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HomeMy WebLinkAboutOrdinance No. 2000-20 ORDINANCE NO. Z000-20 AN ORDINANCE ESTABLISHING THE MAXIMUM PERMITTED PER SUBSCRIBER PER MONTH BASIC CABLE SERVICE RATE ALLOWED TO BE CHARGED BY TEXAS CABLE PART'NERS, L.P., WITHIN THE CITY; ALLOWING "MARK-UP" COSTS SUBJECT TO REFLTND; ORDERING AN ACCURATE ACCOUNTING OF REFUNDS AND INTEREST PAID ON OVERCHARGES; ORDERING REFUNDS AND INTEREST TO BE PAID; SETTING FORTH OTHER PROVISIONS RELATED TO THE SUBJECT; PROVIDING A PENALTY OF $500 PER DAY PER VIOLATION HEREOF; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES 1NCONSISTENT OR 1N CONFLICT HEREVVITH; AND PROVIDING FOR SEVERABii�,IZ'Y. * * * * * * * * * * WHEREAS,the City of Friendswood,Texas(the"City"), is certified to regulate basic cable service rates pursuant to the 1992 Cable Act (the "Act") and Federal Communication Commission ("FCC")rules; and WHEREAS, on or about February 29, 2000, Texas Cable Pariners, L.P. ("TCP"), submitted to the City an FCC Form 1240 with a schedule of rates for the basic service tier and expanded basic service tier(hereinafter"Form 1240"); and WHEREAS, the FCC rules allow the City ninety(90) days to review the proposed schedule of rates after which time the operator may implement such rates, subject to a prospective rate reduction and refund if the City subsequently issues a written decision disapproving any portion of such rates; and WHEREAS, at the City's request, C2 Consulting Services, Inc. ("C2"), reviewed TCP's proposed schedule of rates f�r the basic service tier; and WHEREAS, C2 has now completed its review of TCP's proposed schedule of basic service tier rates and submitted its report explaining its analysis, findings, and conclusions, which report is attached hereto as Exhibit"A"and is incorporated herein for all purposes; and WHEREAS, a public hearing was held to hear public comments on the proposed schedule of basic service tier rates of TCP; and � WHEREAS, the City Council has now concluded its review of TCP's proposed schedule of basic service tier rates and the report and recommendations of C2, and made certain determinations; now,therefore, Friendswood/'00-1240.Ord. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS: Section l. That the City Council hereby adopts and affirms the findings and recitals set forth in the preamble to this Ordinance. Section 2. That the City Council, having reviewed TCP's proposed basic service tier rate and the report submitted by C2, hereby finds and determines that TCP's proposed rate for the basic service tier,with the exception of"mark-up"costs, is reasonable. Section 3. That the maximum permitted rate allowed to be charged by TCP within the City per subscriber per month for basic cable service is an amount not to exceed$10.52 on and after the effective date of this Ordinance. This rate was derived by using FCC rules, regulations, and instructions as further explained in the report from C2, attached hereto as Exhibit"A"and which is incorporated herein by reference. TCP is hereby ordered to refund to subscribers, within forty- five (45) days of the adoption of this Ordinance, the difference between the maacimum permitted rate established herein and the actual charges to the extent that actual charges have exceeded the maximum permitted rate, plus interest on such amounts calculated in accordance with FCC rules and regulations. Section 4. That the City Council finds and determines that, based on the report from C2, TCP's proposed "mark-up" for the channels added subsequent to January 1, 1998, is unreasonable and is hereby rejected; however, TCP may include "mark-up" costs in the rate charged per subscriber per month for basic cable service until such time as the FCC determines that such"mark-up" costs are not allowed under FCC rules and regulations. TCP is ordered to keep an accurate account of all sums received by reason of charging subscribers such "mark-up" costs for channels added subsequent to January l, 1998, and, in the event the FCC determines that such "mark-up" costs are not allowed, TCP shall reduce the rate charged per subscriber in an amount equal to the amount charged for "mark-up" costs and shall refund to subscribers, within forty-five (45) days of the FCC's determination of the issue, all amounts paid by subscribers for such"mark- up"costs,plus interest on such amounts calculated in accordance with FCC rules and regulations. Section 5. TCP is hereby further ordered to provide an accurate accounting of the actual refunds made to subscribers for the rate charged during the period June 1, 1999, through November 30, 1999, which exceeded the maximum permitted rate ordered by the City, within forty-five (45) days of the adoption of this Ordinance. Such accounting shall identify the number of subscribers overcharged, the number of subscribers issued a refund, the amount of the refund issued to each subscriber, and the amount of interest included in each refund, if any. If interest was not included in the refunds made to subscribers, TCP shall identify the amount of interest due each subscriber. To the extent that all overcharged subscribers were not issued a refund or interest on the overcharged amount was not included in such refunds, TCP is ordered to make such refunds to subscribers and to pay such interest on amo��a?:� overcharged within forty-five (45) days of the adoption of this Ordinance. Interest shall be calculated in accordance with FCC rules and regulations. - 2 - Friendswood/'00-1240.Ord. Section 6. That the City Council hereby finds and determines that the rate established hereby is reasonable. Section 7. In adopting this Ordinance the City Council of the City is not approving or acquiescing in any way whatsoever to cost data and/or methodologies not specifically addressed in this Ordinance. Furthermore,the City Council is not waiving any rights to which it is entitled. Section 8. Pursuant to the authoritv granted to the City under Title 47 C.F.R. § 76.943(a) and Tex. Loc. Gov't Code § 54.001, should TCP fail to comply with any provision of this Ordinance, it shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined in an amount not to exceed $500.00. Each day of each violation shall constitute a separate offense. Section 9. All ordinances in force when this Ordinance becomes effective and which are inconsistent or in conflict with this Ordinance are hereby repealed insofar as such ordinances are inconsistent or in conflict with this Ordinance. Section 10. The City Council of the City of Friendswood, Texas, does hereby declare that if any section, subsection, paragraph, sentence, clause, phrase, word or portion of this Ordinance is declared invalid or unconstitutional by a court of competent jurisdiction then, in such event, it would have passed and ordained any and all remaining portions of this Ordinance without the inclusion of that portion or portions which may be so found to be unconstitutional or invalid, and declares that its intent is to make no portion of this Ordinance dependent upon the validity of any other portion thereof, and all said remaining portions shall continue in full force and effect. Section 11. That the City Secretary is hereby authorized and directed to mail a copy of this Ordinance by first class mail to TCP. PASSED AND APPROVED on first reading this �_hday of July , 2000. PASSED, APPROVED, and ADOPTED on second and final reading this 2 4 thday of July , 2000. CITY OF FRIENDSWOOD, TEXAS Harold L. Whitaker, Mayor ATTEST , � MOTION: COUNCILP�?E��BFR LPRRY TAYLOR D loris McKenzie, TR C 2ND: COUNCILMEMB�R KITTFN BRI7TNDIT? City Secretary APPRQVED: Unanimously - 3 - Friendswood/'00-1240.Ord.