HomeMy WebLinkAboutORD 2002-043 �.�
ORDINANCE NO. 2002-43
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS ESTABLISHING THE MAXIMUM
PERNIITTED RATE FOR THE INSTALLATION AND
EQUIPMENT RATES CHARGED BY AT&T BROADBAND,
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 AT&T Broadband (AT&T); 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
K 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. Findings:
1. That on or about March 1, 2002, the City of Grapevine received
AT&T's FCC Form 1205 filing.
2. That the City engaged the services of C2 Consulting Services, Inc.
to provide assistance in the review of AT&T's FCC Form 1205 to
determine the reasonableness of the proposed equipment and
installation rates, attached hereto as Exhibit "A".
� 3. That AT&T instituted a rate adjustment based on its Form 1205
�;.,.,
filing effective July 1, 2002.
4. That based upon the information received from AT&T and
�.,:�
recommendations from C2 Consulting Services, Inc., the City
concludes that operator selected rates for installation and
equipment rates are reasonable with two specific exceptions.
Section 2. Conclusions:
The City has an obligation to timely act upon the pending rate application
consistent with current FCC rules and regulations. AT&T's submittal of the FCC Form
1205 received on or about March 1, 2002, is hereby approved with the exceptions
outlined in the Section 3.
Section 3. Orders for Action:
Based on the foregoing Findings and Conclusions, the City hereby enters the
following orders:
1. Approve the operator selected rates proposed by AT&T for installation and
equipment rates as being reasonable with the exceptions noted below.
2. Require that AT&T make the appropriate adjustments in its next Form
� � 1205 filing related to technical, installation and dispatch commissions
allocated to the equipment basket.
:�m�
3. Accept the new rate for Customer Trouble Calls only if AT&T meets these
conditions: a) subscribers must not be billed for troub►e calls due to
problems not resulting from subscriber action; b) AT&T customer service
representatives must inform subscribers of the potential charge and the
types of issues that could give rise to the charge before a technician is
sent; c) in circumstances where the problem is not completely corrected
during the first visit, the subscriber will not be charged again for a repeat
call to correct the problem.
Section 4. 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 June, 2002.
�:, �
ORD. NO. 2002-43 2
� _ APPROVED:
� �
William D. Tate
Mayor
ATTEST:
_ �
�C�x,,
Linda Huff
City Secretary
APPROVED AS TO FORM
,�, .. �� _
John F. Boyle, Jr.
�,� City Attorney
ORD. NO. 2ooz-43 3
� � � � � �1 �
ONSULTING SERVICES, INC.
- APR 2 9 2002
„�,,, 7801 Pencross Ln. T B f�972 726-7216
Dallas,Texas 75248 Fax
EXHIBIT �/�. TO �
Pags _L_ of
April 24, 2002
Mr. Keith Rinehart Ms. Diane McWethy
Communications Manager Assistant City Manager
City of Bedford City of Colleyville
2000 Forest Ridge Drive 5400 Bransford
Bedford,Texas 76021 �Colleyville, Texas 76034
Ms. Debra Wallace Ms. Shelli Seimer
Assistant Finance Director Assistant to the City Manager
City of McKinney City of Allen
222 N. Tennessee One Butler Circle
McKinney,Texas 75069 Allen, Texas 75013
Mr. Steve Williams Ms. Lynda Hu.mble
.� Director of Budget and Research Assistant City Manager
Town of Flower Mound City of DeSoto
��
2121 Cross Timbers Road 211 E. Pleasant Run Road
Flower Mound, Texas 75028 DeSoto, Texas 75115
Mr. Rick Moore Ms. Melisa Leal
Information Systems Manager Assistant to the City Manager
City of Coppell City of Grapevine
PO Box 478 PO Box 95104
Coppell, Texas 75019 Grapevine, Texas 76099
Ms. Patricia Royal Nicks Ms. Donna Huerta
Cable Services Manager City of Lewisville
City of Irving 1197 West Main
233 South Rogers Road Lewisville,Texas 75067
Irving, Texas 75060
Dear City Representatives
C2 Consulting Services, Inc. ("C2")has completed its analysis of the FCC Form 1205 submitted
to the Cities by their respective AT&T Broadband �liate ("AT&T" or the "Company") on or
about March 1, 2002. Contained herein is a summary of the findings and recommendations.
�::�
This study does not constitute an exanunation of the financial condition of AT&T or its parent
company. Therefore, C2 cannot and does not express any position with regard to the accuracy or
validity of the fmancial information provided by AT&T during the course of the analyses.
