HomeMy WebLinkAboutOrdinance No. 97-10 ORDINANCE NO. 9 7-10
AN ORDINANCE REJECTING THE SCHEDULE OF RATES FOR BASIC
SERVICE TIER CABLE PROPOSED BY TCI CENTRAL, INC., DB/A TCI
CABLEVISION OF HOUSTON, INC.; ESTABLISHING THE rZA,XIMUM
PERNIITTED PER SUBSCRIBER PER MONTH BASIC CABLE SERVICE
RATES OF TCI CENTRAL, INC., DB/A TCI CABLEVISION OF HOUSTON,
INC.;AND SETTING FORTH OTT-�R PROVISIONS RELATED TI�RETO.
* * * * * * * * * *
WI�REAS, 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, 1997, TCI Central, Inc., d/b/a TCI Cablevision of Houston
("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
VVHEREAS, 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 unless the City has rejected the proposed
rates as unreasonable;and
WHEREAS, at the City's request, C2 Consulting Services, Inc., reviewed TCPs proposed
schedule of rates for the basic service tier; and
WHEREAS, C2 Consulting Services, Inc., deteimined that TCI's original filing of the Form
1240 was facially incomplete and notified TCI of same within foriy-five (45) days of the original filing
thereby tolling the City's dea.dline for issuing a decision and the date on which the proposed rates may
go into e�ect; and
WHEREAS, TCI submitted additional documentation to complete the filing on Mazch 19,
1997,thereby establishing a facially complete filing on that date; and
VVF�REAS, TCI submitted an amended Form 1240 on March 27, 1997, and a second
amended Form 1240 on April 10, 1997; and
WI�REAS, C2 Consulting Services, Inc., has now completed its review of TCI's original
proposed schedule of basic service tier rates and its first and second amended proposed schedule of
basic service tier rates and submitted its report explaining its analysis, findings, and conclusions, said
report is attached hereto as E�ibit"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 TCI; and
Friendswood�'97-1240b.Ord
, . . ,.--, ,.,,, . .
WHEREAS, the City Council has now concluded its review of TCI's proposed schedule of
basic service tier rates and the report and recommendations of C2 Consulting Services, Inc., and made
certain determinations;NOW TF-�REFORE,
BE IT ORDAINED BY TI� CITY COUNCIL OF TT� 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 $10.14 shall remain the maximum authorized rate per subscriber per
month for basic cable service pernutted to be charged by TCI within the City until the service provided
by TCI is brought into compliance with its franchise agreement.
Section 3. 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 4. 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 thereo� and
a11 said remaining portions shall continue in full force and effect.
Section 5. That the City Secretary is hereby authorized and directed to mail a copy of this
Ordinance by first class mail to TCI.
PASSED AND APPROVED on first reading this 5 th day of Mav , 1997.
PASSED,APPROVED, AND ADOPTED on second and final reading this 19 th day of
May , 1997.
CITY OF FRIENDSWOOD, TEXAS
���f�� � ��
Harold L. Whitaker
Mayor
- 2 -
Friendswood�'97-1240b.Ord
. . • l'� /`+� , .
ATTE5T:
. .
eloris McKenzie,TRM
City Secretary
- 3 -
Friendswood�'9'7-1240b.Ord.
EXHIBIT "A"
ONSULTING SERVICES, INC.
7801 Pencross Lane (972) �26-721 G
Dallas, Teaas 7524Z 1.yZ`l) ;26-721 G {Fac)
Aanl ? ! , !99?
Ms. Eugenia Cano
Citv Altornev
Ciry of Alvin
216 West Sealy Street
Alvin, Texas 77S l l
Mr. Ron Cox
C�ty Mana�er
City of Fnendswood
910 South Friendswood Drive
Friendswood, Texas 77546-4845
Ms. Cheryl Wilson _
Olson & Olson
3485 Three Allen Center
333 Clay Street
Houston, Texas 77002
Dear C�ty Representatives
C2 Consulting Services, lnc. (�`C2��) has completed its revie�v of the FCC I�orm I?40
f+lings submitted to the Cities ot Alvin and Friendswood, Te�as (the �`Cit�es��) on or about
March I, l997 by TC[ Cablevis+on of Houston ("TC[" or the "Company'�) As you recall,
the FCC Fonn t240 methodology is premised on an annual change in basic cable se���ce
rates and must be filed with the Cities at (east ninety (90)days in advance of the
proposed rate change. The following repoR provides a brief discussion of tl�e +ssues that
were raised with the Company as well as additional findings and recommendations
regarding TCI's treahnent of certain costs ��ithin the filin�
This study does not constitute an examination of the financial condition of�TCi or its
parent company. As such, C2 cannot and does not express any position ���itfi regard to the
aceuracy or validity of the financial infonnation provided bY TCI durin� the course of the
analyses.
City Representatives
April 21, 1997
Page 2
BACKGROUND
The identical Form 1240 filing was submitted to each of the Cities because the services
provided at TCI's designated headend H 1632A serves both j urisdictions. Subsequent to
the original fi(ing, the Form 1240 for H 1632A was amended twice by the Company; once
on March 27, 1997 and again on Apri I 10, l 997. The amendments were a result of
discrepancies discovered during C2's review process�.
Based on the amended filing submitted on April 10, 1997, TCI proposes to increase the
maximum permitted monthly basic service rate from $10.14 to $1 1.88, or a l7%
increase.2 Unlike the 1996 filing, in which TCI chose an operator selected rate that was
approximately $.25 less than the maximum permitted rate, TCI's proposed maximum
permitted rate and operator selected rate within the 1997 filings are equal.
Using the Form 1240 methodology, the proposed rate increase includes a true-up of costs
for the period December 1995 through November 1996, with additiona( projected cost
changes for the penod June 1997 through May 1998. However, due to the 1996 filing
requirements waiver,3 the treatment of the true-up period within this filing requires a
somewhat different approach than that provided by the instructions to the Form 1240.
The waiver was only for the 1996 filing, with subsequent treatment in the true-up of the
instant filing. Therefore, it is not anticipated that any additional annual filings will
require special treatment outside of the established Form 1240 formulae.
The significant increase in the basic service rate is pnmanly due to the movement of two
channels from the expanded basic service to basic service during the projected period.
The basic service rate increase of approximately $I.37 to incorporate the programming
costs and the channel residual costs for these two channels is somewhat offset by what
appears to be a proposed decline of approximately �1.09 in the expanded basic service
rate related to the channel change.4
�TCI originally filed for a maximum permitted monthly basic service rate of$l 1.97. The
amended filings include a proposed rate of�11.88.
ZThe current maximum permitted rate of�I0.l4 was approved dunng the review of the
1996 Form 1240. However, based on a comparison with the operator selected rate of
$9.89, the proposed rate of$11.88 is a 20% inerease over the rate cucTently being charged
to the subscriber.
3FCC Order DA 96-220, released February 22, 1996 ("waiver"), provided TCI with a
one-time waiver to the spacific Form 1240 instructions that require all true-up
computations to be based"on actual costs. TC[ was allowed the opportunity to include
estimated costs for the period December 1995 through May 1996 as an additional
"true-up" period within the 1996 filings.
4Based on the April ]0, 1997 amended filing, TCI shows an expanded basic service rate
that is $1.14 less than the current rate being charged. Approximately $1.09 of the decline
City Representatives
Aprii 21, 1997
Page 3
PROJECT ACTNITIES
The primary focus of C2's analyses was to ensure that the "first" true-up of previously
projected costs was calculated appropriately. The FCC, in its Order DA 96-220, provided
certain guidelines under which to perform the true-up calculations within the 1997
filings. In order to determine TCI's compliance with these guidelines, as well as with all
other estab(ished computations and regulations regarding the Form 1240 methodology,
C2
� Reviewed the onginal Form 1240 filings.
