HomeMy WebLinkAboutOrdinance No. 96-12 ORDINANCE NO. 96-12
AN ORDINANCE REJECTING 'TI� SCHEDULE OF EQUIPMENT AND
INSTALLATION RATES PROPOSED BY TCI TKR OF HOUSTON, INC., DB/A
TCI CABLEVISION OF HOUSTON AND FINDING THAT SUCH RATES ARE
UNREASONABLE; ESTABLISHING TF� M�►��]aVIUM HOURLY SERVICE
CHARGE TO BE USED TO DEVELOP TT� EQUIPMENT AND
INSTALLATION RATES OF TCI TKR OF HOUSTON, INC., DB/A TCI
CABLEVISION OF HOUSTON; ESTABLISHIl�tG TI� MA��MUM
PERNIITTED RATES FOR EQUIPMENT AND INSTALLATION CHARGES
CONIMENCING ON JUNE 1, 1996; DECLARING THE REGULATED STATUS
OF TI� INSIDE WIRE MAINTENANCE PROGRAM; ESTABLISHING TI�
1�tiAXIN1UM PERNIITTED RATE FOR TCI'S INSIDE WIRE MAINTENANCE
PROGRAM COMIVIENCING ON JUNE 1, 1996;AND SETTING FORTH OTHER
PROVISIONS RELATED T'HERETO.
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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, by Resolution No. 93-40 (the "Resolution") the City adopted procedures for rate
regulation consistent with the Act and FCC rules, and is regulating basic cable rates; and
WHEREAS, on or about March 4, 1996, TCI TKR of Houston, Inc. d/b/a TCI Cablevision of
Houston("TCI") 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 March 14, 1996, TCI submitted to the City an amended Fonn 1205
and on or about Apri129, 1996, TCI submitted to the City a second amended Form 1205; and
W�-IEREAS, 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 unless the City
has rejected the proposed rates as unreasonable; and
WHEREAS, at the City's request, Reed-Stowe& Co., Inc., has reviewed TCI's first proposed
schedule of equipment and installation rates and each amended filing and determined that the
methodology used by TCI to develop such rates did not comply with FCC rules, regulations,
instructions, directives and recent decisions rendered by the FCC; and
WHEREAS, Reed-Stowe & Co., Inc., based on its review of TCI's original Form 1205 and
the first amended Form 1205, submitted an alternative schedule of equipment and installation rates and
its report explaining its analysis,findings, and conclusions which is attached hereto as Exhibit "A"; and
WHEREAS, Reed-Stowe & Co., Inc., based on its review of TCPs second amended Form
1205, has submitted a revised alternative schedule of equipment and installation rates and its
Friendswoodl'96-120 S.Ord.
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supplemental report explaining its analysis, findings, and conclusions which is attached hereto as
Exhibit "B'; and
WI�REAS, a public hearing was held to heaz public comments on the proposed schedule of
equipment and installation rates of TCI; and
WHEREAS, the City Council has now concluded its review of TCI's proposed schedule of
equipment and installation rates and made certain deternunations;NOW TI�REFORE,
BE TT ORDAINED BY TI� CITY COUNCIL OF TI� 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 TCI's proposed schedule of equipment and
installation rates and the reports submitted by Reed-Stowe & Co., Inc., hereby finds and determines
that TCI's proposed schedule of equipment and installation rates are unreasonable and aze hereby
rejected.
Section 3. That TCI's Hourly Senrice Charge for installation, maintenance and repair of
equipment shall not exceed $19.62 per hour commencing on June 1, 1996. This Hourly Service
Chazge rate was derived by using FCC niles, regulations and instructions for calculating the Hourly
Service Charge as further explained in the reports from Reed-Stowe & Co., Inc., attached hereto as
Exhibit "A" and as Exhibit "B" which are incorporated herein by reference. Based on this Hourly
Service Charge, the maximum pernutted equipment and installation rates sha11 not exceed the
"Recommended Rates" set forth in Revised E�ibit A of the Reed-Stowe & Co., Inc., report dated
Apri130, 1996, attached hereto as E�ibit "B." TCI is hereby ordered to refund to subscribers, within
forty-five (45) days of the adoption of this Ordinance, the difference between the permitted rates and
the actual charges to the extent that actual charges have exceeded the permitted rates.
Section 4. That the City Council hereby declazes and af�irms that the FCC has determined by FCC
order DA 95-1352, adopted June 15, 1995, FCC order DA 95-2269, released November 14, 1995,
and FCC order DA 95-2471, adopted January 19, 1996, that an inside wire maintenance program is a
regulated service and, therefore, the maximum permitted rate for TCI's inside wire maintenance
program shall not exceed $0.08 per month commencing on June 1, 1996. This rate was calculated in
accordance with the recent FCC decisions cited and as further explained in the reports from Reed-
Stowe&Co., Inc., attached hereto as Exhibit "A" and as Exhibit "B"which are incocporated herein by
reference. TCI is hereby ordered to refund to subscribers, within forty-five (45) days of the adoption
of this Ordinance, the difference between the pernutted rate and the actual charges to the e�ent that
actual charges have exceeded the permitted rate.
Section 5. That the City Council hereby finds and deternunes that the schedule of rates established
hereby are reasonable.
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Friendswood\'96-1205.Ord.
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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. 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 8. The Cit Council of the Cit of Friendswood, Texas, does hereby declare that if any
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� 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
a11 said remaining portions shall continue in full force and effect.
Section 9. 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 2otnday of MaY , 1996.
PASSED, APPROVED, AND ADOPTED on second and final reading this 3ra day
of June , 1996.
CITY OF FRIENDSWOOD, TEXAS
By: � �',✓ ,�s. '�
Evelyn B. ewma,ci
Mayor
ATTEST:
By. ' .
Deloris McKenzie,
City Secretary
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Friendswood\'96-120 S.Ord
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. , EXHIBIT " A " � • �
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I N C 0 R P 0 R A T E D
April 24, 1996
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Ms. Eugenia Cano Mr. David Stall �t,���'�
City Attorney City Manager ��� � '3b-7�
City of Alvin City of Nassau Bay � �,�
216 W. Sea1y Street 1800 Nasa Road One V ';"�,� 1"rl
Alvin, Texas 77511 Nassau Bay, Texas 77058 ^ �
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The Honorable Roger Nylin Mr. Ron Wicker 4;_ c�1i�F FR�ED ,�,
Mayor City Manager `�� ct���QPO �
City of El Lago City of Seabrook `��';, �G,
98 Lakeshore Drive 1700 First Street �,�
`�`"<. � i: Ut v ��
El Lago, Texas 77586-6398 Seabrook, Texas 77586 .�
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Mr. Ron Cox Mr. James McFellin
City Manger City Manager
City of Friendswood City of Webster
910 South Friendswood Drive 311 Pennsylvania
Friendswood, Texas 77546-4856 Webster, Texas 77598
a Mr. Nick Finan The Honorable James Cumming
City Manager Mayor
City of La Marque City of Taylor Lake Village
1111 Bayour 500 Kirby
La Marque, Texas 77568 Taylor Lake Village, Texas 77586-5298
Ms. Cheryl Wilson Mr. Tom Pedersen
Attorney City Secretary
Olson& Olson City of Texas City
3485 Three Allen Center 1801 9th Avenue N.
333 Clay Street Texas City, Texas 77592
Houston, Texas 77002
Dear City Representatives:
Reed-Stowe& Co., Inc. ("Reed-Stowe") is pleased to present our findings, conclusions and
recommendations regarding our review of the TCI TKR of Houston, Inc. ("TCI" or"the
Company")Form 1205 submitted to the Cities on or about March 4, 1996. As you are aware, the
purpose of the Form 1205 is to establish the installation and equipment rates that can be charged
by TCI for the period June 1, 1996 through May 31, 1997 and are to be based on the operator's
actual costs for the calendar year 1995.
1651 N.COLLINS BLVD.,SUITE 1 15 1 O'I W.SIXTH STREET,SUITE 225
RICHARDSON,TEXAS 75080-3630 AUSTIN,TEXAS 78701-2932
(214J 680-1880 (512]479-0991
FAX(214J 680-1999 FAX[512J 479-8992
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Apri124, 1996
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The following report provides a brief discussion of the project activities, issues identified during
the analyses and Reed-Stowe's recommended actions that should be considered by the Cities in
stablishing the appropriate installation and equipment rates. This study does not constitute an
examination of the financial condition of TCI or its parent company. As such, we cannot and do
not express any opinion regarding the validity or accuracy of the financial information provided as
support for the costs included by TCI in its Form 1205 filing.
BACKGROUND
Pursuant to the FCC Order 95-397, operators who select to use the annual filing for basic service
rates (Form 1240) must also submit the Form 1205 to be considered during the same review
period (i.es ninety days). The intent is to provide for a one time change each year in both the
monthly basic service rate and the installation and equipment rates. The Order, however, did not
change the methodology for the Form 1205, but continued to require that the form incorporate
actual costs for such regulated activities based on the most recent fiscal period.
In addition to the change in the timing for the review(i.e�from 120 days to 90 days), FCC Order
95-397 provided for an additional Form 1205 filing in the event that the operator introduces
"new" equipment during the year in which the rates are to be in effect. If TCI introduces such
equipment, the Company will be required to file another Form 1205 to reflect only the costs for
the new equipment. The Cities will have si�y(60) days to review that particular Form 1205.
In the TCI Form 1205 filing submitted on or about March 4, 1996, the Company is requesting the
following rate changes:
Current Rates Proposed Rates
Area 11 Area 22 Area 33 All Areas
Install UW $35.75 $35.78 $35.76 $35.42
Install PW 17.87 17.89 17.88 17.71
Add. Connect @ Install 5.96 5.96 5.96 11.81
Add. Connect Separate 17.87 17.89 17.88 17.71
Relocate Outlet 17.87 17.89 17.88 17.71
Upgrade/Downgrade 11.92 11.93 11.92 11.81
Remotes 0.17 0.17 0.18 0.17
Std. Converter 0.99 0.99 0.99 0.92
Add. Converter 2.28 2.23 2.30 1.83
Changing Tiers 11.92 11.93 11.92 11.81
' Area 1 relates to the Cities of Alvin and Friendswood.
Z Area 2 relates to the Cides of El Lago,Nassau Bay, Seabrook,Taylor Lake Village and Webster.
3 Area 3 relates to the Cities of La Marque and Texas City.
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Upgrade/Down. Add. 2.00 2.00 2.00 2.00
Connect VCR @ Install 5.74 5.74 5.74 5.90
Connect VCR Separate 11.49 11.49 11.49 11.81
The current rates appear to be those that were developed pursuant to the Form 393 methodology
as they are not reflective of the Form 1205 rates approved by the Cities in the fall of 1995. The
slight differences in the current rates are due to the fact that the Form 393 methodology
established installation and equipment rates based on a franchise by franchise computation rather
than a system-wide computation.
PROJECT ACTIVITIES
As with the Form 1240 analyses, we performed the following project activities in our evaluation
of the Form 1205 filing:
• Review of the Form 1205 and related documentation provided by TCI.