Y�
CityRepresentatives EXNIBITII_ TO f ' `
Apri124, 2002 Page �.r.. Of _.�.._
Page 2
OVERVIEW OF THE FILING
' �' In its 2002 Form 1205 filing, AT&T proposes to significantly increase the charges for the
following activities and equipment:
• Installation for pre-wired aerial to increase by approximately 12%
• Additional outlet at separate time from installation to increase by approximately 10%
• Non-addressable downgrade of service to increase by approximately 10%
• Basic-only converter charge to increase by approximately 8%
• Non-basic only converter charge to increase by approximately 13%
The above increases are based on a comparison of AT&T's 2001 and 2002 operator selected rates
("OSR") that are significantly below the maximum permitted rates ("MPR") calculated in each
year pursuant to the Form 1205 formulae. The comparison of MPR's for the 2001 and 2002 rate
years show significantly lower percentage increases. In other words, AT&T has chosen in this
�ling to reduce the differential between its calculated MPR under the Form 1205 formulae and its
OSR.
The following table provides a comparison of the Cities' adopted 2001 rates, AT&T proposed
maximum pertnitted 2002 rates and AT&T's operator selected 2002 rates:
COMPARISON OF EQUIPMENT AND INSTALLATION RATES
*AT&T Cities
" **Former Paragon Cities
City City AT&T AT&T
:� Ordered Ordered Proposed 2002 Proposed 2002
2001* 2001** MPR OSR
Hourly Service Charge $27.99 $32.48 $29.68 $28.49
Service
Instail-Unwired home $41.99 $43.16 $45.49 $43.99
Install-Prewired home $24.99 $43.19 $30.59 $27.99
Install-Additional connect $13.49 $21.76 $14.76 $13.99
initial
Install-Add.connect separate $19.99 $32.48 $24.16 $21.99
Move outlet $18.99 N/A $20.17 $18.99
Up/downgrade $1.99 N/A $1.99 $1.99
Downgrade non-addressable $9.99 $25.98 $12.94 $10.99
Upgrade non-addressable $15.99 $25.98 $16.59 $15.99
Changing Tiers N/A $2.00 N/A N/A
Connect VCR initial $5.99 N/A $7.12 $5.99
Connect VCR separate $12.99 N/A $14.63 $12.99
Customer Trouble Calls N/A $21.76 $17.38 $16.99
Remotes $0.35 $0.32 $.34 $.30
Basic only converters $1.85 $.58 $5.66 $2.00
- - Non-basic only converters $4.25 $4.41 $7.17 $4.80
�-,,�
. . �
� - EXHIBIT� TO ����l�.e�
City Representarives Pa�B `�.� 0� �.11Z�.....
Apri124, 2002
Page 3
With the exception of combuung systems into "areas" and only choosing twenty samples instead
of forty, the 2002 filing has the following components that are consistent with all previously filed
``�"� aggregated national Fo�n 1205 filings:
• The computarion of the Hourly Service Charge ("HSC") based on the averaging of
calculations made for the sample "area" systems as applied to the total number of
"area" systems that have the same sample characterisrics(subscriber counts)
• An allocarion of common AT&T costs to each of the sample systems based on the
number of subscribers
• The computarion of individual installation activiries based on the HSC times an
averaging of the time requirements reported by the twenty sample"area" systems
• The computation of equipment rates based on AT&T's inclusion of certain costs at
the AT&T level
• The computation of converter rate categories that are dependent on the type of
service rather than the type of equipment
SUMMARY OF FINDINGS
Based on a review of each of the sample "area" system Form 1205 computations, the
computations of equipment and installation charges incurred at the corporate level, and AT&T
responses to requests for information, C2 notes the following findings:
' i 1. The before tax rate of return proposed by the Company does not reflect the actual
corporate informarion for the fiscal year end in quesrion(December 2001);
�"}` 2. The Company inappropriately included commissions for the technical, installation
and dispatch staff in calculating labor expense in Schedule B; and
3. The Company has included a rate for Customer Trouble Calls not previously
requested.
1. Rate of Return
Based on the FCC regulations, AT&T is allowed to earn a return on the capital investment made
related to regulated equipment and installation activiries. More specifically, the Form 1205
allows for the development of a before t� rate of return ("ROR"}, and its application to the
unrecovered balances of vehicles, tools, maintenance facilities, and customer premises equipment
used to receive the basic service tier. One component of the ROR is the interest deductibility
factor found on Schedule A, Line G4d. 'The importance of this factor is that it is used to
determine the Company's effective tax rate for purposes of "grossing-up" the FCC presumed
applicable after taX rate of 11.25%.1
The interest deductibility factor is computed by dividing the Company's actual interest e�cpense
by the total net assets of the Company for the period in question. Due to the tuning of'the filing,
AT&T used the net assets reported in its September 2001 IOQ, and an annualized amount of the
interest expense reported in the same SEC filing.