• Developed detailed requests for information based on the completeness of the
filings and other noted issues.
• Communicated with City representatives regarding actions to be taken dunng
the review due to information not provided within the filings.
• Analyzed responses to requests for information and amendments to the filings
resulting from certain requests.
• Developed alternative treatment of certain costs in the calculation of the
maximum permitted monthly basic service rate.
SUMMARY OF FINDINGS
During the course of the review, C2 identified four main issues that have either resulted
in amendments to the filings by TCI or should be addressed by the Cities in determining
the appropriate maximum permitted monthly basic service rate. The issues are as
fol lows, with the first two issues being resolved during the course of the review:
1. The March l, 1997 filing was facially incomplete pursuant to FCC Order
95-397, at paragraph 95.5
2. The Company "double counted"an adjustment to the basic service rate
under Worksheet 3 - Markup Method. TCI agreed, and amended the filing
on March 27th, taking the proposed rate from $11_97 to $1 1.88.
in the rate is due to the channel movement.
SOn March 19, Ms. Cheryl Wilson, with Olson& Olson, notifted TCI on behalf of the
Cities that the filings wer�facially incomplete. TCI proposed increases to the basic
service rate pursuant to computations on Worksheet 5 without providing the necessary
residual and subscriber information related to the tier from which the channels ��ere
being moved. In its response on March 19, 1997, TCI disagreed that the fi 1 i ngs were
facially incomplete, but attached the required information for review.
� �. • - • .
City Representatives
Apri I 21, 1997
Page 4
3. TCI's computation of true-up related to the waiver in the 1996 ftling does
not appear to adhere to the general guidelines provided by FCC Order DA
96-220_
4 TCI's computation of interest on cost under-recovery during the true-up
period may inappropriately include interest on the Company's business
decision to "hold-out" approximately $.25 from the maximum permitted
rate computed in the 1996 filings.
Treatment of 1996 Form 1240 Waiver
Critical to the evaluation of this filing is a detai(ed review of the ECC's 1996 waiver, its
intent and the general guidelines provided for treatment of the costs in the 1997 filings.
Within the waiver, the FCC referred to an"Estimated True-Up Period" being allowed in
order to take into account the increases for the period December 1995 through May 1996
due to actual data not being available prior to the filing of the 1996 forms�. As a
condition to the waiver, the FCC instructed the operators to treat the additional costs for
the "Estimated True-Up Period" in the 1997 filing in such a way as to ensure that such
costs were recovered only for the period June l, 1996 through May 31, 1997. TCI
inc(uded its computation of the "Estimated True-Up Period" in its 1996 filings in an
alternative method to that outlined within the waiver, and termed the computations as
"Gap".
Although the FCC provided instructions on how to treat such costs in both the 1996 and
1997 filings, these instructions were to be used if the operator elected to calculate the
"Estimated True-Up Period" within the Form 1240 fonnulae. Specifically, Appendix A to
the waiver provides the following:
". . .In order to use the cost estimations permitted by the waiver in the first annual
Form 1240 filing, the operator may incorporate the calculations directly into its
Form 1240, or the calculations may be reflected in an alternative manner. . ."
"The following instructions are to be used by the operators that choose to take
advantage of the waiver by using Form 1240 instead of an alternative method."
[emphasis added]
General guidelines were provided by the FCC instructing the operator to prepare
calculations that would enable the effects of any estimated true-up costs to be accounted
for in the "Estimated Tru�-Up Period" of the first filing as well as the true-up period of
the second filing (i.e., the�1997 filing). �-Iowever these guidelines should be interpreted
6FCC Order DA 96-220, released February 22, 1996, Appendix A.
City Representatives
April 21, 1997
Page S
by the operator in conjunction with its choice of computations. This is clear based on the
following directive within Appendix A to the waiver:
"Below are a set of instructions describing how to use the existing Form 1240 in
conjunction with this waiver. [f a system is using an altemative method for
performing a true-up on the Estimated True-Up Period, it should make sure that it
follows the same eneral procedures." [emphasis added]
Within the instant filing, TCI followed the FCC instructions that were provided in the
event that TCI used the Form 1240 formulae, even though it chose to employ the
alternative "Gap" methodology. By following these instructions, the entire effects of the
1996 "Gap"calculations have not been taken into account appropriately when
determining the rate for the projected penod beginning June l, 1997�. This is true not
only for the basic service rate, but also for the expanded basic service rate. Based on the
1997 filing and the costs related to "Gap" in the 1996 filing, the correction for TCI's
treatment of"Gap" reduces the proposed basic service rate from $11.88 to $1 l.66. In
addition, based on the amended filing of April 10, 1997, which inc(udes the expanded
basic service rate of$12.53, the impact of this adjustment on the expanded basic service
rate is estimated to reduce this rate to $12.28. However, such a change to the expanded
basic rate can only be ordered by the FCC.8
�Due to the anticipated use of Module G to compute the "Estimated True-Up Period", the
instructions pcovided for the deduction on Line D7 of the "Estimated True-Up Period"
intlation, that would have been included in 1996 on Line G5. In addition, the instructions
provided for the e(imination of the "Gap" period total costs from the 1997 result on E-{13.
Implicit within the instructions is the reduction on Line D6 of the entire true-up amount
from 1996, which would have been the total of Modu(e F and Module G true-up if TCI
had used the formulae. However, due to the use of the alternative "Gap" calculation, the
inflation from GS was not included in the 1996 rate and the "Gap" period true-up was not
a component of the total true-up noted on Line I8 of the 1996 filing. Therefore, a more
appropriate computation pursuant to the general guidelines provided within the waiver is
to include the "Gap"true-up adjustment within Line D6, and not include the additional
inflation for"Gap" in Line D7. (The first adjustment is also incorporated into the
computations on Line F8.) The adjustment to Line H 13 is relevant under either approach.
gIn order for the FCC to re�iew the changes in costs for the expanded basic service rates,
a complaint would have tb be filed by the franchising authority. Such a complaint can
only be filed subsequent to the rate being placed into effect and after receipt of multiple
complaints from subscribers. The FCC must rule on such a compliant within ninety (90)
of receipt.
,/� /"► ' _ • .
City Representatives
April 21, 1997
Page 6
[nterest on Tru�Up
The Form 1240 methodology provides for the inclusion of interest on any
over/under-recovery determined by means of the true-up of previously projected costs.
Interest is computed at the FCC approved assumed cost of capital rate of l I.25°/o, which,
due to the formulae, yields an effective interest rate of 11.57%. In the case of�
under-recovery, the interest inures to the benefit of"the Company; in the event of
over-recovery, the interest becomes an additional reduction to the rates. [n this particu(ar
case, the true-up period is from December 1, 1995 through November 30, 1996, which
includes the "Estimated True-Up Period" or"Gap" period from the 1996 filing.
For the Cities, a significant component of the 1997 Form 1240 true-up period calculation
is based on the fact that TCI chose not to charge its maximum permitted rate approved
from the 1996 filing. As discussed above, TCI chose to reduce the 1996 maxi►num
permitted rate to an operator selected rate that was $.25 lower. Within the 1997 filing,
the Company now desires to recover the $.25 per subscriber per month "hold-out", plus
the interest on the total amount not previously recovered.
The regulations provide that an operator may delay the implementation of certain cost
increases, plus any interest that has accrued up to the time the operator was entitled to
put the increase into effect. If the operator chooses to delay the increase, the operator
can recover this amount at a latter time, but any additional interest on these costs ceases
to accrue. As stated by the FCC in its Order:9
". . . this policy ensures that where an operator makes a business decision to delay
a rate increase, subscribers are not required to pay�for the cost of the delay."