• Development of detailed requests for information submitted to TCI.
• Analysis of responses to requests for information.
• Follow-up conversations with TCI representatives concerning specific data and/or
treatment of various costs.
• Development of alternative treatment of costs in the calculation of the installation and
equipment rates.
SUMMARY OF FINDINGS
Based on our review of the Form 1205 filings, we identified six major issues with respect to the
development of the rates proposed by TCI. These are:
• The Company's computation of the total number of annual hours devoted to regulated
activities was not based on the actual hours per the FCC regulations.
• The Company's allocation factor used to allocate operating expense to the equipment
basket did not include an appropriate level of overtime hours.
• The Company's development of the allocation factor for technical salaries does not
track the technical salaries shown on the books and records at year end.
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• The capital costs related to vehicle, tools, remotes and converters inappropriately
included an amount for unfunded deferred income taxes.
• The Company inappropriately included in its effective rate of return an amount for
state income taxes.
• The Company failed to recognize a regulated rate for the inside wire maintenance
program.
Installation and Equipment Maintenance Hours
As you are aware, a key component of the development of the Hourly Service Charge (HSC)
which is used to develop the installation and equipment rental rates is the total annual hours
devoted to such regulated activities. As in past filings (challenged by the Cities), TCI has
estimated the total number of hours by using a full time equivalent employee count times 1,811
hours per employee. (In previous filings, the average hour per employee estimated by TCI was
1,863). The current per employee estimate is computed as follows:
_ Total working hours per year 2,080
Less:
Vacation 80
Sick time 60
Holiday 80
Safety meetings 49
Non-productive time 104
Plus:
Overtime @ 5% 104
Total hours available per employee 1,811
As with previous filings, this is TCI's estimate of the hours per employee as it uses this
computation in all of its filings, regardless of system activities or geographic location. In addition,
the Company has changed its estimate from previous filings to now include less hours due to the
exclusion of safety meeting hours and non-productive hours and inclusion of an estimated 5%
nation-wide overtime occurrence.
Based on the responses to requests for information, we deternuned that the Company had not
used this estimate of hours to develop the allocation percentages applied to the various salaries of
employees performing regulated activities. In fact, TCI developed its allocation factors based on
the actual number of installation activities and remote and converter repair and maintenance
activities. In our opinion, it is inconsistent to use hours that more closely appro�mate actual
hours to develop the allocation of costs and then divide these costs by a pure estimate of total
hours in order to determine the HSC.
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Apri124, 1996
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In addition to the fact that the estimated 1,811 per employee provides for a mis-match between
the costs included in the equipment basket and the associated hours over which the costs are
spread, the methodology used by TCI is in direct conflict with the FCC instructions for computing
the HSC. The instructions for calculating the HSC include:
". . . To calculate the HSC, you will compute your annual capital costs plus expenses for
the maintenance of customer equipment and the installation of basic service tier. You will
divide the total costs and expenses by the total number of person-hours spent on those
activities over the past year."
Therefore, in order to provide a matching of the expenses allocated to the equipment basket with
the hours over which such expenses are spread, we have used the hours as shown by TCI to have
been spent on the actual number of installations and repair and maintenance activities. Our
recommended total annual hours is 54,425 as compared to TCI's proposed 54,758.
Overtime Hours Included in Ezpense Allocation Factors
As stated above, the Company used an estimated 5% for the total number of overtime hours per
employee. Based on an analysis of the overtime costs included in Schedule B of the filing, we
A determined that, on average, the overtime spent was significantly higher for the system.
Therefore, we developed the total number of overtime hours based on the actual annual overtime
expense by calculating an average hourly rate for overtime and dividing the total annual costs by
that overtime hourly rate. The result is our inclusion of total annual overtime hours of 12,509 as
compared to the Company's inclusion of only 7,280.
By incorporating overtime hours that more closely match the overtime expenses for the year, we
reduced the allocation percentages applied to the technical salaries and related operating expenses
to determine equipment basket costs. The impact of this adjustment (in conjunction with the
adjustment for technical salaries described below)was to reduce the composite allocation factor
for regulated expenses from TCI's proposed 29.31% to our recommended 24.73%.
Technical Salaries
As in past filings, the Company has allocated Schedule B expenses by using a composite
allocation factor that is developed based on an analysis of each type of employee performing
regulated activities. This composite allocation factor is applied to the total annual technical
salaries and all other associated expenses (e.�., vehicle expense, payroll taxes, benefits, etc.). Due
to the fact that the composite allocation factor is developed strictly by using annual salaries (and
not overtime, vacation, commissions, etc.)there e�sts a variance in the total annual salaries used
to develop the factor and the annual salary related expense to which the factor is applied.
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In past filings, the variance between the annual salaries and total salary related expense was
insignificant, and therefore, the application of the composite factor appeared appropriate.
However, in this filing, the Company developed the composite allocation factor based on salaries
that were approximately 30% less than the per books annual salaries to which the factor is
applied. In our opinion, this results in an excessive amount of salaries and related expenses
allocated to the equipment basket.
We informed TCI of the discrepancy and as of the writing of this report, we have not received an
explanation of the significant difference. Therefore, we adjusted the composite allocation factor
to more closely match the actual annual salaries recorded on the books and records of the
Company. By doing so, we adjusted the composite allocation factor applied to various equipment
basket expenses as well as the capital costs shown on Schedule A from TCI's proposed factor of
22.96%to our recommended factor of 19.20%.
The total impact of our recommended change in the hours to be used in the computation of the
HSC, our recommended adjustment to the overtime hours included in the development of
allocation factors and our recommended adjustment to the composite allocation factor is to
reduce the HSC proposed by TCI from $23.62 to $19.71.
'`� Unfunded Deferred Taxes
In its Form 1205 filing, TCI has included an amortization of what it has termed as"unfunded
deferred taxes." These calculated amounts are being included as a component of the cunent
provision for depreciation on both Schedules A and C. Based on the explanation provided by
TCI, its appears that the Company is taking the position that the equipment rates prior to
regulation were not recovering the deferred tax expense related to vehicles, tools, remotes and
converters. In other words, the Company is representing that its rates prior to regulation
provided for a"flow through" of defened tax benefits derived as a result of the timing difference
between tax and book depreciation.4
We have taken exception with TCI's inclusion of an amortization of the alleged unfunded deferred
taxes for the following reasons:
• FCC regulations and instructions related to the Form 1205 do not provide for the
inclusion of such alleged costs in the deternunation of current provision for
depreciation.
�� 4 Deferred taac benefits are primarily due to the accelerated write-off of assets for tax purposes as compared to the
straight-line depreciation of assets for financial reporting purposes. A"flow through"of such benefits means that
the rates being charged do not reflect the fact that a company with defened taYes will uldmately be liable for such
taYes at a latter time,as they are excluded as a cost component in the computation of the rates.
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• TCI has not met its burden of proof that the rates prior to rate regulation did not, in
fact, recover the then current provision of defened income taxes.
• TCI has never"unbundled" the alleged costs from its monthly basic service rates.
As stated above, TCI has included the alleged"unfunded deferred taxes" in its computation of the
current provision for depreciation related to regulated assets. Pursuant to the FCC instructions
for the Form 1205, the current provision for depreciation is intended to allow the operator to
recover the acquisition costs of the assets in question. Clearly, the FCC did not anticipate the
inclusion of some tax related amounts in depreciation as the instructions provide:
"Enter here your current provision for depreciation based on the ending balance for
equipment included on this schedule." Schedule A
"Enter here your current provision for depreciation based on the year-end balance for the
equipment included on this Schedule." Schedule C
By recognizing that the FCC requires a"normalization" of deferred taxes5 by means of a
reduction to net assets for the accumulated balance of such taxes and the inclusion of a tax rate of
35% in the computation of return requirement (which incorporates a deferred tax provision), it
seems logical to assume that if the FCC intended for operators to include"unfunded deferred
taxes," it would have provided for such a computation within the Form 1205 methodology. As
indicated above, the FCC did not provide for such inclusion in the current provision for
depreciation or in any other cost component.
The result of TCI's proposed computation of depreciation expense is to a11ow the Company to
recover more than its acquisition costs of the assets providing regulated services. In our opinion,
this was clearly not the intent of the FCC when it developed the Form 1205 methodology.
TCI's claim that pre-regulation rates did not recover the then current provision for deferred taxes
has not been supported by the information provided by the Company. In fact, in many instances,
the Company's pre-regulation installation and equipment rates were considerably higher than the
rates established at the time of regulation(1993)thereby suggesting that the Company was
recovering more that its actual costs. Without adequate support as to the actual computation of
pre-regulation rates, with a showing that such deferred tax liabilities were not included in the
rates, the Company has not met its burden of proof that subscribers did not fund the deferred tax
liability and should provide compensation to TCI at this time. In addition, we note that TCI had
the ability to set its rates at its own discretion prior to regulation, and therefore, any under-
5 The FCC instructions provide for a deduction of accumulated defened taxes in the development of net assets on
which the operator is allowed a return. Such a computation assumes that defened taYes have been paid for by the
subscribers("normalized")and therefore,the operator should not be authorized to receive a return on non-investor
supplied funds.
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recovery of costs was at the Company's choice; current subscribers should not be held liable for
past operator financial decisions.
As with the issue of the $20 per converter charge that TCI proposed in its previous Form 1205
(See report to the Cities on June 12, 1995), the additional alleged unfunded deferred taxes were
never"unbundled" from the monthly basic service charge by means of the Form 1200
methodology. If these alleged costs had been"unbundled" at that time, the resulting monthly
service charge would have been lower than that authorized by the Cities. To allow the Company
to include these alleged costs in this Form 1205 results in a"double recovery" of these costs; once
from the monthly service charge, and again from the installation and equipment rates, assuming
there is any validity to the Company's position that historical tax benefits were"flowed through"
to the then existing subscribers.
State Income Taz Rate
In its development of the"grossed-up" rate of return to be applied to the assets used in providing
regulated installation and equipment related services, the Company has included a 4.5% state
income tax rate. Clearly, the State of Texas does not have a state income tax and therefore, on its
surface, the inclusion of such a rate appears inappropriate. We requested that the Company
support its computation, and TCI responded that the rate was related to the Texas Corporate
Franchise Tax assessed all corporations operating within the State.
While it is true that Texas does have a Corporate Franchise Tax, the computation of such tax is
based either on the"capital method" or the"income method," whichever is greater. Therefore, in
our opinion, this"tax" is not a state income tax as defined by the FCC regulations, but rather an
additional franchise related assessment that is not exclusively calculated based on income. If the
Company wanted to include such a franchise tax in the development of its rates, it should
potentially be done by means of a cost-of-service study performed on the monthly service charge
and not in the equipment basket computations.
Inside Wire Maintenance Program
As in the previous Form 1205 computations, TCI continues to treat its inside wire maintenance
program rates as unregulated.6 The Cities have ordered a much reduced rate on such program
based on the FCC regulations related to service contracts. (Such orders are currently on appeal at
the FCC.)
