Ordcr: 1. Reject GMCC's Order and, subsEcquently, choose to certify itself as a single entity and repeat the entire rate regulation process . 2. Reject the GMCC's Order and find the current rates acceptable, including rejecting any subscriber refund on overcharges . 3. Reject the GMCC's Order for subscriber refund, but accept the Order's findings to reduce rates, where appropriate . 4 . Authorize the GMCC, as the certified agen t, to proceed with the Order as submitted. srAFF ANALYSIS The Er,glewood City Council verbally directs the G:v::c, as its certified agent, to proceed with the Order as submitted on or before April 28, t994, in accordance to FCC Rate Regul ations and Procedures. -FINANCIAL IMPACT Baserl on the findings as reflected in the above tables and attached Order, financial impacts are as follo ws : Ordered refunds will talce place July 1, 1994 and go back to September 1, 1993, A plus interest at 6% annually. The July 1 deadline permits the cable company • time to prepare and meet the 30 day advance notice for changes in rates required by the FCC and proposed GMCC recommended custom.er service standards. Refunds will result in Franchise Fee refund for TO of Colorado/Mile-Hi on amount refunded . This will be credited against a future franchise fee payment made to the jurisdiction .