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HomeMy WebLinkAbout1982-04-06; City Council; 6935-1; CABLE TELEVISION< 4- P .$ 3% a, E 3* !i a fs 3i -G m Loa, 35 -0 0.U zd p az” a 8s *rl a,c, a0 32 om gc2 24 52 00 vo ‘G .a OI a *: -& .. z 0 F 4 a Z 3 0 0 0 J ’P i. L. CIT%F CARLSBAD - AGENDRILL TITLE: DEPT. HD.- AB#6 9 3 5- 1 MTG. 4-6-82 CABLE TELEVISION CITY Any- DEPT. CA ClfY MGRs RECOMMENDED ACTION: If the City Council wishes to approve the proposed increases in rates and charges for cable television service and to revise the municipal code to provide for modified deregulation, your action is to introduce Ordinance No. 6,Oy- . If the City Council wishes to accept the offer of Car s ad Cablevision and La Costa Cable TV to give one percent of their basic cable service revenues to a foundation for community based programming, your action is to adopt Resolution No. 68ql approving an agreement between the City and the cable operators in that regard. ITEM EXPLANATION : The City Council, at your meeting of March 23, 1982, directed the City Attorney to prepare an ordinance amending the municipal code to provide for modified deregulation of CATV rates. The amendment will give an alternative to a full rate hearing which provides for an annual cost of living increase in rates at the option of the operators. The cost of living factor will be applied to new base rates set in the ordinance. The new monthly rate for Cablevision is $10.95 and $10.50 for La Costa Cable TV. The ordinance, in effect, approves rate increases for cable television service to be effective when the ordinance is effective. The base rate and the cost of living escalator will apply to basic service including converter rental and additional outlets. The ordinance incorporates without change the existing bulk rate and the motel and hotel rate (80% and 60% of the base which were adopted in 1977 and currently set rates. In response to a request from the operators and upon recommendation of the responsible department, the ordinance does not provide any regulation of installation fees, reconnection or relocation fees, converter deposits, transfer of services charges or FM service. Increases in these charges will not be subject to the cost of living limitation. Unless the City Council would choose in the future to opt to reimpose regulation, these charges will be set by the operators. La Costa TV does not propose any changes in their current charges. Cablevision rates for FM service and converter deposit will remain the same but their other charges will be increased as follows: Installation - $15 to $25; Additional Outlets - $6 to $15; Reconnect/Relocate - $10 to $15; and Transfer of Service - $8 to 15. In effect the ordinance approves the increased charges effective when the i rate). The ordinance rescinds Resolution Nos. 5220 and 5221, ordinance is effective, t -2- Ib 0 Not included in the ordinance is a provision for the payment by the operators of one percent of basic revenues for community programming. The operators strenuously objected to including that in the ordinance. As an alternative, they have agreed to our recommendation that the voluntary payment be a matter of agreement between the operators and the city. The proposed agreement is attached. If the council incurs with that approach, your actions to adopt Resolution No. &pq/ approving the agreement. EXHIBITS: A. Ordinance No. Lobs- B. Agreement for community programming. C. Resolution No. (bP4I . .. P 2 3 4i 5l 6, m w ORDIWANCE NO. 6065 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING TITLE 5, CHAPTER 5.28 OH THE CARLSRAD MUNICIPAL CODE BY THE hDJIITIO"\I C? SECTION 5,28,375 TO PROVIDE CABLE TLLEVISION SESVICE AED INCREASING SAID XATES. hN k-LTB!<N4?IVK ?FoC!?2UX?? ?9R PIXIYC YATES FOR _---.. __------ The City Council of the City of Carlsbad, California ' 7 a 9 10 11 12 zces or?ain as fcllowc: SECTION 1: That Title 5, Chapter 5.28 of the Carlsba Municipal Code is amended by the addition of Section 5.28.175 read as follows: 5.28.175 Rates - Alternative Procedure. (a) The provisions of this section shall be an alternative to section 5.28.170. Change& in rates and charges 18 19 20 21 22 23 24 25 26 27 28 (2) Grantee shall not submit any rate change increase which exceeds sixty percent of the increase in the cost of living, as defined by tl Consumer Price Index (All Items Index) "For Urb, Wage Earners and Clerical Workers" for the City time by the U.S. Department of Labor, for the immediately preceeding twelve month period as tl published. (3) If the Grantee does not elect to submit proposed changes from time to time, then