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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. * * * * * * � * * * * 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. �, �.. 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 - 2 - 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 � � . . Deloris McKenzie, RMC City SeCretaly rROtion: Councilman Larrv Tavlor 2nd: Councilman Kim Brizendine Approved: Unanimouslv - 3 - Friendswood/'99-1205.Ord.