Subsequent to the issuance of the Cities' orders in the prior Form 1205 computations, the FCC
has issued a number of rulings that provide for the regulation of inside wire maintenance activities.
6 The inside wire maintenance program provides for a monthly charge of$.49 for repair and maintenance of a
subscriber's inside wiring based on the subscriber's option to enroll in the program.
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In its decision related to the City of Portland/Multnomah County appeal (FCC DA 95-2269,
released November 14, 1995), the FCC ruled as follows:
". . . if TCI's subscribers own their inside wiring, no lease rate would apply, obviously, but
TCI's costs of providing any maintenance and repair of that wiring may be recovered
through a service contract. Our rules provide that charges for such service contracts must
be based on the operator's HSC multiplied by either the estimated average number or the
actual number of hours for maintenance and repair. . ."
TCI has appealed this decision for reconsideration by the FCC, but stipulated that the ownership
of the inside wiring rests with the subscribers.
Additional decisions issued by the FCC have incorporated the same conclusion regarding the
regulation of the inside wire maintenance rate charged in the event that the inside wiring is owned
by the subscriber. As late as January 19, 1996, the FCC reached the same conclusion in the
appeal of Continental Cablevision in Avon Lake; FCC DA 95-2471.
In our opinion, and based on the decisions rendered by the FCC, it seems evident that the inside
wire maintenance program rate is regulated by the franchise authority. Therefore, we have
computed a rate for inside wire maintenance which incorporates our recommended hourly service
charge multiplied by the actual hours (as presented by TCI) devoted to inside wire maintenance
and repair. The results of this computation is an annual cost of$51,788. This annual cost is
then divided by the actual number of subscribers of 52,805 (November 1995) to compute the
annual costs per subscriber. By dividing the annual cost per subscriber by 12, the monthly rate
per subscriber for the inside wire maintenance program should be $.08.
SUMMARY OF RECOMMENDATIONS
Based on the above findings and conclusions, we recommend that the Cities take the following
actions:
• Establish an Hourly Service Charge of$19.71 to be used in the development of
installation and equipment rates.
• Adopt installation and equipment rates shown on E�chibit A.
• Adopt an inside wire maintenance program rate of$.08 per month.
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Reed-Stowe appreciates this opportunity to work with the Cities in their regulation of cable
installation and equipment rates. If you have any questions regarding this report, the project
activities or any of the recommendations presented, contact Ms. Connie Cannady at (214) 680-
1880.
Very truly yours,
/`-�"(� ' L�T°`r� L �•� �'�C' .
Reed-Stowe& Co., Inc.
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EXHIBIT A
SUMMARY OF FORM 1205 RATES
APRIL 1996
TCI's
Proposed Recommended
Installation Rates Rates Iiates
Installation of Unwired Homes $35.42 $29.56
Installation of Prewired Homes 17.71 14.78
Installation of Additional Connects Initial 11.81 9.85
Installation of Additional Connects Separate 17.71 14.78
Relocate Outlet 17.71 14.78
Upgrade/Downgrade non-addressable 11.81 9.85
Upgrade/Downgrade addressable 2.00 2.00
Connect VCR Initial 5.90 4.93
Connect VCR Separate 11.81 9.85
Changing Tiers 11.81 9.85
Lease Rates
Remotes 0.17 0.17
Converter-Standard 0.92 0.79
Converter-Adressable 1.83 1.56
Inside Wire Maintenance Program N/A 0.08
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F�c��c�m n��a by:o��oeo.osn
" W�oa,D.C.20554 H�'vss:6129/94
SCHED[1LE A CAPITAI.COSTS OF SERVICE INSTALI.A7ION MID MA[NTFNANCE OF E UIPMFNf AND PLMT
.'`. M1faWleunee OthQ L 00�2
md Plen V�kJa Tooh F�dtltles bdow) Ddow)
�BodcVefie 51,504,00T.85 51.632.592.88
C Ac�la[cd ' 'm 11,082,590.31 5933,033.93
D DdmedTum 540,289.27 5170,697.79
.......................... ........... ........................
.............. ........... ........................ ............
.......................... ........... ........................
E NCBodcV�h�e C.D) S38}3283i:•:�iiii:�i528.861•.16:i:! SO:Obii��:•':ii:5490:.•:•::•ii:�. SB.OD::i:•::•ii.
F Rue dRe�mm 01125
6 Cdniaiono Crwi- 1P�a
Gl Fedcil lnc�e Tez Rnte 0.35
G2 Sta[e Ircme Tu Rate 0.000
G3 NdTohlloc�eTocRrie G1+G2 G zG2 0. 00'�'�'�'•'�'�'�'�'�'�:�:�:�:���::::::;::�::;�::;:':::::;:::::�::::::::::::::::::::::::::::::::::::::::�;:;:�:::;:;:;:�:
( 1 35. ......... ........... . ..................................
G4 A� to RdIttY folce4
Gda Ac4u1 hYaest Amw� S&12 484.08
.0&
GCb TolalNUASSds S1,186,193,439J5
. . ... .................................. .
. ...........:. .� � .: �.�.�.�.�.�..�.�..., .,. ,..
. ............ ,. ,. . , �
Gdt BaseRehmmmfines�eot Amaai[G46x 6133,444.751,9?....:; .: .. .,.. ...: ��.�:�:��.�. �.�:.. '��
........ .. ..; .;� .....:.......... ..... .. .
......... .. .,.,. � . . � . .:
........ .. .. ...��.�..� . ..,.
G4d LVaeslDeA� " Facla Gte/Gdc 0.6310'.�.�.'.� � ' ����� �::�:�:�� �,::..,'.:,: :. ..:, ��
......... . ..;.� .. .;,.. .. ... .
........ . . .:. . .......:... . .. � �---
GS FffeaiveTucRale G3x(1-C� C ' toG O.t2At.�.�.�.�...... �� :.�: �.�.�. �.. . � . �� . �..i:
06 fa NaaL C 'ms
......... . � -..�.�.�.� .:.:.:.:.:.:.:.:...:.:.:.:.�.;..� .�.�
C6a BaseReuanrmlwes�ertAmamt G4c 313}'4q6,?6J�Q7�;�,
. . . ...................... . . . . .
C�66 Di�butims
G6c C�vions(mn nM ucecd G66 �
)
G6d
Reh�ms �atloloc�eTax G6e-G6b+(36c .j..�.�.�.�:�:�:�:�:�:�:�:�:����::�:������:�������:�:�:�:��:�:�:�:�:�:�;�:�:�:�:�:�:�:�:�:�;�:�:�:�::�:�:�:::
....
5133.4d4;b19..... .. . ....
................
C6e Pct
Retl�s 'ealolnc�eTix G6NG6a .08'�'�'�'�'�'�'�'�'�'�'�'����:�:���:�:�:�:���:�:�:�:���:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:���:'��:�:�:�:�'�'�:�:�:�:�:��':�:�
{............. .................................................
.................................................
.................................................
.................................................
.............. .................................................
.................................................
.............. .................................................
.................................................
.............. .................................................
G7 Oross• Ra[e C-C �1/(t-GS Otha:l/(t{GSxG6e)) 1.%83'.�.�.•.•.�.-.•.�.�.::�:;:�:;:;:�:;:�:::::::::::::::::::::::::::::::�:;:;:::;:;:;:;:::;:;:;:;:::;:::;:;:::;:;:�:::::;:
Rat
H Caossed- e dRw� x
G U.1f9.I:':':':':'.':':':'.'�:�'�:�:�:�:�'�:�'�:�:�:�:�:�:�:�:�:''�:�:�:':�:�:�'��='�:�:��=:�'�:�:�:���:':�:�:�:�:�:�:������':
.................................................
�miwesm�mt(kosse faTaxcs x 5a9.23s:t9::�:::<•:•:Ms;7}4:1i:•:�:�:•: .dA!:�:•:�:::: So:oD:;:�:•::�:::30:OQ>::i::::
rr�Provi9mfQ ' 'm 5187,589.'75 5157,438.83
x n�.�c�natcu�s[Mn 32s3,B24a<::�':�::: 5z2shsS.�6::�:�: :do:�:�:�:�:�:�:�::s6:oo�:�:�:�:�:�:�:�: 9e:oD::::�:�::�:�:
L GRANDTOTAL[sumofLlneKm6laj Q6i;583;S1;�iiii:�;�; �
Hox 1.
SpecCy:qLc 1.
Specil'y.O�a 2.
SCF�:DULE B:ANM)AL OPERATING EXPENSFS FOR SERVICE INS7ALLATION AI�ID MAINfENANCE OF E UIPMEfVT
Salaria l. I.
�.Bm�[5 lia U�lvies OfLa Tntee ( ' bclav) ( ' betow)
A AmulOp.D�pascafaSvc.loataII.mdMamt.dEquip. 52,550,193.09 598y62.31 5237,027A5 5635,786.35 3352�84.88
B GRANDTOTAL[wmofLneAmtrka] 5J;8�I;SS7.96.�.�.�.�.�.�
Bo:i
Specity.OtLa 1.
Specd'y.O�c 2.
3 �,.- .,_. I
FCC F�1705
�� AIn7 1991
Fedael C�ceti�Ca�m A�gwed by:OMB 3060�0592
' Wa�aq D.C.2055C Fxpitcs:N29N4
^^`+EDl1[.E C:CAPI7AL COSTS OF LEASID CUSTOMER E UIPMENT
It�ote 1 R�te 2 Rmate 3 Cmvata 1 Cmvata 2 Cmvata 3 Oth¢
;dil Mem�mmce5uiice Hams(Aturh 'iql 28.7 157.518 5935.532
C 7as1 N d Untls m Savicc 18,111 7715 16993 57855
0 (3ross Book VaLu 3215986.77 5863,320.66 1873,790.13
E Acn�..7.o-a � 'm 5133,7A2.87 5789,396.64 5332�5831
F Dtf�edTuccs S2,ISIJO (53,280.90) 517,884.36
. ... .. . ... . . .... .. .. . . . . . ... . .. ... .. ........ .
.......................... ........... ........................ ........... ............
.............. ........... ........................ ....................................
G NGBookVa6m +pj S8R.392.2D.�.�.�i.�.�i.�0.00.'.!�.�i.�.�.'. �.00'.�.�.�.�.�.�.�.�i7$:'GU4.52.�.�.�.�.•.35Q3�2756:�.�.•.•.�S(1110'.�i.�.�.�.�.�.�fB.BD.�.'.�.�.�.�.'.�.
� 9 ��������������������:�:'i�i�i'i'i�i�i'i�i�:�:�:�:�:�:i:�:�:':':�::i�:�:�i�i�:�:�:'��:�:�:�:�i�i�i�i�i�:�:'i'i�i'i�i�:�i�i�:�::�i��:�:�:�i�i'i�i�:�:=:'i�i�i�i�i�i�i�i�i
H Rnte d Rct�n �ScLed ti I.roc D�2�.......... ................ . ........................... ................
.............. ........... ........................ ....................................