the aggregate amount of any increase to which the Grantee would have been entitled had the electi been made may be carried forward to a future ye but the Grantee's right to any such increase sh be waived permanently if not implemented by the Grantee in an increase within forty-eight month from the date of publication of the said Consun Price Index for the quarter which is carried forward. I San Diego, California as published from time to 1 2 3 4 (4) 111 no event may any increase pursuant to th subsection (b), including accumulated increases, exceed fifteen percent of the rate or charge existing at the time the increase is submitted. (5) 1:: said Consumer Price Index decreases from one year to the next, a Grantee shall, if it has elected to take advantage of a Consumer Price In increase, decrease its rates and charges by sixt ~I 5 6 7 8 9 10 11 l2 13 l4 I.5 l6 17 l8 l9 e e percenl: of the decrease of the Index. To the extent that a Grantee has not taken advantage of Consumer Price Index increases, the rights the Grantec! has to increase its rates through the cumu1al:ion of increases in said Index shall be reduced by the decrease in the Consumer Price Index. (c> If a Gi:antee submits an increase in its rates pursuant to subsection (b), the City Council may challenge thi increase within thirty days, on the basis of excessive subscriber complaint:;, or if the City Council determines, that Grantee is failing to meet FCC Technical Standards, is not properly providing service for its customers, or is not complying with its f:ranchise. If the City Council challenges increase pursuant to this subsection, the increase shall not become effective until a hearing is held on the matter and a decision rendered as provided in Section 5.28.170. section, the City ma:T, at its election, at any time upon ten days prior notice to the Grantee, recapture the rate-making authority possessed 1)y the City under Section 5.28.170 and cancel the use by Grantee of the alternative procedures of thi section. In that event the rates in effect on the date of sai notice shall be the effective rates. (d) Notwithstanding any other provision of this (e) The rates for basic cable television service, including converter :rental, shall be $10.95 per month, additional outlet $4.00 per month for Carlsbad Cablevision, an $10.50 per month, additional outlet $3.50 per month for La Cos Cable TV. These rat~:s shall be considered the base rates and the July 1982 indicies of the Consumer Price Index shall be I 2o 21 22 23 24 25 26 27 28 considered as the price base for calculating the percentage ~ changes from one yea:? to the next. (f) Charge:; for FM service, installation, reconnectil or relocation, conve.rter deposit and transfer of service may b established by Grantee. Grantee shall give notice of any proposed increase in these charges as provided in subsection (b)(l) and such increase may be challenged by the City Council as provided in subsection (c> of this section. SECTION 2: Effective on the effective date of this Ordinance, Reso1utio:i Nos. 5220 and 5221 fixing rates and charges for cable television service shall be rescinded. Rate and charges for thos? portions of the City served by La Costa Community Antenna System, Inc. and Carlsbad Cablevision shall those fixed by this Ordinance. 2. ~. 1 2 3 4 5 6 7 8 9 lo 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 @ 0 EFFECTIVE DATE: This Ordinance shall be effective thirty days after its adoption, and the City Clerk shall certif to the adoption of this Ordinance and cause it to be published at least once in the Carlsbad Journal within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council held on the day of 1982, and thereafter PASSED AND ADOPTED AT A REGULAR MEETING OF SAID Counci held on the day of , 1982, by the following vote, to wit: AYES: NOES: ABSENT! RONALD C. PACKARD, Mayor I ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 3. e w AGREEMENT AN AGREEMENT by Carlsbad Cablevision, A Limited Partnership and La Costa Community Antenna System, Inc. ("Operators") and the City of Carlsbad, A Municipal Corporation ("City") for community based CATV programming. RECITALS WHEREAS, Operators in a memorandum dated February 8, 1982 offered to give 1% of their basic cable service revenues to a non profit foundation to provide community based CATV programing provided City acted favorabley on a rate deregulation ordinance; and \ WHEREAS, the City at a public meeting held March 24, 1982, by motion duly made and seconded directed preparation of an ordinance amending the CarPslaad Municipal Code where by the Operators rates and charges to subscribers for basic service of delivery of CATV signals would be deregulated; and WHEREAS, one of the consideratioons for the action by City was the offer by the Operators; and WHEREAS, the City has requested that Operators confirm its commitment to form the Foundation and participate (financially and otherwise) therein by making this Agreement; W v NOW, THEREFORE, Operators agree as follows: 1. That all of the above recitals are true and shall be a part of this Agreement. 