HomeMy WebLinkAboutMINUTES - 03161993 - IO.5 TO: BOARD OF SUPERVISORS 1 .0.-5 S ..s yV l
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INTERNAL OPERATIONS COMMITTEECosta
FROM: ;y f
March 8, 1993 County r'•� J
DATE: spm "" /`
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SUBJECT: POLICY DECISIONS ON REMAINING OUTSTANDING ITEMS RELATING TO THE
AMENDED CABLE TV ORDINANCE
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1 . In regard to the issue of what revenue will be subject to the
license fee, direct staff to include in the final version of
the Cable TV Ordinance the proposed language contained in
Attachment A-3 [Ordinance Code Section 58-6 . 002 (3) ] to the
attached staff report.
2'. In regard to the issue of how to handle increases in the
license fee by the Board of Supervisors, direct staff to
include in the final version of the Cable TV Ordinance
language which reflects the following positions :
* The Board of Supervisors would be able to increase the
license fee by no more than 1% of gross revenue ( for
'instance, from 5% to 6% of gross revenue) every two years
noticed during a regularly scheduled public meeting on
which the item was duly noticed on the agenda but without
requiring a noticed hearing.
* The Cable TV operators would be able to pass this
increase through to their customers the date such an
increase is effective.
* If the Board of Supervisors wished to increase the
license fee by more than 1% of gross revenue within a 24
month period of time, a noticed public hearing would be
required before such action could be implemented.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE THER
SIGNATURE(S):
ACTION OF BOARD ON �gBB �vT_}�T? A PROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS THE DATE SHOWN.
' ATTESTED
° 3
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
Cable TV Franchise Administrator /J
County Counsel 'G ,��
BY DEPUTY.
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3 . In regard to the issue of under what circumstances the Board
of Supervisors- could impose additional customer service
standards which were not included in the franchise agreement,
direct staff to include in the final version of the Cable TV
Ordinance language which reflects the following positions :
* Ordinance Code Chapter 58-14 should be reviewed carefully
by staff in an effort to insure that all customer service
standards the County is aware of currently .have been set
forth in the Cable TV Ordinance.
* Such action could be taken only after the County has
received 20 or more verifiable complaints regarding the
customer service standard in question.
* Provide the Cable TV operator 90 days in which to correct
the situation which has generated the complaints .
* Determine whether any additional major capital expenses
areas should be excluded in addition to the four which
are named in the draft Ordinance and bring those to the
attention of the members of the Internal Operations
Committee for their consideration.
* The proposed new customer service standard is determined
not to involve one of the identified areas in which the
Board of Supervisors has agreed not to impose additional
customer service requirements during the term of the
franchise agreement.
* The proposed customer service standard can be shown to be
a normal business practice on the part of not less than
1/3 of the Cable TV operators who are franchised in the
unincorporated area of the County.
4 . In regard to the issue of the extent to which rate changes
proposed by the Cable TV operators should be subject to review
and approval by the Board of Supervisors, authorize the
members of the Internal Operations Committee to share their
further thinking on this subject with staff for the purpose of
incorporating language into the final draft of the Cable TV
Ordinance. The basic balance we are trying to reach on this
issue is between the size of rate increases, the frequency of
rate increases, and the extent of the Board's oversight of
those rate increases . Generally, we are taking the position
that if the Cable TV operators are allowed to increase their
rates to the full extent of changes in the Consumer Price
Index, then the Board of Supervisors should limit the number
of such increases which can be approved without a full public
hearing in a two year period. To the extent that we are able
to impose a lower limit than the CPI, such as 3% or 4%
annually, we would support approving rate increases without
the need for public hearings for a three year period. We were
unable to complete our discussions on this topic at our
Committee meeting on March 8, 1993 . Rather than convening the
Internal Operations Committee on this subject again, resulting
in further delay in getting final recommendations to the Board
of Supervisors, we would like to think more about how this
balance should be achieved and then share our thinking with
staff. The full Board of Supervisors will certainly have
ample opportunity to discuss this issue when the final draft
of the Ordinance is before the Board.
5 . In regard to the issue of the extent to which the Cable TV
bill should detail the precise listing of all extra charges
which are attributed to government, authorize the members of
the Internal Operations Committee to share their further
thinking on this subject with staff for the purpose of
incorporating language into the final draft of the Cable TV
Ordinance, since we have to date been unable to fully develop
the policy position we believe the Board of Supervisors should
pursue. Currently some Cable TV companies list the additional
taxes assessed by the County Assessor as a "County Tax" .
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Other companies show this same charge as a "Possessory
Interest Tax" . Federal law allows the operators to list as
separate line items on subscriber bills license fees and taxes
charged by the County. Our concern here is that the listing
conform strictly to the limits of federal law and that the
listing be fair and accurate. We were unable to complete our
discussions on this topic at our Committee meeting on March 8,
1993 . Rather than convening the Internal Operations Committee
on this subject again, resulting in further delay in getting
final recommendations to the Board of Supervisors, we would
like to think more about how this fairness and accuracy can be
achieved and then share our thinking with staff. The full
Board of Supervisors will certainly have ample opportunity to
discuss this issue when the final draft of the Ordinance is
before the Board.
6 . In regard to the issue of technical standards which must be
met by the Cable TV operators, we are in agreement that no
technical standards should be imposed which exceed those
reflected in regulations by the Federal Communications
Commission (FCC) . An issue was raised by staff regarding a
very technical issue of the visual depth of modulation, having
to do with the sound/picture quality under certain conditions.
The FCC has considered and rejected including this standard
and we are prepared on this issue to rely on the FCC to insure
that the appropriate technical standards are required of Cable
TV operators .
7 . In regard to the issue of whether the County can, in
evaluating the reliability or quality of cable service, retain
a consultant to supervise or conduct such an evaluation at the
expense of the Cable TV operator, we would recommend the
inclusion of staff ' s proposed language with the following
additions :
* That the County and the Cable TV operators agree on a
list of pre-qualified consultants which can be used for
this purpose, with the list to be updated every three
years .
* That the County would only retain such a consultant after
notice to the Cable TV operator and a reasonable period
of time within which the Cable TV operator would have an
opportunity to cure the problem.
8 . Authorize the Cable TV Franchise Administrator to forward the
final draft of the Cable TV Ordinance to the Board of
Supervisors for introduction and first reading as soon as the
comments from the members of the Internal Operations Committee
regarding recommendations # 4 and # 5 above have been
incorporated into the Ordinance.
9 . Remove this item as a referral to the Internal Operations
Committee.
BACKGROUND:
We last reported to the Board of Supervisors on the status of the
revised Cable TV Ordinance on February 23, 1993 . Staff have met
further with the Cable TV operators and have identified what appear
to be the remaining issues which need to be resolved before the
Ordinance is ready for introduction. These issues are identified
in more detail in the attached staff report and are discussed fully
in the above recommendations . On March 8, 1993 our Committee met
with the Cable TV operators and their representatives and discussed
each of these remaining issues in some detail .
One possible policy issue we should touch on is in relation to
recommendation # 3 . We are addressing here the ability of the
County to impose additional customer service standards which were
not covered in the franchise agreement. We have agreed to exclude
entirely some areas which could require a substantial capital
investment such as :
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* Business office location and hours of operation.
* Time for responding to service complaints .
* Telephone system requirements .
* Credits for system or individual outages, and possibly some
additional similar areas .
These will be covered in detail in the franchise agreement and will
then not be subject to unilateral change by the County during the
term of the franchise agreement. For other areas involving
customer service standards, we have agreed on the criteria
identified in recommendation # 3 as the trigger for the County's
being able to impose such changes during the term of the franchise
agreement. Staff points out that it is possible with a 90 day
period of time that complaints will continue throughout this period
of time before the County can do anything definitive to change the
standards . One practical example would be a situation where, while
the operator is required to provide Saturday appointments for
responding to customer complaints, no surcharge is imposed for such
a Saturday appointment. It would be possible for the operator to
begin charging for such an appointment. It would then take 20
complaint calls, notification to the operator and a 90 day period
of time and a requirement that the County be able to show that the
proposed solution is a normal business practice on the part of not
less than 1/3 of the Cable TV operators who are franchised in the
unincorporated area of the County before the County could step in
and stop this practice. Staff wanted to make sure that we are
aware of the potential problems this can cause. We believe that
with the other controls which are in place that this should not be
a major problem. However, we agreed to bring the issue to the
attention of the Board in case you disagree with our recommendation
in this regard.
