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1l. Rate Regulation Resolution, Technical Amendment, Cable TV1 CITY OF /Y CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 ' MEMORANDUM TO: Mayor and City Council ' FROM: Don Ashworth, City Manager ' DATE: November 9, 1994 SUBJ: Rate Regulation Resolution, Technical Amendment, Cable TV Since passage of the original rate regulation resolution on September 12, 1994, the FCC has ' changed the method by which the "implementation date" is determined. Attached please find a copy of the adopted resolution which will be modified on page 2 to show November 1, 1993 as the effective date for rate regulation. This is the only change to the resolution. t Approval is recommended. 1 u ' BRIAN T. GROGAN ( 612 ) 347 -0340 r 1 ' BTGIslo 85ZBTG Enclosure Mr. Don Ashworth, City Manager City of Chanhassen 690 Coulter Drive P.O. Box 147 Chanhassen, Minnesota 55317 October 27, 1994 Re: City of Chanhassen, Minnesota Rate Regulation Our File No. 27981.2 Dear Don: Pursuant to our last telephone conversation enclosed herewith please find a letter I recently received from Jane Bremer regarding the implementation date for the refund due Chanhassen subscribers. As you and I discussed, there is some confusion regarding the timing for a cable operator's implementation of a refund order. In my discussions with FCC officials they have indicated uncertainty regarding the appropriate timing for implementation. My recollection of our telephone conversation was that the City would likely accept Triax's implementation date of November 1, 1994 which would result in refunds extending back to November 1, 1993. In order to clarify the rate order it will be necessary for the City to amend the dates in the order to clarify this change. I believe this could likely be done on the consent agenda since it is a rather minor modification. Should you have any questions regarding this issue please do not hesitate to contact me. Very truly yours, LAW OFFICES MOSS & BARNETT A PROFESSIONAL ASSOCIATION 4800 NORWEST CENTER 90 SOUTH SEVENTH STREET MINNEAPOLIS, MINNESOTA 55402 -4129 TELEPHONE (612) 347 -0300 TELECOPIER (612) 339 -6686 MOSS & BARNETT A Professional Association Brian T. Grogan ' CITY OF CHANHASSEN, MINNESOTA RESOLUTION NO. 94 -99 Franchising Authority to Regulate Basic Cable Service Rates and REGARDING REGULATION OF RATES CHARGED FOR ' BASIC CABLE SERVICE AND RELATED EQUIPMENT WHEREAS, on or about May 7, 1984, the City of Chanhassen, ' Minnesota ( "City ") granted a Cable Television Franchise Ordinance ( "Ordinance ") to Triax Midwest Associates, L.P. ' ( "Franchisee "); and WHEREAS, in accordance with applicable provisions of the Cable Consumer Protection and Competition Act of • 1992 ' (hereinafter the "Cable Act ") and rules adopted by the Federal Communications Commission ( "FCC "), the City has undertaken all appropriate procedural steps to regulate the rates charged by ' Franchisee for the basic cable service tier and related equipment, and ' WHEREAS, in accordance with applicable FCC regulations, on May 11, 1994, the City filed FCC Form 328 -- Certification of Franchising Authority to Regulate Basic Cable Service Rates and Initial Finding of Lack of Effective Competition -- with the ' FCC; and , WHEREAS, in accordance with applicable FCC regulations, on ' July 11, 1994 the City passed and adopted Ordinance No. 213 governing the procedures and standards for the regulation of rates; and WHEREAS, on July 21, 1994 the City sent to Franchisee a letter notifying Franchisee that the City had been certified by ' the FCC via Form 328 and had adopted rate regulations consistent with FCC regulations and further requested that Franchisee complete and return to the City applicable FCC rate regulation forms for the purpose of establishing maximum permitted rates; and WHEREAS, on or about August 20, 1994 the City received Franchisee's completed FCC Forms 1200, 1205, 1215 and 393; and WHEREAS, the City asked the Minneapolis law firm of Moss & Barnett to provide assistance to the City for review of ' Franchisee's FCC rate regulation forms; and WHEREAS, the City, in order to accomplish its review in a ' timely manner, scheduled for September 12, 1994 sufficient time for the purpose of reviewing Franchisee's FCC rate regulation forms and related rate regulation information; and 7 WHEREAS, the City conducted a meeting open to the public on September 12, 1994 to ensure that all interested parties had ample opportunity to present information to the City; and WHEREAS, based upon the City's September 12, 1994 meeting and all information and advice from Moss & Barnett and City Staff, the City determined to make the below listed Orders for Action. NOw, THEREFORE, in a regular meeting of the City of Chanhassen, Minnesota dated September 12, 1994, the following is resolved: ORDERS FOR ACTION 1. The City hereby adopts and makes a part of this Resolution all documents referenced above. 2. Pursuant to FCC regulations and Franchisee's FCC Form 393, for the time period September 12, 1993 to May 14, 1994, Franchisee shall be permitted to charge not more than the following rates (exclusive of any franchise fees): Basic service tier - $10.19 Installation of unwired homes - $29.89 Installation of prewired homes - $14.94 Installation of additional connection at time of initial installation - $9.96 Installation of additional connection requiring separate installation - $19.93 Charge for changing tiers - $4.98 Converter box type 1 - $0.61 Converter box type 2 - $0.33 Additional outlet - $0.08 Hourly service charge - $19.93 3. Franchisee shall immediately undertake any and all necessary steps, in accordance with applicable FCC regulations, to refund to all Chanhassen subscribers J,,* any and all applicable overcharges based on the maximum permitted rates specified in paragraph no. 2 above and the rates actually charged to Chanhassen subscribers, together with any franchise fees C �u►'S �� q 3 assessed thereon, plus interest, computed at the applicable published rates for Internal Revenue / NaJ. - ' Service tax refunds and additional tax payments, from September 12, 1993 to May 14, 1994. 4. Pursuant to FCC regulations, for the time period beginning May 15, 1994 going forward, the City hereby determines that the rates identified by Franchisee in -2- ' Franchisee's August 20, 1994 filing of FCC Forms 1200, 1205 and 1215 are reasonable and are in compliance with applicable federal law and FCC regulations and therefore Franchisee shall be ' permitted to charge not more than the following rates (exclusive of any franchise fees): Basic service tier - $9.98 ' Installation of unwired homes - $29.31 Installation of prewired homes - $14.66 Installation of additional connection at time of ' initial installation - $9.77 Installation of additional connection requiring separate installation - $24.43 Charge for changing tiers - $9.77 ' Converter box type 1 - $0.84 Converter box type 2 - $0.45 ' Converter box type 3 - $1.53 Additional outlet - $0.11 Hourly service charge - $19.54 ' 5. Franchisee shall immediately undertake any and all necessary steps, in accordance with applicable FCC regulations, to refund to all Chanhassen subscribers any and all applicable overcharges based on the maximum permitted rates specified in paragraph no. 4 above and the rates actually charged to Chanhassen subscribers, together with any franchise fees assessed thereon, plus interest, computed at the applicable published rates for Internal Revenue Service tax refunds and additional tax payments, ' beginning May 15, 1994 going forward. ' This resolution is passed and adopted by the City of Chanhassen, Minnesota this 12th day of September, 1994. CITY CHANHASSEN, MINNES TA By: Its • Mayor t Attest: ti L�L� ity Cler 6ager ' BTG /slo 984Z140 � 3