With regard to the 1997 filing, TCI's proposed interest calculation is based on the total
under-recovery during the true-up period of December 1995 through November 1996. In
large part, the under-recovery is due to the Company's choice not to charge $.2S per
month per subscriber during the period June 1996 through November 1996; an amount
that is significantly below the total of the two true-ups per subscriber in the 1996
computations. The question is whether the Company was entitled to put the increase into
effect in June 1996, and whether the Company had already accrued interest on the
amount up to the time the new 1996 rate went into effect. A review of the Company's
1996 computations demonstrates that TCI was entitled to put the increase into effect and
had accrued interest on both true-up periods through May 31, 1996.
Based on a review of the waiver instructions, it appears that the FCC also considered that
the "Estimated True-Up I�eriod" would be treated as an "actual" true-up period for
9FCC Order 95-397, paragraph 80.
� ;�a ���„r � �.-z+�-��`r',
City Representatives
Apri1 21, I997
Page 7
purposes of computing interest in the 1996 filing. In the instructions, the FCC provided
that the entire period for both the actual true-up and the "Estimated True-Up" was
eligib(e for interest in establishing the rates for June 1996 through May 1997.to
Therefore, interest was computed by TCI for each true-up period through May 31, 1996.
Since TC[ treated the estimated costs for the "Gap" as if they were actual with the
computation of interest up to the time the rate went into effect, and since the $.2S
"hold-out" is less that the total amount of the two true-ups in the 1996 filing, it appears
that TCI made a business decision to delay a"trued-up" cost when it set its 1996 rate.
Based on what appears to be the original intent of the true-up methodology, the interest
should cease on any portion of the two true-up amounts that TC[ chose not to include in
the actual rates being charged.
[n the case of the Cities, the 1996 filing showed a Module F true-up of an additional $. 18
per subscriber per month, while the "Gap" period showed an additional cost of $.46 per
subscriber per month. The $.25 "ho(dout" from the 1996-97 rate is less than the total of
the two true-up amounts. Therefore, the implementation of the $.25 per subscriber per
month recovery in the now proposed rates should not include any additional cost (i.e.,
interest) to the subscriber subsequent to June 1, 1996, as the delay in the implementation
of these costs is based on the business decision of TCI.
The overafl impact of reducing TCI's proposed interest on under-recovery to reflect the
Company's business decision is to reduce the basic service rate by approximately $.03
per subscriber per month. Unlike the adjustment related to the "Gap" treatment, the
interest adj ustment does not impact the expanded basic service rate because TCI
implemented the maximum permitted rate from the 1996 filing.
SUMMARY OE RECOMMENDATIONS
Based on the above findings and conclusions, C2 recommends the following adjustments
be considered by the Cities in determining the maximum permitted monthly basic service
rate:
I. The treatment of the prior filing's "Gap"computations should be revised
to reflect the complete removal of"Gap" from the rates that are to become
effective on June l, 1997.
��FCC Order DA 96-220, released February 22, 1996, Appendix A provides in its
instructions for Module E that all of the "Estimated True-Up Period" is eligible for
interest.
. . � � �
City Representatives �
April 21, 1997
Page 8
2. The computation of interest in this filing's true-up period should exclude
interest on the $.25 "hold-out" in the actual rates charged to subscribers
due to such delay in cost recovery being based on a business decision by
TCI. (Note that the basic rate does appropriately include the costs related
to the $.25 hold-out. The adjustment is only to the interest computation.)
3. The Cities should order a maximum permitted monthly basic service rate
of$11.63 for the period June 1, 1997 through May 31, l 998.
4. In the event that the Cities receive the required subscriber complaints
regarding the monthly expanded basic service rate, the Cities should
consider filing the appropriate Form 329 complaint with the FCC in order
to have TCI's treatment of"Gap" within this tier thoroughly evaluated.
C2 greatly appreciates having the opportunity to work with the Cities of Alvin and
Friendswood. If you have any questions regarding this report, the project activities, or
any of the recommendations presented, please contact Ms. Connie Cannady at (972)
726-7216.
Very truly yours,
C� (;�,,, �` y �,,.._.�� ,�,�•r�-,
�� 4
C2 Consulting Services, Inc.
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Fcdcr�l Communiutiotn Cannuaio� APproved bv 0\18 3066-0G�15
R'a+hingtoq D('20554
_.° �Prtvio�F�iob of FCC FoR 1210(mtv ao�c'in tbe appropriate boz)
1L•ti NO
a. �CC Form 1210 been previoucly f�7ed with thc FCC?
II ya.enter thc da[e ot tha mort rocent f�ling: (mmldd�yy)
YES NO
b.Has en FCC Form 1210 bern prcviously fded with the Fcanrhising Authority?
If ycs,entcr the datc o(the moat recent f�ing: (mm/dcUyy)
9.Sta[ia o[FCC Fot� 1200 Filinb(cnter an'z"in the appropnate bot!
YFS AO
a Has an FCC Form 1200 bern prevaialy F�7ed with the FCC?
ll ycs,entcrthe date f�led (mmldd/yy)
yES !�0
b.H��FCC Form 1200 becn previoudy tded witfi the Fianchactg Atalfiority?
lf yes,ent�rthe date fded�� (mmlddlyY)
lU.Cable Prograa�iog Secvices Coaplaint Scada(cater an'z"in the appropriate boz�
Yf5 XO
i Lc tha torm beuig tled c�rnpo�ssa W an FCC Frnm 329 complaa�t?
If yes,enter the date of tht complamt (mmldd/yy)
��rs �o
11.Is FCC For� 1205 Bcing Included With T6is Filing
12.Sdcdioa of'Gomy Fon+ad'C6amd Add�ioa Methodoloby (wtcr an'i"m thc appropriate boz)
�Chect hve d you ere�amg the arigcial niles [MARKUP METHOD{.
�Ctkct ha�c 6 you are�amg the new,altunative ruies(CAPS METHODJ.
I(�aing tfie CAPS METHOD,hevc you elcctcd to rcvse rocovery for 1'[5 !:0
cha�u�ds added duruig the period May 15,l994 to Dec.3 t,199!?
13_Headead Up�rade M�tLodoloby
!�1 i' �r�crs musr certi(r m rbe Commrssnuv t6ereL�ibilNy�o usr�'s uQgnaF axv�a/wb�v aa/awrd�a equr��mrn16i�iade(rpzrrXiuo rcdr.nfuk.
ck hare i(you are a qualitying small rystem ising�he ztreamlined heedend upgredc methodology.
Part I: Preliminary Information
Module A: Maximum Permitted Rate From Previous Filing
a b c d �
.ine Linc Descri io� Dasic Tier 2 Tier 3 Tiet� Ti<r 5
,l Cu�ni!.tazimum Petmiued Rate 510.1363 513.6661
Modulc B: Subscribcrshi
■ b c d �
,� Liac Dexri lioe Basic Tier Z Titr 3 l'ier� Tier 5
q Avenge Subsnibers6ip F«T�ve-tlp Penod f 11 490 11.225
:2 Average Subscribecship Fa lrue-Up Penoef 2
'�3 Fstimated Average$ubscribenhip For Projec�ed Pefiod I I 910 11.6IS
Modulc C: Inflation [nformation
.ine Line Descri tion
t Uoclaimcd la[luio¢Operrta Swaching From 1210 To 1240 I.