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X Olin
OFFICE OF THE COUNTY ADMINISTRATOR
C O N T R A C O S T A C O U N T Y
Administration Building
651 Pine Street, 11th Floor
Martinez, California 94553
DATE: March 4, 1993
TO: Internal Operations Committee
FROM: Patricia Burk 0 F anchise Administrator and
David F. Schmic4f
Deputy County Counsel
SUBJECT: UPDATE ON DRAFT CABLE TELEVISION ORDINANCE
On February 23, 1993, the Board directed staff to continue to
negotiate with the cable operators to finalize the draft Cable
Television Ordinance and to develop language for the ordinance
based on Board directions on the following five items :
1 . Revenue subject to license fee
2 . Increases in license fee
3 . Amendment to customer service standards
4 . Rate changes
5 . Itemization on subscriber bills
REVENUE SUBJECT TO LICENSE FEE ( "GROSS RECEIPTS")
The Board directed staff to exclude from "gross receipts" revenue
from new services and products to the extent that a cable company' s
competitors do not pay license fees or taxes to the County on
revenue from such services or products. This includes services and
products not presently provided by the cable operators, such as
data and telephone transmission services . Staff has added language
to Section 6 .002 to reflect this directive (see A-3 attached) .
Also attached is language from the County's August 1992 draft (see
A-1 attached) , which would include new services and products in
"gross receipts, " and the language proposed by the cable operators
(see A-2 attached) , which would unconditionally exclude all new
services or products . Staff believes that A-3 reflects the Board's
directive and, if the Board agrees, this version will appear in the
final ordinance.
INCREASE IN LICENSE FEE
The Board directed staff not to unduly limit the Board' s discretion
to increase the license fee charged by the County in the event that
federal and state law are modified to increase or eliminate the 5%
cap that presently applies . Staff has revised the language in
Section 6 .002 to reflect this directive (see B-3 attached) .
Also attached is language from the County's August 1992 draft (see
B-1 , attached) , which gives the Board unlimited authority to
increase license fees by Board resolution, and language proposed by
the cable operators (see B-2 attached) , which restricts the Board's
authority to increase license fees no more than once every twenty-
four months and only after one or more public hearings. In
addition; the cable operators ' language provides for an automatic
pass through of license fees and treats such increases as
independent of any other increase in rates .
Staff 's language on the pass through of license fees is included in
Section 14 . 030(b) (see E-3 attached) . Language on appropriate pass
through of license fees as part of a rate increase is in Section
8 . 008(2 ) (see D-3 attached) .
In the last five years, the County has increased license fees twice
for a total of 2% for some operators and 3% for others to bring
them up to .the 5% allowed by law. For an average subscriber bill
of $35 per month (basic, expanded basic and one premium channel)
each 1% increase in the license fee would increase the subscriber's
bill by 354P per month or $4 ..20 per year.
Before considering alternative language in this section, the Board
asked the cable operators to provide them with information which
tracks the Consumer Price Index and cable TV rates by company since
federal deregulation. Attached is a copy of the Consumer Price
Index for the San Francisco Bay Area from 1973 - 1993 . The cable
operators have assured staff that their rate information will also
be available before the March 8, 1993 Internal Operations Committee
Meeting.
Staff believes that B-3 represents the Board' s directive and
affords more discretion to the Board than B-2 . If the Board
agrees, the language in B-3 will appear in the final ordinance.
AMENDMENT TO CUSTOMER SERVICE STANDARDS ( "RULES. AND REGULATIONS")
The Board directed staff to leave the Board maximum discretion to
amend the cable ordinance to address customer service issues and to
include a "meet and confer" process prior to amendment, but to
exclude from amendment certain customer service standards, such as
telephone answering equipment, that would be costly to change.
Staff has revised the language in Section 8 . 006 to reflect this
directive (see C-3 attached) .
Also attached is language from the County' s August 1992 draft (see
C-1 attached) ; which gives the Board the authority to amend most
sections of the cable ordinance, and language proposed by the cable
operators (see C-2 attached) , which would impose severe limitations
on the Board' s authority to amend the ordinance.
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This section in the existing cable ordinance (Section 10. 012) has
only been used once in the last twenty years to amend the ordinance
to include Section 14 .030 on billing, late fees and disconnection
of service. The "meet and confer" process employed at that time is
similar to the one recommended in C-3. Staff believes C-3 reflects
the Board's directive and, if the Board agrees, this version will
appear in the final ordinance.
RATE CHANGES (including pass-throughs)
The Board directed staff to maintain in the cable ordinance
provisions allowing the Board to regulate cable rates and directed
staff to consider whether certain rate increases should be exempt
from review. In addition, the Board expressed an interest in
reviewing historical data on increases in the CPI and rate
increases by the operators since deregulation. Staff has revised
language in Section 8.008 to reflect this directive (see D-3
attached) .
Also attached is language from the County's August 1992 draft (see
D-1 attached), which provides for rate regulation and does not
exempt any rate increases from review, and language proposed by the
cable operators (see D-2 attached) , which would provide for an
automatic yearly basic cable rate increase based on increases in
the CPI . In addition, the cable operators propose that such rate
increases be in addition to the automatic pass through by the
operators of any increases in license fees or taxes charged by the
County.
Under the 1992 amendment to the federal cable act, the Federal
Communications Commission has been directed to develop procedures
for rate regulation by local government. It is unclear at this
time what procedures will apply. This section in the County' s
ordinance would apply only if the County is not expressly preempted
by the guidelines developed by the FCC.
In preparing the language in D-3, staff has tried to preserve the
Board' s authority to regulate all rates, fees and charges to the
maximum extent possible, but has exempted from yearly Board review
certain basic rate increases that do not exceed a maximum of 3% per
year or the rate of CPI increase, whichever is less . Staff
believes that D-3 is a reasonable compromise which reflects the
Board's directive. If the Board agrees, this version will appear
in the final ordinance.
ITEMIZATION ON SUBSCRIBER BILLS ( "PASS THROUGHS")
The Board directed staff to consider the information provided on
customers ' bills in an effort to reduce the possibility that it is
incomplete or misleading. Staff has added language to Section
14 .030 to reflect this directive (see E-1 attached) .
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Itemization on subscriber bills was not previously addressed in
either the existing cable ordinance or the County'.s August 1992
draft. Section 622 of the federal cable act (47 U.S.C. Section
542; see E-2 attached) presently allows cable operators to list as
separate line items on subscriber bills license fees and taxes
charged by the County.
The language in E-1 would prohibit the cable operators from
itemizing on subscriber bills any items not expressly authorized by
state or federal law and would allow the County to review and
modify billing language to prevent incomplete or misleading
information to subscribers. Staff will fax E-1 to the operators
for their comment prior to the Internal Operations Committee
meeting on March 8, 1993 .
CONCLUSION
The cable operators have informed staff of some additional items of
concern that may need to come before the Internal Operations
Committee as a result of the review of the draft ordinance by all
cable operators at their March 2, 1993 meeting. Staff will meet
with the operators on March 5 to discuss their concerns.
Pursuant to the Board' s request, the operators have agreed to order
the microwave equipment and to provide the County with a copy of
such order, with the understanding that the equipment will not be
delivered until the cable ordinance is finalized.
Staff is concerned that the deadline for construction of the
microwave interconnect is rapidly approaching. The cable operators
have assured us that, according to their FCC contacts, if the
equipment is purchased and the system is under construction, the
FCC will extend the licenses .
Several of the major items of concern have been resolved and, if
the above items can also be resolved, staff is hopeful that the
ordinance can be finalized by early April .
