AGENDA #4d
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Extension of Period for Review of a Cablevision Basic Rate Proposal
DATE: October 23, 2000
The purpose of this memorandum and resolution is to allow cablevision consultant Robert Sepe time to review the annual FCC-1240 forms for regulated cable service. The 1240 forms are used to calculate the Basic Service Tier rate, equipment, and installation charges to become effective January 1, 2001.
Time Warner provided the Town with the annual FCC-1240 reporting forms on October 3, which we forwarded immediately to Mr. Sepe, who provides this service for members of the Triangle J Council of Governments that contract for it. Mr. Sepe will review the forms, including a study of Time Warner’s proposed Basic Tier Cable rates for 2001.
The federal government relies on local governments to review basic cable rates, and allows local governments to extend their review periods up to 120 days past the original date of receipt of the FCC Forms. The Town of Chapel Hill contracts with Mr. Sepe to verify that the rates are accurate. Mr. Sepe said that his goal is to complete rate reviews by late December, depending on the response of Time Warner to his findings.
The attached resolution would extend the rate review period deadline to January 31, 2001, as allowed by the FCC. After the consultant’s review, we will return with a recommendation on Time Warner’s Basic Cable rates for 2001.
RECOMMENDATION
That the Council adopt the attached resolution, extending the Basic Cable Rate Review period deadline to January 31, 2001.
A RESOLUTION EXTENDING THE CABLEVISION BASIC RATE REVIEW PERIOD DEADLINE TO JANUARY 31, 2001 (2000-10-23/R-4)
WHEREAS, on October 3, 2000, Time Warner Cable submitted an FCC-1240 Updating Maximum Permitted Rates filing for Regulated Cable Service with the Town, Time Warner Cable’s filing includes estimates for external costs, and costs associated with system upgrades it may incur during the period of January 1, 2001 through December 31, 2001, along with previous external costs from the “true up” period of January 1, 2000 through December 31, 2000 and Cable Network Upgrade expenses; and
WHEREAS, the Federal Communications Commission (FCC) has established rate-filing procedures that allow cable operators to estimate future external costs and costs associated with system upgrades, and to recover those projected costs by using the FCC-1240 filing process, which is performed annually; and
WHEREAS, the Town of Chapel Hill is authorized by the FCC to regulate basic cable service rates and services within the Town, and the FCC has assigned the Town with the responsibility of verifying that all elements of the Social Contract are fulfilled by the cable operator as they pertain to the Town; and
WHEREAS, the FCC allows cable franchise authorities the ability to toll the time in which to review rate filings submitted by cable operators, extending the period of review from the initial 30 days to an additional 90 days (120 days total) past the original October 3 date of receipt by the franchise authority; and
WHEREAS, the Town contracts with a consultant to review these rates and the proper FCC forms to determine if the cablevision company’s Basic Tier rates are reasonable; and
WHEREAS, the consultant will require time to review the rate filings as provided by Time Warner;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the time period in which the Town has to review Time Warner Cable’s FCC-1240 rate filing is tolled 90 days past the original 30 days (120 days total) allowed by the FCC, extending the total review period deadline to January 31, 2001.
BE IT FURTHER RESOLVED that Time Warner is directed to maintain a complete and accurate accounting of all costs and revenues associated with the aforementioned FCC-1240 filing.
This the 23rd day of October, 2000.