HomeMy WebLinkAboutOrdinance No. 99-44 ORDINANCE NO. a 9-4 4
AN ORDINANCE ESTABLISHING THE MAXIMUM PERMITTED PER
SUBSCRIBER PER MONTH BASIC CABLE SERVICE RATE ALLOWED TO
BE CHARGED BY TEXAS CABLE PARTNERS, L.P., WITHIN THE CITY;
ALLOWING "MARK-UP" COSTS SUBJECT TO REFLJND; 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 INCONSISTENT OR IN
CONFLICT HEREWITH; AND PROVIDING FOR SEVERABILITY.
* * * * * * * * * *
WHEREAS,the City of Friendswood,Texas(the"Cit}�"), 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 March 1, 1999, Texas Cable Partners, 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 for the basic service tier; and
WHEREAS, C2 has now completed its review of TCP's original 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, C2 subsequently issued an addendum to the initial report, with a revised
recommendation premised on the City's settlement of prior outstanding rate issues, which is
attached hereto as E�iibit"B"and incorporated herein for a11 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, addendum, and recommendations of C2, and made certain
determinations; now,therefore,
Friendswood/'99-1240.Ord.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF
TEXAS:
Section 1. 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 and addendum 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 m�imum 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$10.58 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 and addendum from C2, attached hereto as Exhibits
"A"and"B,"respectively, and which are 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 maximum permitted rate established herein and the actual chazges to the
extent that actual charges have exceeded the maacimum permitted rate, plus interest on such
amounts calculated in accordance with FCC rules.
Section 4. That the City Council finds and determines that, based on the report and
addendum 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 a11 sums received by reason of charging subscribers such "mark-up" costs
for channels added subsequent to January 1, 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.
Section 5. That the City Council hereby finds and determines that the rate established
hereby is reasonable.
Section 6. 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 7. Pursuant to the authority 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
-2 -
Friendswood/'99-1240.Ord.
fined in an amount not to exceed $500.00. Each day of each vio�ation shall constitute a separate
offense.
Section 8. 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 9. 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 10. 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 1 s t day of Novembe r , 1999.
PASSED, APPROVED, and ADOPTED on second and final reading this 15 th day of
Novembe r , 1999.
CITY OF FRIENDSWOOD, TEXAS
Harold L. Whitaker
Mayor
ATTEST
�
. �
Deloris McKenzie, RMC
City Secretary P4otion: Councilman Mel P�easeles
2nd: Councilman Kitten Hajecate
Approved: Unanimously
- 3 -
Friendswood/'99-1240.Ord.
� � � � .�._ �.�
' EXHIBIT "A" �
. �
��
O�N�ULTING SERVICE�, INC. �
7801 Pencross (972) 726-7216
` Dallas. Texas 75248 (972) 726-0212(fax)
�.��213 4�S�6�
May 1 l, 1999 �'�� •� �l�
w MAY 1999 0
~ ��4C N
Ms. Eugenia Cano Ms. Cheryl Wilson � ���brvoBKrppp�
City Attorney Olson& Olson � �MANAQ� �
ti
City of Alvin 3485 Three Allen Center �'� ,��1,'°
216 West Sealy Street 333 Clay Street ?`�
Alvin, Texas 77511 Houston, Texas 77002 �
Mr. Ron Cox
City Manager
City of Friendswood
910 South Friendswood
Friendswood, Texas 77546-4845
Dear City Representatives:
C2 Consulting Services, Inc. ("C2") has completed its review of the FCC Form 1240 for
headend H1632A submitted to the Cities of Alvin and Friendswood, Texas (the "Cities")
by Texas Cable Partners, LP ("TCP" or the "Company") on or about March l, 1998. The
following report provides a brief discussion of the issues noted during the review, and
C2's recommendations regarding potential City Councii actions for TCP's proposed
basic service rates.
This study does not constitute an examination of the financial condition of TCP or its
parent company. Therefore, C2 cannot and does not express any position with regard to
the accuracy or validity of the financial information provided by TCP during the course
of the analyses.
OVERVIEW OF THE FILINGS
According to the information provided by TCP, the basic service tier includes twenty-two
channels, and the expanded basic service tier includes sixteen channels. TCP currently -
charges $1 I.81 for basic service and$13.13 for expanded basic service. TCP proposes to �
decrease the basic service rate by $1.23 to a proposed rate of $10.58. The rate year is �
June l, 1999 through May 3l, 2000.
City Representatives
May 11, 1999
Page 2
There are two major factors that explain TCP's proposed decline in the basic service rate: �
l. TCP's actual external costs for the true-up period were somewhat less than �
those included in the 1998 projected computations, and the projected external
costs have been further reduced.
