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10. City Code Amendment-Cable TV Rate RegulationLAW OFFICES MOSS & BARNE'fT A PROFESSIONAL ASSOCIATION 4800 NORWESP CENTER 1 90 SOUTH SEVENTH STREET MINNEAPOLIS, MINNESOTA 55402 - 4129 BRIAN T. GROGAN TELEPHONE (612) 347 -0300 TELECOPIER (612) 339 -6686 ( 612) 347 -0340 June 15, 1994 r Mr. Don Ashworth, City Manager City of Chanhassen 690 Coulter Drive P.O. Bog 147 Chanhassen, Minnesota 55317 Re: Rate Regulation Our File No. 27981.1 Dear Don: /Q l7Y OF,-H,4.r�Ih�._�, 0 Aj yP� f zee Pursuant to our conference call Cable Commission Meeting on Monday, June 13, 1994, I have drafted this letter to clarify the steps necessary to implement the decisions of the Commission regarding rate regulation matters. I understand the Commission determined to submit the rate regulatory ordinance to the City Council for consideration at its June 27, 1994 meeting. This June 27, 1994 meeting would be considered the Ordinance's first reading. The second reading for the Ordinance would be held on July 11, 1994. Once the Ordinance has been published and is "effective," written notice should be sent via certified mail, return receipt requested to Triax informing them that the City has submitted FCC Form 328 and adopted an ordinance consistent with the rules and regulations of the FCC. This written communication should also request that Triax submit all applicable FCC forms, in particular FCC Forms 1200 and 1205 as prescribed by federal law. For your convenience, I have attached a draft letter which you may utilize to communicate with Triax on this matter. Once again, this notification letter should be sent following the effective date of the rate regulatory ordinance. I also note that we have tentatively scheduled our next cable commission meeting for Monday, August 1, 1994. I will prepare an agenda in advance of that meeting and will address the following issues: 1. Remaining issues from Moss & Barnett's Reference Guide, I] 2. Update on rate regulation, and MOSS & BARNETT A PROFESSIONAL ASSOCIATION Page 2 June 15, 1994 ' 3. An update on the audit conducted by the Lake Minnetonka Cable Commission. ' After you have had an opportunity to review this letter and its enclosure, please do not hesitate to contact me with any questions or concerns you may have. ' BTG /peh 85ZBTG Enclosure 1 Very truly yours, MOSS & BARNETT A Professional Association Brian T. Grogan ORDINANCE NO. AN ORDINANCE GOVERNING THE PROCEDURES AND STANDARDS FOR THE REGULATION OF CABLE TELEVISION RATES PURSUANT TO THE RULES OF THE FEDERAL COMMUNICATIONS COMMISSION AND THE CABLE TELEVISION CONSUMER PROTECTION AND COMPETITION ACT OF 1992 The City Council of the City of Chanhassen ordains as follows: SECTION 1. Background and Purpose. A . On the day of City of Chanhassen, Minnesota a n dA adopted Ordinance No. to ( "Grantee ") right to construct, own, and television system in the City. 19 , the ( "City ") passed granting the nonexclusive operate a cable B. The Cable Television Consumer Protection and Competition Act of 1992 ( 0 1992 Cable Act ") was enacted on October 5, 1992, and became effective on December 4, 1992. The 1992 Cable Act amends the Cable Communications Policy Act of 1984 and, in particular, Section 623 (47 U.S.C. 543) governing the regulation of rates charged by cable television operators. C. On April 1, 1993, the Federal Communications Commission ( "FCC ") adopted rate regulations pursuant to the 1992 Cable Act. These FCC rate regulations were released May 3, 1993, and became effective September 1, 1993. In addition, on February 22, 1994, the FCC adopted additional rate regulations pursuant to the 1992 Cable Act. These additional rate regulations were released March 30, 1994, and became effective May 15, 1994. D. Pursuant to 47 C.F.R. Part 76, Subpart N, Section 76.910, on the day of , 1993, the City submitted FCC Form 328 -- Certification for Local Franchising Authorities - -to the FCC via Registered Mail, Return Receipt Requested. Pursuant to Section 76.910, the date on the return receipt, 1993, is to be considered the date filed. A copy of FCC Form 328 was also served on Grantee on , 1993, the same day it was