HomeMy WebLinkAbout1982-03-23; City Council; 6935; CABLE TELEVISION*\
P
g 9 * + r1mu -!JH Q) uD 6.4 k
% ;8$
r10 N 2
(drl rn 0
88 Y!
0 cd %d w2
&q k
Flu3 0.4
4J #&
a i m $
$g'!
w"% 8' $8' E &$$ s
8 8's 6 .Z*fl ' ~aw 4rnL-60 "' '
g $G 3
~1'~" G % 3 ko % -8 Zw k am oau (d 24
%.!!a $
%I+ 1: ?
8. 0
u
223 3
c: 838
+!-I -4 a 0 ro* wa, rl row .r(a (d 0 uoa) 5583' 8 3.5,.
N co I m N h .. z 0 5 a s z 3 0 0
v CITYBF CARLSBAD - AGENDA~ILL + DEPT. HDd
CITY ATTY- MTG. 3/23/82
*AB# DEPT. UTL CITY MGR.-
CABLE TELEVISION
RECOMMENDED ACTION:
Review request of Carlsbad Cablevision and La Costa Cable TV for alternative procedures for considering a rate increase.
ITEM EXPLANATION:
Both CATV companies have requested a rate increase. requires the City Manager to conduct a hearing and make a recommendation to the City Council.
In making its evaluation, the Council must consider many technical accounting issues, determine fair rate of return, assess engineering practices and review other matters which require knowledge and judgments which which, in my opinion, are not readily available to staff. In addition, I question whether or not the Council, as a matter of policy, should sit in judgment of the rates for cable television.
The field of CATV regulation is in a state of flux. Under the laws of the stati cable companies can opt for deregulating and coming under State control. Various bills relating to CATV are pending in Sacramento and also on the Federa' level. handling CATV regulation.
Before Carlsbad convenes a rate hearing, it would seem desirable to consider a1 ternative procedures such as:
The franchise ordinance
Many cities and counties have developed alternative procedures for
la Allow the company to deregulate and elect to be controlled by State law (AB699)
2. Modify City ordinance to establish a rate increase ceiling as is now done by the County of San Diego.
3. Opt to allow the company to set its own rates but maintain existing control on services.
EXHIBITS :
A - Current City franchise regulations
B - 12/30/81 memorandum on CATV rate regulation
C - San Diego County ordinance
D - Amendment proposed by cablevision
E - 3/18/82 memorandum - CATV
I
w
6'
\
thereon.
At the time set for such hearing, or a y adjournment thereof, the council shall proceed to hear comments as may be presented. Thereafte
resolution, may adopt, amend, modify, e or otherwise
change its respective rules, regulatio d standards. Such
modified, deleted or otherwise c d by the council shall become effective upon the tenth ollowing the adoption of
such resolution, unless a lo period shall be otherwise
provided in such resolution. d. 6055 §l(part), 1976) a
5.28.170 Rates. ( granting of any franchis eunder, the council, by resolu-
tion, shall establish
basic service, herein
i service (e. g . , ional connections, etc.).
award of a
the rates may be established as a part of the hear
ranchise award. Once established, such rates or
b) Rates and charges for any services, other than the
service, shall also be filed with the city clerk at
least thirty days prior to their effective date.
city manager or the grantee may initiate a change of any rates
or charges of grantee to subscribers. A request for such chanr by grantee shall be filed with the city manager who shall con-
duct a preliminary evaluation of the request, The city managel
may require the grantee to submit information regarding the
efficiency of operation, operating expenses, financial state- nents and any other information necessary to a full evalua-
tion of the request. When the grantee has submitted all
required information and the city manager has completed his
(c) At any time after the granting of a franchise, the
r' k. r
105-20 (Carlsbad 1/15/76)
L 5.28.170 0 w
preliminary evaluation, he shall issue his written notice
fixing and setting forth the day, hour and place certain when
and where any persons having any interest therein may appear
and be heard.
c
The city clerk shall cause such notice to be published in a newspaper of general circulation within the city. The city
clerk also shall cause a copy of such notice to be mailed to
any grantee at least ten days prior to the date specified for the hearing.
At the time set for such hearing, or at any adjourrment thereof, the city manager shall proceed to'hear the matter.
Following the close of such hearing, the city manager shall prepare and file with the council and the city clerk his re-
port of the hearing, his findings and an opinion containing his
recommendations and the reasons therefor, After, the expiration of ten days following the filing af the city manager's report
and opinion, council shall determine whether to adopt the opinion or to hold a further hearing. If an objection is filed in writing with the city clerk during said ten-day period, the council shall
determine to hold a hearing before adopting any changes in
rates or charges. If the council determines to hold a hear- ing, they shall pass a resolution of intention to do so, de- scribing and stating the proposed changes in any rates or
charges and fixing and setting forth the day, hour and place certain when and where ar,y persons having any interest therein
may appear before the council and be heard, Such resolution
shall direct the city clerk to publish the same resolution at least once within ten days of the passage thereof in a news-
paper of general circulation within the city. The city clerk also shall cause a copy of such resolution to be mailed to
the grantee at least ten days prior to the date specified for
hearing thereon. At the time set for any further hearing, or
the matter.
