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Home My WebLink About1987-05-12; City Council; 8999; CABLE TV RATE INCREASEI c. P- v * a 4 a, .rl w 2 3 a, u k u g a, G B a3 hl I h I 4 m .. z 0 + 0 4 4 5 z 3 0 0 - :,2 -, L s ciy OF CARLSBAD - AGEN~ BILL AB#- TITLE: DEPT. HD.. MTG. 5/12/87 CABLE TV RATE INCREASE CITY ATTY DEPT. U/M CITY MGR. RECOMMENDED ACTION: This agenda bill intended for information only. ITEM EXPLANATION: Daniel's Cablevision has recently raised the price of the basic services from $13.95 to $16.95. This increase added four (4) new channels to the Carlsbad Village area and six (6) new channels to the La Costa area and eliminates the charge for FM music service. It also reduced the cost for additional outiets from $4.00 to $3.50 each. when it went from $10.95 to $13.95 a month. the following criteria: A. Rates no longer comparable with the market; B. Normal growth for expansion and reconstruction of system; C. A $3,000,000 repair program to place unprotected cable into conduit; D. Upgrade and increa existing service. The rate increases are done under the deregulating authorit of the State law and the Federal Cable Communication Act of 1984. The table below provides basic rate comparisons for the North County: The basic rate was last changed in April of 1985 The $3.00 increase was based on Daniels* Times Mirror** Cox Cable*** Cablevis ion (Dimension Cable) San Diego Basic Service (including taxes) $16.95 $16.88 $17.09 # of Basic Channels 29 29 28 Additional Outlet $ 3.50 $ 3.95 $ 4.15 1 Pay Service (including taxes) $ 9.95 $13.95 $11.50 TOTAL COST $30.40 $34.78 $32.74 * Serves Carlsbad, Fallbrook, Lake San Marcos, Encinitas (East), ** Serves Vista, Oceanside, Escondido, Encinitas (West), Solana Beach (West) *** Serves Imperial Beach, San Diego, El Cajon, etc. Cable television has undergone a major transition over the past few years. Initially, cable television was regulated at the local level through the franchise process with technical standards set and enforced by the Federal Communications Commission. Local jurisdictions were at liberty to establish and control rates, channel coverage, franchising and re-franchising procedures, standards of service (as opposed to technical standards). Generally, cable was considered a utility and regulated at the local level. Over time and due to a great deal of effort by the cable industry, cable television was "deregulated" in 1984. additional entertainment services at a price. The cable industry Solana Beach (East), Del Mar. The argument set forth was that television is available to most citizens off-air and cable merely enhances the local signal and provides I * c @ a c - Page 2 of Agenda Bill f/ argues that many alternate means are available to meet the public's entertainment needs and that its industry does meet the requirements of competing in an open market place. The cable industry will point to individua. satellite ownership, VCR's and video stores and the fact that we are in an area served by all three networks, PBS and local programs from the San Diego market. Cable service is not required to receive these services, although, Los Angeles programming and the other services such as religious programs, financial programs (FNW), sports programming (ESPN) and many other programs that are "enhancements" that can't be provided by local antennas and should be charged for by the cable company. The point to be made is that all of the services provided by cable television can be provided by an alternate medium at a reasonable cost. The 1984 Act, although described as deregulation, only partially deregulated the cable television industry. Deregulation has occurred over the rates, limits franchise fees to 5% (Carlsbad only charges 3%) and limits the requirements that may be imposed during refranchising (precludes advertising by competative bid other than for cause). Areas that the city continues to regulate relate to equipment requirements for public access, governmental channel requirements and equal opportunity employment requirements. The city does not restrict or regulate any rooftop television antennas. It does regulate satellite dishes, only as they relate to zoning (setbacks, visible from public areas, etc.). Many homeowner associations include the prohibition of rooftop antennas through the CCSrR's of the association. These CC&R's are not enforced by the city although the city does review and approve the CCSrR's initially through the planning process. In summary, the 1984 deregulation act preempts city regulation of cable television rates and established a funding source for a state cable foundation. FISCAL IMPACT The city will realize an increase of $1,400.00 a month due to the $3.00 increase for basic service by Daniels Cablevision. Over a period of twelve months, the city will realize an increase of $16,800 in franchise fees. This amount is based on the 3% franchise fee paid to the city by Daniels Cablevision for each basic service hook-up. The franchise fee is collected to offset the overhead costs connected with city staff lending administrative and technical support to the Cable TV Foundation. c cli May 12, 1987 0 .r b* 9 J- To: Carlsbad City Council From: Tom Erwin 7703 Garboso Place Carlsbad, CA. 92009 Reference: Basic Cable TV Fees. Thank you for considering this issue tonight. I believe everyone agrees that Congress is the only one who can solve this problem, and Congress will only respond if there is a large outcry from the citizens of this Country. I am therefore asking this Council to consider a "CARLSBAD RESOLUTION", generic in nature, that could also be used by other cities, and municipalities, to make their citizens aware of the problem and how to solve it. If other communities show an interest in this, we have the opportunity to turn this around, and gain some Public control over these runaway monopolies, who have inadvertently been given a "license to steal". Respectfully, %L