HomeMy WebLinkAboutAGENDA REPORT 1993 0602 CC REG ITEM 08L1
AGENDA REPORT
CITY OF MOORPARK
TO: The Honorable City Council
FROM: Richard Hare, Deputy City Manlgert'
DATE: May 25, 1993 (CC. Mtg. 6/2/931
ITEM 8__• �►.�'
"')OPPAW, CALIFORNIA
:- y Council Meefng
RE: Consider Certification of the City by the Federal
Communications Commission to Regulate Cable
Rates.
Background
The Cable Television Consumer Protection and Competition
Act, enacted in October 1992, changes the manner in which
cable television systems that are not subject to effective
competition are regulated. In general, basic cable service
rates and associated equipment will be subject to regulation
by local or state governments (franchising authorities).
Rates for cable programming service and associated equipment
will be subject to regulation by the Federal Communications
Commission (FCC) . Rates for pay channels will not be
regulated.
Only cable systems that are not subject to effective
competition may be regulated. In order to regulate basic
cable service rates, a franchising authority must be
certified by the FCC. The FCC has prepared a form which is
currently being reviewed by the Office of Management and
Budget (OMB). Upon approval of the certification form by
OMB, the City would have to submit the form to the FCC. The
earliest date at which the franchising authority can submit
the form would be June 21, 1993. The franchising
authority's certification will become effective 30 days
after submission, unless otherwise notified by that date.
The franchising authority cannot begin to regulate rates
until it has adopted the required regulations and until it
has notified the cable operator that it has been certified
and that it has adopted the required regulations. Staff
will present a resolution to the Council adopting the
required regulations on 6/16/93.
During the 30 day period between the submission of the
franchising authority certification form and the approval or
denial by the FCC, the cable operators would have an
opportunity to prove to the FCC that effective competition
does exist in their service area. In the event effective
competition exists, the city would be prohibited from
regulating basic cable rates.
Honorable City Council
May 25, 1993
Page 2
If the City is allowed to regulate basic cable rates, the
recent April 1, 1993, increase by Ventura County Cablevision
(VCC) would be reviewed and compared to a benchmark pricing
formula being provided by the FCC. The review would
determine whether or not VCC exceeds the appropriate
benchmark rate. The formula to be used by the local
franchising authorities has not been approved by the FCC at
this time.
As soon as the local franchising authority has completed its
review of any increases which took place after September
1992, it can order a rollback of the rates. However, the
cable companies can not be required to rebate to the
subscribers the difference between the current rates charged
and the rollback rate.
Staff Recommendation
Staff recommends that the City Manager be authorized to
apply for certification by the FCC to regulate basic cable
rates.
Attachment: Sample Form
May 25, 1993 c: \wp51 \CC.Repor1\Cab1e.RF.C;
APPENDIX D
* * *SAK"LE FCW ONLY - -WT APPROVED BY CM***
FC 1y FOR LOCAL FR<,.uCNi I S : NG AUTMORI iY CERTIFICATION
FCC Fora 328 APPROVED CM
Expires
FEDERAL CCXrMUN I CATIONS COKC S S I ON
KkSHIPK,'TON, D.C. 20554
CERTIFICATION OF FRANCHISING AUTHORITY TO REGULATE BASIC CABLE SERVICE RATES
AND INITIAL F .-,,D ING OF LACK OF EF= IVE CCMPET I T I ON
Return form to the Federal Communicatims Commission
(Under 47 C.F.R. § 76.1000 et sea.)
1. a) Na.-e of Franchising Authority:
b) Address:
(including zip)
c) Telephone:
2. a) Names) and address(es) including zip code of cable system(s) and
associated FCC comp unity unit identifiers within your jurisdiction.
b) Name(s) of system(s) and associated cormunity unit identifiers you
claim are subject to regulation.
c) Have you served a copy of this form on all parties listed in b?
Yes No
3. will your franchising authority adopt (within 120 days of certification)
and administer regulations with respect to basic cable service that are
consistent with the regulations adopted by the FCC pursuant to 47 U.S.C.
§ 543 (b) ?
Yes No