.......................... ........... ........................ ........... ............
.............. ........... ........................ ....................................
I Re4�mlwes�(koaaed- faTaxu[Gx 314fi1�12:•:�i:�:�ii:SQ.Q�:•i:•:•:�:�:�:�: .9Q!�iii:�ii:�L}PlP1;73:�:�:�i:�:545,d47:P7�:�:�:•:�i SO.W�:•ii:�:�:�:�:�5��00:�:�:�-.'...,.:.:
7 C�Provitimfv 525,177.12 SS9}52.29 5173,357.85
K n�ilC�iulCostsQ+�] 535382:24�.<..�.<. So.oP>.�...•.•.'. So.OD.'..<!<�...Sb9.635.-0i•.'.•.•.. 3236.4e�Sl�i.•..•.SQ.Qei.<'.•..•i.�.SO:OQi.�.�..•..�.
L GRM'D7'07A[.�aomoflJneKmMaJ 677J,612.1E�;�;�;�:�:�:�;
B�].
SCI-�DULE D:AVERAGE HOURS PER INSTALLATION
A. Av Ho� I7nuved H�e ffita➢s�on(euach� laneli�) 1.50
S. Av Hrnas Pre-W'aed Home lusiellatim(eltsc6 sn I�elia� 0.75
C. Av Ha¢s a Addicima!CimMimlmtsllatlm at T�c d'Imtial Iastaiialim(aztach m l�atlml 0.50 -
D. Av Havs er Additimal Co�ectim im'talLtlm Rc ' e Imtellation(atlach m l�atiiql 0.75
E OtLa l�allatirm Ilem ):
ll�l.( � )Relacate OuNd
� Av Hrnas IostaDsbm(au�m c leoma� - 0.75
L( ' ) dc Nrm-Adtress�ble
Av Haas ffiiallnlim(attathffi lmati� 0.50
Iltm 3.( )
Av Haas In4a➢atim(attach m lamti� �
y� �
�3 FCC F�1205
Apil 1991
, . ' � t . . •
' . ��� ..�s . .
Fedval C�cuims C�m Approvedby:OMB 3060-0592
" W�aq D.C.20554 6�uxs:649/pq
WORIL��ET FOR CALCUTA7'IlVG PERMIiTID E [JIPAiFNT AND aVSTAI.LATION(]iARGES
t Snvlcs
Ial C '1al Costs d Iu�lsDatim md Maiamoce SmeBilc I�Bmc 1 S4b7 583�.5467:•.�:•.
.ohl A��1 fa InCaDslim md Mamleamcc Sd�Mte B.Box 2 23.8`74i73�.98�0:�:�:
3. Tohl C iW Costs tod fa Imtalluim aod Ma�mmct ' i+(,�2. 51:33'F.}37,49.'.�.�.�
4. CL3�c md Im41Ltim (YhcL m 0.2473
S. Amul(}�st�c M�'v[mmcemdEnuaDatimCosls,Px� C�sdLccced ' 7xl.meA S1D7251Z87.'.'.'.•
6. 'fIXil Gb�Noms fQ Mamtemn't md f�tal]Wim d Q�A�c md Savica(attach Imetia� 54424.90
7. H Savitt (L'me S/Ime� St4106]'r:':':'i:'.
7'HOD OF BILLINC FOR INSTALWTIONS(pl�te an'z'M fie appupi�te box)
trntallaRms billcd by�e ho�besed m Poc HSC alalaled'm Lroe 7.
i �talluims biltcd as a simdard chuge.
STEP R IaOall�tbu CTuge
8. i7nEa�HSCfaraR��r•n•�:�(FromSCepAI'me'� �a.•.'.•.•.•:'.•:•:':'
............
OR
9. A fa Imtallatim
a,lTmv'aed Home ImlaOatlm
........................
al.HSC IDe JQ.7(+5��.�.�.!�.�.�i�i�i'i�:�i�i�i�i�i�i�i�
a2.AvaageHa¢spcUnw'vedHme7mtaD�tim(Sd�IeD.Lme� 1:5.�.�:�:�:�:�:�.�.�.�i:i.i'i?i.i.i.ici;i.i;i;
a3.Ch�ge per Unwrted H�e L�stallaGm[�1 x d] ;9;fi594�.�;�:.:.;.;.
b.Pn-wacd H�c Imtalletion
bt.tisc t.roc 14.4fn3::�::•:: ::::::::::::::::::::::::
62.AvaageH«uapaPrc-waedH�elnstsllafim(S�cAilcD.LroeB) .75'r.�.�.•.�.�.�.�.�:�:!i!`:�i;i:`i;i;i;i;
............... .. ....
63.CLarge per Pn-waod Hmx 5nlaDatiaa @!x b2J 514:774Y�.�:�:�:�:�:�
c.Additimal Ca�cctim iosTalluim at 75me d bitial Ia�alletim
cl.HSC me 19706!'.�.•:•.�.�.�ii�i�i�i��ii������ii�i�i .
c2.AvaageHaaspaAdditimdComectimhsstallati�riT�edlod.lv�all.[Sc6e3�leD.1-meCJ :$0�:�:�;�;�:�:�;�;�;'�;:::;:;:;:;�:�;:;:;:;:
c3.C3agc pa Additiomt C�ectim imiaIleti�a[T�e d L�rtial�Stallatim[cl x c2] ...85J I'.�.�.�.�.•:•.•
d Admfioml Comeclim�tallstim ImtaDVjm
d1.F6C IDe S39]Ob3:�i:•:�:�i:i'i�i=i�i�i�`i�i�i�i�i�
d2.AvaagcHaaspcAddti�lCamec4oalnstallatimRequ¢mgSepmtelo�alluimlScheAileD.[.meD] :15�:�:�i:•:�i.<�:i;i;i�i"i�i�i�i:i;i�i:
- di.(buge pa Additimol C�ectim�nstallalim Recp'viog Sepnate Iasullalim[dl x d2] f.M:7?97�.•.�.•.�.�.�.
J�ha In9allafims(AS ec�ed'm Sd�Mile D.L'mc :
el.HSC�� 19.7b6S.�.�.�.�.�.�.:�:�:::�:�:�:�:�:�:�:�:�
e2.AvaagHao[Sptrlo�aDafimafhml [SchBileD.LIDC$ll�l] �:75'.�.�.�.�.�.�.�.�.i;i;i;i.i�i;i;i;i.i;i�i�
........... ...........•.
e3.CLage pc Imtallatim dIlm 1[t I a c2] ' itd:�99?.�.�.i�.�.•.
o4.HSC IDt 19.7067.!•i:�i:�:i�i�i�i�i�i�i�:�`i�i�i�
e5.Avaage Hrnas per lmta➢ation dll�2[Sche3ile D.Lme$H�2] :SU':•:�.•.•i i:�:�:'i i�:�'i'����i�i�i'i�i
.......�.�.....
e6.C�gepalmt�DstlmdIIm2[eaxe5] ........... t9E53L•:�:�:�:�i:�:
e7.flSC me� 19.7Ufi1.•.�.�.�.�.�.:�:�:�:�:�:�:�:�:�:�:�:'
e8.AveaageHwasper�mdh�3lSrLc3ileD.Lme$Il�3) �:00':':':':<':':•.•:i:i:i:i?:i��'i;:�:�i:i;
........... ...........�.�..
e9.G.7mge pc 3a�allatim dh�3[e7 x e81 S'0:00:�:�:�:•:�.�.�:�.
0 �
�4 FCC F�1205
lynl 1994
. , � . , .
� .�... _.
Fedail Ca�aGms Cc�m Approvedby:OMB 7060-0592
' Ws�mgtao,D.C.20554 F�§es:629/94
srrr c cneya r�r�oa x� . o
...�--�ccalad�ce w ra exh dlrternt ) R�ote 1 R�o�s x Remote]
ta1M�tt15mittHwrs[C ' mhmmffamSch3deC.LioeB '�8,7:.:.:::::::::::::::U::::::::;:::::;::::::.6:.;::.:.:.:.::::::::::
;C ' it4>663::C:>:�:sis:�c+64�:<•:�:�:�i 5�4:1a63�:•:•::•:•:•
..... ..........
fotalMa�m+rcNSc��ceCost roeloxLroell SS6S.S7.�.�.�.�.�.�.�.30:00'.�.�.�.�.�.�.�.�50.00'�'�'�'•'•'.'.•.'
..... ...... ..... ...
13. Amivc ' co9s Cme ' rn1�frrmS�eBdeC.I.me S35;SS1:2(�i:�:�:�i3e:8D:�:�:�:�:�:�:�:�:SQ.Q6:•:�:<�i:�:�:�:
14. TotalCostdR�Me ' 12+L'me13 §36�]Q'1:8C'i.�.�.�.�S�.Eb.�.�.�.�.�.�.�i.SU.00.•.•.!�.�.�.C�.
15. ThmlcrdUmtsmSUVicc C ' co5�fromSdsmileC.L'mc i81i1'�:�'�;�'�'�:�'�:0'�'�:�'�'�:�'�'•'•'•'�e:�'�'�:�'�:�'�'�'•'•'�
ic. v�c��.�tan.�is� s�s9�s:::�::�::•:so:oa:::•::::•: w.n0:::::•:::
17. RatepaMmth(Lme 1N(12)1 50.1663:::::::::::::::SO;UU;.:::.:.:::.:.•.:SU.UO;�;�;�;�;�;.;,'�'
STEP D.O�aRea fa leiaed Cmvela a b c
(Caladate va fa�e� dttferml ) Cmvatei Cmvatc2 Cowatc3
18. TdslMaio[�ocuSavittHoms C ' coh�flomScLe3ileC.LmeB 1J731S.'.�.�.�.�.�.�.3835,13.•:'.•.'.•.'.�Q'.'.'.'.'.'.'.•.•.'.'
........................ ...........
19. HSC ' S19;7p43•'�:•:�i.�:�dIP.?Q63:�i:�ii:!S�1�,�953:•i:�:�:�:•.
�o. routhfvue�ocasav�a co� ' t8 x lv 39:feaid:':<!: Stld9c932:::>:S6oe:>::�::�::•:
........... .......................
21. Am�alC iulCmu ' coh�$umSche8�leC.L'me Ai9�6S5102'.�.�.�.�.'3238.504.9Y.�.�.�.�.fp.pp.�.�.�.�.�r.�.�.
3T. TaalCostdCmvcta me20rL'mc21 572:759:11�:�:•:•:•:�:535531Z:I4:�:�:�:�:�SD.AO�:(•:•:-:�:•:�:�
23. Dh�budUnilsiuSavice[C ' m�SmS�LemIeC.L'me 7.7�S-.�i.C�i:�:�:�:.t$995�:�:�:�:�:�:�:�:�8:�:�i:�:�:�r:�:�:�i
za. t�nacos�[t,roczza.�ia) 19A309:i:�:�:�ii:SI8.710'1;:,:.:.:::,i;O.OD.�,,�:�'�:.•.•.'
