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HomeMy WebLinkAbout022107 ORD - 12/13/1994ORDINANCE REGARDING REGULATION OF RATES CHARGED BY TCI CABLEVISION OF TEXAS, INC. FOR BASIC CABLE SERVICE AND RELATED EQUIPMENT; APPROVING OR PERMITTING CERTAIN RATES AND CHARGES; AND PROVIDING FOR PUBLICATION OF NOTICE OF THE CONTENTS OF THIS ORDINANCE (DISPOSITION ORDER) AS REQUIRED BY SECTION 55-194 OF THE CORPUS CHRISTI CODE. WHEREAS, the City of Corpus Christi, Texas ("City") is a grantor of a cable communica- tions franchise ordinance ("Ordinance"), Ordinance No. 16133, executed on or about March 25, 1981, by and between the City and Athena Cablevision of Corpus Christi, Inc., which franchise is currently held by TCI Cablevision of Texas, Inc. ("Grantee"); 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 Communica- tions Commission ("FCC"), the City has undertaken all appropriate procedural steps to regulate the basic cable service tier and related equipment; and WHEREAS, in accordance with applicable FCC regulations, on or about October 4, 1993, 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 or about November 16, 1993, the City passed and adopted a cable rate regulation ordinance (Ordinance No. 021802); and WHEREAS, on or about November 18, 1993, the City sent to Grantee a notification letter regarding FCC certification and the adoption of the cable rate regulation ordinance; and WHEREAS, on or about August 11, 1994, the City received Grantee's completed FCC Forms 1200, 1205, and 1215 which are attached and made a part of this ordinance as Exhibit A; and WHEREAS, the Fredrikson & Byron law firm, the City's legal counsel, was asked to provide assistance to the City for review of Grantee's FCC Forms 1200, 1205, and 1215; and WHEREAS, on August 30, 1994, the City Council approved Resolution No. 022026 stating that the City would have a ninety (90) -day extension period to obtain and analyze additional information from Grantee and to complete its review of Grantee's FCC Forms 1200, 1205, and 1215; and WHEREAS, pursuant to FCC regulations, on or about September 6, 1994, the City sent a letter notifying Grantee that the time period for the City's review of FCC Forms 1200, 1205, and 1215 would be extended for an additional ninety (90) -day period; and WHEREAS, the City, in order to accomplish its review in a timely manner, scheduled for its November 29, 1994 City Council meeting sufficient time for the purpose of reviewing Grantee's FCC -1- '9t!7 AtiCKEILMEfl Forms 1200, 1205, and 1215 and related rate regulation information, together with the final report from Fredrikson & Byron which report is attached and made a part of this ordinance as Exhibit B; and WHEREAS, the Corpus Christi Cable Communications Commission (the "Commission") conducted a meeting open to the public on November 10, 1994 to ensure that all interested parties had ample opportunity to present information to the City and to express their views regarding Grantee's rate submission; and WHEREAS, Fredrikson & Byron concluded that Grantee's proposed basic rate is equal to the required rate from Form 1200; and WHEREAS, Fredrikson & Byron noted that Grantee had not recalculated its installation and equipment charges pursuant to an FCC instruction, the interpretation of which is in issue; and WHEREAS, Fredrikson & Byron concluded that recalculation of the installation and equipment charges would have resulted in only a nominally lower rate; and WHEREAS, at the November 10, 1994 meeting, the Commission concurred in the recommendation of Fredrikson & Byron that the City approve the basic service rate and installation and equipment charges proposed by Grantee; and WHEREAS, based upon the Commission's meeting of November 10, 1994 and all reports and advice from Fredrikson & Byron, the City Council determined to make the conclusions and orders for action listed below; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council concludes that the Grantee's request for approval of its rate of $8.41 for the basic service tier (exclusive of any franchise fee) is reasonable, and therefore, approved. SECTION 2. The City Council concludes that the maximum permitted rate for the hourly service charge shall be $22.57. SECTION 3. The City Council has an obligation to act timely upon the pending rate application consistent with now current FCC rules and regulations. However, if the FCC alters the benchmark calculations resulting in a lower reasonable rate for Corpus Christi subscribers, the City Council has an obligation to area subscribers to reconsider the pending analysis consistent with the changes the FCC may make in its regulations. SECTION 4. The City Council hereby adopts and makes a part of this ordinance all attach- ments and exhibits referenced above. -2- SECTION 5. Based on the foregoing findings and conclusions, the City Council hereby enters the following orders: 1. Pursuant to FCC regulations, from the date of this order and until further order of the City Council, Grantee shall be permitted to charge an initial rate for the basic service tier of $8.41 and an hourly service charge of not more than $22.57. In the event that the issue concerning the installation charges is resolved by the FCC in a manner inconsistent with the position taken by Grantee, an accounting shall be performed by Grantee thereafter as soon as possible. The City Council reserves the right to reconsider this ordinance if subsequent amendments or modifications to the FCC rules and regulations require or permit such reconsideration. This ordinance shall constitute a Disposition Order concerning the August 11, 1994 Rate Submission. 5. Notice of the contents of this Ordinance (Disposition Order) shall be published as required by Section 55-194 of the Corpus Christi Code. ATT h C Armando h / E CI F CORPUS CHRISTI apa Mayor Mary City Secretary APPROVED: ZY DAY OF /V C if4-rt a -Q-. JAMES R. BRAY JR., CITY TORNEY t ; By: Michael L. Scanlon Assistant City Attorney EBB/vc/bak MS5000.038(bak) -3- That the foregoing ordinance was re4 for the first time and passed i to t second reading on this the 231 day of kOVtV✓ bt r , 19 U;'4 , by the following vote: Mary Rhodes Dr. Jack Best Melody Cooper Cezar Galindo Betty Jean Longoria Edward A. Martin Dr. David McNichols /1J David Noyola %1,10-.t U t- Clif Moss That the foregoing ordinance 17 read pass finally on this the f'5 day 19 , by the following vote: Mary Rhodes Dr. Jack Best Melody Cooper Cezar Galindo Betty Jean Longoria CAS PAIT AND APPROVED, this the 19 ity Secretary LJ for the,second time and of UC ( YYI %X {r Edward A. Martin Dr. David McNichols David Noyola Clif Moss day of \j\ \C.. "� Ns>\ APPROVED: o<9 DAY OF A/C}lli'q 1n't th JAMES R. BRAY, JR., By 6 �fut Assistant City Attorney CITY ATTO EY \foss.\044 MAYOR THE CITt-tF CORPUS CHRISTI , 19 C��7 2 7 Federal Communications Commission Washington, D.C. 20554 F0018 110062A Approved by: OMB 3060-0601 Expires: 4/30/97 FCC FORM 1200 SETTING MAXIMUM INITIAL PERMITTED RATES FOR REGULATED CABLE SERVICES PURSUANT TO RULES ADOPTED FEBRUARY 22, 1994 "FIRST-TIME FILERS FORM" Community Unit Identifier (CUID) of cable system TX0205 Date of Form Submission 06/08/94 Name of Cable Operator TCI CABLEVISION OF TEXAS, INC Mailing Address of Cable Operator 4120 S PADRE ISLAND DR City CORPUS CHRISTI State TX ZIP Code 78411-4477 Name and Title of person completing this form: MOORE. DENNIS MGR Telephone number (512)857-5059 Fax Number (512)857-5868 Name of Local Franchising Authority MARY RHODES MAYOR Mailing Address of Local Franchising Authority CITY OF CORPUS CHRISTI P.O. BOX 9277 City CORPUS CHRISTI State TX ZIP Code 78469-9277 1. Place an "x" in the appropriate box: A_ Is this form being filed for the fust time anywhere? YES X B. If you answered "no" to IA., is this an exact copy of the FCC form 1200 submitted elsewhere? YES C. If you answered "yes" to 1B., enter the date on which the FCC form m IBwas filed. 2. Enter the date of the rates you are seeking to justify with this filing: 07/14/94 3. Indicate which of the following forms are attached by placing an "x" in the appropriate boxiest: X FCC Form 1205 "Equipment Form" completed for the fiscal year closing: FCC Form 1205 "Equipment Form" completed for the fiscal year closing: FCC Form 1210, "Update Form" covering the period from: FCC Form 1215, "A la Carte Offerings". Page 1 12/31/92 EXHIBIT fk Excel 4 0 Win., Version 2 0 (mn✓ddtyy) (mm/dd/yy) (mm/dd/yy) (mm/dd/yy) to NO NO (mmidd/yy) FCC Form 1200 May 1994 Federal Communications Commission Washington, D 20554 Approved by. OMB 3060-0601 Expires: 4/30/97 MODULE A: CALCULATING YOUR MONTHLY REGULATED REVENUES PER SUBSCRIBER AS OF MARCH 31, 1994 Line a bc Line Descri •tion Basic Tier 2 Tier 3 d Tier 4 e Tier 5 Al Channels • r Tier as of 3/31/94 17. 22. --- A2 Subscribers • r Tier as of 3/31/94 48355. 47746. 0. -- A3 Subscnber-Channels • rTier AIzA2 822035. 1030412. 0: A4 Sum of Subscriber -Channels sum A3 col. a -e 1872447.: , , 0.561 0. ' _'_ AS Percenta • e of Sub. -Channels • -rTier A3/A4 0.439 A6 Monthl Charge • r Ticr as of 3/31/94 510.23 510.23 50.00 A7 Subscriber Revenue • r Tier A2xA6 5494,671.65• 5488' A8 Total Subscriber Revenue sum A7 col. a c 5983,113 23. J A9 Total E. ui •ment Revenue as of 3/31/94 552,382 47 AIO Any Franchise Fccs included in A8 or A9 50.00 All Total Regulated Revenue A81 -A9 -A10 $1,035,495.6982 AI2 Total Regulated Revenue • r Sub. All/A2 col. a 521,4144 Page 2 1 wel 4 0 Wm _ Version 2 0 lI FCC Fonn 1200 May 1994 Federal Communications Commission Washington, D.C. 20554 Approved by: OMB 3060-0601 Expires: 4/30/97 If you indicated your March 31, 1994 CPS rates included all allowable external costs, an "X" will appear in the box to the left. MODULE B: ADJUSTMENTS FOR CERTAIN EXTERNAL COSTS THROUGH MARCH 31, 1994 a Line Line Descri • tion Basic b Tier 2 c Tier 3 d Tier 4 e Tier 5 8 . nnm: Date External Cost Data 131 Enter Be_innin: Date nun/d• a See Instructions 11/17/93 5120,721.33 50.00 82 Pro, : in- Cost • r Tier on Be. innin • Date 519,552.87 B9 Taxes. r Tier on Be: intim Date 50.00 50.00 50.00 B4 Franchise Related Costs • r Tier on Be: intim • Date 50.000 50.00 50.00 -- 135 Total External Costs • Tier :2+B3+B4 . X419 552.87: 5130 721:33 50.00 50.00 B6 Subscribers • r Tier on Be• innin• Date 51083. 50667. 0 87 Av:. Ext. • Sub. • r Ticr on Be. inning Date 85/86 50.3828 52.3826 5000 50.00 50.00 March 31. 1994 External Cosi Data •: 519,472.52 5122,686.90 50.00 89 Taxes • r tier on 3/31/94 50.00 50.00 50.00 810 Franchise Related Costs r Tier on 3/31/94 50a00 50.00 50.00 a 1311 Total External Costs r Tier :8+89+810 �.�=+ I0, 72'.52r 9. 2.52 ?F' +� 5 122,i T^5132,88690 YT `, r o i5 NES 50:00 m tt- 812 Subscribers. rTieron3/31/94 A2 :g„�h=is. -- ? .4 55. s •4 46. """ ° », „ 0. 813 Av:. Ext. Costs i r Sub. • Tier on 3/31/94 � ^`�. > 50.4027 696 5000 Chan `e in Externa/ Costs 814 Net External Costs • r Sub • Tier : I3-87 ," >S0:OI99 a Ea pie 0,1869 .- 50.00 815 Net External Costs • r Tier :12 x 1314 w: a'- '8370 ` X77 -50:06 •. `•'" "'F0.00 ,. n,n B16 Total Net External Costs sum 1315 cola-e B17 kir:. Change in Ext. Costs • r Sub. :16/812 cola B18 Current Rate without External Costs Al2 B 19 Current Rate with External Costs :17+B18 „- sig 89_I052' �.�,.. saS� 5.21, 44 521.619.. S .. Page 3 i T FCC Form 1200 Excel 4.0 Win.. Version 2.0 May 1994 Federal Communications Commission Washington, D.C. 20554 If you indicated you qualify as a "Small Operator" an '•X" will appear in the box to the left. then skip Module C Approved by: OMB 3060-0601 Expires: 4/30/97 MODULE C: CALCULATING YOUR BENCHMARK USING MARCH 31, 1994 DATA a bc d c Line Lioe Desert •tion Basic Tier 2 Tier 3 Tier 4 Tier 5 Cl Channels • rTierasof3/31/94 Al 17. 22. 0. C2 Number of Regulated Non -Broadcast Channels • r Tier 10. 22. C3 Subscnbers • r Tier as of 3/31/94 A2 48355. ' 47746 x -•. C4 Number of Tier Chan es in Fiscal Year 93 138T ,ka7 (g r; _ ._ ,_...._ _.