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HomeMy WebLinkAboutResolution No. 97-C140RESOLUTION NO. 97- C140 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ORDERING AND DIRECTING CHARTER COMMUNICATIONS ENTERTAINMENT II, L.P. TO CEASE AND DESIST IN INCREASING ITS RATES AND CHARGES FOR THE BASIC SERVICE TIER AND OTHER RATES AND CHARGES SUBJECT TO THE JURISDICTION OF THE CITY PENDING SUBMITTAL OF APPROPRIATE REGULATORY FORMS MANDATED BY THE FEDERAL COMMUNICATIONS COMMISSION. WHEREAS, the City of Azusa, California (the "City") has been certified by the Federal Communications Commission (the "Commission") to regulate the rates charged by Charter Communications Entertainment II, L.P. ("Charter") for the Basic Service Tier and associated equipment and installation (collectively "Regulated Rates"); and WHEREAS, the regulated rates imposed and collected by Charter have been established pursuant to the Rules and Regulations (the "Rules") of the Commission; and WHEREAS, Charter has filed a petition (the "Petition") with the Commission seeking certification by the Commission that Charter is now subject to Effective Competition and thus its rates are no longer subject to the regulatory jurisdiction of the City or the Commission; and WHEREAS, the City has opposed the Petition; and WHEREAS, the Petition is not valid, binding, and effective until it has been accepted and/or approved by the Commission; and WHEREAS, the Commission has neither accepted nor approved the Petition; and WHEREAS, Charter has sent written notice to the City, dated August 25, 1997, that, effective November 1, 1997, it intends to raise the rate actually charged for the Basic Service Tier within the City without complying with the Rules of the Commission or without receiving the consent of the City; and WHEREAS, Charter has neither filed the regulatory forms mandated by the Commission with the City to justify the proposed increase nor received the approval of the City as required by the Rules of the Commission; and WHEREAS, Charter now seeks to exercise self-help in raising its rates and charges for the Basic Service Tier in violation of the Rules of the Commission; and WHEREAS, the proposed rate increase, if implemented by Charter without the consent of the City or the Commission, will constitute a violation of applicable federal law and impose a material hardship upon subscribers residing within the City; and WHEREAS, Charter's regulated rates remain subject to the lawful jurisdiction of the City pursuant to the Rules of the Commission; and WHEREAS, the City has provided written notice to Charter, by way of its written Opposition to the Petition, that a unilateral rate increase by Charter will constitute an intentional violation of applicable law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: 0 0 1. Charter is hereby ordered to cease, desist, and refrain from implementing the proposed rate increase on November 1, 1997, or any other date, until the earlier of: (i) the approval of said proposed rate increase by the City Council pursuant to the procedures specified in the Rules of the Commission; or (ii) the acceptance and approval of the Petition by the Commission. 2. Charter is hereby ordered and directed to maintain without increase the previously -approved maximum permitted Regulated Rates as established by resolution and rate order of the City or as approved by operation of law based upon the failure of the City to challenge within the time frame specified in the Rules. 3. By this Resolution, Charter is hereby provided official written notice by the City that a violation of this Resolution shall constitute a violation and breach of applicable law within the meaning of Section 626(C)1(A) of the Cable Communications Policy Act of 1984, as amended and Charter is hereby formally requested to cure and correct said breach and violation. Failure of Charter to adhere to the terms and conditions of this Resolution shall subject Charter to any remedies available to the City under applicable law, including but not limited to, potential termination and/or non -renewal of Charter's franchise to the extent not inconsistent with applicable law. 4. This Resolution shall become binding, effective, and operative upon its adoption. APPROVED AND ADOPTED this 6th day of October 1997 by the following vote: AYES: HARDISON, STANFORD, ROCHA, BEEBE, MADRID NOES: NONE ABSENT: NONE I HEREBY CERTIFY that the foregoing resolution No.97-C 140, was duly adopted by the City Council of the City of Azusa at a regula meeting thereof on the 6th day of October, 1997.