25. RatcpaModh[Lme2pQZ)1 3d:1854:�:�:�:�:•:�:�51:539Z•:•:�:•:�:•.�.SQOB.�:•:�:�:•:�:�:�:
sreP�.a� a ror ou�wxa w �
26. TdalMamle�cdSavittHaus C ' tohmmH�rmSchc�ilcC.f.roeB 0:.�::i?.,.:.;.�ii.
29. HSCIL� SI9:7963:�iiiii:�
28. TotalM�eo�cuSavictCost ' 26xL'me2 $0.00'.'.'.'.'.'i.'.'
29. Amia1C rtalCosLS C�e ' coL�@amScLedilcC.L'meKJ 59Up.�.�.�.�.�.�.�.�.
30. 'fotalCo3af L'me28+L'mc29 SO.OD.�.�.C�.�.�.�.�.
31. T'��fxidUnitSmSavice C�x ' to1�8+rmScLeBileC,L'mt S74S3�'.'.'.'.'.'.•.'.
32. [Jni[Cori[Line30/L'meJl] SQ.QO:�.�.C•.':•.�.�.�
33. Rs[cpaM�th�I,me311(l2)] so.vo:�:•:�:�:•:�:•:�:�
METHOD OF BILLLVC FOR 6iANGWC SFRViCE T]FRS OR EQUIPME.NT�placx�n":"In tLe�pp�optiale box]
ss a Nammal Ch�ge(F�la tlx mmmal cLuge m L'me 34)
�.u��x�y s�«cu��
es ffi Avaage�vge(Fbla the Avaagc Hwus far�Savice 75as m Lroe 366.)
�?"LP F.O� for CT Sevlm lln�s or t
�al fa ' Savice Tias
w use�esc ' scele d es, lace m"x"m me box at tLe '
OR
35. Ltrtif�Hwvl Savice(3v
..........
OR
36. A fa ' Savite Tirts
36a.FLSC ' 19:1963�:�:�:�:�:<�i�i�i�i�i�i�i��!��-:'�
36b.Avecage Ha�s to CLeoge Seavice Tias 0.50
36c.Avaege C�ge for(1�og Scvitt Tics[L'me 36a x Gmc 36b] ;9.$5315.:.-.�.
1 � I
�5 FCC F�1205
lynl 1994
Fed¢el C�ntims Ca�am Ap{rovedby:OMB 306P-0592
• W�D.C.20554 �:y29qq
SHEE7 FOR CALCUI.ATWG TO7AL E UIPMENi M'D 17v5TALLA7101V COSTS
oul C � Cosu dffihll�tiw md Mamt�ce ScLedile A.Box 1 Slb2581�.51�.�....
Taal A�al for ffitaIletim md Me'aimmce Sche3ile B.Bax 2 53,87ASJD'.98':�:�:�:
3. Tohl A�tl C ihl CosGS d Imtallatim md Maid�ce[Lroe I r L'me 2 54:33},}3T,1➢:�:�:�:�
4. CL+amrr md lo9allaa�Pac (Wlsdf l�etiaoa.
3. A�al Q�stamct Mam[�cc�d Idvillatim Costs.Drc � Costs dLeased W.'00'�'�'�'•:�'�;�;�;
roe3xLroe4
6. TWS(C � Costs cf Lcascd Q�.4�c ScLeBile C.Box 3] 5343,642.18'.�.�.�.�.
7. .4mialQut�c amlmt,llatimcosts 5+[.roe S]�3.b92:i8:�:�:�:�:�
8. Pat Allocatim[o Fimc6i,u Ara(set mtiUUCi�s) .
9. Alloca[cd Amul md Imtallatim Cobt[Lrot 7 z Lroe 8 S0.D6'.'�'•"��•'.'�'�'
30. Maothl aodlmtalladonCosl L'me9/(12) I0.00.�.�.�.�.�.�.�.'.
11. N�Da dBavc Sbbsmbcs m Fcanclrise
12. MaYhl �d5uta11atiamCoA �bsmbv me l0/L'me 11 11pIV/0?�.�'�'�'�'�'�'�
13. Lf1oGmA� FaaQ Seelmvucti�mc
14. A� M�thl md�sta➢atimCost S�bsa�bvL'mcl2xLme13 UDN/N':':':':':':'.' �
, 4
^ I i
p�6 FCC F�1205
Ajail 1994
Fedail Co�oicatio¢t Ca�isvm Appoved by:OMB 3060-0591
' Wa�'v�ao.D.C.20554 g�:y29ryy
S�IMMARY SCHIDULE
f uM ImWlatloa Rites P�ued Achial
fa Cable Savitt Imtallatiaos
..H Ra[c A,Lmc : t
b.Av ffitellntim
!.5�sta➢ation af Um�aed Hames St B.L'me 9al 29.5594'.':':':'.':' 35.75
2.m9allstim of Pcsw'vcd Hc�cs SI 8.Lmc 9b3 14.7 17.67
c cs
3.Iu9a➢WirmdA�malC�ecrimsLLT�cdlmtiallmtallntim(St H.L'me9c3 57,853{�:�.•:�.�.�.�. 5.96
4.Fmtellati�of Additiaml C�ectims Imtsll St B.L'mc 9d3 14.779T�.�.�.�.�.�.� 17.87
5.Otha LMallalia�( ' ) B.Lmes 9e3.9e6.9e9
t 1d.28.•.•.•.•.•.�.�.� 17.87
b. 9.87:�:�:�:�ii:�:�: 1L92
c. 0.00'.�.•i.�.�.�.�.�
2. Ma�LI fa I.ease dRemote Ca�rok SI C.Lroe 17,coh�s�t
R�teComrol el: �O;i7'.:.;.•.'.•.;.'.; O.i7
Remae Catrol 2: .qQ•;�;�;•;•;�;•;�;�
R�otc Cmhol 3: 50.0:0:�.'.�.C�.�:•:•:
3. M fa Lease d C�vata Boxa S[ D,Lme 25,coh�s at]
Conva[aBox 1: :99:�.�:•:�:�.�ii: 0.99
CmvataBox 2: l�.Sd�:�:�:�:�:�:�:�:� 2.28 �
CouvatcBoxT 3: "00.•.C�.�.�:•.�:�.
4. MortLl fa Leesc of 011ic S[ $L'me;3
omQ � > d.00���:�:� �•:�
5. fa Tias(H' )IS F.L'me34.35Q36c 59;45i:•:•:�:�:•:�:�. t1.92
LABOR COS7 AND POLICY(7�IM7GES
Inmate ya�mma to tLe followug ttrec qu�tioffi by pLc�an'k"m tLc appropime bmc �
t.Eiave yw mch�ded tlx Lbor costs associatoda�lh s�bsmber cable�ops m yaa dreiges fa mmal'mvallatim7 kt
YFS ;
�NO
�
�
i apitalized thc laba costs associated w"vh wbsmba cable BropSt `
1�
�i�0
3.�'you have filed ihis farmb�ore.Lave Y���5'P�ticy.ag.,cost ecc�g a cost aDowtiem tha[cm�ses m maease m We costs
rochukd m tLc com�natim d e�rrt md'mslaDatims�Lages? �
BYfS(Yw mut attach e flill a�pl�eao� ..
NO
CERTIFICATION STATEMENf
WQ,LFUL FAI.SE STATQ�7.'TS MADE ON THIS FORM ARE PUNLSHABLE BY FINE AND/OR IMPRL40NS�1'f �
(U.S.CODE TITLE 1$SECTTON I001),AND/OR FORFIITURE(U.S.COD$17TI.E 47,SECTION 503).
I cat6'y tLU tlx stu�ats madc m tLis fo�ae true a�c�ect to tLe best d'my laow3cdgc mdbclid aud m�h m good ttih �
Namc dth Ceble Opvata g�pyt .
Date Title
1 1
�� FCC F�1205
ApN 1994
' • � „A...,
FCC FORM 1205
STEP D: AVERAGE HOURS PER INSTALLATION
CONTINUED
It�n 4.(Specify)Upgrade/Downgrade Addressable
Average Hours pa Installatioo j�/A
Item 5.(Spacify)Conned VCR Initial
Avtaage Houts pa Installation 0.25
Itan 6.(Specify)Conneci VCR Separate
Average Houcs pet Installation 0.5
FCC FORM 1205
STEP B: INSTALLATION CHARGE
CONTINUED
xsc N/A
Avaage Hours per Installation of Item 4 j�/A
Chazge per InstallaLiar of Item 4 $2.0000
xsc 19.7063
Avetage Hours pa Installation of Itan 5 0.25
Charge per Installation of It�n 5 4.9266
xsc 19.7063
Average Hours p�Tnstallation of Itean 6 0.5
Charge per Installation of Item 6 9.8531
Y � -
Page 8
. . , , , .
. � �v EXHIBIT �� B �� --• � �
� ��` ���i�i��',�f,��,���i ��c 1:11.
�. I N C 0 R P 0 R A T E D � ���
l2a S �
� , Apri130, 1996
2�2g3Q31 1�
Ms. Eugenia Cano Mr. David Stall �`L� '�y
City Attorney City Manager ti Mq� 6,
City of Alvin City of Nassau Bay M C�T R`�C 1�96 �
216 W. Sealy Street 1800 Nasa Road One � Y�F�F��
Alvin, Texas 77511 Nassau Bay, Texas 77058 � C�r�ylqNqQ� �
Fp �.
The Honorable Roger Nylin Mr. Ron Wicker o�619l�1 �b`��'�'��
Mayor City Manager 91 S
City of El Lago City of Seabrook
98 Lakeshore Drive 1700 First Street
El Lago, Texas 77586-6398 Seabrook, Texas 77586
Mr. Ron Cox Mr. James McFellin
City Manger City Manager
City of Friendswood City of Webster
910 South Friendswood Drive 311 Pennsylvania
Friendswood, Texas 77546-4856 Webster, Texas 77598
Mr. Nick Finan The Honorable James Cumming
City Manager Mayor
City of La Marque City of Taylor Lake Village
1111 Bayou 500 Kirby
La Marque, Texas 77568 Taylor Lake Village, Texas 77586-5298
Ms. Cheryl Wilson Mr. Tom Pedersen
Attorney City Secretary
Olson& Olson City of Texas City
3485 Three Allen Center 1801 9th Avenue N.
333 Clay Street Texas City, Texas 77592
Houston, Texas 77002
Dear City Representatives:
Through the course of our review of TCI TKR of Houston, Inc.'s ("TCI" or"the Company")
Form 12 filing submitted to the Cities on or about March 4, 1996, and amended on March 14,
1996, we noted a significant variance in the technical salaries used to develop the allocation
factors to allocate costs to the equipment basket and the technical salaries noted on the
1 e5�1 N.COLLINS BLVD.,SUITE 1'I S 1 G�1 W SIXTE�I STRE�T,SUIT�"���5
RICHARDSON,TEXAS 75080-3630 AUSTIN,TEXAS 787D1-2932
(214)680-1880 [512j 479-0991
FAX(214J 680-1999 FAX(512)479-8992
, . , , ,
, • ' ,�_. ,,,� � .