,:.._. 1 Seco»d Report and Order,First Order on Reconsideration,arful Fzerther Notice of Proposed Rulemaking,
FCC 95-502,released January 26, 1996,paragraph 10.
' ' EXMI8IT� T0 �'
City Representatives pa9g �.,,,.,,, Of
Apri124, 2002
Page 4
Although not available to the Company at the time of the filing, the Company's l OK filing is now
available and demonslrates slightly different amounts for each of these line items. By
�� incorporating the actua12001 year-end amounts, the interest deductibility factor is adjusted from
the Company's proposed 20.02%to 20.19%. This change results in an adjusted ROR of 16.34%
as compared to AT&T's proposed rate of 16.35%. The ixnpact is de niiniinus on the resulting
rates but should always be considered by the franchising authority to reflect those components
that can be changed to actual prior to the Cities rendering fmal decisions.2
2. Inclusion of Commissions for Technical,Installation and Dispatch Staff
Upon inspection of the supporting documentation provided by AT&T with respect to labor costs,
C2 noted that the atnou.nt of labor expense allocated to the equipment basket includes
commissions for technical, installation, and dispatch staff. Based on the FCC instructions, cable
operators should identify the total labor expense and then allocate a portion of such expense
based on installation and repair activities related to receiving the basic service. It is not clear that
these "commissions" are related to the provision of basic service. If such were the case, then
some portion of the commissions paid to marketing representatives and other staff not allocated to
the equipment basket would apply.
In C2's opinion, these commissions should be excluded. This adjustment results in an hourly
service charge of$29.53 compared to the filed HSC of$29.68. However, this change does not
affect the operator selected rates as AT&T is proposing an operator selected HSC of$28.49 (on
which all other charges are based.} For comparison purposes, however, Exhibit A includes the
resulting maxunum pernutted rates using the adjusted HSC of$29.53.
��>-- 3. Inclusion of Rate for Customer Trouble Calls
In the instant filing, AT&T is requesting to establish a rate that has not been in eacistence before.
Usually,the first question that is raised is whether the costs related to the activity in question have
been previously"unbundled" from the programming rates.3 In addirion, based on the Company's
methodology for computing equipment basket hours and costs, non-productive trouble calls are
removed. Therefore, in C2's opinion, it does not seem appropriate to establish a rate for
activiries that (1) have not been definitively shown to have been "unbundled" and that (2) a
portion of which have been removed from the calculation of the HSC.
SUNilVIARY OF RECOMMENDATIONS
Based on the above preluninary findings and conclusions�the Cities should consider taking the
ZThe basis for the return factor was established by the FCC in the eariy 1990s as a presumed after tax return
of 1125%. In today's economy,it is not at all clear that such a retum is reasonable because it has not been
revisited by the FCC in many years. Therefore, any of the remaining components that are used to"gross
up"this rate should be scrutinized in the event better data is available. Of course,the Cities always have
the right to challenge the rate of return,but the burden is on the Cities to show that a more appropriate
return should be used.
3 As you recall,during the Form 1200 rate process,the equipment basket costs were"unbundled"from
programming rates in order to stand alone in later analyses of costs. If certain types of costs were not
.s.:=�: "unbundled"at that time,there was a possibility of double recovery if such costs were later added to the
equipment basket.
, � , EXHIBIT� TO �'�f�� �=,-�3
City Representatives f 898 � Of ,�,.
Apri124, 2002
Page 5
following actions:
�"` 1. Approve the operator selected rates proposed by AT&T for installation and equipment
rates as being reasonable with the exceptions noted below.
2. Require that AT&T make the appropriate adjustments in its next Form 1205 filing related
to technical,installation and dispatch commissions allocated to the equipment basket.
3. Disallow the requested rate for Customer Trouble Calls until the Company can show that
all hours related to these costs have been taken into account in the development of the
HSC.
C2 appreciates having this opportunity to work with the Cities in review of the Form 1205 rates.
If you have any quesrions regarding this report or need clarifications as to the recommendarions,
please contact Ms. Connie Cannady at(972) 726-7216.
Very truly yours,
C� l��'��"�`�i°k�^''"`�j`�'nc.
C2 Consulting Services, Inc.
�.� / '
EXNtBIT TO ` ?rs�1�
Pa90 of
�N��LTIN� �EF��1+�E�, IN�.
� . 7801 Pencross ���i� ���1-����
J�L.COMMENTIIP Lase�rJ,�t�S/SM-Standard Driver �n��t ��c n oy�s rs.,..._.�..
