YORBA LINDA : Moves to Regulate Cable Firm Begin

The city took the first step this week toward establishing regulatory powers over cable company Jones Spacelink.

A resolution declaring the city’s intent to seek regulatory powers was approved by the City Council on Tuesday. The action sets in motion the certification process established last year by the Federal Communications Commission to grant local governments regulatory authority.

Once the authority is granted, the city will be able to regulate several aspects of cable service, such as rates, customer service and home wiring.

The city is most interested in regulating the amount cable customers pay for monthly service. Currently, the rates are between $14.75 and $22.95 a month for basic service.

The FCC will establish a benchmark to reflect average cable rates for basic service nationwide. If Jones Spacelink exceeds the benchmark, the city will require that the company’s rates be rolled back 10% or reduced to the benchmark level, whichever is less.

According to Assistant City Manager David Gruchow, the city has received many calls from customers concerned about a recent restructuring of cable services that resulted in an increase in price for basic service.

Gruchow said the city also gets frequent complaints about poor picture quality and a lack of customer service from Jones Spacelink, but said the cable company has a good track record of responding to complaints.

“We would have (sought regulatory powers) regardless of the quality of the cable operator,” Gruchow said. “The city needs to go on record that we are looking out for the residents.”

Janet Spatz, Jones Spacelink interim general manager, said she is confident the company’s rates are competitive. However, the company will be evaluating its rates against possible benchmark levels, she said.

The city must file an application with the FCC by October. Within 30 days of filing, the FCC will approve the certificate. After notifying Jones Spacelink that approval is granted, the city will have regulatory authority.