2 Uodairoed Infla�ioo:Unregulaicd Openior ResponJing w Rmc Complaini I.00KIp
3 (oflation Factar Eor True-Up Period 1[Wks I� I.0_'?b
� lofluion Fanor For Tn,e-C�p Penod 2�Wki I�
i Curtea FCC Iofluiou Fu�« �.022i
Modulc D: Calculating lhc Basc Ratc
a b c d �
ne Lix Dcscri lioo " Basic Tier Z Ticr 3 't'ier� Ticr S
i (�urteni HeaJcncf Upgnde ticgmcm S(1.0[Mq SO.IX70(1
>. C••�ea�Ex�ernal Cos�s Segmeai � �50.249A S4.t35l42
S Caps�fe�hal Segmem SO IIOtX) 50.0000
.ii I.tul:up Methal Cegmem S0.(Wfxl S(1.(1(�fY1
� .urem Channtl No�•emeu�and Dek�ion Segmem 50.3669 (50.775i3)
� Currem Trix-Up SeQmeo� 50.63+iR 50.6655
FCC F«m t240
p��2 Mitrozofi F:cel�.0 Versioa lulv 199G
�
Fcder.l Co��ic.tian Commi.sion nPpro�ed bv ODiB 3066-0G85
VVa+hingta�OC 20351
D7 Cimem lofluion Segmeui 50.2352 50.2071 �
�DA Bue Ra�e�AI-DI-D2-D}D4D5-D6-D71 f8.6056 SA.3111
Part II: True-Up Period
Module E:Timing Information
Line Line Deuri ios
E I Wha�T�'pe of True-Up Is[3eiug Perfamed?(Answer'1'.'2".or"3'. tiee InsWCtioat(or a dexriplion of l6csc Iypes.) i
If'I',go lo Moduk 1_ (f"2",answ�er E2 aod E3. l("3",answ�er E2,E3.E�,and E5.
'E2 Vumber of!lfonths in t6e True-Up Pcriod I 12
E) \umbec o(I�loulhs be�wceu ihe eud of Ttue-Up 1'etiod 1 and ihe end o(i6e mov rccent 1'roj«�uJ Penod b
E4 \umber of Mont6s in True-Up Pen«i 2 Eligibk for Inlereu �
ES \umber of Mon�hs True-Up Period 2 Ineligibk for Inierest �
Module F: Maximum Pcrmittcd Rate For TrurUp Pcriod 1
a b c d e
Liac Liae Deuri ioe Hasic Tier 2 Tier 3 Tier� Tier 5
F l Caps Method Segmea For True-UP Pen°d�(Wks 2I 50.0000
FZ Atarkup MeWod SegmeW Eor Tnie-Up Penod I[Wks 3� 50.0400 50.0000
F3 Chan Mvmnt Debm Segmem For T(ue-Up Paiod I[Wks'U5� S0.q0 (sp.qpqq)
F4 True-Up Period 1 Rale Eligibk Fo(Ioflation�DB+FI+Fl+F3� 59.0456 $7.9017
FS In(WionSegm�a(aTruo-Upi'eriod I�(F4'C31-F41 50.2043 50.17ti4
fb Headeod Upgiade Segmeni Fa Truc-Up Period I�Wks 6) sp.p0
�� Exwnil Cous Segmem For Tn,e-Up Period 1�Wks 7� 502326 y4.7417
FB True-Up Segment ForTrue-L'p Penod I SOb566 S0.6R21
F9 !�iu Ferm Rate forTrue-Up Penod 1�F4+FS+F6rF�+FH� S10.1391 513.5039
Module G: Maximum Permitted Rate For True-Up Period 2
a b c d e ��
Lioe Line Dcuri ion Buic Tier 2 Tier 3 7ier� Tier 5
il Caps Vethod Segmea�For Trix-L'p Period 2(Wks 2�
;2 Morkup Me�hod Segmea�For True-Up Period 2(Wks 3�
�3 Chan\femm Dektn Segmeu�For True-Up Period 2[Wks'4/5�
;4 TU Period 2 Rate Eligibk Fa►otlatioa�DB+FS+G I+G2+G3�
;5 lo(lation Segmeut fa True-Up Peri«12�(G4'C4)-G41
;6 Headeod Upgrade Segmem For True-Up Period 2(Wks 6�
;7 Exiunal Cous Segmem Fa Tnx-Up Period 2�Wks 7�
;8 T`ve-Up Segmenl For Ttue-Up Period 2
A Max Perm Ra�e(orTrue-Up Period 2[G4+GS+G6+G7+G8J
� � . . ._ . .. . .... ... - .���.
FCC Form 1240
Page 3 Microsof�Exce14.0 Vusioa Jul��1996
Fedc�l Commu�intiom Como�iasion Appro�'ed bv O�fB 3060-0685
Wa�hingloq I?C 20351
Modulc H:Truc-Op Adjustmcat Calculatioa
a b c d e
1 Li�e Descri ioa Buic Tier 2 Tier 3 Tier� Tier S
!j d�N For Troe-Up Pviod t
Revepue From Period I 51.265.049.00 51,714.057.50
! Reveoue From Mu l4rmiued R�e for Puiod 1 51.397.977.2306 SI.R18.9B1.6839
I Tn,e-UpPeriad I Adjusimem(N2-H1� 5132.928.230G 5104.924.1839
I fotuest on Puiod 1 AdjusUxm 511337.6R54 SI2.135.9574
lju��e�t For True-Up Period 2
i Re.coue From Puiod 2 EJigible fot IWUesi
i Kevenuc!-�rom Maz Ptrm Ri1c(or!'�ena12 C•ligibk I�w IWerest
� PcriaJ 2 Adjuslmed FJigible For Imucsl�Iib}I5�
{ lauest oa Petiod 2 Adju�mem(See:nn.,..+�oos for farmula)
1 Revenue From Periad 2[ncligibk(or Imeres�
0 Revenue From Mu Rrm R�ae(or 1lrtiod 2 lod'egibk for IWeresl
t Pcriod 2 Adjuamem Ircligible F«Imerev[HIO�H9J
Mal Trve-Up Adjuzt�ed
Z 1'revious Remainiug True-Up Adjustmem
J TdalTnr-UpA.djustmeat[N}�H4rH7+H8+{111rH12� 579.756.6392 555.008.4042
4 Amoua a(True-Up Glaimed Foc 7Lis Projec�ed Period 179,756.6392 SSS,OOR.�042
5 Remaining Tnr-Up wdjurimeM(H13-H 11� SO_000� SO'•0000
Parl III: Projected Period
Module [: Ncw Maximnm Permitted Ratc
� b c d e
x Li�e Dcuri ioe Buic Tier 2 Tier 3 Ticr 1 Tier 5
Caps Me�hod Segmeol Far Rojected Period�Wks 2) SO-000�
�1a.tup MeWod Segmem For Proj«ied Pviod�Wts 3� 50.04�0 50.0000
vmnt Dekm Segmen�Fa t'rojated Paiod(VJks 4!5) S1.4262 (54.4634)
' eciod[�e Elijgible Eor In[latio¢�D8rF5+G5rllrL2tl3� 510.2761 57-02b1
nion Segmenl(a Projected Puiod�(14'CS)-14� 50.2271 SO.t553 -
Headeod UpgFade Segmea Fa Proja�ed Period�Wls 6�
Ex�crnal Cost:Segmew Fa Projecud Period�Wks 7� 50.5732 54.7065
(ruc-Up SegmeN F«Proj«ud('aiod f0.5571 50.3947
Mu Permiued Raie for Proja4d PerioJ�14+I5+16+17.18� SI 1.6335 512.2ti26 Eslima�cJ
l Operaior Sekcfed Raa Far Rojec�ed Period fl I.Bt328 512.5287
aar:7�rmuimum�mri'Itdn/e/�grorsdand/a.leia/vxrouo/iavir/uad/ubiG'/vyoumi�'d�Yr. U�oridarrprviavsli-dreaa�eFirdbv�drCamatission criac/ardlno�-6isia°�u[bnrin�inmt�(eir/unrJs
av�rr na irLr�rd d�«v obligxioo to ml.fr serb iefuods ecen ilibe/arm�/ed n�r is 6igher�b�rhe ronies�eJn/e d.r'oev cuna n/e.
