Ordinance 1994-47
ORDINANCE NO.
qJ/~ 11
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, MAKING CERTAIN FINDINGS AND
WITH REGARD TO THE CHARGES AND FEES OF TCI CABLEVISION; AND ISSUING
ORDERS IN ACCORDANCE WITH SUCH FINDINGS AND CONCLUSIONS PURSUANT
TO THE CABLE CONSUMER PROTECTION AND COMPETITION ACT OF 1992,
REPEALING ALL CONFLICTING ORDINANCES; CONTAINING A SEVERABILITY CLAUSE;
AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City of Wylie, Texas franchises cable television service for the
benefit of its citizens; and,
WHEREAS, the City Council has caused appropriate action to be taken by the City
to regulate and reduce the charges and fees which the cable provider charges the
citizens of the City; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, TEXAS, as follows:
SECTION 1.
FINDINGS
(1) The City is the Grantor of a Franchise Ordinance executed on or about
October 23, 1989, by and between the City of Wylie and Communications Services, Inc.
("TCn.
(2) In accordance with applicable provisions of the Cable Consumer Protection
and Competition Act of 1992 (hereinafter the "Cable Act") and rules adopted by the
Federal Communications Commission ("FCCl, the City has undertaken all appropriate
procedural steps to regulate the basic cable service tier and related equipment.
(3) In accordance with applicable FCC regulations, on or about September 28,
1993, the City filed FCC Form 328 - Certification of Franchising Authority to Regulate
Basic Cable Service Rates and Initial Finding of Lack of Effective Competition - with the
FCC.
(4) In accordance with applicable FCC regulations, on or about November 9,
1993, the City passed and adopted an Ordinance providing for the regulation of rates
charged by cable television operators within the City for the basic service tier and related
equipment and installation charges and providing for a reasonable opportunity for
interested parties to express views concerning basic cable regulation.
(5) On or about February 11, 1994, the City received TCI' s FCC Form 393
which is attached and made a part of this Ordinance as Exhibit A.
(6) The City engaged the service of First Southwest Company, to provide
assistance to the City for review of TCI's FCC Form 393.
(7) Pursuant to FCC regulations, on or about February 24, 1994, the City sent
a letter notifying TCI that the time period for the City's review of FCC Form 393 would
be extended for an additional ninety (90) day period.
(8) The City, with the assistance of First Southwest Company, on or about
March 11, 1994, sent a letter requesting additional information to document that the
cable rates were in accord with the FCC standards. The City's time period for review
of FCC Form 393 was suspended pending the receipt of this additional information,
pursuant to FCC rules and regulations.
(9) On or about May 17, 1994, TCI responded to First Southwest Company and
the City, which response is attached and made a part of this Ordinance as Exhibit B.
(10) First Southwest Company issued a Summary of Findings report dated May
20, 1994, identifying certain issues requiring TCI's response before a final report could
be prepared, which report is attached and made a part of this Ordinance as Exhibit C.
(11) On or about June 27, 1994, TCI responded to First Southwest Company
and the City, which response is attached and made a part of this Ordinance as Exhibit
D. TCI's response included a modified filing of FCC Form 393.
(12) On or about July 20, 1994, a final report was prepared for the City by First
Southwest Company, which report is attached hereto and made a part of this Ordinance
as Exhibit E.
(13) The City conducted a meeting open to the public on May 24, 1994, to
ensure that all interested parties had ample opportunity to present information to the
City.
(14) Based upon the information received from TCI, information received at the
public meetings of the City, and all reports and recommendations from First Southwest
Company, the City makes the below additional Findings:
a. The FCC Form 393 filed by TCI did not provide all of the required
explanations to certain line items addressed within the form.
b. The Form 393 submitted to the City by TCI was not an official FCC Form
393 or a photocopy, but rather, an internally generated report.
c. The Hourly Service charge used to compute equipment and installation
charges was not calculated properly.
d. TCI did not provide the sufficient documentation required to support their
determination the 30% of the total labor hours available for maintenance and installation
of customer equipment and service were used for converter and remote maintenance.
e. TCI did not provide adequate supporting documentation for the average
hours per installation used in computing installation charges.