filed with the FCC. n 1 E. Pursuant to Section 76.910, the City's certification becomes effective 30 days after the date filed. F. In adopting this Ordinance, the City reviewed applicable FCC regulations governing the basic service tier and provided a reasonable opportunity for consideration of the views of interested parties. G. This Ordinance will govern the procedures to be undertaken by the City for the regulation of Grantee's cable television rates pursuant to the 1992 Cable Act and the regulations of the FCC. SECTION 2. Full Regulatory Power Reserved, SECTION 3. r L All rates and charges for basic cable service and any other cable programming services, as defined by the 1992 Cable Act and applicable FCC regulations, shall, to the extent permissible, be subject to regulation by the City in a manner provided by this Ordinance. This Ordinance shall apply to all cable television system operators in the City. The Grantee and /or any other operator of a cable television system operating in the City shall be subject to the rate regulation provisions provided for herein, and those of the FCC at 47 C.F.R., Part 76, Subpart N. The City reserves the right to amend this Ordinance from time to time consistent with the requirements of the FCC, and state and federal law. Procedures For Implementing Regulation of Basic Cable Service. A. The City hereby adopts and shall follow the rules relating to cable rate regulation promulgated by the FCC at 47 C.F.R., Part 76, Subpart N. B. Upon adoption of this Ordinance, a City representative will send to Grantee and each operator of a cable television system in the City, via Certified Mail, Return Receipt Requested, a written notice, which shall include a copy of this Ordinance and the completed FCC Form 328. C. Within thirty (30) days after receipt of the notice referenced in Section 3.B., Grantee and any other cable television operator shall have -2- thirty (30) days to respond with rate and benchmark information utilizing applicable FCC Forms. 1. If the initial rates and /or any subsequent rate increases are within the FCC standards, as determined by the City, the rates will be effective thirty (30) days after submission. 2. If the City is unable to determine whether the proposed rates are within the FCC's standards, based on the material before it, or if the Grantee or any other cable operator has submitted a cost -of- service showing seeking to justify a rate above the FCC's reasonable rate level, the City may take an additional period of time to make a final determination and toll the effective date of the proposed rates for a commensurate period. a. The City may take an additional 90 days if it needs more time to ensure that a rate is within the FCC's rate standards. b. The City may take an additional 150 days to evaluate a cost -of- service showing seeking to justify a rate above the reasonable rate level. C. The City must issue a brief written decision regarding its invocation of the additional time period. D. 3. If no action is taken within the above referenced time periods, the proposed rates will go into effect, subject to subsequent refund orders if the City later issues a decision disapproving any portion of the proposed rates. 4. In all cases, the City will issue a written decision to approve the rate schedule, disapprove the rate schedule or continue for review. 5. If rates are in excess of the FCC's standards, the rates may be reduced by the City pursuant to applicable FCC regulations. After the initial rate schedule procedures are followed, as described in this Section, -3- I Grantee and /or any other cable operator shall, in conjunction with each change in the rates and charges applicable to basic cable service, ' conform to the standards of the FCC. Before any rate change is effective, Grantee and /or any other cable operator shall notify the City I 904Z140 of its requested rate change by giving the ' City thirty (30) days' advance written notice before the change is effective and by providing the City with its rates and ' applicable information pursuant to FCC regulations. E. To the extent specifically permitted by ' federal law and applicable FCC rules, Grantee