CMifiution Stateaeal
WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT
(U.S.CODE TITLE 18,SECTION 10011,ANDIOR FORFEITURE(U.S.CODE,TITLE 47,SECTION SU3).
I certif that the rtatemen�made m tfiis fo�m are true and correct to thc bat of m knowle e and belief and are made in ood faith.
$�naturc - Date
Name and Tide of Pcrson Compleiing thit Fo�m:
Telephone mimba Fax Numb�r
FCC Farm 12<0
Page 4 Microzofi E+cel�.0 Versioo j�!�ti�'
' ,� ,.� • . .
Pcdcral CommanicaRion:Cammi::ion Approvcd By Ok[S 3060-0685
Washinqton,DC 20554
Worksheet 1 - True-Up Period Inflation
x�nsuucUOns,see Appendix A of[nswctions For FCC Form 1240
Line Period FCC Inflxtion F�►ctor
101 Month I 2.22%
102 Month 2 2.39%
103 Month 3 2.39%
104 Month4 z.i9°/a
105 Month 5 2.22°/
106 Month 6 2.22%
107 Month 7 2.22%
108 Month 8 2.21%
109 Month 9 2.2 I%
1 10 Month 10 2.2 I%
1 I I Mon[h I I 2.21%
I I 2 Month 12 2.21°/a
��3 Average lnflation Factor for True-Up I.022G
Period I
114 Mcx�th 13
1 I S Month 14
I I 6 Month I�
117 Month 16
I l8 Month 17
I I 9 Month 1 R ,
I ZO Month I 9
l21 Month 20
122 Month 21
123 Month 22
124 Month 23
l25 Month 24
�Z6 Averagc Inflation Faclor Cor True-Up
Penod 2
YCC Yorm 1240
Pagc 1 k[icro:oh Exccl 4.0 Vcrsion Jaly 1996
. . • ,^` ^ , .
Fcckrd Commuo:a�ioac Commis:ioa Approved By OAB 306406BS
Washing�oa.DC 20551
Worksheet 3- Markup Method
True-Up Period, Basic Tier
For imtructian,xc�pcndic A of Ir�wruct�au Fw FCC I�orm I 240
TrurUp P«iod Projectcd Pmod
QiKStion I.Indicete ihc ptnod(or which this woricahcd i�bcing uscd.(Put sn'\-in thc sppropriue 6or.) \
(�ucstion 2.lndicatc lhc licr for which ltu�work�hal is bcing uvcd.(Pul an'\'in�he a�ropnatc box)
s,sr r�� r�«3 i;�a r�s
x
Cheation 3.How long ia the fini pmod.�n manh.Y.(or which ntc�a'e being an with�hie workxhectl l2
(.hK..tio�4.I law bng ia�hc xxo�d{r.ti«l,in mcxitM_lor whi�:h ratu�rn;h�:ing!�.:t wilh thi.wixt:.fwa,17
� 2 ; � 5 6 7
t-� �� Sua o(Prcvious Su�ot Grre�l Avuage Pef Cia�ael Cku�els TaW Cuaulaiivc
Rcgulaled C�u�els Reeulaled C►�axl CYauels Adjuslseol Added Adjustae�l Adjustae�l
301 f4e.•ious MoWh �'�
702 lfouih 1 3S 37 36.0 50.02 �(l.a SO.a
303 �tonW 2 37 37 37A 50.02 0 50.00 5�-04
304 �1ont6 3 37 37 37.0 5�.02 0 50.00 SD.a
JQS Mou�L� 37 37 37.0 f0_02 0 50.00 Sa.a
J06 Momh 5 37 37 ]7_0 50.02 0 �(1•� �•a
307 Moath 6 3� 37 17.0 50.02 0 50.00 SO.W
30t3 Moa�h 7 37 37 17.0 50.02 0 50.00 SO.a
309 Mowh 8 37 37 37.0 50.02 0 SO-00 SO-W
310 Moat6 9 37 37 37.0 S�•02 0 SO-00 S�•a
31 I �toah 10 37 37 37.0 50.62 0 SO_00 SO.W
3t2 I�toaW tt 37 17 37_0 50.02 o f0.00 5�.4�
313 Mooth t2 37 37 37.0 f0_02 0 SO•00 SO•a
314 A�era6e Period 1 Msrtup MNrod Adjusl�e�l �.a�
3Ii \foo�h 13
316 �touW 14
317 Mom6IS -
318 Alon�616
319 Momh 17
320 �loat618
321 A(on�h l9
322 �1omh 20
323 �lomh 21
324 Moulh 22
325 \touih 23
326 \looih 24
327 Avenge Period 2 Capz Me16od Adjuslmeul
FCC Form 1240
p��� Microso(i Excel�.0 Veryou Julv 1996
Federal Commuaications Commisvoa ppproved By Ot�fB 306606g5
Washiagion.DC 20i54
Worksheet 3- Markup Method
Projected Period, Basic Tier
Fa irotn+uio�q acc Py�pcndix q o(I�atrodiau For FC(:Fam I 240
Tnu-l�p Prnod F'rojcc�ed Pcriod
Qucstion 1.Indicatc�hc period fw which�hia w«kaLcd is hcing uxd.(Put sn'X"in thc a�xo�rietc Iwx.) \
(�uation 2.Indicalc the�icr(or which this woricshccl iy being used.(1'ul en"?("in Ihe approprielc bu:c.)
Huft 'rier 2 Tier 3 T�cr 4 Tiet 5
X
Qucztia�3.I low long is thc first period,in mqitlu,for w�hich ntes uc bcing sct with lhis wori;.�hect? � 12
Qucstion 4.How long is thc sccond period,in months,tor which rata vc being�ct with this workJ�cc�'? p
� 2 3 � 5 6 7
�:� �ri� SY�af Pre�iouz Su�o(Gurrc�l Aven6e Pcr G�aa�el Cka�aels '1'oW Cu�ulative
RegulHed CYauels Regulalcd CYa�xl Chaa�elz Adjuztmeal Addcd Adjuzlmest Adjustme�t
301 Previais MoMh jp.p.�
302 41ouW 1 37 37 37.0 s(1_02 0 50.00 SO.W
303 Mouth 2 37 37 37.0 f0A2 0 50.00 SO.W
304 MoaW 3 37 37 37.0 j0A2 0 50.00 SO.UI
3Q5 Moo�h 4 J7 37 37.0 s0_02 0 fQ.00 50.61
306 MonW 5 37 37 37_0 s0_02 0 50.00 SO.W
307 Mon�L 6 37 37 37.0 j0A2 0 SO_00 10_W
308 Mouth 7 37 37 37.0 j0.02 0 50.00 SO_6/
309 MoaW 8 37 37 37.0 s0.02 0 SO_00 50.01
310 MooW 9 37 37 37_0 j0.02 0 f0_00 SO.W
311 Mouih 10 37 37 37.0 s0.02 0 SO_00 SO_61
3l2 MonW I I 37 37 37.0 f0_02 0 SO_00 SO.W -
313 MooW 12 37 37 37.0 s0_02 0 50.00 50.04
314 Average Period 1 Martup 1�[el6od Adjuslmeot f0.0400
_ _ °,�; :
�_•��1`.��,.. .a.v . �r�. :;1 '. _ Y� ,a�, -. . . ' ' . ' ... . _. .�. __:. .,_ .
