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Resolution 1994-76 . . ~ RESOLUTION NO. 94 -76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY PURSUANT TO SECTIONS 76.936, 76.940, 76.941 AND 76.942 OF THE RULES AND REGULATIONS OF THE FEDERAL COMMUNICATIONS COMMISSION DISAPPROVING FALCON CABLE SYSTEM'S RATES AND CHARGES FOR THE BASIC SERVICE TIER IN EFFECT FROM SEPTEMBER 1, 1993 TO JULY 14, 1994 AND ORDERING REFUNDS OF OVERCHARGED AMOUNTS. WHEREAS, the City of Gilroy (the "City") has been certified by the Federal Communications Commission (the "Commission", the "FCC") to regulate the Basic Service Tier, and associated equipment, which certification was effective on December 29, 1993; and WHEREAS, the City has adopted regulations with respect to the Basic Service Tier and associated equipment that are consistent with the regulations prescribed by the commission; and WHEREAS, the Operator has filed with the City its FCC Forms 393 on November 22, 1993; and WHEREAS, on January 26, 1994, the City issued an order pursuant to Section 76.933(b) of the Rules and Regulations of the Federal Communications commission, stating that it was unable to determine, based upon materials submitted by the Operator that the existing or proposed rates were within the Commission's permitted Basic Service Tier charge or actual cost of equipment and that the City was tolling the thirty-day deadline found in Section 76.933(b) of the Commission's Rules and Regulations for the purpose of requesting and/or considering additional information or to consider the comments from interested parties for an additional ninety days; and WHEREAS, on April 25, 1994, the City issued an accounting order, pursuant to Section 76.933(c) of the Rules and Regulations of the Commission, requiring the operator to keep an accurate account of all amounts received by the Operator by reason of the rates and charges for the Basic Service Tier and associated equipment in effect from September 1, 1993 to July 14, 1994 as found in the FCC Forms 393 dated November 22, 1993, and to keep full and accurate records indicating on whose behalf such amounts were paid; and -1- RESOLUTION NO. 94 - 76 . . WHEREAS, the City has reviewed all relevant information, including b~t not limited to, the FCC Forms 393, the Report of City'S cable television consultant, The Buske Group, and other relevant written evidence; and WHEREAS, the City has given proper notice of this hearing pursuant to Section 76.935 of the Rules and Regulations of the Federal Communications Commission; and WHEREAS, the Operator has been provided with a copy of the staff report and the consultant's reports and has been given the opportunity to comment thereupon; and WHEREAS, the City has now made a final decision upon the appropriateness, or lack thereof, of the rates and charges for the Basic Service Tier and associated equipment in effect from September 1, 1993 to July 14, 1994, as identified on the FCC Forms 393. NOW, THEREFORE, the City Council of the City of Gilroy resolves as follows: Section 1. The rates and charges for installations, service charges and equipment associated with the Basic Service Tier in effect between September 1, 1993 and July 14, 1994 as identified in the FCC Form 393 submitted by the Operator are hereby found and determined to be unreasonable because they are not in compliance with the applicable FCC rules and standards and are therefore disapproved for the reasons, and on the grounds, as contained in the Consultant's Reports dated April 18, 1994 and August 19, 1994, all of which are incorporated into this Resolution by reference as if fully stated herein. Section 2. initial rates for service charges. This Resolution constitutes a written decision disapproving the equipment associated with Basic Service and installation and Section 3. The Operator is hereby ordered to reduce and modify the rate for the equipment associated with the Basic Service Tier and installation and service charges as follows: Addressable Converter--monthly rate reduce to $0.97; Non- addressable Converter monthly rate reduce to $0.29; Remote Control--monthly rate reduce to $0.27; Video Control Center--monthly rate reduce to $0.51; Hourly Rate for Installation and Service reduce to $22.56. Section 4. The Operator is hereby ordered to provide refunds to subscribers for any accounts collected since October 17, 1993 to July 14, 1994 in excess of the rates prescribed herein. The Operator is hereby directed and ordered to provide a Refund Plan ("Refund Plan") to the City Administrator within thirty (30) days of the date of this hearing, pursuant to which it proposed to refund to subscribers rates and charges collected in excess of the rates and charges approved herein. In addition to the Refund Plan the Operator shall submit written evidence and documentation demonstrating the reasonableness and appropriateness of said Refund Plan under the standards set forth in Section 76.942 of the Rules and Regulations of the Commission. Said Refund Plan shall reflect appropriate interest due to subscribers pursuant to Section 76.942(e) of the Commission's Rules and Regulations. -2- RESOLUTION NO. 94 - 76 . . Section 5. The Operator shall comply with Commission rules and provide to the City a uniform bulk and commercial rate schedule. Section 6. The Operator shall provide clear, complete, and specific information to subscribers indicating what types of installation or service carry a charge, and specifically identifying the component activities for which subscribers will be expected to pay. An example of such shall be provided to the City for review and approval. Section 7. With regard to the matter of Falcon's treatment of "a la carte" services and the associated issues identified in the consultant's report, City staff is directed to file with the Federal Communications Commission a request for a declaratory ruling on Falcon's "Satellite Pak". Section 8. The City Clerk is hereby directed to post a copy of this resolution in such place or places as City Notices are normally posted and to make copies of this written decision available to the public at the office of the City Clerk during normal business hours. Section 9. This Resolution shall become effective as of the date of adoption. PASSED AND ADOPTED this 17th day of October, 1994, by the following vote: AYES: COUNCILMEMBERS: GILROY, KLOECKER, MORALES, ROGERS, ROWLISON, VALDEZ and GAGE. NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None AP7J~ }I Mayor ~ ATTEST: gJ'u4~bqj/;;;;;,.,;4 / City Clerk ~ -3- RESOLUTION NO. 94 - 76 . . . I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 94-76 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 17th day of October at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the , 19-2L, Official Seal of the City of Gilroy this 18th day of October ,1994. (Seal)