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211 <br /> <br /> Mr. Vandever asked if a faster rate of decline is anticipated in the suburbs and whether <br />annexation is desirable, and Mr. Lucy replied that decline is expected as there is an increased <br />outward movement of housing and employment and, because of the aging of housing in the <br />county, any annexation may need to be very large in size to be beneficial. <br /> <br /> Ms. Slaughter asked why Raleigh, Charlotte, and Nashville are successful urban areas, <br />and Mr. Lucy replied that those areas have had high technology, successful industries, large <br />annexation, and increased earnings. <br /> <br />RESOLUTION: ADELPHIA RATE REGULATION ORDER <br /> <br /> Mr. Clyde Goutdman, City Attorney, explained that if the resolution is approved, <br />Adelphia will be ordered to reduce their currently monthly rate for the basic service tier from <br />$8.70 to $6.61, retroactive 15 months. Mr. Gouldman stated that Adelphia is being asked to <br />comply with the benchmark approach and provide refunds to customers. <br /> <br /> Mr. John Glicksman, attorney with Adelphia Cable Corporation, explained that <br />Adelphia's rates for basic service lag inflation and FCC rates. Mr. Glicksman stated that <br />Adelphia's cost of service filing shows that $10.89 could be charged. Mr. Glicksman stated <br />that the City ignored most of Adelphia's cost of serving filing and only picked up on the <br />informational benchmark including in the filing. Mr. Glicksman stated that Adelphia is at a <br />loss to understand the City's position and has no choice but to litigate the matter with the <br />FCC. Mr. Glicksman said that he hopes Council will not approve the resolution. <br /> <br /> Responding to a question from Mr. Vandever about the FCCs decision, Mr. Gouldman <br />explained that the Council previously found that Adel!3hia's a la carte offering was not a <br />realistic service choice, a decision upheld by the FCC after Adelphia appealed. Mr. <br />Goutdman stated that Adelphia has switched in mid-stream from benchmark to cost of service <br />filing. <br /> <br /> M~r. Toscano asked if similar situations are occurring in other localities served by <br />Adelphia, and Mr. Glicksman stated that only a very limited number of communities l~ave <br />taken similar action as being considered by the City. <br /> <br /> Ivlr. Toscano stated that he understands that the rates are set by a legal standard, and <br />while he understand the inflation argument, noted that it does not enter into the standm'd. <br /> Mr. Gticksman noted that after the benchmark or cost of service is established, <br />Adelphia can file inflation increases. Mr. Glicksman stated that Adelphia did the cost of <br />service filing after the City challenged the benchmark filing, and added that the benchmark of <br />$8.70 has already been approved by the City. <br /> <br /> Mr. Gouldman stated that the benchmark is subject to any changes in the FCC <br />regulations and changes were in fact made in the a la carte offerings. <br /> <br /> Mr. Toscano noted that the savings to Adelphia customers could be as much as <br />$370,000, and asked what costs the City could incur if the matter is litigated. <br /> <br /> Mr. Gouldman stated that if Adelphia appeals, the cost to the City would likely be <br />between $3,000 and $5,000. <br /> <br /> Responding to a question from Mr. Vandever, Mr. Goutdman stated that Adelphia <br />benchmark filing showed a benchmark of $6.61, and he would argue that the benchmark <br />filing must be complete before changing to the cost of service filing. <br /> Mr. Glicksman stated that he disagrees legally that Adelphia cannot change from the <br />benchmark to cost of service. <br /> <br /> On motion by Ms. Daughert55 seconded by Mr. Vandever, the resolution "Regarding <br />Regulation of Cable Television Rates Ibr the Basic Service Tier and Associated Equipment.. <br />was unanimously approved by Council. <br /> <br /> <br />