FCC Form 1240
Page 1 Microso(I Exce14.0 Version Juh'I�6
Feda�al Comm�micatiaa Commcsion Approvcd By OMB 3060-0685
Wathictgton,DC 2�554
Worksheet 4 - Residuai
True-Up Period
For inswclions,sec Appa�dix A of Instructions For FCC form 1240
Que�ticx�I.Indicatt the period for which this worksheel i�being used.(Pul an"X"in�hc appmrna�e box) T�voUp Period Projected Penod
X
a b c d o
Line Line Des ' tion Bacic Tior 2 Tier 3 Tier 4 Tier 5
Pcriod Onc
401 Avvage PamittedCharge 59.1750 S12.7250
102 Averagt Eztema�Casts 50.2326 S.t_7.117
403 Average Total P�r Cheeutd Adj�atme�aher 5/11/94 foc 50.0000 S0.0000
Chmmds Addcd Using Caps Method
101 Average Tia�Resi�ud[lO1-102-103J Stt.942� 57.9833
105 Average Chmmels pv Regulated Tier 16.5000 19.5000
106 Avcrage Caps Method C1�mmels per Ticr 0.0000 0.0000
107 Averegc Remart�uig Chmmds[405-406� 16.5000 19.5oU0 �
108 Avaage Paiod 1 PvCFmnnd R�sithial[404/107J Sa.5.�2o So.�o9�
Pcriod Two
Average Permiaed Charge
UO Average Extemal Caatc
111 A°�e Total Per Chmutel Adjin�ents aher 5/1!/94(or
Channels Added Using Caps Method
112 Avc�age Tier Residual[�09-t10-411j
113 Avetagc Charmels pu Regulated Ticr
114 Avcragc Caps Method Channek por Tier
I15 Average Remaining Chmmels[/13-�1/]
4i6 Avcrage Period 2 Pv Chmmd ftcsidual{{12J415J
FCC Form 1240
F'age 1 Microsoh Excd�A Ve�sion luly 1996
Fcdval Comm�aticatim�c Commitsion Approved By OMB 3060-0685
Wachmgtoq DC 2055�
Worksheet 4 - Residual
Projected Period
(Jucstion 1.Indicate thc penod for which Ihis worlcshctl is bcing usod.(Put an"X"in�hc aprropna�c box.) 'I'ruc-Up Pcnod Proja:ted Pcncd
\
a b c d c
Liao Lme Des � tion Basic Tier 2 Tier 3 Ticr� Ticr 5
Period One
101 AveragePamittcdCharge S10_1363 S13.6661
402 Averagc Ertemal Cos� 50.5732 SI.7065
403 Avuage Total Pv Chann�l Adjmtmrnts eher 5/1V91 for So.0000 50.0000
Chmmels Added Usuig Caps Method
�01 Average Tier R�si�al[10(-402-403] S9_5631 S1t.9596
�OS Average Cl�mels per Regulated Tiu 20.0000 II.0000
406 Average Caps Method Charmels per Tiu 0.0000 0.0000
407 Average Remauiu�g Cham�els[405-406] 20.0000 17.0000
108 Avetage Period 1 Pv Cham�d Residual[404/407] 50.4782 50.5270
. _. _ -
__• -
. . . _. _ . ._. . .... __ . ,.. _.. . . , . ...-. , -Yr��. �c� . -,.,... ..... � . - .. ... .
. __ .._. ._ .. _ . . .._ . . . .. . . . _ . . . _ ___..._
. . . _. _... ,
i
+ y . ,
� . __ .iw�«-�.. � . ... .. _ . _ -.
. ..,.._ _�-._ - .._ _. . .. _.. __... . . . . . . _ ._ . .._ . . . .
. i ' ' . _.... �, .... . . . . � �
"_'._ . . . ._. . . . .. , , t� ;t'.... ._ . _ . — .,, . .
i ' _._ . _ _. . ._
._. ..__ _ ___ _ _ .
. . . . . . . .A"S:'f;.I-tu:: .. . ',¢t�l:c ._, . . �
i
FCC Focm 1240
Pagc 2 Microsoh Excd 1.0 Vusion July 1996
. . • .+� /1 , .
Faferal Commuaitatioos Coamission Approvcd B��OFi6 30660685
Washingioo,DC 20554
Worksheet 5-Chaanei Movement and Deletion
True-Up Period, Basic Tier
For instruc�iom,scc.4ppcndi<A of Inuruc�iom For FCC Form 1240
Qw.�at�on 1.Indice�c�he period for which�his woriciiuxt ia 6eing u�ed(Pw an"X"in�bc apprvpnslt kror.)
Truc-Up Pmod Projoc�cd Pmod
\
O�+a+2 Indica�c We lirr for whicA this wwlcahctt n bcing a�od(Pd an'X'in the yyropialt box)
13asic 7 rr 2 7 ier 3 l�icr< �1-ier i
�
�uCStwn 3.How loag u the fu+t paiod,in moa6ti f«which�tcs arc bcing�et with Wis waYihcu? 12
Qucstion 1.How long is Ihc ucood pmoQ in montM,for whicL raln arc bev�g�ct with thi�workalwM? 0
1 2 3 �
Lix Period Rezidual o(C�wels Dek�eA Residual o!C6usels Moved Hel Per-Chaanel Cosl Adjustmea� Cuiuulalive Nel PerC6aax1
From'1�er (�dded)to'1'icr �Column 2-Column 1� Cosl Adjusimcn�
i01 Pte�•ious Period �-�0
�fi2 \foo�h 1 S(1.0000 5�1-4000 5�.4000 5�.��
iO3 \foo�h 2 50.0000 S�-OODO SO-0000 SO-�000
iO4 \4oai�3 SO.OQ40 50.000� SU-O�DO 5�1.'��
�(15 �1oa�64 S0.(l000 SO.OU00 50.0000 10.400(1
j06 \tooi6 5 S(1.0000 50.0000 SU.O�00 50.4000
i07 �toaih6 SO.00DO 50.0000 50.0000 511.�000
jp8 Alonth 7 50.0000 50.0000 50.0000 K1.4000
509 \fouth 8 50.0000 50.0000 SU.��00 5�.4000
"'0 \loo�h 9 50.0000 SO-0000 50.0000 50.4000
\tooth!0 50.0000 50.0000 SO.U000 50.4000
\fon�h I I 50.0000 50.0000 50.0000 fb.�000
.3 \touth 12 50.0000 50.0000 50.�000 50.4000
514 Avenge Period!Chaaeel ldoveoed ud DckGo�Adjuslee�l S�•4000
515 AfooW 13
i16 Moo�L 14
517 MoaW 15
518 Moolh 16
519 \foalh 17
520 MoaW 18 �
S21 MoWh 19
522 Modh 20
523 Modh 21
524 MoWh 22
S25 MootL 23
S26 Month 24
527 A�erage Pcriod 2 C�auel I�fo�e�ed a�d Deklio�Adjnslocd
FCC Form 1240
Page 1 Microsofi Exce14.0 Venion �O�)���'
. . - ,� ^ . . .
feckral Comm••�ruioos Commission Approved By O\18 30660685
Washingtoo,DC 20554
Worksheet 5-Channel Movement and Deletion
True-Up Period,Tier 2
1-«insvuction,acc Appadix A of Im�n�ctian For FCC Fwm 1240
Qucxtion I.(ndicatc Ihc period(or which Utis wotkil�cct if bcing uxd(Put an"X'in�hc appro�uiate box.)
"frue-1�p Pcriod 1'rojcUCd Pcrial
\
(lucstion 2.Indicalc thc ticr for which this worinhcN ia bcing used.(Put an"X"in Ihc�ppro�matc Mx.)
