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Home My WebLink About1982-04-20; City Council; 6935-2; Carlsbad Cable TV offer percentage basic service.. Ls g ar e 1cL e 2 0 F 0 4 $ z 3 0 0 4- CilObF CARLSBAD - AGENDniLL AB# 6935-2 TITLE: DEPT. HD.- MTG, 4-20-82 CABLE TV CITY ATTY? DEPT. CA CITY MGR.- RECOMMENDED ACTION: Adopt Ordinance No. 6065 attached as introduced at the April 6, Cablevision and La Costa Cable TV to give one percent of their basic cable service revenues to a foundation for community based programing, your action is to approve Resolution No. 6841 approving an agreement in that regard. The agreement provides that the Operator may choose to terminate the agreement if the City rescinds or terminates the right of the Operator to put the rate increases specified in the new ordinance into effect. 1982 meeting. If Council wishes to accept the offer of Carlsbad ITEM EXPLANATION: At the April 6, 1982 meeting, the council introduced Ordinance No. 6065 as amended at the meeting. The attached ordinance has been modified to reflect those amendments. The council continued consideration of the agreement because certain amendments requested by the cable operators had not yet been made. Those amendments have now been made. The agreement memoralizing the cable companies' offer to give one percent of their gross revenue to a foundation for community based programming is attached along with Resolution No. 6841 approving the agreement. EXHIBITS: Ordinance No. 6065 Resolution No. 6841 Agreement 1 2 r 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 * w ORDINANCE NO. 6065 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING TITLE 5, CHAPTER 5.28 OF THE CARLSRAD MUNICIPAL CODE BY THE ADDITIOH OF SECTIOE 5.28.175 TO PROVIDE AN ALTERNATIVE PROCEDURE FOR FIXING RATES FOR CABLE TELEVISIOW SERVICE ANI) 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 t read as follows: 5.28.175 Rates - Alternative Procedure. (a> The provisions of this section shzll be an alternative to Section 5.28.170. Changes in rates and charges 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: for basic service may be made pursuant to this section or (b) Subject to the provisions of this subsection (1) Grantee shall submit proposed increases to the City Manager for review at lease sixty days prior to Grantee's proposed effective date for- ti new rates. Grantee shall notify its subscribers the proposed increases at least fifty days prior to said date. (2) Grantee shall not submit any rate change increase which exceeds sixty percent of the increase in the cost of living, as defined by th Consumer Price Index (All 'items Index) "For Urba Wage Earners and Clerical Workers" for the City San Diego, California as published from time to time by the U.S. Department of Labor, for the immediately preceeding twelve month period as tf published. (3) If the Grantee does not elect to subnit proposed changes from time to time, then the aggregate zmount 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 Consum Price Index for the quarter which is carried forward. I 1 2 3 4 5 6 7 8 9 v lo x' l2 l3 3.4 l5 l6 " l8 I'1 2o 21 22 23 24 25 26 27 28 e v (4) In no event may any increase pursuant to thi 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 elected to take advantage of a Consumer Price Incj increase, decrease its rates and charges by sixtj 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 increase its rates through the cumulation of increases in said Index shall be reduced by the decrease in the Consumer Price Index. (c) If a Grantee subinits an increase in its rates pursuant to subsection (b), the City Council may challenge thi: increase within thirty days, on the basis of excessive subscril Council determines, that a Grantee is failing to meet FCC Technical Standards, is not properly providing service for its customers, or is not complying with its franchise. If the Cit: Council challenges an increase pursuant to this subsection, thc increase shall not become effective until a hearing is held on the matter and a decision rendered in accordance with the hear procedures of Section 5.28.170. section, the City may, at its election, at any time upon ten d prior notice to the Grantee, recapture the ratemaking authorit possessed by the City under Section 5.28.170 and cancel the us by Grantee of the alternative procedures of this section. In that event the rates in effect on the date of said notice shal be the effective rates. 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 rates shall be considered the base rates and July 1982 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, reconnecti or relocation, converter 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 provided in subsection (c) of this section. ' complaints regarding Grantee's service or rates, or if the Cit: (d) Notwithstanding any other provision of this (e) The rates for basic cable television service, SECTION 2: Effective on the effective date of this Ordinance, Resolution Nos. 5220 and 5221 fixing rates and chai 2. ' 2 3 ' 5 6 7 8 9 X0 11 12 13 l4 15 16 17 18 19 20 21 22 23 24 25 26 r 27 28 e m for cable television service shall be rescinded. Rates and charges for those portions of the City served by La Costa Community Antenna System, Inc. and Carlsbad Cablevision shall I those fixed by this Ordinance. EFFECTIVE DATE: This Ordinance shall be effective thirty days after its adoption, and th2 City Clerk shall certi to the adoption of this Ordinance and cause it to be published at least once in the Carlsbad Journal within fifteen days afte its adoption. INTRODIJCED AND FIRST READ at a regular meeting of the Carlsbad City Council held on the 6th day of April 1982, and thereafter PASSED AKD ADOPTED AT A REGULAR MEETING OF SAID Counc held on the 20th day of April , l?82, by the following vote, to wit: AYE s : NOES : Council Eeniber Lewis ABSENT: kUnU1 &Tlhf?T KdChin council krbers Packad, casler, hear I &A/&EL%( RONALD C. PACRARD, Mayo ATTEST: I LA ALETHA L. RAUTENKRANZ, city ClekIc (SEAL) 3. .. +- 1 2 3 4 5 6 7 8 7 lo I1 a 12 * m RE.SOLUTION NO. 6841 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT BETWEEN THE CITY OF CARLSBAC AED CARLSBAD CABLEVISION AND LA COSTA COMMUKITY ANTENNA SYSTEMS E'OR COMMUNITY BASED CATV PROGRAMING The City Council of the city of Carlsbad, California, does hereby resolve as follows: 1. That certain agreement between the city of CatlsSa and Carlsbad Cablevision and La Costa Community Antenna Systms for community based CATV programing, a copy of which is on file with the City Clerk, and incorporated herein by reference, is i 1 hereby approved. 2. The Mayor of the city of Carlsbad is hereby 19 20 21 22 23 24 25 26 27 28 I AYES t Council Menibers Packard, Casler, hear I NOES: Council Ekn-ber Lewis ABSENT: Council Member Kulchin ABSTAIN: -7 L F pA&L.&/<k4F ,Y74& RONALD C. PACKARD, Mayor ATTEST: (SEAL) i. c e7 r, . 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 E4 1982 offered to pay 1% of their basic cable service revenues to a non profit foundation to provide community based CATV programing provided City acted favorably on a rate deregulation ordinance; and WHEREAS, the City at a public meeting held March 23, 1982, by motion duly made and seconded directed preparation 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 confirm its commitment to form the Foundation and participate (financially and otherwise) therein by making this Agreement; b 4 * -1 J 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 each Operator hereby agrees to pay to the Foundation one percent of Operator'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 propagation of community access programing 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 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. e 3 1); e;) a 7, The Foundation shall be organized and maintained in form and substance reasonably satisfactory to the C.ity and the Operators. 8. Either Operator may elect-to cancel their participation in this agreement and terminate 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 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 : WRiL 21 I 1982 Carlsbad Cablevision, A Limited Partnership By: Second IR-Daniels -\ La Costa Community Antenna System, Inc. .2-,&7// ( Jfj%+q. Uf&h By : City of Carlsbad &A/Lfifl -By :