HomeMy WebLinkAboutORD 2000-039 ORDINANCE NO. 2000-39
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS ESTABLISHING THE MAXIMUM
PERMITTED MONTHLY LEASE RATES CHARGED BY
PARAGON CABLE, 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 Paragon Cable ("Paragon"); 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 laws
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. Findings:
1. That on or about October 1, 1999, the City of Grapevine received
Paragon's FCC form 1205 filing.
2. That the City engaged the services of C2 Consulting Services, Inc.
to provide assistance in the review of Paragon's FCC form 1205 to
determine the reasonableness of the proposed monthly equipment
lease, installation and maintenance rates attached hereto as Exhibit
"A" and included herein by reference.
3. That based upon the information received from Paragon and
recommendations from C2 Consulting Services, Inc., the City
concludes that the rates proposed by Paragon for maximum
permitted monthly lease rates are not reasonable.
Section 2. Conclusions:
The City has an obligation to timely act upon the pending rate application
consistent with current FCC rules and regulations. Paragon's submittal of the FCC form
1205 received on or about October 1, 1999, is hereby rejected, for the reason that the
proposed rate is not reasonable.
Section 3. Orders for Action:
Based on the foregoing Findings and Conclusions, the City hereby enters the
following orders:
1. Paragon's request for maximum permitted monthly lease rates of $3.44 for
addressable converters and $.64 for non-addressable converters included
in its Form 1205 filing is hereby denied.
2. Based on the information received from Paragon and recommendations
from C2 Consulting Services, Inc. which is attached hereto as Exhibit "A"
(see above), the maximum permitted rate for the monthly lease rate for
addressable and non addressable converters is established at $3.39 and
$.62 respectively effective March 7, 2000.
3. Paragon Cable is hereby required to refund to its current customers any
amounts charged to them based on the Form 1205 rate adjustment, which
were in excess of the rates approved herein.
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 required 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 April, 2000.
ORD. NO. 2000-39 2
APPROVED:
William D. Tate
Mayor
ATTEST:
�1
Li a Huff /1
City Secretary
APPROVED AS TO FORM:
F
John F. Boyle, Jr. ''
City Attorney
ORD. NO. 2000-39 3
EXHIBIT, 19 TO Aid 6`. .(1/ -39
Page i of _1/
•
•
ONSULTING SERVICES, INC.
7801 Pencross (972) 726-7216
Dallas, Texas 75248 (972) 726-0212(fax)
January 28, 2000
Ms. Melisa Leal
Assistant to the City Manager
City of Grapevine
PO Box 95104
Grapevine,Texas 76099
Dear Ms. Leal:
C2 Consulting Services, Inc. ("C2") has completed the evaluation of the FCC Form 1205 filed by
Paragon Cable ("Paragon" or the "Company") with the City of Grapevine, Texas ("City") on or
about September 30, 1999. This is Paragon's first year to file a Form 1205 for City review of
regarding its proposed changes in equipment monthly lease rates and installation and maintenance
charges since implementation of the Social Contract provisions in 1996.1 In August 1999,
Paragon opted out of the Social Contract provision that established regulation of such installation
and equipment maintenance costs by the FCC.2 Therefore, Paragon has filed for review of these
proposed rates by each of the franchising authorities' with jurisdiction over such rates.
This study does not constitute an examination of the financial condition of Paragon or its parent
company. As such, C2 cannot and does not express any position with regard to the'accuracy or
validity of the financial information provided by Paragon during the course of the analyses.
BACKGROUND
In its 1999 Form 1205 filing for the 2000 rate year, Paragon proposes to decrease all its 1999
rates with the exception of the monthly charge for addressable converters. This rate is being
increased form $2.76 to $3.44 per month per converter--a twenty five percent(25%)increase.
The following table provides a comparison of Paragon's 1999 rates and Paragon's proposed 2000
Form 1205 rates:
Social Contract for Time Warner Cable("Social Contract"), as approved by the FCC in Social Contract
for Time Warner,Memorandum Opinion and Order, FCC 95-478, released November 30, 1995,("Social
Contract Order").
" `"° 2 See Social Contract,III.B.
