Ojai Begins Review of Its Cable Firm : Television: Consultant is hired to investigate Cablevision following rate complaints.

The city of Ojai has hired a consultant to perform a three-month investigation of its cable company, the first major step toward gaining control of soaring cable rates due to federal deregulation in the mid 1980s.

Ojai becomes the second city in Ventura County to conduct an independent review of a cable company. Thousand Oaks has two full-time employees to handle cable franchise agreements, negotiations and subscriber complaints.

The independent review of Ventura County Cablevision, being conducted by Laurel Communications Group of Agoura Hills, was fueled by hundreds of complaints to Ojai City Hall over the past two years due in part to the escalating costs of cable service. There are nine cable companies including Cablevision in the county.

“We want some help interpreting our cable franchise,” said Dan Singer, the city’s administrative assistant who helped coordinate the deal. “We want to find out what kind of services we’re getting in comparison to other communities.”

Ojai and Thousand Oaks, like several cities in the county, have become increasingly frustrated with cable companies raising rates and levying extra add-on charges. Many have begun to take a closer look at how to monitor the industry.

Many cities in the county have depended on their own cable company to conduct technical reviews, without having an outside company examine services and complaints.

Although cities nationwide have attempted to curb cable charges, they have increased at twice the rate of inflation since deregulation in 1984. Empowered by the 1992 Cable Act passed by Congress last fall, cities are lining up in high numbers to file for regulatory status.

The investigation will entail a thorough review of services and rate increases over the past few years. There will also be at least two public hearings for customers to air their complaints about service.

Ojai officials hope to have a contract finalized with Laurel Communications by midweek. Financial details of the tentative deal have not been released.

Cities like Ojai hope to become cable regulators by applying for that status with the Federal Communications Commission. But the FCC has delayed accepting applications until Oct. 1, because the agency was not prepared to deal with the amount of applications for regulation status, city officials said.

Ojai Councilwoman Nina Shelley, an outspoken critic of the rate increases, said the hikes are hurting senior citizens who are homebound and rely on television for information.

“I feel we do need a professional survey of the services that we’re getting,” she said. “We really want an objective professional scrutiny of the cable service.”

In the past, local cable officials conducted their own technical review every three years with the city footing half the bill as part of a 15-year franchise agreement. The city is in its ninth year of that contract.

But Cablevision, which serves about half of the county’s 180,000 cable subscribers, has only agreed to pay for half of the technical review and none of the other consultant fees, city officials said. Cablevision officials have been unavailable for comment.

Consulting firm owner Laurie DeVarney said she has hired Jonathan Kramer of Encino, a technical cable expert to assist in the investigation. Kramer has also assisted Thousand Oaks in its negotiations and review of Cablevision, said Paula Harris, cable coordinator for Thousand Oaks.

Kramer will be in charge of inspecting above and underground cables, making sure the company is abiding by safety codes and checking that the signal stays on line, DeVarney.

“We’re basically going to be preparing a report card,” DeVarney said. “We’re here to get the book in order and let them (Cablevision) know where they stand.”

DeVarney said they will investigate how Cablevision handles customer complaints about service and signal problems. She also plans to find out why Ojai only receives 3% of Cablevision’s profits while other cities in the county receive close to 5% from their cable company.

Singer said the city has received at least two calls a week from irate cable customers dissatisfied with their service. Many have complained about their picture quality and their signals quitting.

“We certainly feel there are more problems than there should be,” Singer said. “It will be interesting to see what we find out from the review.”

Under the new law, cable rates would be rolled back to September, 1992, levels if the current rates exceed federal benchmark levels.

The federal benchmarks represent the cost of cable services in competitive markets. Cable companies compete directly in only 45 of the nation’s 9,400 franchise areas, according to industry statistics.

Any city can file an application with the FCC, which would allow them to implement federal price guidelines for basic service.

From 1991 to 1993, Ojai residents had a rate increase of 27% for expanded cable service, which features 30 channels. They pay $21.50 a month, up from $16.90 in 1991. Basic service, which offers only 13 channels, had a 65-cent increase over the same years.

The countywide average for expanded service, which is the most popular version for cable viewers, is $22.68 a month. Cablevision also raised the rates for Thousand Oaks, Camarillo, Fillmore, Moorpark and Santa Paula, according to cable statistics.

The FCC has also extended its current cable rate freeze to Nov. 15. It was previously scheduled to end on Aug. 2, according to cable officials.

“We need to get a solid, close look at what we’re getting,” said Shelley. “It’s an economic issue. We’re trying to look out for our residents.”