12. Cable TV 1
l �.
LAW OFFICES
MOSS & BARNETT -„....."
A PROFESSIONAL ASSOCIATION
I HERMAN J. RATELLE
PATRICK P P J. MICHAEL HIRSCH 4800 NORWEST CENTER
WHBRTY
EDWARD
J. BLOMME PETER A. KOLLER NANCY M. KISKIS
1 RICHARD]. KHLBER HEIDI A. SE . JONES
WAYNE A. VANDBR VORT ANN K. NEWHALL 90 SOUTH SEVENTH STREET LAURA 3. McKNiGHT CHARLES E JONES
DONALD E- WIESE MICHAEL J. AHBRN SUSAN C. RHODE BRIAN T. GROGAN
PAUL VAN VALKENBURG MAHER J. WEINSTEIN MINNEAPOLIS, MINNESOTA 55402 -4129 THOMAS M. HUGHES CORY LARSEN BETTENGA
• MICHAEL L. FLANAGAN PHILLIP GAINSLEY
W. SCOTT HERZOG JEFFREY L. WATSON S MICHAEL COLLOTON DANIEL RG P DAMOND
THOMAS J. SHROYER TELEPHONE (512 ( 347 -0300 STEVEN Z. KAPLAN MARGARET K. LAHAMMBR
I WAYNE A. HBRGOTT
)AMISS H. O'BAIBN DALE M. WAGNER HICK HAY
TELECOPIER �612� 339 -6686 JEANNE K. STRETCH
REESE E. CHEZICK
PAUL C. NEIMANN BARBARA G. STUART
EDWARD L. WINER DAVID P JBNDRZE]HK M. CECILIA MY RETIRED
ADRIAN E. HBRBST DANIEL J. GOLDBERG PAUL T. EIDSNESS
WILLIAM N. KOSTER CURTIS D. SMITH F EMON C. F L ET CHR
DANIEL R. SUNDELL FREMONT C. PLETCHER
WILLIAM A. HAUG DAVE F SENGER JOSEPH R. KLEIN VERNE W. MOSS
I CHARLES A. PARSONS, JR.
LOUIS'. SPELTZ 347 -0448 DAVID M. JAMES H. HENNESSY
RICHARD J. JOHNSON MITCHELL H. COX ANN M. MEYER STANLEY R. STASEL
HOWARD S. COX
ROBERT J. LUKHS MICHAEL]. BRADLEY VINCENT HENRY HENRY LANDBR
WR17'BR'S DIRECT DIAL NUMBER
11 October 13, 1993
II Mr. Don Ashworth
City Manager
City of Chanhassen
I 690 Coulter Drive
P.O. Box 147
Chanhassen, Minnesota 55317
I RE: CABLE TELEVISION COMMITTEE
OUR FILE NO. 27981.1
I Dear Mr. Ashworth:
Enclosed please find the Agenda for the October 20, 1993, Cable
I Television Committee meeting. Please call me if you have any questions
regarding the items on the Agenda. I look forward to meeting with the
Committee on that date.
1 Very truly yours,
(::01_401,;(-14-4"-- .
Adrian E. Herbst
II AEH /mkr
Enclosure
2227ZAEH
I cc: Mr. Bob Langley, Triax Cablevision (with enclosure)
Jane Bremer, Esq.
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11 AGENDA
1 CITY OF CHANHASSEN, MINNESOTA
CABLE TELEVISION COMMITTEE MEETING
WEDNESDAY, OCTOBER 20, 1993
9:00 A.M.
1
11 I. CALL TO ORDER
II. ROLL CALL
III. RATE REGULATION
1
IV. CUSTOMER SERVICE STANDARDS
V. LINE EXTENSION
VI. METRO CABLE NETWORK /CHANNEL 6
VII. REFERENCE GUIDE
VIII. OTHER
IX. ADJOURN
1
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MOM J. WUS Nan A. NOUNS COI
September 29, 1993 1
Don Ashworth
City Manager
City of Chanhassen 1
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317 1
RE: CUSTOMER SERVICE
Dear Mr. Ashworth:
1
Enclosed is a draft notice to the cable company along with an outline to
assist you in implementing authority to enforce FCC customer service 1
standards.
After you have had an opportunity to review the enclosed materials please
do not hesitate to contact as with any questions you may have regarding hov II
the City may begin to implement the new rights afforded franchising
authorities under the 1992 Cable Act and FCC regulations. In addition, as new
FCC regulations are released, please feel free to contact me for further 11
information.
Than you for the opportunity to be of service. I look forward to II
working with you on the City's cable television - related needs.
Ve yours,
Adrian E. Herbst
AES /mkr
262559 1
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1993
1
CERTIFIED MAIL
REI Mti =CREPT MOUT=
TRIAX CABLEOISIOMT
RE: Consumer Service - Adoption of 1992 Cable Act and FCC Rules
Dear ! _s
Pursuant to Title 47 CFR, Part 76, Subpart R, Section 76.309 ( "Customer
Service Standards "), a franchising authority must furnish affected cable
r operators with ninety (90) days advance written notice of its intent to
enforce the Consumer Service Standards. The City of Chanhassen ( "City ") has
reviewed the Customer Service Standards and the existing provisions of the
Franchise Ordinance and the agreement between Triaz Cablevision and the City.
It is the City's understanding that the Customer Service Standards nay be
enforced upon notice provided to Triaz Cablevision. Further, the City
understands that-it can enforce any existing Franchise provisions relating to
consumer service.
The City has determined to enforce the Customer Service Standards and
reserves the right to also enforce existing consumer service provisions in the
City's Franchise with Triaz Cablevision. The City will enforce the most
stringent provision should a provision in the Customer Service Standards or
1 the Franchise of the City address the same issue. In those cases where
provisions of the Customer Service Standards are not addressed in the
Franchise, any such new requirements will be enforced.
We recognise that it may be somewhat cumbersome to coordinate these
various requirements. In this regard, we request that you communicate with
Mr./Ms. for the City, and develop an
agreed upon approach to ensure that both the City and Triaz Cablevision fully
understand what requirements exist, as well as steps that will be taken by
Triaz Cablevision to ensure compliance. With respect to requirements in the
Customer Service Standards relating to response to telephone calls, response
to installation and maintenance calls and other such matters, we recommend
that a form be included with your regular reports to the City identifying
1 compliance with these requirements.