@PJL COMMENTG 1.30.0.0
@PJL SET RESOLUTION=600
1V.�emora,ndum @PJL SET PAGEPR
To: Cities' Cable Rate Coalition
From: Connie Cannady
Date: 5/20/02
Re: Customer Trouble Call Rate
As you know, one of the recommendations sent to you conceming the Form 1205 was to disallow
AT&T's requested"Customer Trouble Call"rate of$16.99. Subsequent to the issuance of the report,
AT&T has provided additional information to demonstrate that(1)the costs related to this charge are
not new to the equipment basket costs, and (2) that that customers will not be billed for those
activiries that are excluded in the calculation of the Hourly Service Charge.'
However, in order to recommend acceptance of the rate, it is my opinion that three conditions must
be met. First, subscribers must not be billed for trouble calls due to problems not resulting from
subscriber action. Second, AT&T customer service representatives must inform subscribers of the
potential charge and the types of issues that could give rise to the charge before a technician is sent.
Third, in circumstances where the problems is not completely conected during the first visit, the
subscriber will not be charged again for a repeat call to correct the initial problem.
AT&T was informed of these conditions during a meeting at the City of Bedford. No objections have
been received to date. In the event that the Cities can include the above conditions within their
respective ordinances,I recorrunend that the$16.99"Customer Trouble Call"rate be adopted.
'These were the two issues identified in the C2 report that gave rise to the recommendation to
`� disallow the rate.
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Waehvig[oq D.C.20554
SCfiEDULE A:CAP7fAL COSTS OF SERVICE INSTALLAT[ON AND MAINTF,NANCE OF EQU[PMENT AND P[,ANT
Main4nn�rce Otherl. Other2.
��`�"- P ni ninndPlenf Vehlclw Tnn6 Facilltle� (S ti Mlm�) (S i bslow
6rtwBookVa}ue 5332,751,674.00 SZW,225,342.00 SI3,253,652.00 f0.00 50.00
��`*�'�'�' Aca�Warod iation 3220,998.289.00 5106,809,595.00 56.957.381.00 50.00 f0.00 . .
D DefertedTmcw 52,658,063.00 517,792,140.00 5825.397.00 50.00 50.00
fi Net Book V.lue C+D) 4109.095,52200 �>SR1.d3�,6f1>b(t 55.470,8>4 60-�, ` SO.QO 50.0(?�.�
F Rateo(Retian 01125
(i Ca/cv/ofion o Grosr-v Rate
OI Fedvsl Lromne 7u Rate 0 35
Ci2 Stela Ineome Tu Rete 0.0618
(33 Net 7oal income iac Rah[61 t(32}(Ot x G2 � �-� 0.3902
Q4 Ad�otmnrt ro Rellect(nte'at Deductibili
G4e ActuellnlemtAtnamt 53,247,000,0000p 4
G46 Totnl Net Aaeb 5142,754,000,000 00
04e Bse Renan on inveetment Amo�mt[046 x F] :��. Sl 059,823,000 d0 �
i
Q4d I�rtermtDeduchbili Factor 64e/G4c] '�� 02019 � _
GS EtCative Tuc Rde G3 x(1-64d) GC � to G7] :� 0 3114
�36 Ad� b frn Non-C tiane
Gbe Bave Re[�an on Ime.vtment Amow�t 64c f ,
� 1 ':51 059,825,0OO.OQ .� .� -. ' '' !� ,. �! . :. .
Cfib Drtrilaeiona Sp(q
06c Con�nbutiau( oot e<ceed O66) 50.00 ' .
O6d Remm�Sub'xt to income 7ax c�5e-c36b+c,6c �.>3i 6,039,825,otx160
G6e Ret�vns P S�'ect to Incartro Tu(06d�66e } ,
O' Orow- Rete[GC :1/(1-05)Olher VQ{OS x ti6e)) ':}.45'12 ' ..
(ho�xd- RateoCReean x67] :;p��q•'
Reh�on Im•e�nent t3rooed-U for Texes[E z 311.$23�640.1)$9 �'13,�35,�7).,S$44 $843,812.0266 , ' POOd 3(Y,O6
���...:J�� Ctivient Provinion for iation 554,793,782.00 524.373,497.00 51,834,427.00 50.00 sp.pp
Ii MnuelCapilalCosh[I+JJ ��,� 372,6l7,4221fi79 537,7D8.6745879 32.7Z8,239D2d6 �� > 5000 sOpp�-��
L GRAND TOTAL�s�m of Lise K endie�� -:� '5113,bGt.S1S.787/�.
