HomeMy WebLinkAbout022255 ORD - 06/20/1995ORDINANCE
REGARDING REGULATION OF RATES CHARGED FOR CABLE
TELEVISION EQUIPMENT AND INSTALLATION; APPROVING
CERTAIN RATES; AND PROVIDING FOR PUBLICATION OF NOTICE
OF THE CONTENTS OF THIS ORDINANCE (DISPOSITION ORDER) AS
REQUIRED UNDER SECTION 55-194 OF THE CODE OF ORDINANCES,
CITY OF CORPUS CHRISTI
WHEREAS, the City of Corpus Christi ("City") is the grantor of a cable television
franchise under Ordinance No. 16133, passed on March 25, 1981, and 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
Communications 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 a 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 rate regulation ordinance; and
WHEREAS, on or about February 28, 1995, the City received Grantee's completed FCC
Form 1205 which is attached and made a part of this ordinance as Exhibit A; and
WHEREAS, Fredrikson & Byron, P.A., the City's legal counsel, was asked to provide
assistance to the City in reviewing Grantee's FCC Form 1205; and
WHEREAS, pursuant to FCC regulations, on or about April 5, 1995, the City mailed and
telecopied to Grantee a letter notifying it that the time period for the City's review of FCC Form
1205 would be extended for an additional ninety (90) -day period; and
WHEREAS, on May 17, 1995, Fredrikson & Byron issued a revised final report
concerning Grantee's FCC Form 1205. A copy of this report is attached to and made a part of
this ordinance as Exhibit B; and
WHEREAS, on May 24, 1995, the Corpus Christi Cable Communications Commission
(the "Commission") conducted a meeting open to the public to ensure that all interested parties
MS0244.002.m1s@akl
May 26, 1995 (IOAIam)
-1- _
1)02 55
MICROFILMED
had ample opportunity to present information to the City and to express their views concerning
Grantee's FCC Form 1205; and
WHEREAS, at the May 24, 1995 meeting, the Commission considered the Fredrikson
& Byron revised final report and the recommended that the City Council pass an ordinance
requiring that TCI adjust rates which are the subject of the FCC Form 1205 so that such rates are
no greater than the maximum rates permitted under FCC rules; and
WHEREAS, based upon the May 24, 1995 Commission meeting and the revised final
report from Fredrikson & Byron, the City Council makes the conclusions and orders listed below.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. The maximum rate permitted for the hourly service charge (exclusive of
any franchise fee) shall be $17.68.
SECTION 2. Grantee's current installation charges (including the installation hourly
rate), equipment lease charges, and the charge for changing tiers are listed on page 4 of Exhibit
B in the column "Current TCI Rates". The maximum rates permitted under FCC rules for these
same services or items are listed on page 4 of Exhibit B in the column "Current 1205 Rates".
Based upon a comparison of the two columns, the City concludes that some of the current TCI
rates exceed the maximum rates permitted while other current TCI rates are below the maximum
amounts permitted.
SECTION 3. The City 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 formulas
for calculating equipment and installation rates, resulting in lower reasonable rates for Corpus
Christi subscribers, then the City will have an obligation to area subscribers to reconsider the
pending analysis consistent with the changes the FCC may make in its regulations.
SECTION 4. All exhibits referenced above are made a part of this ordinance as if set
forth herein.
SECTION 5. Based on the foregoing findings and conclusions, the City Council hereby
enters the following orders:
a. Pursuant to FCC regulations, from the date of final passage of this ordinance and
until further order of the City Council, Grantee's hourly service charge for
equipment and installation rates shall not exceed $17.68.
