HomeMy WebLinkAboutAgenda Packet - February 4, 1985 - CC .447.7$.0•0
CITY OF AZUSA
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CITY ADMINISTRATOR
MEMORANDUM
TO: Honorable Mayor and City Council
FROM: Julio J. Fuentes, Assistant to the City Administrator
DATE: February 4, 1985
SUBJECT: CABLE TV RATE INCREASE
Mr. Bob Green has notified the City o - Jones Intercable'fr plan to
increase its fee for basic service by fl een percen . Effective
April 1, 1985, the cost of basic service will jump from $12 . 95 to
$14.95 per month. Mr. Green contends that the rate change is
due to increased cost in operations and programming.
Mr. Green also said that Jones' method for a rate increase is
based on the California deregulation law. Under the law, a cable
company has the authority to deregulate rates and implement an
unlimited increase if it can show that:
1. it has a twenty or more channel capacity;
2 . it receives signals from satellite earth stations;
3 . it has a penetration rate of less than seventy percent; and
4. it is willing to contribute fifty cents per subscriber for
local organization.
Apparently, Jones Intercable qualifies under this standard and
has the authority to deregulate and implement an unlimited rate
increase to offset its costs.
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213 E. FOOTHILL BLVD. , AZUSA, CA 91702 , P.O. BOX WWW (818) 334-5125
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Memorandum: City Council
February 4, 1985
Page 2
Since Jones has the authority to deregulate its rates, there is
little that the City can do to prevent it. Therefore, Council
could pursue one of the following methods in dealing with this
issue (however, please note that either alternative will result
in a rate increase) :
1. Council could reject the rate increase and force Jones into
a rate deregulation process. Under this process, Jones
would simply have to notify the City, the County, the Board
of Supervisors, the State and its subscribers by mail of the
proposed increase; or
2 . The Council could approve a $2 . 00 rate increase and thus
assist Jones in avoiding the deregulation process.
For your information, Mr. Green will be at the 7: 30 p.m. Council
meeting should you have any questions regarding this matter.
Respectfully submitted,
lio Fuentes
Assistant to the City Administrator
JJF:mr
Attachment: Jones Intercable letter of January 28, 1985