Bo:l.
Specify:Other l.
SpeciCy:Other 2.
SCHEDULE B:ANN[JAL OPERATING EXPENSES FOR SERVICE 1NSTAIJ.A7TON AND MAllV'1'ENp1VCE OF EQUIPMENT
Seleries I. Other 2.
R Hm�afiU Su lies Utilitira Othm 7aze� ( i below (S ' below)
A Amnml Op.P.xpmiw fa 9vc.trotalL md Mem[of Equ�. 11.353.094,576.00 546.366,705.00 S0.0p 596.303.374.00 5206.894.038.00 586,099,624.00
B GRAND TOTAI.(�om of I.loe A eeMes� ��11..?l1�7'b0.�31T.Q0:�.
Bo:].
- 3peciCy:Other 1. �
Specdy:Other 2.
FCC Fam 1205
p°R°Z Fxcel 4A far Windowe Jime 1996
� F��,��,.���� ExHieir.� ra �x1 D � �-�3
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,�_ ���o�3�,�
Wn+hm�tlon.D.C. 20554 PA�� ���,'� —�-��--
SCI�DULE C:CAPT[AL COSTS OF LEASm CVSTOMER EQUfPMENT
���R� F�I� f Rmnnte I Remnle 2 Ramnte 1 ('carverter 1 Convm[m 2 Conver[er 3 Other H
Taal Mairumunce/Servwro Houn(AHech lenetion) 205513. 44905. 3859H51. 0.
'� Totnl A oCUnib'v�Service 9164896. 1147�8. 9904467. 0.
D O'aaaBookVe]ue 5737,937,644.00 531.247,492.00 52,168,255,576.00 50.00
E AavmilatedDe ietion 586,053,298.00 517,509,744.00 51,081,380,482.00 50.00
F Ik&�d Tua 5477,444.00 (5953,958.00) (5157,084,129.00)
6 Net Hook Value {E+F) . SSI.d06,902,00 54.U6 > Sd.dO SI4.G9i��706.64 Sl�`��13,934273:06 56.00��-z 9f10IY�
H (hoeaed- Rete of ReMn rom 3ched..4 L'me H :.0.1634 i
I Renan on Lrvaunent Groe�ed- fw Tum[6 r HJ 58.398,677�.66Z1 50.00 : SO.00 - S2.dOD T789}59 .SZU3 3365d.08� 50.Otl.% 50.00':
oe e
7 Clvrent prrni�ioo for ieticx� 523,3R6,093.00 Sq,061.97�.00 f534,464.169.00 50.00 �
R A�mI Cepital Coeh(I+JJ -��.S31.1BA,1)O;t5621 SO.OQ -' 3b.fld ��: 16,d6Z,255.1155 5737.697,UY3.t� SO.tki :�. 30.tl0�:
L GRAND'fOTAL��aw dLhe K e�hia� :'ST/8�hd/9,6617�� .
Bm 3.
SCFIEDU[,E D:AVERAGE AOURS PER IlVSTALLATION
A. A Haun Unwved Hane Irptelletion Aeriel 1.5327
R. A Hmm Pro-W'ved Home InsUlletion L d 1,0308
C. A Haaa Retauwwt 0.4973
D. A Hrnm Additionel Camection at Tnne of Lutelletion , 0.814
E. CWbrLMelletion IhmT
.. Rmnt.( .)
� A Houn AO at e T� 0.6795 �
,-.;;n'mZ( J
A Hrnaa 9avice Call with Tnuk Roll 0.5591
Item 3.(S � .)
A Ham Instdletion-Aerial 0.4359 .
FCC Form 1205
Pege 3 Escel 4.0 for Windowe hme 1996
• � ^ Fedmal Comm�¢�icatiom Camnnsion F^'��APP�vval bY OMB 3�40703
w,.h;�con,D.c.2os5a EXM181T.�..._ TO . " �
Paga .�. _`l._.._
WORRS�T FOR CALCUI,ATING PERMITI'ED EQU[PMFIVT AND WSTALLATION CHARGFS
p S7P.P A.Hw Her�les Ch�
Totei C sl Co�u of tmlellelkm end MdMenxnce SchachAe A.kfoz I 5117 OSA 5JS.7DM
Tael Armuel for Im�dletion erd Mnintenence Schedul�B,�21 Sl,>88,256,31y:tb�
Taal Caen end m(or Ins�nllation eid Mm�tmence 1+Lme 2]. : 51,901.812,��852.7819:::
=�r:�� (.lMaror end Uutellation P (adech m�e lemtion). 0.1645 •
S. Afsnai(.letamer mt Ma'vrtenence end instellation Coate,Exei � Cosh oFLeued t L'me 3 x Line 4 33TZ;7'll 567.00< .
6. Total Lsbor Hwua for Memtenu�ce md Inetalletion oCQutrnner u' eM nrd Smvice�(etGCh e lenetion) 10592209.94
�. Ho�c Savice (L'uw 52v�e� .35?8 5283:�: �
!�THOD OF BII.LING FOR INSTALWITONlS(phce��":"ie the appropriate b�)
tmRelle[ioro billed by the hrna baed on the}iSC calcule[ed'm Lme 7.
