Loading...
O-1293-10-94ORDINANCE NO. 1293-10-94 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, AMENDING ARTICLE II OF APPENDIX A OF THE ALLEN CODE OF ORDINANCES BY ESTABLISHING MAXIMUM RATES THAT TCI CABLEVISION OF NORTH TEXAS, INC., MAY CHARGE ITS ALLEN CABLE TELEVISION SUBSCRIBERS FOR THE BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT; ESTABLISHING A MAXIMUM HOURLY SERVICE CHARGE; ORDERING REFUNDS; AND PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. WHEREAS, the City of Allen, Texas (the "City") is the Grantor of a Franchise Ordinance executed on or about March 6, 1980, by and between the City of Allen and TCI Cablevision of North Texas, 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 may choose to make a rate ruling on the proposed rates submitted by TCI of the Metroplex, Inc. to be charged to subscribers of the basic service tier; and WHEREAS, the City has reviewed the proposed rates submitted by TCI and desires to make a rate ruling; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS, THAT: SECTION 1. FINDINGS (1) The City is the Grantor of a Franchise Ordinance executed on or about March 6, 1980, by and between the City of Allen and TCI Cablevision of North Texas, Inc. ("TCI"). (2) In accordance with applicable provisions of the Cable consumer Protection and Competition Act of 1992 (hereinafter the "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 24, 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 regulation, on or about February 3, 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 April 29, 1994, the City received TCI's FCC Form 393. (6) The City engaged the service of First Southwest Company, to provide assistance to the City for review of TCI's FCC Form 393. (7) Pursuant to FCC regulation, on May 19, 1994, the City, adopted Resolution 1251-5-94R and notified 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 May 9, 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 June 20, 1994, TCI responded to First Southwest Company and the City, providing a response to the City's request for additional information. (10) First Southwest Company issued a Summary of findings report dated July 14, 1994, identifying certain issues requiring TCI's response before a final report could be prepared. (11) On or about August 11, 1994, TCI responded to First Southwest Company and the City. (12) On or about September 5, 1994, a final report was prepared for the City by First Southwest Company, summarizing the findings of the review. (13) The City conducted a meeting open to the public on October 6, 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 recommendation from First Southwest Company, the City makes the below additional Findings: a. TCI did not properly calculate monthly equipment revenues as of September 30, 1992. b. TCI did not calculate the hourly service charge in a manner consistent with the activity performed for the year. C. 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) TCI's request for cable rate approval for the maximum permitted rate for basic service tier (exclusive of any franchise fee) of $11.82 ($0.591 maximum per channel rate) is denied. (2) TCI's request for cable rate approval for the maximum permitted charge for hourly service (exclusive of any franchise fee) of $22.80 is denied. Ordinance No. 1293-10-94 page 2 (3) The City concludes that the maximum permitted rate for the basic service tier (exclusive of any franchise fee) shall be $11.86 ($0.593 per channel). (4) The City concludes that the maximum permitted charge for hourly service shall be $22.32. (5) TCI's request for cable rate approval for the permitted equipment charges of : Remote - $0.16; Standard Converter - $.87; Addressable Converter - $2.07, is approved. (6) 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 Allen 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. 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 $11.86. (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 $22.32 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 - $0.16; Standard Converter $0.87; Addressable Converter - $2.07. (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 the new unbundled equipment charge(s), and any franchise fee assessed thereon, which have been overcharged since September 1, 1993, as a result of the difference between TCI'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 the 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. SECTION 4. From and after the effective date of this Ordinance, Article II of Appendix A of the Allen Code of Ordinances is amended as set forth above. SECTION 5. 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. Ordinance No. 1293-10-94 page 3 DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 6TH DAY OF OCTOBER , 1994. APPROVED: F Me Farmer, MAYOR APPROVED ASSO_EORM: ITY ATTORNEY ATTEST: dy Mo son, CMC, CITY SECRETARY Ordinance No. 1293-10-94 Page 4 AFFIDAVIT AND PROOF OF PUBLICATION THE STATE OF TEXAS COUNTY OF COLLIN BEFORE ME, the undersigned authority, on this day personally appeared DEBBIE TACKETT, who having been by me duly sworn, on oath deposes and says: That she is the General Manager of THE ALLEN AMERICAN, a newspaper published in COLLIN COUNTY, TEXAS, not less frequently than once a week, having a general circulation in said county, and having been published regularly and continously for more than twelve (12) months prior to publishing Ordinance #1293-10-94 of which the attached is a true and written copy, and which was published in THE ALLEN AMERICAN on October 12 & October 15, 1994 and which was issued on October 12, 1994 by City of Allen of COLLIN COUNTY, TEXAS A printed copy of said publication is attached hereto. SUBSCRIBErJ A WORN to before me this "?e$''•, V. day AD 19 >_ MY COMMISSION EXPIRES December 5. 1996 NOTARY PUBLIC in and for COLLIN COUNTY, TEXAS Publisher's fee $ 2 4 .7 6 CITY OF ALLEN PUBLIC NOTICE Notice is hereby given that the Allen City Council adopted the following ordinance at their regular meeting held on Thursday, October 6, 1994 (Title only): Ordinance No. 1293-10-94: An Ordinance of the City of Allen, Collin County, Texas, Amending Article II of Appendix A of the Allen Code of Ordinances by Establishing Maximum Rates that TCI Cablevision of North Texas, Inc., May Charge its Allen Cable Television Subscribers for the Basic Service Tier and Associated Equipment; Establishing a Maximum Hourly Charge: Ordering Refunds; and Providing a Severability Clause and an Effective Date A copy of this ordinance may be read or purchased in the office of the City Secret- ary, City of Allen, One Butler Circle, Texas 75002-2773. /s/ Judy Morrison City Secretary CITY OF ALLEN T PUBLIC NOTICE Notice is hereby given that the Allen City Council adopted the following ordinance at their regular meeting held on Thursday, October 6, 1994 (Title'only). Ordinance No. 1293-10-94: An Ordinance of the City of Allen, Collin County, Texas, Amending Article II of Appendix A of the Allen Code of Ordinances by Establishing Maximum Rates that TCI Cablevision of i North Texas, Inc, May Charge its Allen Cable Television Subscribers for the Basic Service Tier and Associated Equipment; Establishing a Maximum Hourly Charge's Ordering Refunds; and Providing a Severability Clause and an Effective Date A copy of this ordinance may be read or purchased in the office of the City Secret- ary, City of Allen, One Butler Circle, Texas 75002-2773. /s/ Judy Morrison City Secretary