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THEE FCC'S _CUSTOMER SERVICE STANDARDS
ADOPTED MARcH11; RELEASED APRIL 7, 1993
PREPARED BY MOSS & &4RNETT
• Copyright 1993
' 1. STANDARDS ARE EFFECTIVE JULY 1.1993
- FRANCHISING AUTHORITIES CANNOT ENFORCE UNLESS
• OPERATOR 1S PROVIDED 90 DAYS WRITTEN NOTICE
- SENT VIA CERTIFIED MAIL
1
2. IMPACT ON EXISTING CUSTOMER SERVICE FRANCHISE PROVISIONS
- IF THEY ARE LESS STRICT
• FRANCHISING AUTHORITY CAN ENFORCE FCC
1 STANDARDS
- IF THEY EXCEED FCC STANDARDS
• MAY BE ENFORCED THROUGH TERM OF FRANCHISE
1
1 3. FRANCHISING AUTHORITY IS CHARGED WITH ENFORCEMENT
- FCC WILL STEP IN ONLY
• "TO ADDRESS SYSTEMIC ABUSES THAT UNDERMINE THE
1 STATUTORY OBJECTIVES"
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4. FCC STANDARDS DO NV PRECLUDE FRANCHISING AUTHORITIES 1
FROM
AGREEING WITH
OPERATOR TO MORE STRINGENT 1
REQUIREMENTS
• ENACTING AND ENFORCING ANY CONSUMER PROTECTION
LAWS NOT PREEMPTED BY FCC
- ENACTING AND ENFORCING REGULATIONS WHICH ADDRESS
(OR EXCEED) MATTERS NOT OUTLINED IN FCC STANDARDS •
• NEED NOT ADDRESS OTHER VIDEO PROVIDERS
• ADDITIONAL 90 DAY WRITTEN NOTICE TO OPERATOR 1
PROBABLY REQUIRED
ORS (LESS 1.000 SUBS) MAY SEEK FCC
5. SMALL SYSTEM OPERAT ( } •
WAIVER. BUT MUST
••
- SHOW COST BURDENS
- PROPOSE ALTERNATIVES ,
- GIVE DATE FOR END OF WAIVER
- ATTACH VIEWS OF FRANCHISING AUTHORITY 1
6. CONTENT OF FCC STANDARDS 1
A. NORMAL BUSINESS HOURS ,
- IN EXCESS OF 9-5
• BASED ON SIMILAR COMMUNITY BUSINESSES ,
B. NORMAL OPERATING CONDITIONS 1
- WITHIN CONTROL OF OPERATOR I
- DOES NOT INCLUDE-POWER/TELEPHONE OUTAGES,
SEVERE WEATHER, ETC.
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' G TELEPHONE ACCESS
- LOCAL OR TOLL-FREE UNE AT ALL TIMES
' - TRAINED REPRESENTATIVES AVAILABLE
1 • ANSWERING MACHINE AFTER HOURS
' D. PERSONAL ACCESS FOR
- BILL PAYING
1 - CUSTOMER INQUIRIES
• MUST BE CONVENIENTLY LOCATED
1
E RESPONSE TIMES
- 90% FULFILLMENT (MEASURED QUARTERLY)
• ANSWER TELEPHONE WITHIN 30 SECONDS
30 SECONDS FOR ANY TRANSFER
1 • BUSY SIGNAL LESS THAN 3% OF TIME
F. INSTALLATION, OUTAGES, SERVICE GALLS
' - 95% FULFILLMENT (MEASURED QUARTERLY)
1 • STANDARD INSTALLATIONS (125 FEET)
- COMPLETED WITHIN 7 BUSINESS DAYS
1 • RESTORE SERVICE WITHIN 24 HOURS AFTER
INTERRUPTION
1 • PROVIDE APPOINTMENT WINDOWS
- SPECIFIC TIME OR 4 HOUR BLOCK
1 • IF OPERATOR RUNNING LATE, MUST
CONTACT CUSTOMER
1 • IF NECESSARY, RESCHEDULE AT TIME
CONVENIENT TO CUSTOMER
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G. CUSTOMER COMMUNICATIONS
1
- MUST NOTIFY SUBSCRIBERS AT TIME OF INSTALLATION,
ANNUALLY AND /OR UPON REQUEST REGARDING
I
• PRODUCTS AND SERVICES
• PRICES, OPTIONS, CONDITIONS 1
• INSTALLATION AND MAINTENANCE POLICIES
• USE OF SERVICE, INCLUDING CHANNEL POSITIONS 1
• BILLING AND COMPLAINT PROCEDURES
• OPERATOR'S NUMBER AND ADDRESS
• OPERATOR MUST NOTIFY SUBSCRIBER OF CHANGES IN I
ABOVE WITHIN 30 DAYS
IL BILLING 1
- MUST BE CLEAR, CONCISE, AND UNDERSTANDABLE
- MUST COVER AT LEAST 1
• BASIC, I
• PREMIUM, AND
• EQUIPMENT SERVICE CHARGES
- MUST INCLUDE ALL ACTIVITY IN PERIOD, INCLUDING
• OPTIONAL CHARGES,
• REBATES, AND ,
• CREDITS
- MUST RESPOND TO DISPUTED BILL WITHIN 30 DAYS
I
• MUST REFUND CHECKS THE EARLIER OF
• 30 DAYS, I
• NEXT BIWNG CYCLE, QB
• RETURN OF EQUIPMENT ON TERMINATION
- MUST PROVIDE CREDITS 1
• NEXT BILLING CYCLE AFTER AGREEMENT ON •
CREDIT
Please contact Brian T. Grogan, Esq., 612 -347 -0340, with questions. 1
BTG/kJd
674Z140
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II 772Z140
II CHANHASSEN, MINNESOTA AGENDA ITEM NO. V
CABLE TELEVISION COMMITTEE
II ITEM DATE
II LINE EXTENSION OCTOBER 20, 1993
' Over the past y ear, an issue has arisen regarding Triax's
extension of cable into new developments in the City, We
1 understand that land developers are generally required by Triax
to provide up -front capital, which Triax uses to purchase
necessary equipment. Triax then installs the equipment and
1 reimburses the developer for its up -front contribution. This
arrangement has proved inefficient and has often resulted in
Triax being forced to go back into developments well after they
II are completed, resulting in disruption of grounds and delay in
providing cable television service to the new residents of the
development.
1 In an effort to resolve this matter, representatives of
the City and Triax have met and tentatively agreed to a process
under which each developer will be required, as part of its
1 Development Contract with the City, to demonstrate its ability
to pay up -front capital costs to Triax for the installation of
all necessary cable, equipment and facilities within the
development. The City and Triax will enter into a side
1 agreement stipulating that if such a provision is contained
within the City's Development Contracts, Triax will undertake
all necessary steps to ensure prompt installation in the
1 developments which meet the line extension criteria outlined in
Article V, Section 2 of the Cable Television Franchise
Ordinance for the City of Chanhassen.
11 We reviewed the City's form Development Contract
(Developer Installed Improvements) to determine what
modifications should be made to ensure prompt installation of
1 cable. Section 4 obligates the developer to install and pay
for Underground Utilities, including CATV. Section 6
establishes the amount of the letter of credit, or other form
1 of security, provided by the developer as security for the
performance of its obligations under the Development Contract.
Items are specified, along with dollar amounts, to show how the
security fund amount was calculated.
I However, it does not appear that the security funds
provided by the developer include any sums to cover
1 installation of underground utilities, including cable. We
recommend the City's form Development Contract be revised to
include the provision of security funds for the installation of
1 underground utilities, including cable.
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772Z140 II
In addition, we have attached a draft letter of agreement
for Triax and the City of Chanhassen regarding this
clarification to the line extension policy. The Cable
Television Committee should review this language and make all II modifications and changes as necessary. Thereafter, the
revised agreement will be forwarded to Triax for their review
and consideration.
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1 772Z140
1 IETTER OF AGREEMENT
I [To be typed on Triax letterhead.]
