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HomeMy WebLinkAboutOrdinances (O-94-961)-09/20/1994 ORDINANCE NO. 0-94-961 AN ORDINANCE OF THE CITY OF COLLEYVILLE, TEXAS TO PASS RULING ON THE REASONABLENESS OF CABLE RATES FOR THE BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT. WHEREAS, the City of Colleyville, Texas franchises cable television service for the benefit of its citizens; and WHEREAS, the City of Colleyville, Texas wishes to obtain the most competitive rates for the City's cable rate payers; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS THAT: Section 1. FINDINGS (1) The City is the Grantor of a franchise ordinance executed on or about November 20, 1979 by and between the City of Colleyville and TCI TKR of the Metroplex, Inc. ("TCI"). (2) In accordance with applicable provisions of the Cable Consumer Protection and Competition Act of 1992 ("Cable Act") and rules adopted by the Federal Communications Commission ("FCC"), the City has undertaken all appropriate procedural steps to regulate the basic cable service tier and related equipment. (3) In accordance with applicable FCC regulations, on or about September 7, 1993, the City filed FCC Form 328 - Certification of Franchising Authority to Regulate Basic Cable Service Rates and Initial Finding of Lack of Effective Competition - with the FCC. (4) In accordance with applicable FCC regulations, on or about April 19, 1994, the City passed and adopted an Ordinance providing for the regulation of rates charged by cable television operators within the City for the basic service tier and related equipment and installation charges and providing for a reasonable opportunity for interested parties to express views concerning basic cable regulation. (5) On or about June 1, 1994, the City received TCl's FCC Form 393. (6) The City engaged the service of First Southwest Company, to provide assistance to the City for review of TCl's FCC Form 393. I I ___~l (7) Pursuant to FCC regulations, on or about July 12, 1994, , the City sent a letter notifying TCI that the time period for the City's review of FCC Form 393 would be extended for an additional ninety (90) day period. (8) The City, with the assistance of First Southwest Company on or about June 6, 1994, sent a letter requesting additional information to document that the cable rates were in accord with the FCC standards. The City's time period for review of FCC Form 393 was suspended pending the receipt of this additional information, pursuant to FCC rules and regulations. (9) On or about July 7, 1994, TCI responded to First Southwest Company and the City. (10) First Southwest Company issued a Summary of Findings report dated July 20, 1994, identifying certain issues requiring TCl's response before a final report could be prepared. (11) On or about August 3, 1994, TCI responded to First Southwest Company and the City. TCl's response included a modified filing of FCC Form 393. (12) On or about August 5, 1994, a final report was prepared for the City by First Southwest Company, which report is attached hereto and made a part of this Ordinance as Exhibit A. (13) The City conducted meetings open to the public on August 16, September 6, and September 20, 1994, to ensure that all interested parties had ample opportunity to present information to the City. (14) Based upon the information received from TCI, information received at the public meetings of the City, and all reports and recommendations from First Southwest Company, the City makes the below Additional Findings: a. TCI did not calculate the hourly service charge in a manner consistent with the activity performed for the year. b. TCI did not provide adequate supporting documentation for the average hours per installation used in computing installation charges. (15) The City must act upon the Pending rate request consistent with current FCC rate rules and regulations. SECTION 2. CONCLUSIONS (1) TCl's request for cable rate approval for the maximum permitted rate for basic service tier (exclusive of any franchise fee) of $11.26 ($0.536 maximum per channel rate) is approved. (2) TCl's request for cable rate approval for the maximum permitted charge for hourly service (exclusive of any franchise fee) of $24.30 is denied. (3) The City concludes that the maximum permitted hourly service charge shall be $23.89. (4) TCl's request for cable rate approval for the permitted equipment charges of: Remote - $0.24; Standard Converter - $1.54; Addressable Converter - $3.21, is approved. (5) The City has an obligation to timely act upon the pending rate application consistent with now current FCC rules and regulations. However, if the FCC alters the benchmark calculations resulting in a lower reasonable rate for Colleyville subscribers, the City has an obligation to area subscribers to reconsider the pending analysis consistent with such changes the FCC may make in its regulations. (6) The City hereby adopts and makes a part of this Ordinance all attachments referenced above. SECTION 3. ORDERS FOR ACTION Based on the foregoing findings and conclusions, the City hereby enters the following orders: (1) Pursuant to current FCC regulations, from the date of the order and until further order of the City, TCI shall be permitted to charge an initial rate for the basic service tier of $11.26. (2) Pursuant to current FCC regulations, from the date of the order and until further order of the City, TCI shall be permitted to charge $23.89 as its hourly service charge. (3) Pursuant to current FCC regulations, from the date of the order and until further order of the City, the permitted charges for leased customer equipment shall be as follows: Remote $0.24; Standard Converter - $1.54; Addressable Converter - $3.21. (4) TCI shall immediately undertake all necessary steps, in accordance with applicable FCC regulations, to provide refunds to all subscribers based on the difference between the old bundled rates and the sum of the new unbundled program service charge(s), and any franchise fee assessed thereon, which have been overcharged since September 1, 1993 as a result of the difference between TCl's current equipment and installation charges and the permitted equipment and installation charges. The refund liability includes interest computed at applicable rates published by the Internal Revenue Service for tax refunds and additional tax payments. (5) TCI shall provide the City evidence that Orders 1, 2, 3, and 4 have been complied with and that all refunds have been properly made in accordance with the Cable Act and applicable FCC regulations. (6) This Ordinance shall not be reconsidered should any further analysis pursuant to future FCC rules and regulations result in higher rates to subscribers, unless such future FCC rules and regulations mandate that the City order such an upward adjustment. I SECTION 4. EFFECTIVE DATE This Ordinance shall become effective immediately upon passage and publication as required by Law. AND IT IS SO ORDERED The first reading and public hearing being held on the I (P #. day of AUjUS + , 1994 . The second reading and public hearing being held on the &, +i day of ~, 1994 The third reading and public hearing being held on the ;{O+!. day of Sepfu.J,u-' I 1994 Passed and adopted this ~O if. day of S~IIUH btr , 19 9f . ~ J an Harris, CMC City Secretary ~. :VED ~O F7RM AND LEGALITY: (~( ~ Ross T. Foster City Attorney