PB:DS:amb
iorpt.3-8-93
Attachment
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58-2.020 CPI. "CPI" refers to the Consumer Price Index, All Items, All
Urban Consumers, for San Francisco-Oakland-San Jose (1982-84=100) , prepared
by the United States Department of Labor, Bureau of Labor Statistics, or
successor agency.
58-2 . 028 License agreement. "License agreement" means any and all
legally executed documents which award a license, provide for the
acceptance thereof, and establish conditions and standards for the
grantee's activities pursuant to the license.
58-2.030 Grantee. "Grantee" means the person granted a license by
the board under this division to operate a cable system within the county;
and the lawful successor, transferee or assignee or said person.
58-2 .032 Gross annual receipts. "Gross annual receipts" means any
and all compensation in whatever form received by the grantee or any other
person and derived directly or indirectly from the operation of a cable
system under this division. Gross annual receipts shall include, but not
be limited to, revenue received from subscribers or users for basic
service, optional services, installation and reconnection, additional
outlets, commercial use channels, converter or descrambler rental,
advertising and home shopping. Gross annual receipts shall not include
revenue from: 1) any taxes on service furnished by the grantee imposed
directly upon any subscriber or user by the State or other governmental
entity and collected by the grantee on behalf of the State or other
governmental entity, including any sales tax or utility user's tax;
2) refundable deposits collected from subscribers 'a `°t >< ► ;
p w•,�:;;�,,��" ;>ism;�,,:.;}:r...,>,,<.,,N,. ,.. .,
3) copyright fees collected by the grantee for payment to the Federal
Copyright Royalty Tribunal; ) reimbursement for damaged equipment or
plant; ) VCR (video cassette recorder) and videotape .rental or leasing;
} studio productions; ;&) retail sale of items commonly sold at retail by
non-cable businesses in Contra Costa County, including TV Guide magazines,
VCRs (video cassette recorders) and videotapes; f3) reimbursement from
developers or utilities; ) reimbursement for bad check charges paid to the
stitution
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58-2 .034 Hub. "Hub means a distribution center, generally connected
to a headend by a dedicated trunk line, which distributes cable signals to
trunk lines .
58-2 . 036 Installation. "Installation" means the connection and/or
activation of the system from feeder cable to subscribers ' terminals.
58-2 . 038 Optional services. "Optional services" includes all other
retransmission, originations or communications, whether digital, video or
audio, which the grantee may provide but which are not required to be
accepted along with the basic service by the subscriber.
58-2 .040 PEG channel. "PEG channel" means a channel or channels,
including channel capacity and channel assignment, required to be made
available to the county by the grantee under this division for use in
cablecasting public, educational and/or governmental programming, as
determined by the county in its sole discretion. PEG channel may also be
referred to as "community television channel" or "community service
channel . "
58-2 .042 PEG facilities. "PEG facilities" means all services,
facilities and equipment related to the production or cablecasting of PEG
programming over PEG channels.
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privilege of transacting or carrying on a .business within the county as
required by ordinances and laws of this county.
58-2 . 028 License agreement, "License agreement" means any and all
legally executed documents which award a license, provide for the acceptance
. :tnereorf;:-and• establ sh'• conditions. and*.standards -far• the .grantee!s• activities . .. .
pursuant to the license.
58-2. 030 Grantee. "Grantee" means the person granted a license by the
board under this division to operate a cable system within the county; and
the lawful successor, transferee or assignee or said person.
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582.032 Gross annu recei ts. "Gross annual receipts" means any and
all compensation in whate r form received by' the grantee ev any other
map and derived direct or indirectly from the operation of a cable
system under this divisio Gross annual receipts shall include, but not be
limited to, revenue received from subscribers or users for basic service,
optional services, installation and reconnection, additional outlets,
commercial use channels, converter or descrambler rental, advertising and
home shopping. Gross annual receipts shall not include revenue from: 1)
any taxes on service furnished by the grantee imposed directly upon any
subscriber or user by the State or other governmental entity and collected
by the grantee on behalf of the State or other governmental entity,
including any qaJag fay nr iitility user's tax; 2) refundable deposits
collected from s , 4) copyright fees collected by the
grantee for payment to the Federal Copyright Royalty Tribunal;
reimbursement for damaged equipment or plant; 6) VCR (video cassette
recorder) and videotape rental or leasing; 7) studio productions; 8) retail
sale of items commonly sold at retail by non-cable businesses in Contra
Costa County, including TV Guide magazines, VCRs (video cassette recorders)
and videotapes; 9) reimbursement from developers or utilities; a4id 07
reimbursement for bad check charges paid to the grantee's financial
institution = IIC
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Insert 11A
utilizing the public streets and rights-of-way for which a license is required
pursuant to the terms of this division.
Insert 11B
3) any item which the grantee may itemize on subscriber statements pursuant to
the Cable Communications Policy Act of 1984,as amended,including without
limitation(i)franchise fees,(ii) costs associated with the provision of facilities
and equipment for public,educational or governmental access channels or the
use thereof required of the grantee under its license agreement and(iii) the
amount of any other tax,fee,assessment or charge of any kind imposed by any
governmental authority on the transaction between the grantee and the
subscriber.
Insert 11C
;11) any other amount received by the grantee not considered an item of income
in accordance with generally acceptable accounting principles as reflected on an
income or operating statement;and 12) any product or service provided by the
grantee under circumstances where any other person provides a similar product
or service in the county and such person does not pay a license fee,tax,
assessment or other fee to the county on all revenue derived from such products
or services in an amount equal to or greater than the license fee otherwise
payable by the grantee to the county under the terms of the grantee's license
agreement,provided that this exception shall not apply to multichannel video
programming the same as or similar to the video programming provided by the
grantee on the effective date of its license agreement,whether such multichannel
video programming is offered by direct broadcast satellite,multichannel
multipoint distribution service,satellite master antenna television service or
otherwise where no license is required from the county for the right to offer such
video programming in the county.
There shall be deducted from gross annual receipts bad debts written off
by the grantee in the usual and ordinary course of its business to the extent that
the revenue with respect hereto was included in the determination of gross
annual receipts.
For any item of gross annual receipts not received from subscribers in the
county,such as advertising and home shopping revenue,the revenue with
respect thereto shall be prorated based upon the number of subscribers in the
unincorporated area of the county served by the grantee as of the last day of the
period for which the license fee is,determined in relation to the aggregate
number of subscribers served by the grantee in all areas of the county (including,
without limitation,in all municipalities served by the grantee) as of the last day
of such period and the result obtained thereby shall be included in the
determination of gross annual receipts. j
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(3) Receivership. The county may cancel a license sixty days or later
after the appointment of a receiver or trustee to take over and conduct the
business'- of the grantee, whether in receivership, or other action or
proceeding, unless the receivership or trusteeship is vacated prior to the
expiration of the sixty days, or unless:
(a) within sixty days after his election or appointment, the
receiver or trustee complies with this division and remedies all defaults;
and
(b) such receiver or trustee, within sixty days, executes an
agreementr approved by the court, whereby the receiver or trustee assumes and
agrees to be bound by this division and the license granted to grantee.
(4) Express assumption of responsibility. A transferee shall expressly
assume all obligations of grantee and expressly agree to be bound by this
division and the license award resolution and is required to sign the license
agreement.'
(5) Certain Exceptions. The provisions of subsections (2) and (4) of
this section shall not apply where the consent of the board is obtained due
to any change in control or ownership of the original grantee as required
under the provisions of subsection (1) (a) above.
. (6) Failure to comply. Failure to comply with the requirements of this
section is a material breach of this division, subject to the remedies
provided for herein.
. CHAPTER 58-6 GENERAL FINANCIAL AND INSURANCE REQUIREMENTS
58-6.002 License fee. The board shall set a license fee for each
nonexclusive license granted within any licensed territory. The fee shall
not exceed the maximum percent allowed by law of all the grantee's annual
gross receipts from all sources attributable to the operation of the cable
system.