b. Pursuant to FCC regulations, from the date of final passage of this ordinance and
until further order of the City Council, Grantee's rates or charges for the following
services or items shall not exceed the maximum rates permitted under FCC rules
as listed below:
MS0244 002 mla@ak)
May 26, 1995 (10:41am)
'R T
-2-
Charges for Cable Service Installations
A. Hourly Rate $17.68
B. Average Installation Charge
1. Installation of Unwired Homes $26.53
2. Installation of Prewired Homes $13.26
3. Additional Connections (Initial Installation) $ 8.84
4. Additional Connections (Separate Install) $13.26
ii. Monthly Charge for Lease of Remote Controls $ 0.11
iii. Monthly Charge for Lease of Converter Boxes
A. Addressable Converter $ 2.94
B. Nonaddressable Converter $ 0.90
iv. Charge for Changing Tiers
$ 8.84
To the extent TCI's current rates for these services or items exceed maximum rates
permitted under FCC rules, then TCI shall adjust such rates so that they do not
exceed the applicable maximum rate.
c. Rates imposed consistent with the requirements of paragraphs (a) and (b) this
section 5 are deemed reasonable, and are hereby approved, because such rates will
not exceed the maximum rates permitted under FCC rules.
SECTION 6. The City Council reserves the right to reconsider this ordinance if
subsequent amendments or modifications to FCC rules and regulations require or permit such
reconsideration.
SECTION 7. This ordinance shall constitute a disposition order under Section 55-194 of
the Code of Ordinances, City of Corpus Christi (the "Disposition Order") concerning this FCC
Form 1205 submission.
SECTION 8. Notice of the contents of this ordinance shall be published as required
under Section 55-194 of the Code of Ordinances, City of Corpus Christi.
MS0244 002 mis(bak)
May 26, 1995 (10:41am)
-3-
Fxhitz.i
TCI CENTRAL, INC.
February 24, 1995
City of Corpus Christi
P.O. Box 9277
Corpus Christi, Texas 78469-9277
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tomorrow.
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On behalf of your local TCI -affiliated cable operator, please find enclosed an FCC Form
1205. As you may already know, the attached filing is required annually to update
equipment and installation charges. The data utilized in completing the Form 120A s
Obtainedfrgu} TCI's books and record; for the year ended December 31, 1994.
We have attempted to strictly comply with all applicable FCC requirements and feel that
the attached submission represents a good faith filing. However, given the considerable
uncertainty surrounding the regulatory process, we hereby reserve the right to make
future corrections to this filing. The operator further requests this right, to the extent any
computational errors were made.
If you have any questions or concems about this filing, please bring them to the attention
of your local TCI -affiliated cable manager. He or she will do their best to answer your
questions or get you the answer in a timely manner. Considering the complexity of the
1992 Cable Act we hope you will work with us as we work to fully comply with the law.
Very truly yours,
TCI CENTRAL, INC.
On Behalf Of
TCI CABLEVISION OF TEXAS, INC.
Nancy Mu y
Division Rate Specialist
100 Sown Syracuse 3:ree1
1100
Denver. Co)or e2
3031267-4200
=AX (303) 267 4))))));9
Cable Operator: TCI Cablevision of Texas, Inc.
Headend Name: Corpus Christi, TX
Headend Number: H0062A
FCC FORM 1205
DETERMINING REGULATED EQUIPMENT AND INSTALLATION COSTS
1994 ANNUAL FILING
The cost data included in this filing has been derived at the system (general ledger) level and is
no longer adjusted to the franchise level (as was done for the 393 process and the 1200
process) since cable service rates are not being developed in conjunction with this filing. Please
refer to the instructions to FCC Form 1205, page 4. The following regulated franchise areas,
served off the headend shown above, are included in this filing.
COMMUNITY NAME
Corpus Christi, TX
1205 CUID Index
COMMUNITY ID#
TX0205
FRANCHISE ID #
F0018
Wel cawermea Cornea
WdaRrm O.C. 20554
FORM 1205
DETERMINING REGULATED EQUIPMENT AND INSTALLATION COSTS
"EQUIPMENT FORM"
Ha061A
Coarae.a Una Iaenafia ICUIDI of able wean
TX0105
Oa of Farm SWeee
112135
Nose of Cable Opnw
TCT CABLEVISION OF TEXAS INC.