>,...... ...,. C5 Census Income Level 525,539.00 C6 Number of Additional Outlets in Fiscal Year 93 17500.. C7 Number of Remotes Rented in Fiscal Year 93 4515 C8 Number of S stem Subscribers 48846 C9a Were ou ,art of an MSO on 3/31/94' 1=Y, 0=N) 1 C9b Number of S stems in our MSO as of 3/31/94 1526 CIO Benchmark Rate 520.1894 COMPARISON OF MARCH 31, 1994 RATE WITH BENCHMARK RATE If B I9 (your 3/31/94 rate adjusted for external changes) is larger than CIO (your benchmark rate), skip Module D, and complete Module E. If CIO (your benchmark rate) is larger than B19 (your 3/31/94 rate adjusted for external changes), complete Module D, and skip Module E YOUR CURRENT RATE WITH EXTERNAL COSTS IS ABOVE THE BENCHMARK: SHIP MODULE D. AND GO TO MODULE E. Page 4 Excel 40 Win_ Version 20 FCC Form 1200 May 1994 Federal Communications Commission Washington, D . 20554 Approved by'. OMB 3060-0601 Expires. 4/30/97 MODULE D: RESTRUCTURED MARCH 31. 1994 RATES a b c d e Linc Line Desert i tion Basic Tier 2 Tier 3 Tier 4 Tier 5 TO BE COMPLETED IF LINE B19 < Cl0 520.1894 Line a Line Descri •tion Basic b Tier 2 c d Tier 3 Tier 4 e Tier 5 DI Total Regulated Revenue • r Sub. Zine Al2 11/3 48355. "- ay ,.. n/3 5926,672.9491 r �,., D2 Monthly E• ubment Cost • r Sub. From Form 1205 510254 D3 Monthly Service Revenue • - r Sub. DI -D2 0. D4 Number of Subscribers • r Tier as of 3/31/94 A2 11/3 5406 824.6512 ka D5 Total Regulated Service Revenue D3 x D4, col. a Wa i„ ,-_ nh : 50.00 Wa D6 Pereenta•e of Subscriber -Channels .r Tier A5 da n/a'�Ns D7 Re• ulated Revenue • r Tier 135 x D6, col. a -e a/a - n/a 0/3 r✓a 0/8 1,38 Regulated Revenue • r Tier • r Sub. P 7/D4 tia tJa n/8 a/a ' n/a D9 Net External Cost • -r Tier • r Sub. :14 n/a We n/a n/a -:.;. n/a 010 Restructured 3/31/94 Rates D8 f 09 n/8 ria n/a 11/3 n/a ule D, go to Module F, and enter Lme D 0, columns a -e, on Line Fl. MODULE E: RESTRUCTURED BENCHMARK RATES TO BE COMPLETED IF B19>CI0 a b c d e Linc Line Desert i tion Basic Tier 2 Tier 3 Tier 4 Tier 5 El Benchmark Rate CIO 520.1894 E2 Monthly E•ui•mcnt Cost .-r Sub- From Form 1205 51.0254 ' ' ' 47746. _ ... E3 Benchmark Rate minus E• ui •ment Cost El - E2 - 519-164 E4 Number of Subscnbers •- r Tier as of 3/31/94 A2 48355. E5 Total Regulated Service Revenue 38E4. col. a 5926,672.9491 r �,., E6 Percentage of Subscriber -Channels •- r Tier A5 0.439 0.561 0. 0. E7 Regulated Revenue • r Tier E5xE6, col. a -e 5406 824.6512 5519,848.2979 50.00 50.00 50.00 E8 Regulated Revenue • r Tier • r Sub. 7/E4 $8.4133 510.8878 50.00 50.00 50.00 you completed Module E, go to Module F and enter Line E8, columns a -e. oo Line FI. MODULE F: PROVISIONAL RATE Line Line Description a b c d e Basic Tier 2 Tier 3 Tier 4 Tier 5 FI Provisional Rate per Tier 58.4133 510.8878 50.00 50.00 50.00 Page 3 Excel 4 0 Win \ ersion 2 0 FCC Form 1200 Mav 1994 Federal Communications Commission Washington, D.C. 20554 Approved by: OMB 3060-0601 Expires: 4/30/97 MODULE G: CALCULATING YOUR FULL REDUCTION RATE USING SEPTENIBER 30, 1992 DATA Line a Line Descri tion Basic b c Tier 2 Tier 3 d Tier 4 e Tier 5 GI Subscribers • r Tier as of9/30/92 49539. 49131. 0. September 30. 1992 Data G2 Monthly Charge • r Tier as of 9/30/92 517.80 s 52.00 50.00 33 G3 Subscriber Revenue • r tier GI x G2 5881 794.20 7 598,262.00 50.00 50.00 50.00 G4 05 Total Subscriber Revenue sum G3. col_ a -c Total E • ui • ment Revenue as of 9/30/92 5980 056.20 572,215.79 gtg p .,.«,,.-...q,.. _ I s .� G6 Anv Franchise Fees included in G4 or 05 above 542,090.88 G7 Total Reeulated Revenue G4+G5-G6 S1,010,181.11 08 Ave. Regulated Revenue • r Sub. G7/G 1, col. a 520.3916 G9 GIO Ad-usted for 17% Corn. titive Diff G8 x .83 Ave_ Ree. Rev. with Inflation to 9/30/93 G9 x I.03 5169251 517.4328 MODULE If: ADJUSTMENTS FOR CHANNEL CHANGES FROM SEPTEMBER 30, 1992 TO THE EARLIER OF THE DATE OF INITIAL REGULATION OR FEBRUARY 28, 1994 a b Line Line Description Basic Tier 2 c Tier 3 d Tier 4 e Tier 5 September 30. 1992 Data s HI Total Reeulated Channels 9/30/92 33 f 7 uk.e m H2 Subscribers to the System as of 9/30/92 49978. H3 Total Regulated Satellite Channels as of 9/30/92 26. Data from the Earlier of the Date of Initial Regulation or February 28. 1994 1-14 Enter the Sun Date See Instructions] - 11/17/93 '18 ' iia 1-15 Total Regulated Channels 34 116 Subscribers to the System 51532. H7 Total System Regulated Satellite Channels 26. Adjustment for Channel Changes H8 Adiuslment Factor from Benchmark Formula 1.0034 t H9 Gross Full Reduction Rate (G10 x H8I 5174912 Pa6e o r r 1 xcel 1 0 Win A ersion 2 0 1((1 Form 1200 \lav 1994 Federal Communications Commission Washington, D.C. 20554 Approved by: OMB 3060-0601 Expires: 4/30/97 MODULE I: RESTRUCTURED FULL REDUCTION RATE a Line Line Description Basic b Tier 2 c Tier 3 d Tier 4 e Tiers 11 Gross Full Reduction Rate ]H9] 517.4912 a• .. ' oa 12 Monthly Equip. Cost per Sub. [From Form 12051 51.0254 13 Full Reduction Rate D1-[2] f16.4658 14 Subscribers per Tier as of 3/31/94 [A2] 48355. ' 47746 15 Regulated Revenue [13 x 14. cal. a] 5796,204.6637 , 2 � �-,-� „ -„ 16 Percentage ofSubscriber-Channels [A5] 0.439 0.561 r " ' - 0.: 0'` 0. 17 Regulated Revenue per Tier 115 x 16 col. a -e] 5349,546.9302 S446,657.7335 SOAO 5000 5000 18 Regulated Revenue per Tier per Sub. [17/14, col. a -e] 572288 59.3549 50.00 50.00 50.00 Data from the Earher of the Date of/nreal Regulation or February 28, 1994 19 Enter Start Date (rnMdd/yy) [see instructions] 11/17/93 •��`.* r 4,w ""'' 'x �s „7 t `z , -` - ,y, 110 Programming Cost per Tier at Start Date 519.552.87 5120.721 33 50.00 111 Taxes per Tier at Start Date 50.00 50.00 50.00 112 Franchise Related Costs per Tier at Stan Date 50.00 50.00 50.00 113 Total External Costs per Tier [110+111+1121 - 519,552.87 5120,721.33 50.00 50.00 50.00 114 Subscribers per Tier at Start Date 51083. 50667. 0. x 115 Avg Ext Costs per Sub per Tier at Stan Date (113/1141 50.3828 523826 50.00 .50.00.. 50.00 Change m External Costs 116 Avg. Ext. Costs per Sub. per Tier as of 3/31/94 [B 131 50.4027 52_5696 50.00 50.00 50.00 117 Net Externals per Tier per Subscnber [116-115] 50.0199 50.1869 50.00 50.00 50.00 118 Full Reduction Rate + Extemals [18+117] 57.2487 59.5418 50.00 50.00 50.00 Page 7 Excel 4 Il Wm \ ersion 2 i T FCC Form 1200 Mav 1994 Federal Communications Commission Washington, D.C. 20554 Approved by: OMB 3060-0601 Expires- 4/30/97 MODULE J: COMPARISON OF PROVISIONAL RATE WITH FULL REDUCTION RATE cra Sighature' , 'SL C2J 74:,!�'- NANCY. MURPHY r. VISION RATE SPLCIAUST ( DateTitle �//�97 a a b Line Line Desert i tion Basic Tier 2 c Tier 3 d Tier 4 e Tier 5 11 Subscribers , r Tier as of 3/31/94 A2 48355. 47746. - 0. 0. 12 Weighting Factor (JI col. a -e / 31 col. a) 1. 03874 - 0. 0 -' i 13 Provisional Rate [FI] 58.133 510.8878 = 50.00r40 14 Wei:hted Provisional Rate 12 x 13 °` 58.4133 .z 410.1567 x; ',; . 50.00 �.•SOr i td � ..s50b0! J5 Aggregate Provisional Rate (sum J4 col. a -c] ' 519.164, 16 Full Reduction Rate [1181 572487.' : 593418 ."=' 5000 •`e `*�3 � '•:m "" 17 Wei:hted Full Reduction Rate 16 x 12 572487. ° .4216 .. d x0.00: 18 A• :re:ate Full Reduction Rate sum 17 col a -e 516.6703 Kt below. K I below. - COMPARE LINES J5 AND .18. If 15 is larger than 38, enter the amounts from Linc 13 (your provisional rate) in Line If 18 is larder than 35, enter the amounts from Linc J6 ( our full reduction rate) in Line MODULE K: MAXIMUM PERMITTED RATES BY TIER K1 MAXIMUM PERMITTED RATES 58.41 510.89 • 50.00 50.00 50.00 Note 1: The maximum permitted rate figures do not include franchise fees. The amounts billed to your subscribers will be the sum of the appropriate permitted rate and any applicable franchise fee. Note 2: The maximum permitted rate figures do not take into account any refund liability you may have. If you have previously been ordered by the Commission or your local franchising authority to make refunds to subscribers, you are not relieved of your obligation to make such refunds regardless of whether the permitted rate may be higher than the contested rate or your current rate. CERTIFICATION STATEMENT WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT (U.S. CODE TITLE 18, SECTION 1001), AND/OR FORFEITURE (U.S. CODE, TITLE 47. SECTION 503). I certify that the statements made in this form are true and correct to the best of my knywlegand belief, and pre main good faith. Name of the Cable Operator TCI CABLEVISION OF TEXAS, INC cra Sighature' , 'SL C2J 74:,!�'- NANCY. MURPHY r. VISION RATE SPLCIAUST ( DateTitle �//�97 a Page 8 i Excel 4 0 Win . Version 2.0 FCC Form 1200 May 1994 r TELE -COMMUNICATIONS, INC. FCC FORM 1200 PREPARATION DOCUMENTATION This metro will serve to document, in general terms, the steps and methodologies behind the preparation of FCC Form 1200 for systems owned and/or managed by Tele-Communications, Inc. ("TCI"). Documentation will cover only those lines requiring manual or computer input and not those lines that are calculated mathetnatically or by obtaining information from another line. MODULE A - CALCULATING YOUR MONTHLY REGULATED REVENUES PER SUBSCRIBER AS OF MARCH 31, 1994 Line Al Represents number of channels in each respective tier of service offered to subscribers in the reporting unit at March 31, 1994. Channel counts were obtained from either channel line-up cards or other system generated reports. For purposes of TCI's Form 1200 calculations, a reporting unit is one or more franchises with the same basic and expanded basic rates, the same channel line-up and the same franchise fee itemization status and calculations. Line A2 Represents number of subscribers in the reporting unit who subscribe to each respective tier of service at March 31, 1994. For bulk accounts, subscribers were calculated on an equivalent billing unit (EBU) basis (the method utilized by TCI to track bulk subscribers). Subscriber information was derived from either third party billing reports or schedules prepared by system personnel. Line A6 Represents monthly charge for standard non -discounted service for each tier of service offered to subscribers in the reporting unit (basic and expanded basic) at March 31, 1994. Rates were obtained from rate cards, third party billing reports, or other system generated reports. Line A9 Represents equipment revenue for the month of March, 1994. For purposes of TCI's Form 1200 calculations, the representative amount for March equipment revenue equals the Monthly Equipment and Installation Cost from page 6 of FCC Form 1205, Worksheet for Calculating Total Equipment and Installation Costs, Line 10. Line A10 Represents non -itemized franchise fees for the month of March, 1994. Franchise fees were calculated based on the reporting unit's franchise fee percentage applicable to Lines AS and A9. MODULE B: ADJUSTMENTS FOR CERTAIN EXTERNAL COSTS THROUGH MARCH 31, 1994 TCI has not adjusted its rates for certain external costs (i.e. programming costs, certain cable specific taxes and franchise related costs) for either tier as of March 31, 1994. Accordingly, the information included in Module B (beginning date) and Module I (start date) for certain external costs will be identical. Line B1 Represents the beginning date which is defined as the earlier of February 28, 1994, r Line B2 Line B3 the dare the reporting unit became subject to regulation by the local franchise authority, or the date of a valid complaint against the cable programming service tier. Represents monthly programming costs for each respective tier. Monthly programming costs are net of payments received from programmers as consideration for carriage of their services, plus copyright fees for carriage of broadcast signals, net of any indemnification. Reporting units subject to regulation prior to January 31, 1994: Monthly programming costs represent net programming costs for December, 1991 The copyright fee component of monthly programming costs represents the copyright fee calculation for the month of December, 1993. Copyright fees are paid semiannually in August (for the preceding January to June) and March (for the preceding July to December); therefore, it was necessary to calculate the