HomeMy WebLinkAbout1810Resolution No. 1810
(Amending or Repealing Resolutions)
CFN = 1109 -Telecommunications
Passed -6/16/2009
Comcast Serv1ce Rate
RESOLUTION NO. I ? I ()
A RESOLUTION of the City Council of the
City of Kent, Washington regarding the maximum
permitted bas1c programming serv1ce rate set forth
1n the Federal Commun1cat1ons Comm1ss1on form
1240 filed by Comcast on or about Apnl 1, 2009.
RECITALS
A. Sect1on 623 of the Cable Commun1cat1ons Policy Act of 1984,
47 U.S.C. § 543, as amended, authonzes local franchising authorities, such
as the City of Kent, Washington (hereinafter the "City"), to regulate rates
for basic cable service. The City 1s certified as a rate regulat1on authority
pursuant to rules of the Federal Communications Commission (hereinafter
"FCC").
B. Comcast Cable Commun1cat1ons LLC, (heremafter "Comcast"),
the local franch1se holder, filed with the City an FCC Form 1240 "Updatmg
Maximum Permitted Rates for Regulated Cable Serv1ces," on or about April
1, 2009, purportmg to set forth and just1fy the maximum rate 1t could
charge to subscribers for bas1c cable service (heremafter the "2009 FCC
Form 1240").
C. Thereafter, the City ra1sed a concern regarding the "pre-
approved" FCC Form 1235 network upgrade add-on 1n the amount of $1.16
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per subscriber per month included with the 2009 FCC Form 1240 rate
filmg. Comcast has proposed to settle the matter identified by the City as
set forth m June 2, 2009, letter from Com cast to the City. The City
believes 1t 1s in the public interest to avoid the delay, uncertainty, and
costs associated with the continued rev1ew of the 2009 FCC Form 1240 and
the Preliminary FCC Form 1235, and any subsequent litigation before the
FCC.
D. The rate set forth herein w1ll govern Comcast's basic service
rate until Comcast lawfully implements a further rate change pursuant to
applicable FCC regulations.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
RESOLUTION
SECTION 1. -Pre-Aporoval FCC Form 1235. The "pre-approval"
version FCC Form 1235 filed March 1, 1999, and its calculated $1.16
network upgrade add-on shall be considered the "f1nal" version FCC Form
1235 for purposes of comply1ng w1th FCC rules and the instruction for FCC
Form 1235, and Comcast agrees that 1t IS barred from filing any add1t1onal
FCC Forms 1235 addressing costs Incurred with respect to the network
upgrade indent1fied in the March 1, 1999, FCC Form 1235. Both parties
agree that the upgrade costs for the Kent system have been fully
recovered for the applicable penod represented in the form and by July 1,
2009, Comcast shall at no time charge the network upgrade add-on set
forth m the March 1, 1999, FCC Form 1235. This agreement shall release
Comcast from any future refund liability ansmg out of the March 1, 1999,
filing of the FCC Form 1235 for Kent; provided, th1s resolution shall in no
way be considered the City's mdemmfication of Comcast m the event that a
cause of action relating to the rates that Comcast has charged is filed, and
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the City shall in no way be exposed to liability it otherwise would not have
been exposed to absent th1s resolution. The City agrees that this satisfies
and resolves any and all rate issues regarding the March 1, 1999, FCC
Form 1235 submitted by Comcast to the City pnor to the 2010 FCC Form
1240 rate filing.
SECTION 2. -2009 FCC Form 1240. With the exception of the FCC
Form 1235 network add-on set forth m the March 1, 1999, FCC Form 1235,
Comcast's max1mum perm1tted rate for bas1c cable service, as calculated 1n
the 2009 FCC Form 1240, is ne1ther approved nor den1ed, but may: (i)
funct1on as a basic serv1ce rate ceiling dunng the relevant rate period, and
(1i) be utilized in future bas1c serv1ce rate filings, to the extent permitted by
and consistent with FCC rules and dec1s1ons.
SECTION 3. -Maximum Permitted Rate. Comcast shall not charge
any rate higher than $14.78, wh1ch is the maximum permitted rate set
forth m the 2009 FCC Form 1240, less the FCC Form 1235 network add-on
set forth in the March 1, 1999, FCC Form 1235, nor Increase that rate,
unless such rate is first filed w1th and approved by the City, in accordance
w1th applicable law and regulations, mcludmg but not limited to the notice
requirements Imposed by 47 C.F.R. § 76.1603, or as otherw1se expressly
permitted under applicable law and regulations. On lme A1 of Comcast's
2010 FCC Form 1240 f1lmg, Comcast shall not select a rate exceeding
$14.7761.
SECTION 4. -Rates Less Than Maximum Permitted Rate. Comcast
may charge rates less than the lawful max1mum perm1tted rate for bas1c
service, as long as such rates are applied in a un1form and
nondiscriminatory way, pursuant to applicable federal, state and local laws
and regulations. The City, however, shall not be deemed to have approved
such rates.
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SECTION 5. -Reliance bv Citv. This resolution is based on the
representations made by Comcast in its 2009 FCC Form 1240. Should
information come to the City's attention that these representations were
inaccurate in any material way, the City reserves the right to take
appropnate action. Th1s resolution is not to be construed as a finding that
the City has accepted as correct any specific entry, explanation,
calculation, or rate in the 2009 FCC Form 1240.
SECTION 6. -Reservation of Rights. The City reserves all of its
rights with respect to rate regulation, mcludmg (but not limited to): (i) the
nght to request and review data, and documents concerning the 2009 FCC
Form 1240 in order to determme the 1mpact, 1f any, such data and
documents have on rates proposed in future basic serv1ce rate filings; (1i)
the right to address issues ra1sed in the 2009 FCC Form 1240 that are
relevant to any City review of subsequent bas1c serv1ce rate filings; and (1i1)
the nght to request additional information concernmg the 2009 FCC Form
1240 that 1s relevant to any City rev1ew of subsequent basic service rate
filings.
SECTION 7. -Written Decision. This resolution constitutes a
written deCision for purposes of 47 C.F.R. § 76.936(a).
SECTION B. -Publtc Nottce. This resolution shall be released to the
public and to Comcast, and a public not1ce shall be published stating that
th1s resolution has been issued and is available for review, pursuant to 47
C.F.R. § 76.936(b).
SECTION 9. -Severability. If any section, subsect1on, paragraph,
sentence, clause or phrase of this resolut1on is declared unconst1tut1onal or
invalid for any reason, such dec1s1on shall not affect the val1d1ty of the
remaming portions of th1s resolution.
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SECTION 10. -Ratification. Any act consistent with the authority
and prior to the effective date of this resolut1on is hereby ratified and
affirmed.
SECTION 11. -Effecttve Date. Th1s resolution shall take effect and
be 1n force Immediately upon 1ts passage.
PASSED at a regular open public meeting by the City Council of the
City of Kent, Wash1ngton, th1s //a -rJv day of June, 2009.
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CONCURRED in by the Mayor of the City of Kent this 0 day of
June, 2009.
ATTEST:
APPROVED AS TO FORM:
T~J?t.~~
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I hereby cert1fy that this is a true and correct copy of Resolution No.
/? ID ~assed by the City Council of the City of Kent, Wash1ngton, the
/6 -day of June, 2009.
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