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I Mr. Don Ashworth
City Manager
City of Chanhassen
I 690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55371
1 RE: Clarification to Line Extension Policy
Dear Mr. Ashworth:
1 Triax Midwest Associates, L.P. (Triax) hereby agrees to
undertake all necessary steps to install cable television
I equipment, wires and facilities in all developments meeting the
line extension criteria outlined in Article V, Section 2 of the
Cable Television Franchise Ordinance of the City of Chanhassen
( "Franchise "), so long as the City requires the developer to
1 enter into a development agreement which (1) contains a
provision requiring that such developer provide for
installation of cable in the subject development and
I (2) requires the provision of funds as security for the
installation of cable in the subject development. Triax will
exercise its best efforts to undertake such installation at the
1 same time other public utilities are installed so as to
minimize disruption to the grounds within the development.
In the event Triax substantially delays installation or
I otherwise violates the provisions of this agreement or Article
5, Section 2 of the Franchise, the City shall have the right to
issue a notice of default for violation of a material term of
I the Franchise and pursue all appropriate remedies against Triax.
If the City does not require a developer to enter into a
development contract containing the provisions described above,
I Triax shall be relieved of its obligation to immediately
install cable in concert with other public utilities. However,
1
772Z140 1
CHANHASSEN, MINNESOTA AGENDA ITEM NO. VII
CABLE TELEVISION COMMITTEE
ITEM DATE
REFERENCE GUIDE OCTOBER 20, 1993
Moss & Barnett has developed a Reference Guide for the
1
City of Chanhassen in order to identify the new requirements of
the 1992 Cable Act and applicable FCC regulations. The
Reference Guide attempts to summarize the voluminous provisions
of the 1992 Cable Act and FCC provisions. Attached is a copy
of the Reference Guide Moss & Barnett has tailored for the City
of Chanhassen.
We have described, on a tailor -made basis, the aspects of
Chanhassen's Franchise Ordinance which may be amended or
changed in order to fully implement the 1992 Cable Act and
requirements of new FCC regulations.
The Committee should review the recommendations and 1
coordinate with Moss & Barnett to follow -up on any of the items.
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774Z140
Chanhassen, Minnesota
Reference Guide for the 1992 Cable Act
October 12, 1993
Prepared by:
Adrian E. Herbst
• Brian T. Grogan
M. Cecilia Ray
• MOSS & BARNETT
• A Professional Association
4800 Norwest Center
90 South Seventh Street
Minneapolis, Minnesota 55402 -4129
(612) 347 -0300
774Z140
INTRODUCTION
The Reference Guide for the 1992 Cable Act ( "Reference Guide ") is intended to provide Chanhassen officials with an overview
of significant provisions of the 1992 Cable Act which may have an impact on the cable television franchise ( "Franchise ") between
the City and its current cable operator, Triaz Midwest Associates, L.P. ( "Triaz "). On each issue, there is a brief summary of
the applicable provisions of the 1992 Cable Act, any applicable FCC regulations, a brief description of relevant Franchise
provisions, and Moss 8 Barnett's recommended action and /or options.
In preparing this Reference Guide, we reviewed and analyzed an unnumbered ordinance entitled "Cable Television Franchise
Ordinance -- City of Chanhassen" signed May 7, 1984. No other documents were available for our review.
The Reference Guide is designed to provide City officials with an outline of the necessary action and /or options which
should be considered in order to effectively implement the provisions of the 1992 Cable Act and to continue effective
enforcement and administration of the Franchise. it provides a "snapshot" of current regulatory conditions in the field of
cable communications, as of October 12, 1993. The City is cautioned that subsequent events may modify these conditions. The
FCC will issue additional rules. Court cases, some of which are now pending, will be decided which interpret and further refine
the laws and regulations summarized in this document. New laws may even be passed by the U.S. Congress that change the terms of
the 1984 and 1992 Cable Acts.
This fluid situation reflects the dynamics of the industry's technologies. Almost daily, new and innovative ideas take
shape to further enhance communications. In order to effectively represent its citizens in this environment, it will be
important for the City officials to stay informed of relevant developments.
•
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M IIIIIII MI M MI ON = MI M I • M M M 1111111 1111111
1 1 1 1 1 1 1 1 1 1 r 1 1 r 1 1 11111 1
7652140
Summary of FCC Franchise Recommended
Issue 1992 Cable Act Regulations implications Action /Options
1. Competitive Franchises A franchising authority may NOT APPLICABLE Article II Section 1 -- No action necessary. City
not grant an exclusive franchise granted must comply with requirement
franchise and may not is non - exclusive. that it not unreasonably
unreasonably refuse to award refuse to award an additional
an additional competitive competitive franchise.
franchise.
2. Equipment Compatibility By October 5, 1993, the FCC The FCC solicited comments Article III Section 2C No action recommended at this
must report to Congress on focusing on the nature and and Article III Section time. Reevaluation should
the means of assuring extent of the compatibility 5A-- grantee shall occur upon issuance of the
compatibility between TV's problem between cable systems continually operate its FCC regulations.
and VCR's, and cable systems, and consumer electronic cable system in
consistent with prevention of devices, including cable compliance with the
cable service theft, so that system operating technologies franchise and all
cable subscribers may enjoy and practices, and the applicable FCC
the full benefit of both extended features included in regulations.
cable programming and the consumer equipment.
functions available on their Article XI Section
TV's and VCR's. By April 5, 58 -- grantee to comply
• 1994, the FCC must issue with all standards,
regulations to assure such regulations and
compatibility. procedures imposed by
federal, state, or local
law.
Article VI Section
4E -- provision for
negotiated amendments to
the franchise.
3. Technical Standards By October 5, 1993, the FCC Full tent of regulations Article III Section 2C No action recommended at this
must issue regulations not yet available. and Article III Section time. Reevaluation should
establishing minimum 5A-- grantee shall occur upon issuance of the
technics' standards for cable continually operate its FCC regulations.
systems' technical operation cable system in
and signal quality. compliance with the
franchise end all
applicable FCC
7652140
Summary of FCC Franchise Recommended
Wm 1992 Cable Act geaulations =malications )►ction /0ations
Thereafter, the FCC must regulations.
• periodically update these
standards. A franchising Article XI Section
authority may (1) require as 5B -- grantee to comply
part of a franchise with all standards,
(including in a modification, regulations and
renewal, or transfer) procedures imposed by
provisions for enforcement of federal. state, or local
these FCC technical standards, law.
and (2) apply to the FCC for
a waiver to impose standards Article XI Section
which are more stringent than 4E -- provision for
the FCC technical standards. negotiated amendments to
the franchise.
