2001-24683 Reso
RESOLUTION NO. 2001-24683
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA APPROVING THE ISSUANCE AND
EXECUTION BY THE CITY MANAGER OF AN ORDER TOLLING
DEADLINE AND ACCOUNTING ORDER, "iHICH GIVES THE CITY AN
EXTENSION OF TIME WITmN WHICH TO REVIEW PROPOSED
CHANGES IN THE MAXIMUM PERMITTED RATE FOR CABLE
TELEVISION SERVICE WHICH HAVE BEEN FILED WITH THE CITY BY
CHARTER COMMUNICATIONS AND REQUIRES CERTAIN RECORDS
TO BE KEPT IN CONNECTION THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on December 6, 2001, the City of Miami Beach, Florida (the "City") received
FCC Form 1210 from Charter Communications, ("Charter"), proposing an increase in the Maximum
Permitted Rate for basic cable television service within the City, from $12.13 per month to $12.23
per month. an increase of $0.1 0; and
WHEREAS, pursuant to Federal Communications Commission ("FCC") rules and
regulations, the City has thirty (30) days to review the proposed change or request an extension of
time; and
WHEREAS, due to, among other things, the need for additional analysis by the City's
attorneys and accountants, and due to the need to request and/or consider additional information and
to consider comments from interested parties, and due to the schedule of meetings of the Mayor and
City Commission at which action can be taken on the Form 1210, the City needs an extension of
time to complete its review and determine whether the proposed changes are permissible under the
rules and regulations of the FCC; and
WHEREAS, pursuant to Section 76.933 of the rules and regulations of the FCC, the City
may issue an Order Tolling Deadline, a copy of which is attached hereto and incorporated herein,
tolling for an additional 150 days the date on which the changes may take effect.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that:
Section 1. The issuance and execution by the City Manager of an Order Tolling Deadline
and Accounting Order, a copy of which is attached hereto and incorporated herein by this reference,
is hereby approved, and the City Manager is hereby authorized and directed to execute said Order
Tolling Deadline and Accounting Order and deliver said executed Order to Charter.
Section 2.
This Resolution shall take effect immediately upon its adoption.
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PASSED and ADOPTED this 19th
A TrEST:
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CITY CLERK
Resolution No. 2001-24683
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2001.
APPROVED ,.10
FORM &LANGUAGI
& FOR EXECUTION
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IN THE MATTER OF
RATE REGULATION
ESTABLISHING RATES TO BE SET
ON THE BASIC SERVICE TIER BY
CHARTER COMMUNICATIONS IN
THE CITY OF MIAMI BEACH,
FLORIDA
1
ORDER TOLLING DEADLINE AND ACCOUNTING ORDER
Pursuant to Section 76.933 of the RuIes and ReguIations of the Federal Communications
Commission, the City of Miami Beach, Florida (the "City") issues the following Order:
1. WHEREAS, on December 6, 2001, the City received an FCC Form 1210 filed by
Charter Communications ("Charter") proposing certain changes in the Maximum
Permitted Rate for the basic tier of cable television service, which increase is based
on plant upgrades.
2. WHEREAS, the City has determined that the 30 day period accorded by Section
76.933 to review these rate changes prior to their taking effect is inadequate due to
the need for additional analysis of the proposed rate changes.
3. WHEREAS, the City is unable to determine whether the proposed rate changes are
permissible under the rules and regulations of the Federal Communications
Commission without consideration of additional information and comments from
interested parties.
Accordingly, it is hereby ordered that the effectiveness of the proposed rate changes is hereby
tolled for an additional 150 days from the date on which the changes wouId take effect under Section
76.933 to and including June 4, 2002.
In order to preserve the City's right to order refunds to subscribers in the City of Miami
Beach, the City hereby orders Charter, pursuant to 47 CFR Section 76.933(c), to keep an accurate
account of any and all amounts received during the pendency of this Order by reason of the rate in
issue and on whose behalf such amounts were paid.