and i€ no objection has been filed thereto, the
c t
- at any adjournment thereof, the council shall proceed to hear
Upon receipt of the city manager's report and opinion, and the expiration of said ten days without objection, or
following the holding of a further hearing, the council shall determine whether or not to approve all or part of the proposed
change in rates and charges.
the council shall first find that the changing of any rates or charges of grantee to subscribers will be fair to the systerr
operator and not detrimental or injurious to the best interests
and welfare of the subscribers and users, and of the city. If the council so finds, they may by resolution authorize the
change of rates or charges of grantee to subscribers and users
as determined. Such resolution shall thereupon become and shall be a part of any franchise granted hereunder and affected
In approving any such change the
c
105-21 (Carlsbad 1/15/76)
D
It 'I 56 - 180-4 -28.190
thereby. Such finding shall be at the discretion of the
council which shall be exercised in a fair and equitable man-
ner. The council may consider and evaluate all relevant in-
formation in reaching their decision, including but not limited
to the following:
(- \-
(1) The quality of service being provided by grantee:
(2) The rates and charges prevailing for other sys- tems operating in the San Diego County area and other compar-
able areas;
(3) The nature, number and status of subscriber com-
plaints regarding service;
(4) The extent to which grantee is current in all
obligations to the city under this chapter.F:d his franchise;
(5) effective. (a) Neither the council nor the grantee shall, as to rates, charges, service, service facilities, rules, regulations
or in any other respect, make or grant any preference or advan-
tage to any psrson, or subject any person to prejudice or disac! vantage. (Ord. 6055 Sl(part), 1976).
The term for which the changed rates will be
. (a) All financial re-
rate considera
company.
be limited to, accoun
depreciation, capitalizati nsing of costs, deter-
(
(b) All account ctions shall include, but not
ortization of indebted-
cept, reject or modify the treatme id transactions for
original cost basis. (Ord. 6055 Sl(part), 1976).
5.28.190 Annual fifiancial report. Grantee shall file
an annual financial report reflecting the operations of the
Carlsbad system only and shall contain the following docu- ments :
(1) Balance sheet:
(2) Income statement;
(3) Cash flow statement:
(4) Statement of sources and applications of funds:
('
105-22 (Carlsbad 1/15/76)
.~. ~-~
Cable TV 400.1 0 ,F ,I
December 30, 1981 -
.. Mi :,;O RAN DU M
TO: City Manager
FROM :
SUBJECT: CATV Rate Regulation
Director of Utilities -
A3699, enacted in 1979 and appearing as Section 53066.1 of the Government Code, limits the rate setting authority of the local franchisor under certain conditions.
These conditions are:
1. Franchisee provides 20 or more channels.
2. Receives signals from a satellite earth receiving station.
3. Has a penetration ratrioof less than 70%.
4.' Is located in an area which has available three significantly viewed stations.
5. Is providing or has agreed to provide a community service channel program..
Additionally, the operator inust make a declaration to the City that they choose
to operate under the provisions of the Government Code, which includes a contribu-
tion of 506 per subscriber per year to a foundation established under 'this section
for the purpose of developing cable TV public access capabilities within the State. The operator is limited in the anount of increase to 75% of the percentage increase in the CPI since the last rate increase.
Both Carlsbad franchises meet the requirements of AB699; however, neither one has
indicated they wish to file under its' provisions.
The legislation is quite interesting if viewed in the
and arguments.
1.
context of cable TV issues
Cable TV is usually viexed in one of the following perspectives:
As a monopoly - it bas many of the physical characteristics of public utilities
by use of the public right-of-xay for the provision of their service. be viewed as a monopoly if you consider the operator is the only one providing
the service - howzver, if cable TV is considered as an eniertainm2nt media only, there are obviously other competitors in the market.
is operating in an area where off-air reception is good, it can be considered to have direct competition and to be operating in a competitive environment.
As a col1iii:on carrier - is cable TV a systeni designed to deliver channels to the
home available to anyone concerned (including the cable company) at a pre-
determined or regulated rate? This argument has some validity when discussing public access; however, implicit in this argument is also a highly regulated rate setting system.
As a publisher - many cable TV operstors and busiriessrrien argue that they are
non-print pub1 ishers and, therefore, should receive full berieFi t of the first
airiendirierit and extending to the non-interference of goverrlment in setting their.
rates - a cociipltte fret. nidrket approach to their services.
It can
Additionally, if cable TV
2.
3.
Ti ty F.Tanager 'W. -2- * December 30, 1981
Suffice to say, there are elements of fundamental truth in each of. the three
arguments; however, more fundamental to our understanding is that cable is unique
unto itself and it will be necessary to develop different governmental approaches to dealing with the service that, on the one hand protects the public interest
(including a competitive level of service at a reasonable cost) and, on the other
hand, providiqg the opportunity for the operator to earn a reasonable rate of return on his investment.
Our state legislators did recognize the changing attitudes of communities toward
cable and have incorporated some of the necessary checks and balances. This can
be seen in the various provisions of AB699:
1. It applies only to those systems which can reasonably be expected to be
operating in a competitive environment; i.e., an area covered by three
significantly viewed stations.(In our case the San Diego stations are licensed
for our area, plus Channels 4, 5, 11, 13 are "significantly viewed" by FCC
definition).
does not have a monopoly in the delivery of entertainment/educational cable service.