( 1) The initial percent required shall be established by the license
award resolution. During the term of any license granted, after advance,
written notification to the grantee, the board may, by resolution effective
no less than 60 days from its passage, require the payment of a larger or
greater percent of the gross annual receipts of any grantee for the remaining
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(2) The license fee shall be in addition to any other tax, fee or
assessment of general applicability, including without limitation any tax,
fee or assessment imposed on utilities and cable operators or their services,
owed to the county by the grantee. However, gross annual receipts of a
grantee shall not be subject to payment of a business license tax or fee,
except to the extent such business -license tax or fee exceeds the license fee
paid under this division.
(2-24-93 Draft)
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( 3) Once a grantee has paid a license fee to the county on certain
gross annual receipts, the grantee's distribution of all or a portion of such
receipts to its affiliates, parent companies or subsidiaries shall not also
be subject to payment of a license fee under this division.
( 4) If a grantee gives a discount of ten percent or more to any basic
service only subscriber in whose name the account is held, with verifiable
financial need, such as receipt of Supplemental Security Income (SSI) ,. Aid
for Families with Dependent Children (AFDC) , or General Assistance, then
payments received by the grantee from such subscriber may be excluded from
gross annual receipts, and consequently, not be subject to a license fee.
( -•) The license fee shall be payable to the county annually, semi-
annually or quarterly, as specified in the license award resolution. The
license fee shall be paid no later than 64 days following the end of the
year, half-year or quarter, as applicable, for which the payment is made.
The grantee shall annually submit to the county a complete and accurate
statement of all gross annual receipts. The statement shall be in a form and
content acceptable to the county administrator and shall be audited and
grantee5�`
:.. The
annual statement shall be submitter( not later than 9t} days following the end
of each calendar or fiscal year, as applicable.
( �) The county shall have the right to inspect the grantee's income
records necessary to determine the grantee's gross receipts in accordance
with the provisions of this division and the grantee's license award
resolution and the right to audit and to recompute any amounts determined to
be payable under these rules and regulations provided, however, that such
audit shall commence within forty-eight months following the county's receipt
of the grantee's statement of gross annual receipts, and provided further
that the county shall, to the extent permitted by law, maintain the
confidentiality of any trade secrets or other proprietary information in the
possession of the grantee. Such income records shall be exempt from
inspection pursuant to this section, however, to the extent required by
applicable laws regarding subscriber privacy. Any additional amount due to
the county as a result of the audit shall be paid within thirty days
following written notice to the grantee by the county, which notice shall
-12-
(2-24-93 Draft)
include a copy of the audit report. Should the additional amount due exceed
2% of the license fee payment which was the subject of the audit, the grantee
shall also reimburse the county for all audit costs.
(#-T) In the event that any license payment or recomputed amount, cost or
penalty, is not made on or before the applicable dates heretofore specified,
interest shall be charged daily from such date at the annual rate of twelve
percent. The provision of such interest for late payments does not provide
the exclusive remedy for any such breach of a license and the board may also
take actions as otherwise provided in this division.
58-6. 004 Performance bond. Within thirty days after approval of the
license award resolution by the board, the grantee shall deposit with the
county a performance bond issued by a company admitted to transact surety
insurance business in . the State of California, in a form reasonably
acceptable to the county and in an amount to be specified in the license
award resolution. The performance bond shall be used to insure faithful
performance by the grantee of all provisions of the license and compliance
with all orders, permits and directions of any agency, commission, board,
department, division or office of the county having jurisdiction' over its
acts or defaults under this license, and the payment by the grantee of any
claims, liens and taxes due the county which arise by reason of the
construction, operation or performance of the system.
(1) The performance bond shall be maintained at the principal amount
identified in the license award resolution during the entire term of this
license, even if amounts have to be withdrawn pursuant to the provisions of
this section.
(2) If the grantee ...... ......
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.to pay to the county any compensation: within the time fixed herein,' or fails,
after ten ( 10) days' notice, to pay to the county any taxes due and unpaid,
or fails to repay the county within ten ( 10) days any damages, costs or
expenses which the county is compelled to pay by reason, of any act or default
of the grantee in connection with the license, or fails, after days '
notice of such failure, to comply with any provision of this division or the
license which the county reasonably determines can be remedied by demand on
the performance bond, the county may immediately request payment of the
amount thereof, with interest and any penalties, from the grantee and/or
performance bond. Such payment shall be due and payable within thirty (30)
days. Upon such request for payment, the county shall notify the grantee
and/or surety of the amount and date thereof. There shall be a reasonable
allowance for attorney's fees, including the county's legal staff, and other
documented costs up to the full amount of the bond.
(3) The rights reserved to the county with respect to the performance
bond are in addition to all other rights of the county, whether reserved by
this license or authorized by law, and no action, proceeding or exercise of
-13-
(2-24-93 Draft)
58-6.002 License fee. The board shall set a license fee for each
nonexclusive license granted within any licensed territory. The fee shall
not exceed the maximum percent allowed by law of all the grantee's annual
gross receipts from all sources attributable to the operation of the cable
system.
(1) The initial percent required shall be established by the license
award resolution. During the term of any license granted, after advance,
written notification to the grantee, the board may, by resolution effective
no less than 60 days from its passage, require the payment of a larger or
greater percent of the gross annual receipts of any grantee for the remaining
term of such license,
(2) The license fee shall be in addition to any other tax, fee or
assessment of general applicability, including without limitation any tax,
fee or assessment imposed on utilities and cable operators or their services,
owed to the county by the grantee. However, gross annual receipts of a
grantee shall not be subject to payment of a business license tax or fee,
except to the extent such business license tax or fee exceeds the license fee
paid under this division.
(3) once a grantee has paid a license fee to the county on certain
gross annual receipts, the grantee's distribution of all or a portion of such
receipts to its affiliates, parent companies or subsidiaries shall not also
be subject to payment of a license fee under this division.
(4) If a grantee gives a discount of ten percent or more to any basic
service only subscriber in whose name the account is held, with verifiable
financial need, such as receipt of Supplemental Security Income (SSI) , Aid
for Families with Dependent children (AFDC) , or General Assistance, then
payments received by the grantee from such subscriber may be excluded from
gross annual receipts, and consequently, not be subject to a license fee.
(5) The license fee shall be payable to the county annually, semi-
annually or quarterly, as specified in the license award resolution. The
license fee shall be paid no later than 60 days following the end of the
year, half-year or quarter, as applicable, for which. the payment is made.
The grantee shall annually submit to the county a complete and accurate
statement of all gross annual receipts. The statement shall be in a form and
content acceptable to the county administrator and shall be audited and
certified by a certified public accountant, who may be an employee of the
grantee. The annual statement shall be submitted not later than 90 days
following the end of each calendar or fiscal year, as applicable.
(6) The county shall have the right to inspect the grantee' s income
records necessary to determine the grantee's gross receipts in accordance
with the provisions of this division and the grantee' s license award
resolution and the right to audit and to recompute any amounts determined to
be payable under these rules and regulations provided, however, that such
audit shall commence within forty-eight months following the county' s receipt
of the grantee's statement of gross annual receipts, and provided further
that the county shall, to the extent permitted by law, maintain the
confidentiality of any trade secrets or other proprietary information in the
possession of the grantee. Such income records shall be exempt from
-19 � ��`��-
inspection pursuant to this section, however, to the extent required by
applicable laws regarding subscriber privacy. Any additional amount due to
the county as a result of the audit shall be paid within thirty days
following written notice to the grantee by the county, which notice shall
include a copy of the audit report. Should the additional amount due exceed
2% of the license fee payment which was the subject of the audit, the grantee
shall also reimburse the county for all audit costs.
(7) In the event that any license payment or recomputed amount, cost or
penalty, is not made on or before the applicable dates heretofore specified,
interest shall be charged daily from such date at the annual rate of twelve
percent. The provision of such interest for late payments does not provide
the exclusive remedy for any such breach of a license and the board may also
take actions as otherwise provided in this division.