• Ms. Nlelisa Leal EXHIBIT TO AM4"--ff
January 28, 2000 Page ,.-.r., �y Of Page 2
COMPARISON OF EQUIPMENT AND INSTALLATION RATES
Paragon
Paragon Proposed
1999 MPR' 2000 MPR` Difference
Hourly Service Charge $29.84 $29.78 $(0.06)
Service
install-Unwired home $29.84 $29.78 $(0.06)
Install-Prewired home $17.31 $17.27 $(0.04)
install-Additional connect initial $13.40 $13.40 0
Install-Additional connect separate $27.46 $27.40 $(0.06)
Truck Trip $17.31 $1 7.27 $(0.04)
Change of service tier $29.84 $29.78 $(0.06)
Monthly Lease Rates
Remotes $0.31 $0.29 $(0.02)
Non addressable converters $0.84 $0.64 $(0.20)
Addressable converters $2.76 $3.44 $0.68
'Maximum Permitted Rate
Paragon's proposed 2000 rates are based on a single Form 1205 calculation that was provided to
each of the franchising authorities impacted. However, each of the components of the aggregated
filing is a sum of that same component on Form 1205 filings developed for the following five
Time Warner divisions operating in Texas:
• Austin Division
• Houston Division(East and West, with East being previously operated by TC1)
• San Antonio Division
• Southwest Division
• Waco Division
Therefore, each individual Form 1205 must be reviewed for accuracy and the appropriateness of
any computations.
ANALYSES OF THE FILINGS
Project Objectives and Activities
The project objectives are three fold:
1. Assessment of the completeness of the filings with regard to the information and
documentation that must be filed with the City.
2. Assessment of the reasonableness of the proposed computations in light of FCC
regulation, recent FCC rulings and prior ownership and operations of the system
included in the calculations.
3. Assessment of the reasonableness of the proposed computations in Iight of Paragon's
proposed method of aggregation.
Ms. Melisa Leal
January 28, 2000 EXHIBIT.
Page 3 Page ' -- ot ---
Given these objectives, C2 conducted the following project activities:
• Review of the filings to assess the completeness based on the FCC Form 1205
instructions.
• Review of the filings to identify any issues with respect to the data and/or
methodologies employed by Paragon.
• Submission of follow-up data requests and subsequent review of Paragon's
responses.
• Review of recent FCC decisions that may have an impact on Paragon's proposed
methodologies or the City's alternative actions.
• Development of potential alternatives available to the City in establishing maximum
permitted equipment and installation rates.
Summary of Findings
C2 identified two main issues with respect to Paragon's proposed computations of maximum
permitted equipment and installation rates.The issues are:
1. The computation of the Hourly Service Charge ("HSC") and the monthly lease rates
inappropriately include both the costs and hours related to converter retrieval in the
previously owned TCI systems.
2. It does not appear that Time Warner has instituted adequate quality control measures
to assure that the five Texas divisions follow standard methods by which the data are
derived, accumulated and/or allocated to the Form 1205 computations.
1. Converter Retrieval Costs/Hours in HSC and Converter Lease Rates
Within the Houston Division are a number of previously owned and operated TCI systems that
were transferred to the control of Time Warner in November 1998. Prior to that time, TCI had
filed aggregated Form 1205s that included all its owned and/or managed systems on a national
basis.
C2 reviewed the TCI Form 1205s for these systems for the period 1996 through the 1998. In
1999, Time Warner presented the Form 1205 filing based on information that was provided by
TCI.3 In the 1996-1998 filings, C2 determined costs and hours concerning converter retrieval
had inappropriately been included in the development of the HSC and the monthly equipment
lease rates. C2's argument was premised on (1) these costs (and hours) were not related to "new
activities," but in fact, were related to activities conducted during the period of"unbundling" in
the Form 1200/1205 process; and (2) TCI had not unbundled the costs related to these activities
into the equipment basket (thereby continuing to recover them from the monthly programming
services rates). C2 concluded that allowance of these costs in the equipment basket would
provide for a double recovery from the subscribers served by these systems.
In the 1999 Time Warner Form 1205 filing related to the systems that had been transferred from
TCI, TCI provided Time Warner with computations that did not include converter retrieval costs
or hours. These 1999 filed rates are the rates that were adopted by the franchising authorities.