Thus, the cable operator is in competition with off-air TV and
This element is reinforced by the requirement that the operator has
less than 70% market penetration.
2. The systern operator must be operating a system generally accepted as state-of-
the-art - 20 or more channels and satellite receiving stations. Plus, they must be providing cormunity service by providing public access.
Thus, in the eyes of the State, an operator who is operating in a free market entdironment and providing a high level of service can set his own rates. A cap, or "not to exceed'' level is also established (75% of CPI) which takes as a base
the fully regulated rate level of the original franchise or subsequent fully regulated charges.
The City of Carlsbad, when developing the franchise requirements, recognized the
st3te-of-art capabilities and required the system to meet them. In retrospect, our franchise minimized the competitive nature of cable and thus included a rather
cu;bersome rate setting/review procedc;r-e.
Rzte settinglreview by publicly elected officials, it can be argued, places these
public figures in a 'llose-lose'l situation. Additionally, the public hearing
process, although motivated to protect the public interest, in fact can operate
contra to the public interest by providing a forum for parochial interest grou?s
whg use the forum to trumpet their own personal viexs and when the public official makes a decision which may not be consistent with the parochial interest, is
accused of making the decision without the public interest in mind. A cormon
argliinent is that any rate increase by the elected body is the real reason for inflation or the public official should make a decision based on other considera- tions rather than the value of services received; i.e., preferential rates to
various economic groups.
establishment of rate setting corninissions composed of experts in various areas
arid somewhat removed from the elective process.
vulnerable to emotional considerations and better able to deal with only the
financial/technical arguirients of the operators and the public. Arguments that cor,i;iissions are less than efficient also prevail as they tend to study and staff
a problerri to ensure all details, even the smallest, are subjected to full
scrutiriy and techriical evaluation.
A solution to this dilemna may be, in part, the
Commissions then are less
5
-3- % December 30, 1981 0- *-
ci iy Manager
Kcw then should Carlsbad proceed in establishing cable TV rates that are fair and
equitab16 to both the public and the operators?
operator has the option (not the City) of making application for rate deregulation und2r A6699. It is doubtful that our operators particularly relish this course of
action; however, should the City's process result in a decision not reasonable to
their eyes, I doubt that there are any significant inhibitions to then from pro- ce2ding under the Government Code.. Should the operators proceed under the
Government Code, revenues generated in Carlsbad will be funneled to support cable TV access efforts most likely outside of Carlsbad.
It would appear reasonable, therefore, to proceed to change the Carlsbad lYunicipal
the same cap) and provide for the City to recover the funds that would be directed
elsewhere in the State.
ambitious program for providing public access than the State's is desirable for
franchise fee could produce in the range of $10,000-Q12,000 per year.
if applied to programs to enhance public access, could result in a very ambitious
effort.
Unfortunately, all levels of governxent are not in synchronization on the franchise
fee issue. Cable is still regulated by the FCC and in spite of much publicity to
federal efforts at deregulation, few changes have been made since our franchises
were approved. Current FCC conditions limit the franchise fee to 3%, based on
norriial levels of effort to regulate and for use of the public rights-of-way.
'n'aivers can be granted to exceed the 32 limit up to 5% based on pleadings to the
Cable TV Commission that excess revenues to the city are required for regulation or to provide local access.
our overall regulation/publ ic access program, not merely a justification of the
franchise fee requirement above the 3% level.
How?rd Gann, Cable TV Information Center, on DeceEber 28, 1981 and he indicated that few waivers have been granted and that it appears the current administration
is not particularly interested in new cable legislation or change to present
pracedures; i.e., the status quo will prevail for some tine.
Increasing the franchise fee above the 3% level doesn't appear to be practical at
this time. Should we wish to broaden the conditions of the franchise relating to
local programming or availability of facilities which can be translated into
nocey terns, that the franchisees are required to provide as a condition of our
deregulation efforts, this is a possibility.
The County of San Diego adopted modified deregulation ordinances in 1979 which
sem to be working well.
have drafted proposed changes to our code which are attached.
It should be recalled that the
cod^ to incorporate those aspects of AB699 relating to deregulation of rates (with
Should Council and the operators agree that a more
sthe City, an additional franchise fee could be applied. A 1% increase in the These funds,
This pleading would require complete justification of
I discussed this requirement with
These ordinances have similar provisions as AB699. I
C+&/d ROGE 1. G E
Dire.-Lor of Utilities
R'AC 1 p'f b
attdch.
21.1621 'Tc e .9-79
service on a ye area be serve
within a reasona
See. 21.1622. SE AREA EXCLUSIVI Licenses shall be
their licenses,
Sec. 21,1623.
issued for a term e licensee
of performance ed in Section . During the thirteen
may make application for a new
Sec. 21,1625, RATE REGULATION. The Commission shall have
the power to regulate and establish reasonable rates and charges by licensee for services rendered under the license.
a rate schedule listing the maximum rates which the licensee may
charge subscribers for installation and services.
by the Commission, excep; as hereinafter provide7 in Sectiox 21.1626.
(
The Commission shall, at the time of license award, auth-orize
No increase in rates may be made without prior authorization
Sec. 21,1626, RATE REGULATION - COST OF LIVING PASS THROUGH.
