HomeMy WebLinkAbout1993-140-09/21/1993-CABLE TELEVISION COLUMBINE CABLEVISION FRANCHISE OPTION 1
RESOLUTION 93-140
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CONCERNING REGULATION OF THE RATES FOR THE BASIC
SERVICE TIER AND ASSOCIATED EQUIPMENT OF THE
CABLE SYSTEM OF COLUMBINE CABLEVISION
WHEREAS, on October 5, 1992, the Cable Television Consumer Protection
Competition Act of 1992 was enacted into federal law ("the 1992 Cable Act") ; and
WHEREAS, the 1992 Cable Act authorizes local cable tv franchising
authorities to regulate the rates for the basic service tier and associated
equipment of cable systems of cable operators within the jurisdiction of the
franchising authority if the franchising authority has been certified to do so
by the Federal Communications Commission ("the FCC") ; and
WHEREAS, the FCC has promulgated, as authorized by the 1992 Cable Act,
rules and regulations for the certification of local franchising authorities to
regulate rates and for the regulation of the rates themselves ("the FCC Rules") ;
and
WHEREAS, the FCC Rules provide that if a cable operator's franchising
authority is certified by the FCC to regulate rates, the cable operator cannot
raise its rates for the basic service tier and associated equipment of its cable
system above certain benchmark rates set by the FCC Rules without establishing
its right to charge higher rates through an administrative process called a
"cost-of-service showing"; and
WHEREAS, in order to be certified to regulate rates, the 1992 Cable Act and
the FCC Rules require the City to make application to the FCC for such
certification; and
WHEREAS, the City's application must certify, among other things, that the
cable system being regulated is not subject to effective competition; and
WHEREAS, there is currently operating within the City of Fort Collins one
cable system owned and operated by The World Company, doing business as Columbine
CableVision, ("Columbine") ; and
WHEREAS, as defined by the 1992 Cable Act and the FCC Rules, Columbine's
cable system is not subject to effective competition; and
WHEREAS, the FCC Rules currently impose a rate freeze that prohibits
Columbine from raising the rates for its basic service tier and associated
equipment until November 15, 1993, at which time the FCC rate freeze will expire;
and
WHEREAS, if the City is not certified by the FCC to regulate rates as of
November 15, 1993, it is likely that Columbine will raise the current rates of
its basic service tier and associated equipment; and
WHEREAS, if the City is certified to regulate rates as of November 15,
1993, Columbine will not be able to raise its rates without a cost-of-service
showing; and
WHEREAS, Council has considered the advantages and disadvantages involved
in the City's regulation of Columbine's rates for the basic service tier and
associated equipment of its cable system, as well as the Cable TV Board's
recommendation not to regulate rates, and, after having done so, has determined
that, at this time, such rate regulation is not in the best interests of the City
and is not necessary for the protection of the welfare of the citizens of Fort
Collins; and
WHEREAS, although the Council has determined that such rate regulation is
not needed at this time, Council desires that Columbine's rates should be
periodically monitored by the City Manager to determine whether Columbine's rates
for its basic service tier and associated equipment have gone above the FCC
benchmark rates; and
WHEREAS, in the event that any of these rates do exceed the FCC benchmark
rate, that the City Manager advise Council of this fact so that Council can take
such action as it deems appropriate, which may include making application to the
FCC for certification to regulate the rates of Columbine.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
that the Council finds that at this time it is not in the best interests of the
City and is not necessary for the protection of the welfare of the citizens of
Fort Collins for the City to apply to the FCC for rate regulation authority, but
that the City Manager is hereby directed to periodically monitor Columbine's
rates for its basic service tier and associated equipment to determine whether
such rates have exceeded the FCC benchmark rates and, in the event that any of
such rates do exceed the benchmark, to advise Council of this fact so that
Council can take such action that it deems appropriate, which may include making
application to the FCC for certification to regulate rates.
Passed and adopted at a regular meeting of the Council of the City of Fort
Collins held this 21st day of September, A.D. 1993.
A TEST: mayor
City Clerk