� I [mmllMmm billed n s at�d�md chvge.
STEP&Irolallatlo�Ch�r`e
3. IJnifam HSC for aIl'meWletio�u(Fmm Step A,line�) ..,:��.... -:�tt/a �
OR
9. A for in�telletioa T
n L!nwved Hane In+talletion
al.ASC � l] ?I 524.5285 �;
a2.Ave`epe Ho�na per Unwirzd Home Lietelletion(Schedale D,Line A) 1,5327 ��i
Ai.Chmge per Unwoed Home InaGllation[el z e2) :���345 35$3:��.
b.As-wved Home Installatian �
bt.NSC ' 7� 3 329.5285 i��: " �. .
62.Avv�e Ham per Prc w'ned Home Lutelletion(Schadule D.L'me B) � j.0308 �i � .
63.Gt�mge per Prawvad Home Lutnlletion[bl x 621 ;•:$30 43Z9'
a Additionel Conneclion Wtslletion�t 7mrc o(Initiel Lvtalletion - �
� . .._. .. ._.._....... ......__......... . .
cl.HSC ine 7 -�. 829.5285 ?
c2 Averoge Hrnm per Additionel Cotmection UL+tnllalion et 1'ime o(init.Irota1L[Schedule D,Lme C] 0 4573 -�
c3.Cha�ge per Additimiel Comiection LntellNian et Time of Initiel hntelletion[cl x c2] .`:��$1 d.6645��-.
d Addiliorwl Colmaction Gutalletian R ah Lntalletian
dt.HSC[L'u�e 7 i'324 i2s5 : .
d2.Avg Houta per Additia�el Comwction Imtelletion Req.Sep.lna[all.[Schedule D,L'me Dj 0 R1 A i
„ .. ....;�. . ... .
dl.Chwge pm Additiond Com�ection Inatnlletion Requcvg Seperste iruGtletion[dl x d2] %S2d.0362 �
.,�,..:,,.,
e.01}�m Irolalletiorn(Aa ified'm Schedule D,Lme E):
el.HSC[Lvie 7 �?524,3285 'I
e2.Avernge Haas per Lutallelion o[Item 1 (Sclrod��le D,Line fi,Item 1 J 0.6195 1.
e3.Q�te per inrtetlation o(Item 1[el x e2] (SY006467.
e4.HSC[Lme 7) '��.529.5285 ':- .
e5.Ave`ege Ham per Lntalletion of Item 2[Schedule D,L'vw E,Item 2] O.SS91 ��' �
e6.G1wge per Inslallation of Item:[e4 x e5] ,�:S16.$094r.
e'.FLSC[I•me 7) :>329.S28S �:
eA.Avmqge Haaa perLutalletion of Rem 3(Schedule D,L'me S,$em 3J 0.4359 �
e9.Chmge perlmtallation o[Item 3�e7 x eRj s-31287]�5� .
FCC Fam 1205
Pa�e 4 Ezcel 4.0 for Windows - Jwe 1996
Fede�el Communicetiwu Co�mnioion 't., Apprwed by:OMB 3060-0'J03
Weahrt�ton,D.C. 20554 EXMI81t..f�... TO '' ��� .
PAga .�...�. ..��...�
SIEP C.Cb�rEn for Insed RamoM e b c
(C�Ita��te nte tor wch�I iflnetl dHhre�t ) Remote i Remote 2 Remota 3
��..�"/� T�dal Mein�enanrs/9ervjrs}bxin�CrxreePnndin&cnlmnn 6nm 9r.heditle C�i,ine A�_ .:-::� 2f1551? ' '- 0 � ���0.
t. Asc p.irc 7 ��,- i�,<•��: 3295285� . 529.5'29S :..., , 5�4,53g5
Toul Mnmtmefroe/Service Caat me 10 x Line 11 068-�d80 83% �� :::SQ00 ::S6AU.�.
,. ...� Aramel C itel Coea C col�min Gom Schedule C.Line K $31:7R4,'l70.6621 ��--�3U.00 .SO.[10:�
..14. 7cul CM otRemde(L'me 12+Lme 13] $37,653 25I A997 � :.�50.00 �.30.W�.