Subscriber rates €or cable television services shall be set and
maintained pursuant to the provisions of this section,
(e) t (f) t (9) t (hl r and (i) of this section, the,licensee may gdiust its rates and charges not more than once in any 12: month perigd, as follows:
(a) Subject to the provisions of paragraphs (b) r (c) r (dl r
-
(1) If the cost of living, as defined by the Consumer
Price Index for "all Items, Urban Wage Eazr," for San Dies California, has increased from the previ- ous year, the licensee
of living increase. take advantage of said increas e, the amount of the
increase to which the licensee is entitled mav be
carried forward to a future year; provideg, however,
S
ce charses by cost '---?s S--Vi ee elect not to
3,'
"it"
A_-...---
L 6 9-79 F 21.3626
ri.hts to an incrcnse for any one year shall be waived permanently if not * licensee pursuant toeithin a four-vear period
from' the'date of publication of the Consumer Price Index
for the quarter which is carried forward.
may any increase pursuant to p-, - accumulated increases, ex
is being sought.
IZthe aforesaid Consumer Price Index decreases from one
year to the next, a licensee shall, if it has elected to take advantage of a Consumer Price Index increase or
(60%) of the decrease of the Index. licensee has not taken advantage of past or current
Consumer Price Index increases, the rights the licensee has to increase its rates through the cumulatiog40f past or current increases in said Index shall be reduced by the decrease in the Consumer Price Index.
Any licensee may petition the Commission, at any time, for an increase in rates greater than that permitted pursuant
to paragraph (a) (1).
The application shall. be considered pursuant to Section
21,1651.
When a licensee elects to increase its rates pursuant to
-- ted in an increase by the
In no eve-nt
inc lucling
ifteen percent (15%) of -' the rate or charq-wu ate increase
(2)
L~ increases, decrease its ratFs and charges-by sixty percent
f To the-extent that a
(3)
(b)
% paragraph (a), it shall L?iEtTw3 in writins, the Commission, a minimum of geventy (70) calendar days before the increase is scheduled to take effect. within fifteer! (15) calendar days, <In the basis of excessive sub- scriber - -- cornolaLnnts, _I?- 01: if the Commission determines, that a licensee ia failing to meet FCC Technical Standards, is not pro-ding- service for ita cwmers, cr is not complyin3 wi?rts license - cOrmihn&k, Tf the Commission challenges ar- increase pursuaTt to
this paragraph, the increase shall not become effective until a hearing is held on the matter and a decision rendered as provided in Article 6 of this chapter.
In service areas in which densi y of residences passed by a licensee's plant is greater than thi t (30) per cable mile,
~r in cable television systems which hav
the provisions or" this paragraph shall !jY pply:
The @ommission may c&allenge this increase
(c)
over 3500 subscribers,
(1) If over sixty-seven percenth67%) of the residences passed
by a licensee's plant are jubscribers, the licensee may be required to show causy/at a public hearing why it should
not be deemed a natural /monopoly , subject to rate regulatic . by the Commission. required if the licen ee submits, in writing, to the Cornis- sion proof that it i. provi.dfnq three or more of the follow-
at the sole discret on of the Commission:
El0 ever, such a hearing mey not be
ing services, the a$ qriacy of such proof to be detexinined
[ /
b
21.1626 6-51 t a
a. production of local origination programiiing (independent of programing described in sub-/
paragraph c below) or greater than ten (10?,,hoU per month.
religious, sports, C-SPAN, and other network en taiment programing,
c. the pmt&on, development, or fu ding of a mini of twenty (20) hours per month ach of two or m
of the following:
governmental access, and/or fiii) public access
programing -
d. implementation of two-wa communication service
c
/ b. provision of extra customer services, uch as
/
,/'
2
(i) educati6nal access, (ii)
./
7/
i //
,,//
/
(2) If over ninety perc/ent (90%) of the residences passe nt are subscribers, the licensee to show cause at a public hearing it is not acting as a monopoly and to rate regulation. Such evidexe
f- i
TL. ,
but shall not be liniked to, those
vlded by paragraph (c) (1) of thl 'S sec
ates. At any time after the operative
a licensee supplies in the discretion r more of the services described in s section, and licensee's rates do not of such services, it shall be entitle
se in rates provided elsewhere in thi
ate not to exceed ten percent (10%) c
3 thz County of San Diego may, at its election, at any time, re- capture the rate-making authority it possessed prior to the enactment of this sectfon.
The rates in effect as of July, 1978 shall be consid
the base rates. Index shall be considered as the current price base for calcul tions of the percentage changes from one year to the next. Th
Cornmission may obtain necessary baseline data from each licens as necessary to fulfill the intent of this section.
