HomeMy WebLinkAboutCity Attorney MemoCITY OF MIAMI
CITY ATTORNEY'S OFFICE
MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jorge L. Fernandez, City Attorney
DATE: October 28, 2004
RE: Proposed resolution for City Commission Meeting — October 28, 2004
Comcast Petition for Relief to the Federal Communications Commission
Litigation No. LO-04-00343
The attached proposed resolution requests authorization to take any and all legal actions
necessary or permitted to protect, preserve and defend the interests of the City of Miami, (`City")
including, but not limited to, any action authorized in law or in equity, to obtain relief or to
remedy any losses or damages to the City of Miami as a result of Comcast's Petition for Special
Relief with the Federal Communication Commission ("FCC").
The Telecommunications Act of 1996, 47 U.S.C. Section 521, et seq., commonly referred
to as the "Cable Act", and Chapter 11, City of Miami Code ("City Cable Ordinance"), grants the
City the authority to enter into franchise agreements with cable operators to provide cable
television services. The City was certified by the FCC to regulate cable television rates on
September 1, 1993, however, the FCC determines the maximum allowable rates that cable
operators may charge. Since March 31, 1999, the City, as a local franchising authority, has
limited authority to regulate the rates for basic tier of cable services.
Pursuant to Resolution No. 00-489, adopted June 8, 2000, and Resolution No. 02-917,
adopted August 22, 2002, AT&T Comcast Corporation ("Comcast") is authorized to be a cable
operator within the City limits. Pursuant to Section 37 entitled "Rates," of the Comcast
agreement, the City may regulate certain aspects of Comcast's rates for cable services,
installation, disconnection and equipment rental and sales. The City may fine or seek other
remedies if Comcast enacts discriminatory rates. Currently, it may also petition the FCC
regarding Comcast's rate increases related to basic tier cable service.
Comcast has filed a petition with the FCC for relief from the rate regulation in fourteen
Florida areas: Miami, Coral Gables, Hialeah, Hialeah Gardens, Medley, Miami Springs, North
Miami, Opa-Locka, Sweetwater, Virginia Gardens, West Miami and unincorporated areas of
Miami -Dade County. Comcast argues that in order to effectively compete with satellite dish
providers in the Miami -Dade County area, it should be exempt from rate regulation from these
local governments. According to Comcast's calculations, two or more satellite dish providers
supply services to 16.14% of the City's population.
(7,4 A
Honorable Mayor and Members of the City Commission
October 27, 2004
Page 2 of 2
The City Cable Ordinance provides that the rates shall be applied in a uniform and
consistent manner without undue preferences or advantages to any subscriber'. If Comcast
prevails in its petition before the FCC, the City will lose its ability to petition the FCC for
reconsideration of potential future rate increases relating to basic tier service. Also, if the FCC
grants Comcast's petition, Comcast have the ability to offer different service packages to
subscribers in different areas of the City in order to compete with the satellite dish and other
multichannel video channel providers.
JLF/ENW/ir
Pursuant to Section 11-20, City of Miami Code, Comcast may provide discounts for senior citizens, the
economically disadvantaged or disabled that are applied in a uniform and consistent manner. It may also offer bulk
discounts to multiple dwelling buildings to the extent such discounts are otherwise permissible by law.
W03 Mayor&CityComm