� • City Representatives
Apri130, 1996
� . Page 2
Company's general ledger(See Report to the Cities dated Apri126, 1996). Subsequent to the
issuance of our report, TCI informed us that an error had been made in the technical salaries
booked to the Cities' system operations. In addition, representatives from the Company stated
that an additional error had been made in the accounting for capital costs for addressable
converters.
On Apri129, 1996, TCI provided us with a"working copy" of a second amended Form 1205
which incorporates the Company's proposed changes to the allocation of technical salaries and to
the capital costs for addressable converters. We have reviewed the documentation along with our
original computations and make the following findings and recommendations.
FINDINGS
Technical Salaries
The information provided by TCI demonstrated that the Company has inadvertently included the
salaries of employees that are not a part of the Cities' system. In the second amended filing, TCI
has removed the technical salaries related to these employees and therefore, has reduced the total
technical salaries included on Schedule B from $2,370,274 to $1,772,153. Based on our
computation of the allocation factors for specific categories of technical employees, which
includes the issue of overtime hours discussed below, we are recommending a change in the
composite allocation factor for the equipment basket from the Company's second amended factor
of 30.43% to 29.54%. (Our original recommendation for the composite allocation factor was
24.73%.)
Overtime Hours Included in Ezpense Allocation Factors
In our report dated Apri126, 1996, we had adjusted the Company's estimated overtime hours
based on the average hourly rate included in the total overtime salaries reported on the
Company's general ledger. Based on a more detailed assignment of overtime expense and
overtime hours to each category of technical employee, relative to their respective proportion of
regular salary expense, we are revising our original estimate of overtime hours from 12,509 to
19,386. The overall impact of this revision is to change the total number of annual hours from
54,425 to 55,394.
The cumulative impact of adjusting the technical salaries and overtime expense assigned to the
equipment basket and adjusting the number of overtime hours spent on regulated activities is to
reduce our originally recommended HSC of$19.71 to $19.62. The Company's second amended
HSC is $20.86.
• ' ' ,.� � ,
City Representatives
April 30, 1996
, Page 3
Capital Costs for Addressable Converters
Included in the second amended Form 1205 filing, TCI has increased the gross book value for
addressable converters by $1,358,643. The rationale provided by the Company was that there
had been an accounting entry error in which these costs had been inappropriately written off for
the calendar year 1995. TCI also provided documentation of a correcting entry that is being
made to the converter capital accounts.
We reviewed the documentation provided by TCI and also reviewed the converter costs included
in the previous Form 1205 filing submitted in 1995. The Company's adjustment appears
reasonable given that the gross book value for converters in the Form 1205 filing submitted in
1995 was $1,796,267 as compared to the current second amended filing amount of$2,232,413.
(The first amended filing submitted by the Company on March 14, 1996 reflected only $873,770
in gross book value for addressable converters.)
The impact of increasing the gross book value for addressable converters, along with other
recommended adjustments for state income taxes, alleged unfunded deferred taxes, and the
change in the HSC is to increase the monthly rate for addressable converters from our original
recommendation of$1.56 to our revised recommendation of$3.21. (The Company's second
amended monthly rate for addressable converters is $3.32.)
Inside Wire Maintenance Program Rate
Based on the revised calculation of the HSC, we have revised the annual expense for the repair
and maintenance of inside wiring to $51,570 from $51,788. Dividing this annual cost by the total
number of subscribers of 52,805, and then dividing that quotient by 12 continues to yield a
monthly inside wire maintenance program rate of$.08.
SUMMARY OF REVISED RECOMMENDATIONS
Based on the above changes to the computations and adjustment presented in our report to the
Cities on Apri126, 1996, we recommend the following actions be considered by the Cities:
• Establish an Hourly Service Charge of$19.62 to be used in the development of
installation and equipment rates.
• Adopt installation and equipment rates shown on Revised Exhibit A.
• Adopt an inside wire maintenance program rate of$.08 per month.
. . . � /'� /�� � �
City Representatives
Apri130, 1996
Page 4
If you have any questions regarding the Company's second amended Form 1205 filing, our
analyses of TCI's proposed adjustments or any of our revised recommendations, please call Ms.
Connie Cannady at (214) 680-1880.
Very truly yours,
R�d s� � Ca, °�- '
Reed-Stowe& Co., Inc.
. • i � � , •
• ^ � r �
r ,
SUMMARY OF FORM 1205 RATES EXHIBIT A
APRIL 1996 REVISED
TCI's
Proposed Recommended
Installation Rates Rates Rates
Installation of Unwired Homes $31.29 $29.44
Installation of Prewired Homes 15.64 14.72
Installation of Additional Connects Initial 10.43 9.81
Installation of Additional Connects Separate 15.64 14.72
Relocate Outlet 15.64 14.72
Upgrade/Downgrade non-addressable 10.43 9.81
Upgrade/Downgrade addressable 2.00 2.00
Connect VCR Initial 5.21 4.91
Connect VCR Separate 10.43 9.81
Changing Tiers 10.43 9.81
Lease Rates
Remotes 0.17 0.17
Converter-Standard 0.91 0.79
Converter-Adressable 3.32 3.21
Inside Wire Maintenance Program N/A 0.08
Page 1
, . , , ^ , � ,
F�.t c��c�oo �.w�au,-o��o600sn
wa�oa n.c.2osH �:�9�
5(7�'DULfi.l•CAPiTAL COSi3 OF SIItVICE LV57ALLA710N MID MAlT'fFlQANCE OF E UIPMMFF.NT A�ID PLMT
Malnleiu� OtLQ 1. OfhQ i
A �p]m Vd�ldes 7oolt FWUIfe Ddow) Eeb�)
.. .B (kou goay Vafie SI,50l.007.85 31.632392.88
C �y� ' 'm 57.082}90.71 5933.033.93
D DdmcdTua 540,289.37 5170.697.79
.......................... ........... ........................
.............. ........... ........................ ............
.......................... ........... ........................
E NdSoak V�c C+D) S38}�2527}:•:•i:•}:-S52g664.16�:�:�:�i SO:QO:•:�:•:•:�:�:•i:SG.dO:<•:�?:!�:�'�'�Se:eD...:.....
F RatedRa� 0.1125
O Cdrn'orion o Crosr Rde .
Gl Fedr+il mc�c Tu Rue 0.33
G2 Su�
e tocame Su Rate 0.000
'�'�w.}}}}}:•:�:•:•.i;:;,�;iji.i;i;i.i.i.i.i;i.i.i;�;i;i.i.i.i,i;::i;_;';:;:.:.:;::i:i!:�i;::i:i:;;:�:;i;:;:;!�?:i:,::
G3 Nct Totat locmc T�x Ratc(G I+G2}(Gl:G2) D 3S..
G4 A' te R�ea htcca
C4t AceulLoi.ac4
Amqct - S&.308.4&.08
SI I 193 439.75
G4b T
atil Nct Assets .86.
...
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G4c BsseRcNmmlmes�uY Amaml G4bx 61N4�4.bl ......::::: : :::::: :::: :: .
G4d Inceq DeA� � F�aa G4�/G4c
0.63�9'.'.•.':':'.'.'.'.'.i:i'i:i:i:i=i:E:':E:i:i:i:i:i:i:i:i'i:i:::::::::i:::::::i:i:i:::i'i:::::�:>i::�.�:::�:�.�:::::'!:::
GS ffi'octive hz Ra1e G3 x(1-G4� C
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G6 A !a NmL
' 67 .7.'-'•'.'.:.:.:.:::::::::::[;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;[::;:.'::;:;:::;:;:;:::.!::::::_::::::::::;.�;::��.
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G6a BiseRaummlwestrnvtAma� G4c 513347.619..... .:........:.. ... .,., ..._ .....:...
G66 Di#�tims
G6c C�nioas(ma ml acccd G�
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'e G6t-Cfib+G6c SI33' >'b1:92�:•:�:•:��:���:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:�:':�:�:�����:�:='���:"�'�'�'�'�:�:�:�'�'�:�:�:�:�:�:
G6d Rcaffis a to Ioc�e 7u 146.
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G7 Qoss- Ra[e CC .V(IG�O�¢V(1{GS x G6c))
].5483'.�.�.�.'.�.'.�.�.�.�:�:��':�:�:::�:�::;::�:;::'::�:;:;:;:;:;�;:;:;:�;;;;;;;;;;;;;;;;��:::;:;:::;�::::�:;:;:;:::;:;:;:
. . � . . . � �. O,Y19.�2.'.•.'.'.•.•.•.•.•.'�i�i�E•`'�'�i�i�i�i�i�i�i�i�i�i�i�i�c�i�i�i�iii�c�c�i�i�i�i�c<�;'�i'i�;�;�;�;�i�;�;"::i;�;" � - � .
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I Re4�mhrvcs�m[lhosscd- fQTua x 549.h5.19.�ii.�:•:�.•.568.319:13.�.•i.'.': .Dd�.'.�:�}}.�.�.�10.00.�.�.�.•.�.�.�.�.7A:OQ�.'.•.•.•i.•.•.�
J QmeaProvi.dmfa ' 'm 5187,38975 5757,438.53
x �alcyp;�atcosap�n S2ibS?i�a:-:�:�:�:�:�:�u2.Lvs8.SG�:�:�:�:� �:uo:�:�:�:�:�:�:�:-:3d.0a�:�:�:�:�:�:�:�:�Se:eD:�:�:�:�:�:�:�:�:
L CRAhDT07AL�wmofLneKmtrfa) (63;563.Sk.•.•.•.�.�.�.•. ..
Bo:1.
Spe�:OWc l.
Spe[i�y:ql�c I.
SC}ffDULE B:MA'UAL OPERA7INC ERPENSES FOR 5£RNCE II�STALLATION AND ALW7FJ�ANCE OF E UIPAff,Ni
Silaics L O�ta 2.
d B�ts &cc Lh�7Gies OtLrr Tua ' �bclaw) ' belav)
A A�al Op.F]pmsec far Svc.laaaLL md Mai�d Ft�. S19SZ072.05 598,962.21 5177,215.34 5633.78695 S35ZS84.88
B CRAPIDTOiAL(s�moflJneAmMefJ 51;3L6.634.&3:�:�.•.•.•:•
e�z
s�;ty:omc i.
sp�cay:o�r�.
i
1
I
j
i
i
FCC F�1205
P�ge 2 Apn1 7994
. . , ,.
. .
� .--,. _ � < .
Feamt co��x;�c�m Ma��r�:o��oco-0ss�
w.a�aa D.c.zosu ��s�
5C7ffpl7LE C GPI7AL COSTS OF LFASID CUSTOA4R E
A R�de 1 Remde 2 R�ote 7 Cmvata 1 Cmvatrr 2 Cmvata 3 Ome
, 9 Toti1 MauYtamcrJSm�icc Haas(AW� !mR<N 28.7 15T.518 6.9Dr.8S
C TalilMdUoiLSIDSavitt 1&112 77i3 18993 37B35
0 ('yocf Book V�Lie 5315986.77 S863a70.66 31,332.113.66
E Am�milrtcd S])�,�<3.87 S�88J96.64 5673.I23.70
F Dd�edTucs 32,15I.70 (53.280.90) 552,801.83
.... .. .... .. ... . ... .. .. ... ... . . ...... ........... . .. .
