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Home My WebLink AboutO-1681-1-99ORDINANCE NO. 1681-1-99 AN ORDINANCE OF TETE CITY OF ALLEN, COLLIN COUNTY, TEXAS AMENDING THE MAIM" RATES THAT TCI CABLEVISION OF TIRE METROPLEX, INC. MAY CHARGE ITS ALLEN CABLE TELEVISION SUBSCREBERS FOR PROGRAMMING COSTS, EQUIPMENT AND INSTALLATION; ORDERING REFUNDS; PROVIDING FOR A SEVERABHXFY CLAUSE; PROVIDING FOR A REPEALING CLAUSE; PROVIDING FOR A PENALTY OF FINE NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500) FOR EACH OFFENSE; AND PROVIDING FOR THIN EFFECTIVE DATE OF SAID ORDINANCE. WHEREAS, the City of Allen, Collin County, Texas, (the "City") is the Grantor of a Franchise Ordinance executed on or about July 20, 1995 by and between the City of Allen and TCI Cablevision of the Metroplex, Inc. ("TCI"); and WHEREAS, the City pursuant to the Cable Consumer Protection and Competition Act of 1992 (the "Cable Act") and the rules and regulations adopted thereunder by the Federal Communications Commission (the "FCC"), is certified to regulate the rates for the basic cable service tier and related equipment; and WHEREAS, as local regulator of rates for the basic service tier, the City on May 21, 1998, pursuant to ' Ordinance No. 1604-5-98, made a rate order (the "1998 Rate Order") and ordered maximum rates; and WHEREAS, pursuant to the agreement of TCI to withdraw its challenge to the City's 1998 Rate Order, and previous rate orders, the City desires to amend its previously ordered maximum rates for the basic service tier. NOW, THEREFORE, BE IT ORDAINED BY THIN CITY COUNCIL OF TETE CITY OF ALLEN, COLLIN COUNTY, TEXAS, THAT: SECTION 1. "FINDINGS: The City of Allen, Collin County, Texas finds as follows: "1. The City is the Grantor of a Franchise Ordinance executed on or about July 20, 1995, by and between the City and TCI. 2. In accordance with the applicable provisions of the Cable Consumer Protection and Competition Act of 1992 and the rules adopted by the FCC, the City has undertaken all appropriate procedural steps to regulate the basic cable service tier and related equipment. 3. On or about May 21, 1998 the City entered a rate order, the 1998 Rate Order, which established the maximum allowable basic service tier rate of $14.08. I4. On or about May 21, 1998 the City entered a rate order establishing maximum permitted rates for hourly service charges, installation services and leased customer equipment, as further set forth in Ordinance No. 1604-5-98. ' S. Pursuant to discussions between representatives of the City and TCI, the City and TCI have reached agreement regarding a determination of the rates. 6. All cable customers in the City who were charged by TCI for the use of a converter in 1998 are entitled to a refund. TCI has agreed to withdraw their appeals to the FCC of the 1997 and 1998 Rate Orders, and the City has agreed to withdraw its opposition to the same." SECTION 2. "CONCLUSIONS: The City of Allen, Collin County, Texas concludes as follows: Basic Programming Rates. The City concludes that the basic rate for the current system for the period of June 1, 1998 through May 31, 1999 should be $14.06. 2. Installation and Eauiument Rates. The City concludes that the rates for hourly service charges, installation services and leased customer equipment for the period of June 1, 1998 through May 31, 1999 shall be in the amounts set forth in Attachment "A", attached to this Ordinance and incorporated as if fully set forth herein. 3. Converter Customer Rebate. In accordance with the agreements reached regarding calculation of 1997 and 1998 rates, the City concludes that all customers in the City charged for converter use by TCI shall be entitled to a one -tine refund in ' an amount equal to $10,600 divided by the number of converter customers." SECTION 3. "ORDER FOR ACTION: Based upon the foregoing findings and conclusions, the City of Allen, Collin County, Texas hereby orders the following: 1. Pursuant to current FCC regulations, from January 1, 1999 and until further order of the City on 1999 rates or expiration of 90 days following submittal of 1999 rates by TCI, whichever occurs fust, TCI shall be permitted to charge a rate for the basic service tier, exclusive of any franchise fee but inclusive of the FCC regulatory fee, of not more than $ 14.06. 