HomeMy WebLinkAboutMINUTES - 03281995 - H.1 141
TO BOARD OF SUPERVISORS � E EA""
COP-1¢ra
L
CostaFROM Phil Batchelor, County Administrator b
Count
DATE March 22 1995Ly
SUBJECT REFUND OF APPLICABLE PORTION OF BASIC RATES BY TCI CABLEVISION
SYSTEMS
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)& BACKGROUND AND JUSTIFICATION
RECOMMENDATION
At the conclusion of the hearing, ISSUE a written decision ordering
TCI Cablevision systems to refund to subscribers the portion of
previously paid basic rates .in excess of rates established by the
FCC for the period from September 1, 1993 through July 14, 1994
REQUIRE TCI to submit a refund summary to the Cable TV
Administrator within thirty ( 30) days and to refund the overcharges
to subscribers in the form of a one-time rebate within ninety ( 90)
days
FINANCIAL IMPACT
License fees paid on the overcharges collected will need to be
reimbursed to TCI systems by the County The determined amount
will be subtracted from ICI ' s next 1995 franchise fee payment
Based on preliminary refund summary information, this amount should
not exceed $7 , 000
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
CONTINUED ON ATTACHMENT YES SIGNATURE
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
7-'PPROVE OTHER
SIG N.,TURE(S) yZ ,Z446�1'Gze �
ACTION OF BOARD ON March 28, 1995 APPROVED AS RECOMMENDED X OTHER
No one appeared to speak The hearing was closed The Board APPROVED
the recommendations set forth above
VOTE OF SUPERVISORS
X _ _ _ 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 ON THE DATE SHOWN
ATTESTED March 28 , 1995
Contact PHIL BATCHELOR CLERK OF THE BOARD OF
CC See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR
BY 0 9 DEPUTY
-2-
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
TCI Cablevision systems submitted their FCC Form 393s in May, 1994
As authorized by the FCC rate regulations, the County tolled the
review of those rates for ninety (90) days Because additional
review time was needed, TCI agreed in writing to extend the review
time until October 31, 1994 In order to get clarification of the
additional information provided by TCI, the Board adopted a
resolution (Accounting Order) to extend the review time until
March 31, 1995
Staff reviewed all documents provided and met with TCI
representatives to review the FCC Form 393 in detail At that
meeting, TCI provided the County with preliminary refund summaries
acknowledging that they had charged more than the permitted rate
for basic service and other related services Additional
documentation was requested and provided After completing the
review, staff concluded that a refund to the maximum permitted rate
according to FCC Form 393 was in order for all TCI Cablevision
systems
In accordance with Section 76 942 of the FCC rules TCI Cablevision
systems have been notified of 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 the
text of such decision must be made available to the public
cc TCI Cablevision of East County
TCI Cablevision of Walnut Creek
TCI Cablevision of Contra Costa County
County Counsel
Cable TV Administrator
411
WRITTEN DECISION ORDERING REFUNDS TO SUBSCRIBERS
TCI Cablevision of East County having previously submitted
to the County FCC Form 393 dated June 14, 1994 covering rates
charged for the basic service tier and equipment in
unincorporated areas of East Contra Costa County, and
TCI Cablevision of Walnut Creek having previously submitted
to the County FCC Form 393 dated June 14, 1994 covering rates
charged for the basic service tier and equipment in
unincorporated areas of Walnut Creek, Contra Costa County, and
TCI Cablevision of Contra Costa County having previously
submitted to the County FCC Form 393 dated June 14, 1994 covering
rates charged for the basic service tier and equipment in
unincorporated areas of Central Contra Costa County, including
the unincorporated community of Clyde, and
The above-named licensees (collectively referred to as
TCI ' ) having subsequently submitted to the County additional
records supporting the figures stated .in the Form 393s, and
The Cable TV Administrator, with assistance from the County
Auditor's Office, having evaluated the Form 393s and all
supporting records submitted by TCI and having prepared a report
to the Board, and
The County' s time for review of the Form 393s having been
previously extended by Board order, agreement in writing and
accounting order, as provided in Section 76 933 of the FCC Cable
Regulations, and
The Cable TV Administrator having determined that TCI has
charged more than the maximum permitted rates for the basic
service tier and related equipment for TCI s cable systems in
unincorporated Contra Costa County, having notified TCI of the
apparent overcharges and having afforded TCI 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 TCI to refund the excess charges minus the undercharges