4. Basic Service Tier The cable Operator must FCC rules on regulation of No section addresses. The cable operator is
provide subscribers with a rates, issued April 1, 1993. required to provide a Basic
separately available basic define the "Basic Service ' Service Tier to all
service tier, to which Tier" identically to the subscribers. This is the
subscription is required for definition provided in the tier of programming subject
any other tier of service. Cable Act. to rate regulation by the
The basic service tier City, and the equipment used
consists of (1) all signals to obtain this tier of
• carried under the "Must service is also subject to
Carry" provisions) (2)•any the City's rate regulation
PRO access channels required (see Sections 9 and 10, and
by the franchise to be Exhibit A, herein). The
provided to subscribers; City should review the Basic
• (3) any other TV broadcast Service Tier program
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alli MI lall all I ME ME 111111 NM MI 111111 111111 Ma 1111 Mil alli MI MB MI 111111
• MN MN • MN MN • r r • • MR MI MN • OM MI Ma UM
7652140
Summary of FCC Franchise Recommended
Isaue 1992 Cable Act Regulations jmplications Action /0ptione
signals carried (ezcept offering made by the cable
distant signals); and (4) any operator and require
other programming the compliance with the Cable
operator chooses to place in Act provisions.
this tier.
5. Tier Buy - Through k cable operator may not The FCC adopted regulations No specific provision Grantee is required to comply
require subscription to any defining systems subject to addresses issue. Article with 1992 Cable Act provi-
tier (ezcept Basic) as a compliance prior to October 5, III Section 2C, Article sions. City should evaluate
condition of access to video 2002, as those with capacity III Section 5A, and whether, or to what extent,
programming offered on a per to offer basic service and Article X Section 58 grantee now is in compliance.
channel or per program basis. programming on a per - channel generally require
Compliance must be met when or per- program basis without compliance with
technological limitations are also providing other technological
requirements of FCC
regulations.
eliminated, or by October 5, intermediate tiers of service
2002. either: (1) by controlling
subscriber access to nonbasic
channels through addressable
equipment electronically
controlled from a central
point; or (2) through
installation, noninstallation
or removal of "trap" devices
at subscriber premises without
system alteration or
degradation in technical
quality. Compliance waivers
will be provided if
enforcement would cause a
cable operator to increase its
rates.
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7652140
Summary of FCC Franchise Recommended
Lim 1992 Cable Act Regulations Implications Action /options
6. Rearranging Programming A franchising authority may NOT APPLICABLE Article IV Section The City should consider
Offerings require a cable operator to 1-- limitations placed on amendment to the franchise
(1) provide 30 days' advance grantee's ability to add to require the notice
written notice of any change and delete programming. provided for under the Cable
in channel assignment or in Act. Amendment may occur
the video programming service pursuant to Article IV
provided over any channel and • Section 1C.
(2) give subscribers written
notice that comments on
programming and channel
position changes are recorded
by the franchising authority.
7. Emergency Alert System Cable operators must comply No timeline established for Article III Section 5 -- Periodically teat to monitor
with such regulations as the issuance of FCC regulations. grantee is to provide an that emergency override
FCC prescribes to ensure emergency override capacity is operational.
subscribers receive the same channel for audio Reevaluate upon issuance of
emergency information given override on all channels. FCC regulations.
by the emergency broadcast
system.
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765Z140 •
Summary of FCC Franchise Recommended
,sane 1992 Cable Act Regulations Implication' Action /Options
t. PEG Requirements In awarding a franchise, a NOT APPLICABLE Article III Section No changes required.
franchising authority may 5-- grantee must provide
require adequate assurances at least 4 channels for
that the cable operator will access use. Grantee to
provide adequate PEG access establish rules for use
channel capacity, facilities, of channels. Grantee to
equipment, or financial provide Access Studib and
support dedicated for PEG establish hours of
access facilities and operation. Grantee to
equipment. provide certain access
production equipment.
9. Programming Rate Subject to FCC regulations, a On April 1, 1993, the FCC took Article VI Section As soon as possible, the
Regulation franchising authority may its "first step" towards 4- 1-City and grantee must City should take those
regulate rates charged for the reregulation by adopting rules follow procedures actions prescribed by the
basic cable service tier and governing the rates cable outlined in this section regulations as
for other cable programming operators charge for basic for all rate changes, to pre - conditions to Basic
services (excluding per- service and cable programming the extent legally Cable Service rate
channel or per - program services. 'Under the new enforceable. ' . regulation, beginning with
offerings), when the cable regulations, every cable certification by the FCC.
• system is not subject to system not subject to The City should also be
"effective competition." "effective competition" will prepared to quickly assess
have "reasonable" rates the reasonableness of the
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7652140
Summary of FCC Franchise Recommended
Issue 1992 Cable Act Regulations Implications Action /Options
"6ffective competition" weans determined by a formula (a grantee's charges for other
that: (1) fewer than 30% of "benchmark ") based on the cable programming services;
the households in a franchise pricing practices of systems complaints to the FCC may be
area subscribe to a cable that do face competition. brought on existing rates
system; Qr (2) the franchise Cable systems which charge only within 180 days
area is (a) served by at rates above this reasonable following adoption of the
least two unaffiliated multi- level may experience a regulation. Thereafter,
channel video programming reduction of up to 10% by complaints may be made only
distributors, each of which franchising authorities and /or after a rate increase and
offers comparable video the FCC. The 10% reduction only within a "reasonable"
programming to at least 50% represents the average period of tine. See
of the households in the difference between competitive Exhibit S for information
franchise area, egfi (b) the and noncompetitive rates regarding the rate
number of households determined by the FCC's rate regulation process.
subscribing to programming survey conducted in the fall
services offered by the multi- of 1992.
channel video programmers
other than the largest one On July 15, 1993, the FCC
• exceeds 15% of the franchise adopted a Notice of Proposed
area households; S!L (3) a Rulewaking on its cost-of-
.
multi-dhannel programming service showings submitted by
system operated by a local cable operators seeking to
franchise authority offers justify rates above levels
programming to at least 50% determined under the
of the franchised area "benchmark" method of rate
households. regulation. The comment period
on the proposed rules closed
August 25 and the reply
comment period ended September
14.
In addition, the FCC ordered a
freeze on rates until November
15, 1993 for cable services
other than premium and
pay -per -view service
offerings. The rate freese is
•
intended to prevent cable
-6-
lall 1.111 MEM MI ME 111111 1111 ME MI 111111 111111 Ell IIIII NM NIP NM NM MIN MN
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11111 1 1 1
•
7652140
Summary of FCC Franchise Recommended
jsaue 1992 Cable Act $equlationa Imolications Action /Options.
operators from raising rates,
and effectively undermining
the purpose of the 1992 Cable
Act, during the period between
adoption of the FCC's rules
and the date on which local
franchising authorities can
establish regulation of the
basic service tier or on which
consumers can file complaints
with the FCC concerning
unreasonable rates for cable
programming services (effec-
tive date was September 1,
1993).
See Exhibit A for additional
information on the FCC's rate
regulations.
10. Equipment Rate the FCC must issue regulations FCC regulations identify the Article VI Section 4. If interested in regulating
Regulation to include standards establish- equipment subject to rates, the process described
ing, on the basis of actual regulation as the converter in Exhibit A should be
cost, the price or rate for box, remote control unit, reviewed and followed.
(1) installation and lease of connections for additional
equipment used by subscribers television receivers, and
to receive the basic service inside cable wiring. the FCC
tier, and (2) installation and limits operators to recovering
lease of monthly connections the incremental costs of
for additional television additional outlet installation,
receivers. if installed at the time of
initial service installation.