-20-
TCI OF -CONTRA COSTA CO TEL :5103728264 Mar 03'93 15:58 No .026 P-.0110—"-
Post-It-brag tax transmittal memo 761
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Contra Costa County t „�, � Cc�r-r-f � ���6MG&
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Fast
5858-6.002. Uc ense Pee
The board shall set a license fee for each nonexclusive license granted within any
licensed territory. The fee shall not exceed the maximum percent allowed by law of all
the grantee's annual gross receipts from all sources attributable to the operation of the
cable system.
(1) The initial percent required shall be established by the license award
resolution. During the terse of any license granted,after advance,written notification to
the grantee,the board may,by resolution effective no less than 60 days from its passage,
require the payment of a larger or greater percent of the gross annual receipts of any
grantee for tate remaining term of such license.
(a) Prior to any action increasing the amount of the license fee,the
bourd'shall hold one or more public hearings to allow comment froth the public and
a f jiected cable subscribers to provide public testimony regarding the proposed change in
the license fee. T lie public hearing or Bearings shall be in addition to the public hearing
at which the board proposes to enact the proposed change.
0) The license fee may be increased by the board no more than once in
any 24-month period.
W Any such increase in the Iicense fee shall a formly apply to all
grantees in the county.
(4) The amount of any such increase in the license fee shall not exceed
the adjustment in the Consumer Price Index,All Items,All Urban Consumers,for San
Francisco-Oakland--Sass lose(195244-100),prepared by the United States Department
of Labor,Bureau of Labor Statistics, measured from the date the license fee was last
increased to the date the licanse,fee is next increased or,in the case of the first such
brereave,measured from the date of thegrantee"s license award riesolution to the date of
the first proposed increase. Should this index be revised,the revised index sk4if"1-, : —"
for purposes of making the computation required by this section. Should this index be
entirely discontinued,the county and the grantee shall agree upon a replacement index
which most closely approximates the index set forth above. In the event the county and
Vie grantee are unable to agree upon such replacement index within ninety (90)days
after the original index is discontinued,the county may increase the license fee by an
amount not to exceed fare percent(5%)in any 12-month period.
(e) For purposes of illustration only,if the board,elects to increase the
license fee five years after the date of the grantee's license award resolution and the
index spectifled above increased twenty percent(20%)over such five-year period,the
TCI OF CONTRA COSTA CO TEL:5103728264 Mar 03193 15:59 ND .026 P .02
board may increase the license fee from five percent 0%)to six percent(6%),, but no
more than six percent(6%),after holding the requisite public hearings and otherwise
complying with the requirements of this section. A subsequent increase in the license
fee may occur 24 months after the adion by the board increasing the license fee from
five percent(5%)to six percent(6%). if,within such 24-month period,the index
specified above increased ten percent(1046),the license fee may be increased from six
percent(6%)to sir point six percent(6.6%)after holding the requisite public hearings
and otherwise complying with Use requirements of this section.
(t) The grantee shall be permitted to increase its rates and charges by
the amount of any increase in the license fee as of the effective date of such increase or,
should the grantee separately itemize the amount of the Ifemse fee on subscriber
statements,by increasing the amount of such separate assessment to reflect the increase
in the license fee authorized by the board. No such increase in rates or charges or in the
amount of am separate assessment of the license fee shall require the nMoval of the
county. 7*0 amount of any such increase in rates or charges or in any separate
assessment of the license fee shall be independent of, and in addition to, any other
increase in such rates,diargm or assessments permitted under this division or the
grantee% license,including without limitation any increase in such rates and charges
allowed under Section 56-SMS of this division,
W For purposes of illustration only,if the board increases the license
fee from five percent(5%)to six percent(6%)in accordance with the requirements of
this section,the grantee may increase all of its rates and charges,or any one or more of
such rates and charges,by one percent(1%). Where the grantee separately itemizes the
license fee ors subscriber statements., the assessment may be increased in such amount as
is neemary to re fled the increased license fee applicable to the grantee's gross annual
receipts,an increase of twenty percent(M).
(3) Receivership. The county may cancel a license sixty days or later
after the appointment of a receiver or trustee to take over and conduct the
business' of the grantee, whether in receivership, or other action or
proceeding, unless the receivership or trusteeship is vacated prior to the
expiration of the sixty days, or unless:
(a) within sixty days after his election or appointment, the
receiver or trustee complies with this division and remedies all defaults;
and
(b) such receiver or trustee, within sixty days, executes an
agreement, approved by the court, whereby the receiver or trustee assumes and
agrees to be bound by this division and the license granted to grantee.
(4) Express assumption of responsibility. A transferee shall expressly
assume all obligations of grantee and expressly agree to be bound by this
division and the license award resolution and is required to sign the license
agreement.
(5) Certain Exceptions. The provisions of subsections (2) and (4) of
this section shall not apply where the consent of the board is obtained due
to any change in control or ownership of the original grantee as required
under the provisions of subsection (1) (a) above.
(6) Failure to comply. Failure to comply with the requirements of this
section is a material breach of this division, subject to the remedies
provided for herein.
CHAPTER 58-6 GENERAL FINANCIAL AND INSURANCE REQUIREMENTS
58-6 . 002 License fee. The board shall set a license fee for each
nonexclusive license granted within any licensed territory. The fee shall
not exceed the maximum percent allowed by law of all the grantee's annual
gross receipts from all sources attributable to the operation of the cable
system.
( 1) The initial percent required shall be established by the license
award resolution. During the term of any license granted, after advance,
written notification to the grantee, the board may, by resolution effective
no less than 60 days from its passage, require the payment of a larger or
greater percent of the gross annual receipts of any grantee for the remaining
term of such license.
3. . .r...:ants.e;i:i.t>;:<:>:>::l:.:::c.::.e.:.:::...::::.:::.::.:.;. :.:.:::..:;::.::<:::
(2) The license fee shall be in addition to any other tax, fee or
assessment of general applicability, including without limitation any tax,
fee or assessment imposed on utilities and cable operators or their services,
owed to the county by the grantee. However, gross annual receipts of a
grantee shall not be subject to payment of a business license tax or fee,
except to the extent such business license tax or fee exceeds the license fee
paid under this division.
-11-
(2-24-93 Draft)
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( �) Once a grantee has paid a license fee to the county on certain
gross annual receipts, the grantee's distribution of all or a portion of such
receipts to its affiliates, parent companies or subsidiaries shall not also
be subject to payment of a license fee under this division.
( 4) If a grantee gives a discount of ten percent or more to any basic
service only subscriber in whose name the account is held, with verifiable
financial need, such as receipt of Supplemental Security Income (SSI) , Aid
for Families with Dependent Children (AFDC) , or General Assistance, then
payments received by the grantee from such subscriber may be excluded from
gross annual receipts, and consequently, not be subject to a license fee.
( 6) The license fee shall be payable to the county annually, semi-
annually or quarterly, as specified in the license award resolution. The
license fee shall be paid no later than 60 days following the end of the
year, half-year or quarter, as applicable, for which the payment is made.
The grantee shall annually submit to the county a complete and accurate
statement of all gross annual receipts. The statement shall be in a form and
content acceptable to the county administrator and shall be audited
GeEtIfled by a Gertiffled public, aeGeuntant, whe may be an employee of the,
,grantee do�? �.: .,�: ::::>�3> �<::< �iXk �� ...::..:::....:::.::::.::::::::::.:::::::::.::::.::. .�::::;::.�::.:::..::.:::....::.....:........:.......
The
annual statement shall be submitted riot later t2ian 9f? days following the end
of each calendar or fiscal year, as applicable.