]5. Nunber oCUnih m S�vioe Corre+ d' wlumn fran Schedule C,L'me ;;918d$46. : 0. >��0>
16. UnitCort[L¢xl4/Le�eIS) ;:�.]21Z ��� �:_fOD4 �SU:00;
17. RateperMonth[Lvro16IQ2)] �.'. 503d34 �� I�<SO.00 ���SO.00�
S7'EP D.Ch�r�w for kned Co�vMer B�a e b c
(Gkvl�h nle for ac6• Iffaye dlRerset ), Convertm 1 ('�onverter 2 Crnrverter 3
I R. Total Ma'vrta�ce/Servica Hrnaa[ colurtm Gmn Schedule C.L'me A d4905. �. �785965�. ��,U:
19. HSC[Lme 7] �:3345285 .: YL9:3285 S"+9:5285-��:
�o. Taa1 Meunenaioe�Service cost c�e t 9 x l9j 31 323���97S.I Sa9 ��-5713.975�2G:5158 50�:00:..
n. amual c ;tel coat�[ ' colm,n,sa„schedule C,Lmex] E6,�6'1�1s5st54 ;5�3'7.697823sDS6S sU:Do
22. Tdel Com of Comerta[Lme 20�L'me 21 j � '57.788�23J.U'/08 .�5851,633 249:6026 $O;U6:� .
23. N�un6er of LJnit�em Servict[C column Gom 3chedule C,Lme C] :�. t 14'71$, ; 491L1d6> :�6:�.
24. thril Cost(L'me 27lLine 23] :��567:6347 SB5:9B68 Sd:OU�>.
8. ReteperMonN�I,'v�e24/(12)] �>.556446 57:3647 >�.10.00�.
SfEP E CM Tor Ol6er Leised d nt
_'6. 7we1 r{amterwnce/Service Ho�ua C�mm col�vnn fitmi Schalulo C,Line D] � � ���0.
27. HSC[L'aie 7 �.;:j29,5285�
2R. Toul Mnvrte�lServioe Cast�I.'vro 26 z L'vro 27 ;p:OU��
?9. Amnal C ital Coeh colurtm Gom Schedule C,Lme K] $O,dU��.
?0. Tofal Coal o( art me 28+L'v�e 29 SO,OCY-���
31. Nwnber otifiiln m 3eevice Carcs colwnn from Schedule C,L'me C �,:0,
32. fhfil Cast[Lme 30/Lme 31) so oo<
3?. RaroperMonth[Line3J(12)] - .SO:W'I
METHOD OF BI[d.ING FOR CHANGING SERVICE T1ERS OR EQUIPAII9NT�plan��"x"in tYe�ppropd�te bo=�
S o s Nanmsl C1wge(Hnter the nom'vxl chmge in L'v�e 34)
a e Unifortn Havly Service Glmge
I s�m Aveiq�a� (Enter the A Houn for Cher�ting Snrvice Tien vi L'me 36b.)
TEP F.f6� for CA� n Snr�In Tlm or E d enf
4. Nomawl Cor ' Smvioe 7ims
If use an weal � scale o( lace an X in ttro box a[the '
OR .
39. Unif'am Hacl Service .;�.�_: _ .:;i✓a
.:.-..:.._.....::._...
OR
36. A far Ch Service Tien .
36a HSC[L'me 7 .:�,; ST9.5285 � .
36b.A Have to Smice Tien� 0.5591 !
36c.A Cor Smice Tieea[L'vie 36e x L'v�e 366) ;516.5094��:
FCC Fam 1205
Poge S Hxcel 4.0 far Windows Jwe 199G
• •f«krnl cwmnmiceti«n co,nmis»I, appmv�a ny:obm wbo-o�m
w.,�,�,D.� 20554 EXHI8IT�. TO .� D �� - ��
Pa e �
9 .—.l�z-... ..�..