J
(9) The July, 1978 indices of the Consumer Price c
.) w 9
21.1'626 6-81
(h) No provisions of this section shall become effective or operative for any licensee until the Commission has certified in a pub1
hearing ithat the licensee is currently providing proper service to
with its 19cense commitment, and has no outstanding complaints on file with the Commission over ninety (90) calendar days unresolved. When this section bgcomes effective for a licensee, its license with the County shn1l be amended to conform to this section.
cr" Paragraph (c) sf this section not on the basis of licensee's
current service areas, but on the basis of service areas that coincide
wkth the boundaries established by the Community Planning groups of $an Dfego C~unty, The Commission may further require'that as a condition of fmplementation of the provisions of this section, that
existing License agreements be amended to specify that the provisions
of Paragraph (c) shall be based on such specified service areas, and nok system wide. (Amended by Ord. No. 6049 (N.S.) Eff. 6-11-81)
ita cu~tomer3, it3 meeting F.C.C. Technical Standards, and is Complying
(i) The Cmmission mayp at its election, apply the provisions
- - SErnOX 29 -1627, TECHNICAL S'I'F
cable television licensees shall comply with tne 1!
ards established by the FCC. These standards shall
performance levels; the Corrmission shall have
s?andards.
services to
reflect those techfcal onomic develop ccurring during kke term of license whic xn terns of new, n~re effective, or more effi
request, Additior,al or repeat te
tci s%cure conpl;Fance with the Tec
(cf Test data shall be ma
(a) The Commission shal odic checks of cable tele-
s with a high incidence af subscriber complaints,
CSE?IA,?CNTS .I
SECTXON 21.1628 STIGATION AND RESOLU OF SUBSCRIBER
shall keep a record of all subsc
solution of complaints shall be e
ChJ.irperson of the Commission,
&!I e ORDINANCE NO. - - -/ 1
#
os AN ORDINANCE amending Section 5.28.170 of Ordinance No. 6055
02 of the Carlsbad City Code relating to the powers of the City's Communit
03 Antenna Television Franchise to set rates and charges for services
04 provided by eliminating the requirements of City Council approval for
05 rate increases; and repealing Sections 5.28.170 of the Carlsbad Municir
06 Code as hitherto existing.
07 RE IT ORDAINED by the City Council of the City of Carlsbad,
08 California:
09 Section 1. That Section 5.28.170 of the Carlsbad Municipal
10 Code be amended to read as follows:
11 5.28.170 Powers of Company. (a) The company shall have the
12 authority to promulgate and place in effect from time to time such
13 rates, charges, service facilities, rules, regulations, terms and
.
14 conditions governing the conduct of its business as shall be reasonablf
15 and necessary to enable the company to exercise its rights and perform
16 obligation ucder this franchise, to assure an uninterrupted service to
17 each and all of the customers: provided, however, that such rules,
3.8 regulations, terms and conditions shall not be in conflict with the
19 provisions hereof or the ordinances of the city or the laws of the Sta
20 of California, 2nd further provided 'chat the company, as to rates, cha
31 service facilities, rules, regulations and in any other respect, shall
22 not, make or grant any preference or advantage to any person or subject
23 any person to prejudice or disadvantage.
24 i! graduated scale of charges and classified rate schedules to which an
25 customer coming within such classification shall be entitled, and such
'36 gradxated scale of charges and classified rate schedules shall be plac
27 on file in the office of the City Clerk. The company shall file any
28 proposed changes in said charges and rate schedules in the Office of t
29 City Clerk at least thirty days prior to their effective date, and no
30 new rate shall become effective until it has been on file in the Offic
31 of the City Clerk for at least thirty days.
The company shall establish
e 9
35 (b) Ey its acceptance of this franchise the company agrees that
33 the council shall have the power, author.ity and right to reestablish
34 - its rate-making power at such time in the future as it determines tt!
35 in the absence of such action on its part, the company's rates and
36 charges would be unreasonable.
37 (c) However, no action shall be taken by council with respect to
38 the company's rates an; charges under this section until the company
39 has been given reasonable notice thereof of not less than sixty days
40 and an opportunity to be heard by the council with regard thereto.
41 Section 2. That Section 5.28.170 of the Carlsbad hlunicipal
42 Code as hitherto existing be and the same is hereby repealed.
43 Section 3. That this ordinance shall take effect and be in
44 force from and after its passage and publication according to law.
Introduced by:
Approved as to Form and Legality:
City Attorney
Staff Review Completed
City Manager
82-0; t 4002 !
E -
March 18, 1982
MEMORANDUM
TO : City Manager
FROM : Utilities Director
SUBJECT: CATV
We have been having discussions with the Managers of Carlsbad Cablevision and La Costa Cable TV since late spring of 1981 concerning rate increases and the possibility of changing our Code to reflect changing attitudes towards the matter or rate deregulation as reflected in legislation passed by the California Legislature in 1979 popularly known as AB699. copy of a memo I provided in December discussing AB699 and its ramifications. Perhaps a brief review of Carlsbad Cable TV experience will be helpful:
I have included a
a. Dec. 1977 -- The CATV franchise was granted by City Council. The maximum rate that can be charged for basic service is $8.50 ($7.50 for service plus $1.00 for a controller).
b. Jan. 1979 -- Construction of the Carlsbad Cablevision system commenced on the head-end site. Service was initiated in summer of 1979 from the head-end facility. "grandfathered" thus had to upgrade their system to meet the franchise requirements (20 channels).
c. April 1981 -- Operators opened discussions for rate adjustments in accordance with the current code provisions. La Costa's upgrade was complete; Carlsbad Cablevision had about 80% of service area wired, the operations building was near completion and agreements for interconnection with La Costa and joint use of the Carlsbad Cablevision studio facilities were being finalized.
