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HomeMy WebLinkAboutResolution No. 93-40 RESOLUTION N0. R93-40 A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS, GALVESTON/HARRIS COUNTIES, TO PROVIDE FOR THE REGULATION OF BASIC SERVICE TIER RATES AND RELATED EQUIPMENT, INSTALLATION AND SERVICE CHARGES OF ANY CABLE TELEVISION SYSTEM OPERATING IN THE CITY OF FRIENDSWOOD. * * * * * * � * WHEREAS, ON October 5, 1992, Congress enacted the Cable Television Consumer Protection and Competition Act of 1992 which, among other things, provided that the basic service tier rates, and the charges for related equipment, installation and services, of a cable television system (hereinafter, "Basic Service Rates and Charges") shall be subject to regulation by a franchising authority in accordance with regulations prescribed by the Federal Communications Commission (hereinafter the "FCC") ; and WHEREAS, on April l, 1993, the FCC prescribed such regulations in the Report and Order, In the Matter of Implementation of Sections of Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation, MM Docket 92-266, FCC 93-Z77 (released May 3, 1993) (hereinafter the "FCC Rate Regnlations") ; and WHEREAS, the City of Friendswood (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 system currently being operated by TCI TKR of Houston, Inc. (hereinafter "the Company") pursuant to Ordinance 79/18, City of Friendswood - The Meca Corporation CATV Franchise Ordinance, (hereinafter the "Franchise") ; and WHEREAS, the City desires to regulate the Basic Service Rates and Charges of the Company and any other cable television system operating in the City and shall do so in accordance with the FCC Rate Regulations, notwithstanding any different or inconsistent provisions in the Franchise. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOIZ AND CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS: Section 1. The City will follow the FCC Rate Regulations in its initial and any subsequent regulation of Basic Service Rates and Charges of any Cable television system operating in the jurisdiction of the City, notwithstanding any different or inconsistent provisions in the Franchise. Section 2. In connection with such regulation, the City will ensure a reasonable opportunity for consideration of the views of interested parties during the regularly scheduled City Council meetings that will occur during the review time frames described in Section 76.933 of the FCC regulations. Section 3. The City may request additional information from the Company during the rate regulation process described in Section 76.933 of the FCC regulations, and the operator will have 20 days after receipt of such information requests to respond to the City. Section 4. The Company will be required to place a notification of any and all rate increases subject to regulation in the local newspapers. Section 5. The City Manager, or his or her designee, is authorized to execute on behalf of the City and file with the FCC such certification forms or other instruments as are now or may hereafter be required by the FCC Rate Regulations in order to enable the City to regulate Basic Service Rates and Charges. PASSED, APPROVED, AND RESOLVED this the 4th day of October 1993. ���� � �� Mayor Pro Tem Kitt Hajecate City of Friendswood ATTEST: . � Deloris McKenzi , CM City Secretary Resolution 93-40 Page 2 RESOLUTIONS October 4, 1993 Resolution R93-37: Resolution to apply for partial funding through the TxDOT Traffic Enhancement Program (TEP) to construct bicycle lanes on Sunset Drive and bridge over Coward's Creek. Jimmy Thompson has prepared the summary of the application to be submitted for funding of bicycle paths on Sunset Drive. This project will use the $25,000 budgeted for the path as 20 percent matching for a grant to not only construct the paths, but also build a pedestrian/bicycle bridge over Coward's Creek. This resolution authorizes the submission of the grant application. Resolution R93-38: Resolution to apply for partial funding through the Traffic Enhancement Program to construct bicycle lanes along Winding Way and pedestrian/bicycle bridge across Coward's Creek to Stevenson Park. This is the second of the two grants to be submitted for ISTEA money. This project will construct bicycle lanes along Winding Way through Stevenson Park to Cedarwood Drive, with a pedestrian/bicycle bridge across Coward's Creek. There has been a question about whether Arena and Stevenson Parks join. Technically, they do not, although the CCDD has working easements along the creek that would connect, if the city could use them. In this case, however, the plan is to cross Coward's Creek in the old Winding Way roadway. This will allow bicyclists and walkers to use the roadway for access. Resolution R93-39: Resolution submitting name of nominee for the Board of Directors of the Galveston Central Appraisal District. At the last Galveston County Mayors and Councilmembers meeting, the group discussed putting forth one city elected official for the cities to rally around to get elected to the Board of the Galveston Central Appraisal District. The GCMCA nominated Mayor Newman to be their candidate. Later, at a meeting on September 27 at Texas