2. That Grantee hereby agrees to pay to the Foundation one percent of Grantee's annual gross revenues derived from its basic cable television service, such amounts to be paid quarterly commenicing September, 1982, 3. Operators will take all steps necessary to establish a "Carlsbad Foundation for Community Access Television", The Foundatioon will be governed by a board of trustees approved by the City Council. 4. The Foundation shall be structured so as to permit funds to be received from any legitimate source for the propagation of community access programing in Carlsbad 5. Operators agree to pay the Foundation one percent of Operators basic cable television service revenues beginning June 1, 1982, Payments will be made quarterly with the first payment due on September, 1982, Any payments due prior to formation of the Foundation shall be placed in an interest bearing trust account by Operators to be held for and paid over to the Foundation when it is formed, 6. Operators shall submit the bylaws and operating rules of the Foundation to the City Council for approval. 0 w 7, The Foundation shall be organized and maintained in form and substance reasonably satisifactory to the City and the Operators. DATE : I 9 982 APPROVED AS TO FORM: Carlsbad Cablevision, A Limited Partnership By: Second IR-Daniels Corp. Vincent F.'Biondo, Jr, By: City Attorney Its . President La Costa Community Antenna System, Inc. By: City of Carlsbad By: '1 2 3 4 5 6 7 8 g lo l1 a 12 4 .$ i l3 55 o, O' ao3z u)' l4 2 fn GZZ~? 15 *G i i. fa 2' 86 l6 yjZ2s 17 z,o y aa wu =-I- a. u i 0 1811 19 20 0 w RESOLUTION NO.. 6841 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AGREEKENT BETWEEN THE CITY OF' CARLSBAD AND CARLSBAD SYSTEKS FOR COMMUNITY BASED CATV PROGRAMING CAELEVISION AND LA COSTA COMMUNITY ANTENNA - --- The City Council of the city of Carlsbad, California, does hereby resolve as follows: ! 1. That certafr, agreement between the city o€ Carlsb and Carlsbad Cablevision and La Costa Community Antenna System for community based CATV programing, a copy of which is on fil with the City Clerk, and incorporated herein by reference, is hereby approved. 2, The Mayor of the city of Carlsbad is hereby authorized and directed to execute said agreement for and on I ' behalf of the city of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the city of Carlsbad, held on the day of , 1982, by the following vote, tl wit: I I AYES : NOES : 1 I/ I 22 23 ABSTAIN: 24 25 26 27 28 RONALD C. PACKARD, Mayoi 1 I I ATTEST: ALETHA L, RAUTENKRANZ, City Clerk (SEAL) a, 9 0 e MEMORANDUM TO: The Mayor and Members of City Council of the City of Carlsbad; Frank Aleshire, City Manager; Roger Greer, Director of Utilities and Maintenance; Vincent Biondc FROM: DATE : April 5, 1982 RE: Revisions for proposed ordinance of March 26th. Attached please find suggested revisions to the ordinance submitted by the City Attorney which we wish to have introduced by the Carlsbad City Council at its regularly scheduled meeting of April 6, 1982. We believe that this ordinance is in keeping with action taken by the City Council at its meeting of March 23, 1982. Council directed an ordinance to be drawn in cooperation with the City Attorney's office and the cable operators. made available for review by us and our legal counsel on Monday, March 29th. After some discussion and consideration of the proposed draft, we find it appropriate for you to consider the changes which are included in the draft attached to this memo. You will note that the only changes which we have specified affect paragraphs (c), (d), and (e). We believe that these changes more specifically and appropriately follow the action taken by the Council on March 23rd and most assuredly address the spirit of this action. A draft was prepared by the City Attorney and In the matter relating to the separate agreement for funds to the agreement executed before the Council on Tuesday night assuming that the attached ordinance is introduced and set in motion. We trust you will all have an opportunity to review and understand this material and concur with us as to the action to be taken. should have