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HomeMy WebLinkAboutMINUTES - 06111996 - SD2 TO: BOARD OF SUPERVISORS Contra L, FROM: Phil Batchelor, County Administrator Costa County do,srq -�•fir" DATE: June 3, 1996 SUBJECT: REFUND OF APPLICABLE PORTION OF INSTALLATION RATES BY BAY CABLEVISION SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ISSUE a written decision ordering Bay Cablevision to refund to subscribers the portion of previously paid converter and installation rates in excess of those rates submitted on the May 14th working copy of Form 1205 and to roll back their rates to those permitted on that form. REQUIRE Bay Cablevision 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. APPROVE the Operator selected rate for the projected period for basic service rates on FCC Form 1240. FINANCIAL IMPACT: Franchise fees paid on the overcharges collected will need to be reimbursed to Bay Cablevision systems by the County. The determined amount will be subtracted from Bay Cablevision's next 1996 franchise fee payment. Based on estimates, this amount should not exceed $ 2,000. CONTINUED ON ATTACHMENT: YES SIGNATURE: yyRECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE L`APPROVE OTHER SIGNATURE(S): K_Y4 -S; ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER r 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 ON THE DATE SHOWN. ATTESTED �L � I I I `p i a Contact: PHIL BA HELOR,CLERK F THE BOARD OF cc: 0 SUPERVISORS AND COUNTY ADMINISTRATOR L BY DEPUTY BACKGROUND: In September, 1995, the Federal Communications Commission (FCC) adopted rules giving regulated cable operators the option of filing for rate adjustments on an annual basis instead of the existing quarterly system. In March, 1996, Bay Cablevision submitted FCC Form 1240, 1210s and 1205 to the County. The Cities of Richmond and Berkeley and Contra Costa County contracted with Jay Smith of Public Knowledge, Inc. to review the document. On May 20, 1996, Mr. Smith reported his findings to the Cable TV Administrator. Mr. Smith noted that the initial FCC Form 1240 filing was incorrect. After working with Bay Cablevision, a revised working copy was submitted on May 14, 1996. The basic service rate permitted on that form is nine cents more than the rate Bay Cablevision implemented on June 1, 1996. Because Bay Cablevision is charging less than the permitted rate, no refunds are due and staff finds that the rate is consistent with established FCC guidelines. However, the rates implemented on June 1, 1996 for the hourly service charge and converters are higher than that permitted by the FCC Form 1205 working copy of May 14, 1996. Therefore, refunds must be calculated and the rates must be rolled back to those permitted. (See Attachment A.) In accordance with Section 76.942 of the FCC rules, Bay Cablevision has been notified of the refund. Pursuant to Section 76.936 of the FCC rules, a written decision in a rate making proceeding must be issued whenever the Board of Supervisors disapproves an initial rate for the installation and converters' rates and the text of such decision must be made available to the public. - 2 - ATTACHMENT A 60 Adjusted Maximum Permitted Rates May 19 Form 1240 'Maximum permitted basic service rate- $12.3 5 Richmond Maximum permitted basic service rate- $12.34* Berkeley Maximum permitted basic service rate.- $12,34* Contra Costa County * Bay Cablevision indicates that it intends to charge$12.26, which is less than the maximum permitted rate. May 19 Form 1205 Remote control monthly rental $0.08 "Converter 1" $1.91 "Converter 2" $0.78 Installation of unwired homes $35.62 Installation of prewired homes $17.81 Additional connections at time of initial install $5.94 Additional connections requiring separate trip $17.81 Hourly Service Charge (HSC) $23.75 4 • 5v3/ WRITTEN DECISION ORDERING REFUNDS TO SUBSCRIBERS Bay Cablevision having previously submitted to the County FCC Form 1240 in March, 1996 covering rates charged for the basic service tier and equipment in unincorporated areas of Richmond; and The above-named licensee subsequently submitted to the County additional records supporting the figures stated in the FCC Form 1240; and The Cable TV Administrator having contracted with Public Knowledge, Inc. to have the FCC Form 1240 evaluated and all supporting records submitted by Bay Cablevision and having prepared a report to the Board; and The Cable TV Administrator having determined that Bay Cablevision has charged more than the maximum permitted rates for the hourly service charge and equipment for Bay Cablevision' s cable system in unincorporated Contra Costa County, having notified Bay Cablevision of the apparent overcharges and having afforded Bay Cablevision an opportunity to comment; and The Cable TV Administrator recommending that the Board issue a written decision, pursuant to Section 76. 936, ordering Bay Cablevision to refund the excess charges, 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 Bay Cablevision and any comments offered by Bay Cablevision or the public; NOW, THEREFORE, the Board DECIDES, ORDERS and DETERMINES as follows : The Board DETERMINES that Bay Cablevision has been given notice and opportunity to comment, as required by Section 76. 942 (a) of the FCC Cable Regulations; and Pursuant to Section 76. 936 of the FCC Cable Regulations, the Board DECIDES and ORDERS that Bay Cablevision refund to subscribers within unincorporated Contra Costa County all amounts received from subscribers from June 1, 1996 that exceed the maximum permitted rates for equipment and installation, as listed in the attached pages from the FCC Form 1240 working copy dated May 14, 1996; 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 Bay Cablevision 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 Bay Cablevision by means of a deduction from the license fees payable by Bay Cablevision for fiscal year 1996; and To the extent that the actual rates listed in the attached pages exceed the maximum permitted rates, the Board DISAPPROVES such excess; 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.