2. TCP appropriately included the start rate that was adopted by the Cities in
1998 which results in a significant over-collection during the true-up period.
ANALYSES OF THE FILINGS
Project Objectives and Activities
The project objectives are three-fold:
l. Assessment of the completeness of the filings with regard to the information
and documentation that must be filed with the Cities. ,
2. Assessment of the reasonableness of the proposed computations in light of
Cities' prior rate decisions, FCC regulation and recent FCC rulings.
3. Assessment of the reasonableness of the proposed computations in light of the
system specific costs and subscriber data.
Given these objectives, C2 conducted the following project activities:
r Review of the filings to assess the completeness based on the FCC Form
instructions
• Review of the filings to identify any issues with respect to the data and/or
methodologies employed by TCP, particularly in light of the fact that TCP
assumed the system subsequent to the true-up period in this filing.
• Submission of follow-up data requests and subsequent review of TCP's
responses
• Review of 1999 FCC decisions that clearly have an impact on TCP's proposed
methodologies
• Development of potential alternatives available to the Ciries in establishing
maximum permitted basic service rates
City Representatives
- May 11, 1999
Page 3
� Summary of Findings
C2 identified two main issues with respect to TCP's proposed computations of basic
service rates. These issues are:�
1. TCP did not reflect the actual charges to subscribers for the period June 1,
1998 through November 30, 1998 in its true-up computarion.
2. TCP inappropriately requested additional "mark-up" costs for a channel added
to the basic service tier subsequent to January 1, 1998.
1. June 1, 1998 through November 30, 1998 Actuat Charges
Pursuant to the Form 1240 computations, annual filings provide for a true-up of rates
that have been charged during the preceding rate year based on actual external costs,
inflation, channel lineup and movement, and number of subscribers. In order to perform
this computation, the Form 1240 begins with the maximum permitted rate established by
the franchising authority during the preceding rate analyses and "trues-up" these
identifiable components of the rate.
The Cities ado ted maximum rmitted rates for the
P pe period beginning June 1, 1998 of
$11.81. However, TCI had filed a rate of$12.56 that was implemented on June 1, 1998.
This higher rate continued to be charged by TCI until the time of the transfer to TCP.
Based on correspondence sent to the Cities on or about September 30, 1998, TCI
committed to change the $12.56 basic service rate to the Cities' ordered $11.81 rate
beginning December 1, 1998. Within the filing, TCP has represented that this change
occuned as of June l, 1998, which is clearly incorrect. Reflecting the actual charges by
TCI through November reduces the basic service rate filed by TCP by approximately
$.37 per month per subscriber.
2. Proposed Mark-Up Costs
As originally established, the computation of the Form 1240 included adjustments to the
basic service rates for the adding or movement of channels to and/or from the tier. Based
on the total number of channels offered on the system (inclusive of all regulated
channels), an operator could add an additional "mark-up"to the rate for an increase in the
total number of channels offered on the basic service tier. In addition, an operator could
add/delete the residual costs of a channel when it was moved from/to the expanded basic
service tier.
Section 76.922(g) provided for these adj ustments and was implemented with the passage
of the Thirteenth Order on Reconsiderution in 1995. However, §76.922(g)(8) provided:
� A third issue identified was TCP's apparent inadvertent exclusion of all projected external costs with the
c��cptiun uf l�(;C lecs. C2 lius wrrcctcd lur tliis crrur, wliicli uctuully iucrcascs lltc ralc by appruximatcly
$.10 per subscriber per month.
City Representatives
May 11, 1999
Page 4
"Sunset Provision. Paragraph (g) of this section shall cease to be effective on
January l, 1998 unless renewed by the Commission."
In a ruling released March 26, 1999 (FCC 99-12), the FCC made reference to this
provision as follows:
"CATA proposes to revise this rule to clarify that the "Mark-Up Method" of
adjusting rates continues to be available to cable operators. We find that the
reinstatement of the "Mark-Up Method" of adjusting cable rates is an issue
involving rate regulatory matters and therefore is beyond the scope of this
streamlining proceeding."[paragraph 31]
However in the ordering clauses, paragraph 37, the FCC provided that §76.922(g) be
changed only to sunset specific provisions that did not include "mark-up" and residual
cost movement.
The inconsistencies were brought to the attention of the FCC and on April 27, 1999, the
Erratum was issued that deleted paragraph 37. Thus, §76.922(g), in its entirely, sunset
on January l, 1998.
Within the filing, TCP proposes an increase to the basic service rate for the "mark-up"
related to the adding of two channels. C2 recommends that these additional cost be
deleted as the channels were added subsequent to January 1, 1998.Z
SUMMARY OF RECOMMENDATIONS
Based on the above findings, C2 recommends the following adjustments be considered:
by the Cities in deternuning the maximum permitted monthly ba�ic service rates:
1. The actual monthly rate charged for the period June 1998 through November
1998 was $12.56 and should be reflected on Worksheet 8.
