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O-2240-12-03ORDINANCE NO. 2240-12-03 ' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ESTABLISHING MAXIMUM PERMITTED RATES THAT COMCAST CABLE SERVICES MAY CHARGE ITS ALLEN CABLE TELEVISION SUBSCRIBERS FOR PROGRAMMING COSTS, EQUIPMENT AND INSTALLATION; FOR ORDERING REFUNDS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Allen, 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 Comcast Cable Services ("Comcast"); and, WHEREAS, the City pursuant to the Cable Consumer Protection and Competition Act of 1992 (the "Cable Act") and the Hiles 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 within one year of receipt of proposed rates make a rate ruling on the proposed rates submitted by Comcast to be charged to subscribers of the basic service tier; and, WHEREAS, the City has reviewed the proposed rates submitted by Comcast and desires to make a rate rating. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, THAT: SECTION 1. "FINDINGS: The City of Allen, Texas, finds as follows: L The City is the Grantor of a Franchise Ordinance executed on or about July 20, 1995, by and between the City and AT&T Comcast. 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 March 1, 2003, the City received Comcast's FCC Form 1205 and Form 1240. 4. The City engaged the services of C2 Consulting Services, Inc., to provide assistance to the City for review of Comcast's FCC Form 1205 to determine reasonableness of the proposed equipment and installation rates, and Form 1240 to determine reasonableness of the proposed basic service tier rates. 5. Based upon information received from Comast, and the calculations and recommendations from C2 Consulting Services, Inc., the City concludes that the rate ' Comcast requested of $12.75 is denied and that the rate of $12.73 is a reasonable maximum permitted rate for the Form 1240. 6. Based upon information received from Comcast, and the calculations and recommendation from C2 Consulting Services, Inc., the City concludes that the rates ' proposed by Comcast in its Form 1205 filing we not reasonable, and are therefore denied. 7. Based upon information received from Comcast and the calculations and recommendations from C2 Consulting Services, Inc., the City concludes the rates approved in Ordinance No. 2059-6-02 will remain the same and are found reasonable for equipment and installation rates charged by Comcast. The City must act upon the pending rate request consistent with current FCC rate rules and regulations." SECTION 2. "CONCLUSIONS: The City of Allen, Texas, concludes as follows: Pro2rammine Rates. The City concludes that the maximum permitted rate for the Form 1240 current basic service tier is $12.73. 2. Installatiou and Emutmment Rates (Form 1205). The City concludes that the rates filed by Comcast in its Form 1205 are not reasonable and that the permitted rate for hourly service charges and other installation and equipment rates shall be as outlined in Exhibit "A" attached hereto and incorporated herein for all purposes. 3. The City has an obligation to act timely upon the pending rate application consistent with 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 its subscribers to reconsider the pending analysis consistent with such changes the FCC may make in its regulations." SECTION 3. "ORDER FOR ACTION: Based upon the foregoing findings and conclusions, the City hereby orders the following: Pursuant to current FCC regulations, from the date of this order and until further order of the City, Comcast 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 $13.92. This basic programming rate is comprised of a maximum permitted rate for the basic service tier (Form 1240) of $12.73, with a maximum permitted rate for system upgrade (Form 1235) of $1.19. 2. Comcast is hereby permitted to charge (exclusive of any franchise fee) an hourly service charge of not more than the amount set forth in Exhibit "A," and Comcast shall be permitted to charge for installation services and leased customer equipment in the amounts set forth in Exhibit "A," attached to this Ordinance and incorporated as if fully set forth herein, effective upon passage, hereof. 3. Comcast is hereby ordered to implement the rate of $0 for the digital additional outlet effective upon passage, hereof. ' 4. That Comcast implement the maximum permitted basic service tier rate and equipment and installation rates effective upon passage, hereof. Ordinance No. 2240-12-03, Page 2 1 Comcast shall provide the City evidence the order for actions "1" through "3" above have been complied with and that all refunds have been properly made in accordance with the Cable Act and applicable FCC regulations. This Ordinance shall not be reconsidered should any further analysis pursuant to future FCC rules and regulations result in high rates to subscribers, unless such future FCC regulations mandates that the City order such an upward adjustment. The City requests that Comcast continue to provide additional information when filing its FCC Foran 1205 that demonstrates Comcast's quality control in the data collected in its aggregation of costs." SECTION 4. In adopting this Ordinance, the City Council of the City of Allen, 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, Texas, is not waiving any rights to which it is entitled. SECTION 5. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this Ordinance, or of the Code of Ordinances, as amended hereby, be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said Ordinance or the Code of Ordinances, as amended hereby, which shall remain in full force and effect. SECTION 6. All provisions of the Code of Ordinances of the City of Allen, Texas, in conflict with the provisions of this Ordinance be, and the same are hereby, repealed, and all other provisions not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 7. An offense committed before the effective date of this Ordinance is governed by prior law and the provision of the Code of Ordinances of the City of Allen, Texas, as amended, in effect when the offense was committed and former law is continued in effect for this purpose. SECTION 8. This Ordinance shall take effect immediately from and after its passage, as the law and charter in such case provide; 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 9'" DAY OF DECEMBER, 2003. APPROVED AS TO FORM: Pe er G. Smith, CITY ATTORNEY APPROVED: t�p Ien0 Stephen Terrell, MAYOR ATTEST: Sh-elley B. George, C, CITY SEMTARY Ordinance No. 2240-12-03, Page 3 EXHIBIT "A" ' 1. The following rates are found reasonable: SERVICE RATES Hourly Service Charge $28.49 Install — Unwired Home $43.99 Install — Prewired Home $27.99 Install — additional outlet — connect initial $13.99 Install — additional outlet- connect separate $21.99 Other Install - relocate outlet $18.99 Other Install —upgrade non -addressable $15.99 Other Install- downgrade non -addressable $10.99 Other Install — u de/down a addressable $1.99 Connect VCR—connect initial $5.99 Connect VCR - connect separate $12.99 Customer Trouble Calls $ 16.99 Remote control all units $0.30 Converter Box Basic Service Only) $2.00 Converter Box (all others including High Definition TV (HDTV) Capabilities) $4.80 ' 2. The following rate is found unreasonable: Digital additional outlet: $5.95 Ordinance No. 2240-12-03, Page 4