.......................... ........... ........................ ........... ............
.............. ........... ........................ ....................................
O NdBodcVWe �(E+� SSbt42.:D:•:•:�:•:�:�:�:fti.00i�:�:�.�:�:�i:�:� .00�:�:�:�.�:•.�:�:�i7$:204.l2:�:�:�:�:�:11:S06�8'1_�13:•.•:•.�Sb.06�:�:�:�:�:�.�:�:�SO.GO:•:•.•.•:�:�:�:�:
H CLossed- Rue dRw� r�Scbcd.L
l.roe D.}I9Z::.}{{?:.:.:,:.:i:i.i.i.�.i:i;:�i�i:i:i,i;i;::iiiit�i;�;i;i;i;i;iEi;i;i!iEi;i;i;.Ei;`:;`.:`.i:::':::?;:i:`:;i'6iEiEiEi:iii:�:::::::;�;:iii:iE;EiEi:i:iEi:iEi:iii:ii�:
I Rea�mlwestmat(kossebL faTnca Gx 4i4.i[i:i�>:•?i:•'�':SQ.OV�:•:>'�'!:: �9Q•'�::�:�:�::: sihlm;i}:�:i'::51?bipy,Zi''::�: io:W�:�:•::•'•:•'•' Se;oD:�::�i'•'�:•'•:
J QmctiPro�ismfa ' �m 525,171.12 559,55319 5401,722.'72
K A�u1GPailCosu[I+l� 535582:2<�:•:•:•:•:•:•:�So:tq:•:•:�:�:•:•:�:� So:o:o:•:•:•:•:•:•:•:•:f69:635Ar•:•:•:•:•:�55%3i}53�:•:•:•:•:SQ.Qe:•:�:•:•:•:•:•:•:30:04•:•:•:•:•:•:•:•:�
L GRAPIDTOTAL(sumofUneKatrin] �7P[.Sfy.4f�t:•:•:•:•:�:
Bo:3.
SCHEDULE D:AVERAGE HOURS PER II�STALLATION
A Av c Haas Ih�xaed H�c IastaIlefiaa(aasch� ]�atia� I.50
B. Av Haas Prc-Waed H�e Io9allelim(attach m I�atia� 0.75
C. Av }Iavs Additianal Cmocction ffitallatim at Tune�f'LriCil I�allalim(�ifarh m l�ati O.SO �
D. Av Noms Additimal Co�c�tim I�llarioa e Svsiallatim(madt� ]maria� 0.75
E Otha Imvlladom ➢� ):
It�I.( � �)Rclocate OutJU
. Av Ha¢s lastillsflm atta[�m i ]mti ' � � � 0.75 - � � . . . . � .. . .
R�3.( ' ) de Nm-Addrasable
Av Hmas a 5idallelim(atlach m ]mtbc� 0.50
D�3.( � )
Av Hwrs ffilalladm(atlacLm Imtitian) ..
FCC F�1203
�3 Apnl 194/
.. . ... _ . _
. _ _.. . . ._ . _. ._: . . . ...
. . . . �. .
. , . , � ,
� .-. . �
. Fcdail Ca�nti�m C�ssim Apptoved by:OMB 3060-0592
Wsshv�¢m D.C.20551 D�aes:NS9N1
� N'OAKSHEET FOR CAI.CU(dTD�C PERAIITTED E [JIPMFNf AND A57ALLATION CfIA1tGFS
STEP A. S��e Cb
� t. 'fo�l rtilCostsdimta➢�timmGM�emott ScL�AileA.Bmcl SIbi5B3�.5667:•:•:•:
2. Taal A�al for FmuDaIIm md bl�mmce SrLeBilc&Bnx 1 SJ.214630.8300:•:�:
7. Taul ' Cossmd faffiLlLtmmdM�atmmce ' I+l�e7. 57.679.ZM;3:d'•:•:•:�
1. Qtti�a md ImtaWUm Pac (utad�m Imada�. 0.2954
S. Amud Q�4�a Mam�ce md 1rntaD�lim Cons,flc ' Costs d Leued ' 3 a LIDe 4 t1�0E7.U17.1:1.'�'.•.•
6. Tatil Labat Havs tar Ma�mmcc md ffita0atim d Q�srmc md Smica(anacb 'o� 33.393.79
7. Haa1 Smicc (f�(l.roes/Lmt� i14.621C':•:•:•:•:•:•:
METHOD OF SILLCHG FOR LNSTALl.ATIONS(plsa�n'i'In Ne apprvpria4 boa)
htcalhGms billcd by t6c hac ba.ud m th HSC alwLlsd'm L'me 7.
i mq�atimc blled u a�dad c6cge.
STEP 6 lacl�ll�tbn auYe
8. lJaEamHSCfv�D'mtallitims ffromStcp I�Imc'n .t:•:•:•:•:•:•:•:•:•:�:
OR
9. Av CLeee fa im�ilim
a Um�axd H�e laadl�m
........................
eI.HSC � � 19.Q3}q•;•.•.•.�.•.�i�i�ii;i;i;i:=i�i�i�:`•i: .
d.AvctageHaaspaUuw'acdHc�chafa➢atim(ScBcBileD.L'me� IS:•.�.�.'.'.'.�.'.•.'[�i;i'i;i;i:i�i�i��;i�i�
a;.�go pu um�vca x�e mstalt,8an(.1 x.Zl S�v;�isz•;�:�:�:�:�:�
b.Prc-w'acd H�c 1nanDatim
bt.rtsc[I-� 14.6i34•:•:•:•:•:•: :::::::::::::::�:;:::::;
�2.Avaxge Haas pa Prc-w'asd Hmc IaCalhtim(ScLcAilc D.1.IDC B) .75.'.•.'.'.'.'.•.•.':�'�:�:�i:i=i:i:i�i;:::�
.............�.-..............�
b3.Chagc pc Prc-warA H�c ln4alletion @I x 62] SII:Y}16�:�:�:�:�:�:�
c.Ad�tim�t C�ecum lacall�lim a Time of Ivibil ImtaDabm �
........... ............
c1.H5C ine 19.6234'r.•.'.•.•r::;.:L:__;_;.;._,;?>:? .
c2.AvaagcHaaspaAddiumalC�cctiamt�alletlmatT�eRlaiLla4ill.[S[L�hdeD.I.meCj :SQ•:•:•.�i:•:•:•:<i�i�i�i�i�'E�°.�i"i�i�
c3.(.L�gc pa Adm2iaml C�ectian Iarialletiaa rt T�e d Imtia!ImL�m[tl x c2� 's4.a�ii•:•:•:•:•:•:�:�
d Additiomal C�ccriw 7¢qalluim ' S Imtallsum
dl.}6C ' S19:6134:•:•:•:•:•:•:::::::::::::::::::::�::;
� � dl.AvicegcHamspaAddiliomlCo�ecti�5sstaDaflonRcqimmgStpvuelmta�ationl5ficdilcD.LroeD] :1S•:•:•:•:•:•:•:•:•:i�i�i�i�i�:�i�i�i�i�i�i' . . . � .
� d3.CL�gepcAddidmdC�etti�ffi1a➢alimRapt'vaigSepavte]m2ilLOm�[d1xd2] .. . . � � � T}4:7�Ii6.•.•.�.•..:.. � � � ... . � � �
e.Uhr IavalLti�(AS a5 W in SrhBile D.Lroe�: �
c1.HSC me 19L214:�:•:�:�:�:�::�:�:�:�:�:�:�:�:�;�:�:�
c2.AvaageHamspalosaWtimat'll�l [ScheBileD.L'me5tsml� OS'.�i.�.•.•.•ii.i;:;:;:;:;i;:;i;i;::i�i:
......... .
c3.CLegeprriaazllaumdacm 1[et xex] � ita�.}I?b:�:�:•:�:•:�:
W.HSC ' 19L234.'.•.'.•:•.•.:�:�:�:�:�:�:�:�:�:�:�:�
d.AvcagcHaaspaloAiDUimdIIem3[S�LedoleD.LIDeEIl�3J �:SO'.�.�.•.•.�.�i.�.i;,;,;i;.�`,�i[i;;;i;i?
e6.ChvgepalffitDaSmdR�2[ebxe5] ........... S9;Sli7}:�:�:�i:�:�:
e7.H5C ' f'9:6214:•:�:•:•:•:•:::::::::::::::::::::::::
c8.Avmgr Havs pa Iaasllatlrm d ll�](SCbedule D.Lme F.Cem 3] �:06':�:•:•:•i:•:•:•:i�i�i�i�i�i�`i�i�i`;i;
........... ...�.�.�.�.�.�...�.�..
c9.Ci�ge pa h�3eDatim dd�3[e7 x e8) 50.00 i i.�.�r.�.'.•.
�� �
i ��
FCC F�I205
p�, Apnl]99! .
. . _. .._:i:,-,.�..:'�-.'.. . ..�:.. ... . ._._. .� ...:.� . �. . �� . . . . � ' . .. .. .�'. .. . . _ .. , � . � . . .
. . .. . .. .. . ... .. ... .. .. .. �_ � .. . . _ �. . �. . •..-._
G
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Fedv�l C��wrims Ca�tam
P'a�aq D.C.20551 . APPm�ed bY•OMB J060-0592
6�rtes:NS9/94
� S7FP C mayn fa Inxd Nrmo�n a b c
(Calmlde for d� dlRe�ml 1 Remote 1 X�ote 2 R�ote 1
10. ToulMam[mmrdSmittHam ' coh�S�S�e8deGl�eS 28,7:':•:�:•:.;.::;:;.;U:.:.:::.:.:::::.•:•:;:9;:•.;.;:;.;:•::.;.;.;:
� ll. HSC ' it96f30:•:':•i.•:�:319:6I3d•:•:•:ti•:•:'319:b£31•:•:•:':-:•:'
• 12. TahlMlmr�cNSatiittCoA ' IOxLrocll SS61.19}:C•:•.•.•:•.50:00':•:•}:�:�:•i.�50.00'�'�'�'.'�'.'�'.'
I3. A�al ' Costs � tolemBumSdieBdeC.Lroc 535382:2f•:•:�:•:•:•S0:0Di:•:•:�:•'•:•:�:f4.Q0i:•:•:•.:.�..