2. The proposed "mark-up" for the channels added subsequent to January 1998
should be disallowed.
3. The Cities should order a maximum permitted basic service rate of$10.2211
as compared to TCP's proposed $10.5787.
�l�asec!ou tlie suppo►tiug docuci►e�ilalioc�, ll�e(;u�iipu�y appdieully added a cliannel in Sepleiriber lyy�and
pians to add one in June 1999.
City Representatives
- May 11, 1999
Page 5
' C2 greatly appreciates having this opportunity to work with the Cities. If you have any
questions regarding this report, the project activities, or any of the recommendations,
, please contact Ms. Connie Cannady at(972) 726-7216.
Very truly yours,
C�. C��-� �-,,,,� �,�,� �C .
�
C2 Consulting Services, Inc.
Fedcral Communications Commission Approved by OMB 3060-0685
Waghingtoq DC 20554
8_Staha of Pravious F�7mg of FCC Fora 1210(enter an'i in tho appropriate boz}
YES NO
a.Hac an FCC Forni 1210 been previous(y filed with the FCC?
If yes,enter the date of the most recen[filing: (mm/dd/yy)
YES NO
b.Has an FCC Form 1210 been previo�aly f�7ed with the Francttiting Authority?
If yes,enter the date of the most recent f�7ing: (mm/dd)yy)
9.Stat�of FCC Forr 1200 F�ling(enter an"z"in the appropriate bo:)
YES NO
a Has an FCC Form 1200 been previo�uly fded with the FCC?
[f yes,enter the date fded: (mm/dd(yy)
YES NO
b.Has an FCC Form 1200 been previously f�led with the Franchismg Autfiarity?
ff yec,enter the date f�led (mmlddJyy)
10.Cablc Programsing Setvicrs Coaplaint Status(enter an"z"m th�appropriate boz}
YES NO
a(s this foim being filed in respa�se to an FCC Form 329 complamt?
[f ycc,enter the date of ihe complaint (mmldd/yy)
YES NO
11_[s FCC Form 1205 Being Included With This Filing
12.Sel�ction of'Gomg Forward'Chamel Addition Methodology (cnter an"z'in thc appropriate bos)
�Check here if you are using the original niles [MARKUP METHOD].
�Check here if you are using the new,altemative niles[CAPS METHOD].
If using the CAPS METHOD,have you elected to revice recovery for yE5 NO
channels addeci d��the period�Ivlay 15,1994 to Dec.31,1994?
13.Hcadcnd Upgradc Mcthodology
`NOTE•Oprralars mus/ceiti/y!olbe Commissioalbe�eligibi/i!y/o use l6is apBiade mel6odo/agyaad a!/ac6 aa eqwpmenlG's/aaddeqrciatioo ubedu/e.
�Check here if you are a qualifying small system�ing the streamlined headend upgrade methodology.
Part I: Preliminary Information
Module A: Maximum Permitted Rate From Previous Filing
, a b c d e
Liue Line Deuri tion Basic Tier 2 Tier 3 Tier 4 Tier 5
Al Currem Maximum Pertuit(ed Ra�e Sll.8058
Module B: Subscribershi
a b c d �
Line Line Dezcri 4on Basic "I'ier 2 Tier 3 Tier 4 'Cier 5
B l Average Subscribership For Tc�e-Up Period 1 9,7g1
B2 Average Subscnbership For True-Up Petiod 2
B3 Estimaled Average Subscribership For R-ojecled Period 9,795
Madule C: Inflation Information
Line Line Deuri (ioa
CI Uoclaimed In(lalios Operator Sw�tchiag From 1210 To 1240 1�
C2 Undaimed In[lation:Unregulated Ope`alor Respondiug to Rate Complaint t�O
C3 [nlla�ion Fac�or For Tcue-Up Period 1(Wks 1 J 1.0103
C4 In(]ation Factor For True-Up Period 2(Wl:s 1]
CS Cim�em FCC tuflation Factor 1.0100
Modu(e D: Calculating the Base Rate
■ b c d e
Line Line Deuri Gon Basic Tier 2 Tier 3 Tiet 4 Tier 5
D l Cimeal Headend Upgrade Segment fp.pppp
D2 Cmrent Extemal Costs Segmen� Sp,bq�Z -
D3 Currem Caps Me�hod Segmevt Sp_pppp "
D4 Cucrent Markup Melhod Segment S0.0G00
�DS Cwrent Channel Movement and DeleGon Segment 513411
D6 CucreutT[ve-UpSegme¢t � 50.5585
FCC Form 1240 ""
F'"+Se Z Microsoft Ezcel 4.0 Version Iuly(996
Federal Commimimtioro Commi.uion APproved by OMB 30fip.(�ig5
Wa+hing[on,DC 20554
D7 Cu�m loflatioo Segment sp lqg�
D8 Base Ra�e[AI-Dt-D2-D3-D4-DS-D6-D7J S9_0003
: Parl II: True-Up Period
Modulc E:Timing Information
Line Liae Descri lion
EI • W6at Type o(True-Up Is Being Performed?(Answer"1'."2".or'3". Sec Instnulious(or a description of t6ese types.) 2
If'1',go to Moduk i. If'2',answu E2 and E3. I('3",antwv E2,E3.E4,and E5.