(15) The City must act upon the pending rate request consistent with current
FCC rate rules and regulations.
SECTION 2.
CONCLUSIONS
(1) TCI's request for cable rate approval for the maximum permitted rate for
basic service tier (exclusive of any franchise fee) of $9.81 ($0.613 maximum per channel
rate) is granted.
(2) TCI's request for cable rate approval for the maximum permitted charge for
hourly service (exclusive of any franchise fee) of $26.91 is denied.
(3) The City concludes that the maximum permitted charge for hourly service
shall be $25.00.
(4) The City concludes that the number of maintenance/service hours used in
determining maximum permitted charges for leased customer equipment shall be based
on .79% of total labor hours for maintenance and installation of customer equipment and
service. Therefore, the City has determined that the maximum permitted charges for
leased customer equipment shall be as follows: Remote - $0.21; Standard Converter -
$1.17; Addressable Converter - $2.81.
(5) The City has an obligation to timely act upon the pending rate application
consistent with now current FCC rules and regulations. However, if the FCC alters the
benchmark calculations resulting in a lower reasonable rate for Wylie subscribers, the
City has an obligation to area subscribers to reconsider the pending analysis consistent
with such changes the FCC may make in its regulations.
(6) The City hereby adopts and makes a part of this Ordinance all attachments
reference above.
SECTION 3.
ORDERS FOR ACTION
Based on the foregoing Findings and Conclusions, the City hereby enters the
following orders:
(1) Pursuant to current FCC regulations, from the date of the order and until
further order of the City, TCI shall be permitted to charge an initial rate for the basic
service tier of $9.81.
(2) Pursuant to current FCC regulations, from the date of the order and until
further order of the City, TCI shall be permitted to charge $25.00 as its hourly service
charge.
(3) Pursuant to current FCC regulations, from the date of the order and until
further order of the City, the maximum permitted charges for leased customer
equipment is as follows:
Remote: - $0.21; Standard Converter - $1.17; Addressable Converter - $2.81.
(4) TCI shall immediately undertake all necessary steps, in accordance with
applicable FCC regulations, to provide refunds to all subscribers based on the difference
between the old bundled rates and the sum of the new unbundled program service
charge(s) and the new unbundled equipment charge(sl, and any franchise fee assessed
thereon, which have been overcharged since September 1, 1993 as a result of the
difference between TCI's current equipment and installation charges and the permitted
equipment and installation charges. The refund liability includes interest computed at
applicable rates published by the Internal Revenue Service for tax refunds and additional
tax payments.
(5) TCI shall provide the City evidence that Orders 1, 2, 3, 4 and 5 have been
complied with and that all refunds have been properly made in accordance with the
Cable Act and applicable FCC regulations.
(6) This Ordinance shall not be reconsidered should any further analysis
pursuant to future FCC rules and regulations result in higher rates to subscribers, unless
such future FCC rules and regulations mandate that the City order such an upward
adjustment.
SECTION 4.
Should any paragraph, sentence, sub-division, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal or invalid the same shall not
affect the validity of this ordinance as a whole or any part or provision thereof, other than
the part or parts as declared to be invalid, illegal, or unconstitutional.
SECTION 5.
This ordinance shall be in full force and effect from and after its adoption by the
City Council and publication of its caption as the law and the City Charter provide in such
cases.
SECTION 6.
EFFECTIVE DATE
This Ordinance shall become effective immediately upon passage and publication as
required by Law.
DULY PASSED AND APPROVED this the
ATTEST:
MAR~~'/1!~
CITY SECRETARY
APPROVED:
STEVEN P. DEITER,
CITY ATTORNEY
day of
, 1994.
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