1�. TaulCosldRemale ' llal.mell tJ6,1.1S:d1•:�:C•:-:�S�:CUr:•:•:•:•:•:•:�:5�.00:•:•:�:�r:{ti•:
15. M�cdlSmsmSmice � mh�&rmScLeBileC.I.me i8'{3'�'�'�'�'�'�'�'�'0'�'�'�'�'�'�'�'�'�'�'�G'�'�'�'�'�'�'�'�'�'�'-
16. UuitCost�I.roel4/Lme15J 57.9957}iiiii:�:SO:OQ•:•:•}i:•:•:•:�SD.DO�:•i:•:�:�:C•:�
tz r��Pctamn�t.roe�d�iz» foacc3>:•:•:•:•:•:•:so:oo::.>:.:•:•:•:�:�so.00;:�>:.:�:•:<•:
STFP D.(huqa for kueE�aveta 8oia a b c
(Glat�le fa ndi dlffeml� ) Cm�•cnc I Cmvcnc] Cmvala 3
18. ToulM�ce/Sa'��aHaaa � m�mGamSdrc3ileC.LmeB ui:'sia:�:�:•:•:•:•:•:b9oa:az:•:•:•:•:•:-:�d•:�:•:•:•:•:•:•:�:•:•
........................ ...........
19. }ISC � SI9.�}N�.•:•.•:•.•��519.6234.•�'.•.'�•i.S{9,6334.•�•.•.•:•.•.
10. ioc,ll.f�c�ce5ccvicccost t.roc 18x�s 34.691DSC�:•:C•:�i St35.d9b�9•:•:�:�:�:Sdde::�:�:•:�:�:•:•:
71. Am�at 'dilCosts ' roh�fremS�c3ileGLroe M9�6SS102'.�i.•.•.'SS%.31t.83'.•.•.•:'.Sp.tjp.�i.�.i•.•.•.•.
22. TaulCoaoCCa¢vata ' 20+L'mell i71:746:66:•i:�:�:�:373:191632:•:�:•:•iSDDO�i:•:•:•:i•:•:�
zs. r��bca[o�smsavice cou�urmsceea�lec.i.me ��ii�:•:�:�:•:�:�:•:�:isv9i�:�:•::�:�:�:�:�e:•:•:•:•:•:•:•:•:�:�:•
2�. IlffiCost[L'meI71Lme13] S9A392.•.•i.•ii.•.S38.S309'.•.•.�.�.•:�SO.OD'•'•'•'•'•'•'�'-'
25. R�tepaMa�h[L'mci4/p2)1 3d:98'S8�:•:{•:�:�:•:�il:ild9:-.�.•.•:•:•.•:Sd6B:•:•:•:�:•:C•.�:
STFP E(T (or OfM�r I.eued ul t
26. TNilMamtmmccJSm�ttHa¢s ' coL�frcmmS�cAilcC.L'meB 0'.•.•.�.•.•.•.•.•.�.•.
37. }L5C me 519:623(�ii:•:•i:�
28. TailMam�occ5m3ceCost ' 26xLinel sp.9p�.�.•.•:�.•.•.•.•
79. A�aIC ' Costs ' co�G�ScheAileC.I�e SO;OPi.•.�.•i:�.•.•.
30. TdilCostd � 28aL'me29 SO.OD.�.'.�.'.'.�.•.'.
31. 15�bad13slsmSa-vice[Cmc " coh�fr�Schc�leC.L'me S7YS5�'�'�'�'�'�'.'.•.
31. Uoh Cost(L'me J0lLme 31] fp.pp�:.:....:.::..:.:.
3J. RntcpaMa�h(L'me37/(12)] S9.OU'.•.•i.•.�.•.�.�
I��THOD OF BILLINC FOR QiANG1NG SFRVICE TIERS OR EQUIPMFNT�pla¢an"i"N Ihe appnpAale DozJ
u�N�al(�ugc(Haa the ao�l cLagc m L'me 34)
u a UnA'�Hwr3y Savice @mge
u m Avmige Q�cge(Fac the Avaag Hams fQ�Smice]Yaz m f.roe 36b.)
� SI'EP F.U for U Smi¢'I�s or d l� . . . � . . . . � . � . .
34. N�al fa ' Savice Tias
ff w use m ' uale d�La Lce m'x"m�Le box at tLe ' -
OR
35. S7��Haaf Savice �::•:{•.�ii:,:..:.
OR
36. Av c fa ' Scvitt Tias
36t.HSC roe 514.623¢�.�.•:�:�'•.�::�:::::::::::::::::�:::
36b.Avaage Haas w@e�gc Sccvice'15as 0.50
sco.a�•��rQ�se.�i«r���sc.x�sa,] s?.a�}7�: .:.::.:
� �
'I
p�S FCC Ft�1205
A}nl 1991
. � . .
.
, �. .. • ,
Fedc�l C�aaiao�Ca�SSm Apprevedby:OMB 3060-0592
� R'a�aq D.C.20554 H�crs;NS9ry1
, WORKSFff Ei FOR GLCUTAT'ING T07AL E W'Aff.N7 AND INSTALLATION COSTS
!. Toh! CostsdhmaDacmmdr•+.:�•,a•r• Sc4eAilt�Boxl - S�b2583�Sf•:•:•:•:•.
5� z. ra,l�nm.t tar�aaanaam.oat.t.iocmmce s�eedeasmc? i;.3ic.czass•:•:•:•:
l. 7da1 Amid 'ail Cosu d Imuilabm md Maidmmce ' 1+I�e 2 S?.699.TM:3C:�:•:•:�
1. Q.riama md Imta]Itum P (ut� 'W.
S. Anmil(Ya�c Mairi�mccmd�sh]LtimCosts. � CostcdLcascd t0.96'•'•'�'•'•'•'�'•'
3xL'med
6. Taal C ' Coas d Lo.ud Q��c S�LcBile C.Boz 3 5701,5lY.19':•:•:•r.
7. AvmilQuxamer mdlnaalLtimCosts ' SaL'me S70}.SSff,i9:•:�:•:•:�
8. Prrc AllooEm to frmdasc Arn(see mm4uaims)
9. AlloatedA�n1 mdl�IlitimCoa ' 7x1'me8 f0.06'r:•:•:•.•:•:•:•
10. MaaLl mdlmvWfimCo4 ' 9/(II SDUO.•.•.�.•.•.•i.�.
�l. N��bc d BLdc SLDsmbas m F�se
11. Mo�hl mdlmta➢uiaaCoA Sil�saiba ' 10/Lroell MI�iVtOi�'�'�'.'.'.•.•.
1). I�l�lim A' FaGQ Sce]vstmcGaas
11. A' edMa�hi mdlnsallsrimCost S�bsmba L'mcl]xL'me13 i�DLV/01•.•.•.•.•.•.•.�
�6 FCC�1299t
.. _ . _ . . . . . . . . . .
. . ... _ . . .�
� , . ,
� _.. _.__ � ,
Fedc�l Ca��atms Ca�sdm Ap�mved by.OMB 306P0592
' A'a�ay D.C.20551 H�esc 629/91
SUFAfARY SCf�DULE
(Lrtmt d t uM Inslillatlon 1L1n P�ated Apml
l. tQ Cable Savitt Lo�allatims
� aHaal Ruc .iL'me ��i�:�:•:•:•?iiii. �
b.Av Imta➢itim
1.1o9aD�imdl7nn'6edH�cs S B.L'me9a7 29.5351':•:•:•:•:•:' 35.75
2.in9iliatimdArwccdH�ez�S B.I�e9b3 � 11f117b•'•:•:•:•'�:• 1'1.87
3.ImtaDatimdAddmmdComectimtYT�edLcliil�stall�tm H,L'mc9c3 f9;8lja�'�'�'•;•'•;•: S.%
4.ffiIaWdmdAd�uamlCamcctims cI¢4a� St B.Lroc9d3 3I4�71i6�.�.�.•.•.�.� 17.67
S.Omc Imta➢aoms( � ) St B.L'mes 9c3.9e6.9c9 �
i 14.4i�:•ii:•:•i:� v.87
b. 9.81.'.'.'.•i.•.•.•: 11.91
c. �.00'.•.•.•.•:'.'.•.�
2. M far Lease dR�te Ca�ok C,L'me 17,coA�s�s
Ti�atc Codrol 1: �11.77'.•.�...;.;.•.,.: 0.17
R�ote Cootrol 2: .pQ�;�;�;�:�;•:�;•;�
Rrmac Ca�rol 1: SO;QO:•ii:•}:!•:�:
3. Ma�hl fQ Lase d C�vma Boxa St D.L'me 33,coL��t
Camvat¢BoxT 1: 0:79:':-:�:�:•:•ii: 0.99
C�vataBoz 3: �:2(':•.�:�:�i.•.C� ]3S
CmvmaBox 3: '0.00:•:':':':'r:•r:
4. MmtN fa Leue d qha (S £L'mc JJ
OtLrr ( '•) ..�:,:...:�:�.�:�::
5. (3a fQ ' TiasC� )� F.L'me34.35a3& 57,8l.�.•.•.•.•.•.�.�. 11.75
LABOR COST AND POLICY CHM7GES
Indiate yaa mswa to t6c follow¢g tka questims by placmg cn X m thc�xvtriate boz
1.Have yaa mch�dod ihe]aba wsu 4ssodrtcd wittt s�bsmba ab]o Aops m ya�chaga fa�oal'mus➢atim7
YE5
NO � . � . . . . .. � .. . �
z.���y���u,��a aY��us.�;.��a..vn�ta hn�<<t�n
rFs
NO
3.E you Lave 51ed tlus!o�bcfore,have Y��B�mY P�u�Y.ag,cost accaa[rog a cost a➢ontim tLet�ua m roveau m thc costs
mclodcd'm�6e crmQuatim deqaiEaea md maaflatiams�vges?
YtS(Yw mut uucfi t fnll e�lmati�
NO
CERTTFICATION S7'ATET[ENT
WII,LFCJL FALSE S7ATQ.ffNIS MADE ON Tfffi FORM ARE PUNLSHASLE BY FL.'E AMNOR R.�ARISONA¢7:T
(U.S.CODE 7TII.E I8,SECTfON 1001),AND/OA FORfE]i1JRE(U.S.COD$7'7I7.E 47,SF7CI70N 503).
I cat'ffy thet tLe sn�mts m�de m this farm ae tne md c�ea W mc best d'my)mw��ledge md belid,md arc mde m good Ctith
N�e dme Cable Opasta Si�ati¢e
Date Title
FCC Fo�1205
P�� Apil 199/
� ,
, , . •
- .
r ,-� � .
��
�
FCC FORM 1205
STEP D: AVERAGE HOURS PER INSTALLATION
CONTINUED
Item 4.(Spacify)Upgade/Drnsngade Addressable
Avaage Houts pa Inscallation TI/A
Item 5.(Specify)Conned VCR Initial
Average Hours p�Ins[aliation �.25
Item 6.(Spacify)Conned VCR Separate
Avaage Hoius pa Installation 0.$
FCC FORM 1205
STEP B: INSTAI..LATION CHARGE
CONTINUED
xsc N/A
Average Hours pa Installation of Itan 4 N/A
Charge per Inctallation of Item 4 $2.QQQQ
xsc 19.6234 ' -
Average Hours pa Installation of Itesn 5 0.25
Charge per Installatiat of Itan 5 4.9059
xsc 19.6234
Average Hotus per Installation of Item 6 Q.$
C:harge pa Installalion of Item 6 9.8117
Page 8