HomeMy WebLinkAboutMinutes 09/13/1993UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
September 13, 1993
II.
III.
IV.
Call to Order:
Mayor Hallett called the meeting to order at 4:35 p.m.
Roll Call:
Members Present: Jim Hallett, Gary Braun, and Richard Wight.
Members Absent: Thomas Hunt and Joe Michalczik.
Staff Present: C. Knutson, B. Upton, C. Hagar, J. Pittis, S. Hursh, and K. Ridout.
Approval of Minutes:
Councihnan Braun moved to approve the minutes of the August 16, 1993, meeting
as written. The motion was seconded by Councihnan Wight and passed
unanimously.
Discussion Items:
A. Cable TV Rate Regulation Status Report
Mayor Hallett reviewed the information provided by the City Attorney.
Mayor Hallett requested clarification as to which rates the City would be able to regulate
if it proceeded, and to what extent they could be regulated.
Attorney Knutson explained that the economy basic service would the one regulated. The
latitude the City would have in regulating would depend upon the difference between
what the cable company is charging and what the FCC says is a reasonable rate to charge.
If Northland Cable is charging what the FCC says is reasonable, then the City has no
latitude. Attorney Knutson said that if the City became certified, there would be a check
and balance to make sure that what the local operator is charging is comparable to what
the FCC says is reasonable. The City may find out from its consultant that what
Northland is charging is comparable to the FCC benchmark rate. If so, then the City has
done its job and it need go no further.
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September 13, 1993
The City can apply for certification and then do nothing; however, if the City does
become certified it could notify Northland to provide the information as to how it came
up with its economy basic rate. This information would be turned over to the City's
consultant, who would analyze it and compare it with the FCC benchmark rate to see if
it is where it should be.
Councilman Braun recommended that Northland Cable and 3-H Cable Communications
Consultants be invited to the next UAC meeting to answer questions, thereby making the
UAC better equipped to make a recommendation to the Council on this issue.
Councilman Wight requested an explanation of the FCC's complaint form. Attorney
Knutson explained that the City can only regulate the economy basic tier; however, if the
City or any subscriber files a complaint form, then the FCC would start regulating the
other tiers.
Councilman Braun inquired as to when the City Clerk last received a complaint regarding
the cable rates. Clerk Upton responded that it was a year ago, when Northland did the
tiering of their programming and there were rate increases instituted in conjunction with
that tiering. The number of complaints prompted Clerk Upton to utilize the services of
the consultant and refer calls to it. The customers are very distrustful of the cable
industry and feel they are always trying to sneak in rate increases. A member of the
public took it upon himself/herself to distribute a type of complaint form of which the
City received in excess of forty. In addition, the consultant received over 65 phone calls
of complaint. Clerk Upton noted, for purposes of clarification, that many of the
complaints were received from County residents, as well as Sequim residents.
Councilman Braun didn't feel the City should be involved in rate regulation unless it is
absolutely necessary. Councilman Wight felt that if the City can apply for the authority
to regulate without having to use the authority, then it should go ahead and apply for
certification. Mayor Hallett felt the City should not be involved in rate regulating at all.
The citizens would then blame the City if they felt the cable rates were too high, even if
those rates were within the limitations as set by the FCC.
Councilman Braun moved to invite representatives of 3-H Cable Communications
Consultants and Northland Cable Television to the next UAC meeting before any
decision is made by UAC regarding applying for certification. Councihnan Wight
seconded the motion. Further discussion followed regarding what type of questions
could be asked of the Consultant at the next meeting. A vote was taken on the motion,
which carried unanhnously.
B. Fee or Charge Waiver
Public Works Director Pittis requested direction from the UAC regarding the waiving of
certain fees as requested by the Community Action Council on behalf of the Head Start
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September 13, 1993
Program. One of the fees in the request is the system development charge. There is
nothing in that ordinance permitting Director Pittis or City Manager Pomeranz to waive
these fees. These fees provide for new customers to pay their pro rata share of the
system connection charges and inspection services before connecting to the system.
Director Pittis went on to list the fees and what they covered.
Councilman Wight asked for a description of the Head Start Program. Attorney Knutson
replied that it was a federally funded pre-school education program for the children of
low-income families. Attorney Knutson reminded the Committee that there was an item
on the last Council agenda for a program of voluntary contributions to fund low-income
utility discounts. The voluntary approach was necessary, because there is no RCW giving
the City specific authority to grant a discount to all low-income persons as there is for
Iow-income senior and disabled citizens. Since that RCW applies solely to rates and since
Community Action's request relates to fees and assessments, in considering this request
the City could rely on its broad legal authority to allow discounts for low-income persons.
Attorney Knutson advised, however, that in order to grant this request, the ordinance
would have to be amended to authorize the City Manager or City Council to waive the
fees for low-income persons or groups serving low-income persons. Currently, the
ordinance says these fees will be assessed to everyone.
Deputy Director Ridout felt that if the City granted this request for a waiver, it would get
four requests from others for waivers on upcoming projects.
Councilman Wight felt that the Council did have the authority to use general funds to
subsidize certain charitable activities which can be construed to be in the public welfare,
and should if there is public support for the project. However, in the matter of utilities,
the rate payers are being charged for this, not the general fund. Utilities must be self-
supporting.
Mayor Hallett agreed with Councilman Wight. This is a rate payer driven issue.
Director Pittis gave a breakdown of the fees and explained what latitude, if any, there
was for adjustments to these fees.
Mayor Hallett asked how the City would determine when a waiver would be applied.
Attorney Knutson stated that the policy should provide for consistency but that it could
not apply to all non-profit organizations, only to those that serve low-income or disabled
people. A discussion followed regarding the voluntary contribution program and who
qualifies for utility discounts. If the Committee wants to allow for this waiver, the City
would have to amend its ordinance to give such authority to the City Manager or pursuant
to Council approval.
Councilman Wight feels the UAC should say no, and pass this recommendation on to the
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September 13, 1993
City Council.
Councilman Braun felt the City has already received many requests for charitable
contributions, and it is struggling to balance the new budget by making numerous cuts.
It must be realistic in facing where the money would come from if this request were
approved.
Councilman Wight stated that there are many charitable organizations and that neither the
City nor its utilities are in the business of charitable good works. It must provide
services to the community as a whole. He did not feel the City should take on one more
burden having to do with giving away money to special interest groups.
Councilman Wight moved to bring this to the Council through the Consent Agenda
as a reconunendation not to proceed any further with the waiving of fees for
charitable organizations. Councilman Braun seconded the motion, which carried
unanlmonsly.
Next Meeting:
The next meeting of the Utility Advisory Committee will be held on Monday, October
11, 1993, at 4:30 p.m.
VI. Adjournment:
The meeting was adjourned at 5:15 p.m.
Deputy City Clerk