and /or any other cable operator shall be ' permitted to appeal to the FCC for a review the decision of the City. of SECTION 4. Consultant, The City may utilize a rate consultant to advise it on proposed rate changes and to assist it in the procedures and the standards for review adopted by ' the FCC. A rate consultant may be any person who has sufficient background and experience, in the sole opinion of the City, to properly evaluate and ' analyze rates and charges. SECTION 5. Application of the Requirements in this Ordinance ' The requirements described in this Ordinance are applicable to the Grantee and all operators of cable television systems within the City subject to ' rate regulation according to the 1992 Cable Act and applicable FCC rules. ' DAY OF 1994. PASSED AND ADOPTED THIS , ' Attest: By_ I 904Z140 LAW OFFICES MOSS & BARNETT - A PROFESSIONAL ASSOCIATION O r 4800 NORWEST CENTER 90 SOUTH SEVENTH STREET MINNEAPOLIS, MINNESOTA 55402 -4129 BRIAN T. GROGAN TELEPHONE (612) 347 -0300 TELECOPIER (612) 339 -6686 t/ ( 612) 347 -0340 June 1, 1994 a. r a�� e.. r dry /►;�� � ��, Mr. Don Ashworth, City Manager `` LL City of Chanhassen ���� �ro �.��- �T� - "C-�� 690 Coulter Drive P.O. Box 147 Y eu : Chanhassen. Minnesota 55317 ' Mr. Bob Langley u,�, ,(j a >SC.e.� y • Triax Cablevision ' 1504 2nd Street SE Waseca, MN 56093 Re: Chanhassen Cable Committee Meeting on Monday, June 13, 1994 a , t ' 9:00 a.m. Our File No. 27981.1 Dear Don and Bob: ' The City of Chanhassen has scheduled a meeting of the Cable Committee for ' Monday, June 13, 1994 at 9:00 a.m. This meeting will be conducted via telephone conference since the only issue to address is the Rate Regulation Ordinance attached to this letter. I will arrange the telephone conference to begin at 9:00 a.m. with the following individuals: ' 1. Don Ashworth, together with other City representatives including the Mayor and Assistant City Manager; ' 2. Bob Langely; and 3. Jane Bremer. ' I understand the clarification to the line extension policy has been executed by letter dated April 18, 1994. Therefore, the only issue which must ' be discussed at this time is the Rate Regulation Ordinance which I have enclosed for your review. Please familiarize yourself with the Ordinance and be prepared to discuss any issues which should be addressed before the , document is presented to the Chanhassen City Council. 1 MOSS & BARNETT A PROFESSIONAL ASSOCIAnON Page 2 June 1, 1994 ' Should you have any questions regarding the enclosed Rate Regulation Ordinance prior to our scheduled meeting date please do not hesitate to contact me. In addition, should conflicts arise with the scheduled meeting ' date please contact me as soon as possible so I may arrange an alternative time to conduct the meeting. n k n Jane Bremer, Esq. (w /enclosures) Very truly yours, MOSS & BARNETT A Professional Association Brian T. Grogan G ' BTG /slo 85ZBTG Enclosure cc: Mayor Don Chmiel (w /enclosures) Mr. Todd Gerhardt (w /enclosures) k n Jane Bremer, Esq. (w /enclosures) Very truly yours, MOSS & BARNETT A Professional Association Brian T. Grogan G , 1994 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. Bob Langley Triaa Cablevision 1504 2nd Street SE Waseca, MN 56093 Re: The City of Chanhassen, Minnesota - -Rate Regulation Dear Mr. Langley: Enclosed please find a copy of Ordinance No. passed and adopted by the City of Chanhassen, Minnesota ( "City ") at its July _, 1994 meeting. The Ordinance governs the procedures and standards for the regulation of cable television rates pursuant to the rules of the FCC and the Cable Television Consumer Protection and Competition Act of 1992. Also enclosed is a copy of the City's FCC Form 328 which was filed with the FCC on 1994. According to the rules and procedures of the FCC governing rate regulation, Trial Cablevision has 30 days after receipt of this notice to respond to the City with rate and benchmark information. The rate and benchmark information should be contained on FCC Form 1200/1205 or applicable FCC cost of service forms. I look forward to your response. Very truly yours, Don Ashworth City Manager BTG /slo 85ZBTG(7) Enclosures cc: Brian T. Grogan, Esq.