Ordinance 29680006.080.003E
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01/04/94
ORDINANCE NO. 2968
AN ORDINANCE OF THE CITY OF EDMONDS,
WASHINGTON, TO ADD A NEW CHAPTER 3.60
PROVIDING FOR REGULATION OF CABLE TELEVISION
RATES IN ORDER TO PROVIDE FOR THE REGULATION
OF BASIC SERVICE TIER RATES AND RELATED
EQUIPMENT, INSTALLATION AND SERVICE CHARGES OF
ANY CABLE TELEVISION FRANCHISED BY THE CITY OF
EDMONDS, AND FIXING A TIME WHEN THE SAME SHALL
BECOME EFFECTIVE.
WHEREAS, on October 5, 1992, Congress enacted the Cable
Television Consumer Protection and Competition Act of 1992
(hereinafter "Act "), which, among other things, provided that the
basic service tier rates and the charges for related equipment
installation and services of the cable television system
(hereinafter "Basic Service Rates and Charges ") shall be subject to
regulation by a franchising authority in accordance with the
regulations prescribed by the Federal Communications Commission
(hereinafter "FCC "); and
WHEREAS, on April 1, 1993, the FCC prescribed such
regulations in the Report and Order, in the Matter of Implementa-
tion of Sections of Cable Television Consumer Protection and
Competition Act of 1992: Rate Regulation, MM Docket 92 -266, FCC
93 -177 (released May 3, 1993) (hereinafter referred to as "FCC Rate
Regulations "); and
WHEREAS, the City of Edmonds (hereinafter the "City ") is
a franchising authority with the legal authority to adopt and the
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personnel to administer regulations with respect to the Basic
Service Rates and Charges of any cable television system operating
in the City, including, without limitation, the system currently
being operated by the Edmonds Cable Company (hereinafter the
"Company ") pursuant to applicable franchising documents (herein-
after "Franchise "); and
WHEREAS, the City desires to regulate the Basic Service Rates
and Charges of the Company and other cable television systems
operating in the City and shall do so in accordance with the FCC
Rate Regulations, notwithstanding any different or inconsistent
provisions in the Franchise; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON DO
ORDAIN AS FOLLOWS:
Section 1. The Edmonds City Code is hereby amended by
the adoption of a new Chapter 3.60 relating to the regulation of
basic service rates to read as follows:
Chapter 3.60 - Regulation of Basic Service
Rates of the Cable Franchise
3.60.010 Definitions of Generally Applicable
Terms.
A. Benchmark rate shall mean a target
(benchmark) rate established by the FCC
and currently applicable to a franchise
operating in the City of Edmonds.
B. Company shall mean any individual company
or company holding a franchise for the
operation of a cable television system
within the City limits.
C. FCC shall mean the Federal Communications
Commission.
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D. FCC regulation shall mean any duly
established federal regulation covering
the activities of a cable television
franchise and its relation with the City.
Such term shall include at a minimum the
final rules promulgated as MM Docket 92-
266, FCC 93 -177 codified as 47 CFR §§
76.990 - 985 as the same exist or are
hereinafter amended.
E. Equipment is hereby defined to include
converter boxes, remote control units,
connections for additional outlets and
cable home wiring.
F. Franchise shall mean all ordinances,
regulations, laws and franchise documents
governing the activities of a company
authorized by the City to provide cable
television services in the City of
Edmonds.
3.60.020 Designation of Staff Contact. In
accordance with the FCC Rate Regulations, the
Mayor has designated the Community Service
Director as the appropriate staff person to
execute on behalf of the City and file with
the FCC such certification forms or other
instruments that are now or may hereafter be
required pursuant to the FCC regulations in
order to enable the City to regulate Basic
Service Rates and other related charges.
3.60.030 Adoption of FCC Regulations. The
regulation of Basic Service Rates and Charges
of the Company shall be undertaken in
accordance with adopted FCC Rate Regulations
as the same exist or are hereafter amended.
Such regulations are generally codified at 47
Code Federal Register §§ 76.900 -985. In the
event of conflict between any City procedure
or these ordinances and the Regulations, such
Regulations shall control.
3.60.040 Rates Subject to Regulations. The
City Council has been certified to regulate
Basic Service Rates which include the rate for
service for the provision of all local
broadcast signals as well as the public,
educational and governmental access channels
required pursuant to FCC regulation and any
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other programming services that the Company
chooses to include in its basic service rate
along with:
A. All equipment and installation used to
receive basic service, even if that
equipment is also used to receive other
regulated and /or unregulated services;
B. The installation and monthly use of
connections for additional receivers.