A1 1 franchise requirements were being met. The proposed ceiling on the rate increase was proposed to be $10.95 for basic service.
deregulation along the lines allowed by State law (AB699). The cable companies proposed establishing a non-profit CATV founda- tion to be funded with 1% of basic revenues.
La Costa Cable was
d. Nov. - Dec. 1981 -- Discussions were expanded to consider rate
- 6 a
City Manager Memo - CATV March 18, 1982 Page 2
There have been no adjustments in rate ceilings since 1977 and logic would indicate, based on general price trends over this period, that an increase is in order. The CPI went from 186.7 to 317.4 during this period -- a 71% increase. little similarity to Cable TV service, however, it does provide a general trend of the economy that is indicative of the economy. AB699 sets a cap of 75% of CPI as reflecting Cable TV rates, whereas, the County modified regulation ordinance sets 60% of CPI as reasonable for Cable TV rates.
We have three options available to us at this time regarding Cable TV rates, as follows:
It can, of course,be argued that components of the CPI have
1. Do nothing -- this course will, in my view, cause the operators to file under AB699 for deregulation. I expect the operators could accomplish all the necessary steps to cause an increase in May - June.
Proceed under the present Code provisions -- this procedure will make any rate adjustment effective in the June - July time frame.
Modify our Code to provide for modified rate deregulation under certain circumstances -- this could be accomplished
in the same time frame resulting in a rate increase in June - July.
2.
3.
It is suggested that the modified deregulation provision be discussed as an alternate method that could be used by the operators if they meet certain conditions and not as a replacement for the present code provisions.
u* - -- 7 <- *-dr
RO W. GREER Director of Utilities
RWG: jlc
Attachments
umo-i *o-a+ PCn- 3 WOUU< mn urn -a, - = 1000 IWP 77 cn3. Eu ul3 00 - ma u PulrnOE - (T)--'.m- .--Id.. f-D (-D mQOCD NO- D-5 ox< m I3 - - - U 2. u --1.v,o -w --e+ 0 m -.1. 0-Q w cno W CDZ
- - -
- - -
0 D W r m
0 0 3 -0 D z ,-e
mu mm mw mCQw m-w x\ x\ X\W xmcn
'W *w -\ - \N mcn -\ -\ -m --0 - P rsu -0 UJcn corn w a- am 05 w 03
cr.2 -zh 'urn 3 wcn ucncn
2
zl- cl-l zo wm mz 7owJ m
--1 OD- C? u1 cn cn w coo +UZ 0 0 0 0 w r- 0 0 0 0 cn rnr-rl -lm
d 4 -4
D -l
m
4 -i --I 4 cn ul cn w G.
c 0 0 0 w 0 0 0 0
-0z COwJ --tz-l rm> ulmr -4r
0 Q Q 03 w
N cn w u, w
-37
;u 03 0 Ln
0 co +z
4 3Lnz
rm Ez m XWC
tu w N cn u, x &? &? x &?
'-
N - CQ cn N -U --1
0 Q w. -4 w v w
" U Y Y U m w CQLn 2 N N 05
d N d 4 4
N N N N - - Lnz
7 -rlF mz mo rnI
Ln m
H
wJz co W.
-0
-r(
0 IZ DO Z' Go r-rl v,
OPV)C'rn~0 >'.do C. 0 st;r r?z g:z !Ey)r;;.% $F$ OYlW u. E. 0-z D.0 mm - * COO r-. L'I 6.- >or -0- 10- -0- 5:*;$5& Lg a,pr
:=E $3 ago uu3 VCO PTO $wF" *-PI7 DDC.
Sl=" nn Db- On rn ou WP 0V.D 3p ;p2
g:: : u,
0 r. 0 +.- CI P. VIcn P WNr( :?(-I ,Two
yo** Egz 3:g
gi?; oz: 2scn
31j-cn lnctur. orT2:.s n0r( 3 D n 1
rnOY -00 x0
WY - +(P WWO - N2 >NO
PJI- aco 0 boo DOC DDD mow - r- ~n
rtT w m x cxe pxw c.xz aa ax02 axc) O occ axo maw 0 c cn1Y 3 P -we 3-0
yp +pag . o 5s: hG;" y-3 COP
D - v omn - o 0
eo3 at ;"ag grr ppn t3'
2
8
z 2
7 3
I w- 4a W PP 0 VI- NQ,
VI0 0 -- 00
N c. c-' ?- N v W w NtY VI
0
0
0 0 u1 In 0 2 P -0 0 4 vi VI
0 2 0 0 0 0 0
F om ~ ..
b' O 5'2 0
0 z
CH 432
P N - s 2Fg Q c. t-. N
0 VI
WVI
wl 0 0
x"rJ .. ww ..