any questions, please let us know. We look forward to being with you Tuesday evening. attention and consideration in this matter. community program foundation", we wi 11 be prepared to have this II If anyone Thank you for your 5 0 *. * ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDIVG TITLE 5, CHAPTER TION OF SECTION 5.28.175 TO PROVIDE AN ALTERNATIVE PROCEDURE FOR FIXING RATES FOR CABLE TELEVISION 5.28 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDI- SERVICE AND INCREASING SAID RATES -- The City Council of the City of Carlsbad, California does ordain as follows: SECTION 1: That Title 5, Chapter 5.28 of the Carlsbad Municipal Code is amended by the addition of Section 5.28.175 to read as follows: 5.28.175 Rates - Alternative Procedure. (a) The provisions of this section shall be an alternative to Section 5.28.170. Changes in rates and changes for basic service may be made pursuant to this section or Section 5.28.170 at the option of Grantee. Grantee may adjust its rates and charges not more than once in any twelve month period as follows: (b) Subject to the provisions of this subsection (1) Grantee shall submit proposed increases to the Ci1.y Manager for review at lease sixty days prior to Grantee's proposed effective date for the new rates. Grantee shall notify its subscribers of the proposed increases at least fifty days prior to said date. (2) Grantee shall not submit any rake change increase which exceeds sixty percent of the increase in the cost of living, as defined by the Consumer Price Index (All Items Index) "For Urban Wage Earners and Clerical Workers" for the City of San Diego, California as published from time to time by the U.S. Department of Labor, for the immediately preceeding twelve month period as thus published. (3) If the Grantee does not elect to submit proposed changes from t irne to time, then the agqrrgate amount of any increase to whlch the <. 0 w Grantee would have been entitled had the elec- tion been made may be carried forward to a future year but the Grantee's right to any such increase shall be waived permanently if not implemented by the Grantee in an increase with- in forty-eight months from the date of publi- the quarter which is carried forward. (4) In no event may any increase pursuant to this subsection (b), including accumulated increases, exceed fifteen percent of the rate or charge existing at, the time the increase is submitted. (5) If said Consumer Price Index decreases from one year to the next, a Grantee shall, if it has electxed to take advantage of a Consumer Price Index increase, decrease its rates and charges by sixty percent of the decrease of the Index. To the extent that a Grantee has not taken advantage of Consumer Price Index increases, the rights the Grantee has to in- crease its rates through the cumulation of increases in said Index shall be reduced by cation of the said Consumer Price Indm for the decrease in the Consumer Price Index. (c) If a Grantee submits an increase in its rates pursuant. to subsection (b), the City Council may challenge this increase within thirty days, on the basis that the Grantee and/or the City have received an excessive number of +u.&c-.g subscriber complaints regarding Grantee's service, or if the City Council determines, that to a - extent a Grantee is failing to meet FCC Technical Standards, is not properly provid- ing service for its customers, or is not complying wikh its franchise. If the City Council challenges an increase pursuant to this subsection, the increase shall not: become effective until a hearing is held on such matters and a decision rendered in accordance with the hearing procedures provided in Section 5.28.170. (d) Notwithstanding any other provisions of this section, the City, at such time as the City Council, after notice to any affected Grantee and after a public hearing, finds and determines by Resolution or Ordinance that such rat,e-making aukhority is necessary in the best interests of the City and its residents, may reinstate the rate-making authority possessed by the City under Section 5.28.170 and cancel the use by Grantee of the a1t;ernative procedures of this section. In the event the rates in effect on the date of said Resolution or Ordinance shall be the effeckive rates. .. 2. 