HomeMy WebLinkAboutOrdinance No. 95-19 ORDINANCE NO. 95-19
AN ORDINANCE ESTABLISHING THE PER SUBSCRIBER BASIC
SERVICE R.ATE REFUND DUE TO CABLE SUBSCRIBERS FOR THE
PERIOD COMI��NCING ON SEPTEMBER 1, 1993 AND ENDING ON JULY
14, 1994; ORDERING TCI TKR OF HOUSTON, 1NC., DB/A TCI
CABLEVISION OF HOUSTON TO REFUND THE PER SUBSCRIBER
AMOLJNT TO CABLE SUBSCRIBERS WITH INTEREST LTNTIL PAID;
AND SETTING FORTH OTHER PROVISIONS RELATED THERETO.
* * * * * *
WHEREAS, the City of Friendswood (the "City") is certified to regulate basic cable
service rates pursuant to the 1992 Cable Act (the "Act") and Federal Communications
Commission("FCC") Rules; and
WHEREAS, by Resolution R93-40 (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 January 11, 1994, TCI TKR of Houston, Inc. DB/A TCI
Cablevision of Houston ("TCI") submitted its package of documents to justify the basic service
cable rates and associated equipment and installation rates within the City; and
WHEREAS, by Resolution No. R94-3 the City Council extended the period to review the
documents for ninety (90) days beyond the initial thirty (30) day review period; and
WHEREAS, prior to the expiration of the extended review period and at the request of
TCI, the City Council enacted Resolution No. R94-19 to allow TCI additional time to refile a new
revised form 393; and
WHEREAS, on or about June 17, 1994, TCI submitted its amended 393 filing to the City;
and
WHEREAS, by Ordinance No. 94-10 the City Council ordered a basic service rate refund
to cable subscribers of the difference between the permitted basic service rate and the actual
monthly basic service charge for the time period commencing on September 1, 1993 and ending
on July 14, 1994, plus interest accrued during the refund period, and ordered a refund to
subscribers of the difference between the permitted rate and the actual rate charged for
installation, maintenance and repair of equipment to the e�ent the actual charges exceeded the
permitted rate for the time period commencing on September l, 1993 and ending on July 14,
1994, plus interest accrued during the refund period; and
Friendswood/393 Refund
� " �
WHEREAS, on or about March 24, 1995, TCI submitted to the City its analysis and
calculations of the per subscriber amount of such refund and a proposed plan for implementing the
refund required by Ordinance No. 94-10; and
WHEREAS, on or about May 22, 1995, TCI submitted to the City its revised analysis and
calculations of the per subscriber amount of such refund and a proposed plan for implementing the
refund required by Ordinance No. 94-10; and
WHEREAS, at the City's request, Reed-Stowe & Co., Inc., has reviewed TCI's refund
analyses and calculations and determined that the methodology used by TCI to calculate the per
subscriber refund amount did not comply with FCC rules and regulations and recent decisions
rendered by the FCC and Reed-Stowe & Co., Inc., has submitted an alternative analysis and
calculations attached as Exhibit"A"; and
Wf-�REAS, a public hearing was held to hear public comments on the refund analysis and
calculations and the proposed plan for implementing the refund; and
WHEREAS, the City Council has now concluded its review of TCI's revised refund
analysis and calculations and proposed plan for implementing such refund and made certain
determinations; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FR�EENDSWOOD,
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 TCI is hereby ordered to refund to basic cable subscribers the total refund
liability as computed by Reed-Stowe and as shown on the attached Exhibit "A" within forty-five
(45) days of the adoption of this Ordinance. The amount per basic cable subscriber is estimated
to be $7.22 and was derived by using the FCC rules and regulations and recent decisions rendered
by the FCC and includes interest calculated from September 1, 1993 through June 30, 1995. The
refund amount per basic cable subscriber was based upon the number of basic cable subscribers
during the period from September 1, 1993 through July 14, 1994. The amount of the estimated
per subscriber refund liability shall only change to the extent that the number of basic cable
subscribers within the Cities included in the computation of$7.22 differs at the time of remittance
from the number of basic cable subscribers during the period from September l, 1993 through
July 14, 1994. The refund amount takes into account all equipment basket overcharges and
offsets; therefore, equipment basket issues shall not be included in TCI's computation of any
refund ordered by the FCC in the expanded basic tier. TCI is further ordered to include additional
interest on the refund amount calculated in accordance with FCC regulations from July 1, 1995
until the date the refund is actually made. TCI is further ordered to furnish to the City, at the time
of remittance, a reconciliation of the difference between the estimated per subscriber refund
amount of$7.22 and the actual amount remitted to each basic cable subscriber.
Friendswood/393 Refund -2-
Section 3. 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 4. 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 5. The City Council of the City of Friendswood, Texas, does hereby declare that if
any section, subsection, paragraph, sentence, clause, phrase, word or portion of this Ordinance is
declared invalid or unconstitutional by a court of competent jurisdiction then, in such event, it
would have passed and ordained any and all remaining portions of this Ordinance without the
inclusion of that portion or portions which may be so found to be unconstitutional or invalid, and
declares that its intent is to make no portion of this Ordinance dependent upon the validity of any
other portion thereof, and all said remaining portions shall continue in full force and effect.
Section 6. 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 5th day of June , 1995.
PASSED, APPROVED, AND ADOPTED on second and final reading this lOth
day of July , 1995.
CITY OF FRIENDSWOOD, TEXAS
By. . y L��
Evelyn . Newman
Mayor
ATTEST:
By. • .
Deloris McKen ie, C
City Secretary
Friendswood/393 Refund -3-
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