3 Time Warner's 1999 Form 1205 filing in the Houston East systems was based on a fiscal year end
December 31, 1998.
Ms. Melisa Leal EXHIBIT, TO �' °
January 28, 2000 page Of ..�----
Page 4
However, in the instant filing, Paragon has included converter retrieval costs and hours again for
these prior TCI systems. Not only is the Company collecting from the basic service rates in the
Houston systems, but it is also attempting to collect these same costs from all other subscribers
through equipment and installation rates.
The FCC recently ruled on this issue in DA 99-2227:
MACC disallowed TCI's recovery of costs associated with disconnects and converter
retrievals based on the consultant's finding that these costs were not unbundled from the
operator's programming charge. TCI appealed this action but does not dispute the
unbundling finding. Because an operator cannot include in the equipment basket costs
that were left in the base programming service rates. . . TCI's appeal on this point is
denied."
Therefore, the inclusion of the converter retrieval costs and hours by Paragon in the previously
managed TCI systems should be disallowed in determining the combined divisions' HSC. In
addition, the labor costs assigned to the repair and maintenance of converters should not include
the hours related to the retrieval of converters from the subscribers' premises for these systems.
Based on the information provided, the impact of deducting the converter retrieval costs and
associated hours from the Houston Division East's Form 1205, and thereby reducing the
combined Form 1205 computations, results in no change to the HSC, but reduces the monthly
equipment lease rates as follows:
,.„ • Non addressable converters- $0.64 to$0.62
• Addressable converters- $3.44 to$3.39
2. Apparent Lack of Standard Quality Controls
During the review of the five Texas divisions' Form 1205 computations, C2 noted that the
development of certain data and/or methodologies varied among divisions. For example, some
systems used the actual contract labor costs and others developed an average annual cost based on
average annual jobs times average costs per job. The supporting documentation provided by each
division also varied significantly.
For purposes of the instant filing, it does not appear that the lack of standardization has resulted in
any significant impact to rates(outside of the above issue, and in light of the fact that most of the
rates have been reduced for the 2000 rate year). However, for future filings, Paragon should be
required to demonstrate that a standard methodology is being used, that the divisions are
following such standards, and that the Company has instituted quality control measure to test the
reliability of each division's computations.
SUMMARY OF RECOMMENDATIONS
Based on the above findings and conclusions, the City should consider taking the following
actions:
4 Memorandum Opinion and Order, DA 99-2227, released October 21, 1999, paragraph 18.
Ms. Vleiisa Leal EXHIBIT / T. 4P4/ �3y /1
January 28, 2000 Page of .
Page 5
1. The City should consider disallowing the converter retrieval costs and hours used in the
development of the Houston Division's East Form 1205.
2. The City should consider adopting a maximum permitted non-addressable converter rate
of$0.62 per month.
3. The City should consider adopting a maximum permitted addressable converter rate of
$3.39 per month.
4. The City should order Paragon to issue refunds to subscribers within ninety (90)days of a
rate order based on the difference between the ordered rate and the January 3, 2000,
implemented rate. Interest on the refund amount should accrue to the time the refund is
issued.
5. The Company should be required to institute quality controls for consistency in the
reporting of data by Time Warner divisions should the Company continue to employ this
aggregated methodology.
C2 appreciates having this opportunity to work with the City of Grapevine in review of the Form
1205 rates. If you have any questions regarding this report or need clarifications as to the
recommendations, please contact Ms. Connie Cannady at(972) 726-7216.
Very truly
6NAg1,-.61 yours,
C2 Consulting Services, Inc.
tAtetlt31 I I U /til/u ///I
Page . fP of . /1
Federai Commwucanons Comnuswo Approved by 1B 3.sti I n3
\F.uhmeten.DC 20554
;C11EDCLE As CAPITAL COSTS OF SERVICE INSTALLATION AND NIAINTENANCF,OF EQI'IPMENT AND PLANT
Mai.le.a.ee Other 1. Other 2.
acne and Plant Vehicle. Tools Facilities (Specify below) (Specify below)
ova Doek Value St 1,900,900 14 $7,574,421.87 532.064.00 32226,778.73 56.564.07
+41"''acuminated Depreciation 57,74287588 55,143.783.60 527,240.00 $65,98659 50.564.07
) Deterred Taxes $231,113.18 $477,734.80 $1,326.00 $692.06 (X.47254)
. Net Hook Value(RTC,-Dr( $3,926,911.08 51.951903.47 53,49800 516(1.10008 56,47254
Rate of Return 0.1125
Cat vlanon of Gross-up Rote
11 Federal Income Too Rate 0.15
State Income Tax Rate 0.
