Agenda - Council - 05/24/1984 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I City Administrators April 30, 1984 Page Tw~ Cable Co,,,',ission could allow a proposed rate to go into effect by deciding not to object to the rate change. If the Cable Con~ission or any of the cities ob~ ect to the proposed rate change, Group W ~)uld have to follow all of the pro- cedures which previously existed for the changing of a rate, requiring the approval of the cities with the recuu~endatton of the Cable Csmnission prior to any implementation of said rate increase. In other words, the original Franchise provided that for any rate modification the city ~uld have to hear the request and enter into rate hearings. Tnis pro- cess could be very cumbersome for a number of the rate increases that you may see in the future. Under the proposed Ordinance ~mendment, the City Council w~uld still receive all of the documentation it had previously received for a proposed rate increase, but, by not acting, the rate would be permitted to go into effect. Finally, included in this packet is an amended Exhibit A. As you remember, Exhibit A included all of the rates proposed by Group W. GYoup W has requested, and the Conmission has approved with recon~nendations that it be sent to you for your approval, a change in the $19.95 installation rate. Group W ba.~ proposed splitting this rate to provide a $10.00 initial installation fee and a $10.00 fee later on if any individual chooses to change service such as adding or deleting a pay service. ~he goal of the cable company is to prevent "churn" which results when a cable supplier takes a number of pay services when they are offered for free at the beginning and then changes them contin, m]ly throughout the life of the subscriber contract. Ibis places a financial burden on the entire system. The Conmission has reviewed this request and reconxnends that you amend your Ordinances including an amended Exhibit A to reflect the $10.00 change of service fee. Other minor changes have been made in the rate schedule, Exhibit A, to reflect the unavailability of premium services that were origi- nally proposed in the system. The "Bravo" pay service has been reduced to a $6.95 rate, the Disney Channel has been added, and such services as the Enter- tainment Channel and public subscriber network, which are no longer available to cable companies, have been deleted. Since each of your cities has different ordinance amendment procedures, I am for~mrding to you the entire section which ~s changed regarding franchise rate regulation procedures and Exhibit A for you to incorporate into your regular ordinance amendment procedures by amending these two sections of your original Ordinances by substituting these two sections enclosed. Amendment Agreement No. 1 may be adopted by your City Councils either through motion or, if you choose, through resolution. The ~mendment Agreement No. ~ is drafted in a resolution format which you may utilize if you so choose. Group W Cable and the Q~d Cities Cable Cc,,~,;~nications Con~nission have already signed the enclosed Amendment Agreement No. 1. If .you City Council adopts said Agreement, please affix the necessary signatures, and return that Agreement to my office as soon as possible.