HomeMy WebLinkAboutORD 2001-036 �.
ORDINANCE NO. 2001-36
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS ESTABLISHING THE MAXIMUM
PERMITTED BASIC SERVICE TIER RATES CHARGED BY
AT&T BROADBAND CABLE, DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas ("the City") 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") (formerly recognized as Paragon
Cable); 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, 2000, the City of Grapevine received
AT&T's FCC form 1240 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 1240 to
determine the reasonableness of the proposed basic service tier
rates, attached hereto as Exhibit "A".
3. That AT&T instituted a rate adjustment based on its Form 1240
filing effective January 1, 2001.
�
4. That based upon the information received from AT&T and
recommendations from C2 Consulting Services, Inc., the City
concludes that the rate proposed by AT&T for maximum permitted
service rate is 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. AT&T's submittal of the FCC form
1240 received on or about October 1, 2000, 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. AT&T's request for maximum permitted basic service rate of $10.01
included in its Form 1240 filing is hereby denied.
2. Based on the information received from AT&T and recommendations from
C2 Consulting Services, Inc. which is attached hereto as Exhibit "A" and
included herein for all purposes, the maximum permitted rate for the basic
service tier is established at $9.82 effective June 1 st, 2001.
3. AT&T is hereby required to refund to its current customers any amounts
charged to them based on the Form 1240 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 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 15th day of May, 2001.
APPROVED:
..� ..'-�
William D. Tate �
Mayor
ORD. NO. 2001-36 2
ATTEST:
�n a Huff
City �ecretary �
APPROVED AS TO FORM
Joi��� F. Boyle, Jr.
City Attorney
ORD. NO. 200�-36 3
EXMI91t� TO �� "��
E - CiNS�JLTI�G �E1�'�I�E�, IN�G. P�ga �.L of .-G�,..—
7 8U 1 Pen cros s �9��� �26-�216
Dallas. Texas �5248 �(9��� �26-�2�1�[fax]
May 9,2001
Ms. Melisa Leal
Assistant to the City Manager
City of Grapevine
200 South Main
Grapevine, Texas 76051 "'
Dear Ms. Leal:
Pursuant to your request, I have reviewed the information provided by AT&T concerning the use
of the fourth quarter 2000 in#Iation factor for the Form 1240 projected period. In my opinion, the
" Company's request to refresh the inflation factors used in my January 2001 report to the City is
reasonable.
��.,�
As noted in the report, I recommended that the City use the most recent inflation factors
available. At that time, the FCC had released the third quarter 2000 factor (1.62%). In April,
2001, the FCC released the fourth quarter factor of 1.99%. Replacing the 1.62% with the 1.99%
for the projected period computation results in a maximum permitted basic service rate of$9.82.
I recommend that the City adopt the revised $9.82 basic service rate. Any variation between the
1.99% and the actual inflation factors during the projected period (4�' quarter ZOQO through 3'�
quarter 2001) will be "trued-up" in the next filing based on the actual inflation factors for those
respective quarters.
Please call me if you have any questions.
Very truly yours,
Constance T.Cannady
President
��,�
EXHIBIT� TO ��O �"� �
ONSULTING SERVICES, INC. Page �_ ot .�-
7801 Pencross Ln. Tel. (972) 726-7216
Dallas,Texas 75248 Fax (972) 726-0212
January 1Q, 2001
N1s. Melisa Leal
Assistant to the City Manager
City of Grapevine
PO Box 95104
Grapevine,Texas 76099
Dear Ms. Leal:
C2 Consulring Services, Inc. ("C2")has completed its review of the FCC Form 1240 submitted to
the City of Grapevine, Texas(the"City")by Paragon Cable("Paragon" or the "Company") on or
about September 30, 2000. The follo�vino report provides a brief discussion of the issues noted
during the review and C2's recommendations regarding potential City Council actions in
response to Paragon's proposed basic service rate.
This study does not constitute an esamination of the fina�icial condirion of Parajon or its parent
��� company. Therefore, C2 cannot and d�es not express any posirion with regard to the accuracy or
validity of the financial information provided by Paragon during the course of flie analyses.