City, Mayor Newman and I met with other city officials on the same subject. Although at least one city, Texas City, has already stated they will support their own candidate with the Texas City ISD, it is still believed that with pooled votes from all the other cities, plus some from either the school districts or Galveston County, Mayor Newman can be elected. The first step is to ensure Mayor Newman is on the official ballot, and this resolution is prepared to made that nomination. We are again enclosing for your convenience, a packet of inrormation from the Appraisal District showing the vote distribution. It takes at least 834 votes to get elected. Those entities with more votes available than that can cast their votes from multiple candidates, and this is what will be required with Texas City departing so early from the ranks. Resolution R93-40: Resolution to provide for the regulation of basic service tier rates and related equipment, installation, and service charges of any cable television system operating the City of Friendswood. I have attended several Cable TV seminars put on by TML to keep up with developments on this and the refranchising issue. Concurrent, in our case with the refranchising process that I described in my City Manager's report, is the need to decide whether or not to take jurisdiction for regulation of the basic service tiers rates and rates charged for related equipment, installation and services provided by TCI. John Olson and I have reviewed the issue extensively, as the regulations have been developing from the FCC. We believe the city should place itself in the position of regulating for two reasons: 1. Politically, cities have griped for many years, since 1984, that elected officials have no control over one of the monopoly utilities in the city. Cable nor the FCC officials yet acknowledge that cable is a utility, but the Congress does now recognize that while cable companies are not subject to effective competition in a community, they are subject to local rate regulation if the local entity chooses to do so. Effective competition does have definition, and it has been determined that TCI does not have effective competition and is therefore subject to regulation. The criteria for effective competition is outlined in the handout included in this packet. 2. Even though only basic tier rates and related equipment and services are covered, it will serve notice to the cable companies that the city is taking responsibility where it is given. The FCC has set out a fairly easy process of seeking certification from the FCC that the city has the authority and ability to regulate. Further, the process calls for the cable company to provide certain information on a specified form for the city to use in the assessment of whether the current rates are fairly Resolutions Page 2 `, - _ _. administered. Once that determination is made, the process for future rate increases is fairly straightforward and should not take a whole lot of expense or effort. The form calls for the cable company to provide expense data from their company, and we may have to let an outside consultant verify the data, but after that there should not be too many problems. Currently, the FCC has a freeze on rate increases by all cable companies in the nation. That freeze expires November 15. In order to meet the certification requirements, the city must submit its application (Form 328, which is attached) to the FCC by October 12. If after 30 days have elapsed, the FCC has not notified us of an objection by TCI to our application, the city will be certified to regulate the basic tier rates. Once the 30 days have passed, we will then notify TCI. They will then have 30 days to justify, on the form mentioned earlier, their existing rate, relative to a benchmark rate the FCC has developed for that purpose. If TCI rates are higher than the benchmark rate, the rate can actually be lowered to that amount or 10 percent less than the current rate, whichever is higher. (It is my opinion that TCI has already adjusted their rates to at or near the benchmark rate, but that remains to be seen.) After that, rate increases will be based on CPI data. We recommend approval of the resolution setting out the regulations for approving rates. The resolution states the city will follow the regulations set out by the FCC. It is a very general statement and can be supplemented when needed with additional procedures. We also recommend authorization to submit the application for certification to the FCC. REC Attachments 1. Resolution R93-37 2. Resolution R93-38 3. Resolution R93-39 Letter dated 9/20/93 from Guy Emanis, chief appraiser, Galveston Central Appraisal District. Letter dated 9/23/93 from Veta Winick, president GCMCA. Letter dated 9/28/93 from Guy Emanis, chief appraiser, Galveston Central Appraisal District. Letter dated 9/29/93 from Veta Winick, president GCMCA. 4. Resolution R93-40 FCC Form 328. Rate Regulation - Basic Questions and Answers for Municipal Officials. Article from THE WALL STREET JOURNAL. Information from Connie Cannady, Reed-Stowe & Co. Information and notes from TrII, cable seminar. Resolutions Page 3 !'�,iv0']7!1 77�/vewil�7 /Anc��rrn n...-,.t,,._. �. 7 n(1Z