MTB Address of Cabs Opened
412115 PADRE ISLAND DR
Cbl'
CORPUS CHRISTI
Sat
TX
ZIP Cade
16411.4411
Name ed Tide sows. omplNR-ler Irma:
MOORE. DENNIS MGR
Telepbp•
Fan Number
(3121131-5341
Reba
25121197-5051
Nae ma Iad FratA®1 Aalaay
MARY RHODES MAYOR
Malin Arlin of lad Romanies AYaay
CITY OF CORPUS CHRISTI P.O. BOX 13f
City
CORPUS CHRISTI
Sun
TX
ZIP Oa
114441271
1. Tks fan is MTP Fit Wake a "n^ k la appropruie keel
❑k agsse roll FCC Fes IMO. FCC Farm IIIL or FCC Re 1215.
Also le sssplesl FCC Farm 1204 FCC Fos 1210. or FCC Fail 1223 tots flea calls kis.
OR
Ella eats to MBB FCC ails spas as mal E`Fafls form
Fast Ea Ys al&ys Yl WOS foto 0111184 (a ,1
Nat 111kskda M r Y as all Os storm Isjal6.t Nlslsr FCC Form 393 ala pier ON OW Fa we is at
2. Fisc W Ye Saab y eked year Maks for the /el year nflssa k sera In:
Net TW will sire Y ed Sar natal id ye for MSS yea a IBI this form.
Saba the urpssa lam at yaer abl SINS Maier a ^s^ In la Verna -
X
Cowan
santrms aerprm.e
hobeedip
Silk neastly
Dler(Pkeoalaat Mk.l
MI
1213184
Tad 4.0 Wit Vol 2.0
reMa'y>1
Appmvod by. OMB 10600392
Opium 4)30191
FCC Fee I
Mayi
F.4cnl Commonrooms Commas
waYglp4
D.C. 10554
SCHEDULE A: CAPITAL COSTS OF SERVICE INSTALLATION AND MAINTENANCE OF Es UIPMENT AND PLANT
•
1
•u - tmMPlal
Ginn Book Value
Other I.
3 'r below
Other L
5 T selew5
51 046303 58
561133136
5375(18 81
587 143 08
558 555.12
Net Book Value : C413
Cakvbpao Grosso, Nan
Fdad Inmost Tn Re
Na Toed Intoe Tax l4t G 102 _ GI .a G2
Into* Ddnmltl v Foss
Moan Trigs Gia I.04d C d »G1
Aduaae for Nat •
Br Masa a twos Moms
GRAND TOTAL Ism d W K aria$
Epps*: Oar
SpdQ- Odin1
SCHEDULE 3: ANNUAL DFE ATNG IMNSLS FOR SERVICE INSTALLATION AND MAINTENANCE 0? SOM MER
Salts
t Dade
Salim
WINS
Odor TACE
A
Aad Op. Emcees b 5n. I. — Maio of Fquip.
Odm1.
{5pi& Mleml
arL
Month' Nal
51359.199.13
5111.61849
MOO
5160.31191
5310.03.51
5139.123.10
B
GRAND TOTAL lad IPPA atrial
ML
Spiry: Oda 1. Coma Ltho SCor wa Maintops=
SpmA Other I. VdidtCder Eaoaea
Eaa14.0 WY. Version 2.0
Apposed bv: OMB 30600591
Eapa: 400.91
FCC Tam 12
Ma 19
federal COmmziao.n Cartiiz
WDmlm. DC. 3056
H0062A.9a
Append N: 0110 30600592
apnea: 43093
SCHEDULE C: CAPITAL COSTS OF LEASED CUSTOMER EQUIPMENT
A
Blueprint'
Remote 1
Remote 2
Remise 3
Cozener I
Convener 2
Convener 3
(net Igwp,
B
Tout MainniaceScrvicc Hun 1 Mtn Winton
9136
0
0
025026
910612
e
C
Total it Sams Unite m Sc
14771
0
0
10108.
