6.3 Agr Cable TV Rate
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
1/13/03
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
6
CITY MANAGER
ITEM
NO.
Page 1
ITEM:
3
BY: Dennis Kissinger
BY:~~
Consideration of Cable Television Rate Change proposed by Cox Communications, Inc. for Basic
Service.
BACKGROUND:
In general, the federal government has pre-empted local government action as it relates to cable
television rates, channels, service, etc. However, in communities where there is no effective
competition, as is the case in Salina, the federal government does allow some very limited
oversight of Basic Service rates if the local government chooses to retain that very limited
oversight role. Salina has chosen to retain some review authority. We do require in our franchise
a minimum number of Basic Cable channels. We do not have full rate regulation authority over
Basic Service rates, but do have the ability to review the cable companies filings with the Federal
Communications Commission, which establishes formulas for maximum Permitted Rates. Our
cable television franchise ordinance with Cox Communications requires proposed rate changes be
submitted to the City for "approval".
Cox has filed with the Federal Communications Commission their proposal to adjust prices for
Basic Service effective April 12, 2003. Approximately 2,300 of the total 17,600 cable customers in
Salina subscribe to only the Basic Service Tier.
In this case, the proposed change is a reduction in Basic Tier cable television rates from the
current monthly rate of $9.04 to a proposed monthly rate of $8.59. (Both prices do not include
required taxes, franchise fees, access fees, etc.) Enclosed is a Proposed Rate Structure
Summary for Basic Service, Equipment and Installation. Staff has reviewed the FCC forms and
they appear to be in order, with the FCC determined Maximum Permitted Rate calculated at $8.59
per month.
In addition, Cox does plan an April 12 increase in rates for their Expanded Service tier, but those
rates have been fully deregulated by the federal government and are not within the City's scope of
review.
RECOMMENDED ACTION:
Acknowledge and accept the Cox Communication rate change for Basic Service as proposed.
Enclosures
Cox Communications Inc. .. Salina
Proposed Rate Structure
Basic Service, Equipment and Installation Rate Summary
Rates Effective April 12, 2003
Current Operator
Retail Rate MPR Selected
Service Rates:
Basic Tier $9.04 $8.59 $8.59
Equipment Rental Charaes:
Non-Addressable Converter $0.57 $0.66 $0.66
Addressable Converter $3.00 $4.44 $4.44
Digital Converter $3.00 $4.44 $4.44
Remote Control $0.21 $0.22 $0.22
Installation Charaes:
Installation of Unwired Homes $29.95 $61.44 $29.95
Installation of Prewired Homes $29.95 $34.79 $29.95
Installation of AlO at Initial Installation $14.95 $31.69 $14.95
Separate Installation of AlO $29.95 $35.68 $29.95
Note: Rates exclude Franchise Fees
Cox Communications Inc. - Salina
True Up Period: 01/01/02 -11/301G2
Projected Period: 04112/03 - 04/11/04
01/01/02 - 04111102 04/12/02 - 11/30/02 04/12/03 - 04/11104
, Channel-TrueJUp .Period # Channel- Projected # Channel - Projected
:1 KOOD (PBS) 2 KOOD 2 . KOOO
3 KSNW (NBC) 3 KSNW (NBC) 3 KSNW (NBC)
4 KAAS (FOX) 4 KAAS (FOX) 4 KAAS (FOX)
5 KWCV (WB) 5 IfMICV (WB) 5 IfMICV (WB)
6 City Ch 6 UPN 6 KSCC
7 WGN 7 WGN 7 WGN
8 KPTS (PBS) 8 KPTS (PBS) 8 KPTS (PBS)
9 KMBC (ABC) 9 KMBC (ABC) 9 KMBC (ABC)
10 KAKE (ABC) 10 KAKE (ABC) 10 KAKE (ABC)
1 TV GUIDE CHANNEL 11 TV GUIDE CHANNEL 11 TV GUIDE CHANNEL
12 IfMICH (CBS) 12 IfMICH (CBS) 12 IfMICH (CBS)
13 WIBW (CBS) 13 WIBW (CBS) 13 WIBW (CBS)
19 SCHOOL CHANNEL 14 Weather Channel 14 Weather Channel
20 City Ch 18 HSN 18 HSN
21 WEATHERCH 19 School Channel 19 School Channel
22 Discovery 20 City Channel 20 City Channel
23 CNN 21 City Channel 21 City Channel
24 HEADLINE NEWS 22 Cox Kansas 22 Cox Kansas
25 TBS 23 avc 23 avc
26 HSN 24 C-Span 24 C-Span
27 avc 25 C-Span2 25 C-Span2
28 FX
29 KFYI
30 CSPAN 2
70 C-Span
75 Info
26 Total Channels 21 Total Channels 21 Total Channels
Salina 2oo] Final.xls
C1Iaonel Line-Ups
Cox Communications. oInc.