representative monthly amount. December, 1993 was generally selected for the calculation since it was the representative month closest to the initial date of regulation due to the significant channel realignments that occurred beginning in September, 1993 (i.e. channel realignments completed and necessary accounting changes implemented). Reporting units subject to regulation after January 31, 1994: Monthly programming costs (including the monthly copyright fee calculation) generally represent costs for March, 1994 ‘vhich is the representative month closest to January 31, 1994 (January and February are not representative). Represents taxes per tier imposed by state or local authorities on transactions between the cable operator and cable subscribers for the month prior to the beginning date or representative month. For purposes of TCI Form 1200 filings, the figure entered on Line B3 will generally be zero. As applicable taxes are imposed or increased, the taxes will be analyzed and included in future Form 1210 filings. Line B4 Represents franchise related costs per tier for the month prior to the beginning date or representative month. For purposes of TCI Form 1200 filings, the figure entered on Line B4 will generally be zero. As franchise related costs are imposed or increased, the costs will be analyzed and included in future Form 1210 filings. Line B6 Represents the number of basic Subscribers to the reporting unit as of the beginning date and generally equals the number of basic subscribers included in the reporting unit's FCC 393, Line 103 (initial date of regulation). Beginning date subscribers are as of September 30, 1993, December 31, 1993 or March 31, 1994 depending on the reporting unit's initial date of regulation. Line B8 Represents programming costs for each respective tier for the month of March, 1994. Monthly programming costs are net of any payments received from programmers as consideration for carriage of their services, plus copyright fees for carriage of broadcast signals, net of any indemnification. i fcc1200v1 6/14/94 Line B9 Line B10 Line C2 Represents taxes per tier imposed by state or local authorities on transactions between the cable operator and cable subscribers for We month of March, 199-1. For purposes of TCI Form 1200 filings, the figure entered on Line B9 will generally be zero. As applicable taxes are imposed or increased, the taxes will be analyzed and included in future Forni 1210 filings. Represents franchise related costs per tier for the month of March, 1994. For purposes of TCI Form 1200 filings, the figure entered on Line B10 will generally be zero. As franchise related costs are imposed or increased. the costs will be analyzed and included in future Form 1210 filings. MODULE C: CALCULATING YOUR BENCHMARI: USING MARCH 31, 1994 DATA Represents the total number of regulated non -broadcast channels per tier offered to subscribers in the reporting unit as of March 31, 1994. Non -broadcast channels were obtained from either channel line-up cards or other system generated reports. Non -broadcast channels include broadcast channels received via CARS, microwave, common carrier or satellite, including PEG and access channel which are not available over -the -air. Line C4 Represents the average monthly number of tier changes charged to subscribers in the reporting unit (between the basic tier and expanded basic tier) during the year ended December 31, 1993. Tier change information was derived from either third party billing reports or schedules prepared by system personnel. Where information was not available or was incomplete For all twelve months, the average was computed for those months where complete information was available. Line C5 Represents the median household income of people living in the reporting unit. The Census Income Level was obtained from either the FCC by utilizing Form 1201, or the 1990 U.S. Census Summary Tape File 3-B, which provides census income data by zip code. Where the reporting unit includes multiple franchises, and multiple Forms 1201 were obtained from the FCC, the amounts were weighted to reflect the number of subscribers in each franchise. The information by zip code, where utilized, was weighted to reflect the number of residential subscribers in each zip code. Line C6 Represents the monthly average number of additional outlets charged to residential subscribers in the reporting unit during the year ended December 31, 1993. Additional outlet information was derived from either third party billing reports or schedules prepared by system personnel. Where information was not available or was incomplete for all twelve months, the average was computed for those months where complete information was available. Line C7 Represents the monthly average number of remotes rented to subscribers in the reporting unit during the year ended December 31, 1993. Information regarding remotes was derived from either third party billing reports or schedules prepared by system personnel. Where information was not available or was incomplete for all twelve months, the average was computed for those months where complete information was available. Line C8 Represents the total number of basic subscribers to the system as of March 31, 1994 (for purposes of TCI's Form 1200s, the system represents the physical 3 fccI200vI 6/11/94 Line C9a Line C9b Line D2 Line E2 headend that the reporting unit is a pan 00. Systems in which TCI owns or controls an equity interest (active or passive) of more than 20%, is a general partner. or is a majority voting shareholder are considered to be part of the TC[ MSO. At March 31, 1994, the number of systems in the TCI MSO was 1,526. MODULE D: RESTRUCTURED MARCH 31, 1994 RATES Represents monthly equipment and installation costs per subscriber as calculated in Form 1205. Equals FCC Form 1205. page 6, Worksheet For Calculating Total Equipment and Installation Costs, Line 14. MODULE E: RESTRUCTURED BENCHMARI: RATES Represents monthly equipment and installation costs per subscriber as calculated in Form 1205. Equals FCC Form 1205, page 6, Worksheet For Calculating Total Equipment and Installation Costs, Line 14. MODULE G - CALCULATING YOUR FULL REDUCTION RATE USING SEPTEMBER 30, 1992 DATA Represents number of subscribers in the reporting unit who subscribe to each respective tier of service at September 30, 1992. For bulk accounts, subscribers were calculated on an equivalent billing unit (EBU) basis (the method utilized by TCI to track bulk subscribers). Subscriber information was derived from either third party billing reports or schedules prepared by system personnel and generally equals the subscribers included in the reporting unit's FCC 393, Line 203 (if FCC 393, Worksheet 2 was completed). Represents monthly charge for standard non -discounted service for each tier of service offered to subscribers in the reporting unit (basic, expanded basic and super expanded basic where applicable) at September 30, 1992. Rates were obtained from rate cards, third party billing reports, or other system generated reports and generally agree to the service rates included in the reporting unit's FCC 393, Line 201 (if FCC 393, Worksheet 2 was completed). Represents equipment revenue, for the month of September, 1992. TCI has identified basic additional outlet' revenue (account 5010.0022), installation income (account 5020.0001), converter income (account 503 1.0000) and remote device rental income (account 5082.0000) as sources of equipment revenue. Revenue amounts were obtained from the books and records of TCI. Where September, 1992 was not a representative month, another month, or an average for 1992 was utilized. Line G 1 Line G2 Line G5 Line 06 r Represents non -itemized franchise fees for the month of September, 1992. Franchise fees were calculated based on the reporting unit's franchise fee percentage applicable to Lines 04 and G5 fcc1200v1 6/14/94 r MODULE H: ADJUS'f\IENTS FOR CHANNEL CHANGES FROM SEPTEMBER 30, 1992 TO THE EARLIER OF THE DA'Z'E OF INITIAL REGULATION OR FEBRUARY 2S, 1994 Line 1-11 Represents the total number of regulated channels offered to subscribers in the reporting unit as of September 30, 1992. Channel counts were obtained from either channel line-up cards or other system generated reports and generally equal the summation of channels included in the reporting, unit's FCC 393, Line 202 (if FCC 393, Worksheet 2 was completed). Line H2 Represents the total number of basic subscribers to the system asof September 30. 1992 and generally equals the total number of basic subscribers included in the calculation of the reporting unit's September 30, 1992 benchmark channel rate included on FCC 393, Line 220 (if FCC 393, Worksheet 2 was completed). Line 1-13 Represents the total number of regulated satellite channels offered to subscribers in the reporting unit as of September 30. 1992_ Satellite channels were obtained from either channel line-up cards or other system generated reports and generally equal the number of satellite channels included in the calculation of the reporting unit's September 30, 1992 benchmark channel rate included on FCC 393, Line 220 (if FCC 393, Worksheet 2 was completed). Line H4 Represents the start date which is defined as the earlier of February 2S, 1994, the date the reporting unit became subject to regulation by the local franchise authority, or the date of a valid complaint against the cable programming service tier. Equals the same date as Line B 1. Line H5 Line H6 Represents the total number of regulated channels offered to subscribers in the reporting unit as of the start date. Channel counts were obtained from either channel line-up cards or other system generated reports and generally equal the summation of channels included in the reporting unit's FCC 393, Line 102 (initial date of regulation). Represents the total number of basic subscribers to the system as of the start date and generally equals the total number of basic subscribers included in the calculation of the reporting unit's benchmark channel rate included on FCC 393, Line 121 (initial date of regulation). Start dace subscribers am as of September 30, 1993, December 31, 1993 or March 31, 1994 depending on the reporting unit's initial date of regulation. Line H7 Represents the total number of regulated satellite channels offered to subscribers in the reporting unit as of the start date. Satellite channels were obtained from either channel line-up cards or other system generated reports and generally equal the number of satellite channels included in the calculation of the reporting unit's benchmark channel rate included on FCC 393, Line 121 (initial date of regulation). MODULE I: RESTRUCTURED FULL REDUCTION RATE Line 12 Represents monthly equipment costs per subscriber as calculated in Form 1205. Equals FCC Form 1205, page 6, Worksheet For Calculating Total Equipment and Installation Costs, Line 14. r ice 200v1 6/14/94 Line 19 Represents the start date which is del -hied as the earlier of 1=ebruary 2S. 1994, the date the reporting unit became subject to regulation by the local franchise authority or the date of a valid complaint against the cable programming service tier. Equals the same date as the date entered on Lines B I and EN. TC1 has not adjusted its rates for the certain external costs as of March 31. [994. Accordingly. the information included in Module B (beginning date) and Module [(start elate) for certain external costs will be identical. Line 110 Represents amount included on Line 137. Line'l l l Represents amount included on Line B3. Line 112 Represents amount included on Line 64. Line 114 Represents the number of basic subscribers on Line B6. 