3.60.050 Initial Application. Following the
written notice provided to the Company, the
cable operator shall have thirty (30) days
after receipt of such notice to file its rate
justification with the franchising authority
on FCC Form 393. The initial rate schedule
shown on Form 393 shall be considered by the
City Council within thirty (30) days after
receipt of the form. The Council may make a
rate determination or issue a brief order
within the thirty (30) day period notifying
the Company that the City Council requires
additional time to make a rate decision. If
the City Council requires additional time to
make its rate decision, it may have up to
ninety (90) additional days to review a rate
request based upon FCC benchmark regulation
and up to one hundred and fifty (150)
additional days to review a Cost -of- Service
showing.
3.60.060 Future Rate Increases. Future
requests for rate increases shall be
considered in a timely fashion in accordance
with FCC regulation.
3.60.070 Rate Decisions. If the City Council
determines that any proposed rate is
unreasonable, it may:
A. Order a reduction in such rate or rates;
B. Prescribe a reasonable rate;
C. Order a rate refund; or
D. Impose fines or monetary forfeiture to
the extent permitted under state law.
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Such decisions shall be based solely on the
record before the City Council.
3.60.080 Notification of Decision. The City
Council's decision shall be in writing mailed
to the company and interested party who has
filed a written objection and shall be posted
and otherwise made available to the public
through the office of the City Clerk whenever
the City Council:
A. Disapproves an initial rate for Basic
Service or for related equipment or
installation of services;
B. Disapproves a request for a rate
increase; or
C. Approves a request for an increase over
the objections of an interested party.
A written decision shall not be required for
approval of an unopposed existing or proposed
rate for Basic Service or equipment.
3.60.090 Notification of Filincr. Upon
receipt of a request for establishment of
initial rate or future rate increases, the
City Clerk shall cause to be published in the
City's official newspaper notice of the said
filing. Copies of the filing shall be
maintained in the office of the City Clerk.
Any interested party may file a written
objection to the proposed increase, provided
such written objections shall be filed in the
Office of the City Clerk ten (10) calendar
days prior to the date set for hearing.
3.60.100 Hearing Procedure: Benchmark Rate.
A. Whenever the Company shall propose
adoption of a benchmark rate the
following shall apply:
1. The City Council shall set a
hearing date, providing
published notice at least ten
(10) calendar days in advance
of such hearing by publication
in the City's - official
newspaper. The Company shall
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also provide a notification of
the pending rate or rate
increase request on its public
access or other channel devoted
to public notification.
2. Formal rules of evidence shall
not apply to the public hearing
and it shall be conducted in
accordance with normal Council
hearing procedures. Council
shall afford the Company and
all interested persons a
reasonable opportunity to be
heard.
3. If the cable company has
submitted a rate schedule based
on benchmark formulas and
calculations, the City Council
may not prescribe a rate lower
than that permitted in the FCC
Benchmark Rate Tables or more
than ten percent (10 %) less
than the cable company's
September 30, 1992 per channel
rate, whichever is higher.
4. The cable company shall first
make its presentation, followed
by the presentation of the City
staff entering its analysis and
recommendations, if any. Then
all interested parties who have
filed an objection to the rate
increase shall be heard.
Finally, members of the public
shall be heard. The staff
should be given a brief
opportunity to respond and the
Company may conclude with
rebuttal, addressing new
information raised by the
staff, interested parties or
the public. The Mayor shall
set reasonable time limits for
the presentation of the
respective parties, provided
that the time established for
individual public comments may
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be limited to three (3) minutes
per person.
3.60.110 Notice and Hearing Procedures: Cost
of Service Showing. The general hearing
procedures outlined in S 3.60.100 shall apply
to an application by the Company for a Basic
Service Rate above the benchmark rate provided
that:
A. The Company shall submit a Cost -of-
Service showing prepared in accordance
with FCC regulations sufficient to
support a finding that the rates are
reasonable. It shall make ten (10)
copies available in conjunction with its
initial application for public inspection
and use at the hearing.
B. If the cable company submits a Cost -of-
Service showing, that showing supersedes
any benchmark /rollback provisions
established by the FCC. The City Council
may prescribe whatever rate it finds
justified by the Cost -of- Service showing,
utilizing generally- accepted accounting
principles, utility rate regulation
principles, and the review of criteria in
47 CFR SS 76.922 to 76.925 as the same
exist or are hereafter amended, even if
that rate is below the system's benchmark
and more than ten percent (10 %) below the
system's September 30, 1992 rates.