����
OVERVIEW OF THE FILING
According to the information provided by Paragon, the basic service tier continues to include
nventy-two (22) channels. Prior to the January lst implementation of the filed rate, ' Paragon
was charging $9.36 for basic service prograT„ming based on the City's approved Form 1240
computation for the 2000 rate year. Based on Paraaon's proposed Form 1240 filing of$10.01, the
Company has increased the basic service rate by $.65 per subscriber per month. The rate year is
January 1, 2001 through December 31, 2001.
There are three major factors that explain Paragon's proposed increase in the basic service rate:
1. The difference between the actual rate charged and the True-Up Period rate as
adjusted for inflation and number of subscribers is approximately �22 higher than
the True-Up segment built into the prior Fonn 1240 computations — impact $.22
increase; 2
� Based on para�raph 92 of the Thirtee�rth Order o�r Recofrsideratiar, FCC 9�-397, released September 22,
199�, a cable operator may implement a proposed rate ninzty(90)days after it has filed for the rate change
���ith the franchising authorit}�. However,the franchisin�authority has one year from the date of the filing
in which to render a final decision. Such decision is retroactive to the beginning date on���hich the
proposed rate was char;ed.
z `In lar;e part,this is due to three factors: (1)a low�er rate of 9.06 actually char�e durin�the first three
months of the true-up}�eriod (Oct 1999 through Dec 1999);(2)a reduction in the number of subscribers of
I�1s. Nlelisa Leal EXN181T_� TO �'c���'�'f��'
� January 10, 2000 Page �....z._._ Of I4�
.. Paje 2
2. Paraaon proposes to use a higher inflation factor in its current Form 1240 true-up
: period than what was estimated in the projected period for the 1999 filin� — impact
�.15 increase; and
3. Paragon proposes a�i additional projected year of inflation in its current Fonn 12�30
that will be trued-up next year pursuant to FCC regulations—impact$.2S increase.
ANALYSES OF THE FILINGS
Project Objectives and Acdvities
The project objectives are tlu-ee-fold:
1. Assessment of the completeness of the filings �vith reaard to the infonnation and
documentation that must be filed with the City.
2. Assessment of flie reasonableness of the proposed computations in liaht of FCC
regulations, and FCC rulinas.
3. Assessment of the reasonableness of the proposed computations in li;ht of City
actions resultiny from analysis of the 1999 Form 1240 cotnputations and subsequent
rate order.
Given these objectives, C2 conducted the followin�project activiries:
1. Revie�v of the filii�gs to assess the completeness based on the FCC Fonn instrucrions.
��=_� 2. Review of the filings to identify any issues with respect to the data and/or
methodologies emplo}�ed by Paragon.
3. Subinission of follo�v-up data requests and subsequent re�-ie�rr of Paragon's
responses.
4. Revie�v of FCC decisions and City orders that clearly have an impact on Para�on's
proposed methodolo;ies.
5. Development of potential alternatives available to the City in establishing matiimum
pennitted basic service rates.
Summary of Findings
C2 identified two main issues with respect to Paragon's proposed Form 1240 com�utarion. These
issues are identical to the issues addrzssed by the City dtirin�the 1999 Fonn 1240 analysis:3
l. Paragon inappropriately included estimated subscribers in its True-Up Period
computations.
approzimatel}�4°.0; and(3) an increase in the tnie-up intlation ratz that not only effec�.the amount ofthe
tnie-up,but also become an inte�rated component of the total rate goin�fonvarci.
" ' In the 1999 Form 12�40, Para�on ii�ciuded estimated subscribers and e�ternal costs for the period October
1999 throu�,h Dececnber 1999 in order to ha��e a fiill t�r�el�•e month period true-up. Ho�G�ever, the City
poin:ed out that such`'estimates"�vere not appropriate in light of the FCC re�ulations re�._*ar;?in�True-Up
Period compiitations. Therefore, Para�on
I��1s. I�-Ielisa Leal EXHIBIT� TO 1�L•Y���-�
lanuary 10, 2000 p�ge � Of 1a��' —
.. Pa�e 3
2. In conjunction with correcting the true-up period, the inflation factors to be applied
during both the true-up period and the projected period need to reflect the inost recent
information available.