F2 Number ot Months in Ihe Trve-Up Period 1 12
,E3 Number o[Months betwcen�he eud of Tnie-Up Puiod 1 and Ihe end of the most recent Projec�ed Period 6
}E4 Number o(Moaths in True-Up Pertod 2 Fligibk(or Inlerest �
ES Number ot Moa�hs Tnce-Up Period 2 Ineligible(or Inlerest
Module F: Magimum Pcrmittcd Ratc For True-Up Period 1
a b c d �
�Liae Line Dexri lioo Basic "fier 2 Tier 3 'i'ier 4 Tier 5
;Fl Caps MeWod Segmem For Tn,e-Up Period 1(Wks 2]
!F2 Markup MeWod Segment For True-Up Period([Wks 3] fp,p�pp
;F3 Chan Mwwt Dekm Segmeut Eor True-Up Period 1[Wks'4/5] f13411
F4 Truc-Up Feriod 1 Rale Eligible Fa In(latiou[DS+F1+F2+F3] 510.4014
,FS Inflation Segment for True-Up Period 1[(F4`C3)-F4J $0.1067
Fb Headeod Upgrxk SegmeN For Tnte-Up P'eriod 1[Wks 6]
F/ ExWna1 Costs Segmem For Trve-Up Period 1(Wks 7] 50.6562
FS Tnx-[1p Segmen�For Trve-Up Puiod 1 sp.sgqq
P9 Marz Perm Ra4[or 7'nee-Up Period 1[F4+FS+F6+FI+FB] 511.7487
Modul�G: Masimum Pcrmittcd Rate For True-Up Pcriod 2
a b c d �
�W� Line Descri tioa Buie Tiec 2 Tier 3 Tier 4 Tier 5
Gl Caps MeWod Segment FaT`ue-Up Period 2(Wks 2]
G2 Markup MeWod Segment For Trve-Up Penod 2[Wks 3j
�G3 C6an Mvmnl Deleln Segment For Tnu-Up Period 2[Wks'MS]
G4 TU Period 2 Ra�e Eligible For lnlla�iou(DS+FS+GI+G2+G3]
GS Inflation Segment for True-Up Period 2[(G4•C4)-G4]
Gb Headend Upgrode Segmen�For True-Up Period 2[Wks 6]
G7 Ex�emal Costs Segmem For True-Up Period 2(Wks 7]
GS Trve-Up Segmem For True-Up Period 2 �
G9 Max Pecm Rate for True-Up Period 2(G4+GS+G6+G7+LSj
FCC Form 1240
Pag�3 Microsoft Excel4.0 Versioo �Wy jgqb
Fcdcral Communicatioru C.ommission Approved by OMB 3060-0G85
Washington,DC 20554 �
Module H:True-Up Adjustment Calculation
a b c d �
Line Line Descri lion Buic Tier 2 Tier 3 Tier 4 Tier S
Adjustmeet For TrurUp Period 1 �
HI Revenue From Period 1 51.434.285.84
H2 Revenue From Mau Permiued Rale for Period t S 1,378.970.685]
H3 Trve-UpPeriod 1 Adjuslmeal(H2-HlJ (555.315_1549) .