13 Net Total Income Tax Rate(tell rG21.IUI x 0211 0.35
14 Adjta meta to Reflect Interest Deductibility
;.to Actual Interest Amount 5288.382,000.00
;.lb Taal Net Asset. S10472;255,000 00
I to Rau Renan on Investment Amount(Gab x F) $1,178,128,687.50
:.t.l iaereo Ded++cubility Fedor(G4a304c) 0.2448 - ...
Effective Tax Rate[03 x(1-G441/1C-Corps skip to 071 o.2lrt3
16 AATntmena for Non-C Corporations •
164 Base Reran on investment Amount)G4c) 41,178,1 N,687.50
161, Ihetrtbtniau 51.046.971.000.00
16 Contribtaaona(may not exceed 0661
6,1 Retmru Sub oct to Income Tae[G6a-G6134GOc) $131,157,687__50
Pie Returns Percentage Sulam to Income Tex(06d/06a[ 0.1113
.y !rtrnn-lJp Rate(C.Cogxi:1/(1-(i51(Tlher 14 1405 x G6e11) 1.0303 •
wal-lip Rate of Return IF z 071 0.1159
..ettm on ineshttent(homed-lip for Taxes(E z FI) 5455,771.73-11 5226,3627673 S405 4563 $18,557.3418 47502378
r
Cement Provision for Depreciation 51,867,925 88 5-509,779.01 SI,474.19) $26,16882 $0.00
Annual Capital Costs(1+1( 52,323.097.6141 5736,141.7773 51,879.4563 S4.1,776 1618 5750.2378
GRAND TOTAI.on of tine K e.tri..( B3,106-49(.2472
Boa 1.
Specify.Other I.
Specify Other 2.
iCIlEDII.E Br ANNUAL OPERATING EXPENSES FOR SERVICE INSTALLATION AND MAINTENANCE OF EQLIPSIENT
Salaries Other I. Other 2.
&Benefits Supplies Lrtilities Other Taxes (Specify below) (Specifybelowt
.Anatol Op.Expenses for Svc.Install.and\taint.of Equip. 515,625.179.90 S897317.95 $817,520.51 5628.941.21 $7.670,956.56 SI.868.821 48
3 ,GRANI)TOTAL.(..m of Line A e.trie.) 827.504.040.64
Boa 2.
Specify.Other 1.
Specify.Other 2.
FCC Form 1205
Fag.2 Excel a.0 for\V i lows lune 1996
EXHIBIT, 4 TO C
Federal Communications naancal:coa Co a:: cal Page —I— of _a. Approved by,'\lB ,644,703
WVashingtot,D C 20554
if t. ""'LE C:CAPITA(.COSTS OF LEASED CUSTOMER FOL-IP>IENT
met Remote I Remote 2 Retnote 3 Converter 1 Converter 2 Converter 3 Other Fwlnip
al M1aurtenance'Setvice horn(Attach Explanation) 17099 13314. 167683.
lien,,
total 0 of Units in Service 691039. 80582. 976606.
i7 Gross Book Value S2.849.103.75 54,977,927.56 5190,439,961.47
Av.-annulated Depreciation 54,911.860.22 54.779.663.48 377,741.818.15
F Deferred Taxer (5296.781.91) (553,137.37) 51.486384.20
, tier Book Value[lNE•F(I 33,234025 44 50110 80.00 5251,40145 8106,211759.12_ 5100 5100
i Grossed-Up Rate of Reran[From Schad.A,Line f11 0.1159
Rohm on Im'estrnent uroned-1'p for Taxes[Cr x HI 5371.858.7471 50.00 50.00 529.19).1643 312,542,920.6419 50.00 SO.00
Curettt Provision for Depravation 51,485.731.40 3175,550.36 S22.205.979.32
Annual Capital Costs[I+71 51.860,590 1421 80 00 50.00 5204,690.5243 334,748,799.9619 30.00 50.00
1, GRAND TOTAL Isom of Line K enrrdeal 536,814.080.6333
Box 3.