3.60.120 Refunds. The City may order the
Company to refund to subscribers that portion
of previously paid rates determined to be
unreasonable. However, the Company's
liability for refunds is generally limited to
a one -year period and shall not go beyond
September 1, 1993, the effective date of the
FCC rules.
3.60.130 Use of Administrative Hearing
Officer. The City Council may, in its sole
discretion, elect to have its hearing con-
ducted by its hearing examiner. In the event
that a hearing is conducted by the hearing
examiner, the hearing examiner shall present
his or her proposed findings of fact, conclu-
sions and recommendations to the City Council.
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Prior to adoption of such findings, the City
Council shall hold a public hearing at which
the Company, any interested parties who filed
an objection to the rate increase, and any
member of the public may be heard. The pur-
pose of this public hearing will be for the
Company, interested parties and the public to
comment on the proposed findings and recommen-
dations and shall not itself be an evidentiary
hearing. Having heard the comments of the
Company, interested parties and the public,
the City Council may adopt the recommendations
of the hearing examiner, reverse or modify the
hearing examiner's determination based upon
the record before the hearing examiner, or
remand the matter back to the hearing examiner
for the taking of further evidence and
testimony.
3.60.140 Appeals. An appeal from any order or
decision of the City Council regarding any
rate increase shall be solely to the FCC
pursuant to 47 CFR § 76.944 as the same exists
or is hereafter amended. Such appeal shall be
filed within thirty (30) days. Appeals from
other decisions of the City Council regarding
the franchise shall be filed in the Snohomish
County Superior Court within ten (10) business
days of the date notice of decision is issued.
Nothing herein shall be interpreted to limit
the right of any citizen or the City to file a
complaint with the FCC regarding any company
activity in accordance with 47 CFR § 76.953 et
seg.
Section 2. The City Clerk is hereby authorized and
directed to provide notice to any company holding a franchise from
the City of Edmonds that the City has been authorized to regulate
the rates the system charges for Basic Cable Service and all equip-
ment, installation and other services used by Basic Service and
that the City has adopted the requisite rules regarding rate regu-
lation by the adoption of this ordinance.
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The City Clerk shall further instruct the franchisee
that, within thirty (30) days of receipt of a copy of this
ordinance the Company shall file a completed FCC Form 393
justifying the current rates for Basic Service and related equip-
ment, installation and other services.
Section 3. Effective Date. This ordinance, being an
exercise of a power specifically delegated to the City legislative
body, is not subject to referendum, and shall take effect five (5)
days after passage and publication of an approved summary thereof
consisting of the title.
ATTEST /AUTHENTICATE:
C TY CLERK, ONDA J. MARCH
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY:
. SCOTT
APPROVED:
i
FILED WITH THE CITY CLERK:
01/04/94
PASSED BY THE CITY COUNCIL:
01 /18/94
PUBLISHED:
01/23/94
EFFECTIVE DATE:
01/28/94
ORDINANCE NO. 2968
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Affidavit of Publication
STATE OF WASHINGTON,
ss
COUNTY OF SNOHOI LISH,
The undersigned, being first duly sworn on oath deposes and says
that she is Principal Clerk of THE HERALD, a daily newspaper
printed and published in the City of Everett, County of Snohomish,
%MARY of ORDINANCE and State of Washington; that said newspaper is a newspaper of
of the C�tt�y of general circulation in said County and State; that said newspaper
2dmonds, Was ,to-
the 18th day of January, has been approved as a legal newspaper by order of the Superior
the City Council of the
of Edmonds, passed.
nonce No. 2968. A Court of Snohomish County and that the notice ......... ...............................
nary of the content of
.- Su.mmary ... of ... Ordinance No. 2968
City of Edmon.ds
...
...................
a� r EA ME WHF4 a printed coy of which is hereunto attached was
p published in said
E SHALL BECOME
Ei text of this newspaper proper and not in supplement form, in the regular and
will be mailed upon'
this 19th day of entire edition of said paper on the following days and times, namely:
D94.
)A J. MARCH
erk
January 23, 1994. 1 January,.. 2 3- 1__..19.9- 4
.................................... ..................... ............................................................................
and that Isaid wspaper was regularly distributed to its ubscribers
durin said Mood.
t/ L� L4X
Principal Clerk
Subscribed and sworn to before me this ......2.4th
day o - -- ...... J anu .%1sh r 199A...
..................... ......... . - - - -..- ..................................
Notary Public in and foe of Washington,
residing at Everett, Snounty.
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