I 0 VI 0 (Doc) 0 0 0 0 rtoa D,
WI-0 I70
;f%2 OF
NN owl 00 00 00 00 WJ CT- n G 03 F -li
22 "-s
2E
3
r ';I
-3 P
I
m a W W m F 0
10
I 2 d 0
VI 0 cn 0 ul 01
W i. DO I-J t-. .. ID
0 m 0 0
u h, 0 N t-7
N 4-
0 u1 UIVl
I
os 20
r; nz
2E ?X l-
I
Ln z2 0 z L: T v1 rr r D, n 0 C GI I7 a )-. U
D
2 F rr Y 2 2% rl 2 6 rn 3
e '- g, +n
I- c. .N N w- E F h) &- cn 4 W *
i c. N c. P D
h) N p zc mrl z
i ~ -& .By 0 -0 .v
S!?N l?IP:Co c\T)uxiTi'p 'j'rr,[<v T s 10s I{,]'!'].:s ~- - ------ -_ - ___ - ____- - ___
hIONTIiL,Y SE:i?V 1 CES rm SEXVTCZ I:.:ST;lr,T, I?i.;=
12 Chs. Additi onnl nl'is 1 c
- I r-L.--___
$8.50 S2.75 $15.00 SlC
(35 Chs) $10.O~pw
$1.0.95 s4 .OO $25.00 $1:
$15.00p.bv
$9.25 s2 - 00 $19 .. 95 $9.
5XCCEIO LA COSTA $8.50 $2 - 75 $15 - 00 $6 -
:ABLE TV (W Cljs) io.
A*I>,IES hiIRKOR $8.35 $12.35 $2 - 50 $IS. GO $1 5
I&.' i st a (21 Cihs) (i,/ccvzr
i'f3!ES XIRROR $9.75 $13.75 $2 - 75 $29.75 ii9C
Ijccch Cities (21 Chs) $1.5 . 0 opw
fi I&
hlo-
nlc- (22 Chs)
I 11 LS3 n D I
, iJ I:REi$\;'T
1
'1;) 2>,J,Si3i\D
.LE RATES .--7
mLmrm
T::*!'!uLsv I s T ON
as
z $5.CO)
~ T, ,- $2 00 un avai 1 able - I !.AS h!I !WOR $8 -45
__ II s co n Ci i do
: 3 .:LA ?.!E S A $8 - 95 $10.00+3.00 SI - 95 $15.00 $8 - C.?.llbrook cnvtr rental $7.5Oprs'
;l'I'C $8.68 $9.80 $1 - 95 $15.00 $7.
COX CABLE $10-50 $1-75 + $15 - 00 SIC
(33 Chs)
SOUTZI?r''ESTBRN (13ch) (20 Chs) $ 7 . 50pw
(25 Chs) $17 - 95 s 7.5apT.v
if prernicrns
are tz'rcen
.>
x ooo A& Lu &c;'C o&[a & m-& be 6.f Idftim!v (3 \I f
]Q.O~ &Q M d!Zk
-
.. CALIFORNIA mTIES DZREGULATED bTDER @ 699=
co .'rP .m E' CITY
Calvideo filpine
CATV of King City/Greenfield
Auburn Cable TV Auburn
General Electric Cablevision
General Electric Cablevision t:erced County
King Videocable Co.
Sonic Cable TV blorro Say
Sonic Cable TV Pismo Ijeach
Teleprompter Corp.
Teleprompter Corp. Saata Clar2
El Cerrito Video System
Field Czblevision Redlands
Thetz Cable of California
Thetz Cable of California
3eta Czble of California
King City/Greenfield
At n-a t er
Conmmity Cablevision, Co. Irvine TE jung2 '
Mi 1 pi t as
El Cerrito
Beverly Bills
Bell Czngon/Ventura C(
Santa 3onica - laezca Cable of California Rancho Cucmonga
~Pesa Cable of Celifornia Altz Lorna
YL~COEII Cablevision Livernore
:lontzrey Peninsula TV Czble
!,!onterey Peninsula TV Cable Salinas
2-X Czblevision Ridgecrest
7ziler ?~.nex Cable Palm Springs
tarrier hex Cable Riverside Coizncy
= These conmunitles have been dereguY8ted under California Governnent Cc Section 53066.1, 13. new state deregulation progrm approved unanimouslt
zh~? Stzte Legisleture.
-- -
Czrnel-by-t he-Sea
--
-_ -
9/22/81
D, q .EGUL.L?ITED CITIES IX ChLIrui??;I-A* !. CO.'~fPANk' CITY
lfierican Cablevision of Orange Orazge County
South:vest Cable Company S2n Diego County
i3 -S. Anderson Company
Total TV of Santa Rosa
Castro Valley Cable TV
SZR Bernardino
Santa Eosa
Czstro Vzliey
Big Valley Cablevision StLockton
Bakersfield Cable TV, Inc. Bzkersfield
Cox Cable of Humboldt Bay
fiiission Cable San Diego County ?Jission Cable City of Sac Diegc
Yission Cable El Cajon
:fission Cable Xztional City
Eission Cable Lexion Gr0q.e
?orterville Cable TV Portervil le
Srraard Cablevision Oxnard
3uaard Cablevision Ventura County
2xe2ra Cablevision Port tirrenens
'iorth Bay Cable TV Vzliejo r's_lcon Cable TV of Eo. California
'zlcon Czble TV cf No. California
-rfcon Cable TV of Nc. California
-'alcon Cable TV or^ No. California
E7xeka
3
Gilroy
Hollister
Rill L.2L.J. GdC
Lcs Angeles, El C Alta Dena
Fresno County
rresno Citr
2 r,-&>-r--
-iesoo Cable TV, inc.
-res20 Cable TV, Inc.