(remote controls and converter boxes, Walnut Creek system only) ,
plus interest, to subscribers in unincorporated Contra Costa
County, and
The Board having considered the recommendation of the Cable
TV Administrator, all materials submitted by TCI and any comments
offered by TCI or the public,
NOW, THEREFORE, the Board DECIDES, ORDERS and DETERMINES as
follows
The Board DETERMINES that TCI 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 TCI during the period from September 1, 1993
through July 14, 1994 exceed the maximum permitted rates for the
basic service tier, equipment and installation listed in the
attached pages from FCC Form 393s, such basic rates exceed the
maximum permitted by federal law, and
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 TCI 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 1, 1993 through
July 14, 1994 minus all undercharges (i e , the difference
between the actual rates and maximum permitted rates for remote
controls and converter boxes, Walnut Creek system only) for the
same period, as listed in the attached pages from FCC Form 393s,
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 ninety
( 90 ) 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 TCI 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 TCI by means of a
deduction from the license fees payable by TCI for fiscal year
1995, and
Page 2
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
Dated March 28, 1995
ATTEST Phil Batchelor, Clerk BOARD OF SUPERVISORS, COUNTY
of the Board of Supervisors OF CONTRA COSTA
and County Administrator
By By / .
Deputy Clqf7k Board Chair
Page 3
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FCC 393 Q PART 9
REQUEST FOR CABLE RATE APPROVAL
COVER SHEET
Communary Una IdentiflcutICA coda Date
Name ofCW0 DPZraW
htailinQ A,ddra�s
city
State UT-Code
Person to contact regarding this form
Telephona Fan Number
Local Frenchisrng Authority
Mailing Address
oa
city State ZIP Code
This forte la b3wng failed with respect to (check one)
® basic rata relation or calve programming service rate regulation
if this form is being filed in response to a complaint about your cable programming seance rates please attach a copy of the
complaint to this cover sheet.
The following sections are to be completed after you have filled Out the vrorltsheets in PARTS 11 and Ill and
calculated your actual and permitted rates
FOR BASIC SERVICE TIER AND EQUIPMENT
P rates Service late
(1)Number of channels on basic seance tier
(2)Current rmt2 fog basic eavleo tier° (do not Include my franchise fees) 8� r
0)Ma:timum permitted pc?c11ne1 rate: (from Lune 600 Pan 10 $
(4)Maximum permitted rate for basic service tier texclusive of any franchise W)-
(multiply
eet(multiply(1)by 0)above)
MOTE: It Voter current rate for the bas c servIca bye(entry 2)exceeds the mauimum psmitte d rater far that t1w(cantry 4),you must
submit a coa of a shawig w your baste oervxa rate will be reduced to thea maulmum por¢mitt ad level show In entry 4
Franchise fetes hava been eitcluded from this analysts in order to compare your wnddv rate for the basic service tier to the
maximum pwmitted level whether you itemize them or not,any franchise fees you gray fat the basic savtce tier should be added
to Voter momMy rata as papa of the service when billing your subscribem Sec 47 C.F.Q.Section 76 985
FCC 393 ware 3)
AV904 1993
FCC 393 Part 1 Paso 2
EQUIPMENT AND INSTALLATION RATES
NOTE: Yana IXW4V-- Wt:d bwtallatioa Psora for 0,a bash ocavko OW truest rcW ba Inds"In your program service rate for that
w b-W nrthw Fr uot beMed. In add)tica,&wa col t and Installation rates must not exceed your actual
casts including a rho proTho rrle¢hod for urnbsaeldlalg yosart and in
stallation rats from the bask service
programming rata,and far a otertrlinrng Vowrtted equiprnerlt and hw �rateas, W prescribed in Part II (unbundling)and
Part III (rate-oming)of thb fonts. Entry in spacm below tha rate figiimw you have calculated in Part III of this form Your
actual bases servlra CxAtrpt and&hstallatlon diargea may not anceed th=rate,although they may be lower
PEI4MtfT7ED ACYUAL
(1)Charges for basic service irstallations (from lines 6 or 7 of Equipment and Installation q °
Worlisheet) o
0
(a)Hourly rate: OR $ $
(b)Average installation charges: e
0
(1)Installation of un"red homes $ $ C7
(2)Installation of prewired homes $ 19 33g p �.-
(3)Installation of additional connection at time of initial installation $ 'l $ )3 Q ^�
(4)Installation of additional connection requiring separate installation $ 33 $ c�S 9:5
(5)Other installations(spec&A- o o
Item 1mnoc 3-3 $ Q
155
-�—
Item 2 / / Y $ U
(2)Charge for changing gens(if any)(from Line 19 30 or 31 of Equipment and Installation r.