Discussion
1. Use of Actual Information For True-Up Period
As discussed in the January 28, 2000 C2 Report to the City, the Fomi 1240 inethodology
uicorporates a series of calculations that involve an accounting of the actual costs previously
projected for the prior rate year and an allowance for projecring certain cost increases/decreases
for the upcoming rate year. In each annual Fonn 1240 filin�, die projections from the prior
computation are to be "n-ued-up" to actual costs/subscizbers, and any over/under-collecrions are
taken icito account in the de��elopment of the new rates. '
In the Thirleenth Order ofr fZeconsideration, the FCC noted:
Because the true-up will examine ��hat costs were actually incurred, it can only exainine
costs as of the date the Form 1240 is filed. As a result, and because the Fonn 1240 must
be filed at least 90 days before d�e proposed inerease is scheduled to t11:e effect. . . and
the projections are inade for the year beginnina with the proposed i�nplementation date,
ttie period applicable for the true up will not exactly coincide with the previous year's
projections. For example, if an operator files annually on October 1 for rates to tal:e
�� � effect on January 1, the true-up will cover the period from the previous October through
September, but the projections will appIy to the period January to December. �
Para�on's 1999 filing�vas submitted on September 30, 1999, for a rate year be�irming January 1,
2000, and �vith a proposed tiue-up period from January 1, 1999, throu�h Deceinber 31, 1999,
e��en thouah the infonnation available to Para�on at the time of the filin� was only tlu-ough
September 30, 1999. Based on the FCC regulations as well as FCC rulings concernin� this issue,
the City ordered that Paragon could only"true-up"throu�h the actual information available at the
time of the filin�.'
�Vith the instant filing, Para�,on again has used estimated data for the last month of the true-up
�eriod (Septernber 2000). Even the Fonn 1240 filing is dated on September 28, 2000, hvo days
before the close of the month. In C2's opinion, only actual data froin the entire month of
September 2000 should Ue used in the True-Up Period.
The impact of chanjin� the subscriber and e�ternal cost data from the estim�tes filed to the actual
data has an insignificant impact on the basic service rate, but should be mandated ��iven the FCC
reeulations.
' �` See para�,raph 79, footnote 1�1, FCC 9�-397, released September 23, 199�.
' The FCC has issued a number of decisions concernin� this issue, many of«�hich ha��e been related to
filin�,s stibmitted by Paragon in other jurisdictions. For erample sea Orders, D:� 97-1 S�3, released August
29, 1997(f 9)and D.A 19�6, released September 9, 1997(j 9).
Ms. Melisa Leal
� January 10, 2000 �h� o,��, /���
Pa�e4 EXHI8IT� TO
� ` Page �,.... of
2. Adjustment to Inflation Rates
The Form 1240 methodology allows for an inflation adjustment to be projected for eacti rate year.
Such projection becomes part of the true-up computarion in the next rate filing. Based on FCC
regulations, a cable operator is to use the most recent information published Uy the FCC
concernin� quarterly inflation factors to be applied.6 At the time of Paragon's cun•ent Fonn 1240
filing, the latest published inflation factor for any of the true-up period in question «�as for the
first quarter of 2000. Para�on used diis factor of 3.00% not only to true-up t}ie nine-inonths of
the true-up period, but also to project for the t�velve months ended December 2001.
On October 4, 2000, �vhich is shortly after Paragon filed its cunent Fonn 12�0, the FCC
published the second quarter inflation factor at 2.40%. On January 9, 2001, the FCC published
the third quarter of 2000 rate of 1.62°�0. These factors should be used for the second and third
quarter computations in 2000 �vidi the 1.62°ro factor used for the Projected Period.
Typically, if the uiflation factor used is the oi�ly issue found in a franchising audiority's review of
a Form 1240 filing, ttte FCC has found in favor of the cable operator using what �vas the most
recent data a��ailable at the time the filing was made. The FCC detailed this policy in the Third
Order on Reconsideratioy� as follows:
�Ve share National Cable Television Association's concern that rates adopted in an effort
to comply witli our rules as quickly as possible may become unreasonable solely as a
result of using later data to refresh the calculations. Operators should not be penalized
'� ` for m�inD good faith attempts to comply�vith our rules in a timely manner. �
��t°� When current rates are accurately justified by analysis using the old data (�nd that data
�r-as accurate at the time), cable operators will not be required to change their rates. . .