6 fcc 1700v I 6/ 14/94 Federal Cowmarnoae Wallington, OC 20554 FORM 1205 DETERMINING REGULATED EQUIPMENT AND INSTALLATION COSTS "EQUIPMENT FORM" F0011 H0062A Commas Out ldmuf.a (CND) of cable ma TE010S Da of Fos Submma 06d0A4 Now of Cable Opine TCI CABLEVISTON OF TEXAS. INC Mala Adta of Cable Operator 4120 S PADRE ISLAND DR Cay CORPUS CHRISTI Sue TX ZIP Code '*43-44n Nae mid £0e a perm mmpleaa His In MOORL DENNIS MGR TScpbe tab (512)151-5059 ra Numb 1312)057 -SMF Ns of Waal Fraday Manly MARY RHODES MAYOR Mali. Adam of Lod Faadiey Amboy CITY OF CORPUS CHRISTI P.O. BOX 1277 City CORPUS CHRIST Sur TX ZIP Code 76469-917/ I. This fa a beim field: (Euler a "a" is the appropriate Mel ElIn melu me with FCC Form 1209 FCC Fa 1220, or FCC Form 125. Aad IM aplm.d FCC Fa 1200. FCC Fa 1220. or FCC Fano 1225 m the Doer of rut from OR ole order er ('.300 FCC ml.e man. a and 010.4 M dw form Eat the da a you la filed dus lam (maJdh Note: Thu dad M die da m whack the rata la 5mufb by using amber FCC Form 393 or We peen Nang of this Iona. were effect 1 Facer the due awaid yin Marl lar Bala for dr fuel— reflected undo da: 12/3192 (mmMdln) Na: Thu will maim IM ad ofthe 12 -math fiscal year for .Aid you a films this form SCHEDULE A ANDC INFORMATION AS OF 10/31/93. OTHER INFORMATION FOR THE YEAR ENDED 12/31/92. 3. Imdiar de Carina maa Maar able ryas cuter a"i 3. the enact WO CSaporaoo Subdav 5 seer pmmvdp Sole Psona alup Oa [Ma rola below' x i Pop 1 rvcc140 Wm Vena 20 Appuwd by. OMB 3060-0592 Lapom'. 4/0/97 FCC Form 1203 May 1994 Fdmol Commutates Commm SVmhrymq DC. 20554 SCHEDULE A: CAPITAL COSTS OF SERVICE INSTALLATION AND MAINTENANCE OF E I UIPMENT AND PLANT 1 C Book Vibe AOanvIaed .... mmn D Deferred Taxa Net Bnk Vain B CH)) Rn of Raw" Vehicles 51.034 430 75 5431/0195 569.19190 152a 415.90 01125 Cdalmon a Gmaa . R.r. Federal Income TM Rae G2 03 Sae Imine TM Rae Net Total =oat Ta Rae GIhG2.G1.02 035 035 A6'bnm b Rdleu Imam Deductibility Acm.I I....m Amon Taal Net Assam Rao Ren.n Ieynnml Amon Wb. ImmmS Deductibles Feer 04Ni4c 5731116.11300 514 111 901 161.00 11.559030095' 04599 0.109 Ad usenet. for Nan -CG 110. Bye Rmnv n Inotanml Mmml 04c D ambupom Cndbui.0 m.0 not =coed G6b Return Su in Waxes TM 064-661106c GaW Rue C ..'. 1 I.03 Odvl 105.Che Rmms on le.mnem G9mdL. for T.e Ex Maul CAil.l Costs IIM GRAND TOTAL 1.... N li.e IC espied el. 5000 1000 Dna 573.0279196 1151 931 15 1721766.0696 3713530.6791 Toole 1340 923 60 554653 00 542 73095 Moi.ln.= Facilities 5. :b behest 9100 1000 T33.7551O91 52400900 1101 5000 Speedy . Other 1 Spmf3 Other 2. SCHEDULE B: ANNUAL OPERATING EXPENSES FOR SERVICE INSTALLATION AND MAINTENANCE OF EQUIPMENT Salmue & Border Supel.a A Amual Op. Expenses for 5.c. Imd1. and MOM. of Equip unit. Other Tnn Other (Speedy 6e1o.0) Oder2 (Speedy =lm.) 11 114 611 10 5204.79410 5000 5129369 59 173.99577 5111600.51 GRAND TOTAL ism .f Line A =Dial 51114,4Uss Bea 2. Speedy Char 1 CONTRACT LABORCONVERTER MAINTENANCE Speed. Omer 2 VEHICLE EXPENSES Page E.c140 Wm Vman 20 AA+0Kdb 05.411 3060.0591 EWbm'. 4fO97 FCC Form 1205 !.lav 1994 Federal Commaeuma Comm, Wv\gmn. D C. 20554 SCHEDULE C: CAPITAL COSTS OF LEASED CUSTOMER (IUIPMENT A E9mpmen' Remote 1 Remote 2 Rwae 3 Convener 1 Cementer 2 Converter 3 Oiha Equip 8 Toni Mennen ¢ Wenn l Anne Enke/non) hem 2 (Swdvl Averse Hoon per InWhax Inds an eepla 160001 Ina 1. (SpeaN ) Arae Hoar per Inwllame latch in erylnapn) C Taal 1 of Unn. n Serra 1119 10107 2244 D Germ Rook Value 5106.11972 5109152/193 144911920 E Accumulate Dep.m1aia 59641311 199131190 11711/1510 F Peered Tans (1310401 152911.19) (16.793 421. G He look Value 11:14E`f11 510.12690 10.00 500-0 510412431 5110.13537 50.00 5000 H Crossed-UpRatea(Rem 'From Schad A. Lime NI Olinw9 "+ �. ey4„yv'.iCr-Y."_ �etT� 1 Reeve ern lantern Gn.x6Lp ( Taxa 10a 111 51,404.1176 $000 5000 514.4443365 - 125A51J04 5000 3000 1 Cunene Ronna fat Demeanme 33 62564 127309.53 164403 64 K Anatol Cgeal Cos 11 T 11 S5A154376 5000 - 5000 551.353.7145. U902.1411 $000 50.00 L GRAND TOTAL (um al time K atom' 5146{793511 4e 3. SCHEDULE D: AVERAGE HOURS PER INSTALLATION A. Avenue Han per Unwind Home LuWlemme (etude w eeplmteoanl 0. Aevme Han pm RcW94 Home lnmalI.noo With am en neneem1 C. Avant Hoer pa AJ6uipnd Conwan Inallman at Time of Innd !metalline. Inch n enpin ion) D Avenge Hwa per AMMiend Come 100 oaallaaipn Ralnnn9 Senna I allmm (much n enpin ace) E Other Ivallmw M Item T.pe): hem 1 (Spear') Avenge Hwa pa IeaWlna (nck n nplmunal hem 2 (Swdvl Averse Hoon per InWhax Inds an eepla 160001 Ina 1. (SpeaN ) Arae Hoar per Inwllame latch in erylnapn) Page 5 rucI4061n Vyam 20 Approved by 06(03060-0592 Enna 4/1097 FCC Foe 1201 61n 1994 Fcda.L Conm®,uw Comm,. WnhuEnq D . 20554 WORKSHEET FOR CALCULATING PERMITTED EQUIPMENT AND INSTALLATION CHARGES STEP A.Heade Service O.rr 1. Tot& C.pW Com ef Instellarson d M.mrp Mau:doh A. Boa 11 5213,530.6794 2. Total Annual Opossum Espana; for lnNWm ad Meinalmee lYMLk R, Do. 21 51,934,4331 3 Teal Copal Cm ad Opereow E.apmv for lu.Ileo. end Malasslo Hine l + Ls 21 1221]9741294 4 Customer Equipment mW luull.m. Pereeetwo Bosch n eageowO 5 Anemia ammeter Exhumer Maratenarde N lu.11.lio. Can, Excludin. Cm of Leered Equipment )Line 3 . Lune 41 5000 6. Taal Leber Home for Mum.ar ad (misname of Cummer EWwpmml ad Service; Beach expW..aon1 Hee&v Servo Chime 7 IDIVAR (HSC) (1. tee 54Lee 61 `METHOD OF BILLING FOR INSTALLATIONS (place u 'i u the .ppnpnMr Ma) _ lesmillaroas— b the Mo Owed on the IBC cJa4. d u Nis 7 luullsse haul m e mdmd elute. STEP R. (maenads* Charge I. Umlaut HSC kc .1l ngWnse (From Sup A line 71 OR 9 Amnia Chep for lmWlera Tope . U.wad lime !nulls). .l. MSC (Lim H ID(VAI .L Average Hera auLwed Horn Inull4a (Schedule D. Gee Al 3'0. .3. C%. a thawed Hae I..WWme 1.1 a.21 e. Raul Home Imdl.nm 01. NSC (Lae ❑ Ippp £C � '.. b2. Arnie feel a PIe-'ud Mae lmOm (Schedule D. Line 01 + O 13 Claw per Pwonsed Home I. l2I.Oo. @I .021 4 4 4 4 c. Additional Cmom1 NSW Isa a Time el Initial ln.ell.nen eI. ILSC Hine 71 -F0(VCO ;•P."y< a.Avenge Hams per Adti0n.J Cmmo.Iutlh0.. at lime of Inst Instal. (Schedule D. Geed 0 .3 Orr a Additional C tem nmnloo. m Tde of Mewl Installation (c I . c11 d. Adthtot.1 Comma. Iemll.eo. Rgukthe Scteve laull.m m. HSC Hate n'OWN dl Ars. Hon per Adse.Cau.ma SWlm Rea S. l.nnL (Schedule D. Lae Dl It d3. Chep per AmidenJ Co o. lem.11.een Rcaan. Sepeee In411.0 Id 1 a E2) ,:6; e. Other nstslmua (A. .axed n Schduk O. Line Ey el. HSC (Ls 71 .: IDIV8( .2 Avenge Homs per naYnea of lm l lwdale D. Inc 6,11a 11 a ;::IL el. Ossp a laJnaen of hem I lel a ell .4. HSC Iline 31 41DW 9! d.Avenge Hours per O0WleadItem 3lSmduk D. Lae E. Item 11 -0. W. Claw aImllda of Int 2(.4• 911 .7 MSC Hine 7) R)IVphro�.:.. yg�"•?. <e Avmp Nm. per Intl W1m of hem l (Schedule D. Lm E 11m 31 9 e9. Dune per Inmllmon of Int 3 lea n ell Paso 4 Exa14 0 Wm yawn 2 0 T T Approved by 03413 3060-0592 Expires 40097 FCC Form 1:(3 Nov 1994 FMCS C.00100.140•11 Comm,.. W Wun{me, D.C. 20134 STEP C. Claret ler leased fames (Canine temente* ler each aizK Ue Eirteran aper • Renee 1 6 Rmae 2 Rcn04e3 10. Total Manlmme/SenDoHoe (Conmpm4ml column from ScSMuk C. Lu¢ BI 0. 0 0 11. FISC rune 21 IDIVM IIRVM 1gVM 12. Tad ManmmamSae Cm hive lO a Lae 111 �.. . IOIVM IDIVM 'MVO I3. Annual Camel m ICnmapendm column free Sdduk C Lin KI '. 15,W14316 1000 $000 14. Total Cm of Remote [Lee 12 • Lane 111 MAV/04 /DIVM IgV20 13. Numbs of Units a Sa.e(Caeepadna color. from Schedule C. Line CI 3109. a.. 0. 16. Uea Cm (Lane 14/x 131 MVO 10.00 $000 I3 Rate per Month Re 1641111 IDrvM 10-00 10-00 STEP D. Claves lee linen Ceeeener Inc (Calculate oedemata for each emafaatedv 6ilknne repel • 5 Memel Charm fee aeon Seam Tan II. Tad Mamc collevin Han fCamaede Dolma from Schedule C. Line Bl Caamtr 1 - .. 0 Conniver 2 "- 0. Cn.eer3 0 19. HSC Ham. 71 _ . : 9DNA1 IDNM IMVM 20. Total Mescree/Sariaa Cm [Lae IIx 191 .:/DIVM IDNM SI VIN 21. Anal Capwel Cam lConnpad M column (m Schedule C. Lae KI $31.9347141 509,,01612 Sa00 21. Tad Cm of Convener (Lift 204 Lm 211 400VM ,:.. IDryM ID(VM D. Number of Una a Senn lCanapaedam alma fico Schedule C, Lin Cl ::10201 ;: 914. 0 24. Unit Gast Has 22(Lane 231 n r- 0(O ' /MVO 3000 23. Rik per Meek (Ise 2641221 -... . IIXVM 101VM 5000 SEEP G C1.e1ea fa Oder Leased E9mipmar 26. Tod Manmcm4Smke Han ICanapo dohe color. from Schedule C. Lia 131 2t HSC Hine 11 IMVM 21. Tod Maaamv/Sana Cm (Line 26 x Lae 231 1dvM 19. ARMS Canal Com ICaamd.e came (Inc Schedule C. Lin KI 1000 30 Tod Cm of Equipment lLme 20MAne 291 1MVM 31. Number of Units m Smoke (Canamdm colma from Schedule C. Line CI 0 13. Una Ga ILa 30M1se 311 3000 31 Ram per Month fame 3241211 10.00 METHOD OF BILLING FOR CHANGING SERVICE TIERS OR EQUIPMENT Iplae.a•i is lm appnprim Mal m • Nomad Ckma (Enter the meal cline m La. 34) _ n a Ueda Hourly Scree Chaim as m Average a9e(ForalmA.mye Home fer C•Am Sake Ti., m Lme 36b.1 STEP F. Gleam for Clete. Service lien a Em.ipmal 34 Memel Charm fee aeon Seam Tan Ilam use a emulate mak of deem pie 64'0 anlM ha at the nokt. OR 33. Unit Hoots Scree awe OR 36 Aerate Idea for ChaSma Save Time 36e. HSC ILo.e 11 1dVM 366. Agnate Home, Chap Sae Tim 364 A.mate awe for Change Sale Dm [Lute 341 r Lae 3651 Put E.rel4 0 Wm Vain 2 0 AVPnnM by 0MB 1060.0392 Expo.'. NO.N] FCC Fonn 201 Mo 1994 Fedora Cemanaeanman Comma WWmemm. O.0 20554 WORKSHEET FOR CALCULATING TOTAL EQUIPMENT AND INSTALLATION COSTS 1 Total Copia Com oflnmalmma W Mmnienmiee !Schedule A. Box 11 121533067,/ 2. Ted AnnJOpmanme Empanel kr lulSlmaw =Id Maweavx (Schedule B, Box 21 51,931.443 55 3 TdJ Annual Capita Cam pf Inmllmw M Mamlqu¢ (Lia 1 • Lute 21 9131735437,1 4 Gastonia- E9mpmni std lneullatua Pa¢eye (mach oaplamonl. 0 2115 5 Annul Cementer Equipment Mainannmce and Innllmkn Cmm. Eacludm4Cab of Leered Equipment 141131021.59 [Line 3 a Lite Al 6 Tema Cmml Con of Lamed Customer Equipment lScleduk C, Box 31 9146.67,3924 7 Anne! Customer Equipment M lob 1lism Gera Kee 5 ♦ Lore 61 S621519.610 $ Pmmuge Nieuwe mFmdum Ana late wugckma) 9 Allzrd Amur femme= ad esteem. CooIlse 2c Lime 81 9621319 6113 10 Mmtix Equipment M kWlmim Ga Ham 9/(12)1 123/14612 11 Number of Boric Sabecnen a Francine 51013 12. MwbN Equipment and hotelmen GJ W SmbmikmlLia 10/Line 111 11.0254 15. Inflame Adjmmmt Few (See Inmecmul M. A0laaand MaLLN Equipment end Owallakpn Cost per Subscriber (Lim Ila Lim 131 51 0254 Pete 6 Eval. O Wm Vcnme 2 APP .ml b1 OMB 30600592 Emam' 4/I0A7 ICC Form 1205 Mn 1991 Federal UmmmucuCaen. Wnbmfuq D C. 20554 SUMMARY SCHE Cert fgmipmnt ..d IenYline. Rana Perm!pa4 Anel 1 Cron for Coble Sena Innmllmeom Ora III"NA 1 / • Hoed. Ram (Step A. Lore 11 yily Y C WOW '»CDN RATE SPEG5AU51 b Avn•R{ Install •pan Charm - I. Inwllam *Wastrel Homes Ike/ B. Lee 901 2 Intel W m of Prtwe1 Hohn (Step B, Line 9631 3 lnnYlae, of Additions! Gmr-mu (yep . 1 4 InmWlen of ALJS..M Carate Regmwm Separate Initial (Step 0 Lem 9831 3 Other InnYlm. (mart.') ISmp B. Lim 943.946, 9.91 • b L Moabl. Q.Re for lesMRmem C aeh (ytpC Lie. 17 nlomn mel Ruore Centred Tvpe l: IDN/01 Ruda Cool Type t. MOO Rear Como. Type 1. ;50.00 3 Monthly Lame for las of Converts Bo...IS.m D. Lim 25 mesa KI Cnvem Box T.pe I: 100V/0! Convener Box Tvpe 2 RgV.BI Convener Box T.pe 3. 50.00 4 Moad&N large for les of Other Epwms )Sap E, Ls 331 Other Equipment ISpnd.') S000 5 Chane fp Chmte, Den filthy) !Step F, Lae 34, 35 a 36.1 LABOR COST AND POLICY CHANGES Indies your r...a to Se Wang elms gdntm11 by pliant sa'i a the .pptpnae bit I Have you mcltled die labor cos msaaod.dh mbo.ba cable drop m yom change for math i.nslao.' YES X NO 2 HavewecapgSo.J the labor cons asw cod ends Wn .ba cable drops, YES JUNO 3 If roe din fibs dui fora boot have you thawed aye policy, e5.,.dn theourmag or nm mammon Wit canes an increase m - costs toehold m the ®pmts Ofewpaat d mMYlbdn chattels YFS (Yoe ms arch *full enplane .) NO H CERTIFICATION STATEMENT WILLFUL FALSE STATEMENTS MADE ON TIOS FORM ARE PUNISHABLE BY FWE AND0R IMPRISO ENT N.S. CODE TITLE 11. SECTION 10013, ANDJOR FORFEITURE 11.1.5. CODE TITLE 4T. SECTI 3 1 math dim the aYaats made es da form areat o W nnm10 the bit of ow Led.iodn _a2 .W..n Nse.f the Cable Oman TCI CABISVISION OP TEXAS. INC. C. Sfnmmr. mar/ 6 -P7-z1 4- L Ora III"NA 1 / Title yily Y C WOW '»CDN RATE SPEG5AU51 Page Excel 40 Wm Ver, 20 r r AVpeW bv' OMB 30680591 Eire -4/3093 FCC form 1203 M•. 