Costs of cable wiring used for
additional connections must be
recovered through one -time
charges. or charges that end
when the operator has
-7-
7652140
Summary of FCC Franchise Recommended
Ipsue 1992 Cable Act geaulationa jmolications Action /Ovtions
recovered its costs. The FCC
also requires unbundling of
charges for equipment from
other charges for cable
service. See Szhibit S for
additional information on the
FCC's rate regulations.
11. Customer Service A franchising authority may The FCC adopted on March 11 Article M Section 2 and The City should enforce the
Provisions establish and enforce and released April 7. 1993, an 3-- subscriber contracts FCC standards and consider
customer service requirements order establishing customer limited to 12 months, adopting stricter
of a cable operator. Sy service standards. The grantee allowed to adopt standards. The standards in
April 3, 1993. the FCC must standards are merely "base- reasonable costomer place pursuant to the
establish standards by which line" standards which a service procedures, franchise provisions were
cable operators may fulfill franchising authority may subscribers to be not available for our
their customer services supplement or ezceed. informed of procedures at review. We recommend the
requirements. However, a Franchising authorities may least once a year. A City include in the
franchising authority and 1) provide cable operators 90 subscriber complaint standards a requirement for
cable operator may agree to days advance written notice procedure is established periodic subscriber
customer service requirements that FCC customer service within this Section. satisfaction surveys. 90
ezceeding the FCC standards, standards will be enforced days advance written notice
and the 1992 Cable Act does locally; 2) continue enforcing Article III Section is required prior to
not prevent the establishment existing, stricter franchise 4-- grantee is required to enforcement of the FCC
or'enforcement of any local standards; or 3) adopt maintain a studio within Standards. See Inhibit 1
or state law or regulation stricter or additional the City. for further information.
which imposes customer ser- standards at any time.
vice requirements exceeding
the FCC standards. or See Rzhibit H for a more
addresses other matters. detailed discussion of the
FCC's customer service
standards.
•
. -6-
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7652140
Summary of FCC Franchise Recommended
Issue 1992 Cable Act Emulations Implications Action /Options
12. Subscriber Billing A cable operator may identify Billing itemisation must be See generally, Article VI Subject to the FCC regula-
Requirements as a separate line item on consistent with FCC regulations Section 3. tions, the grantee will be
subscriber bills (1) the issued on rate regulation. See entitled to itemise on sub -
amount of the bill assessed Exhibit B regarding customer scriber bills the categories
as a franchise fee, and service provisions. of charges described in the
identify the franchising 1992 Cable Act provision.
authority; (2) the amount of The City should be prepared
the bill assessed to satisfy to respond to subscriber
any requirements imposed on inquiries regarding the need
the cable operator to support for and municipal uses of
PRO channels or their uses the collected funds.
and (3) the amount of any
other fee, tax, assessment or
charge of any kind imposed by
any governmental authority on
the transaction between the
cable operator and the
subscriber.
•
13. Franchise Fees There has been no change in NOT APPLICABLE Article VI Section No action is necessary.
the Cable Act provisions 48-- grantee is required
regarding franchise fees. to pay the City an annual
fee equal to 5% of its
dross Revenues. .
•
14. Immunity Franchising authorities are NOT APPLICABLE Article VII Section Subject to certain
exempt from liability for 2A - -the grantee is exceptions, the 1992 Cable
monetary damages in all cases required to indemnify the Act narrows the scope of
pending or initiated after City from damages and remedies available against
October 5, 1992, and arising penalties arising as a the City in any lawsuit
from regulation of cable result of the brought which relates to the
service or from a decision construction, franchise, to money
involving the grant. renewal, maintenance, updating or damages. The 1992 Cable Act
transfer, or amendment of a reconstruction of the provision takes effect
franchise. This immunity cable systems any automatically, so no action
negligence, act. error or
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7652140
Summary of • FCC Franchise Recommended
Issue 1992 Ceble Act Reaul•tions Iaolications Action /Options
does not apply to cases in omission of the City; is required by the City at
which a franchising authority copyright infringement or this time.
repeats or continues a defamation asserted
violation already determined against the City and
by a final court order to be arising out of the
a violation of a cable franchise.
operator's rights, and in •
claims involving discrimination.
15. Transfer of Ownership Except for cable systems. The FCC recently adopted Article x-- grantee is The City may wish to modify
exempt from federal tax regulations interpreting and required to obtain the the franchise to reflect the
liability, transfers required implementing the anti- City's prior consent to , new Cable Act and FCC
by operation of law, and trafficking provisions of any transfer (broadly requirements. However, even
transfers between affiliated trafficking provisions of the defined) of the franchise. absent such modifications,
entities, a cable operator is Cable Act. The restrictions the Ceble Act provisions and
barred from selling or will apply only to assignments FCC regulations will control.
transferring its ownership in and transfers of control of •
a cable system for a three- cable systems, defined
year period following the generally by reference to the
acquisition or initial FCC's broadcast assignment and
construction of the system. transfer of control standards.
If a franchise requires The 3 -year holding period is •
franchising authority measured (1) for initially
approval of a transfer, the constructed systems, from the
franchising authority must date on which service is
• approve or deny the requested activated to the first
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1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11111 6111 11111
766E140
Summary of FCC Franchise Recommended
sue 2992 Cable Act Regulations Imu1icat ons J►ction /0ptiong
transfer within 120 days, or customer, and (2) for acquired
approval is deemed granted. systems, from the effective
The cable operator's request date of the closing of the
for approval must be transaction transferring
accompanied by all informs- control. Small system
tion required in accordance operators (1,000 or fewer
with FCC regulations and by subscribers) are exempt. The
the franchising authority. FCC will rely on franchising
authorities to monitor
compliance.
16. Discriminatory Practices A cable operator must have a HOT APPLICABLE See generally Article VI The cable operator is
-- Rate Structure uniform rats structure for Section 4D required to comply with this
cable service throughout the Cable Act provision. The
geographic area in which the City should continuously
operator provides service. monitor the grantee's
However, a cable operator compliance.
may not be prevented from
offering reasonable discounts
to senior citisens or other
economically disadvantaged
group discounts.
17. Subscriber Privacy In addition to protecting HOT APPLICABLE Article 11 Section No action is necessary at
personally identifiable 9-- grantee is restricted this tine. The grantee is
information collected using from monitoring or taping required to comply with this
its cable system, a cable individual subscribers, 1992 Cable Act provision.
operator (including entities and mast observe the
providing wire or radio rights of subscribers to
communications service which privacy. grantee may not
are owned or controlled by, sell or otherwise make
or under common ownership or available lists of
control with, a cable opera- subscriber names and
tor) must also (1) protect addresses which identify
personally identifiable the individual viewing
information collected using habits of subscribers.
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7652140
Summary of FCC Franchise Recommended
MIAMI 1992 Cable Act Regulations lmolications Action /Options
any wire or radio communi-
cation service provided using
any of the cable system
facilities, and (2) take such
actions as are necessary to
prevent unauthorised access
•
to personally identifiable
information by persons other
than the subscriber or cable
operator.