0 (e) The rates for basic cable television service, including converter rental, shall be $10.95 per month, addi- tional outlet $4.00 per month for Carlsbad Cablevision, and $10.50 per month, additional outlet $3.50 per month for La Costa Cable TV. These rates shall be considered the base rates and the December 1981 indicies of the Consumer Price Index shall be considered as the price base for calculating the percentage changes from one year to the next. (f) Charges for FM service, installation, recon- nection or relocation, converter deposit and transfer of service may be established by Grantee. Grantee shall give notice of any proposed increase in these charges as provided in subsection (b)(l) and such increase may be challenged by the City Council as provided in subsection (c) of this section. SECTION 2: Effective on the effective date of this Ordinance, Resolution Nos, 5220 and 5221 fixing rates and charges for cable television service shall re rescinded. Rates and charges for those portions of the City served by La Costa Community Antenna System, Inc. and Carlsbad Cablevision shall be those fixed by this Ordinance. EFFECTIVE DATE: This Ordinance shall be effective thirty days after its adoption, and the City CLerk shall certify to the adoption of this Ordinance and cause it to be published at: least once in the Carlsbad Journal within fifteen days after it,s adoption. INTRODUCED AND FIRST READ at a regular meeting of the 9 - day of -- Carlsbad City Council held on the 1982, and thereafter PASSED AND ADOPTED AT A REGULAT MEETING OF SAID Council held on the day of , 1982, by the following vote, to wit: 3. -* >. e 0 AYES: NOES: ABSENT: - --- RONALD C. PACKARD, Mayor ATTEST: --- ALETHA L. RAUTENKRANnCity Clerk (SEAL) 4. *I ,. e w AGREEMENT AN AGREEMENT by Carlsbad Cablevision, A Limited Partner- ship and La Costa Community Antenna System, Inc. ("Operators") and the City of Carlsbad, A Municipal Corporation ("City'l) for community based CATV programming. RECITALS WHEREAS, Operators in a memorandum dated February 8, 1982 offered to pay 1% of their basic cable service revenues to a t o p r o v i de c o mm u n i t y based CATV programming provided City acted favorably on a rate deregulat,ion ordinance; and no n - p r o f i t f o u n d a t i on ( " F o u n d a t i on 'I ) WHEREAS, the City at a public meeting held March 24, 1982, by motion duly made and seconded directed prepatat-ion of an ordinance amending the Carlsbad Municipal Code where by the Operators rates and charges to subscribers for basic service of delivery of CATV signals would be deregulated; and WHEREAS, one of the considerations for the action by City was the offer by the Operators; and WHEREAS, the City has requested that, Operators confirrn its commitment to form t,he Foundation and participate (finan- cially and otherwise) therein by making this Agreement,; NOW, THEREFORE, Operators agree as follows: r( * W h .. 1. That all of the above recitals are true and shall be a part of this Agreement. 2. That Grantee hereby agrees to pay to the Foundation one percent of Grantee's annual gross revenues derived from its basic cable television service within the City of Carlsbad, such amounts to be paid quarterly commencing September, 1982. 3. Operators will take all steps necessary to establish a "Carlsbad Foundation for Community Access Television". The Foundation will be governed by a board of trustees approved by the City Council. 4. The Foundation shall be structured so as to permit funds to be received from any legitimate source for the propaga- tion of community access programming in Carlsbad. 5. Operators agree to pay the Foundation one percent of Grantee's annual gross revenues derived from its basic cable television service within the City of Carlsbad received from and after June 1, 1982. Payments will be made quarterly with the first, payment due on September, 1982. Any payments due prior to format,ion of the Foundation shall be placed in an interest bearing trust account by Operators to be held for and paid over to the Foundation when it is formed. 6. Operators shall submit the bylaws and operating rules of the Foundation to the City Council for approval. -2- c+ )1 e 6. - *- c 7. The Foundation shall be organized and maintained in form and substance reasonably satisfactory to the City and the Operators. 8. An Operator may elect to cancel this agreement and Lerminate its obligation to pay a percentage of its revenues from basic cable television service to the Foundation in the event the City rescinds or terminates the right of an Operator to place into effect rate increases under the provisions of Section 5.28.175 of Title 5, Chapter 5.28 of the Carlsbad Municipal Code. DATE: , 1982. APPROVED AS TO FORM: Carlsbad Cablevision, A Limited Partnership By: Second IS-Daniels Corp. ----- _I_----- - Vincent F. Biondo, Jr. By: P r e s i d E: n t City At-torney Its La Costa Community Antenna System, Inc. -- By: City of Carlsbad By: -3-