Council to Consider Cutting Cable Rates

The Burbank City Council is scheduled to consider cutting the hourly service rate of a local cable operator to a third of what the company wants to charge at tonight’s meeting.

Sammons Communications, whose franchise agreement with the city is up for renewal, has asked the city for permission to charge $71.25 per hour for repair work.

City officials have suggested that the rate be $25 per hour.

New regulations by the Federal Communications Commission that went into effect in October allow local municipalities to regulate cable television rates.

“Our goal is to make sure the hourly service charge reflects costs and reflects the market,” said Steve Helvey, assistant city manager.

City officials cite a report by the National Assn. of Telecommunications Officers and Advisors that says the average hourly service charge for 81 cable companies in the country is $26.77.

Helvey said the city does not object to the cable operator’s monthly rate of $10.16 for basic cable service, which is far below federal pricing caps, or the $30 flat rate charged for installation.

Sammons has countered that its repair rate is fair when compared with what is asked by service people such as electricians and plumbers.

Sherri Ungar Rodriguez, deputy city attorney who is on the city’s negotiating team, said that the alternate figure of about $25 would be proposed tonight. If adopted by the City Council, Sammons would have 30 days to appeal the decision to the FCC, she said.

Also at Tuesday’s meeting, the City Council--acting as the Redevelopment Agency--will consider entering final negotiations with Cusumano Development Industries of Burbank to continue negotiations for a housing/retail project at the corner of Magnolia Boulevard and Third Street in downtown Burbank.

The company has proposed a project of 176 apartments for senior citizens and 18,000 square feet of retail space. The city had been negotiating with three developers since November.