When current rates are not justified by analysis using the old data (so that a rate
adjusrinent would be necessary in any event), cable operators�vill be required to correct
t}ieir rates pursuant to current data. In these circumstances, the resultin, rates must be
based on current data? [emphasis added] y
Clearly, if the franchisinb authority finds adjustments need to be made other than those
attributable to the inflation factors, the FCC has found that the inflation factors can be adjusted
with data that became available subsequent to the date of the filin;. The FCC's position on this
issue is evidenced in the above cited Portland Order (DA 97-1852). In that decision, the FCC
found e►-ror �r-ith Paragon's use of estimated data in its true-up computation for CPST rates and
also made an adjushnent to reflect current inflation factor data:
Tliis adjustment required that ev�refresh Operator's inflation factors R
Th�refore, because Paragon's rate year 2001 Form 12�0 hue-up period should Ue adjusted to
reflect achial September 2000 subscriber and cost data, the inflation factors for bath t�ie true-up
peciod a��d the projected pe�iod need to be adjusted to include the most cu�Yent data ati�aiYable.
Th: impact of mal:in� such adjushnent is to reduce t}te cui7ent Fonn 12=�0 proposed bssic service
rate calculation by appro�imafel}' S.2?.
`FCC I=urm 12-�0 Inst«ctions, Part I: `todule C [Re�,�ised Jul}� 1996].
�.. .
Sez �hirc(l�ref��•arRccoirsidcrntiv», FCC 9-�-40, released �farcll�0, 199-4, parasrapils 93 and 9�4.
` See Orc�er, DA 97-1552, released Auuust 29, 1997, paragraph 10.
1��1s. l��ielisa Leal �� ���
J�u�y io, 200o EXNi81T� t0 ��-
. Page 5 Page _l�.,.--- Ot .,.�••-
SUNINIARY OF RECONI�ZENDATIONS
Based on the above fmdings, C2 recommends the following adjushnents be considered by the
City in detemunina the ma.�imum permitted monthly basic service rate:
1. The True-up Period should only reflect the actual subscriber and cost data for the
month ended September 30, 2000.
2. The inflation factors should be adjusted to reflect the published factors through t�ie
third quarter of 2000.
3. The City sliould consider ordering a maYUnum permitted rate for the Form 1240
computation of$9.79 rather than the$10.01 proposed by Para�on.
4. The City should order Paragon to issue refunds to subscribers�vithin ninety (90) days
of a rate order based on the difference benveen the ordered rate and the January 1,
2001, implemented rate. Interest on the refund amount should accrue to the time the
refund is issued.
C2 greatly appreciates havin� this opportunity to work �vith the City of Grapevine. If you have
any questions reDarding tlus report, the project acti��iries, or any of the recommendations, please
contact Ms. Comiie Caiuiady at(972) 726-7216.
�-�� Very truly yours, �
�,w,.�� C� ��(Yl,g�.� • .�/w `� �/�'�L.
� �
C2 Consulting Services, Inc.
�-
'�:ti3........8
,.,,
� EXMi�iT..�... T�.�..C�����..�
Fcdcral Communi.atioro Commienicm �A.7e �"'�' O" � Approced by O\fII 3W0-06.�� .
W'a.h�ngtoa DC 2053a
8.Status of Prcvious Filing of FCC Form 1210(cnt�r an-z'in ihe appropriate boz)
YES NO
,, .bas an FCC Form 1210 been previoiuly f�1ed with the FCC?
If yes,enter the date of thc must recent f�7ing: (mm/ddlyy)
YES `o
�b.Hac an FCC Forsn 1210 been previoucly filed with the Franchaing AuthorityT
If yes,entathe date of tho mostrecentfding: ���d�YY)
9.Status of FCC Form 1200 F�7ing(enter an'z"in the appropriate boz)
YES �0
a.Has an FCC Fucm 1200 been previously fded with the FCC?
If yes,enter the date filed (mmlddlYY)
YES �o
b.Ha en FCC Form 1200 Ueen previously filcd with the Franchising Authority?
If ya,entu the date f�7ed: {mmlddlyy)
10.Cablc programming Serviccs Complaint Stntus(entcr an"x"in the appropriate boz)
1'ES `�0
a Ls this form Ucing filed ui resporae to an FCC Forni 329 complaint?
If yes,enter the date of the complaint (�mlddlYY)
YES h0
11.is FCC Form 1205 Being Included With 7'his F�1ing
12.Selection of"Going Forward'Channsl Addition Methodology (enter an`z"m tho appropriate boz)
�Check herc if you are using the original niles [htARKUP METHOD].
