HomeMy WebLinkAboutItem 12 - Comcast CableITEM 0 12,___
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER Al
MEETING DATE: JANUARY 18, 2005
SUBJECT: ORDINANCE ESTABLISHING THE EQUIPMENT AND
INSTALLATION RATES CHARGED BY COMCAST CABLE
COMMUNICATIONS, INC.
RECOMMENDATION:
City Council to consider an ordinance establishing the equipment and installation rates
charged by Comcast Cable Communication, Inc. and take any necessary action.
FUNDING SOURCE:
No funding required.
BACKGROUND:
The City of Grapevine regulates basic service, equipment and installation charges billed
by Comcast Cable Communications. Current Federal Communication Commission
(FCC) regulations allow cable operators to file annual adjustments to their equipment
and installation charges. The City Council can only set maximum permitted rates.
On March 1, 2004, Comcast submitted FCC Form 1205 that is used to establish
Comcast's equipment and installation charges. These charges are the maximum
charges Comcast can bill for the one-year period. Comcast has the option to choose a
lower rate called an operator -selected rate as long as it does not exceed the Council
approved maximum permitted rate.
The City hired C2 Consulting Services to review Comcast's Form 1205 Filing this year.
This ordinance will establish the maximum permitted equipment and installation rates
allowed by Comcast Cable Communications for a period of one year beginning June 1,
2004.
City Staff has reviewed this issue with members of the Council Utility Committee and
recommends approval.
JCH
January 13, 2005 (10:11 AM)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS ESTABLISHING THE EQUIPMENT
AND INSTALLATION RATES CHARGED BY COMCAST
CABLE COMMUNICATIONS, INC., PROVIDING A
SEVERABILITY CLAUSE; DECLARING AN EMERGENCY
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas franchises cable television service for the
benefit of its citizens; and
WHEREAS, the City is the grantor of a franchise ordinance by and between the City
of Grapevine and Comcast Cable Communications, Inc. ("Comcast"); and
WHEREAS, in accordance with applicable provisions of the Telecommunications
Act of 1996 (herein the "Telecom Act") and rules adopted by the Federal Communications
Commission ("FCC") and all other applicable federal and state law and regulations, the City
has undertaken all appropriate procedural steps to regulate the equipment and installation
rates; and
WHEREAS, in accordance with applicable FCC regulations, the City adopted an
ordinance providing for the regulation of rates charged by cable television operators within
the City for the equipment and installation rates and related equipment and installation
charges and providing for a reasonable opportunity for interested parties to express their
views concerning basic cable regulations.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1. That all of the above premises are found to be true and correct and are
incorporated into the body of this ordinance as if copied in their entirety.
Section 2. Findings:
1. On or about March 1, 2004, the City received Comcast's FCC form 1205
filing.
2. The City engaged the service of C2 Consulting Services, Inc. to provide
assistance in the review of Comcast's FCC form 1205 to determine the
reasonableness of the proposed equipment and installation rates. C2
Consulting's report is attached hereto as Exhibit "A", and incorporated herein
in its entirety.
3. Based upon the information received from Comcast and information from C2
Consulting Services, Inc., the City concludes the rates proposed by Comcast
are not reasonable and the rates in Section 3 are found reasonable.
Section 3. Conclusions:
The following rates are found reasonable:
Hourly Service Charge $31.97
Install -Unwired Home (aerial within 125 feet) $47.47
Install -Prewired Home (Aerial within 125 feet) $28.54
Install Additional Outlet -connect outlet
$15.59
Install Additional Outlet -connect separate
$23.00
Other Install -relocate outlet
$21.45
Upgrade/Downgrade
$1.99
Other install -downgrade (non -addressable)
$14.14
Other install -upgrade (non -addressable)
$15.56
Connect VCR -connect initial
$7.99
Connect VCR -connect separate
$14.63
Customer Trouble Calls
$21.15
Field Collection
$0.00
Remote Control -all units
$0.32
Converter Box (Basic Service Only)
$1.20
Converter Box (all others excluding HD)
$4.73
Digital HDTV Converter
$6.68
Section 4. Orders for Action:
Based on the foregoing Findings and Conclusions, the City hereby enters the
following orders:
1. Comcast is hereby ordered to implement the foregoing rates in Section 3
effective June 1, 2004.