SCHEDULE Dr AVERAGE ITOLRS PER LNSTALLATION
\ Average Hoorn per Unwired Horne Installation:attach an explanation) 0.
r Average Horan per Pre-Wired Home Installation(attach an explanation i 0.
Acetate Hon per Additional Connection Installation at Time of Initial Installation(attach an explanation) 1)
1 Average Homes per Additional Connection Installation Requiring Separate Installation(attach an explanation) 0.
Other Installation(Iry Item T;pet
(Specie-:
5.verage Hours per Installation(attach an explanation) 0
ass. ..(Sprcifv-1
Average Hours per Installation(attach an explanation: 0.
item 3.(Specify-)
Average Hon per Installation(attach an explanation: 0
•
FCC Fenn 1205
F5.80 3 Excel 4.0 for`Vmdows lune 19%
EXHIBIT__ TO/ , ' c1% , 382
Federal Communications Cdanmrsuon (/ of // Approved hay- ,303 3060-n:tit
Washing.%D,' 2,1334 Page J} of !/
(5 rrrKSifEET FOR CALCULATING PERMITTED EQUIPSIE`4T.A.ND f.YST:U.I.ATIO;1 CHARGES
"spry Service Charge
.:apical Coats of Installation and Maintenance[Schedule A.Box I I S3J06.595.2472
Kal Annual Opening Expenses for Installation and Maintenance[Schedule B.Box 2] $27y4,040.64
instrown Sal Capital Coats and Operating Expenses 6r[rutallation and Maintenance[Lox I is Liu 21. S30,610.635.8872
I. Customer Equipment and Installation Percentage(attach an explanation). I.
.Annual Customer Equipment Siamcmatce and Installation Cents,Excludntg_Cmb of Leased Equipment[Line 3 is Line 4] $2991 1.633.8872
Total Labor Haas for Maintenance and Installation of Customer Equipment and Services(attach explanation) 1004533.4
Hourly Semite Charge(USC)(Line S'Line 61 529.7766
METHOD OF BILLING FOR LS IST.U.LAFIONS(place an"1"in the appropriate boa)
Installations billed by the horn based on the HSC calculated in Luse'.
I Installations baled an a standard charm
STEP B.Installation Charge
S Uniform HSC for all installations(From Step A,lute', I suit
CR
> Average Charge for Installation Typos
a Unwired Home Installation
at HS_[Line 71 529.7766
a2. Average[lours per Cnwued Home Installation,Schedule D.Lure Ai I.
a3.Charge per Unwired home Installation[al x a21 529.7766
b Pee-wired Herne Installation
bl HSC[Line 7] S2 9.77766
92.Average Hours per Pre-wired Home Installation(Schedule D.Line RI 0.58
b3 Charge per Pre-wired Home Installation[hl is b2[ SI 7 2705
c Additional Connection Installation at Tune of Initial Installation
c .HSC[Line 7] S29.7766
c2.Average Hours per Additional Connection Installation at Time of but. Install.[Schedule D.Line Cl 0.45
c3.Charge per Additional Connection Installation at Time of Initial Installation[cl x c2] SI3.3995 •
it Additional Connection Installation Requitals Separate Installation
dl IISC[Line 7] 929 7766
;ry-- d2 Avg Hours per Additional Connection Installation Req Sep.Install.[Schedule D,Liu D] 0.92
13 Charge per Additional Connection Installation Requiring Separate hstallatron[dl x 421 827.3945
'#,..:/her Installations(As specified in Schehde D,Lute 0):
el.HSC[Line 7] $29.7766
e2.Average Ham per Ie tallation of Item I [Schedule D,Lme E.[tens I] 0.58
a).Charge per Installation of Item I[el x e2] $17.2705
e4.HSC[Line 7] $29.7766 •
e5.Average(Sours per Installation of Item 2[Schedule D.Line E,Item 21 I.