( ) The county shall have the right to inspect the grantee's income
records necessary to determine the grantee's gross receipts in accordance
with the provisions of this division and the grantee's license award
resolution and the right to audit and to recompute any amounts determined to
be payable under these rules and regulations provided, however, that such
audit shall commence within forty-eight months following the county's receipt
of the grantee's statement of gross annual receipts, and provided further
that the county shall, to the extent permitted by law, maintain the
confidentiality of any trade secrets or other proprietary information in the
possession of the grantee. Such income records shall be exempt from
inspection pursuant to this section, however, to the extent required by
applicable laws regarding subscriber privacy. Any additional amount due to
the county as a result of the audit shall be paid within thirty days
following written notice to the grantee by the county, which notice shall
-12-
(2-24-93 Draft)
include a copy of the audit report. Should the additional amount due exceed
2% of the license fee payment which was the subject of the audit, the grantee
shall also reimburse the county for all audit costs.
In the event that any license payment or recomputed amount, cost or
penalty, is not made on or before the applicable dates heretofore specified,
interest shall be charged daily from such date at the annual rate of twelve
percent. The provision of such interest for late payments does not provide
the exclusive remedy for any such breach of a license and the board may also
take actions as otherwise provided in this division.
58-6-004 Performance bond. Within thirty days after approval of the
license award resolution by the board, the grantee shall deposit with the
county a performance bond issued by a company admitted to transact surety
insurance business in the State of California, in a form reasonably
acceptable to the county and in an amount to be specified in the license
award resolution. The performance bond shall be used to insure faithful
performance by the grantee of all provisions of the license and compliance
with all orders, permits and directions of any agency, commission, board,
department, division or office of the county having jurisdiction over its
acts or defaults under this license, and the payment by the grantee of any
claims, liens and taxes due the county which arise by reason of the
construction, operation or performance of the system.
(1) The performance bond shall be maintained at the principal amount
identified in the license award resolution during the entire term of this
license, even if amounts have to be withdrawn pursuant to the provisions of
this section.
(2) If the grantee
to pay to the county any compensation within the time fixed herein, or fails,
after ten ( l0) days` notice, to gay to the county any taxes due and unpaid,
or fails to repay the county within ten (10} days any damages, casts or
expenses which the county is compelled to pay by reason of any act ordefault
of the grantee in connection with the license, or fails, after days '
notice of such failure, to comply with any provision of this division or the
license which the county reasonably determines can be remedied by demand on
the performance bond, the county may immediately request payment of the
amount thereof, with interest and any penalties, from the grantee and/or
performance bond. Such payment shall be due and payable within thirty (30)
days. Upon such request for payment, the county shall notify the grantee
and/or surety of the amount and date thereof. There shall be a reasonable
allowance for attorney's fees, including the county's legal staff, and other
documented costs up to the full amount of the bond.
(3) The rights reserved to the county with respect to the performance
bond are in addition to all other rights of the county, whether reserved by
this license or authorized by law, and no action, proceeding or exercise of
-13-
(2-24-93 Draft)
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improper activation.
CHAPTER 58-8 COUNTY REGULATION OF LICENSE
58-8.002 Administration. The office of the county administrator is
designated as having primary responsibility for the administration of the
license and this division. Whenever a right may be exercised under this
division by the county or a county officer, such right may also be
exercised by a designee or employee.
58-8.004 Notices. ExceptQ otherwise rixr ` ? t in this division, all
notices from grantee to the county pursuant to its license shall be to the
office of the county administrator.
(1) The grantee shall maintain with the county, throughout the term
^1
of its license, an address for service of notice by mail.
(2) Grantee shall also maintain within the county a local office and
telephone number for conducting matters related to its license during
normal business hours.
58-8.006 Rules and regulations. During the term of any license
granted, the board may amend any section or part of this division so as to
require additional or greater standards of construction, operation,
maintenance or otherwise, on the part of the grantee. If this division is
amended to require additional or greater standards, the grantee shall
comply with the new standards no later than the effective date of such
amendment or such later date as may be specified in the amendment.
Notwithstanding the foregoing, a grantee shall not be required to increase
insurance or bond coverage any more frequently than the intervals specified
in Sections 58-6.004(5) and 58-6 .008(4) and shall not be required to
increase the capacity or technical standards of its cable system more
frequently than once every five years.
-33- -�
ICI UI- CUNIKH COSTR CO TEL :5103725264 Mar 03'93 16 :00 No .026 P.03
Contra Costa County Cable Television Ordinance
58-8.0 . Rules and Regulations.
(1) The grantee shalt,at all tithes during the terra of its license,be subject to
all lawful exercise of the police power by the county,provided that such exercise of the
police power shall not alter the grantee's rights or obligations under its license.
(2) The grantee shall be required to comply fully with all applicable federal
and state statutes acid regulations,including without limitation those governing cable
communications.
(3) The board may not amend any section or part of this division or the
grantee's Iicense so as to require additional orgreater standards of construction,
operation,maintenance or otherwise where such amendment imposes additional
burdens on,or abrogates any contractual rights under the license of,thegrantee,
provided that the board may adopt additional customer service standards in
accordance udth the followingprovisionsr
(a) Such standards shall apply to a business practice not otherwise
regulated under this division and shall not increase the requirements for customer
service set forth under this division or the grantee's.license,including without
limitation those set forth in Chapter 58-14 of this division.
(b) Where twenty-five 05)or more vMfiable complaints are received
from subscribers within the county objecting to a business practice o f the grantee not
otherwise subject to regulation under this division or the grantee's license,the county
shall provide written notice to the grantee,and each other grantee holding a license to
construct,operate and maintain a cable system in the county identifying the nature of
such complaints.
(c) The grantee shall attempt to respond to such complaints promptly
following receipt of written notice from the county with respect to such complaints.
60 If,within 180 days after the date of such notice,the county
continues to receive verifiable complaints concerning the nature of such business
practice which,by number,equa l or exceed twenty-five(25),the county may adopt a
rule or regulation to address such business practice,provided that one or more public
hearings are held to allow public testimony regarding the proposed rule or regulation,
which public hearing or hearings are its addition to the public hearing at which the
board proposes to enact such proposed rule or regulation.
(e) No such rule or regulation shall be adopted by the board where the
grantee demonstrates by reasonably satisfactory evidence that the same or similar rule
TCI OF CONTRA COSTA CO TEL :5103728264 Mar 03'93 16 :01 No .026 P .04
or regulation is not in effect in at least one-third of all franchises and/or licenses
authorizing cable television service within the Counties of Alameda, Contra Costa,
Solano and Sonoma.
(r) No penalty or sanction shall be imposed upon ang grantee based
upon such complaints,unless and until the board shall adopt rules or replations
governing the business practice at issue and only then following notice and opportunity
to cure any failure to comply with such rules and regulations in accordance with the
requirements of this division.
a - 3
58-8. 006 Rules and regulations.
(1) . In situations where the county receives a substantial number of
subscriber complaints, which indicate to the county a need for revising or
supplementing the customer service standards set forth in this division, the
county shall have the right to amend this division by revising existing
provisions or adding new provisions.
(2) The county shall first attempt to resolve the problem with the
involved grantee by notifying the grantee in writing and giving the grantee
an opportunity to correct the problem within the time specified in the
written notice. If the involved grantee corrects the problem within the
specified time and gives satisfactory assurances to the county that the
problem will not recur, the county may treat the matter as resolved.
(3 ) If the involved grantee fails or refuses to correct the problem
within the specified time, the county may propose amendments to the customer
service standards set forth in this division. Before approving the proposed
amendments, the county shall offer to meet and confer with all grantees in an
attempt to reach concensus on the proposed amendments. If concensus cannot
be reached, the county in its discretion shall have the right to amend the
customer service standards, so long as the amended provisions are consistent
with the business practices of any cable system within Contra Costa County,
including incorporated areas, or are consistent with the business practices
of any cable system of the involved grantee within the State of California.
(4) If this division is amended to require additional or greater
customer service standards, all grantees shall comply with the new standards
no later than the effective date of such amendment .or such later date as may
be specified in the amendment.
(5) Notwithstanding the foregoing, the following provisions shall not
be amended without the voluntary consent of the grantees:
-25-
(a) Business office location and hours of operation;
(b) Time for responding to service complaints (outages and reception
problems) ;
(c) Telephone system requirements; and •
(d) Credits for system or individual outages.
