HomeMy WebLinkAbout2469RESOLUTION NO. 2469
A RESOLUTION directing cable operators to keep an accurate accounting of receipt
of payments made pursuant to a disputed rate and to provide additional information
regarding their rate applications.
WHEREAS, the City of Bremerton (hereinafter the "City")is a franchising authority
with the legal authority to adopt, and the personnel to administer, regulations with respect
to the Basic Service Rates and Charges of any cable television system operating in the City,
including, without limitation, the systems currently being operated by TCI Cablevision of
Washington, Inc. (hereinafter "TCI")and Falcon Video Communications, L.P. (hereinafter
"Falcon") pursuant to Ordinance Nos. 3975 and 3981; and
WHEREAS, in accordance with FCC rules, the City initiated review of basic cable
service rates and associated equipment and installation charges of TCI and Falcon's
franchise areas by requesting that TCI and Falcon submit FCC Form 393 with necessary
attachments; and
WHEREAS, the City, pursuant .to FCC rules, is charged with maldng a determination
if TCI and Falcon's existing rates are within the FCC's permitted basic service tier charge
or actual cost of equipment and installation, as defined in §§ 76.922 and 76.923 of the FCC
rules; and
WHEREAS, the FCC has issued the Second Order on Reconsideration, Fourth Report
and Order. and Fifth Notice of Proposed Rulemaking, MM Docket No. 92-266, FCC 94-38
(released March 30, 1994) thereby changing the benchmark formulae used by TCI and
Falcon in determining cable rates on FCC Form 393 yet, to date, the FCC has not provided
direction on how to recalculate rates using new benchmark data, and
WHEREAS, the maximum per channel rate under FCC rules for Falcon and TCI's
basic service tier cannot be determined due to the lack of information and difficulties in
determining equipment and installation costs; and
WHEREAS, pursuant to §76.933(c) of the FCC's rules, the City should enter an
accounting order requiring Falcon and TCI to keep an accurate account of all amounts
received in the franchise area by reason of such Basic Tier Rate, and on whose behalf such
amounts were paid, until such time as the City has fully reviewed the proposed rates; now,
therefore,
BE IT RESOLVED, by the City Council of the City of Bremerton:
1. That the City is not able to determine, based on the information provided by
Falcon and TCI to date, whether Falcon and TCI's Basic Tier Rate is within the FCC's
permitted basic service tier rate or whether the rates charged for equipment and installation
are within the FCC's allowable methodology under § 76.923 of FCC rules. Therefore,
Falcon and TCI's Basic Tier Rams and equipment and installation rates are "rates in issue'
within the meaning of FCC Rule §76.933(c). Falcon and TCI are therefore ordered to keep
an accurate account of all amounts received in the franchise area by reason of such Basic
CABLE.JIM - 6/6/94
Tier Rates and equipment and installation rates, and on whose behalf such
amounts were paid. The Basic Tier Rates and rates for equipment and 'installation shall be
subject to refunds to subscribers if the City at any future time issues a written decision
disapproving or adjusting such rates based on information to be provided by TCI and
Falcon.
2. That, upon request, Falcon and TCI shall promptly provide additional information
to fully support their rate applications including source documentation to support
assumptions, formulae and financial data used in determining basic tier rates and cost of
equipment and installation used in delivering basic tier services.
3. That the City recognizes that the rates established on FCC Form 393 may be
reduced further by the new benchmark formulae established under the FCC's Second Order
of Reconsideration and therefore reserves the right to order future reductions of the basic
tier rates.
PASSED by the City Council of the City of Bremerton this 15th day of June, 1994.
SHERRIL HUFF-MENEES
Council President