..fl.�...µ'Vitl(3HLre7 VUN f:AL(:ULA7ING 7UTAL C(f I RPMRN'Y AhIU INYTALLA'P�ON('IMTR
Tdal C �tal Coeu of Irotelletion end Meintenarroe[Schedule A,Boz 1 .�:���:���:SI 13�05�;535:787:1��
�� TWalMnuel tcrinaWlMionendMamtenmwe[ScheduleB.Box2 x1,1B$,>f8.317.00�;
? TMeI Anmal G itel Q»p otGntallMion end Mamtanenoe me I+L'uro] $1.901:812,R52.7874
J. �taner t md Irotnlleticm P (attaeh lenetion} .
5. Mm�al C�nlaner ' t Meintmmca ad L�etellation Coats,Fxclud� Caeb of Leaaed ui ent .,..f0:tl0�.
[Lca 3 z L'vie 4]
6. Totd C ilal Cosb otLea�ed Qutamer ent Schednle C,Boz 3j � 5775,9+I4�$d9.66M17���,
os
Mmsl�lstwnm andlruWletionCoste meS+Lioe6] 5�75,9,-01�:644,6647'-
8. P Allocetion to Rsnc6he Aroa(eea'vutr�ctioro)
9. Allowted Amnml and Imtalletio�Coat�I,ine 7 x L'vw S] 30.i3ii-
10. MontlJ vd Imtslletion Cort me 9/Q 21 SO.AD'
11. Nwaber of Baic Subxnbaa in Fiaechbe
I'.. Mont1J and Uiatellatioti Coet Subxriber hrc]O I Lvx 1 I -�� dDIV/0f
13. inlletion Ad' t Fecta[See Lutnctiao
1!. Ad' ted Mon rt end GuWletiai Cost Subecriber[Lim 12 z Line 13] ..�:.IfDIV/01
��:;,�a
FCC Fam 1205
p�6 � Emel 4.0 for Wmdoas hme 1996
� �f���«�,�� � a�,��-�30600')03
����D� Zoss� EXH181T� TO ,�.�'
i
Page ...�.L...., �.
SUMMARY SCF�DUi�
.......""'rrte�t P d Nl��d ieNalbHe�R�b� Permitted Acn�el� .
�.cenia�;a i�ur�
dlirnvl Reh. !ti Lvie 7 �h/g
��
b.A hetallation
7 a Lrtelletion of ifiwoed Hana St H,L'me 9e3 S4i 26�-. .
2 Imtailetion of Acw'ved Home �.„530,44��.
3.Imtalletion o(Additia�el Cormecliae M Tvne of L�itial Irctelletia�[St H,L'vw 9c3 SI d 6$�:�
4.LMeiletion o(Additianel Ccmnactiotn R te Lutell[St B,Line 9d'i 52A.0q��..
5.MoveOutlet � 520.66:-
6.Other Lntellebon
a. -ix+n-eddrnaa6le st 6,51���:'
b. de-non-addre�neble -::.51.287',.
c.Colmect VCR at imttlletion -:.S1.i4��
d Camect VCR et e ' Sl A.2'd���
M fa Leeee oCRemote Control+[St C,Line 17,cohumu ec �
Rmate Camol T 1: 50:34�.
Remwe Cmtrol T 2: tfj;bb
Rmwts Co�rtrol 7 3: Sp:pp
3. Montld [or Laau o[Comerter Boxee[St D,Line 25,colunvro ecJ
Convena Bmc T l: ...55.65..-
Converter Bmc i 2: �1,17;��. .
Com+e�ter Hoz T �3:
4. Mon1h1 for Leeee o(Olher ent(St H,L'aw 33J
�� ( .::;.:SL[U6'..
5. (ar � Tim(iC )[St F.Luro 34,35 m 36c] ...:f_.116 51�:
LABOR COSI.tND POLiCY(.'HANGES
.. Gpdicate yaa an.wer w the following ihee quatiom by placumtc en"x"in the epprupriate box
Have you mehded the Iabor coeb aawciated with mbacnber eable drope m yaa chmges(w'v�itial'vutnlletion?
�YES
c� NO
2.Heve you�apihfiaed the labor cwb eswciated with eubember cable dropa?
8Y&S
NO
3.IIyou heve filed thm fmm befae,lmve 3'OU��d�Y P���Y.e.g..coat eaounting or wst allocation thet cewea�inereaae in the cosL+
rt�cluded'm fhe computetion of equipme�rt md malalletiau chmge�?
Y&S(You mmt attech a full nxplmelion)
NO
CER7IFICATION S7A7'EAIP'.N7'
R'QS.FlII.FALS&SIAIF.MENIS MADE ON THiS FORM ARH PLINISHABLH BY FWH AND/OR Q.�[PRISONMEN'i
�U.S.CODE'ITILS I8,SECfION I0011,AND/OR PORFf:ITURE(U.S.COD$TI7'LE 47,SECTION 503). �
I oertd'y t}rt the alntmrone mede'n�thm fam ero true aod conect w the be�t ot my larowledge mid belie�md ero made m good faith. �
Nnrtro of the Gble Ope�ntor Sig�etum
�� Title
��.�
FCC Fam]205
Pege 7 � Excel 4A for Window�
7mm 1996