16. Franchise Renewal A franchising authority may, ROT APPLICABLE Article VI Section 5 - -the The franchise provision
during a six -month period franchise may be renewed anticipates changes to the
starting 36 months before in accordance with a law and correctly requires
franchise expiration (the stated procedure. The compliance with that law in
"notification window "), procedure must comply effect. The City should
commence a proceeding to with the Cable Act, as note that the renewal
identify future cable - related amended. procedure stated in Article
community needs and interests VI Section 5 requires a
and reviewing the cable determination on renewal
operator's performance under "within 4 months following
the current franchise. These completion of the initial
proceedings must be under- public proceedings." See
taken within six months if summary, to left, of Cable
cable operator gives written Act provision.
request for renewal during
the notification window.
•
During the 4 month period which
• begins with submittal of the
cable operator's proposal, the
franchising authority must
either renew the franchise or
•
issue a preliminary assessment
that the franchise should not
be renewed, followed by an
administrative hearing on the
issue of non - renewal.
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7652140
Summary of FCC franchise Recommended
Issue 1992 Cable Act Peculation' Implications Action /0otions
Renewal may be denied for
substantial non - compliance
if the cable operator had
notice and opportunity to
cure default.
19. Must Carry/ Cable systems with more than The FCC adopted on March 11 No section addresses. No action is required.
Retransmission Consent 12 activated channels must and released on April 2 its However, the City should be
carry the signals of local Report and Order in the matter prepared to address
commercial television stations of Must Carry and Retrans- citizen's concerns about
and local non - commercial mission consent provisions. loss of programming.
television stations on a In general, over -the -air
certain number or fraction broadcasters, both commercial
of total channel capacity. and noncommercial, may choose
No later than October 5, 1993, mandatory carriage on a cable
and once every three years system or enter into a
thereafter. a local commercial Retransmission Consent
• television broadcaster must agreement with cable
choose whether to require operators. Each broadcaster
cable operators to obtain its is assigned an area of
consent for retransmitting its dominant influence (ADI)
signal. or to assert its "mast within which all cable
carry" rights. operators mast abide by the
applicable FCC regulations.
Broadcasters choosing Must
Carry also have the right to
choose a particular channel
location based on criteria
established by the FCC. Cable
operators must obtain the
• Retransmission Consent of all
broadcasters electing to waive
their Must Carry rights.
Retransmission Consent
agreements may include a
monetary payment from the
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765Z140
Summary of FCC Franchise Recommended
Issue 1992 Cable Act peaulations Implications Action /Options
cable operator to the
broadcaster. Cable operators
are not allowed to retransmit
the signal of any broadcaster
(other than those choosing
Must Carry under the FCC's
rules) unless the
broadcaster's "Retransmission
Consent" is obtained.
Many multiple system cable
operators, such as TCI and
Time Harmer, have stated
publicly they will pay no
retransmission consent fees to
broadcasters. However, many
broadcasters, particularly
those owned by a major
network, have indicated they
will not allow retransmission
unless an agreement for
payment is reached. The
deadline for Retransmission
Consent agreements is
October 6, 1993.
•
Bee Mibit C for additional
information regarding the
relevant timelines for the
Must Carry /Retransmission
Consent provisions established
by the FCC.
•
20. Obscenity and Indecency Cable operators may enforce a The U.S. Court of Appeals, No section addresses. No action is necessary at
- Leased Access Channels written policy of prohibiting D.C. Circuit has stayed this time. Subscriber
indecent programming on leased implementation of FCC's Order complaints should be
access channels. If an issued February 3, 1993. As monitored to determine
operator chooses not to currently written, the Order compliance.
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7652140
Summary of FCC Franchise Recommended
RAM 1992 Cable Act Reaulations Implication' Action /Options
•
prohibit such programming, it states that cable operators
must place all leased access which do not adopt a written
indecent programs on a single policy to prohibit indecent
channel and block that channel programming may require the
unless requested in writing by programmer seeking leased
a subscriber. Operators are access to certify that the
made liable for transmitting program is not indecent.
"obscene material" over leased Where the program provider's
access channels. Before certification that its program
providing without charge a is not indecent is erroneous
service offered on a per- and the program is not
channel or per- program basis blocked, the cable operator
with X, R, or NC -17 movies, will not be in violation of
a cable operator must give the FCC rules or the 1992
subscribers 30 days' advance Cable Act requirements. Cable
notice and block the channel operators may employ any
if requested by the subscriber. blocking mechanism of their
choice. so long as it is
effective. Blocking
mechanisms and procedures must
be in place within 120 days
from the issuance of the FCC
Order, subject, however, to
the ruling by the Court of
Appeals. Hearings are
expected in mid - September.
21. Obscenity and Indecency FCC regulations will be the U.S. Court of Appeals, No section addresses. It appears public access
- Public Access Channels adopted to permit operators D.C. Circuit, has stayed requirements have been
to prohibit obscene material implementation of the FCC's eliminated from the
or sexually explicit conduct Order issued April 1, 1993. franchise. No action is
or material soliciting or As currently written, the necessary at this time.
promoting unlawful conduct on Order permits but does not
public access channels. require cable operators to
Operators are also made regulate indecent programming
liable for transmitting on PEG access channels. If a
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7652140
Summary of FCC Franchise Recommended
Issue 1992 Cable Act Revulations Spvlications action /Options
"obscene material" over cable operator chooses to
public access channels. regulate, it may (1) prohibit
indecency on all PSO access
channels; (2) prohibit
indecency on public access but
not educational or govern-
mental channels; (3) restrict
•
indecent programs to late
night hours; or (4) require
certification that programming
does not contain proscribed
material, and request
indemnification from the
program producer against costs
and expenses incurred in
defending a prosecution for
carriage of an alleged obscene
program certified as "not
obscene." soaring before the
O.S. Court of Appeals is
expected in mid - September.
22. Inside Home Wiring The FCC is directed to adopt FCC Order issued February 2, Flo section addresses. lfo action is necessary at
rules on the disposition of 1993, to apply to all this tine. The City should
wiring within a subscriber's voluntary subscriber monitor subscriber
home after the subscriber terminations occurring after 'complaints to ascertain
terminates service. the effective date (30 days whether the grantee is in
after publication in the compliance.