�Check here if you ere using the new,altemative niles[CAPS METHOD).
If using the CAPS METHOD,have you electcd to revise recovery for tES ho
channels added duru�g the period blay 15,1994 to Dec.31,199�?
13.Headend Upgrade Methodology
!tOTE:•Ope�s/ars'aruslcertilvlolbe Coo�au'sriaolbe�cligibi/il,vlo uu/dis up�rrde are16cdo/a�v�vd altac6 av eguipmenl b'sI rnddeprccialivn schedu/e.
.�� .
�Check hcre if yuu are a qu�lifying small system usu�g ihe streamlined headend upgrade methodology.
:� Part I: Preliminary Inf ormation
Module A: Maximum P�rmitted Rate From Previous Filing
� e � a �
I.ine Line Descri lion I3asic Tier 2 Ticr 3 Ticr 4 Tier 5
A1 Curtent\laximum Permiucd R�te 593�63
Module B: Subscribershi
a b c d c 1
[.ine Line Dcscri lion I3asie Tier 2 Ticr 3 'I'ier 4 Ticr 5
I3t Aceragc SubscribcrshiP ForTrue-Cp Pcrial 1 9,833
J2 Average Subscribcrship ForTrue-[;p Pcrial2
E33 [stimaled Averaoe Subscribership For Projected Period 9.89�
Module C: Inflation Information
Lioc Line Descri lioa I
CI L'adaimed Iuflatiou:Optratcr Switching From 12tOTo 1240 , , t.r,:�':
C2 C`nclaimed[nflalion:C'nregulated Openlor Responding lo Ratc Complaint i.G�!:
C3 infla�ioo Factor ForTtve•L'p Periocl 1(��'ks 1] � �n=-=
C4 Icflalion Fador For Ttue-L"p Pcrial2[��'ks]J
�5 Current FCC Iuflatiun fac�or � ��� �
Module D: Calculating the Base Rate
a b c d �
l.inc Lioc Description I]asic Tict 2 Ticr 3 Z'ier 4 l'icr 5
DI Cur:cot Ficadend Cp;rade Sagmmt 50.0�0 �
J? Currenl Pxteroal Cos�s S.��meoi S�''�'-� I
��3 Cu:tcnt Caps JfethcxJ Sxgmwt �•�A �
;a Currcnt�Sarkup�fe�hed Se;men� SO.0000 �
�'� Ca�ent C6annel>lo�cmcci and Deleiiun Sepment SO•UCCO
�D'o Curcot TrurL'p Stgr�ect ,,;;,. 50.019-{ '
FCC Ferr.�i_'�
;.i..,
Yay.: �!ic:c:a(i Fs:cl�1..^,t':nic:: .i.,• : .
EXHtBiT_11_. TO � �e0 ��
FCtj TeI CORVfILi11CaI(ON COIIIRIIlf1011 Pa98 � O f �Z Approved by 0�43 30G6�C6A:
R'ashingtoa DC 2055�
U7 Currcat fuflation Segmcnt ����'
n.S Base Rate[AI-DI-D2-D3•D4D5-D6�D7� �+� 59.0011
' Part II: True-Up Period
Module E:Timing Information
����,���. I_ioe Dexri tioe
F;l ��'hat Type of Trua•C1p 1s IIeiug Per{ormed?(Ansner'1','2'.or'3'. See Inslructiom Cor a descriQtion ot ihex�ypes.) '
II'I'.go to Module I. II"2',�nswer E2 aad E3. If'3',ans�vcr E2.E3.E4,aad E5.