Tracy
Ji5 r c e d
Y2 1 RU t Cree k
a ;ez;?ral Electric Cablevision
:$zeral Electric Cablevis ion
i322r21 Electric Cablevis ion
:ill CzSle, Inc. San 2cse
:< --L 7 3 Cable, Inc. Santz Clara
-iII CaSle, Inc. Cupertino
The city or county has voluntarily deregclated the coxTimlties listed
on this sheet. 9/22/81
0 D!LIJLqrrED CITIES rs C-qLIFoExrA
CITY C OXP AX k’
Susanville Cablevision Susanville
-. Konocti. TV, Inc. Unincorporated Lake County
Xonocti TV, Inc. Lakepor t
h’abcat Cable, Inc.
Valley County Cable TV
Lodi Cable TV Lodi Val en c i a
Seit.h all
Listrbnics, Inc. LaCmada North County Cable Korth San Diego
Spring Valley Rancho Transmission Co.
Six Star Nielsen I ngl eivood
Sonic Cable TV Grover City
Storer Cable TV, Inc. Pairfield
Storer Cable TV, Inc. Cotati
S:uaset Cablevision, Inc.
2oseville Cablevision Roseville
lele-Czble Service Corp Borrego Springs -;x hen I Cab1 evis i oil
:
-3
Sunset k’hitney E!
Berkeley
2rclfica Cable Co., Inc. Pacifica
2sninsul.a Cable TG Reds-ood City
Teleprompter Corp. Oa41znd -71 1 ev e n t s
?elevents Gustine
LOS Banos
-=?a ----v5nts x2ryT;s2n
“3lZVenTS BI-enEvood
1s I3 7 e 3 ZS m Pleasant Hill Yt.2 zve n ts
-LA- ’ 27 cavents
izle-~ents liar t in ez
--:s~a Cable of California
Theta Cable of California
;seta Cable of California
;”et2 Cable of California Ontario ’Theta Cable of California
Lzfaye t te
Contrz Cost2 Coun
El Segundo
Blarirla del Rey
-
-
-1
Kest - Hollywood -.
Upland .
9/22/s1
m @ *,
DZ REG EL ATE D c I rr I E s i :; c n T, I FXFS I pi
- COS P ANY c I TY
hlo n t c 1 a i r
La Verne
Sari Clemente
Ranchos Palos
Thetz Cable of California
Theta Cable of California
Orznge County Cable Corzmunications
Palos Verdes Cable Communications ,
TI1 Cablevision San Diego Coun
TX Cablevision Escondido
IYGN Electronic Systems Lanc as t er
Imperial Valley Cable Co. El Centro, Bra Calexico, Hot1
Imperial
Karner hex Cable Palm Springs
Karner Fmex Cable Riverside Coun
Haysard Cable TV H a y w a r d
San Leandro Cable TV San Leandro
Cable Television San Lorenzo
?Tor Cal Cablevision Butte County
SOT Cal Cablevision Paradise
Sor Cal Cablevision Unincorporated of Butte Count:
?;or Cal Cablevision Wheat land
Xar Cal Cablevision Butte County
7i2com Cablevision Tehana County
Tiacorn Cablevision Red Bluff
Viacorn Cablevisi on Shasta County
T izcom Cablevision Anderson
~'iacoz~ Cablevision Sonora
*
--
_-.
.?d -_ ;rernzr Amex Cable Avena1
v.
crrne-~ hex Cable Shaf ter
:l~..L.-- Amex Cable
;Y z r -? e r ,he x C2b 1 e
I-.zrr_er Amex Czble
hI e F a r I a n d
Bakersfield
-:---may
-,- Kern County
Xar_n_er Anex Cable I'l'asco -
Karner hex Cable Delano
ii'arner Amex Cable Xfal ibu
ISarner Amex Cable hlal ibu
Xarner Aillex Cable "aft 9/22
b 0 0
1. DEE5GUL.4rI'ED CITIES IS CAL1FORTI.A
I'IIPANY CITY
arner hex Cable Kern County
Concord Cable TV Concord
'fonterey Peninsula TV Cable hlo n t er e y
'fonterey Peninsula Ti7 Cable hlonterey Count
'ionterey Peninsula TV Cable Pebble Bezch
State TV Cable Chico
State TV Cable Butte County
Stzte TV Cable 17 i 1 loiss
Stzte TV Cable Glen County
State TV Cable Orland
Szate TV Cable Glenn County
S-czte TV Cable Corning a
._ zestern TV Cable So. San Fralzci
Lzke San 3Jarcos San Diego Cour
"5
-
a
INTERDEPARTMENTAL MEN
>z. ;,* h
TO : City Manager/City of Carlsbad DATE: March 23, 1982
FROM:
SUBJECT: Rate Adjustment
Rancb La Costa Cable TV
LC
This is a request under the terms of Section 5.28.170 of the Carlsbad Municipal
code for the following rate adjustments:
Primary Service (includes converter) $10.50
SecoM-lary Outlets (includes converter) 3.50
This is an increase of $2.00 a month for primary service and 75C a month for secondary service.
I would appreciate expeditious action in regard tothis request.
If the rate adjustment section of rate procedure, you my consider this a notice of an intent to adjust as indicated
above.
ity c& is amended to provide for a &$$=e
*
F’red J / Morey
M
7dC.%
vice J&ent/- v *
FJM/des
cc: Myor
Members of City Council
Utilities Director
F