1994 Hradend Name. CORPUS CHRISTI [ AMI Headend Number: 110062A FCC FORM 1205 WORKSHEET FOR CALCULATING TOTAL EQUIPMENT AND INSTALLATION COSTS ATTACIIMENT LINE 4 LINE 1. Box 1 of Schedule A 1 283,53068 S LINE 2. Percentage of Line 1 equipment involved in maintenance and installation activities Contract Labor 0.2000 47,849_96 LINE 3. Schedule A customer equipment maintenance and installation dollars (Line 1 x Line 2) 1 56,706.14 Maintenance/Operating Material LINE 4. Schedule B Analysis End column total I 425,204.09 59,373.72 LINE 5. Annual customer equipment maintenance and installation costs (Line 3 + Line 4) S 481.91023 0.2000 LME 6. Box 1 of Schedule A S 283,530 68 S LINE 7. Schedule B Analysis 100% column total I 1934,443.55 LINE 15. LINE 8. Total capital costs and operating expenses for installation and maintenance S 2,217974.23 l LINE 9. Customer equipment and installation percentage. Line 4 (Line 5 / Line 8) Vehicle Exp -Repairs & Tires 0.2173 33,337.27 SCHEDULE B ANALYSIS • INSTALL / • LINE 10. Technical Salaries S 1,293,695.87 0.2000 S 258,739.17 LINE 11. Contract Labor S 47,849_96 0.1500 S 7,177.49 LINE 12. Maintenance/Operating Material S 197,912.40 0.3000 S 59,373.72 LINE 13. Freight I 6,881.90 0.2000 S 1,376.38 LINE 14. Converter Maintenance S 26,145.81 1.0000 S 28,145.81 LINE 15. Vehicle Exp -Gas & Oil S 78,263.24 0.2000 S 15,652.65 LINE 16. Vehicle Exp -Repairs & Tires S 33,337.27 0.2000 S 6,667.45 LINE 17. Vehicle Rental S 0.00 0.2000 S 0.00 LINE 18. Employee Benefits S 120,987.51 0.2000 S 24,197.50 LINE 19. Payroll Taxes S 129,369.59 0.2000 S 25,873_92 LINE 20. Total S 1,934,443.55 S 425,204.09 Page TELE -COMMUNICATIONS, INC. FCC FORM 1205 PREPARATION DOCUMENTATION This memo will serve to document, in general terms, the steps and methodologies behind the preparation of FCC Form 1205 for systems owned and/or managed by Tele-Communications, Inc. ("TCI"). Documentation will cover only those lines requiring manual or computer input and not those lines that are calculated mathematically or by obtaining information from another line. FCC Form 1205 is being prepared in accordance with the "General Instructions for Attachment of FCC Form 1205, Determining the Costs of Regulated Cable Equipment and Installation," page 9, Form 1200 instructions. Such instructions indicate that if the reporting unit's rates have been restructured to back out equipment and installation at cost based on a fiscal year for which the books have been closed prior to March 31, 1994 then that data may be utilized to complete a single Form 1205. Accordingly, TCI has utilized the equipment and installation cost data included in the reporting unit's FCC 393 for purposes of preparing the Form 1205 filed in conjunction with the reporting unit's Form 1200. The following schedules and worksheets are not completed for each reporting unit since the Form 1205 has been prepared for the purpose of determining the cost of equipment and installation to back out from rates on Line D2 or Line E2 and on Line I2 of Form 1200, rather than to establish equipment and installation rates: Schedule D: Average Hours Per Installation Worksheet for Calculating Permitted Equipment and Installation Charges Summary Schedule The cost data, subscriber information and converter unit information included in the Form 393s and utilized in the Form 1205s is included for the period closest to the initial date of regulation for which TCI had closed its books and for which the information is practically obtainable. The dates utilized are as follows: Initial Date of Regulation prior to January 31, 1994: Schedule A: October 31, 1993 Schedule B: December 31, 1992 Schedule C: October 31, 1993 Subscribers/ Converter Units: September 30, 1993 Initial Date of Regulation after January 31, 1994: Schedule A: December 31, 1993 Schedule B: December 31, 1993. Schedule C: December 31, 1993 Subscribers/ Converter Units: December 31, 1993 or March 31, 1994 T r Line A Line B SCHEDULE A - CAPITAL COSTS OF SERVICE INSTALLATION AND MAINTENANCE OF EQUIPMENT AND PLANT Represents the types of equipment necessary for installation and maintenance of cable facilities. TCI has identified these items as vehicles (accounts 2310.0000 and 2404.0000) and maintenance equipment (account 2300.0000). Represents the gross book value of the equipment items listed in Line A at either October 31, 1993 or December 31, 1993. Gross book value is taken from the books and records of TCI. Line C Represents accumulated depreciation on the gross book value of the equipment items listed in Line A at October 31, 1993 or December 31, 1993. Accumulated depreciation is calculated using TCI's standard useful lives for the respective equipment items (5 years for vehicles and 10 years for maintenance equipment) on a straight-line basis (with half-year convention). Line D Represents the deferred tax balance associated with the items listed in Line A at October 31, 1993 or December 31, 1993. Deferred tax balances were calculated by multiplying the difference between the net book value and the net tax value by the sum of the Federal income tax rate (35%) and the applicable state income tax rate (net of the Federal income tax benefit). Net tax value was calculated using gross tax value minus accumulated tax depreciation. Where there is more than one reporting unit in the accounting unit (an accounting unit is the level at which TCI has historically accounted for the accumulation of costs in accordance with generally accepted accounting principles), TCI has allocated gross book value, accumulated depreciation and net tax value based on the proportionate number of subscribers in the community unit (franchise area) to the total accounting unit. Line F Represents the required rate of return of 11.25%. Line G1 Represents the Federal income tax rate in effect during 1993 of 35%. Line G2 Represents the reporting unit's applicable state income tax rate for 1993. Line G4a Represents 1993 interest expense for the entity (generally TCI) recognized for Federal and state income taxes purposes. Line G4b Represents total net assets of the entity noted in Line G4a. Total net assets equal total property, plant and equipment minus accumulated depreciation, and total intangibles minus accumulated amortization. Line G6b Represents distributions made by partnership or joint venture systems managed by TCI during the year ended December 31, 1993. Amounts are included only for reporting units that are part of a partnership or joint venture. Line G6c Represents contributions received (cannot exceed amounts included on Line G6b) from those holding ownership interests in partnership or joint venture systems managed by TCI during the year ended December 31, 1993. Amounts are included only for reporting units that are part of a partnership or joint venture. fcc 1205v I 6/14/94 Line J Represents annual depreciation expense for the items listed in Line A. Depreciation expense is calculated using TCI's standard useful lives on a straight-line basis (with half-year convention). SCHEDULE B - ANNUAL OPERATING EXPENSES FOR SERVICE INSTALLATION AND MAINTENANCE OF EQUIPMENT AND PLANT Schedule B lists all annual operating expenses (excluding depreciation) for installation and maintenance of alt cable facilities for the year ended December 31, 1992 or for the year ended December 31, 1993. Annual operating expenses for installation and maintenance of cable facilities are identified as technical salaries, contract labor, maintenance/operating material, freight, converter maintenance, vehicle expense -gas and oil, vehicle expense -repairs and tires, vehicle rental, employee benefits and payroll taxes. Technical salaries, contract labor, maintenance/operating material, freight, converter maintenance, vehicle expense -gas and oil, vehicle expense -repairs and tires and vehicle rental expense amounts were obtained from the books and records of TCI. Employee benefits were calculated by multiplying the number of full time equivalent technical employees by $2,100 (estimated average employee benefits per TCI employee as calculated by TCI's risk management department). Payroll taxes were calculated by multiplying technical salaries expense by 10% (estimated average payroll tax percentage). SCHEDULE C - CAPITAL COSTS OF LEASED CUSTOMER EQUIPMENT Line A Line B Line C Line D Line E Line F Represents customer equipment for which there is a separate charge. TCI identified remotes, standard converters and addressable converters as those items of equipment which will have a separate charge. Total maintenance/service hours are not included in Schedule C since the monthly charge for remotes and converters is not being recalculated at this time (i.e. not the annual filing of Form 1205). Represents the number of units in service as of September 30, 1993, December 31, 1993, or March 31, 1994. Represents the gross book value of the equipment items listed in Line A at October 31, 1993 or December 31, 1993. Gross book value (account 2110.0000) is taken from the books and records of TCI. Represents accumulated depreciation on the gross book value of the equipment items listed in Line A at Octob9t 31, 1993 or December 31, 1993. Accumulated depreciation is calculated using TCI's standard useful life for converters (5 years) on a straight-line basis (with half-year convention). Represents the deferred tax balance associated with the items listed in Line A at October 31, 1993 or December 31, 1993. Deferred tax balances were calculated by multiplying the difference between the net book value and the net tax value by the sum of the Federal income tax rate (35%) and the applicable state income tax rate (net of the Federal income tax benefit). Net tax value was calculated using gross tax value minus accumulated tax depreciation. T r 3 fcc1205v1 6/14/94 Line J Where there is more than one reporting unit in the accounting unit. TCI has allocated gross book value, accumulated depreciation and net tax value based on the proportionate number of subscribers or converter units in the community unit to the total accounting unit. TCI has historically recorded all costs associated with remotes, standard converters and addressable converters in one account (21 10.0000). Accordingly, to arrive at the gross book value, accumulated depreciation and net tax value, account 2110.0000 was allocated between remotes, standard converters and addressable conveners proportionately based upon estimated fair values. Estimated fair values are calculated by taking estimated costs for remotes (57), standard converters (538) and addressable converters (593) multiplied by the number of units in service. The proportionate fair value for each item to the total fair value was then multiplied by the total gross book value, total accumulated depreciation or total net tax value to arrive at the allocated amounts. Represents annual depreciation expense for the items listed in Line A. Depreciation expense is calculated using TCI's standard useful life for converters on a straight- line basis (with half-year convention). WORKSHEET FOR CALCULATING TOTAL EQUIPMENT AND INSTALLATION COSTS Line 4 Represents the percentage of costs and expenses entered on Line 3 (total annual capital costs of installation and maintenance) that relate to the maintenance of customer equipment and customer installations used to receive basic tier services. Calculated as the sum of the total of Box 1 of Schedule A and Box 2 of Schedule B (multiplied by the percentage of time technical employees spend maintaining customer equipment and performing service installation used to receive the basic service tier) divided by the total of Box 1 of Schedule A plus Box 2 of Schedule B. Line 8 Represents the percentage allocation of Line 7 (annual customer equipment and installation costs) to the reporting unit. The allocation percentage for all TCI Form 1205s is 1.00 since the amounts included in Schedules A, B and C are already allocated to the reporting unit level. Line 11 Represents the number of basic subscribers to the reporting unit as of September 30, 1993, December 31, 1993, or March 31, 1994. Such dates approximate the dates of the information in Schedules A and C. The subscribers shown should generally equal the basic subscribers included in the reporting unit's FCC 393, Line 103. Line 13 Represents the inflation adjustment factor. The factor of 1.00 was utilized since the information included in Schedules A and C (and Schedule B in certain cases) is for a period ending after September 30, 1993 (October 31, 1993 or December 31, 1993). 