l2
E7. humbcr o[\tont6s in�6e Truc-Up Yeriod t
I?3 Numbcr of\[omhs bclwecn ihe end o[TrurUp Pcrial 1 and the end of the mosi recenl FYojeUed Period �
E4 Itiumbet o!?�fonths in True-Up PeriaJ 2 Eligible[or Inlcresl �
Ei Numbcr tif\fouWs True-Up Period 2lneligib�e for Intercst �
Module F: Maximum Pcrmittea Ratc For Truc-Up Poriod 1
a b � d `
Line Line Descri tion Basu Tier 2 Tier 3 Ticr� Ticr 5
FI Gps�[ethod Segmenl ForTnu-lip Pcriod I(W�s 2]
F2 \fakup�fe�hal Segmen�For TrurUp Period 1[W�s 3J 50.0000
F3 Chau�h•mn�Deletn Segmeni For True-lip Periocl l[�Vks'4/SJ 50.00
Fa T�ue-lip Periud t Rate Gtigib(e For Iutlation(DS+Ft+F2+F3] 59.0011
FS ta[luion Segmen�torTruc-Cp Period 1[(F4•C3)-F4] 50.2021
F6 Heaclend Upgredc Segment For True-Up Perioc!1[�1fs 6J
F� E•xtemalCoslsSegmentForTrue-UpPeriodl{Wks7j SD•24�9
FB Truc•L'p Segment For True-Up Pcriod 1 50.0203
F9 Dfax Perm Ra�e(or True-tip Pcrioc!�(F4+F�+F6+F7+F8] 59.4693
Module G: I�faximum Pcrmitted Ratc For True-Up Period 2
• b � d `
l.ine Line Dexri tion Basic Tier 2 Tiet 3 Tier 4 Tier 5
_� -�'. Caps\Ie�hal5egmeut FarTrurUp Periaf 2[Wks 2)
'_ biarkup Jfet6od Segmenl For True-L'p Pcria12[�Vks 3J
,�„�3 Chan\Ivmnt Deletn Segmcnt ForTtue-Up Periud 2�Wks'4lSJ
G4 Tl;Period 2 Ra�e Eligible For Inflation[DB+FS+Gl+G2+G3]
GS Inflalion Segment for True-L'p Perial2[(G4'C4pG4J
G6 Headcnd lipgrazle Segment For True-Up Period 2[�Vks 6]
G7 External Cosls Segment ForTruc-Up Pcrioc7 2[Wks 7)
G8 True-Up Se�ment For Tnu-Up PerioJ 2
G9 \(ax Pcrtn Rate Cor True-Up Peria12[G3+Gi+G6+G7+GA]
;�.�
�
f'CC F�n:::'-
��,,� 3
�lic:�s.0 Ex:!4.0�':r,ion la:s;.�.��._
«i'.n-
EXHIBIT_1_. TO �'.�:s-s�?�f-�,�
Fcd Tal Communicaticm Cemmission pags � Q` �.f� Approved by O�IB 3060-OGgS
\Cschington.DC 2U551
Modulc H: Truc-Up Adjustmcnt Calculation
� b � d �
;.y�x,,,y Line Deuri lion IIasie Tier 2 Tiet 3 ' Tier 4 Tier 5
� �xtmcal Por Tcue-Up Period 1
i Re�•enue From Pcriod 1 S1.095.565.005
���
_ Rc�'tauc From�[ax Fermilled Rate for Period l SI.117,312.0335
H3 TrurCpPeriod I Adjustment(H2-HIj 52L747.028�
}�a lntcrest on Period 1 Adjusimeot 51,223.2704
Adjuslmeal Por True-Up Period 2
ili Revewe From Perial2 EGgiblc[or Intereri
H6 Re�'enue Pcom\(ax Perm Rate(or Yeriod 2 Eligible For In�erest
ii7 Pcriod 2 Adjustment Eligible For lnleresl[HbHi)
;13 loicrest on Perial 2 Adjustmcat(Sce instructious[or formula)
ki9 Rs.�enuc From Period 2[neligible for[nlerest
N 10 Re�•enue From�(ss Perm Rate for Ferial2(neGgible[or In�crest
HI 1 Peried 2 Adjustment Incligibie For interest[H16-H9]
'ioul True-Up Adjustmcnt
!{t? yr¢��iousRemainingTrurL"pAdjustment
!il3 ToiafTrurCpAdjustmcni(H3+EH+E17+F{`�+Hll+lil2� S'_2.970.2989
iil4 Amoum of Tcurtip Cl�imcd ForThis Projccted Perial S'_?.9i0.2988
H1� RxmainingTrvc-UpAdjustment(}[l3-fI14J �.��
Part III: Projected Period
Module I: New Maximum Permitted Rate
a b e d e
i.inc Line Descri liaa llasie Tier 2 Tier 3 Tiu 4 Tier 5
i; Caps�lcihal5cgment For Projected Pcricxi(V4'ks 2j
12 �larkup�[ethocl Segmeut For Projected Period[Wks 3J 50.0000
'3 Chan\(cmnl Delcln Segment For Projecled Period(Wks MSJ 50.00 "
wr�
Proj.PerioJ Raie Eligible For Inflation(DS+F�+GS+I1+12+I3] 59.2032
Inflatiou Segment for Projecicd PeriaJ((I4'CS)-14J 50.1491
iu Headend Opgrade Segmenl For I'rojecled Pcriod(��'ks 6]
I7 Ex�ernal Costs Segmcot For Projected Pcrial[Wks 7] 50.243
(R True-tip Segment Fa ProjecteJ Period 50.1934
19 \[as PermiueJ Ra�e foc Projetted Pcriod[[4+IS+I6+17+18] 59.7886
!(0 Operetor Sclected Ra�e For ProjccteJ Period S10.01
,1'oic:77�ema.riuiunrprrmi/tednlclgrvcsd000lla.Ecm/oaccounlan�•irlundG'abili/vyouma�-6are. Ujou6a�tpir�iaus/�•bceocydemdbylhcCommissioa oryorc%:r/lranc6itmgaurdori!vlaoi.v.Frrcfriads.