DONE and ORDERED this /qtf. day of ~P.,t:fL- ,2001, at the City of Miami Beach,
Florida.
d.:~.t:'d 0-
City Manager
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Date
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FORM & LANGUAGE
& FOR EXECU110N
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
Resolution Approving an Order Tolling Deadline to Respond to Request for Increase in
Basic Service Tier Rate for Cable Television Service.
Issue:
Shall the City toll a 30-day period for an additional 150 days in order to have time to
adequately respond to a request from Charter Communications for an increase in the
rate that it may charge for the basic service tier for cable TV.
Item Summary/Recommendation:
Every December, the City receives from Charter Communications a request to increase
the "Maximum Permitted Rate" for the basic service tier (local stations, plus government
access and educational channels) for cable TV service. This request must be reviewed
by a CPA firm that is competent in such matters. Federal law allows 30 days for this
process, unless a tolling order is adopted. The CPA firm (Rachlin, Cohen & Holtz) which
the City uses is extremely busy in December and is not able to perform the necessary
analysis within the 30-day period. Therefore, adoption of the tolling order is
recommended by the Administration.
Advisory Board Recommendation:
I Not applicable
Financial Information:
Amount to be expended:
D
Finance Dept.
Source of
Funds:
AGENDA ITEM
DATE
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CITY OF MIAMI BEACH
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.f1.us
COMMISSION MEMORANDUM
TO:
Mayor David Dermer and
Members of the City Commission
DATE: December 19, 2001
FROM:
Jorge M, Gonzalez , _ ,______
City Manager ()r"- 0
SUBJECT:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA APPROVING THE ISSUANCE AND
EXECUTION BY THE CITY MANAGER OF AN ORDER TOLLING
DEADLINE AND ACCOUNTING ORDER, WHICH GIVES THE CITY AN
EXTENSION OF TIME WITHIN WHICH TO REVIEW PROPOSED
CHANGES IN THE MAXIMUM PERMITTED RATE FOR CABLE
TELEVISION SERVICE WHICH HAVE BEEN FILED WITH THE CITY BY
CHARTER COMMUNICATIONS AND REQUIRES CERTAIN RECORDS
TO BE KEPT IN CONNECTION THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Approve the Resolution.
ANALYSIS
The maximum legal rate that Interlink Communications Partners, LLC dfb/a Charter
Communications, Inc. ("Charter") may presently charge for the basic tier of cable television service
(the "Basic Service Tier"), which is comprised of local broadcast stations plus certain public,
education and government channels, is $12.62 (comprised of $12.13 [the "Maximum Permitted
Rate," as dermed by the applicable federal regulations], plus a $0.49 "rebuild" rate). Charter recently
increased its rate from $11.90 to $12.62 for this service and has advised the City that it intends to
keep this rate in place for the time being. This is consistent with Charter's past practice of requesting
an annual increase in the Maximum Permitted Rate for the Basic Service Tier, although they do not
always implement the increase immediately. The Basic Service Tier is the only tier of service that
the City may regulate under the federal Telecommunications Act of 1996, as amended (the
"Telecommunications Act"). The City has no regulatory authority over the so-called "expanded
basic" service or premium channels such as Showtime and HBO.
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On December 6, 2001, the City received an FCC Form 1210 filing from Charter, requesting a $0.10
increase in the Maximum Permitted Rate (which would make the Maximum Permitted Rate $12.23
per month). That amount, plus the $0.49 "rebuild" rate that was previously in effect, would make
the total permitted rate for the Basic Service Tier equal to $12.72. Charter advises that it does not
plan to implement this additional increase immediately, however, it desires to take the steps
necessary for approval of the increase.
The Administration recommends the issuance of a one hundred and fifty (150) day Tolling Order
to provide sufficient time to analyze the Form 1210 filing. As has been done in the past, the
Administration will use the services of Rachlin, Cohen & Holtz, Certified Public Accountants, to
assess the current filing. Under the current federal regulations relating to the Basic Service Tier, if
no action is taken by the City Commission at this time, the proposed increase in the Maximum
Permitted Rate will automatically become effective thirty (30) days after the City's receipt of the
Form 1210, that is, as of January 5, 2002. Therefore, the Administration recommends the adoption
of the attached Resolution.
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