Federal Register). Cable
operators are prohibited from
removing cable home wiring
upon voluntary termination of
•
service, before giving the
subscriber the opportunity to
• acquire the wiring. The cable
operator must offer the home
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1 1 1 1 1 r 1 1 1 1 1 1 1 1 1 11111 1
765Z140
Summary of FCC Franchise Recommended
Inn 1992 Cable Act Regulations Implications J►ctionfOvtiona
wiring to the subscriber for
the replacement cost of the
wiring itself. The operator
must remove the home wiring
within 30 days' of a
terminating subscriber's
refusal to purchase the cable. •
-17-
•
•
EXHIBIT A
THE FCC'B ATE REGULATION PROCESS
TGULATING RATES ON SAE BASIC TIER 8. RATES MAY BE REDUCED TO THE FCC'8 BENCHMARE LEVEL; 91
1. CITIES MAY SEEK CERTIFICATION: - 10% BELOW SEPTEMBER 1992 LEVEL -- WHICHEVER I8 LESSER REDUCTION
- ON OR AFTER SEPTEMBER 1, 1993 (PREVIOUSLY JUNE 21 AND 9. CITY MUST ISSUE A WRITTEN DECISION FOR:
OCTOBER 1, 1993) • APPROVAL •
• SUBMIT FORM 328 TO FCC • DISAPPROVAL
• SEND VIA REGISTERED MAIL, RETURN RECEIPT REQUESTED CONTINUANCE
• PROVIDE CABLE OPERATOR WITH A COPY 10. IF CITY NEEDS MORE TIME (I.E. CONTINUANCE):
- TRUE I8 1Q DEADLINE TO SEER CERTIFICATION - UP TO 90 DAYS ALLOWED
- IMPORTANT CONSIDERATION: FCC RATE FREEZE EFFECTIVE APRIL 5. - UP TO 150 FOR COST -OP- SERVICE PROCEEDING
1993 WILL EXPIRE NOVEMBER 15, 1993 11. IF RATES EXCEED FCC STANDARDS:
• OPERATORS HAVE DISCRETION TO INCREASE RATES IF NOT - CITY HAS POWER TO ORDER avows BACK TO THE EARLIER OF
SUBJECT TO RATE REGULATION SEPTEMBER 1, 1993; 9R
2. CERTIFICATION EFFECTIVE WITHIN 30 DAYS: 1 YEAR
- UNLESS FCC FIND8 PROBLEM 12. OPERATOR MAY:
• IP B0, CITY MAY REP/LE - REQUIRE COST -OF- SERVICE PROCEEDING
3. . WITHIN 120 DAYS OF CERTIFICATION* - APPEAL DECISION TO FCC
- CITIES MUST ADOPT REGULATIONS CONSISTENT WITH FCC'8
• MAY BE BY ORDINANCE AMENDMENT OR SEPARATE ORDINANCE REGULATING RATRB ON THE EXPANDED TIER
4. OPERATORS HAVE 30 DAYS FROM GRANT OF CERTIFICATION: 1. APRIL 1, 1994 ■ DEADLINE FOR COMPLAINT ON EXISTING RATES:
- TO SEER RECONSIDERATION BY FCC - THEREAFTER WITHIN 45 DAYS OF INCREASE
5. OPERATORS MAY, AT ANY TIME, PETITION FCC: 2. COPY OF COMPLAINT MUST BE SENT TO BOTH:
- TO REVOKE CERTIFICATION - CITY AND CABLE OPERATOR
- IF PETITION CONCERNS EXISTENCE OF "EFFECTIVE COMPETITION ": • USE PCC FORM 329
• "AUTOMATIC STAY" FOR RATE REGULATION - SEND ON OR AFTER SEPTEMBER 1, 1993
' • SUBJECT TO REFUNDS IF UNSUCCESSFUL - SEND VIA REGISTERED MAIL, RETURN RECEIPT REQUESTED
• SUBJECT TO FORFEITURES IF FRIVOLOUS • OPERATOR HAS 30 DAYS TO RESPOND TO FCC
6. ONCE CITY IB READY TO REGULATE, 1? MUST: 3. FCC MAY ORDER:
- NOTIFY OPERATOR - PROSPECTIVE REDUCTION IN RATES
• SHOULD OBTAIN RETURN RECEIPT - REFUNDS, WITH INTEREST, FROM DATE OF COMPLAINT
• OPERATOR RA8 30 DAYS TO RESPOND 4. OPERATOR MAY REQUIRE COST -OF- SERVICE ANALYSIS.
•
- WITH RATE AND BENCHMARK INFORMATION (FORM 393) •
7. IP RATES ARE WITHIN FCC STANDARDS:
. - RATES WILL BE EFFECTIVE 30 DAYS AFTER 8UBMI88ION OF SCHEDULE .
•
7652140
A -1
•
MN all MI MI I 111111 • MN — NM MI NM — • M MN MI MI MI
NE IN N NM MI EN M IN MN NM M MI MI I MN
Daaarr a
CUSTO!!DR SDDVICR PROVISIORS
affective Date Raforesneats The !CC's rules are effective July 1, 1993. Franchising Authorities (FA's) cannot enforce these rules, however,
until they have given the operator 90 days' written notice by Certified Mail. Examples If an FA gave notice as soon as the rules were issued,
April 7th, it could begin enforcing thew July 6, 1993.• The rules are self - executing. FA's do not have to enact the standards locally; they can
begin enforcement 90 days from written notice by Certified Mail. Questions If FA's legislate stricter and /or additional standards, must they give 90
days' notice, or a shorter lead time if local law permits?*
}Oho Eaforcess FA's have primary and virtually sole responsibility. FCC will only step in "to address. as necessary, systemic abuses that undermin
the statutory objectives." Cautions If existing franchise standards are less strict than FCC's, but FA chooses to enforce FCC standards, the old
franchise requirements are superseded.*
Bow to React stricter Standards. The FA may do this in any manner permitted by local law -- amendment of franchise or separate ordinance or other form
of legislation. The standards may be "cable- specific" and do not have to address other video providers.
Loveraaes "Small systems" of 1,000 or fewer subscribers may ask the FCC to waive one or more of the federal standards, but with the following
condition s
• Attach the views of the FA oa the merits of the waiver.
• Dhow specific cost or other burdens of the standard(s).
• Propose temporary alternatives to the burdensome standards.
• Dive a date to end waiver /achieve full compliance.
Federal standards do not apply to enfranchised won -cable operator video distributors, but this does not preclude local imposition of customer
service /consumer protection requirements by other means than the Act and FCC rules.
contest of standards These are meant to be objective and "content based" rather than related to the subjective degree of customer satisfaction with
an operator's "performance."
•
Normal business Doers (MDR). More than "9 to S ", but how much more is based in part on community practices of similar- service businesses. Must
include at least one weekday evening or weekend day time slot. Use of agent OK, such as bank for bill paying.
* Indicates additional details oa page D -3.
D -1
Normal operating conditions (NOC). Within the control of the cable operator. Semple' of abnormal condition's natural disasters, civil
disturbances, power /telephone outages, severe weather.
Telephone access. Local, toll -free or collect -call line at all times. Trained personnel available 510, answering service or machine beyond 510.
Personal access. For bill paying, customer inquiries, service centers open 58N, conveniently located.
• ,epoase times. 11e and NOC, 30 seconds telephone answer, 30 seconds for any transfer. 90% fulfillment, measured quarterly. Outside 1180,
response nett business day (BD) by trained operator company rep. Machine measurement /special surveys of fulfillment not required absent history of
failure.
• fusv sigma. Less than 3% ROC. Questions Quarterly?*
Installation, outages, service calls. 95% fulfillment (quarterly) fors
• Standard installations (125 feet) 7 BD.
• Assuming NOC, begin service restoration work 24 hours after interruption (loss of picture or sound on single channel) becomes known.
• Assuming NOC, begin other service corrections nest DD.
• Appointment windows ISBNs Specific time. or 4 -hour block. Outside 510 for customer conveniences window standards not applicable.
• No cancellations after close of business day prior.