e6.Charge per Installation of Item 2(ea is oil $29.7766
e7.HSC[Line 7J S29.7766
eft Average Horns per Installation of Item 3(:Schedule D.Line F.hem 31 0
e9 Charge per Installation of item 3[e7 x et 1 $0.00
FCC Fop 1205
Page 1 Excel 4.0 for Windows /line 1 996
Federal Commiuncations Commission EXHIBIT " ' TO "''1 , i eed-g9 Approved by OMB 3060-0'03
Washington,I)C. 20554
Page , of /1
STEP C.Charger for bared Remoter a b c
4, "'^white separately for each sigaifiraath different type) Remote I Remote 2 Remote 3
,faiMerwtce/Service Haas[Corresponding column from Schedule C.Lau}3[ t 7099. - o. 0.
.I1,r„7) S297766 $297766 S29_7766
gal Maimawtce'Scrvice Cast[Line 10 x Lute I I) 5509,150.8434 $0.00 SO.00
,meal Capital Costs[Corresponding column from Schedule C.Line RI SI,660,590.1471 50.00 S00)
14. Total Cwt of Remote[Liu 12+Line 131 $2.369,740.9905 $0.00 $0.01/
15. Number of film in Service[Corresponding alarm from S.hahile C.Line C] 691039. 0. 0,
116. Unit Cost[Lune 1,1/Line I5] .53.4292 50.00 $0.00
17. Rate per Month[Line 1611211 50.2858 50.00 SO 00
!STEP U.Charges for leased Converter Roses a b c
1 (Cakalate separately for each rittailiieantly different type) Converter I Converter 2 Converter 3
i I0. Total Maintena nveiService Haas[Corresponding column from Scholule C.Late BI 13314. 167683. 11.
19. HSC[L6te 71 529.7766 $_29.7 766 52 9.7766
20 Total Maintenance/Service Cast[Line 18 x 191 5396,446.2442 $4993,0370109 $0.00
21 Annual Capital Costs[Corresponding ding colunm frown Schedule C,Lute R[ 5204.690,5213 S34,748,799.9619 $0011
122. Total Cost of Converter[Lute 20+Liu 2.11 5601.136.7684 539,741,837,0322 50.00
23. Number of Units in Service[Corresponding column from Schedule C.Lute Cl 80582. 976606. 0.
24. Unit Cost[Line 22/Line 231 87.4599 510.6938 $0.00
1:5. Rate per Month[Line 24/(1211 50.6217 $3.3912 SO(0
!STEP F.Charges for Other Leased Equipment
26. Total Maintenance/Service Hours[Corresponding column from Schedule C.Line B1 0.
HSC[Line 11
S29 7'66
I.8. Total Maintenance;Service Cost[Line 26 x Line 271 $11.0O
29 Annual Capital Costs[Corresponding column from Schedule C,Line El Si(8)
130. Total Cost of Equipment[Line 28-Luxe 291 woo
I 11 Ntonber of Units in Service[Corresponding column frotn Schedule C.Line C1 0.
t'. Unit Cost[Line 3O3.ine 311 S0-00
13_ Rate per Month[Line 32/(12)1 _ S0,00
I SIE(TIOD OF OO.LLNG FOR CHANGING SERVICE TIERS OR EQUIPMENT[place an"a"in the appropriate bosh
as a Nominal Charge[Enter the nominal charge in Line 34)
as a Unif hart Hourly Service Charge
S an Average Charge Enter the Average Howl for Changing>rrnce Inn in Line 366.7
Charges for Chawsjng Service Tien or Egaiparot
ninal Charge for Changing Service Tiers
does„,,y:von the an escalating scale of charges,place an'i in the box at the.right.
OR
35 Uniform Healy Service Charge n/a
OR
■36. Average Charge for Changing Service Tiers
36a.DISC[Line 71 529.7766
36h.Average Hum to Change Service Tien 1
36e.Average Charge for Changing Service Tien flute 361 x Line 361)[ $29. 766
44,,,,,,ai
FCC Form 1205
Page 5 Excel 4.0 for'Windows June 1996
Federal Ccm municano s Commission Appurved by,_.N11-3 34 x'r,..,-J3
ls:ashingtrn,D C. 2.n5:.l EXHIBIT TO Q�%dn�'-1 r `J
Page _.. /D of • %/
:ET FOR CALCULATLNG TOTAL EQUIPMENT AND ENSfALLATION COSTS
sal Capital Cow oflnaallation and Maintenance jSdtethtle A,Box 1) -$3,106,595.2472
aal Annual Operating Expenses for hattallation and Maintenance[Schedule B,Box 2) 527.504,040.64
• iota'Annual Capital Conn of Installation and Maintenance(Line I+Line 2) S30.610,635.8572
Customer Equipment and Installation Percentage(attach explanation).