4 fcc 1205 v l 6/14/94 a FCC FORM 1215 A LA CARTE CHANNEL OFFERINGS Community Unit Idendficauon Code rate TX 0205- 7/5/9g Name of Cable Operator TLT C4J ;5,nt o4 rte, Ltc MallincgL,Addr.ee 1'O. 6b( (e(e07 City ncSllp(sate if5 �tr;�I k p.rson tei contact regarding this form: ae55.e- 3ctr-r;-()S Telephone: St 2 - 8S'1- SQ6° Zlp Cod. Fax number 512— ?C1— SSLB Local Francchhls1..,,nngg Authority Milling Addt§,. ` K> �f 1-4 r; T e. SOX of 217 City COpLib Flu Stat. Zip Code This forth Is being filed with respect to: (check one) Form 1200 Filing Foran 1210 Filing FCC FORM 1 l WART A. res 11 (Rnttl.eRan • D/Lr�US LinriSn T)( Haiel,1 /1006011 Thu Infartpat(on required far tits forte (Parts A. 8 and C) Is to be provided n of hath Aprfl 1, 1893 sad March 91, 1994. Each part apec(flca(ly refers b arta of than data*. Mato note, that the FCC aces the term "cheerier for whet we would refer to n "prograterniagn. Ary references to choanal are to be interpreted se programming service*. INSTRUCTIONS: 1. list the programming carried sn each tier of service offered on Apri 1,1993, Pieta a P.T. next to arty ssrvica carried parttime. 2. Use tha aacnynss provided edten Ealing channel lineups (set Attachment A. Use LOCACC, GOVTACC and EOUACC cad signs for PEG programing. ftdude broadcast channels using the appropriate cad ages. 3. Ma an asterisk next to any dismal carried that is alga shown on Attachment '8' (channels in which TCI hold s finandd Want). CHANNEL LINEUPS — •- — ... _ _ — – AS OF APRIL 1,1883 CHANNELS OR BASIC DER DRO 1367 "NN C. KIEL Snarl( RTNI-e. KRIS Rot NI. MEDT Loo., Au— KzTV KoF CUBO ©V C Loc_ 4c,r_ /'1EI,t- PT Enir ACC- pT CS PAM a—PT '-Owo tat Tci hu a financial hwnt I this ch. nnsi T CHARNELS ORDER 2 CS PAS MTV LtsH TNT ES PA1 11S E GALA Al K FnM'4. fic C,wj WGA IGC ktE CNnI LIF T1ER FCC FORM 1116 O'ART A, pip 11 (Fkst•dn. Mai) treeorer Nvo62 The information required for till form (Parte A. fl and Ole to be provided n of both April 1,1993 end March 31, 18g4, Each pert specifically rotary to ono of those dater!. Please note, nisi the FCC uses the term "channel" for whet we would refer to as "programmiaq". All reference( to choanal are to be iatsrpret.d as pre/ramming service INSTRUCTIONS: 1. Litt the programming carried as each tier of service offered an March 31, 1894. Piece a P.T. next to any:artca carried parttime. 2. Use the acrony;ns provided wben fisting chsnnel Ilnnaups (see Attachment A. Use LOCACC, OOVTACC and EOUACC cat signs for PEG programming. Include bnedcast channels using the appropriate all signs. 3. Pleas an asterisk next to any channel carried that Is also shown on Attachment '8' (thermals In which TCI holds a financial Interest). CHANNEL LINEUPS AS OF MARCH 31,1994 CHANNELS ON BASIC TIER CHANNELS ON TIER 2 CNti *( CSPAr ESPr! CivrV �s� � � R�ao� AIT__ ARTS ANO ENTERTAINMENT AMC__ AMERICAN MOYIE CLASSCS AMEITALK— AMERICA'S TALKING AY__ASSOCIATED PRESS ASPM— ARIZONA SPURTS NOGRAMMIN6 KETiWRK BET BUCK ENTERTAINMENT TELEY1IIIN MAZE XBLUER VISION BONJOUR_ BONJOUR BRAVOPERFORMING ARTS CAL -SPAN_ CALIFORNIA LEGISLATURE CARIBBEAN_ CARIBBEAN SATELU TE NE TWWF CARTOON_ CARTOON NETWORK Ca CHARACTER GENERATED CHAkIH CFIGOLAX11_ CHICAGOUND TY UASSAO_ CLASSIFIED AD CHANNEL CYTY__ COUNTRT MUSIC TY Ca BR__ CONSUMER NEWS ANO BUSINESS CHANNEL CABLE NEWS NETWORK CNN2_ CABLE NEWS NETWORK 2- HEACA COIL_ CORED CENTRAL CSPAN_ CONGRESSONAL NETWORK - HOUSE CF REPS. CSPAN L_ CONGRESSONAL NETWORK• SENATE CDURTTY_ THE LEGAL CHANNEL DISNEY— THE &SHE( CHANNEL Oft__ THE =COVERT CHANNEL EDUAC._ EDUCATIOTUL ACCESS CHANNEWTEE1 EI ENTERTAINMENT EMPIRE_ EMPIRE SPORTS NETWORK EN C___- ENCORE EPa ELECTRONIC PROGRAMMING GIGUE ESS7 ESPN EMIL_ ESPKZ EM'TN—. ETERNAL WORLD TELYISON NETWORK EAM FAMIIT CHAXFM. FAM -W__ EMIT CHANNEL FOODCHAIL THE FOOD CHAEOErt FOXIET_ FOX GROADCASTIN6 CCMPANT Ff FOX BROADCASTING CCMPANT UL*_.GAUVISON GEMSTY_ SPAN3QI LANGUAGE NETWORK c OYTACL_ GOYERNMENT ACU CHANNEIIPEGI HBa HOME SOX °mAE HealHOME SOX OFFICE 2 K60y_ HOME SOX OFRCE 3 H60.L__ HOME SOX crnczz - SPANISH HSE HOWE SPORTS ENTERTAINMENT HSI._-_ HOME SHOPPING NETWORK )11112—_ HOME S.iOPP!NG NETWORK 2 NTS HOME TEAM SPORTS GLTIL__ THE IKTL MAT1ONAL CHANNEL RA LUL_ THE ITALIAN CHANN- JADE_____THE JADE C -U i c. AIL SPURTS NETWORK KCaC_____ XINYER cs GAL____ DENVER IN M• CER(YER ❑ u UENVci KYWG.L__ OYER ip :1Fc TIME ATTACHMENT "A" LISTING OF CHANNELS AND THEIR ACRONYMS IOCACr_ LOf1l ACCESS CHANNEL (PEG) I. SU__ LSU T16ERYISIOK MAX MOW MAX -1__ CINEMAX-SPANISH MEU MING EXTENSOR UI(IYER9TT MONITORTHE MONITOR CHANNEL MRN MEADOWS RACING NETWORK Yir MIOWEST SPORTS CHANNEL MSa MADISON SQUARE GARDEN NETWORK YNB2 MADISON SQUARE GARDEN NETWORK 2 MTY MUSIC TELEVISION YTY -UT_ MUSIC TELEY190N • LATINO (ASA MASA KATY ASIAN LANGUAGE NETWORK NE NEWS NEW ENGLAND CABLE NEWS CHANNEL NEST KEW ENGLAND SPORTS NETWORK ECU NIPPON GOLDEN NETWORK NIN NICKELODEON K. 80'. CHANNEL UT NATIONAL JEWISH TY NOSTC _ _ NOSTALGIA CHANNEL PASS PRO -AM SPORTS STSTEM MEC_ PITTSBURGH LISLE NEWS CHANNf I• PLA PUTBOT CHANNEL PORTUGE SE_ THE PORTUGE6E CHANNEL 2. PPYPRE-R_ BUDGET BARKER PPVPRE- _ LOCAL PPY 3. PPYPREN_ AMSTAR PPY PREYITE_ PREYUE GUIDE CHANNEL A. PIISEA___. SPORTS CMANMEL PHILADELPHIA Pu -IW_ PRIME SPORTS NETWORK INTERMOUNTAIN NEST PSLL-MW_ PRIME SPORTS NETWORK -MIDWEST Pf•NW__ PRIME SPORTS NETWORK -NORTHWEST Pa -AM—_ PRIME SPORTS NETWORK -ROCKY MOUNTAIN Pf#-UM—_ PRIME SPORTS NETWORK -UPPER MIDWEST PTI PRIME TICKET NETWORK OW__ QUALM, YAWE & CONVENIENCE GYM OYC FASHION CHANNEL NEUPREY__ REQUEST PREVIEW CHANNEL SCA SPORTS CHANNEL AMERICA SC -OL__ SPORTS CHARM CHICAGO SC -CIN__ SPORTS CHANNEL CINO MOD SGFT SPORTS CHANNEL FLORIDA SC -NES_, SPORTS NEW FAGLER0 SUNY. SPORTS CHANNEL NEW TORK SCOWL_ SPORTS CHANNEL OHIO SLPAG_ SPORTS CHANNEL PAC1C S>ZA SCIENCE FICTION NETWORK fLO EA. SCOU 11I0 SHO MIMIC RTLINT_ THE SIERT NETWORK SAEAr SNEAK PREYUE SPORTSOUTH I(ETWOPK STAR] STARE PAT Scn\IC SU N SHIA E_ SJHS:UNE NETWORK TIN T'JIC TT E.IOAOUSTAS kETNORK TTS WRNEP. CA C MOVIES TIIR MUS_ -I-I UNDO 111f_ THE INSPIRATIONAL METWORX TTG—_ THE LEARNING CHANNEL TML THE MOVIE CHANNEL TNN_ THE NASHVILLE NETWORK TIT__ TURNER NETWORK MEYI9GN TRACKER SPORT TRACKER TTG-- THE TRAVEL CHANNEL TING__ THE WEATHER CHANNEL URL__ UNIYISION UPL_— UNITED PRESSINTERNATIONAL USA__ USA ME MORK OHIYIOE0 HITS 1 VISA_ VISION INTERFAITH SATEW TE NETWORK YJR__ YIOEO JUKEBOX NETWORK WCA_ CHICAGO WWOA._ NEW TORK WEBS__ AJUNTA OTHERS (PT.+r .y say «1.....L..Aoa ATTACHMENT B CHANNELS IN WHICH TCI HAS A FIT(ANCL4L INTEREST (If ria channels appear on FCC Form 1215 Part A pages 1 and/or 2 place an asterisk next to the appropriate acronym on tho$c parts) I. AMC 2. BET 3. CARTOON 4. CNN 5. COURTTV 6. DSC 7. EI 8. ENC 9. FAM 10. CNN2 11.HSNI 12. HSN2 13. QVC 14. QVCFC 15. TBS 16. TLC T T 17. TNT 18. VIN 19. HSE 20. HIS 21. KBE 22. PRISM 23. PSN -IW 24. PSN -MW 25. PSN -RM 26. PSN -NW 27. PSN -UM 28. SUNSHINE 29. SC -CH 30. SC -PAC 31. SS T FCC FORM 1216 (Part 8, papa 1) (First-time Filing ) INSTRUCTIONS; Headencut /op Coetu_s s� 1. Add any a la carte channels) canted that are not listed. Include each multiplexed version of e Bingle channel (for example, 1180, 11802 and H803). 2. List the number of subscribers and charge for each a la carte channel. To avoid double counting Indude only those subscribers taking the individual service Count subscribers as you would for the MSR (for example, If a bulk account has 250 units taking HBO add those 250 units to your resIdcnUal subscriber count). Exclude franchise fees from the rates. If a listed channel Is not carried enter N/A In the appropriate boxes. 3. Place an 'A' In the Equipment Column next to any channel that requires an addressable converter. CHANNELS OFFERED A LA CARTE ON APRIL 1 1993 Channels EQUIP' subscribers Cha e 1. HBO ..3 . l6 2. DISNEY s //.32 3. MAX 02P s 4. SHO //S $ 0.7/ 5. TMC N $ /J 4 6. ENCORE 35 $ 7. PLA NIR :NIA 8. STARZ others a_e coke 10. to2,E 11. 1180 12. SJ1ow1;wc 13.einr-m 14. DISNEY 15. Ej I to RE. Al A s AT//4 474 s .95 G. $/.o0 ,9/ $//.70 $ S $ /-2. 010 // 95 /6 37 4{3 Place an `A' In the Equipment Column next to an = / So an addressable converter. Y Channel requiring Indicate the rates for the following: Upgrade (truck roll-out) 140.00 Downgrade (truck roll-out)____t_ a Upgrade (no truck roll-out) Downgrade (no truck roll-out)_ FCC FORM 1218 (Part B, pig* 1) ( First-time Filing ) INSTRUCTIONS: Headendg ODS co.e.Pus L( vrsIC, 7Y 1. Add any a la carte channel(s) carried that are not listed. Include each multiplexed version of a single channel (for example, HBO, 11802 and 11803). 2. L Ist the number of subscriber and charge for each a la carte channel. To avoid double counting include only those aubscrlbero taking the Indlvlduaf service, Count subscriber as you would for the MER ((or example, 11 a bulk account has 250 units taking 1180 add those 250 units to your residential subscriber court!). Exdudd"franchise fens from the rates. If a listed channel is not carried enter WA in the appropriate boxes. 3. Place an 'A" in the Equipment Column next to any channel that requites an addressable converter. CHANNELS OFFERED A LA CARTE ON APRIL 1, 1993 Channels EQUIP.' Subscribers Cha e 1.HL30 943P S/07.A3 2. DISNEY /133 S//.49 3. MAX s/s s 73 <. SHO 3574 S 9.96 5. TMC NIA S Al A e. ENCORE A005 $ /.14 7. PLA N A s N/A 8. STARZ N �A S N A mart 2. S-)0rne_. -I3 $ 10. ENcoze /597-1 S .94 • 11. Sao R�7 s /a.7o 12. $ 13, $ 14. $ 15. Place an 'A' In the Equipment Column next to any channel requiring an addressable converter. Indicate the rates for the following: Upgrade (truck roll-out) 1ao, o o Downgrade (truck roll-out)_n7 A Upgrade (no truck roll-out) v/4 Downgrade (no truck roll-out) u A FCC FORM 1216 (Part B, page 2) ( First-time Filing ) INSTRUCTIONS: Headend* NAQSL ((Apul stir, s ;-x 1. Add any a la carte channel(s) cabled that are not pre-printed on this (orm.tisled. Include each muttlplexed version of a single channel (for example, 1180, 11802 and H5O3). 2. List the number of subscribers and charge for each a Ia carte channel. To avoid double counting Include only those subscribers taking the Individual service and not those who will be counted In Part C of this form (a Ia carte package subscribers) Count subscribers as you would for the MSR (for example, If a bulk -account has 250 units taking HBO add those 250 units to your residential subscriber count) Exclude franchise fees from the rates. If a listed channel is not carried enter WA In the appropriate boxes. 3. Place an A' h the Equipment Column next to any channel that requires an addressable Converter. CHANNELS OFFERED A LA CARTE ON MARCH 31 1394 Channels EQUIP.* Subscribers Cha e 1. F®O 3ZZ $ /Ill� 2. DISNEY /I.3 f a. MAX /3 $ //.e•z 4. $110 5. TMC /WA- $ Imo/ /4- 8. ENCORE 2. /5 $ /•7.1- 7. PLA 5`7.PLA 4/4 $ NIA - 8. STARZ er -7.5- Others: SOthers: Pb' $ /1.70 10. dei 8292 $ 12.23 11. Hem `I a $ i c,9S 12. NNS 1I j 12.-72 13. M/31 -k -s--) i8 $ 11.9 S 14. 7 frtt.-1 -1 15. I 'Place an 'A' In the Equipment Column next to any chs n I 0 an addressable converter. requlrtng Indicate the rates for the following: Upgrade (truck roll-out) .20. o0 Downgrade (truck roll-out)-7717— Upgrade (no truck roll-out) d/4- FCC FORM 1215 (Part 6, page 2) ( Firat4tme Filing ) INSTRUCTIONS: Headend* 00(22- Crytu CAren; 1. Add any a la carte channel(s) carded that are not pre-printed on this form.listed. Include each multiplexed version of a single channel (for example, H8O, t45O2 and 116O3). 