HomeMy WebLinkAboutResolution No. 99-33�
RESOLUTION NO. R9 9—3 3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, AUTHORIZING THE MAYOR TO EXECUTE
AND THE CITY SECRETARY TO ATTEST A SETTLEMENT
AGREEMENT BY AND BETWEEN SAID CITY AND TIME WARNER
COMMUNICATIONS, AT&T CABLE SERVICES, FORMERLY TCI-TKR
OF HOUSTON, INC., AND TEXAS CABLE PARTNERS, L.P., TO
RESOLVE ALL RATE PROCEEDINGS CURRENTLY PENDING BEFORE
THE FCC RELATING TO PREVIOUSLY ISSUED RATE ORDERS.
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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
STATE OF TEXAS:
Section 1. That the Mayor and City Secretary be, and they are hereby, authorized
and directed to execute and attest, respectively, a Settlement Agreement by and between the
City and Time Warner Communications, AT&T Cable Services, formerly TCI-TKR of
Houston, Inc., and Texas Cable Partners, L.P., to resolve all rate proceedings currently
pending before the FCC relating to previously issued rate orders. A copy of such Settlement
Agreement is attached hereto as Exhibit "A" and made a part hereof for all purposes.
PASSED, APPROVED, AND RESOLVED this lst day of November , 1999.
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Harold L. Whitaker, Mayor
ATTEST:
C
Deloris McKenzi , Cit Secretary
EXHIBI'I' "A"
SETTLEMENT AGREEMENT
This Settlement Agreement is made and entered into by and between the City of
Friendswood, Texas (the "City"), Time Warner Communications ("TWC"), AT&T Cable
Services, formerly TCI-TKR of Houston, Inc. ("TCI"), and Texas Cable Parmers, L.P.
("TCP").
WHEREAS, the City is certified to regulate basic cable service rates and equipment
and installation rates pursuant to the 1992 Cable Act and Federal Communications
Commission ("FCC") rules; and
WHEREAS, in 1995, 1996, 1997, and 1998, TCI filed its proposed schedule of rates
for the City's review and the City found and determined that the methodology used by TCI to
develop such rates were not in compliance with FCC rules and regulations and, therefore,
rejected such rates as unreasonable and established reasonable rates; and
WHEREAS, each year in which the City rejected TCI's proposed schedule of rates,
TCI appealed the City's decision to the FCC, arguing that its rates were calculated
appropriately; and
WHEREAS, such appeals are still pending before the FCC; and
WHEREAS, to serve customer interests in a more timely manner and to reduce the
costs and administrative burden associated with the FCC's appeal process, TCI has proposed a
one-time refund to current cable subscribers in exchange for the City entering into this
Agreement to settle and resolve all rate proceedings currently pending before the FCC relating
to previously issued rate orders; and
WHEREAS, the City Council has reviewed the refund proposed by TCI and the
recommendation of its rate consultant, C2 Consulting Services, Inc., and has found and
determined that it is in the best interest of the City and the cable subscribers within the City to
accept the proposed refund and to settle all rate proceedings currently pending before the FCC
relating to previously issued rate orders;
Agreement
NOW, THEREFORE, for and in consideration of the mutual promises and agreements
contained herein, including the recitals set forth above, the parties hereto agree as follows:
1. TCI shall provide a one-time credit in the amount of$51,557.35 to basic service
customers within the City. To calculate the one-time credit amount for each customer's bill,
the total refund amount shall be divided by the most recent number of basic service customers.
The credit shall be paid to current TWC customers within sixty (60) days of final approval of
this Agreement by the City Council of the City. TWC shall implement the refund and credit.
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2. Within thirty (30) days of City Council approval of this Agreement, the City,
TCI, , will jointly withdraw all rate proceedings related to the City's previous rate
orders currently pending before the FCC. TCI shall draft the joint withdrawal motion and
forward it to the City for review and approval. It is understood and agreed that, upon
payment of the refunds in accardance with paragraph 1 of this Agreement, the parties are
compromising, settling, and resolving all rate order appeals filed by TCI and pending before
the FCC on the date of this Agreement. It is further understood and agreed that nothing
contained herein shall prejudice the City's right to review and reject, if found to be
unreasonable in accordance with FCC rules, regulations, and approved methodologies, any
and all proposed schedules of rates submitted subsequent to 1998 rate filings on a prospective
basis. Specifically, the City hereby reserves the right to assert any new or previously asserted
position regarding the methodologies used to calculate basic cable, installation, and/or
equipment rates.
3. TWC and the City shall draft a joint press release that is agreeable to both
parties announcing the refunds to subscribers and the settlement of pending rate proceedings.
4. The parties understand and agree that any information or data utilized to
negotiate this settlement will not be prejudicial to future substantive positions taken by either
party.
5. This Agreement may be executed in several counterparts, each of which shall
constitute an original.
6. This Settlement Agreement shall be effective upon execution by all parties.
ATTEST: CITY OF FRIENDSWOOD, TEXAS
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Deloris McKenzi , City ecretary Harold L. Whitaker, Mayor
TIME WARNER COMMLINICATIONS
. �
' imberl Maki
Vice Pr sident, Public Affairs
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AT&T CABLE SERVICES, formerly
TCI-TKR OF HOUSTON, INC.
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Richard D. Treich
Senior Vice President
Regulatory Policy and Planning
AT&T Broadband and Internet Services
TEXAS CABLE PARTNERS, L.P.
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