.Annual Customer Equipment Maintenance and Installation Costs,Excluding Casts of Leased Equipment $0.0)
(Line 3 x Line 4)
Total Capital Coss of LEI Customer Equipment[Schedule C,Box 31 S36,814.080.6333
Annual Customer Equipment and Installation Costa[Line 3+Late 6) $36,814,080.6333
• Pe-tentage Allocation to Franchise Area(see mtntctjons)
Allocated Artmod Equipment and Installation Coe'Line 7 x Line R) SO 00
\tenthly Equipment and Installation Cost(Line 9/ 51)00
I Number of Basic Su6saibm m Franchise
2. Monthly Fgmpmert and Installation Cost per Subscriber)Line 10/Line 11 ROIV/0!
3 Inflation Adjustment Factor[See hetnxtcmto)
t. Adjusted Monthly Equipment and Installation Cost per Subscriber[Line 12 x Line 13) RDIV/0P
FCC Form 1205
Page 6 Excel 4.0 for'Windows hate 1996
Fercml Commis.,...ns Commune. EXHIBIT-2. TO 4O2 9 .\1 roved by ii,xtB U s..O-i 1;
Wuhmgnm,D i7 2U541 Page ._._1/ of --IL
-AIMARY SCHEDULE
<? r .ipateat toad Iastallatiee Rates 'Permitted 1Agog)
.go for Cable Service Installations
Hourly Rate(Step A,Lira 71 I &e1
b.Average Installation Charges:
I.installation of Unwired Homes[Step B.Line 901 $29.78
2.Installation of Peesrirel Homes(Step B,Line 9631 $17.27
3.Installation of Additional Connections at Tune of butial Installation(Step H.Line 9c3( $13.4t)
4.bwallatien of.Additional Comrectaaa Requiring Separate Irotall(Step B,Lire 9,L71 $27.39
x Other Inctallarias Irpeeifyt(Step B.t.Mel get.9n0,9e91 -
a $17.27
b. $29 78
e $000)
. Monthly Charge for Lease of Remote Controls(Step C,Line 17,columns a-c(
Remote Control Type 1' SO 29
Remote Control Type 2- 50.)8)
Remote Control Type 3. 5)1.(X)
Monthly Charge for Lease of Converter Boxes(Step D,Lase 25,columns a-c(
Converter Ilex Type 1 $0.62
Convener Box Type 2. $3.39
Converter Box Type 3:
•
Monthly Charge for Lease of Other EquiQrsent(Step F.Lire 331
Other Equipment(Specify) $0.00
r'haree for Changing Tim t if any)1 Step F,lane 34.35 or 36c $29 78
i
.ABOR COST AND POLICY CHANGES 1 .
:dicate your answer to the following three questions by placing ant's'in the appropriate box
Have you included the labor costs associated with subscriber cable drops in your charges for initial installation?
sr-, -i ES
,r,,.a you capitalized the labor costs associated with subscriber cable drops'
YES
NO
If you have filed this Cons before,have you changed any policy,e.g.cost accounting or cost allocation that causes an increase in the toss
included its the cenputation of equipment and installations harges'
YES(You must attach a full explanation)
NO
ERTIFIC.\TION STATEMENT
W'E.LFLh.FALSE STATEMENTS MADE ON TIES FORM ARE.PUNISHABLE BY FLNE AND/OR IMPRISONMENT
(U.S.CODE TITLE 18,SECTION 1001 i,ABHOR FORFEITURE(U.S.CODE,TITLE 47,SECTION 5031.
(certify that the statements made in this form are true and correct to the bet of my knowledge and belief,and are made in good faith
Name of the Cable Operator Signature
Date Title
•4:0:::.04
FCC Form 1205
Page 7 Excel 4.0 for`Windows June 1996