2. List the number of subscribers and charge for each a la carte channel. To avoid double counting include only those subscribers taking the Individual service and not those who will be counted In Part C of this form (a la carte package subscribers). Count subscribers as you would for the MSR (for example, If a bulk account has 250 units taking H6O edd those 250 units to your residential subscriber count). Exclude franchise fees from the rates. If a listed channel b not carried enter WA In the appropriate boxes. 3. Place an 'A' h the Equipment Column noxi to any channel that requires an addressable converter. CHANNELS OFFERED A LA CARTE ON MARCH 31.19 Channels EQUIP' Subsaibers Charge 1. I-1130 $ 2. DISNEY 3 3. MAX 3 4. 8H0 $ 5. TMC $ 6. D4CORE 3 7 S /. '/3 7. PLA S 8. STARZ $ Others: 9.Ci Q,A-x /'-} $ 12.2a 1o.C'te."^^-7. 1132- $ /1.73 11.n'ceht, / $ / o gS 12. S ; \ c 13 3 //.2C. 13. S.I 1f,h-t 3169 s `. 2(0 14. 5\.-,.)f-.- - // $ n. 2-S- 15. Ctticn.c. 3E2 S .93 an 'A" In the Equipment Column next to any Channel requiring an addressable converter. Indicate the rates for the following: Upgrade (tuck roti -out) )3.0C) Upgrade (no truck roll-out) /1//i - Downgrade (truck roll-out) H in- Downgrade (no truck roll-out) N/�- .'... r vnm law ‘r ad u, r.141.1va1 ( Firauime filing ) INSTRUCTIONS 10 aU011U141P N e06,2 GnPcts Cur sr T 1. Add any a la carte channel(s) cabled that are not pro -printed on this form.listed. Include each multiplexed version of a *Ingle channel (for exampie, H80, H502 and H803). 2. List the number of subscribers and charge for each a la carte channel. To avoid double counting Include only those subscribers taking the Individual service and not those who win be counted in Part C of this form (a la carte package subscribers). Count subscribers as you would for the MSR (for example, If a bulk account has 250 units taking HBO add those 250 units to your residential aubsalber count). Exclude franchise fees from the rates, If a Usted channel Is not carried enter WA in the appropriate boxes. 3. Place an 'A" h the Equipment Column next to any channel that requires an addressable converter. CHANNELS OFFERED A LA CARTE ON MARCH 31.1594 Channels EQUIP' Subscribers Cturge 1. EEO 3 2 DISNEY 3 a. MAX s 4. SHO 3 S. TMC 3 5. ENCORE i2 $ 1.0 0 7. PUJ S S. STARZ $ Others. 9. 2.1/Vat Li -(o $ 1. So 1o.11C{ 24 lei 3 / tA) 11. CC t< 14, 42/ 3 .9 (0 12 1 3 13. S 14. 3 15. ' $ 'Place an Win the Equipment Column next to any channel requiring an addressable converter. Indicate the rates for the following: Upgrade (truck roil -out) ,1 Q. c9p Upgrade (no truck roll-out) _ Downgrade (truck roll-out) All A- Downgrade (no truck roll-out)— T INSTRUCTIONS: FCC FORM 1216 (PART C, page 1) Headend# 00k& ( Flnt-time Filing ) Coe -Pus Ckr,7x 1. Add any other a le carte packages net listed. Do not Include packages that contain any multiplexed versions of a single Channel ( for exampta, include • package of H80, 11802 and Disney but do not Include a package condcting of 1180, H002 and H803 2. Utt the number of subscribers and charge •sedated with each package. For example, add together all subscrfban taking any 2 Pay Package such as H00/3Ii0, H8O/TMC, H80/DIS etc, and enter the total subscrlben. Exclude franchise fees from the rat's. If a listed package k not offered anter 'WA' In the aprapriate boxes. 3. Place an 'M" in the Equipment Column next to any package that may require an addressable converter. This win occur when a package Is made up of various programming services and at least one of these services requires an addressable convener (for example. H • systems ala carte channel outing consists of HBO which la addrettable and SHO and TMC which art hard - trapped tha system would place en 'M' In the 2 Pay Equipment Column and en'A' In the 3 Pay Equipment Column). if an combinations of a 14 carte seMoes making up a Pay Package require an addressable convener enter an' A' In the Equipment Column. ' A LA CARTE PACKAGES OFFERED ON APRIL 1, 1993 Packages EQUIP.' Subscribers Charge 1. 2 Pay Package /i 3 /7. /0 2. 3Pay Package a Set/.P6 3. 4 Pay Package 16 $ -(7.07 4. 5 Pay Package A/hq $ A/lf) 5. 2 Pay wtth Encore $ 6. 3 Pay with Encore $ 7. 4 Pay with Encore s 8. 5 Pay with Encore $ 9, H80 with Encore $ 10. SHO with Encore $ 11, DIS with &score $ 12. TMC with Encore Adq $ 479. 13. MAX wflh Encore S Others: (Attach additlonal Est 11 necessaft 14. a Pa,, �,c,C,ktttl c..- Ho $ l7.9 s 15. 3 paz, oaekwc. sAA. 07 16. A po11 onckn4e, r $ 17. /7-26, S 14 - T S 19. $ 20. '' a ace an n e qu anent o umn nave rn nnu no, .,, ui reQulre an addressable convener. 'Placa an 'A' In the E q txttent Column next to any package requiring an addressable converter. Indicate which Individual services are offered in the Packages listed above (Not Combinations of Services): 480 SHo 1 c sn ne.,,ad, E"eE FCC FORM 1215 (PART C, continued) Headend#Ilo&a (First -dm" Filing ) n Lo 1-•6 £ krrsL , [OPTIONAL: USE ONLY OF THERE 13 NOT ENOUGH SPACE ON PART C PAGE 1.] ADDITIONAL A LA CARTE PACKAGES OFFERED ON APRiI. 1, 1993 Packs es EQUIP." Subscribers 1. 2Pa Packs .�ntJu�e., I+BD Cha e a4i/7.SS 2. 3 Pa Package ineauie.s HBO �S 3. 4 Pa Packa. e i aa.3/ he�udes i+8p /8 soig4D 4.5Pe Padca.e 5. 2 Pay and Encore 8. 3 Pay and Encore 7. 4 Pa and Encore 8. 5 Pa and Encore 9. HBO and Encore 10. SHO and Encore 11.016 and Encore 12. TMC and Encore 13. MAX and Encore Others: 14. 3 g •auta9G IneiuAcs 1-1-60 Z 0,2„.1..1 Po 734 15. -R4.60/, /Nay.- ine.)uc{r�$ t O s /77/ 10. d Da,-, •• • e, ihelm cs 14B0 17.3 .a oar%i 4c rnc) kits 14.8o 18. j .p. ., •atioge,'inclw_Le.a {} /7 $a3.�O 1g. 7/ � $ c: 11 3 20. f 21. ce ane quipmmR o umn next to en g 3 y 'Plate an 'A' In the Equipment Column next to an n age at may require an a•4ressa. a converter. Y package requlrin4 an addressable Converter. Indicate which • to carte Pelvices are available In the Packagaa listed above (Do not Ilat combinations of servkes): /-f40, Skow-{i,nc, -Di snti. �., �+•_w+a.(� ENCcce T FCC FORM 1215 (PART C, page 2) Headend# Poo 6 z - INSTRUCTIONS: (Fintllme Filing) Cmreus CL«isr; / T 1. Add any other ale carte packages not listed. Do not Include packages that contain only multiplexed version* of a singia dunned(for example, include a pac$ape of H80,11802 and Disney but do not Include a package consisting of H80, H802 and H803), 2. Ust the number of subscribers and charge associated with each peckaQe, For example, add together an subscribers to ng any 2 Pay Package such as HBQ'SHO, H130!TMC, HBO/DIS etc., and enter the total subscribers. Exclude franchise fees from the rates. If a listed package Is not offered enter 'N/A" In the appropriate boxes. 3. Place a '11" In the Equipment Column next to any package that may require an addrensabre converter. Th(a win package la made up of various programming sen4cea and at least one of these sentcea require. an addressabloccur e converter (for example, If a systems a h carte offerings consist of HBO which h addressable and SHO end TMC are ha m a the system would place an 14" in the 2 Pay Equipment Column and an' A' In the 3 Pay Equipment Column). If ad combinationsof a la carte aarvices making up • Pay Package require an addressable converter enter 'A" In the Equipment Cotu A LA CARTE PACKAGES OFFERED ON MARCH 31, 1994 Packa.es 1. 2 Pa Packs e inc)udas F180 2. 3Pa Packa e ihclt(.es K63 3. 4 Pa Packa.: T4C(KBc. M13 4. 6 Pa Pa.:.e 5. 2 Pa and Encore E. 3 P and Encore T. 4 P and Encore 8. 5 Pay and Encore 9. HB0 and Encore 10. 8140 and Encore 11. D13 and Encore 12. TMC and Enure 13. MAX and Encore 14.8TARZ and Encore Others Attach sddftlona' !1st H necessa 15. 2 2 f?ek4 huger I+s� P fackac,c nc/uhos Imo 17. 3 i) Pc -,c inclu(o 'j 1a.3Pte,, iNicluz, D 19. 4 Pam, Packe-cc outad.c ,te 16. 1 2U. �f p. �rltep EQUIP.' rot aubscdbers Cha !e 191 $ /7. SS 48 $ 22. a) /3 S 27. o7 S S i 3 S S i S i Igo • S 4.9C J r0 3 l8 cfh -7/ll $ /7-7 4g6, $ zz.sL 12. $ 2�. tip ace an n the qu pment Co umn next to any package that 61 c 7 33 'Place an 'A' In the Equipment Column next to any packa gge requiring rrtan addressnable :..anvertar. reqs ssabia vert cconverter. Indicate which ala carte services are available in the Packages listed above (Go not list combinations 01 services): 7 r FCC FORM 1215 (PART C, continued) Headend# No06 (Fint-tlme Filing) Z (OPTIONAL: USE ONLY IF THERE IS NOT ENOUGH SPACE ON PART C PAGE 2 ADDITIONAL A LA CARTE PACKAGES OFFERED ON MARCH 31, 1994 Packs es 1. 2 P Packa.a IZ 2.3Pa Pa :.e 3. 4 Pa Padca.. 3 4. 5 Pa Parka, e 5. 2 P and Encore 6. 3 Pa and Encore $ 7. 4 Pa and Encore 6. 5 Pa and Encore o. H80 and Encore 10. S}40 and Encore 11. DIS and Encore 12. TMC and Encore 13. MAX and Encore 14. STARZ and Encore i Others: 15. 16. . p. � , i /7 9S 17. • w �K�u S i /7 Z EQUIP.* Subscribers us ehr;Sl-; )2( Cha k¢7_ / S 16, a �I 2Kwc t srf+2z $ 12., 5- 19, P w &ern,. d STA -a -2- 20. A -a -Z20. S $ 2D qs 21. i 22. 23. 24, $ 25. ace an • In the gmpment o umn next to any Package that may 'Place an •A• In the Equipment Column nerd to any require s 4• rinse e t conve er. Package requiring an addressable converter. Indlcatn which a is carte services are available in the Packages He o 0 gee listed above (Do not list combinations of aervkes) he�nx 1�iCnpH SLC104- , r 1\ i r City of Corpus Christi, Texas Final Report for FCC Forms 1200, 1205, and 1215: Rate Regulation of TCI Cablevision of Texas, Inc. Prepared by: Adrian E. Herbst, Esquire Theresa M. Harris, Esquire Elizabeth B. Bryant, Esquire Mary Kay Robertson, Legal Assistant John L. Nelson, Client Financial Services Mgr. November 4, 1994 Fredrikson & Byron, P.A. Attorneys at Law 1100 International Centre 900 Second Avenue S. Minneapolis, MN 55402-3397 (612)347-7000 EXHIBIT a r pCopyright ® 1994 Fredrikson 8 Byron, P.A. Table of Contents Executive Summary Page 1 An Overview of Cable Rate Regulation Page 2 Our Review Process Page 4 Determination of Rates for the Basic Service Tier and Related Equipment Charges Page 5 Next Steps Page 6 Prepared by Fredrikson & Byron, P.A. - 11/4/94 Executive Summary This Report is issued to advise you of our conclusions regarding the review of TCI Cablevision of Texas' (TCI) filing of FCC Form 1200 and related Forms 1205 and 1215. These forms apply to regulation of the basic cable service tier and related equipment and installation charges. The City of Corpus Christi (City) received the forms on August 11, 1994. The City had 30 days from the receipt of the forms to issue a decision regarding the rates proposed by TCI. A 90 day extension was permitted if the City needed more time to make a decision. The City elected the 90 day extension and thus has until December 9, 1994 to report its determination regarding the rates to TCI. Our review of the forms indicates that TCI is charging the appropriate rate for the basic service tier. There is an issue regarding whether TCI is charging the appropriate rates for equipment and installation charges. This issue is discussed in the Next Steps section of this Report. We recommend that the City approve TCI's rates as they exist. Prepared by Fredrikson & Byron, P.A. - 11/4194 Page 1 An Overview of Cable Rate Regulation In 1992, Congress passed the Cable Television Consumer Protection and Competition Act, which authorizes local franchising authorities to regulate basic cable services and rates, and directed the FCC to adopt rules prescribing such rate regulation. The FCC issued its first set of rules regulating cable rates in April, 1993. Those rules went into effect on September 1, 1993 (the "1993 Rules"). As part of the 1993 Rules, the FCC developed benchmarks for rates based on a survey of rates in effect on September 30, 1992. The survey compared rates in communities with effective competition to rates in communities without effective competition. The results of the survey showed that on average, communities without effective competition had cable rates approximately 10% higher than the rates in communities with effective competition. Using this information, the FCC established benchmark rates. If actual rates for a particular cable operator exceeded the benchmark, the cable