Section 5. The City understands that Comcast has requested the rates on a
nationally aggregated basis. In the event that there are Form 1205 rates that are
determined by other franchising authorities to be lower than ordered by the City of
Grapevine, and such decisions are upheld by the FCC as being reasonable and justified,
Comcast shall charge those same lower rate in Grapevine.
Section 6. If any section, article, paragraph, sentence, clause, phrase, or word in
this ordinance, or application thereto any person or circumstance is held invalid or
unconstitutional by a court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this ordinance; and the City Council hereby declares
it would have passed such remaining portions of the ordinance in spite of such invalidity,
which remaining portions shall remain in full force and effect.
ORD. NO. 2
Section 7. The fact that the present ordinances and regulations of the City of
Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace
and general welfare of the public creates an emergency which requires that this ordinance
become effective from and after the date of its passage, and it is accordingly so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of January, 2005.
UNINIRMW93
ATTEST:
ORD. NO. 3
A December 10, 2004 intervention deadline was established by the examiners. An
intervention was filed on behalf of the Steering Committee of TXU Cities and the City of
Arlington.
The Attached resolution will ratify the resolution filed on behalf of the City of Arlington
and Steering Committee and authorize the City Manager to appoint a staff member to
serve as the City's representative on a Cities' Steering Committee and require Atmos/
TXU Gas to reimburse the City reasonable costs associated with the City's participation
in GUD No. 9530 or any subsequent proceeding.
Staff Recommends approval.
902
January 13, 2005 (8:32AM)
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS AUTHORIZING INTERVENTION
BEFORE THE RAILROAD COMMISSION OF TEXAS IN
GAS UTILITIES DOCKET (GUD) NO. 9530;
AUTHORIZONG PARTICIPATION WITH OTHER CITIES
SERVED BY ATMOS ENERGY COPRPORATION,
FORMERLY KNOWN AS TXU GAS COMPANY, IN
ADMINISTRATIVE AND COURT PROCEEDINGS
INVOLVING A GAS COST PRUDENCE REVIEW RELATED
TO A FILING MADE IN SEPTEMBER OF 2004 AS
REQUIRED BY THE FINAL ORDER IN GUD NO. 8664;
DESIGNATING A REPRESENTATIVE OF THE CITY TO
SERVE ON A STEERING COMMITTEE; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT EXPENSES AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City Council of the City of Grapevine, Texas is a customer of
Atmos energy corporation, formerly known as TXU Gas Company, (Atmos/TXU Gas)
and a regulatory authority with an interest in the rates and charges of Atmos/TXU Gas;
and
WHEREAS, Atmos/TXU Gas made a filing at the Railroad Commission on or
about September 24, 2004, now docketed as GUD No. 9530, for a gas cost prudence
review of $2.2 billion in incurred and billed gas costs; and
WHEREAS, the filing made by Atmos/TXU Gas was required by the terms of the
Final Order of the Railroad Commission in GUD No. 8664; and
WHEREAS, ratepayers of Atmos/TXU Gas, including the City of Grapevine and
its residents would be entitled to a pro rata portion of a refund associated with any costs
having been found to be unreasonable; and
WHEREAS, the City of Grapevine and its residents could benefit from
coordination with other cities in a review of the reasonableness of the gas costs of
Atmos/TXU Gas and the joint participation in the Railroad Commission Proceedings and
any subsequent litigation or related appeal related to those gas costs; and
WHEREAS, the reasonable costs associated with the participation of cities in this
rulemaking proceeding are reimbursable from the Company.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct
and are incorporated herein as if copied in their entirety.
Section 2. That Intervention is hereby authorized in GUD No. 9530 and/or any
successor docket at the Railroad Commission of Texas.
Section 3. That the City is authorized to cooperate with other cities within the
Atmos/TXU Gas system and hereby authorizes the City Manager to appoint a staff
member to serve as representative to a Cities' Steering Committee that shall direct the
efforts of counsel and consultants and the course of settlement and/or litigation before
the Railroad Commission or any appeal to any court regarding any matter related to the
gas cost prudence review filing made by Atmos/TXU gas in 2004.
Section 4. That Atmos/TXU Gas shall promptly reimburse the City's
reasonable costs associated with the City's participation in GUD No. 9530 or any
subsequent proceeding.
Section 5. That this resolution shall take effect from and after the date of its
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of January, 2005.
ATTEST:
RES. NO. 2
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