(6) Notwithstanding the foregoing, the county shall have the right,
without following the procedure set forth in this section, to amend this
division as necessary to conform to applicable state and federal laws
relating to regulation of cable systems.
-26- ,
58-8.008 Rates and rate changes.
(1) Except to the extent expressly preempted by federal or state
statute, the provisions of this section shall govern rates and rate changes
under this division.
(2) At such times as deemed appropriate by the board, after holding
at least one public hearing, the board in its sole discretion may establish
standards and procedures for reviewing rates subject to regulation under
this division. Such standards and procedures may deal with: (a) the types
of rates, fees and charges to be regulated; (b) the frequency of rate
changes; (c) the form and content of rate change applications; (d) the
analysis of rates by independent consultants; (e) the reimbursement by the
grantee of the county's consultant and other rate review expenses; (f) the
county's initiation of rate changes; and (g) such other subjects as deemed
appropriate by the board.
(3) The board shall have access to records of financial transactions
for the purpose of verifying burden rates or other indirect costs. The
documents shall include sufficient detail and/or footnotes as may be
necessary to provide the board with the information needed to make accurate
determinations as to the financial condition of the system. All financial
statements shall be certified as accurate by an officer of grantee.
(4) The county may require that an analysis of any proposed rate
increase be conducted, at the expense of the grantee, by a professional
rate consultant experienced in the analysis of cable system service rates
who shall be jointly approved by both the county and the grantee. The
consultant shall sign all analysis of the proposed increase and forward
them to the county and grantee with a report interpreting the results of
the analysis and recommending actions to be taken.
(5) Where the license is part of a cable system under a single
-34-
headend that also has licenses with one or more contiguous cities within
Contra Costa 'County, rates for subscribers within the county shall not be
higher than rates charged to any other subscriber in the system within
Contra Costa County for the same service, except as specifically approved
and exempted by the board. In considering a request for exemption, the
board shall consider, among other things, whether this division imposes
greater obligations on the grantee than the applicable city license(s) .
58-8 . 010 Performance and evaluation. The county and grantee may hold
performance evaluation sessions at any time as directed by the board
>:;;;;u:;;dd ;that;:;; o more khan �ur. armance eualuatin sessien>::: s
< :>:.; :' " ;.:.::.:,>;,.> ...:::.::.:.. :::
.;.;,.;:.;..;;+ ;.:; y,;; #c . The county shall send the grantee
...>.....:::...:
notice of the date, time and place of the performance evaluation session at
least gip; days prior to the session.
( 1) All evaluation sessions shall be open to the public and announced
in a newspaper of general circulation serving the license area. The
grantee, at its sole expense, shall notify all subscribers in the affected
license area by U.S. mail of all scheduled evaluation sessions and the
specific issues proposed for discussion at least five working days prior to
the
first
se
session.
ice:"'';:: ';:::.:;;:. ,.'.,;`,:,`,::.>:.;::.:y>,.:y,,::: , ;';'�;�>?:;.`,•:::};;,::}:::;'°.:;>::<�,;;,.>°.>:>:::>«:::,:.::;�: :..; °:�;:::>::°� :::::>: .:.::. ::.;:<. :.:.
..
en anrIruncemer revired :. ..<. ouutr and inlded with subscriber
saem�nsi.
(2) Topics which may be discussed at any evaluation session may
include, but not be limited to, types and quality of service, rate
structures, license fee, penalties, free or discounted services,
application of new technologies, system performance, programming offered,
customer complaints, privacy, amendments to this division, judicial and FCC
rulings, line extension policies and grantee or county rules .
(3) Members of the general public may add topics either by working
through the grantee or county or by presenting a petition. If such a
-35-
ICI OF CUNIRH C08TH CO TEL :5103728264 Mar 03 '93 16:01 No .026 P.05
Centra Costa County Cable Television Ordinance
50.00, hates and RaIg QatiMI.
(1) Except to the extent expressly preempted by federal or state statute,the
provisions of this section shall govern rates and rate changes under this,division.
(8) The grantee may increase any rate or charge for its services without
approval of the county in accordance with the following provisions:
(a) If the amount of,such increase does not exceed the adjustment-M--
the
nthe Consumer Price Inda X All Items,All urban Consumers,San Francisco-Oakland-
San Jose(1982-84=100),prepared by the Mited States Department of Labor,Bureau of
Labor Statistics,measured from the date such rate or charge was Inst increased to the
date such rate or charge is next Increased,provided such rate or charge is adjusted no
more than once during any one calendar year.
(b) Should this index be revised,the revised index shall be used for
purposes of making the computation required by this section. Should this index be
entirely discontinued,the county and the grantee shall agree upon a replacement index
which most closely approximates the index set forth herein. In the event the county and
the grantee are unable to agree upon such replacement index within ninety(90)days
after the original index is discontinued,the grantee may thereafter increase any rate or
charge by an amount not to exceed flue percent(590 in any one calendar year.
W Notwithstanding the foregoing,the grantee fray increase any such
rate or charpe in accordance with the provisions of this paragraph(8)without the
approval of the county no more than three(3)tunes. Any subsequent increase in such
rate of charge shall be subject to revisor and approval by the board consistent with the
standards and procedures established in accordance with the terms.of this section.
Following approval by the board of any increase in such rt�#e ar cYas%,e,the proaisious
of this paragraph shalt again be operative.
(d) The amount of any increase in su4s rates and charges shall be
independent of, and in addition to,any other increase in such rates and charges
permitted under this division or the grantee's ordinance,including without limitation
any increase authorized under Section 58-6.002 attributable to an adjustment in the
amount of the license fee required by the board.
58-8. 008 Rates and rate changes.
(1) Except to the extent expressly prohibited by federal or state
statute, the provisions of this section shall govern rates and rate changes
under this division.
(2) Except as otherwise provided in subsection (10) below, before
increasing any rate, fee or charge to subscribers, including any increases in
items that the grantee passes through to subscribers, the grantee shall first
file with the county a written request and shall obtain the county' s approval
thereof. The request shall include the justification for the proposed
increase and shall be in such format and detail as is acceptable to the
county.
(3) The board shall have access to the grantee' s financial records for
the purpose of verifying all income and expenses of the grantee. The
documents shall include sufficient detail as may be necessary to provide the
board with the information needed to make accurate determinations as to the
financial condition of the system. All financialstatements shall be
certified as accurate by an officer of grantee.
(4) The county may require that an analysis of any proposed rate
increase be conducted, at the expense of the grantee, by a professional rate
consultant experienced in the analysis of cable system service rates who
shall be jointly approved by both the county and the grantee. The consultant
shall sign all analysis of the proposed increase and forward them to the
county and grantee with a report interpreting the results of the analysis and
recommending actions to be taken.
(5) Within ninety (90) days of the filing of the request for increase,
the Board shall hold a public hearing to consider the proposed increase, at
which hearing all persons desiring to be heard, including the grantee, shall
be heard on any matter, including but not limited to the grantee' s
performance, the grantee' s services and the proposed increase.
-27-
(6) Upon the scheduling of any public hearing, as provided in this
section, the grantee, at its sole expense, shall promptly notify its
subscribers in writing of the time, place and subject matter of the
initially-scheduled .public hearing. In addition, the grantee, at its sole
expense, shall cause notice of the public hearing to be published in a
newspaper of general circulation serving the license service area, with such
publication occurring not less than seven nor more than fourteen days before
the public hearing.
(7) Within thirty (30) days after a public hearing, the county shall
render a written decision on the grantee' s request for a proposed increase,
either accepting, rejecting, modifying or deferring the same and reciting the
basis of its decision.
(8) If no final decision on the grantee' s request has been rendered by
the county within one hundred and twenty (120) days after the filing of the
request, the grantee's request will be deemed approved, unless the 120-day
period is extended by mutual agreement of the grantee and the county.
( 9) Where the license is part of a cable system under a single headend
that also has licenses with one or more contiguous cities within Contra Costa
County, rates for subscribers within the county shall not be higher than
rates charged to any other subscriber in the system within Contra Costa
County for the same service, except as specifically approved and exempted by
the board. In considering a request for exemption, the board shall consider,
among other things, whether this division imposes greater obligations on the
grantee than the applicable city license(s) .
(10) The grantee may increase the rate for basic cable service without
filing a request with the county and obtaining the county' s approval, so long
as the amount of such increase during any one calendar year does not exceed
three percent or the .rate of increase in the CPI, whichever is less. If the
grantee increases the rate for basic cable service during any two consecutive
years pursuant to this subsection, all rate increases proposed during the
third consecutive year shall require the county's approval, regardless of the
amount of proposed increase.
(11) The grantee shall inform subscribers in writing of all increases
in rates, fees or charges, except per-event programming, at least thirty days
prior to their effective date. A copy of such notice or facsimile shall be
provided to the county at the time of the subscriber notification.
-28-
58-14 . 030 Billing, late fees, disconnection of service and notification
of rate changes. (a) Bills for service may be monthly or bimonthly.
However, subscribers requesting monthly billing for their oservice shall be
billed monthly by the grantee and allowed to pay such charges in that manner.
Nothing in this section shall prohibit voluntary prepayment of services by
subscribers, provided that the grantee shall not be required to offer or
accept any discount or other reduction in the amount paid by any subscriber
for a voluntary prepayment of services.
(b) Except as expressly authorized by state or federal law, the grantee
shall not itemize on a subscriber' s bill any fees, taxes or assessments
payable by the grantee to the county, including without limitation license
fees, possessory interest taxes and property taxes. Before itemizing on
subscriber bills any items expressly authorized by state or federal law, the
grantee shall submit a sample bill to the county for review and comment. In
the event that the billing language proposed by the grantee is misleading or
incomplete, the grantee shall modify the same as requested by the county or
shall include a reasonable explanation provided by the county.
(c) Charges on a bill shall not be deemed delinquent and a subscriber
shall not be subject to a late fee, so long as payment is received from the
subscriber within ten days after the end of the period covered by the bill.
(d) Before disconnecting a subscriber' s service for nonpayment, the
grantee shall, by Cablegram, T-gram, mailgram, telegram or other means
approved in advance by the county administrator, give the subscriber at least
five days' written notice of intention to disconnect. The notice shall
specify a deadline for payment to avoid disconnection, which deadline shall
be at least five days after the delinquency date described in subsection (b)
of this section. Provided the grantee has given such notice to the
subscriber, if payment for the delinquent charges and any applicable late fee
is not received by the deadline, or if the subscriber's payment is dishonored
by the bank, the grantee may disconnect the subscriber' s service without
further notice.
-46-
Integrated Cable Act
as compiled by the
California Cable
Television Association
Sec. 622. [47 U.S.C. 542] Franchise Fees
(a) Payment under terms of franchise
Subject to the limitation of subsection (b) , any cable
operator may be required under the terms of any franchise to pay
a franchise fee.
(b) Amount of fees per annum
For any 12-month period, the franchise fees paid by a cable
operator with respect to any cable system shall not exceed 5
percent of such cable operator's gross revenues derived in such
period from the operation of the cable system. For purposes of
this section, the 12-month period shall be the 12-month period
applicable under the franchise for accounting purposes. Nothing
in this subsection shall prohibit a franchising authority and a
cable operator from agreeing that franchise fees which lawfully
could be collected for any such 12-month period shall be paid on
a prepaid or deferred basis; except that the sum of the fees paid
during the term of the franchise may not exceed the amount,
including the time value of money, which would have lawfully been
collected if such fees had been paid per annum.
notifies(e) A eable eperater may pass through to subseribers the
moble-eperater in writing.
(c) Line items on subscribers' bills for franchise fee, PEG
support, taxes and other fees and assessments
Each cable operator may identify, consistent with the
regulations prescribed by the Commission pursuant to section 623,
as a separate line item on each regular bill of each subscriber,
each of the following:
(1) The amount of the total bill assessed as a franchise
fee and the identity of the franchising authority to which the
fee is paid.
(2) The amount of the total bill assessed to satisfy any
requirements imposed on the cable operator by the franchise
agreement to support public, educational, or governmental
channels or the use of such channels.
(3) The amount of any other fee, tau, assessment, or
charge of any kind imposed by any governmental authority on the
transaction between the operator and the subscriber.
-35-
d3/04r9� 15:29 $415 8960296 WESTERN COMM M. f�J dd1
I 1
WESTERN COMMUNICATIONS
Two Rincon Center
121 Spew'Street, Suite 203
San Francisco, CA 94105
PH. (415)896-5000
FAX (415)896-0236
TELECOPIER TRANSMITTAL SHEET
Date: March , 1993 Fax No. 5101646,-294&
To: Pat Burke
David Schmidt
From. Christopher r. Lammers
Number of Pages(Including Cover Sheet): 8
Message:
IF ALL PAGES ARE NOT RECEIVED,PLEASE CALL(415)896-5o00
03/041193 13,30 0415 8960236 WESTERN COKKUN. IA002
WESTERN
COMMUNICATIONS
CHRISTOPHER J.LAMMERS
Woe President
February 26,1993
Patricia J. Burke
Franchise Administrator
Contra Costa County
651 Pine Street, 11 th floor
Martinez,California 94553-1291
Re: Cable Television Ordinance
Dear Pat
Following up on the request of the 10 Committee at its meeting on February 1,
we have been able to assemble basic raw information for Century,Concord TV Cable,
TO(Central County),United Artists (Walnut Creek)and Viacom(Pittsburg). Enclosed
is a summary for each system identifying its basic rate history. I am expecting compa-
rable information from Bay Cablevision and will forward it on to you when I have
received it.
In connection with your review of these summaries,please consider the follow-
ing information:
1. Rate history is provided from the date such information is first available.
For Concord TV Cable,United Artists and Viacom,this Information is available from
1967 forward,essentially the date each of us first cornmenced offering cable service in
our communities. In the caw of Century and TCL this information is available from
1975 forward.
2- Basic cable service is defined as the entry level of service for each operator.
For those systems with a limited or broadcast level of service and a separate satellite
level of service,both levels have been combined as"basic"service given that the pene-
tration of the satellite level of service is virtually 100%. Where them exists a separate
satellite tier of service with a penetration of less than 90%, that tier is not considered to
be a part of basic service.
3. Only the number of programmed channels within basic service is pro-
vided. The actual number of programming services offered by an operator as part of
basic service often exceeds the number of channels included in basic service,where two
or more programming services share a single channel.
RinCon Annex Station•Post Office Boy 1939 -Sari Francisco,CA 94119
Two Rincon Center-121 Spear Street,Suite 203-San Francisco,r,&94105
Phone(415)896M04 EXT.(218) • FAX(415)896-0236
03/04/93 13:301 V415 8960236 WESTERN COMM. 0003
Patricia J. Burke
February 26,1993
Page 2
4. The CPI is based upon the Consumer Price Index for All Urban
Consumers(1967=100) for the San Francisca-Oakland-San Jose area,as published by the
Bureau of Labor Statistics,United States Department of Labor. As can be seen,initial
rates as adjusted by the CPI are comparable to actual rates,both in absolute terms as
well as on a per-channel basis.
5. Rates for basic service are exclusive of copyright fees,franchise flees,pos-
sessory interest taxes and other amounts separately itemized on subscriber statements
due to the wide variation among systems coneenung pass-through practices.
Please feel free to tall me with any questions concerning this information or its
manner of presentation.
Sincerely,
Christopher J.Lammers
CJL:pah
cc Jeff Butler(w/enc.)
Gene Cook(w/enc.)
Susie Evans(w/enc.)
Joe Haber(wlenc.)
Michael Lytle (w/enc.)
Dahlia Moodie(w/enc.)
Sanford M. Skaggs,Esq. (w/enc.)
Dee Trotter(w/enc.)
David Schmidt,Esq. (w/enc.)
03/04/93 13:31 $415 8960236 WESTERN COKKUN. f�004
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