• If operator rep running lats. (a) contact customer, !od (b) if necessary, reschedule at time convenient to customer.
•• Customer eomseaications. Notify subscribers (1) at installation, (2) annually, and (3) on request any time about:
• Products and services
• Prices, options. conditions
• Installation and maintenance policies
• Use of service, including channel positions, and
• Billing and complaint procedures *, operator's number and address.
30 -day notice of changes is above if NOC.
1 Begin means take "positive steps" beyond mere acknowledgment.
*Indicates additional details on page B -3.
1 -2
•
MN - 1111111 - - - - all E Mil M M - - - - M - -
1 1 1 1 1 1 1 1 1 1 1 1 1 1 11111 1 11111 11111 6111
Billing. To be clear, concise, understandable, and cover at least basic, premium and equipment service charges, plus all activity in period such
as optional charges, rebates, and credits:
• Disputed bill response, 30 days.
• Refund checks, earlier of 30 days /next billing cycle /return of equipment on termination.
• Credits, next billing cycle after agreement on credit.
ASTBRISRB AND OTHER MAILS
What about lesser staadardat According to the customer service order, the federal standards "do not necessarily supersede existing customer service
requirements in current franchise agreements." However, a franchise clause forbidding au customer service standards enforcement is preempted by the
Act. The same 5 3 quoted above refers specifically to "stricter or additional standards ", but is not explicit as to lesser standards. And the rule
at Section 76.309(b)(1) and (2) uses the term "exceed." Moreover, the order elsewhere says "the Commission is required to establish baseline customer
service standards . . .," implying that without waiver, enforcement cannot sink below federal standards. Possible resolutions If the !A and the
operator want to agree on enforcement of lesser standards -- especially beyond the term of any franchise containing them- -they could use the !CC's
waiver process..
Mute can the 90 days' attic* begin/ At least one !CC official assumed the 90-day period for enforcement of federal standards would begin to run only
after the July 1st effective date. The better reading is the one given on page 1 of this summaryt !AS can give notice before July let, so long as
they do not enforce until 90 days are up. Otherwise, the lead time becomes almost 180 days, for which there is no support in the order's reasoning.
Suggestion• Share this interpretation with the operator before giving notice.
Notice of stricter or additional standards. Section 76.309(a) of the customer service rules seems to make the 90-day notice applicable only to the
federal standards in subsection (c). Moreover, subsection (b)(4) makes a point of honoring local substance and process. Can these be read to allow a
different notice period than 90 days for other - than - federal standards? Suggestions The !CC may have intended a 90 -day warning for all rule
adoptions, even though the regulation doesn't say so. Rather than take any dispute to the FCC, try to work it out locally. As a pragmatic point of
fairness, if 90 days is the standard for federal rules, a cable operator reasonably could expect at least as much notice for stricter or additional
requirements.
Compliance measurement intervals. Section 76.309(c)(1)(ii). imposing 30- second telephone answer and transfer times to a 90S fulfillment rate, is the
only standard in (c)(1) expressing the quarterly measurement interval. NATOh generally urged quarterly measurements. Suggestion: If quarterly
doesn't work well for, say, busy - signal compliance, work out with the operator some other period.
Complaint reporting. Although the order declines to seauirt cable operator disclosure of specific information about individual complaints, it does
not forbid !As from mandating mach reporting. Cautions !As should create processes that avoid causing the operator to violate Section 631 of the
1984 Act, 47 U.S.C. 5 551, on protection of subscriber privacy.
B -3
Refunds and credits. The order deliberately deals only with timing of such payments, but does not yeauire the operator to offer them at all. The
FCC's reasoning was that if it began specifying one kind of penalty, it would be on the slippery slope of micro - managing local prerogatives without
knowing where to stop. Conclusion: This leaves remedies in local hands, but Congress may have intended more. For example, the FCC could have
specified that operators have refund and credit policies, without prescribing actual dollar figures of non- nonetary penalties.
is a nutshell, maximum local flexibility. In the words of one FCC officials "When you have questions, try to work them out locally. Satisfy
yourselves and we'll be happy. If you don't succeed, we'll be forced to act."
765Z140
H -4
•
•
MI MN - - 111111 - - 1111111 - M - NM 111111 - - N Mg ow gm
Ns En No s EN No No NE ma I am NM E ME ME 1.111 M
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TIX!LIPE R sGARD IRG fiDST- CABEKI.— flAlIS1 IS8I _ COwENT
On April 2, 1993. the FCC released a Report and Order in the Batter of the Cable Act of 1992 - -Must -Carry and Retransmission Consent provisions.
These regulations contain a rigid time schedule for implementation, which includes the following:
1. Effective April 2. 1993- -
a. petitions for modification of AD/ market designations may begin.
b. A cable operator mast provide written notice to any broadcast television station at least 30 days prior to either deleting from carriage or
repositioning that station.
- 30 day written notice must also be provided to subscribers.
2. By May 3. 1993- -
a. A cable operator must notify, by certified mail, all qualified non - commercial educational stations of its designated principal headend.
- 60 day mortice must be given to all stations carried pursuant to must -carry rules regarding any change is the designation of the
principal headend.
b. A cable operator mast notify, by certified mail, all local commercial and non - commercial educational stations that may not be entitled to
carriage because they either:
1. fail to meet standards for delivery of a good quality signal to the cable system's principal headends or
2. may cause increased copyright liability to the cable system.
c. Cable operators must notify subscribers of any broadcast station deletions set for June 2, 1993.
3. By June 2. 1993- -
a. Cable systems must begin carriage of their full compliment of local must -carry commercial television stations.
- Must -carry requirements for noncommercial educational stations became effective December 4, 1992 - -the effective date of the 1992 Cable
Act -- however, complaints are not being processed by the FCC due to a standstill order in the Burner case.
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b. A cable operator must send, by certified mail, a list of all broadcast television stations carried on its mantra and their channel positions
to all local commercial and noncommercial television stations, including those not designated as must -carry signals and those not carried on
its system.
c. If a cable operator authorises subscribers to install additional receiver connections, but does not provide the subscriber with such
connection, the operator must notify subscribers by June 2, 1993 - -and annually thereafter (as well as new subscribers upon installation) --of
all broadcast stations carried on the cable system that cannot be viewed via cable without a converter bon.
- The operator must offer to sell or lease such a converter box to subscribers.
- This notice may be included is routine billing statements.
- The antics must identify the manner for obtaining such additional connections and instructions for installations.
4. Dv Juno 17. 1993- -
a. Commercial television stations must male an initial election between retransmission consent or must -carry status.
- Those stations selecting must -carry status must also notify the cable operator of their preferred channel position.
b. On this date, mails operators mat plates in their public files a list identifying the must -carry signals and the designated location of
their principal hsadend.
S. July 1. 1993 - -Under mew customer service rules, cable operators must notify subscribers 30 days is advance of any channel additions, deletions,
or changes.
6. October 6. 1993- -the retransmission consent and channel positioning provisions of the rules become effsetive and all stations must be carried
pursuant to their provisions.
112148 This Timeline provides only a brief summary of applicable PCC regolatioas and 6a261i< be relied spot as an enbaustive description of all
provisions of the FCC's regulations.
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