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i , 239 i � , � � Mr Fales stated for the record that if the Service is dis- continued, it would be a ma�or question as to whether Redwood City would finance its total cost, and that at such a time, a survey area would be importa�t - i' It was pointed out that the Park and Recreation Commission has j made a conam tment that they will seek Council approval for fund- ` � ing the program in the event federal grants are discontinued, but — ' � that the Council is not coimm tted to do so p The resolution was adopted unanimously by roll call vote. � 4, • Audit of franchise fee and stud for rate increase - Peninsula Cable Television Inc. City Manager Fales referred to h�s report of December 31, 1975 attaching detailed report from the City Controller dated November 20 and a memorandum dated November 24, both regarding the sub�ect item. Mr Fales advised that he concurs with the recommendation of the Controller that the requested rate in- crease be denied and also that in the future such request for rate increases from franchise holders coming in simple letter form without supporting information be summarily denied Discussion followed and Mr fales, City Attorney Schricker and City Controller Ference replied to questions and commented con- cerning the expenditure of taxpayer money to obtatn financial information which should have been supplied with the request , for rate increase, the cost to the City of examining the in- formation; the lack of staff time to make the study, and the possibtlity of recovery of costs to the City from the holder of the franchise. — J City Attorney Schricker advised that recovery of expenses is possible. ' MOTION Councilman Barrett moved, seconded by Councilman Rhodes, # to deny the rate increase request of Peninsula Cable Television, Inc Greg Cowan, 475 Fourth Street, Montara, local manager of Peninsula Cable Television, suggested that there is a Federal Communications Commtssion (FCC) requirement regarding public hearing on rate in- creases and that such a hearing would have to be conducted by Council Mr Cowan reported that his company is operating at a loss and has had no increase since 1973 Mr Cowan stated his company has no ob,7ection to providing any financial information required and acknowledged that perhaps more than a simple letter should have been sent with the request for an increase It was pointed out that the motion is to deny the requested rate increase and therefore, since no rate increase is contemplated, ' possibly the suggested FCC requirement may not apply. City Attorney Schricker advised that the burden of ,7ustification for a rate increase is on the holder of the franchise and that he — would like to review the FCC regulations before corronenting further on the remarks of Mr Cowan -8- Reg Mtg 1/5/76 , � �