Worksheet) $ 5�j $ o
(3)Monthly charge for lease of remote contrals(from Line 14 in Equipment and Installation 9 e o 4
Worksheet) m a
Remote control type 1
Remote control type 2 $ O $ O
Remo•e control type 3 $ $
(4)Monthly charge for lease of converter boxes(from Line 21 in Equipment and Installation
Worksheet) �
Converter box type 1 $ O $ D,, r7 1
Converter batt typo 2. $ D 4 $ ! pt i—
r
Converter batt typo 3 $ $
(5)Monthly charga far lc=of othar equepmant(horn Lune 28 in Equipment and installation
Workshy
Othra equipment(specify): 8 $
° If you ham f n'thra charges for addftlond eonractla s bzywtd therm reffeacd Ia ya;w bwtallab on charge,attach a sheet
ettgsl be yoasr eakulat em and oanhis forth dma addat=%ai charge& SU Nc4a to Equcpment and Installation Worksheet
IrWhVC cares In Prat 010 of thb fan&
FCC 998 pcz;a Q
Act 1993
(9h�k61 Othor IrwtBitatlono{II1+actPq) inuod
PERMl'TYtrD ACTUAL
Itom 3 UPGRADE/DOWNGRADE(addreaaablo) S Ufa S 0.00
Item 4 CONNECT VCR INITIAL S 5 $ L+
Item E CONNECT VCR SEPARATE
Item a $ $
Item 7 $
Item 8 $ $
Item 9 $ $
Item 10 $
Item 9 9 $
Item 92 $ $
Item 93 $ $
Item 94 $ $
Item 95 $ $
Item 96 $ $
FOR LABLE PROcGRAM NG SERVICE RATES AND EQUIP& 4T
Prorm Svice Dates
NOM If M hm mwo titan oqa 0&jo progranwimo owvka tter attsch additianaal dur-s tVM the following Information for !=h
tt^7 Z bria{i d of titz tied
z.
(1)Numbor of ch,"wrials an cable programming service liar —
(.2)cur ent rata far rib programming service tier (do not include any franchise feels) f3 q
o
(3)Mmmum permitted per channel rate: (from Line 6W Part Iq
(4)taudmum permuted rats for cable programming ser ce tier(exclusive of any franchise fees)
(muldplr(1)by(3)above) $ 100q
NOM If pow current rate for the cable programming oa vicao tw(may a)exceeds the maximum permitted rate(entry 4) you
M4 aub*012 to coot-*(-0Grv1C0 nhOmng oq youa CWG MWamrninS awe¢rata Will be reduced to the ma W-M pw.ittad levd
shoe In 4
Frzeatsh=fees ha,ra been excluded from this zut:al w in ordw to compare grwry idly rate for the came programming o vko tier
to tM Minim mend level VAvdhw you ltwouto them wnot,any franchise few pose pa for the canis programming m vice
ies
tohm"ba adi of yew mmthly rata as part of the earvbuz charge when billing your oubscrib2ra. Sea 49 c.F It.Section 96 99S
Equipment and Ons8a)lation Rates
NOTE: 8f 1p�ted fear cable pr .r<mins owv=to als;os t�to res¢iva elle basic tin,theme it mist be Included in basic
=T9� Simiiarty,If an instal two involving cable programming services also involved the basic ssesvica tear,it must be
seavico Inataltations. We antkipata that virtually all equipment and installatmw will Involve:tho basic service tier
and dwere til thus be no need to complete this part of(fie carom shy However,if you lease equipment andtor provide some
Installatiasirrelated service that involves ONLY your cable programming services,pose should complete the following section
As for basic service,your equipment and Installation rates for czWo programming service merit not be included in your program
servtca rate,but rattier must be completely unbundled. in aMK=,those equiprrtern and installation rates must not exceed your
actual costs, including reasonable profit. The methods (w unbundling your equipment and installation rates from cable
programming seroce rates and for determining your permitted equipment and uistaltation rateo io prescribed in Part It(unbundling)
artd mart III(rate-oewn;)of this form. Enter in the spaces below the rate figures you have calculated in Part tit of thio form Your
actual cable programming service equipment and irtstallataan charges may not exceed these raters although ti:ey nosy be lower
Permated Actual
(1)Otarge(s)for cable programming service installations (from lines 6 or Y of Equipment
and Installation Worksheet) $ $
(a) Hourly rate OR 8 $
(b)Average installation charges o ...