H4 Interesl on Period 1 Adju.stmenl ($6,397.9755)
Adjustmed For True-Up Period 2
HS Rcvcnue From Pcriod 2 Eligibk(or Inletest
H6 Revenue From Maz Perm Rate for Period 2 FJigible For Inleresl
H7 Period 2 Adjustment Eligible For[nlerest(H6-HS) _
H8 Intereri on Pe[iod 2 Adjurime¢t(See insltucGoos for tormula) �
H9 Revenue From Period 2 Iceligible for�Ialeresl
H10 Reveuue From Ma�c Perm Rale for Period 2 Ineligible for Inleces�
HI1 Period 2 Adju.slment lneligible For Inlerest[H10.H9j
Total Truc-Up Adjustmeat
H l2 Revious Remaining T`ve-Up Adjustment
H13 i'otalTme-Up Adjustment[H3+H4+H7+HS+H11+H12) ($61.713.1304)
H14 Amount of True-Up Claimed ForThis Projecled Period (561,713.1304)
HIS Remaining Tnu-Up Adjuriment[H13-H14] $p.pppp
Parl III: Projected Period
Module I: New Maximum Permitted Rate
a b c d e
Line Li�Descri �oa Buic Tiu 2 Tier 3 Tier 4 Tier 5
I I Caps Method Segmenl For Projec4ed Period[Wks 2)
I2 Markup Method Segment For Rojecled Period[Wks 3] $p.p6pp
I3 Chau Mvmat Dek1n Segment For Pcojected Period[Wks 4/5) S 13411
I4 Proj.Period Ra�e Eligibk For[nfla6on[D8+FS+GS+I1+I2+L3] 510.5081
[5 In(lation Segment for Projected Period[([4•CS}I4] 50.1051
[6 Headend Upgrade Segment For Projected Period(Wks 6J •
:17 Ex�emal CosLs Segment For Projecled Period(Wks 7] 50.133 �
I8 TrurUp Segmenl For PYojecfed Period �Sp-525)
;l9 Max Permiued Rale(or Projeded Period[I4+IS+I6+I7+[8] 5102211
�I10 Opea�or Sekcted Rate Fw Projecled Period 510.58
No�e-7bemarimumprimiaedi-e�e!"grarsdooa��aLeio�oxcnuo��oymluadGabi/ilyyoum�y6ave !lyouba�rpre.iour/y-6reoan�eisdby�6eCommissioo or�n�/ora/lydacbi.siagru/bon/y-/oma('emJunds,
y'ou are odie/ie✓ed olyorvoblBalioo/omafe sra6 reluods e�en J/be pie�mi//ed�a/e is6�berlbaolbe mo/es/edraie nr corvaama/ia/e.
Certification Statemcnt
WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT
(U.S.CODE TITLE 18,SECTION 1001►,AND/OR FORFEITURE(U.S.CODE,TITLE 47,SECTIOfY 503).
1 cert' tfiat the statemen�made in this form are true and crnrect to the best of m knowle e and belief and are made in ood faith
Signat�e Date
Name and Title of Peison Completing this Form:
Telephone number Fax Number
FCC Form I240
Page 4 Microsofl Ezcet 4.0 Version !u(y 199G
Fedetal Comm�aucatiot�s Comm'ssion ppproved By OMB 3060-0685
Wachington,DC 20554
: Worksheet 1 - True-Up Period Inflation
For instructions,see Appendix A of[nstructions For FCC Form 1240
[.ine Period FCC[ntlation Factor
101 Month 1 L43%
102 Month 2 1.14%
103 Monffi 3 l.l4%
104 Month 4 1.14%
105 Month 5 p.g2a�,
l06 Month 6 0.82%
I07 Month 7 0.82%
108 Month 8 �.ppa�o
109 Month 9 1.00%
110 Month l0 1.00%
i l l Month I 1 �.ppo�a
112 Monffi l2 1.00%
��3 Avaage Inflation Factor for Truo-Up
Period 1 1.0103
, I14 Month 13
I(5 Month 14
116 Mon[h l5
l l7 Month 16
118 Month 17
119 Month 18
l20 Month 19
12( Month 20
122 Month 21
l23 Month 22
l24 Manth 23
l25 Month 24
�26 Average Inflation Factor for True-Up
Period 2
FCC Form 1240 --
Page 1 Microsoh Escel 4.0 Version July 1996
Federal Communicatio�Commitsion Approved By OMB 3060-0685
Wachington,DC 20554
Worksheet 3 - Markup Method
True-Up Period, Basic Tier
For instructions,see Appendix A of Instructions For FCC Form 1240
TruFUp Period Projected Penod
Ques[ion L Indicate the period for which[his worksheet is bevtg used.(Put an"X"in the appropriate box.) g
Question 2.Indicate the[ier for which this worksheet is being used.(Put an"X"in the appropriate box.)
