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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 1 Comcast Service Rate 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 2 Comcast Service Rate 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. 3 Comcast Service Rate 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. 4 Comcast Service Rate -~ 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. ~ CONCURRED in by the Mayor of the City of Kent this 0 day of June, 2009. ATTEST: APPROVED AS TO FORM: T~J?t.~~ ---..... . . . . . , . ... .... ............. "'~ 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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