Buic Tier 2 �1'ier 3 'fier 4 Tier�
C
Qucstion 3.How long ia the fust paiod in monlhs,for whicM rato arc bcing sct wilh this work�hcet? 12
Qucstion 4.How long is the rtcond paiod in maitln,(or which ntn vc hcing aa with thi�workd�cd?
1 2 3 �
Line Period Residual of C�aaaels Dekled Residual o(Chaaxls Moved Nel Per{6auuel Cosl Adjuslmeol Cumulalive Nel PerChaaxl
Froo Tier (added)�o Tier �Columa 2-Coluoa 1� Cost Adjustmenl
i01 Previous Puiocl 50.0000
ioz \loath 1 So.4o9a So.0000 (So.�� (So.so�)
�3 �foom 2 So.0000 so.a000 so.0000 �so.+ov+>
iO4 Month 3 50.0000 50.0000 5�1.0000 (SO_409�)
505 \lonth 4 50.0000 50.0000 50.0000 (50.4094)
iW �tomh 5 50.0000 50.0000 5�.0000 (50.409{)
i07 \foat66 50.0000 50.0000 $0_0000 (S(1-�094)
�OS \foo�h 7 50.0000 50.0000 50.0000 ' (50.�094)
i09 Mooth 8 50.0000 50.0000 S�_0000 (SO_4094)
510 �lonth 9 50.0000 50.0000 50.0000 (f0.�4)
511 MoWh IO 50.0000 50.0000 S(1-0000 (SO.�W4�)
s i z �toow i� fo-0000 so.0000 fo.a000 (so-+o�+)
s�3 �foomiz So.0000 so.0000 So.0000 (So.�ov+)
i14 Average Period 1 Chaaoel Move�e�t a�d Deklios Ad"ustmeat (SO•409�) -
�I� �fonthl3
516 Month 14
�17 \looth IS
�IH Moah 16
519 \4out617
�20 �Ioa�L 18
�21 Afonth 19
522 Atooth 20
523 �foo�h 21
S24 Monlh 22
�2i \loath 23
526 ��omh 24
�27 Avenge Period 2 CAannel Movemeal�nd Deletioa Adjuttmeol
fCCF«mINO
Page 2 Microso(�Eue14.0 Venioa 1ulY�99�
� ^ .
EedenlCommunicuionsCommisuon � Approved By OMB 306a0685
Washiugioo.DC 20551
Worksheet 5-C6annel Movement and Deletion
Projected Period, Basic Tier
For instruc�iom,scc.4ppcndic A o(IfWructiau For FCC form 1240
Qucstion 1.3ndicatc tM period(or which�his worinhcd'u being u�cd.(Put an"X'in thc�ppco}xiuc hox.)
Truc-Up Pcriod Projcctcd Paiod
\
Qucstion:.Indicetc thc ticr(or which this worinhecl i�bcing u�cd.(Put m"X'in Ihc�prropriatc Iwx)
Uasic �fier 2 '1'�er 3 �I�Kr 4 Ticr S
\
(�uation 3.Hou�long is thc firrt Qaiod,in monUn,(or wiuch ratcs are bcing ae!wilh 1hu work+h�xa? I S
Qucs�ion 3.I low Iong i�thc Rocond reriod in nwntln,for which rata ue 6cing�el wilh�hn worksho�.1'? �
1 2 3 �
r�.� P*iiod
Residral a(�'►•��•��pekled Residwl d C�aa�els Yo�ed NN Per�Ckauel Cosl Adjuslaed Cwul�i�e Ncl Pvl�aa�el G
Fro�Tier (added)to Tier {Cotum 2-Colum�1� Adjustacat
501 PYevious Period �.��
502 \(oa�h I 50.0000 51.0262 11.0262 51.�262
503 �SonW2 50.0000 50.0000 s0•0000 S1_4262
504 Mouth 3 50.0000 50.0000 t0.0000 51.4262
505 Moath 4 50.0000 50.0000 50.0000 SI.�262
506 Mooth 5 50.0000 SO-0000 t0.0000 51.�262
i07 Mon�L6 50.0000 Si1.0000 50.0000 51.4262
SOR Noulh 7 j0.0000 f0.0000 f0.0000 51.�262
509 MoWhR 50.0000 50.0000 f(l-0000 51.4262
`�0 �footh 9 50.0000 50.0000 f0-0000 SI.�262
Moo�h 10 50.0000 SO-0000 SO_U000 11_4262
Modh I l S(L0000 SO-0000 j0-0000 51.4262
J Moa�h 12 f0.0000 50.0000 SO.0000 51.4262
�14 A�enge Period 1 C\auel 6loreeeat ud Dek4o�Adjuslaed St.�262
FCC Form 1240
Page 1 Microsof�F,xcel 4A Venioa lulc I�6
, . � .+�,
federal CommuuitaUOns Commission Approved Bv OMB 30�60�068$
Was6ingloa.DC 20554
Worksheet 5-Channel Movement and Deletion
Projected Period,Tier 2
Foc umruct;onc,�cc Appc.dix p of Instrucl;ons For FCC F«m 124ll
Qucstion 1-lndiu�c�hc period for which thia worksf�ect ia bcing uvd(Put an'S'in thc arpro�iatc bo�c)
Truc-Up Pcriod Rojmtcd Pcriod
r
Qucstion 2.Ind�catc thc�icr fw which lhi�work�hcct is bein uxd.(Pu(an^X"in Ihe a �a1c bo[.)
�� r�2 r�3 rK�a r�s
x
C�.:tion i.Ho�a�long is thc first periot�in months.fa which ratd arc bcing�ct wilh this workihcc[? I2
(Jucstion 3.How long is lhc sccpd period in marths,for which ralcs arc being acl wi[h Ihis work.J�ect? 0
1 2 3 4
L� �� Residaal of Gka�aels Deleled Residw!o(C�...'1�Noved Nel PerC�u�el Cosl Adjusl�ed CuaaWi�e Nel PvL�u�el Go
Fro�Tier (added)to Tier (Coluda 2-Colana 1� Adjusl�esl
501 Previous Period (fp.�pq�)
sa2 �fomn i Si.os4o So.0000 (S�.osw� (Si.�3+)
iO3 �too�h2 50.0000 50.0000 SO.0000 (SI_4634)
iO4 Mooth 3 $0.0000 f0.0000 s0.0000 (S1.4634)
i05 Afoo�h 4 50.0000 50.000p j0.0000 (51.�634)
sob Moo�n s So.0000 Sa.0000 So_a000 (S�.�w�a�
i07 Month6 50.0000 50.0000 f0.0000 (Sl_�634)
SOR Month 7 50.0000 50.0000 S(1.0000 (51.�634)
509 Month 9 50.0000 50.0000 SO_0000 (51.1634)
sio MonW9 So.0000 So.0000 So.0000 (5�.�3+)
sii Moom io So.0000 So.a000 fo_0000 (f�-��)
si� Moomii so.a000 So.0000 fo.0000 (fi.+b�)
513 Mooih 12 50.0000 50.0000 fp.pppp (S1_4634)
514 A�ense Pviod I C►auel Mo�e«d aad Deklio�Adjustse�l (SL�63�) -
FCC Form 1240
' Page 2 Microsoh F,cce14.0 Versioo Jul�'IQ9b
. . • � � . .