Basic Tier 2 Tier 3 Tier 4 Tier 5
X
Question 3.How long is[he fitst period,in months,lor which rates are being se[wi[h this worksheet? IZ
Question 4.How long is the second period,in months,for�vhich rates are being set with this worksheet? p
1 2 3 4 5 6 7
Line Period Saa of Prcvious Sat of Cmrent Average Per Channel Chmmcls Total C¢oulativc
Rega(ated Channels Rcga(ated Chamel Chamels Adj¢slaent Added Adjmtacnt Adjartment
301 Prcviois Morrth j0_06
302 Montft 1 21 21 38_0 �0.02 0 #0.00 j0.06
303 Month 2 21 21 38.0 =0_02 0 =0_00 j0.06
304 Month 3 21 21 38.0 j0_02 0 50.00 j0_06
305 Month 4 21 21 38.0 ;0_02 0 50.00 =0_06
306 Montfi 5 21 21 38_0 j0.02 0 j0.U0 j0_06
307 Month 6 21 21 38_0 =0_02 0 =0_00 50.06
308 Month 7 21 21 38_0 ;0_02 0 SO_00 t0.06
309 Month 8 21 21 38.0 =0_02 0 =0.00 50.06
310 Month 9 21 21 38_0 s0_02 0 50.00 SO_06
311 Month 10 21 22 38_0 SO_02 0 s0_00 f 0.06
312 Moirth 11 22 22 38.0 �0_02 0 =0.00 j0.06
313 Montfi 12 22 22 38.0 =0_02 0 =0.00 SO_06
314 Average Period 1 Martnp Mcthod Adjostaeat SO_0600
315 Month 13
316 Month 14
317 Montfi 15
318 Morttfi 16
319 Month 17 -
320 Month 18
321 Month 19
322 Montfi20
323 Month 21
324 Montfi 22
325 Montfi 23
326 Month 24
327 Avetage Period 2 Caps Mctfiod Adjustaent
ECC Eorm 1240 -
Page 1 Microsoh Fscol 4.0 Yeision July 1996
Fcderal Comm�micatio�Commission Approved By OMB 3060-0685
Washuigtnn,DC 20554
� Worksheet 3 - Markup Method
Projected Period, Basic Tier
'For instructions,sce Appendix A of Instructions For FCC Form 1240
Tnio-Up Period Projected Period
Question I.Indicate the period for which[his worksheet is being used.(Put an"X"in the appropriate box.) X
Question 2.Indicate the[ier for which this worksheet is being used.(Put an"X"in the appropriate box.)
Bacic Tier 2 Tier 3 Tier 4 Tier 5
X
Ques[ion 3.How long is the first period,'vi months,for which rates are being set with this worksheet? IZ
Question 4.How long is the second petiod,in months,for which rates are being set with this worksheeY? p
1 2 3 4 5 6 7
L"mc Period Sa�of Previoas Saa of Cmrent AvaaLe Per Channe( Channels Total Cuaolative
Regatated Channcls Regalated Chamel Channels Adjast�ent Added Adj�tacnt Adjast�ent
301 Previo�a MaUh =0.06
302 MoNh 1 22 22 SLO =0.01 0 =0.00 �0.06
303 MoNfi 2 22 22 51_0 =0_Ol 0 =0.00 j0.06
304 Mo�Mh 3 22 22 51_0 =0_Ol 0 =0.00 j0_06
305 Mordh 4 22 22 51.0 �0.01 0 =D_00 =0.06
306 Month 5 22 22 51_O t0_Ol 0 j0_00 j0_06
307 Month 6 22 22 51.0 s0_Ol 0 =0_00 =0_06
308 MoNh T 22 22 Sl_0 =0.01 0 :0.00 =0.06
309 Month 8 22 22 51_0 =0.01 0 =0.00 =0_06
310 Month 9 22 22 51.0 =0.01 0 50.00 =0.06
311 Montfi 10 22 22 51.0 =0_Ol 0 f 0.00 =0_06
312 Martfi 11 22 22 51_0 =0_Ol 0 =0_00 50.06
313 Mocrth 12 22 22 51_0 �0.01 0 =0.00 =0.06
314 Avetage Period 1 Marknp Method Adjastaert s0A600
FCC Foim 1240 -
Page 1 Microso@ Ezcd!.0 Vetsion July 1996
Federal Communicatim►s Commission Approvcd By OMB 3060-0685
Washmgton,DC 20554
Worksheet 5 - Channel Movement and Deletion
True-Up Period, Basic Tier
For instruclions,see Appendix A of Instructions For FCC Form 1240 `
Qucstion L Indica[e the penod for which this worl:shcet is being used.(Put an"X"in the appropriate box.)
I'rue-Up Penod Projected Period
�
Question 2.Indicate the tier for which this workshcet is being used.(Put an"X"in the appropriate box) .