4
I Installation of unwired homes $ $
$ installation.-of prewired homes $ $
3 lnssmltation of addnwnai eonnemon at time cf initial installation $ $
4 Instaltulan,of addittimal connection requiring separate Installation $ $
S Odd Installations bpecrfy) 8 $
(2)Charge for d%anging tiers fif any)(From Lute 29 30 or 31 of Equipment and
lnssmRm$at Worksheet) $ $
19 M tures fterthw charsea far ada m'd eoltiecdow beyond thcoo ref ex-lGd ka yaw Installation charge, attnch a sheet
calculations and kms fortfa chalet addiborA cls. SEE plata to Equ!pntcvt and instntlatiast Wbrksltee2
Inatramdom
"X 999 wbaq 31
Arn=1 7449
PUBLIC NOTICE OF WRITTEN DECISION
NOTICE IS HEREBY GIVEN that, on March 28, 1995, the Contra
Costa County Board of Supervisors issued a written decision
disapproving certain rates charged by TCI Cablevision of East
County, TCI Cablevision of Walnut Creek and TCI Cablevision of
Contra Costa County (collectively "TCI" ) to subscribers within
unincorporated areas of Contra Costa County during the period from
September 1, 1993 through July 14, 1994 and ordering TCI to refund
the overcharges with interest to current subscribers The rates
affected by the decision are those charged for the basic service
tier, equipment and installation to the extent that such rates
exceed the maximum rates permitted by federal law
This notice is given pursuant to Section 76 936 (b) of the FCC
Cable Regulations A copy of the written decision is on file in
the Office of the Clerk of the Board of Supervisors, Room 106, 651
Pine Street, Martinez, California, and may be viewed there by all
interested persons
RIEPR ESENTAT ON LETTER
I Debra Boten Keith am the Rate Compliance Manager for TCI West
Inc The Forms 393 for Contra Costa County (CA0243 CA0289
CA1233 CA0346) were derived from the books and records of Tele-
Communications Inc (TCI) as well as other information maintained
by TCI as necessary To the best of my knowledge and belief there
were no material adjustments to the amounts used in the Forms 393
as a result of subsequent reviews and audits
4tt Wakk, CA CALA WJ,-
Date Debra Boten Keith
County of
)SS
State of
Subscribed and sworn before me this day of /--e-�
1995
ary Public
My commission expires 97
Contra Costa County
Auditor-Controller's Office
To Yat Burke Cable Franchise Administrator
From Paul Abelson, Systems Accountant —4 v
Date March 2, 1995
Re TCI Cable 393 Rate Application Reviews
I have reviewed TCI Cable's Form 393 Rate Applications dated June 14, 1994, for
internal consistency and completeness TCI submitted 3 applications one for TCI
Cablevision of East County, one for TCI Cablevision of Contra Costa County and one
for TCI Cablevision of Walnut Creek TCI met with us to discuss the applications, and
later, by correspondence provided additional explanation regarding both the
methodologies used to prepare them and the sources for amounts used They provided us
in writing, with a representation letter stating there were no year end adjustments
discovered subsequently which would have affected the amounts submitted in the
application
The work performed was not an audit of the data, however, based on the information
provided by the Applicant, it is my opinion that the application was prepared in
accordance with the FCC's instructions and that the amounts appear reasonable
cc Ken Corcoran Auditor Controller
Judith Van Note, Assistant Auditor Controller
Sandra Winn, Principal Accountant
cabop2 doc r�...�...,.._.GP-�---C»T,", DDIj.
TRA
METTIVED
MAR 3 1995
C� , I � 01