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HomeMy WebLinkAboutResolution 1994-061 RESOLUTION NO. 94-61 WHEREAS, the City of North Richland Hills is certified to regulate basic cable service rates pursuant to the 1992 Cable Act and FCC rules; and WHEREAS, on September 12, 1994, the City of Fort Worth adopted Resolution 94-44, which tolled for 90 days the deadline for the City to establish Maximum Initial Permitted Cable Rates; and WHEREAS, the City's consultant for cable rate review, R.W. Beck and Associates, has recommended the City adopt certain Maximum Initial Permitted Rates for regulated basic and tier cable service, equipment, installation, and hourly service charges; and WHEREAS, the consultant's suggested Maximum Initial Permitted Rates are lower that the rates which Sammons Cable Services has been and is currently charging cable subscribers in the City of North Richland Hills; and WHEREAS, the City of North Richland Hills anticipates that Sammons Cable Services may appeal the City's adoption of such Maximum Initial Permitted Rates to the FCC in an effort to charge higher rates to cable subscribers in North Richland Hills; and WHEREAS, the City of North Richland Hills reserves the right to direct Sammons Cable Services to keep an accurate account of all sums it has received from or billed to North Richland Hills subscribers for basic and tier cable service, equipment, installation, and hourly service charges for (1) pursuant to FCC Form 393, the twelve (12) month period prior to the date of the City's approval of the Maximum Permitted Rates for regulated basic and tier cable service, equipment, installation, and hourly service charges, and (2) pursuant to FCC Form 1200, for any period of time which lapses between the date of such approval and final confirmation by the FCC; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of North Richland Hills, Texas, that: 1. That the City Council of the City of North Richland Hills hereby approves its consultant's suggested rates and orders that they be established as the Maximum Initial Permitted Rates for regulated basic and tier cable service, equipment, installation, and hourly service charges in the City of North Richland Hills; and Page Two Basic Service *Tier Service Leased Remote Control Leased Converter Box (Addressable) Hourly Service Charge Changing Tiers - No Service Calls $10.35 7.85 .34 1.39 21.60 1.99 (*Rate regulated by the FCC, thus not a locally-regulated rate. Rate shown is based on the same rate per channel as Basic Service.) The City has no way to accurately compute refunds for subscriber over payments; likewise, we have no way to determine the associated overpayment of franchise fees to the City. Should Sammons appeal the rate review findings, the matter will be referred to the FCC for resolution, delaying any estimated refunds until an FCC ruling. In adopting the attached resolution, the City is officially setting maximum initial permitted rates under the Cable Act and going forward. Since these rates are lower for services and equipment than those currently being charged, there is a refund liability. And with the establishment of these rates, the City Council will now have the authority to review and approve any future increases to basic cable rates submitted by the cable operator. Recommendation It is recommended that the Council adopt the findings of R.W. Beck and Associates (the City's consultant for cable rate review) and set the preceding as the maximum initial permitted rates (exclusive of the 5% franchise fee) for regulated cable programming, services, and equipment in North Richland Hills as permitted by the Cable Communications Act of 1992. Likewise, it is recommended that the Council also approve the accompanying resolution for an accounting order. 2. That the City Council of the City of North Richland Hills hereby directs and orders Sammons Cable Services to keep an accurate account of all sums which it has received from or billed to North Richland Hills subscribers for basic and tier cable service, equipment, installation, and hourly service charges during the past twelve (12) months, pursuant to FCC Form 393; and, in compliance with FCC rules and regulations, to issue refunds to such subscribers for the difference between those charges and the Maximum Initial Permitted Rates hereby adopted; and 3. The City Council of the City of North Richland Hills hereby directs and orders Sammons Cable Services to keep an accurate account of all sums which it will receive from or bill to North Richland Hills subscribers for basic and tier cable service, equipment, installation, and hourly service charges during any period of time which may lapse between the City's adoption of the Maximum Initial Permitted Rates and final FCC approval of such rates, pursuant to FCC Form 1200; and, in compliance with FCC rules and regulations; to issue any refunds to which such subscribers may be entitled; and 4. That the City Secretary of the City of North Richland Hills is hereby directed to transmit a copy of this Resolution adopting the Maximum Permitted Initial Rates, along with a copy of the Consultant's Rate Review Report setting forth the maximum rates permitted, by first class mail to Sammons Cable Services. PASSED AND APPROVED this 12th day of December, 1994. APPROVED: Mayor ATTEST: r, A. :.¡i,~--- 'C-eoj~ C' Secretary APPROVED AS TO FORM AND LEGALITY: