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Home My WebLink AboutMINUTES - 09261995 - SD8 TO:. BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator `< Costa September 19, 1995 County DATE: p l�fr+cdJN� �* SUBJECT: REFUND OF APPLICABLE PORTION OF BASIC RATES . BY VIACOM CABLEVISION SYSTEMS. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: At the conclusion of the hearing, ISSUE a written decision ordering Viacom Cablevision's Pinole system to refund to subscribers the portion of previously paid basic rates in excess of rates established by the FCC for the period from September 26, 1994 through September 26, 1995 and roll the basic service rates and applicable equipment back to those permitted. REQUIRE Viacom to submit a refund summary to the Cable TV Administrator and to refund the overcharges to subscribers in the form of a one-time-rebate within sixty (60) days. ACCEPT the Federal Communications Commission (FCC) Forms 393 submitted by Viacom Cablevision systems (Bay Point, Pinole) for the basic service rates effective September, 1993. FINANCIAL IMPACT: License fees paid on the overcharges collected will need to be reimbursed to Viacom systems by the County. The determined amount will be subtracted from Viacom's next .1995 franchise fee payment. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE P APPROVE OTHER NATURE(S):-fi-i�d.////,/;/e ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS / I HEREBY CERTIFY THAT THIS IS A TRUE _aL UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. - D ATTESTED � 4Z &C, Contact: Systems BAT HELOR.CLERK OF THE BO RD OF CC: Viacom Cablevision Systems SUPERVISORS AND COUNTY ADMINISTRATOR County Counsel Cable TV Administrator BY DEPUTY BACKGROUND: In December, 1992, the United States Congress passed the Cable Television Consumer Protection Competition Act of 1992 (Cable Act) which authorized local jurisdictions to regulate Cable Television rates of the Basic Tier and associated equipment. As authorized by the Cable Act, Contra Costa County applied for and was certified to regulate basic cable service and related equipment rates effective October 27, 1993. An amendment was adopted to the County's Cable Television Ordinance No. 93-55 on April 26, 1994 to include provision for enforcement of federal rate regulations for basic service. Following the adoption of this amendment, cable operators were notified that the County was certified to regulate basic service charges and had adopted the appropriate regulations to do so. Cable operators were asked to submit required FCC Forms. The Federal Communications Commission (FCC) adopted and revised rate regulations which gave cable operators until June 15, 1994 to submit FCC Form 393 to the County. Viacom Cablevision systems submitted their FCC Form 393s in June, 1994; the FCC Form 1200 (Pinole) in August, 1995 and their FCC Form 1205 (Pinole) in March, 1995. As authorized by the FCC rate regulations, the County tolled the review of those rates for ninety (90) days. In order to get clarification of the additional information provided by Viacom, the Board adopted a resolution (Accounting Order) to extend the review time until September 30, 1995. Staff reviewed all documents provided and met with Viacom representatives to review the FCC Form 393 in detail. Additional documentation was requested and provided. After completing the review, staff concluded that although a refund to the maximum permitted rate according to FCC Form 393 was in order for all Viacom Cablevision's Bay Point system subscribers, recent FCC rulings prevented the County from requiring Viacom to go back more than one year from a rate reduction order. In addition, staff reviewed Viacom Pinole systems FCC Form 1200 and FCC Form 1205s and found that Viacom was charging more than the permitted rates authorized by the FCC. In accordance with-Section 76.942 of the FCC rules Viacom Cablevision systems have been notified of a refund Pursuant to Section 76.936 of the FCC rules, a written decision in a ratemaking proceeding must be issued whenever the Board of Supervisors disapproves an initial rate for the basic service tier and associated equipment and requires a roll back to the maximum permitted rates, the text of such decision must be made available to the public. WRITTEN DECISION ORDERING REFUNDS TO SUBSCRIBERS Viacom Cablevision (Pinole) having previously submitted to the County FCC Form 1200 dated August 15, 1994 and FCC Form 1205 covering rates charged for the basic service tier and equipment in unincorporated areas of Crockett, Rodeo and San Pablo; and The above-named licensee having