Basic Tier 2 Tier 3 Tier 4 Tier 5
X
Qucstion 3.How long is the first period,in months,for which[ates are being set with tLis worksheet? 12
Question 4.How long is the seca�d period,in months,for which rates are being set with this worksheet? 0
1 2 3 4
Net PerCh�nc!Cost
Lme Period Rrsidua(of Chsnnels Dcleted R�sidna(of Channels Moved Cusulativo Net PerChannel
Fro�Ticr (addcd)to Ticr Adjactamt[Ciu�n 2-Cola=n Cost Adjast�ent
501 Pteviotu Period =1.3411
soz n�to�h i So.0000 So.0000 So.0000 =i�4u
503 MoNh2 50.0000 50.0000 s0_0000 ;13411
504 MoNh 3 50.0000 50.0000 j0_0000 =1.3411
505 Mtiidfi4 $0.0000 50.0000 r0.0000 Sl_3411
506 MonthS S0.0000 s0.0000 =0_0000 513411
so� nto�n6 So.0000 So.0000 �o_a000 =i_3.tii
508 Mocdh 7 $0.0000 $0.0000 =0_0000 =1_3411
so9 nrto�s So.0000 So.0000 so.0000 =i�+u
510 Mocdfi9 50.0000 $0.0000 ;0.0000 513411
511 Monthl0 $0.0009 50.0000 �0.0000 =13�11
512 MoNh 11 S0.0000 $0.0000 =0.0000 �1.3411
si3 nao�d,ia So.0000 to.a000 ro.onoo ti.s+ii
514 Avttage Paiod 1 Channe(Move=ent and Deletian Adj¢cfsrnt t1.3411
515 MoNh 13
516 Month 14
517 Month 15
518 Month 16 . '"
519 Month 17
520 Month 18
521 Month 19
522 Month 20
523 Monffi 21
524 Month 22
.525 Month 23
'S26 Month 24
527 Avcrage Pcriod 2 Chauncl Movcaent and Ddction Adj�Oarnt
FCC Form 1240 -
P88�1 Microaoh Fscd 4A Version July 1496
Federal Communicatim►c Commssion Approved By OMB 3060-0685
Wachington,DC 20554
- Worksheet 5 - Channel Movement and Detetion
Projected Period, Basic Tier
For mswctions,see Appendix A of Inswclions For FCC Form 1240
Question 1.Indicau the period for which this worksheet is bcing used.(Put an"X"in[he appropriate box.)
Tcue-Up Period Projected Period
X
Question 2.Indicate the tier for which this worksheet is being used.(Put an°X"in the appropriate box.)
Basic Tier 2 Tier 3 'fier d Tier 5
X
Question 3.How long is[he first period,in months,for which rates are being set with this worksheet? 12
Question 4.How laig is the sccond period,in months,for whic6 mtes are being set with this workshcet? p
1 Z 3 �
Net PerChannd CaaY
L"me Period R���of Chsnnels Deleted Residoal of Channds Moved Cota(ative Net PcrChanncl
Fro�Tier (added)to Tier Adjasfamt[Cola�n 2-Colaan Cost Adjastaent
501 Previrna Period =1.3411
i02 MoNh 1 S0.0000 S0.0000 =0_0000 =13411
iO3 Mmdh2 50.0000 50.0000 =0_0000 �1.3411
504 Mo�h3 50.0000 S0.0000 s0_0000 =1.3411 �
sos Mo�4 So.0000 So.0000 to_0000 Si��li
506 MmdfiS S0.0000 50.0000 s0_0000 =1.3�11
501 MaAh6 50.0000 50.0000 =0_0000 �1_3411
SOS Morth 7 $0.0000 50.0000 �0.0000 =1.3411
,� M�8 So.0000 So.0000 �o.0000 Sl�li
i10 MoNh 9 50.0000 50.0000 :0_0000 =1.3411
511 MoNfi 10 50.0000 SO_0000 =0.0000 s13411
s�z Moam il So.00ao So.a000 to_0000 fi�4ii
�13 MoNh12 50.0000 50.0000 =OA000 j13411
i14 Average Period 1 C6annet Moves�nt aad Deletion Adjmctaeat 51.3411
FCC Form 1240 --
Page 1 Microsoft Fscel 4.0 V«sion July 1996
Federal Communitalioas Commission Approved By OMB 3060��0685
Washinglo4 DC 20554
Worksheet 7-External Costs
True-Up Period
For inatn�ctiore,see Appcndix p of G�structiovs For FCC Eorm I240 �
Truc-Up Pcriod Rojected Period
Question 1.For wtuch timc period aro you fitling out lhis wori;shcet? (Pu[en"Y"in the.eppropnate box] �
Qucslion 2.How long is thc fitst period,in month�for which rates�e being set wilh Ihis workshee[? 12
Qu:stion 3.How long is lhe second perio�in months,for which rates mt being xt with this workvheet? p
a � e
Line line Dexri tion Bvsic Tler 7 TIer3 Ti<r J Tier 5
Period 1
Eaternal Costs Eligible for Marku
701 �t of Progamnung For Channels Added Prior to 5/i 5/94 or
Aflcr 5/IS/94 Uaing Mari_vp Method For Period 556,22829
702 R'lrm�m�sion Canent Fen Fa Period $p.pp
703 Copyright Fxa For Period 510,516.26
704 Extcnul Cost�E(igiblc For 7.5%Markup ,566,744.55
705 Mark,cd Up EMema(Coets 571,750.3913
Eaternal Coats Not E' 'ble for Markup
706 Cable Specific Taxes Fa Paiod $p.pp
707 Frmchix Related Cwts For Paiod gp_pp "
708 Commi.ssion Rcgulatory Fw For Period 55,268.49
709 Total Faaemal Costs For PeriQd�' 577,018.8813
710 Mon[tily,Per-Subxribcr F�Rernal CosGs For Period 1 $O.6S62
Period 2
Ezteroal Costs E' 'ble for Marku
711 �ofProgrammiug For Cham�e�Added pcior W 5/15/94 or
Afta 5/15/94 Ueing hfa�kup Method For Penod .
