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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