�nu.vr no/�eiie�rJe!yrxr�bG;•aG'na!o ma,fe sucb relunds e�en illbe permiired�.�le is/v�3er/han!6e cooleslydiale o�y'aurcurrenl�ale.
Ccrtification Statement
�VILLFUL FALSE STATE�lENTS N1ADE ON THIS FOR�t ARE PUNISHABLE BY FINE tl�`iD)OR I�IPRISONMENT
(U.S.CODE TITLE 1S.SECTION 1001),ANDIOR FORFEITURE(U.S.CODE,TITLE 47,SECTfON 503).
1 certif that the statcments made in this fortn aze true and cortect to the best o(m knowled e and belief.and are made in ood(aith.
S;?nahue Date
ti:une and Tidc of Yer�on Completiny this Form:
Teltphune munber Fae Number
:�
FCC Fo:c::_.:
\!icrcr.:::F.s:cl d.i;�'crsica I`�':: .
, EXHIBIT ' " TD 17Li+d'���/ � ApprovedByOM63060-0635
Fcdcral Communicatiors Commission pag� � �f �,�
Wazhington,DC 20554
`Vorksheet 1 - True-Up Period Inflation
For instructions,eee Appendix A of Lnstructions For FCC Fortn 1240
Linc Period FCC Inl]ation Factor
t01 Month 1 1.96°0
102 Month 2 1.96°.0
l03 Munth 3 1.9G°o
t0-1 htonth 4 3.00°o
I0� Month 5 3.00°.0
..;:..
l06 bionth 6 3.00°�0
107 htonth 7 2.40°.�0
IOS hionth 8 2•`��°�
I09 htonth 9 2•'��%'�
110 Month 10 LG2".o
tll hlonth ll 1.62°�a
I 12 Month 12 1.62°�b
�13 Acerage Inflstion Faetor for 7'cue-Up ��ZZ�
Pcriod 1
I1�3 Ivlonth 13
1I5 Month Id
116 Nlonth 15
°` � 117 Manth 16 . .
118 Month 17
""`"" 119 Month 18
120 Month 19
121 Month 20
122 htonth 21
l23 btonth 22
124 Month 23
12� Month 24 .
