HomeMy WebLinkAboutOrdinance No. 95-02 � . • F,.� � . ..
ORDINANCE N0. 95-2
AN ORDINANCE ESTABLISHING THE MAXIMUM PERMITTED PER
CHANNEL RATE FOR FCC FORM 1200, THE BASIC CABLE SERVICE
RATES OF TCI TKR OF IiOUSTON, INC. , D/B/A TCI CABLEVISION
OF HOUSTON, COMMENCING ON JULY 14, 1994 SUBJECT TO
CERTAIN CONDITIONS; ORDERING A BASIC SERVICE RATE
REFUND TO CABLE SUBSCRIBERS BACK TO JULY 14, 1994;
ALLOWING THE INSIDE WIRING PROGRAM SUBJECT TC FOTENTIAL
DISALLOWANCE AND REFUND; AND SETTING FORTH OTHER
PROVISIONS RELATED THERETO.
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WHEREAS, the Cable Television Consumer Protection and
Competition Act of 1992 and the Federal Communication Commission
regulations issued thereunder authorize municipalities to
regulate the basic service tier and associated equipment rates of
cable companies operating within municipalities; and
WHEREAS, the City of Friendswood applied to the Federal
Communication Commission ("FCC") for certification and was
approved to regulate the basic service tier and associated
equipment rates of cable companies operating within the City; and
WHEREAS, by Resolution No. R93-40 the City Council
established provisions regarding the re�ulation of basic service
cable rates; and
WHEREAS, on or about August 12, 1994, TCI TKR of Houston,
Inc. , d/b/a TCI Cablevision of Houston ("TCI") , filed with the
City of Friendswood its completed FCC Form 1200, which is its
package of documents to justify the basic service cable rates
being charged within the City; and
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WHEREAS, by Resolution No. R94-38 the City Council extended
the period to review the documents for an additional ninety (90)
days beyond the initial thirty (30) day review period; and
WHEREAS, by Resolution R94-46 the City Council entered its
accounting order authorizing TCI to charge the basic service
rates and inside wiring costs in its rate filing package
submitted to the City on or about August 12, 1994, all subject to
refund upon a decision by the City Council disapproving any
portion of the basic service rates and/or inside wiring program;
and
WHEREAS, the City Council has concluded its review of TCI's
rate package and made certain determinations; now therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE 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 subject to Section 3 hereof, $8.30 shall
constitute the maximum authorized rate per subscriber for basic
cable service permitted to be charged by TCI within the City.
This basic service cable rate was derived by using the formula
developed by the FCC adjusted for errors in the TCI rate package
filed on or about August 12, 1994. TCI is hereby ordered to
reduce its rate per subscriber in accordance with this Section.
Section 3. That Resolution R94-46 shall remain in effect
with respect to the programming costs used to compute the basic
Ordinance 95-2 Page 2
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service rate of $8.30. The City Council hereby finds and
determines that changes made by TCI to the programming costs are
wholly unsupported because of TCI`s refusal to allow the City to
review any supporting documentation. If at a later date it is
determined that the programming costs used to support the $8.30
basic service rate are unsubstantiated and/or should be
recalculated, the City reserves the right to recalculate the
basic service rate and establish a new basic service rate. In
such event TCI shall refund to subscribers the difference between
the $8.30 basic service rate and the new recalculated rate.
Section 4. That TCI is hereby ordered to refund to cable
subscribers the difference between the actual monthly basic
service charge of $8.33 and the contingently approved $8.30
monthly basic service rate. Within thirty (30) days of the
effective date of this Ordinance, TCI shall submit a plan for
such refund. The refund shall be completed no later than ninety
(90) days after the effective date of this Ordinance. The refund
shall be computed from July 14, 1994 to the date TCI physically
changes the basic service rate (within the required 90-day
period) .
Section 5. That the maximum permitted rate for the
inside wiring maintenance program shall be $0.018 per month in
the event that the FCC determines such program to be a regulated
service. This rate was derived by applying the FCC regulation
issued on May 3, 1993 in the Report and Order which requires that
the price of contracts with subscribers be based on the hourly
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service charge times the estimated average number of hours for
maintenance and repair. As such, the total price of the
contracts was based on the annual cost of $23.83 x 94 hours to
derive an average rate of $0.018 per month. TGI shall keep an
accurate account of all sums received by reason of its inside
wiring program until such time that the FCC determines the
regulated status of such charge. If the FCC later determines
that the inside wiring program is a regulated service, TCI shall
refund to subscribers the difference between the current charge
of $.49 per month and the $0.018 permitted charge per month from
the inception of the program (April 1994) .
Section 6. That in adopting this Ordi_nance, the City
Council 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. That the City Council of the City of
Friendswood, Texas, does hereby declare that if any section,
subsection, paragraph, sentence, clause, phrase, word, or portion
of this Ordinance is declared invalid or unconstitutional by a
court of competent jurisdiction then, in such an event, it would
have passed and ordained any and all remaining portions of this
Ordinance 95-2 Page 4
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Ordinance without the inclusion of that portion or portions which
may be so found to be unconstitutional or invalid, an.d declares
that its intent is to make no portion of this Ordinance dependent
upon the validity of any other portion thereof, and that all said
remaining portions shall continue in full force and effect.
Section 9. The City Secretary is hereby authorized and
directed to mail a copy of this Ordinance by certified mail to
TCI TKR of Houston, Inc.
PASSED AND APPROVED on first reading on the 23rd day of
January 1995.
PASSED, APPROVED, AND ADOPTED on second and final reading on
the 6th day of February 1995.
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Evelyn . Newm
Mayor
ATTEST:
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Deloris McKenzie, C
City Secretary
APPROVED AS TO FORM:
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J n F. Olson
City Attorney
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