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HomeMy WebLinkAboutItem 6.2 CTV RateReview (2) 1,'(;-:' ,...:TI....,~.~'.'.-.,ljl.\''"~~...~~~..A3I!IM.'''IA.4'~~~~'iiI!J.E:1/I1~1..:"~':>/Il~..,wIII!''"t'!':fiIlII,lJr~1.1M4:h.-..~I,U.~i;~I~"~,;.;~~I..7ol1"..~"~.l:lI~~I'''''".l,.....II>..,...'I'I'"''__~_~.......'_I....".........~........_""'..--"..--.-..........""",~~.,_. . ..... e e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 28,1994 SUBJECT: Public Hearing: Cable Television Rate Review I}!j (prepared by: 50 Barker, Management Assistant) EXHIBRS A:fTA:CHED: !?TSlble of Via com's Cable Rates 2. ~iacom Channel Line -up RECOMMEND A TION:/l jy""1. Open Public Hearing and Receive Comments \,0fP 2. Close Public Hearing and Deliberate '~ 3. Approve the Basic Tier Rate Reduction of $1.30 to $12.34 for the Period covering June 15, 1994 through November 14, 1994. FINANCIAL STATEMENT: The next two rate reviews are anticipated to cost approximately $2,500. DESCRIPTION: On October 5,1992, Congress enacted the Cable Television Consumer Protection and Competition Act of 1992. The Act allows cable systems not subject to effective competition to be regulated. In accordance with regulations prescribed by the Federal Communications Commission (FCC), franchising authorities, such as cities, may regulate basic cable service rates. charges for related equipment and establish customer service standards that are consistent with the FCC regulations. The City is currently in receipt of filings from Viacom Cable. The new filings cover the period from July 14, 1994 through November 14, 1994. The forms submitted by Viacom are described below: Form Number Descriptions of the Function Used to calculate the rates put into effect June 14, 1994. 1200 1205 Demonstrates the calculations needed to determine the costs associated with regulated equipment and installation on the Basic Tier 1215 Describes channel line ups by Tier and channels offered on an individual basis. (premium services) The rate for basic service charged to City of Dublin residents for the Period covering September 1, 1994 through June 14, 1994 was $13.64. The basic service rate proposed in the forms 1200, 1205 and 1215 is $12.34. This represents a $1.30 reduction in basic cable rates for that period. The total rate for both the basic tier plus the satellite tier is $22.32 or a reduction of $2.09. Over 95% of the customers have satellite tier service. Normally, Staff would send the rate forms from Viacom to the City's cable consultant, Telecommunications Management Corporation (TMC). In the previous rate application, the City was able to receive substantial savings from cooperating with the other Valley cities in jointly reviewing the those rates (Form 393). However, the forms 1200, 1205 and 1210 are different in their content and TMC estimated that a review of the forms could cost up to $2,100 for each City. The City Council recently ordered a rate reduction for basic cable services covering September 1, 1993 through June 14,1994. The rate reduction was the result of a review by the City's cable consultant, TMe. The rate reduction, however, had no impact on the actual rates charged to customers because, under FCC guidelines, the Company can offset any over charges by under charges. Due to these results and since the rate most customers pay is $2.09 below the previous rate, Staff recommends the City Council does not initiate a rate review by the City's Cable consultant, hold a public hearing and approve the rate as actual. It would appear unnecessary to expend funds on consultant time when the company is reducing tre rate. A1-~llliabrnNe"d1ie OJrrent filings cover the period from June 14,1994 through November 15, 1994. The City is alr.t:a&~ Dn.3'BC8pM:lIDlatllal!Jl-p&a4tiinn to increase rates by an apparent 3%. Staff proposes the City Council continue to utjlizetihe.~'CODns'l1:ltta~ilncast!5 where the rates are increased. The new filing will cost the City approximately $750 far the ralle review pflocesS. Staff wiI!l present the City Council with more information related to the new filing in January. COPIES TO: Tom Baker, Viacom Cable ITEM NO. b. 2 CITY CLERK FILE [2JOI6Io~o' 7 ,/\ i1 ~ e TABLE OF VIACOM CABL~TES Types of service impacted by new rates: .. ," . Standard Cable Service (includes Limited Cable Service and Satellite Value Package) . Limited Cable Service (required to receive all other services) · Satellite Value Package DUBLIN Standard Cable Limited Cable Satellite Value Package CONTRA COSTA COUNTY Standard Cable Limited Cable Satellite Value Package LIVERMORE Standard Cable Limited Cable Satellite Value Package PLEASANTON Standard Cable Limited Cable Satellite Value Package ALAMEDA COUNTY/SUNOL Standard Cable Limited Cable Satellite Value Package SAN RAMON Standard Cable Limited Cable Satellite Value Package EAST BAY CUSTOMERS CURRENT RATE NEW REDUCED RATE 24.41 13.64 10.77 22.32 12.34 9.98 24.18 13.51 10.67 21.49 11.98 9.51 24.41 13.64 10.77 22.36 12.36 10.00 24.41 13.64 10.77 22.43 12.40 10.03 24.41 13.64 10.77 22.02 12.27 9.75 24.18 13.51 10.67 22.10 12.22 9.88 NEW LIFELINE RATE 17.85 9.87 7.98 17.19 9.58 7.61 17.89 9.89 8.00 17.94 9.92 8.02 17.62 9.82 7.80 17.68 9.78 7.90 t"!L7~~~;f(l\j7 i '," H ~,!,i~ 'I ~p ~ 'I , i.'';'' M I, ",\" %l,. 'J <f\\.~ ,HilJi3 ; EB VI /, } e ACO CABLE - East Bay -7/94 CHANNEL 0 California Channel: M-F,9a-3:45p '.'," 0--- Playboy TV (50..3a) 1 - TIle Movie Olanncl 2 KTVU-2 3- The Disney Channel 4 KRON-4 5 KPIX-5 6 KlCU-36 7 KGO-7 S- HBO 9 KOED-9 10 - Showtimc - tl KDTV-14 12 KBHK . 44 13 KOFY . 20 14 + ESPN 15+ Nickelodeon 16+- SpansChanncl 17 + om IS+ TNT 19+ Am & Entertainmenl 20+ USA 21 + MTV 22+ Uretimc 23 KCNS-38 24 KSTS-48 25 KlEH-S4 26 KTSF-26 27 C-SPAN 2 (4a-lla) 27-- Viewer's Choice (1Ia-4.). wI movie lIynil:Jble allam. 28 TBS 29 KFCB-42 30 Viacom 30 (CommunilV Access) 31 KPST -66 32+ CNBC (5.-5p) 32+ C-SPAN (50..5:1) 33 + TNN: The Nashville Network 34+ AmeriCllJ1 Movie ClllSSics 35+ VH I (5a-5p) 35+ Comedv Ccntr.ll (50-5:1) 36+ QVC Fashion Channel (3a-9a) 36+ Discoverv Channel (9.-3a) 37+ lovc + Satellite Value Package +. Premium During A's, Giants, Warriors, Sharks Games . Premium Channel . Pay. Per. 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