City Council Minutes 2014 09 02 - Laserfiche WebLink

Home Browse Search

City Council Meeting Minutes September 2, 2014 Page 9 of 16 VOTE: Roll call vote was taken. The motion carried by a vote of 7 -0. DISCUSSION /DIRECTION /ACTION — EFFECTIVE COMPETITION PETITION TO THE FEDERAL COMMUNICATIONS COMMISSION Mayor Muckle requested a staff presentation. Acting Deputy City Manager Muth explained during the ongoing Comcast franchise discussions staff has been asked multiple times if the City has the ability to regulate rates as a part of the franchise. Under Federal Law a Local Franchise Authority (LFA) may regulate the rate of the basic tier of cable service only if there is no finding of "effective competition." If the Federal Communications Commission (FCC) finds there is "effective competition" in the municipality the LFA may not regulate the rates of the basic service tier. Because of the number of requests received during the Comcast negotiations process, staff is requesting Council direction on whether to proceed with the effective competition petition. In 2005, Comcast filed a Petition for Reconsideration and Special Relief, also known as an effective competition proceeding, for a number of Cities in the metro area, including Louisville. In 2006, Comcast and the GMTC discussed the rate issues, the effective competition proceeding, and the allegations of possible franchise violations, and reached a comprehensive settlement of all outstanding issues. That settlement included rate reductions and refund payments to Comcast customers and in return the GMTC members withdrew their opposition to the effective competition proceeding. If the City is interested in asking for a new ruling, the proceeding would be before the FCC and would be an effort to reclaim the rate regulation authority revoked when effective competition was found. A franchising authority wishing to assume jurisdiction to regulate basic service and associated equipment must file a `Petition for Recertification' accompanied by a copy of the earlier decision denying or revoking certification. The petition must contain a clear showing, by affidavit or objectively verifiable data, the reasons for the earlier finding of effective competition. The threshold number the City would be looking at is 15% of the video customers in Louisville currently subscribing to a video programmer other than Comcast. The City asked legal counsel for the current satellite numbers to determine whether there would be a case for a new petition. The information received established the City is at 14.23 %, which is below the 15% threshold. There are some variables, such as the vacancy rates of 4.5 %, which would put the number at 14.9 %. If the City chooses to file a petition for reconsideration, it is likely Comcast would question those numbers. If the City chooses to proceed, staff estimates the cost of a proceeding would be between $7,000 and $15,000. If the City was successful, one question to address is how long would a new effective competition stand. The City of