Simi Seeks Deal on TV Regulation : Media: City Council decides not to employ federal rules now, hoping to reach its own agreement with Comcast.

Believing they can cut a better deal with the local cable television company, Simi Valley leaders have postponed taking advantage of a new federal law that gives them the power to regulate basic cable TV service in their city.

Instead, Simi Valley will first try to hammer out its own restrictions on rate hikes and service rules with Comcast Cablevision, City Council members decided.

The city staff had urged the council to ask the Federal Communications Commission for the power to impose federal rate limits on the cable company, as Oxnard, Moorpark, Camarillo and other nearby cities have done.

But at their meeting Monday night, several Simi Valley council members complained that the federal rules were too complex and cumbersome. They also argued that a better deal might be struck at the city level.

“I personally believe that local control is better than federal control,” Councilman Bill Davis said Tuesday. “What we’re trying to do is get an agreement between the city and Comcast that’s superior to the FCC solution.”

Earlier this month, Comcast asked for direct rate talks with the city, promising that new rules and prices could be tailored for Simi Valley.

Mayor Greg Stratton said the city may need to hire a consultant to help with the complex cable negotiations.

“My assumption is that Comcast wants something different from the existing FCC regulations,” he said. “If that’s true, we’re going to have to watch every one of their requests to make sure it’s in the best interest of our citizens--and not just in Comcast’s best interest.”

The mayor added: “I think we’re trying to do the best of all possible worlds. Sometimes, that isn’t possible.”

While agreeing to negotiate directly with Comcast, council members also moved to protect local subscribers by requiring that the cable company freeze its rates and programming while the talks are under way.

If an impasse occurs, council members said they will move to impose the federal cable rules.

Cities have had no authority to regulate cable television rates since 1984. But under a law enacted in October by Congress, cities can apply to the FCC for the right to regulate basic cable rates and customer service standards.

This power allows a city to limit the cost of basic service--generally about a dozen local television stations, plus public access and educational channels. Comcast, which has 27,000 Simi Valley customers, charges $10.95 per month for 13 channels considered basic service.

By applying the FCC pricing formula, cities could force some cable companies to roll back their rates.

The FCC itself will regulate rates for extended service--which on the Comcast system is another 21 channels including CNN and MTV. Pay channels such as HBO and Showtime will remain unregulated.

While the application period is under way, the FCC has frozen cable service rates.

But the freeze is slated to expire Nov. 15. If the city has not obtained the regulatory power from the FCC by that date, Comcast can raise rates and repackage its programming to evade future regulation, Simi Valley staff members said.

Concerned about missing this deadline, council members said Comcast must agree to freeze its rates and services indefinitely while local regulations are developed. If the company rejects this plan, council members said they will seek the FCC power prior to the Nov. 15 deadline.

If the talks reach a deadlock after Nov. 15, Comcast would have to leave the rate freeze in place while Simi Valley applies to the FCC for regulatory power, council members said.

Greg Mackney, general manager for Comcast’s Simi Valley system, said he must consult his corporate supervisors before agreeing to this plan. But he said Tuesday, “I’m very optimistic that something can be worked out.”

Mackney said a local pact could allow Comcast to continue offering senior citizen discounts, which are not provided under FCC rules. He also said a local agreement would make it easier for the company to negotiate rates that would allow it to upgrade equipment and offer more channels.