HomeMy WebLinkAboutAGENDA REPORT 1991 0320 CC REG ITEM 11APAUL W. LAWRASON JR.
Mayor
BERNARDO M. PEREZ
Mayor 'ro Tem
SCOTT MONTGOMERY
Councimember
JOHN E_ WOZNIAK
Courci - ember
LILLIAN KELLERMAN
Citm Clerk
TO:
FROM:
DATE:
SUBJECT:
MOORPARK
M E M O R A N D U M
HONORABLE CITY COUNCIL
RICHARD HARE, DEPUTY CITY MANAG R
MARCH 15, 1991
MOUNTAIN MEADOWS CABLE
BACKGROUND
EM '
STEVEN KUENY
City Manager
CHERYL J.KANE
City Attomey
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
JOHN F. KNIPE
City Engineer
JOHN V. GILLESPIE
Chief of Police
RICHARD T. HARE
City Treasurer
'/OORPARK. CAUFORNW
afy cotta Meeting
of 199-[
ACTION:5,&A4,-r7-1e
The residents in the Mountain Meadows area served by the community
antenna television system known as Mountain Meadows Cable
Television received a letter from Entertainment Express Limited,
the operator of the system, which requirps them to identify the
number of outlets in their homes which they wish to keep active.
Entertainment Express plans to impose a per outlet service charge
c° $3.60 per month for each additional active outlet. It is their
intent to impose the new service charges April 1st and to
disconnect the inactive outlets. Entertainment Express can
disconnect the service to each outlet from the outside connection
box on the residence.
Complaints have been received from residents and from the
homeowners associations. The homes were constructed with multiple
cutlets and at the time of purchase and occupancy many residents
added outlets to their homes at their own expense. They view this
charge as a charge for something that they have already paid for.
C :hers are irritated by the abrupt and threatening nature of the
aztion by Entertainment Express and the lack of reasonable notice.
in most cases, the residents had only a few days to make up their
=finds about services or to look into the matter. The letter
received by the residents was dated March 1st. It was postmarked
March 5th and it demanded an answer by March 15th. In the event a
resident doesn't comply with the demand to fill out a card
indicating the number of TV sets in the home, the company will
disconnect all additional outlets and then charge a reconnect fee
cf $44.95.
1
799 Mocr )a k Avenue Moorpark, Califomia 93021 (805) 529 -6864
f >.
The accessibility of Entertainment Express has also been
criticized. Their phone number is not listed in the local
telephone directory and the company is not listed with San
Francisco telephone information. Additionally, they only have one
representative available at the local number to handle the
inquires.. The representative is not able to answer questions
regarding the new service charges.
Urban West Communities CC &Rs prohibit the use of antennas or
satellite dishes. These restrictions limit the homeowner to one
source for television service. This creates a situation where the
cable system is not subject to effective competition.
FRANCHISE AGREEMENT
Many of the residents have inquired about the City's franchise
agreement with the cable operator Entertainment Express. The City
currently has a franchise agreement with Mountain Meadows Cable
Television, a limited partnership, which is an affiliate of UWC-
Moorpark Investors, Ltd. This fifteen year agreement was initiated
by resolution 84 -99, passed June 6, 1984. It terminates June 6,
1999.
Staff has reviewed the agreement to determine if the grantee has
remained in compliance. The agreement does address allowable
rates, however, the Cable Communications Policy Act of 1984 signed
by President Reagan into law on October 30, 1984 limits the
authority of the City of Moorpark to regulate rates.
A review of the franchise agreement indicates that Mountain Meadows
Cable Television and the subcontractor Entertainment Express may
not be in compliance with some of the franchise *requirements..
However, this does not alter the limitations imposed by federal law
vith7 regard to the regulation of rates. Staff feels the violations
are significant and require resolution as soon as possible.
RECOMMENDATION
Federal law limits the ability of local governments to regulate the
rates charged by cable operators. This is a serious shortcoming
::rich subjects residents to abuses which are intolerable. The City
Council has written Congress several times on this issue and has
joined with the League of California Cities and the National League
of Cities in seeking reform.
It is strongly recommended that the City Council authorize the
Mayor to once again express to our congressional delegation and the
Federal Communications Commission the need for redress of this flaw
in the Act, using the circumstances of this occurrence to
illustrate the plight of the resident subjected to an unregulated
monopoly.
Further, staff has contacted Marc Sklar, the manager of
Entertainment Express, and arranged a meeting on March 26th to
discuss their lack of compliance with elements of the current
franchise agreement, along with other matters. It is recommended
that the Budget and Finance Committee be directed to investigate
these violations and to work with staff to gain compliance from the
grantee.
3