2g. City Code Amendment-Cable TV Rate Regulation, Final ReadingCITY OF
CBANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: July 7, 1994
SUBJ: Approve City Code Amendment Regarding Cable TV Rate Regulation, Final
Reading; and Approval of Summary Ordinance for Publication Purposes
On June 27, 1994, the city council approved fib wading of the attached ordinance regarding
cable tv rate regulation. Approval of final rea�g� recommended as well as approval of the
summary ordinance for publication purposesz
MEMORANDUM
I]
r
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
I 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
anu 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 ( "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.
SECTION 2.
SECTION 3.
Procedures For Implementing Regulation of Basic
Cable Service. I
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 '
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.
Full Regulatory Power Reserved.
'
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. I
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 '
I
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
thirty (30) days to respond
with rate
and
schedule, disapprove
benchmark information utilizing
applicable
FCC
continue for review.
Forms.
showing seeking to justify a rate
'
1. If initial
C. The City must issue a brief written
'
the rates
and /or
any
may
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
schedule, disapprove
standards.
'
b. The City may take an additional 150
continue for review.
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.
may
3. If no action is taken within the above
'
referenced time periods, the proposed
to
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
written decision to
City will issue a
approve the rate
schedule, disapprove
the rate
schedule or
continue for review.
5. If in
rates are excess
of the FCC's
standards, the rates
may
be reduced by
the City pursuant
to
applicable FCC
'
regulations.
D. After the initial rate schedule
procedures are
followed, as described
in
this Section,
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 '
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 of '
the decision of the City.
SECTION 4.
Consultant.
'
The City may utilize a rate consultant to advise
it
on proposed rate changes and to assist it in
procedures and the standards for review adopted
the
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.
PASSED AND
ADOPTED THIS DAY OF 1994.
'
Attest:
By
904Z140
CITY OF CHANHASSEN
' CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
' SUMMARY 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
On July 11, 1994, the Chanhassen City Council adopted an ordinance granting to Triax
Cablevision the nonexclusive right to construct, own, and operate a cable television system in
the city. This ordinance will govern the procedures to be undertaken by the city for the
' regulation of cable television rates and other aspects of the cable television franchise pursuant
to the regulations of the FCC. A copy of the entire ordinance is available for inspection at
City Hall.
' This ordinance shall take effect upon its passage and publication.
Don Ashworth
City Manager
(Published in the Chanhassen Villager on