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HomeMy WebLinkAboutResolution 1998-042 RESOLUTION 98-42 A RESOLUTION ADOPTING THE MAXIMUM PERMITTED RATES FOR BASIC CABLE AND INSTALLATION OF CABLE EQUIPMENT AND SERVICES FOR MARCUS CABLE WHEREAS, The City of North Richland Hills ("City") is certified as a franchising authority to regulate basic tier cable service, equipment, installation, and certain other rates pursuant to the Cable Act of 1984, as amended, and rules and regulations of the Federal Communications Commission ("FCC"); and WHEREAS, on May 29, 1998, Marcus Cable Associates ("Marcus") filed FCC Form 1240 with the City, which establishes a maximum basic cable service rate of$10.73 per month for subscribers in the City for the period September 1, 1998 to August 31, 1999; and WHEREAS, on July 15, 1998, Marcus Cable Associates ("Marcus") filed FCC Form 1205 with the City, which establishes the following maximum permitted rates: (i) a service charge of $27.49 per hour for installation of equipment and services; (ii) a lease service charge of $0.18 per month for addressable remote control boxes; (iii) a lease rate of $1.43 per month for non-addressable converters; (iv) a lease rate of $3.80 per month for addressable converters; (v) a lease rate of $4.01 per month for addressable converters with navigational guides; and (vi) a nominal charge of $2.00 for changing service tiers; and WHEREAS, the City requested and received from Marcus supplemental information to justify its basic cable service rate request set forth in its Form 1240 filing and its equipment and service installation request set forth in its Form 1205 filing; and WHEREAS, the City retained C2 Consulting Services, Inc. ("Consultant"), which provides cable rate consulting services; which thoroughly reviewed Marcus' Form 1205 and Form 1240 filings; and which provided the City with a written report ("Report"), dated July 2, 1998, that outlined the Consultant's opinions and findings based on its review of Marcus' Form 1240 , Form 1205, and supplemental information supplied by Marcus; and WHEREAS, the City provided Marcus with a copy of the Consultant's Report and gave Marcus the opportunity to respond in writing to the Consultants opinions and findings, and, as of September 8, 1998, Marcus had not provided the City with any such written response; and WHEREAS, the Consultant has determined that under federal law and FCC rules and regulations that the maximum permitted rate for Marcus' basic cable service to - 1 - subscribers in the City should by $10.70 per month for the period September 1, 1998 to August 31, 1999; WHEREAS, the Consultant has determined that under federal law and FCC rules and regulations that the maximum permitted rates for the services and equipment indicated in Marcus' Form 1205 filing are unreasonable and should instead be as follows: (i) a service charge of $26.81 per hour for installation of equipment and services; (ii) a lease rate of $0.18 per month for addressable remote control boxes; (iii) a lease rate of $1.19 per month for non-addressable converters; (iv) a lease rate of $3.22 per month for addressable converters; (v) a lease rate of $3.43 per month for addressable converters with navigational guides; and (vi) a nominal charge of $2.00 for changing service tiers; and WHEREAS, Marcus provides an optional wire maintenance program for subscribers in the City and assesses a fee of $0.99 per month for that program; and WHEREAS, the Consultant has determined that, under FCC rules, regulations, and orders, fees for programs such as Marcus' optional wire maintenance program are subject to rate regulation by municipal franchising authorities and that as a regulated rate, Marcus' fee for its optional wire maintenance program should be $0.06 per month; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS HEREBY RESOLVES: THAT the maximum permitted rate for basic tier cable service as calculated by Marcus in its Form 1205 and Form 1240 filings is unreasonable; and THAT for the period September 1, 1998 until August 31, 1999, in accordance with federal law, current FCC rules and regulations, and the Consultant's Report and calculations, the City hereby establishes for Marcus a maximum permitted rate of $10.70 per month for basic cable service to subscribers in the City; and THAT for the period September 1, 1998 until August 31, 1999, in accordance with federal law, current FCC rules and regulations, and the Consultant's Report and calculations, the City here by establishes for Marcus the following maximum permitted rates: BASIC CABLE SERVICE $10.70 PER MONTH SERVICE CHARGE FOR INSTAllATION OF SERVICES AND EQUIPMENT: $26.81 PER HOUR lEASE RATE FOR ADDRESSABLE REMOTE CONTROL BOXES: $0.18 PER MONTH lEASE RATE FOR NON-ADDRESSABLE CONVERTERS: $1.19 PER MONTH - 2 - LEASE RATE FOR ADDRESSABLE CONVERTOERS: $3.22 PER MONTH LEASE RATE FOR ADDRESSABLE CONVERTERS WITH NAVIGATIONAL GUIDES: $3.43 PER MONTH NOMINAL CHARGE FOR CHANGING OF SERVICE TIERS: $2.00 OPTIONAL WIRE MAINTENANCE PROGRAM FEE: $0.06 PER MONTH THAT in the adoption of this Resolution, the City does not approve or acquiesce in any manner to cost date and/or methodologies used by Marcus to support its basic cable service rate request in its Form 1240 and Form 1205 filings; and THA T in the adoption of the Resolution, the City does not waive any rights to Which it may be entitled PASSED AND APPROVED this, the 14th day of September, 1998. ATTEST: Patricia Hutson, City Secretary B~¿?áóv¿¡a'~ Approved as to content; James D. aint, Assistant to the City Manager - 3 -