712 Re4�ammission Conseut Fxs For Pcriod �
713 Copyright F«s For Paiod
714 Extanal Costs EG�bk For 7.5%Mackup
715 Martced Up E�cmel Cosfs
Eztetnal Costs Not E' 'bk for Markup
�ic Gbk Specific'Caxcs F«Paiod
717 Fcanchise Related Costs For Period
�718 Commission Regulatory Fcea For Paiod
�:'719 Totrl E�Rernal(',osGs Fa Period
720 MontWy,Pcr-Subsaibcr F..xfernal Costs For Pcriod 2
FCC Form 1240
Page 1 Mitrosoft ExttI4.0 Versiou )��y�99(�
Fedual Commuuicatioos Commiuion Approved By OMB 3060.p6gS
Wuhiugtoa.DC 20554
, Worksheet 7- Externat Costs
- Projected Period
Fw ina4vctioos,xe Appcndix p o(Gstructioas For FCC Fortn I240
Truo-lip Period Projectod Paiod
Question 1.For which time period are you filling ouz ihis woricaf�ect? [Pw an"X"in thc appropriate box J X
Queetion 2 How long is the fmt paiod,m mooth.s,for which rata ffic bcing act with�his worice6eet?
12
Qucstion 3.How long is the aocond period ia months,for w6ich rotes arc being xt with this w«kshcet? 0
a � e
UM [�M Deacri 'on Basie Tier 2 Tier 3 Tier 1 Tier 5
Period 1
Ezternal Costs E' 'ble for Marku
,�� Co�of Pro�ming Fa Chmnela Addod prior to 5/15/94 or Sgg 1.51
ARer S/15/94 Using Markup Mettad For Period
702 Rano�ission Cooecnt Fxe For Puiod 50.00
703 Copyright Fxs Fa Paiod 59,644.54
704 E#ernel Caets Elig�ble Fa 7.5%Mukup 510�26.05
703 Ma�°d UP E��C� S11,315.5085
E:ternal Costs Not E' 'ble for Marku
706 Cabk Speci6c Ta�ms For Period yp.pp
707 Fraochix Relatod Costi For Paiod Sp.pp
708 Commiaeiou R�gdabry Fees For Paiod 54,314.54
709 Tdat E�Raml Coate For Pai S I5,630.0485
710 Maathly,PcrSubscribex F�ucroal Cost.s For Period 1 Sp,133p
FCC Form 1240 -
�°Z Microsofl Excel 4.0 Version July 1996
Fedetal Comm�aticatio�Commission Approved By OMB 3060-0685
Wachingtoq DC 20554
Worksheet 8 - True-Up Rate Charged
For inshuctions,sce Appendi�c A of[nstructions For FCC Form 1240
Question L How long is the True-Up Period l,in months? 12
Ques[ion 2.How loog is the True-Up Period 2,in months? Q
a b c e
Lme Lme Drscription Basic Ticr 2 Ticr 3 Ticr 4 Tier 5
801 Mo�h 1 $11.8800
S02 MoNfi 2 $11.8800
803 Mo[dh3 S1L8800
804 MoNh 4 $11_8800
805 Monfh 5 $11.8800
806 MoNh6 S11.8800
807 Month 7 $12.5600
808 MoMhB $125600
809 Monffi 9 512.5600
810 Moc�tli 10 $12.5600
811 MoNfi 11 S]2.5600
812 Mo�h 12 512.5600
813 Period 1 Average Rate ., $12Z200
814 Mond�13
815 Month 14
816 Month 15
817 Morrtfi 16
818 Month 17
819 Month 18
820 Mordh 19
821 Month 20
822 Morrtfi 21 •
823 Month 22 .
824 Mordh 23
825 Month 24
826 Petiod 2 Average Rate
FCC Focm 1240 -
Page 1 Micrasoft Ezc�l 4A Veision Iuly 1996