Federal Co�*m•��:ruions Commisuoa ApProved By OMB 30G0-OG85
Wuhiogioa DC 20551
Worksheet 7- External Costs
True-Up Period
a�nAruaio�+oc Appoodi<A of Inun�ctian For FCC Form 1240
�fruc-l�p Pmaf Projectc.l Pniod
�ucu�o�i.Fo.wmicA umc p«ioa a�e you fitling ouc Nu wort�hca? [PW an"X'in Iha appropriatc box.� X
luestion?.How long is�he fust period,in monlha,for which rala arc being sct wilh Ihi+wor4�hect? 12
�,csiia,3.Ho.c long i�the.ccad p«iod.in mondn.tor which ratc uc bcing act with th;�wo�hca? 0
• c �
Jne [�ne peacrlption Batk 7ier 3 71er 3 Tier 1 77er S
Period l
:ctrnwl C�sti Eli ibk tor Mxrku
�� Coa o(Programming For Cfwmels Addcd Prior W 5/I S/94 or SS,022.36 SSGB.?42.13
.4Aa S/1 S/9d lhing!VLrkup Mcthod For Pmod
)? Rdrwmision Coturnt Fees F«Paiod 50.00 50.00
)i Cop�Ti�t Fuw For Paiod 519.357.21 525.749.31
H Eacr�l Cow Eligibk For 7.SY.Mrk�qr 521,379.37 5394,111 45
)S �farkcd L%p Ectc.ul CoAi 526,208.0378 5638_702.0588
iternal Costs Not E' 'bk for Marku
�6 Cablc Spailic Tuw For Paiod 50.00 50.00
�7 Franchix Rctatcd CoaU Fa Paiod 50.00 50.00
�8 Comrniuion Rcgulatory Foa F«Paiod 53,863.03 50.00
�9 ioul Eacmal Cous For Paiod 532.073.U678 S6?8,'702.0588
0 �lonthly.Pa•Subscnbcr Ewcrnsl Cow For Period 1 SO.ZZ26 Sa.7417
Pcriod 2
sts E' 'bk for Marku
.t of Pro�ammvig Fa Chmrcla Addcd Prior W S/1 S/94 or .
� Mcr Srl S�9a Uaing M,ric�Ma6od F«Paiod
1 Rcvanvniasiai Caucnt Fecs For Pcriod
� �PY��F«s For Pmod
t t�ctclnal Cams Eligiblc For 7.5'/.M�a1c�
S A1erlccd Up F�cnul Co�s
:ternal Costs Not E' 'ble for Mxrku
Gblc Spcc�c Taxc:For Pciod
� Fr�nch,ac Rdatod Co�la For Paiod
t Commission Rtgulatory Focs For Pcriod �
+ Toul Edand C«u Eo�Pmod
� \4o�tlily.Pa-Subsctibcr E�arnu1 CosU Fof Puiod 2
• FCC F«m 1240
Page 1 Mfcrmof�Ftce14.0 Version ���`���
. , � �
Federal Commuo:ca�ioas Co�+m:«:�n Approved Bv O\i6 30660685
Wuhingiou.DC 20554
Worksheet 7- External Costs
Projected Period
For imtnnlian,sx Appadix A of 4�Gn�ctiarc For FCC F«m 12d0
Tru.;-l�p Pcriod F'roja:tad Pmod
Quctioa 1.Fa w�hich timc paiod cc you filling aa�hia worlatu;cl? [Rc an'X'in thc appropna�c box I X
Qutctiw�2.How la�g u�hc fvsl perio�in ma�th�for wltich ra�n arc bcing sd with this wortak�oct7 l2
QucQion 3.How long is thc�ccood pciod in mwHh�fa wfiich rala oc bcing�cf wi�h this wwkshcci7 0
a t e
L3ne IJM pescr{ lon &ufc "lier 2 7ier 3 liK J Tier 5
Period l
Ezternal Costs Eli 'ble for Marku
�O� Cost of Programming Fa CF�w�cic Addcd Prior l0 5/1 SN4 or SSO,OJ I.IG 5583,593.53
Afler S/1 S/94 Lking Mirkup MeMd Fa Paiod
702 Rdrarnmiaion Conscat Foa F«Paiod 50.00 50.00
703 Copyripf�t Fca For Pviod 520,085.77 i26,63714
70S Etlrnul Cocls Eligiblc For 7.3'/.Markup 570.116.93 5610,230.77
705 Wr1ccA Up F�dcmal Cosix 575}756991t 5���9'97i.077A
E:ternal Costs Not E' 'ble for Marku
706 Gblc Spoc�c Taxa F«Paiod � 50.00 50.00
707 Frmchiz Rda�cd Co4s Fa Pmod 50.00 50.00
708 Commission Rcgulaiory Foa For Period 56.685.73 50.00
7119 ToW F�aa�l Coats For Pciod 582,060.9298 5655,998077H �
710 Mont}dy.Pa-Subscriber F�nernal C.osts For Pcnod I 50.5732 54.7065
FCC Form I240
Page 2 MicrosoG Fzcc14.0 Veniw lul�•1996
. . • /1 ^� . .
Fufecal comm�,aic,tious cam�*:«w• �ppra��d ey oMa�oeaobas
wuhiog�on.DC 20554
Worksheet 8-True-Up Rate Charged
For i�V�r.tia�t+oc Appcndix A o(lroLuuiau Fot FCC Form I 240
Qucstion 1.f 1ow long n thc Truo-Up Paiod 1.in mo�Un? 12
Qucstion 2.How long is thc Truc-Up Paiod�in month+?
■ b c d �
�:.� Li�e Descri 'o� Buic Ticr 2 Tier 3 Ticr� Tier S
AUl '�ton�h 1 StS-46(Xl SI1.7F9011
B42 Mooth 2 58.4G00 S11.7RW
&13 Momh 3 S8•4600 S����80(l
804 Moah 4 S8.4G00 511.7800
805 Moot6 5 S8-4G00 511.7800
806 �touth6 58.4600 511.7800
&17 Mooih 7 59.8900 SI3.6700
808 Moaih 8 59.8900 f I 3.6700
H09 Mon�h 9 59-8900 f 13.6700
BIO Moa�610 59.8900 513.6700
81I Mowh I I 59.8900 513.6700
BI2 MonW 12 59.8900 513.6700
Rl3 Penod 1 Avuagc Ra�c S9.t750 Sf2.1250
BI4 \looih 13
815 Afouth 14
816 \lomh I�
'/ Moulh 16
1 \1oo�A 17
19 A1ooi618
820 \foo�h 19
821 Momh 20
822 �lomh 21
823 �fom6 22
824 »oaL 23
£S25 �1omh 24
826 Peri«I 2 A��erage Raie
FCC F«m 12a0
p��� Microso(t Exce14.0 Version �W!���
. F � � • ° - ..
ANALYSIS OF INTEREST DCPENSE ADJUSTMENT
H1632A
True-Up Per Subscriber for 1996 0.1836
Gap True-Up Per Subscriber for 1996 0.4552
Total True-Up Amounts for 1996 0.6388
Maximum Permitted Rate 10.1363
Operator Selected Ftate �.8900
Holdout (02463)
1997 True-Up Before interest 132.9282306
Aduai True-Up Period Subs 11.490
Annual amount per sub 11.5690
Divided by 12 ]2
Monthly amount per sub 0.9641
Holdout (0.2463)
Times 1996 Projected Subs 11.810
Monthly Amount due to Holdout (2.908.8030)
1997 True-Up Period Subs 11.490
Adjusted Holdout for True-Up Period Subs (02532)
Monthly amount of true-Up per Sub 0.9641
Less Adjusted Holdout for True-Up Period Subs �52.2�21
Actual per subscriber monthly amount subject to interest 0.7109
True-Up Period Subs 11.490
Monthly amount 8.168.5495
Times 12 ]2
Annual amount 98,022.5946
Times effective interest rate 0"1157
Allowable interest 11,337.6854
Page 1