HomeMy WebLinkAboutOrdinance No. 99-43 � �w
ORDINANCE NO. 9 9-4 3
AN ORDINANCE ESTABLISHING THE MAXIMUM HOURLY SERVICE
CHARGE TO BE USED TO DEVELOP THE EQUIPMENT AND
INSTALLATION RATES OF TEXAS CABLE PARTNERS, L.P.;
ESTABLISHING THE MAXIMUM PERMITTED RATES FOR EQUIPMENT
AND INSTALLATION CHARGES; DISALLOWING THE PROPOSED FIELD
COLLECTION CHARGE; SETTING FORTH OTHER PROVISIONS RELATED
TO THE SUBJECT; PROVIDING A PENALTY OF AN AMOUNT NOT TO
EXCEED $500 PER DAY FOR EACH VIOLATION HEREOF; REPEALING
ALL ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT OR 1N
CONFLICT HEREWITH;AND PROVIDING FOR SEVEP�ABILITY.
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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 March 1, 1999, Texas Cable Partners, L.P. ("TCP") submitted to
the City an FCC Form 1205 with a proposed schedule of equipment and installation rates (hereafter
"Form 1205"); and
WHEREAS, on or about April 20, 1999, TCP submitted to the City a revised Form 1205;
and
WHEREAS,the FCC rules allow the City ninety(90) days to review the proposed schedule
of equipment and installation 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"),has reviewed TCP's
proposed schedule of equipment and installation rates and, based on its review of TCP's revised
Form 1205, C2 submitted its report explaining its analysis, findings, and conclusions, which is
attached hereto as E�ibit"A"and incorporated herein for all purposes; and
WHEREAS, a public hearing was held to hear public comments on the proposed schedule
of equipment and installation rates of TCP; and
WHEREAS,the City Council has now concluded its review of TCP's proposed schedule of
equipment and installation rates and made certain determinations; now,therefore,
Friendswood/'99-1205.Ord.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF
TEXAS:
Section 1. T'hat 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 schedule of
equipment and installation rates and the report submitted by C2, hereby finds and determines that
TCP's proposed equipment and installation rates, with the exception of the "field collection
charge,"are reasonable.
Section 3. That TCP is hereby ordered to reduce its Hourly Service Charge for
installation, maintenance and repair of equipment to an amount not to exceed $26.49 per hour,
commencing on the date of adoption of this Ordinance. This Hourly Service Charge rate was
derived by using FCC rules, regulations, and instructions for calculating the Hourly Service Charge
as further explained in the report from C2 attached hereto as E�chibit"A,"and which is incorporated
herein by reference. Based on this Hourly Service Charge, TCP is further ordered to reduce its
equipment and installation rates to an amount not to exceed the "Consultant Recommended
Ma�cimum Permitted Rates" set forth in "Atta.chment A" of the C2 report dated May 12, 1999,
attached hereto as Exhibit"A" (the "m�imum permitted rates"). TCP is hereby further ordered to
refund to subscribers, within forty-five (45) days of the adoption of this Ordinance, the difference
between the ma�cimum permitted rates established herein and the actual charges to the extent that
actual charges have exceeded such maximum permitted rates, plus interest on such amounts
calculated in accordance with FCC rules. Although the rates established hereby are the maximum
permitted rates, TCP is allowed and encouraged to implement the lower "TCP Amended Proposed
Operator Selected Rates" set forth in Attachment A of the C2 report attached hereto as E�ibit"A."
Section 4. That the City Council hereby finds and determines that, based on the report
from C2, TCP's proposed "field collection charge" is an unreasonable charge and hereby rejects
such "field collection charge." TCP is hereby ordered to refund to subscribers, within forty-five
(45) days of the adoption of this Ordinance, all amounts collected from subscribers as "field
collection charges,"plus interest on such amounts as calculated in accordance with FCC rules.
Section 5. That the City Council hereby finds and determines that the rates established
hereby are reasonable.
Section 6. That 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 Ordin�nce. Furthermore,the City Council is not waiving any rights to which it is
entitled.
Section 7. That 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
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Friendswood/'99-1205.Ord.
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 8. That 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. That 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 lst day of lvovember , 1999.
PASSED, APPROVED, and ADOPTED on second and final reading this 15 th day of
Nt�vam�ja r , 1999.
Harold L. Whitaker
Mayor
ATTEST
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Deloris McKenzie, RMC
City SeCretaly rROtion: Councilman Larrv Tavlor
2nd: Councilman Kim Brizendine
Approved: Unanimouslv
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Friendswood/'99-1205.Ord.