HomeMy WebLinkAboutA003 - letter from City Attorney regarding FCC requirments C2t of 4 AM '
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CITY ATTORNEYS February 22, 1973
John R. Klaus
Mark J. Nolan
Honorable Stuart N. Smith, Mayor
and Ames City Council Members
Re: Cable Television Ordinance
During the meeting of February 20th, an attorney representing
certain cable television interests asserted that the proposed Ames
Cable Television Ordinance was deficient in the provision it makes
for consumer grievance procedures and procedures for making changes
in rates and charges.
The Federal franchise standards are set out in Section 76. 31
of Subparagraph C. , Volune 437, No. 30 of the Federal Register. The
requireme �s for consumer grievance procedures and rate and charge
changes are:
" (4) The franchising authority has specified or approved
the initial rates which the franchisee charges subscribers
for installation of equipment and regular subscriber services .
No changes in rates charged to subscribers shall be made
except as authorized by the franchising authority after an
appropriate public proceeding affording due process .
(5) The franchise shall specify procedures for the in-
vestigation and resolution of all complaints regarding the
quality of service, equipment malfunctions, and similar
matters, and shall require that the franchisee maintain a
local business office or agent for these purposes. "
The procedure for changes in rates and charges provided for
by our ordinance is set out in Section 36-11004 as follows :
" (3) A Grantee' s rates and charges to its subscribers for
television and radio signals shall be fair and reasonable
and no higher than necessary to meet all its necessary costs
of service (assuming efficient and economical management) ,
including a fair return on the original cost, less depreciation,
of its properties devoted to such service (without regard to
any subsequent sale or transfer price or cost of such prop-
erties.
(4) The City Council shall cause the Grantee 's rates and
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February 22, 1973
Honorable Stuart N. Smith, Mayor
and Ames City Council Members
charges to conform to the provisions of subsection (3)
hereof , and for this purpose the Council shall deny in-
creases or order reductions in such rates and charges
when it determines that in the absence of such action
on its part, the Grantee ' s rates and charges or proposed
increased rates and charges will not conform to the said
subsection (3) .
(5) However, no action shall be taken by the City Council
with respect to the Grantee's rates under this section until
the Grantee has been given reasonable notice thereof and an
opportunity to be heard by the Council with regard thereto. "
These procedures fulfill the Federal requirement that no
changes in rates and charges be made until " . . .authorized by the
franchising authority, after an appropriate public proceeding ,
affording- due process. "
The proposed Ames ordinance provides for remedy of consumer
com-jlaints in Section 36-1011 as follows:
" (3) A Grantee shall establish and maintain within the City
of Ames a local business office, which office shall be open
for business between the hours of 8: 00 a.m. and 5: 00 p.m. ,
Monday through Friday, except on holidays, and said office
shall be appropriately staffed to receive and answer all
subscriber complaints. "
I recommend that the City consider adding to this provision,
the following :
"Grantee shall make a monthly report to the City Council of
all consumer complaints , and the action taken to remedy the
complaints. This report shall state the names and addresses
of the complaintants , the date the complaint was received,
the nature of the complaint, and the specific action taken
to renedy each complaint. "
In my judgment this procedure meets the FCC standard. If not,
the FCC should be the one to tell us , not a potential franchisee. I
cannot,. at this t�.me, think. of more s-pecific procedurial requirements
that would necessarily be in the public interest.
Respectfully submitted,
f..
John R. Klau
City Attorney
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