operator was required to reduce its rates to the benchmark, or to reduce its September 1992 rates by 10%, whichever resulted in the smaller reduction. This benchmark rate calculation was done on FCC Form 393. The benchmark rate is based on total cable company revenue. Once this rate is established, it must be broken down into two components: rates for cable programming services; and rates for equipment and installation charges. Cable companies may recover their actual costs, plus a reasonable profit, for leases of equipment and installations. This amount is calculated and removed from the total benchmark rate. The remaining portion is allocated to charges for cable programming services. On March 30, 1994, the FCC released amendments to the 1993 Rules and added some new rules, all of which became effective on May 15, 1994 (the "1994 Rules"). Upon further study, the FCC concluded that the disparity between competitive and noncompetitive rates was closer to 17%. To correct this disparity, the 1994 Rules require all cable operators in noncompetitive areas to reduce their September 30, 1992 rates for each regulated tier by 17%, rather than 10%. The formula then adjusts that result for inflation and other factors that may have changed since September, 1992. That final rate is known as the "full reduction rate." Those operators that already implemented a rate reduction in response to the 1993 Rules will only have to reduce their rates by whatever additional percentage is required to reach a 17% reduction. To determine the full reduction rate for a regulated tier under the new benchmark formula, a cable operator must fill out FCC Form 1200 and other related forms, which are new. Prepared by Fredrikson & Byron, P.A. -11/4/94 Page 2 If a cable operator believes that the benchmark rate calculations are unfair, it has another choice. A cable operator may justify its existing rates and rate increases through a "cost -of - service" analysis. A cost -of -service review is much more complicated and time-consuming than a benchmark review. In fact, if a franchising authority does not have the resources to evaluate a cost -of -service submission, the authority may file with the FCC a petition for special relief. If the petition is granted, the FCC will examine the cost -of -service submission itself. Another new area of regulation is "a la carte channels." A la carte channels are those that are offered on a pay -per -channel or pay-per-view basis, and are not subject to rate regulation. However, when cable operators offer such channels as part of a package, the package may take on the look of another cable programming tier that could be subject to rate regulation. To provide guidance on this subject, the 1994 Rules specify that a la carte packages that meet both of the following requirements will not be subject to rate regulation: (i) The channels or services must be offered separately outside of the package, and a subscriber must have a realistic opportunity to purchase each such channel or service separately, and (ii) the price for the package must not exceed the sum of the charges for the individual channels or services if purchased separately. Local franchising authorities may make an initial determination as to whether an a la carte package is subject to rate regulation, which determination may be appealed to the FCC. The 1994 Rules became effective May 15, 1994. If a franchising authority is already certified to regulate rates, it is not required to take any further action to invoke the new regulations. Instead, the burden is on the cable operator to begin the new compliance process. All regulated cable operators, except those governed by special transitional rules, were required to file Form 1200 with their local franchising authorities by June 14, 1994, unless they qualified for and requested a 60 -day deferral of this obligation until August 14, 1994. As was the case with Form 393 filings, after receiving Form 1200 the franchising authority has 30 days to evaluate the form. If the authority decides within the initial 30 days that it needs more time, it may invoke an extension of 90 days for benchmark reviews and 150 days for cost -of - service reviews. Once the franchising authority has either approved the rates requested by the cable operator or ordered a rate rollback, the resulting rate is the base for future rate changes. The cable operator may request rate changes only to reflect inflation or changes in certain other costs. Otherwise, cable operators not subject to effective competition cannot raise their rates. Requests for changes in rates must be submitted to the franchising authority on the proper forms, and are subject to the same scrutiny that attaches to initial rate filings. Prepared by Fredrikson & Byron, P.A. - 11/4/94 Page 3 Our Review Process In reviewing TCI's Form 1200 and related forms on behalf of the City, Fredrikson & Byron mathematically verifies the steps necessary to complete the worksheets and accompanying schedules of the forms. After verifying the calculations, we then verify that appropriate rate information is used to calculate the maximum initial permitted rate for the basic service tier. We also review whether all required additional information is provided. To perform the calculations described above, Fredrikson & Byron uses the raw data that TCI supplies in its filings. For purposes of this analysis, Fredrikson & Byron must assume that TCI's raw data is accurate. Fredrikson & Byron has not performed a review or audit of TCI's books and records to determine whether the information included in the Form 1200 and related forms and accompanying schedules is accurate. A review or audit would require employees of Fredrikson & Byron, or a qualified subcontractor, to inspect TCI's books and records and ensure that the entries on the forms are accurately recorded and assumptions properly calculated. Such a review is outside the scope of this engagement. Prepared by Fredrikson & Byron, P.A. - 1114/94 Page 4 Determination of Rates for the Basic Service Tier and Related Equipment Charges The following rates and related equipment charges are as calculated on the Form 1200 and related forms which were filed by TCI. A. Rates for the Basic Service Tier $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 September, 1992 Form 393 Form 1200 Current Rate September, 1992 Rate Form 393 Rate Form 1200 Rate Current Rate $17.80 $10.23 $8.41 $8.41 The Form 1200 rate reflects a reduction in the TCI rate to the benchmark rate as required by FCC regulations. The rate is then adjusted to take into account inflation increases, changes to the basic service tier programming and changes to the way equipment and installation costs are calculated. As indicated, TCPs current rate is equal to the required rate from Form 1200. B. Rates for Related Installation and Equipment Charges To determine the overall charges that a cable company may charge for the basic service tier, the company needs to calculate charges for installation and equipment costs related to the basic service tier. TCI has not calculated installation and equipment costs on the Form 1205. Resolution of this issue is discussed in the Next Steps section of this Report. C. A La Carte Packages Based on our review of the Form 1215 filing, TCI does not offer any a la carte packages that should be subject to rate regulation. Prepared by Fredrikson & Byron, P.A. -11/4/94 Page 5 Next Steps As discussed previously, TCI's equipment and installation costs are not calculated on the Form 1205. Their current costs are based on the maximum permitted charges from the Form 393 filing. Had they calculated equipment and installation costs on Form 1205, it appears that their hourly service charge may have been reduced by $.13, from $22.57 to $22.43. Also, charges for converter rentals may have been slightly reduced had these costs been computed on Form 1205. These changes are due to the differences in which interest and taxes are calculated on Fonn 393 and Form 1205. However, TCI did not recalculate equipment and installation rates based on a portion of Form 1205 instructions which read as follows: "If you have already unbundled equipment and installation charges at cost you must wait one year from the date on which you unbundled equipment and installation charges before changing these charges." This is an instruction to cable operators. It does not necessarily mean that franchising authorities cannot order cable operators to reduce charges to the maximum permitted charges. Fredrikson & Byron contacted the FCC for clarification. The FCC indicated that they have received numerous calls on this issue, and agreed that it was an issue that needs to be resolved. However, they have not taken any steps to resolve the issue. Given the relatively small dollar amount involved, and the uncertainty surrounding this issue, we recommend that at this time TCFs rates be approved as they currently exist. We have drafted a resolution that reflects this recommendation. If the City wants to preserve the ability to order refunds should the FCC ultimately decide that TCI should have adjusted its equipment and installation charges, we recommend the use of an accounting order. This order would require TCI to keep a record of all fees it collects on the disputed equipment and installation rates. These records need to contain sufficient information to permit the proper refund of overcharges should it be determined that TCI has been overcharging for its equipment and installations and the City wants to order a refund. Should the City determine that an accounting order is appropriate, we will prepare this order along with a modified resolution. In the future, TCI may be filing additional Forms 1205 and 1210 to adjust its rates based on changes in certain external costs and for increases due to inflation. These Forms will be filed at least annually, but may be filed quarterly. A review of these Forms will be less time- consuming than the review of the Form 1200. Fredrikson & Byron would be pleased to offer our assistance in the review of future 1205 and 1210 filings. Prepared by Fredrikson & Byron, P.A. - 11/4/94 Page 6 PUBLISHER'S AFFIDAVIT State of Texas, } CITY OF CORPUS CHRISTI County of Nueces } ss: Ad 49984 PO # Before me, the undersigned, a Notary Public, this day personally came Connie Haralson, who being first duly sworn, according to law, says that she is Business Office Administrative Assistant of the Corpus Christi Caller -Times, a daily newspaper published at Corpus Christi in said County and State, generally circulated in Aransas, Bee, Brooks, Cameron, Duval, Hidalgo, Jim Hogg, Jim Wells, Karnes, Kenedy, Kleberg, Live Oak, Nueces, Refugio, San Patrick), Victoria, and Webb Counties, and that the publication of NOTICE OF PASSAGE OF ORDINANCE NO. 022107 PUBLIC NOTICE IS GIVEN THAT BY ORDINANCE PASSED ON DECEMBER 13. 1994. THE which the annexed is a true copy, was published in the Corpus Christi Caller -Times on the 19TH day(s) of December. 1994. ONE (11 Time(s) $ 49.30 EDNA KOSTER Notary Public State of Texas My Comm. Exp. 11-30-96 Business Office Administrative Assistant Subscribed and sworn to before me this 5_ i day January. 1995. Notary Public, Nueces County, Texas EDNA KOSTER Print or Type Name of Notary Public My commission expires on 11/30/96. C_ 011,1Monday, December 19,1984 Corpus Christi Times NOTICE OF PASSA(�� OF ORDINANCE NOS.o3y107 • PUBLIC NOTICE IS GIVEN THAT BY ORDINANCE PASSED ON DECEMBER 13, 1994, THE CITY OF CORPUS CHRISTI HAS APPROVED RATES CHARGED BY TCI CABLEVISION OF TEXAS, INC. FOR BASIC CABLE SER- VICE AND ASSOCIATED EQUIPMENT. THE RATES AND CHARGES APPROVED ARE SPECIFIED IN THIS ORDI- NANCE. A COPY OF THIS DOCUMENT MAY BE OB- TAINED FROM THE CITY SECRETARY'S OFFICE, CITY HALL, 1201 LEOPARD STREET, CORPUS CHRISTI, TEXAS 78401. The ordinance was passed and approved by the City Council of the City of Corpus Christi on the 13th dry of December, 1994. 1s/ Amu.* Chaps City fasommy CIO of Corpus Christi