2. Pursuant to current FCC regulations, from January 1, 1999 and until further order of the City on 1999 rates or expiration of 90 days following submittal of 1999 rates by TCI, whichever occurs fust, TCI shall be permitted to impose the rates for hourly service charges, installation services and leased customer equipment of not more than the amounts set forth in Exhibit "A", attached to this Ordinance and incorporated as if fully set forth herein. 3. Not later than February 27, 1999, TCI shall deliver a refund to all of its customers charged for converter during the calendar year 1998, with each converter customer receiving a refund in an amount equal to $10,600 (Ten Thousand Six Hundred Dollars) divided by the number of converter customers. I4. The maximum rates ordered herein shall be utilized by TCI as their "base rates" for calculating the 1999 proposed rate filing, as authorized by the FCC. ORDINANCENO. 1681-1-99 Paget ' 5. TCI shall provide the City evidence the order for actions "1" "2" "3" and "4" above have been complied with and that all refunds have been properly made in accordance with the Cable Act and applicable FCC regulations. 6. Any findings, conclusions, or orders previously entered by the City in any rate order shall remain intact, unless amendment was specifically ordered herein." SECTION 4. In adopting this Ordinance, the City Council of the City of Allen, Collin County, Texas is not approving or acquiescing in any way whatsoever to the cost data and/or methodologies not specifically addressed in this Ordinance. Furthermore, the City Council of the City of Allen, Collin County, Texas is not waiving any rights to which it is entitled. SECTION 5. That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this ordinance are severable, and if any phrase, clause, sentence or section of this ordinance shall be declared unconstitutional or invalid by any judgment or decree of a court of competent jurisdiction, such unconstitutionality or invalidity shall not affect any other remaining phrase, clause, sentence, paragraph or section of this ordinance; and the City Council hereby declares it would have passed the remaining portions even though it had (mown the affected parts would be held unconstitutional. SECTION 6. That all ordinances of the City of Allen in conflict with the provisions of this ordinance shall be, and the same arehereby, repealed; provided, however, that all other provisions of said ordinances not in conflict herewith shall remain in full force and effect. ' SECTION 7. That any person, firm or corporation violating any of the provisions or terms of this ordinance shall be subject to the same penalty as provided for in Code of Ordinances of the City of Allen, as previously amended, and upon conviction shall be punished by a fine not to exceed the sum of Five Hundred Dollars ($500) for each offense. SECTIONS. That this ordinance shall take effect immediately from and after its passage and publication in accordance with the provisions of the Charter of the City of Allen, and it is accordingly so ordained. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 21 stDAY OF January , 1999, APPROVED: Stephen Terrell, MAYOR APPROVED AS TO FORM ATTEST: ' Peter G. Smith, CITY ATTORNEY Wy Mo n, CMC, CITY SECRETARY ORDINANCENO. 1681-1-99 Para H ATTACHMENT A 1998 EQUIPMENT AND INSTALLATION RATES Type of Service Maximum Permitted Rates Install -Unwired Home Aerial within 125 feet $40.55 Install -Prewired Home Aerial within 125 feet $21.95 Install -Additional Connect Initial $12.64 Install -Additional Connect Separate $20.15 Other Install -Relocate Outlet $19.44 Other Install -Upgrade (non -addressable) $13.95 Other Install -Downgrade non -addressable $8.52 Other Install -U rade/Down rade addressable $1.99 Connect VCR Initial $6.19 Connect VCR Separate $13.16 Hourly Service Charge $27.11 Remote Control (All s) $0.30 Converter Box Basic Service Only) $1.50 Converter Box (All Others) $3.25 ORDINANCENO. 1681-1-99 Page