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HomeMy WebLinkAboutItem VI (D) Discussion re: City Options under Federal Cable TV Consumer Protection and Competition Act of 1992 �r AGENDA 9-21-93 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item VI D OCO G J.DI-V 1 1 V AIV LCK1.,K1r 1 '" CITY OF OCOEE COMMISSIONERS oN ... 40 Air O. 150 N.LAKESHORE DRIVE PAUL W.FOSTER Co 0 OCOEE,FLORIDA 34761 VERN COMBS O (407)656-2322 SAM WOODSON yl�'P OF G OOV CITY MANAGER ELLIS SHAPIRO STAFF REPORT TO: THE HONORABLE MAYOR AND BOARD OF CITY COMMISSIONERS FROM: JANET RESNIK, PLANNER / DATE: SEPTEMBER 16, 1993 v'" SUBJECT: DISCUSSION REGARDING THE CABLE TELEVISION CONSUMER PROTECTION AND COMPETITION ACT OF 1992 Last October, the United States Congress passed the Cable Television Consumer Protection and Competition Act of 1992 in an effort to promote competition in the cable television industry, keep rates at reasonable levels, and ensure adequate customer service. As part of the new legislation, local franchise authorities like the City of Ocoee can now become certified by the Federal Communications Commission (FCC) and regulate rates for the basic tier of cable television service and equipment needed for that service (additional outlets, converter boxes, etc. ) . The FCC regulates the rates for all other tiers of programming but only if there is a formal complaint filed by a subscriber. To become certified with the FCC, the City must file an application demonstrating that it has the legal authority to be a rate regulator, that it will adopt rules implementing rate regulations, and that it has the staff or ability to hire the necessary staff or consultants to devise and administer the program. Once the application is filed with the FCC, certification becomes effective in 30 days unless the FCC acts to disapprove it. Once certified, the City has 120 days to establish rate regulation rules. The window for filing for certification opened September 1, 1993. The FCC will regulate basic tier rates only if the City can demonstrate that it is unqualified or lacks sufficient resources to regulate rates. In that regard, the City would have to prove why it could not use its franchise fees to cover the cost of rate regulation. The basic tier rates would go unregulated if the City does not become certified and the FCC does not agree to do the regulating on the City's behalf. The FCC will, however, still review rates for tiers above the first tier, in response to customer complaints. aiL k5 Page 2 Cable Television Staff Report September 16, 1993 The new Act also gives the City authority to adopt customer service standards. The FCC customer service standards (see attached) are minimum standards which all cable operators must comply with; however, the FCC did not provide for enforcement provisions. It is up to individual cities to determine whether they want to adopt more stringent standards and what the enforcement mechanisms will be. The obvious advantage of having the City regulate rates and establish customer service standards is the protection it affords the customers. On the other hand, establishing the rates and standards will cost a significant amount of money and a considerable amount of staff time will be required to work with the consultants and subsequently administer the regulations. If the City chooses to regulate rates and/or adopt customer service standards, it may want to consider working with neighboring municipalities to share in the cost of the consultant fees that result. Staff is seeking direction on how the City Commission would like to proceed. If the City Commission is interested in regulating rates and/or adopting customer service standards, staff would recommend asking an authority on the subject to come and present a more detailed explanation of the rights and obligations of the City under the new Act. There is no deadline for filing for certification; however, the national rate freeze that was instituted earlier this year while the FCC prepared the necessary policies and procedures to implement the legislation, ends November 15, 1993. There are certain possible benefits for customers if the City submits for certification before that date. Because of this, if the City Commission would like to hear more specifics, staff recommends that the item be placed on the October 5 agenda. cc: Ellis Shapiro, City Manager t�y F.C.C. CUSTOMER SERVICE STANDARDS Effective July 1, 1993 , a cable operator shall be subject to the following customer service standards: (I) Cable system office hours and telephone availability - (A) The cable operator will maintain a local, toll-free or collect call telephone access line which will be available to its subscribers 24 hours a day, seven days a week. (1) Trained company representatives will be available to respond to customer telephone inquiries during normal business hours. (2) After normal business hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after normal business hours must be responded to by a trained company representative on the next business day. (B) Under normal operating conditions, telephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30 ) seconds. These standards shall be met no less than ninety (90) percent of the time under normal operating conditions, measured on a quarterly basis. (C) The operator will not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards above unless an historical record of complaints indicates a clear failure to comply. (D) Under normal operating conditions, the customer will receive a busy signal less than three (3) percent of. the time. (E) Customer service center and bill payment locations will be open at least during normal business hours and will be conveniently located. (II) Installations, outages and service calls - Under normal operating conditions, each of the following four standards will be met no less than ninety five (95) percent of the time measured on a quarterly basis: • Customer Service Standards Page 2 (A) Standard installations will be performed within seven (7) business days after an order has been placed. "Standard" installations are those that are located up to 125 feet from the existing distribution system. (B) Excluding conditions beyond the control of the operator, the cable operator will begin working on "service interruptions" promptly and in no event later than 24 hours after the interruption becomes known. The cable operator must begin actions to correct other service problems the next business day after notification of the service problem. (C) The "appointment window" alternatives for installations, service calls, and other installation activities will be either a specific time or, at maximum, a .four-hour time block during normal business hours. (The operator may schedule service calls and other installation activities outside of normal business hours for the express convenience of the customer. ) (D) An operator may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. (E) If a cable operator representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer. (III) Communications between cable operators and cable subscribers- (A) Notifications to subscribers - (1) The cable operator shall provide written information on each of the following areas at the time of installation of service, at least annually to all subscribers, and at any time upon request: (a) products and services offered; (b) prices and options for programming services and conditions of subscription to programming and other services; (c) installation and service maintenance policies; (d) instructions on how to use the cable service; stonier Service Standards page (e) channel positions of programming carried on the system; and, (f) billing and complaint procedures, including the address and telephone number of the local franchise authority's cable office. (2) Customers will be notified of any changes in rates, programming services or channel positions as soon as possible through announcements on the cable system and in writing. Notice must be given to subscribers a minimum of thirty (30) days in advance of such changes if the change is within the control of the cable operator. In addition, the cable operator shall notify subscribers thirty (30) days in advance of any significant changes in the other information required by the preceding paragraph. (B) Billing - (1) Bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. (2) In case of a billing dispute, the cable operator must respond to a written complaint from a subscriber within thirty (30) days. (C) Refunds - Refund checks will be issued promptly, but no later than either - (1) the customer's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or (2) the return of the equipment supplied by the cable operator if service is terminated. (D) Credits - Credits for service will be issued no later than the customer's next billing cycle following the determination that a credit is warranted. Customer Service Standards Page 4 (IV) Definitions - (A) Normal Business Hours - The term "normal business hours" means those hours during which most similar businesses in the community are open to serve customers. In all cases, "normal business hours" must include some evening hours at least one night per week and/or some weekend hours. {B) Normal Operating Conditions - The term "normal operating conditions" means those service conditions which are within the control of the cable operator. Those conditions which are not within the control of the cable operator include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of the cable operator include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the cable system. (C) Service Interruption - The term "service interruption" means the loss of picture or sound on one or more cable channels.