�`6 Avcracc Inilation Factor for Tcuc-Up
Period 2
,:�-,�,
��
FCC Fo�xu 13a�:
Page 1 i�licra,u(c Ezcel�#.G ti'a;ion July 19^:�
EXNI�IT� TO `fi(�W+i�til6�� Approvcd IIy O�IB 3CG40635
Feckral Communic�tions Commiscion �a9e // �f �
Wash.inoton.DC ZU554 �����r��
" " Worksheet 7-External Costs
,:; �
True-Up Period
ti or inswctions,see Apprndiz A of UsWCtiom For FCC Focm 12�0
Tnx-L'p Pma1 Projectcd Periul
Question 1.Forµhich time period are you filling out tlus workahcct^ [Put un":�"in lhe aPpropriate bo:c] t
�hw:stion..liow lona i�Ilx first pe+iod,in montlur FOf KIIICII f�ICS BfG bClfl'j SCI w7U1 l}ll3 K'OtIGSI1CC�� 12
Queetion 3.How leng i�lhe xcond perial,in month+,(or which rntea are bcing ut with thu worl:shcet? 0
Q � e
IJne Line Dexri don Hrs�c Tler 2 Tfer 3 Tier 1 Tier 5
Pcriod 1
Ectcrn:►1 Costs E(i ible for hlurku
'•U i Co+t of Pro�amming Fot Chwmcla Added Prio�to 5/1 Si9�or 51«==0.27
rVlcc 5:15 9-t i;cing J[arkup�lcthod For Pcriod
70� Retraa+mission Coneanl Fen Fur Ptriod �•��
7U? Cop.ripht Feee For Period St0,265.39
,'OJ En-ma1 Cueu Eligible For 7.5°0�lnrl.vp 527,59 � 6
705 :�farked lip E:ctemal Cons S2S,2903345
Esternal Costs Not Eli�ibie for Markup
706 Cable Spce�e T�ees For Pmod 50.00
707 FranchixRalatcdCode.ForPmod 50.00
7p3 Cummission Regulatory Fecs For Pmaf S-t,719•��
709 Tetal E:ctert+al Coa�For Periai SJ,OI0.0535
710 \Sonthly,PcrSubscrib:r E:ctmwl CoeU Fur Period 1 50.2459
Pcriod 2
`�'4tcrnal Costs Eli 'blc for Marku
Cmt of Programming For Channeb A�ied Prier to 3%15:9a or
D� Afler 5 15�94 L'sing\Inrkvp�kthed For Ptriod
712 Retransmission Conscnt Fces For Period
7�i Co�nright Fm For PaioJ
7l1 E:ctemel CostS Gli¢ible For 7.5"0�(arkup
�IS Alukedt'pExlernalCost�
G�tcrnal Costs Not Eli�ible for bfarku
7IG Cable Specific Ta�ccs For Pmod
717 Fr�nchise Related Cost�For Period
713 Co(cu��i�.tion Rcgulatury Fcee For Prriod
719 Tutal Ectcrnnl Cosb Pcr Pcriod
7.'.0 �fonthlv.Per-Subxribec E:ctemel Cost;For Peria7 2
;a��
FCC Fctm!'�'
� :j: .
\tic:o•.aftF�cali.^�c:�;ie� )�I%.- '
� EXH181T.� TO �-4�����'��3�
Fedval Commwications Commission Pa(�e ', Q� 2 � Appraved Uy O�tFl 306406,45
Wast�.ing�on.DC 20.i�4
" ' `Vorksheet 7-External Costs
Projected Period
For inswction+,xe Appendir A of InaWctioro For FCC Fam 1210
True•ip Period Projected Periaf
Que�tion 1.For which time period ere you Cilling out this work�hret" (Put an'^�"in lhe eppropriaze box] �
Qucstion Z How long u the fint pmod,in monttu,for whic6 rata aze being ut with this workeheet^ 12
Qu�stion 3.How long i�ihe en:ond periai,in montiv,forµhich ratea are being ut with thia workshect^ �
� � e
Une Lnc Dcxri tinn He�lc Tier 2 Tier 3 Tier a Tier 5
PC�IO(�1
Extcrnal Coats Eli�iblc for htar6v
701 Cor1 of Programming For C6amicls.�dded Prior to 5�`15�9d or 512,383.:3
pfta 5/15,9S U�ing�larkup Method For Paiod
702 Retrsfumission Conxnt Fea For Pmod 50.00
70? CopyrightFeesForPeriod SIO,li1.51
70J E:cternal Coau Eligible For 7.S°.�o Jlar4.up 522,519.7d
7U5 htarked L'p E�acmal Cos� 521,208.7205
Eztcrnal Costs Not EU�ible fur hiarku
706 Ceble Spccific Tacc�For Pmod 50.00
707 Fronchix Rclated Coeb For Period 50.00
703 Commission Reculatory Fen For Pmod 5-t,652.02
709 7otel Extomal Coav ForPmod 523$6(1.740b
7IO hionthly,PerSubscrilxr Euemat Cosis For Pmod 1 50.2�30
:�,.H�, .
��:�,e
f�
FCC focm;_�
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