subsequently submitted to the County additional records supporting the figures stated in the Form 1200 and 1205; and The Cable TV Administrator, with assistance from the County Auditor's Office, having evaluated the Form 1200 and 1205. and all supporting. records submitted by Viacom and having prepared a report to the Board; and The County's time for review of the Form 1200 and 1205 having been previously extended by Board order and accounting order, as provided in Section 76 .933 of the FCC Cable Regulations; and The Cable TV Administrator having determined that Viacom Cablevision (Pinole) has charged more than the maximum permitted rates for the basic service tier and related equipment for Viacom Cablevisions' cable system in unincorporated Contra Costa County, having notified Viacom of the apparent overcharges and having afforded Viacom an opportunity to comment; and The Cable TV Administrator recommending that the Board issue a written decision, pursuant to Section 76 .936 of the FCC Cable Regulations and Section 58-8 .008(g) of the County Ordinance Code, ordering Viacom to refund the rates over maximum permitted to subscribers in unincorporated Contra Costa County and roll back their rates to the maximum permitted; and The Board having considered the recommendation of the Cable TV Administrator, all materials submitted by Viacom and any comments offered by Viacom or the public; NOW, THEREFORE, the Board DECIDES, ORDERS and DETERMINES as follows: The Board DETERMINES that Viacom Cablevision (Pinole) has been given notice and opportunity to comment, as required by Section 76 .942(a) of the FCC Cable Regulations; and The Board FURTHER DETERMINES that, to the extent the basic rates charged by Viacom Cablevision (Pinole) during the period from September 26, 1994 through September 26, 1995 exceed the maximum permitted rates for the basic service tier, equipment and installation fisted in the attached pages from FCC Form 1200 and FCC Form 1205, such basic rates exceed the maximum permitted by federal law; and q_a � -9S Sp, Pursuant to Section 76 . 936 of the FCC Cable Regulations and Section 58-8 . 008(g) of the County Ordinance Code, the Board DECIDES and ORDERS that Viacom Cablevision --j-Rinole) refund to subscribers within unincorporated Contra Costa County all excess charges (i.e. , amounts received from subscribers that exceed the maximum permitted rates) during the period from September 26, 1994 through September 26, 1995; and Pursuant to Section 76 .940 of the FCC Cable Regulations and Section 58-8 .008(g) of the County Ordinance Code, the Board DECIDES and ORDERS that Viacom Cablevision (Pinole) reduce their basic service tier or associated equipment rates where necessary to bring them into compliance with the FCC maximum permitted rates; and As required by Section 76.942(e) of the FCC Cable Regulations, the Board FURTHER DECIDES and ORDERS that the refund shall include interest computed at applicable rates published by the Internal Revenue Service for tax refunds and additional tax payments; and The Board FURTHER DECIDES and ORDERS that the overcharges for each cable system be divided equally among current system subscribers and that appropriate refunds be made within sixty (60) days of the date of this decision by means of a one-time credit specifically identified on the subscriber's bill; and The Board FURTHER DECIDES and ORDERS that Viacom Cablevision (Pinole) deliver to the Cable TV Administrator within thirty (30) days of the date of this decision a detailed refund summary providing a monthly breakdown of the overcharges received during the above.-described period; and As required by Section 76 .942(f) of the FCC Cable Regulations, the Board FURTHER DECIDES and ORDERS _that that portion of the license fees that was paid on the total amount of the refunds to subscribers be returned to Viacom by means of a deduction from the license fees payable by Viacom for fiscal year 1995; and To the extent that the actual rates listed in the. attached pages exceed the maximum permitted rates, the Board DISAPPROVES and REJECTS the actual rates; and As required by Section 76 .936(b) of the FCC Cable Regulations, the Board FURTHER DECIDES and ORDERS that public notice be given of this decision by posting the attached notice in the County Administration Building and that the text of this decision be released .upon request to any interested member of the public. Page 2 Dated: September 26, 1995 . ATTEST: Phil Batchelor, Clerk BOARD OF SUPERVISORS, COUNTY of the Board of Supervisors OF CONTRA COSTA and County Administrator By: By: eputy erk B and Chair Page 3