HomeMy WebLinkAbout94-113RESOLUTION NO. 94-
A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF PORT
TOWNSEND AUTHORIZING THE MAYOR TO SIGN AN AMENDED
RATE ORDER, WHICH APPROVES IN PART AND DISAPPROVES IN
PART, SUMMIT COMMUNICATION INC.'S INITIAL RATE REQUEST
FOR BASIC SERVICE AND ASSOCIATED EQUIPMENT,
INSTALLATION, AND SERVICES, AS PROVIDED FOR IN THE
FEDERAL COMMUNICATIONS COMMISSION RATE REGULATIONS
AND PORT TOWNSEND MUNICIPAL CODE, CHAPTER 5.15
WHEREAS, on November 15, 1993, the City of Port Townsend ("City") adopted
Ordinance No. 2378, which provides that the City desires to regulate basic service tier rates and
associated equipment, installation, and services hereinafter collectively referred to as "charges"
for any cable television system operating in the City, pursuant to the Cable Television Consumer
Protection and Competition Act of 1992, as implemented by the Federal Communications
Commission ("FCC")Rate Regulations, and',
WHEREAS, Summit Communications, Inc. ("Summit") is currently the cable operator
for the City of Port Townsend, and has filed its FCC Form 393 showing its proposed rates for
basic service and charges; and
WHEREAS, the City and Summit agreed to extend the time for reviewing the rate
proposal to August 15, 1994; and
WHEREAS, on April 4, 1994, the City Council held a public hearing to receive oral
and/or written comments on Summit's rate proposal; .and
WHEREAS, the City Council has reviewed the FCC Form 393, submitted by Summit;
in part
agreed
WHEREAS, by Resolution No. 94-106, the City Council issued its rate order approving
and disapproving Summit's rate request, but in subsequent discussions with Summit has
to a limited modification of the rate order, Now, Therefore,
BE IT RESOLVED BY THE CITY COUNCIL AS FOLLOWS:
That the Mayor is authorized to sign the following rate order:
1. The Benchmark Rate for the basic service tier of $19.87 is adopted by the
City. The City r-ejeets does not dispute Summit's claim that it is entitled to
separately itemize Washington State's Business and Occupation Tax7._ and The
City rejects Summit's claim that it is entitled to separately itemize the costs and
fees of providing channels via microwave delivery. In essence, the City finds
that Summit has blurred the benchmark analysis with the cost of service study.
This procedure is not allowed by the FCC rules and regulations unless the cable
operator has elected to submit a cost-of-service showing in an attempt to justify
an initial service rate above FCC's reasonable rate standard, which procedure
Summit did not elect to follow. The City reserves the right to rescind or amend
this portion of the Rate Order if the FCC provides more guidance on addressing
these issues, or the next series of cable rate forms (commonly referred to as the
1200 series) either addresses these issues or makes them moot;
2. The City approves the permitted j installation Charges as set forth in the
FCC Form 393;
3. The City approves the permitted equipment charges as. set forth in the
FCC Form 393;
4. In accordance with the regulations adopted by the FCC, Summit shall
calculate and determine the extent of the refund to be issued to customers located
in the City for overcharges commencing September of 1993. Summit shall have
sixty (60) days to determine and issue or credit the refund amount.
Adopted by the City Council and signed by
this ~"~/ day of October, 1994.
ATTEST:.
David A. Grove, Clerk/Treasurer
John M. Clise, Mayor
APPROVED AS TO FORM:
T~mot~cMahan, City Attorney
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