11159.
0
0
D
Gnus Book Value
5133.161.51
51.311.06.12
53003.234 03
E
Ammwlwtd Demon
111531266
51.115.99963
51.636.10062
F
Defea6 Tam
51.159.61
'36.31179
525.630.20
G
Not Book Value ID{E•F31
556.41929
5000
mm
52A1T336
5134100311
SOTO
N
Groned-DP Rase of ReminlFn Scheel. A. Line HI
0.3319
1
Rmm an lawmlangmm6Lp for Taxa 10 n HI
5334.1312
50.0
500E
135$120131
51163213339'
5000
'SDiR3
1
Cont Pmvsin for Owaznaron
59.348 07
55532561
5191.011 11
K
Anaal Caput Cos 11.11
5113123e2
5000
5000.
S94.4436931
5312133.8439
500)
SR39?
L
GRAND TOTAL Ism el Lia K stria)
f139366A4212
NA
SCHEDULE D: AVERAGE HOURS PER INSTALIATION
A. Awns Houn Her Wert Home SSW, )Beal an Owlaa_isl
IS
B. Asap Hem RatPw-Wiwi Ham NeOes lml s awlas0s1
0.38
C. Awrnaa Hams Pa A6049y C9aa04ga lswOls al Tana 0(ISS lndlm lama asPlimlisl
03
D Maas Hann Pe AlYimlCames Yrullalce Roman Smaaw laawllea lml an enalraration1
0.33
E We laaaa0aq IOe 110 Twat
Ir 1. (St PADS NOD
Awe Han me Nelle n Dads a cmWial
0.75
lm 2. l5s* v l Vie WPemealn Hs.AtlamkS
Aveam Sanwa NmlYOS IaW s .... . 1
05
_:
Re 3. ISsak)
Avant Henn per tell= laid s ewfrinal
603 Ems 4.0 Win. Van 2.0
FCCFoam In
may 19
cduY Co.annuosem Cas,oa
WaWbgwn.00. 20334
H0062A.94
WORKSHEET FOR CALCULATING PERMITTED EQUIPMENT AND INSTALLATION CHARGES
STEP A. Hak. Service Cb rue
I Total Cams! Coca of IndlMu ed Maaenenen ISdedole A. Boa 11
5299.405.1332
2.
Total Annual Opemule Expenses foe bistallabaso M Mamren¢ (Schedule B. Boa 21
52.647,690.34
3
Total Opal Cam ak Oamat Exposes for Installs/ma m Manes nc I Inc I . Line 21.
52.947.095 4752
4
Cusaner&woman and Installation Permlcm WWII an explaupal.
01941
..
Annual Cuponser Equlpanm Manennoe alk Installation Com. Eacludlm Cara of IwS Equipment IncI
3 a 4m 41
5512.0323651
6
Taal Lagar fours for Maimeae and labiMaon of Customer Equmaen and Serums rah molostatax0
3234696
7
Hourly Sema Chasse MSC) aim Mao 6l
5176149
METHOD OF BILLING FOR INSTALLATIONS117lce.a " in De apprpwe bel
Insallanoas belled br the San bid at Y HSC calculated a Lane 3.
X Installation PIIS as • matched cisme.
STEP B. Installation
5. Uniform HSC far all oo-oms IFs -- A. ball
-*
al HSC Wel
rt.
$26.5271
Mirra._
til . . Line
51T1349
W'
bl.A- Hems'- Pnaiaf Hos lamalIaeb.*Saasda D. Line 61
-0.73
,
SMUT
c. Ad6noal Cameclma ..
el. .
!S!!�q!'t►a
_ �-
""max
c3. a. AmarCame ro-admaTama of bold S011✓.ea lel as
Mr uI
•-e ,L�.. ^"
MRSN. T a. 5... --e - a. 3_3_SF:.
'Sqa.
L]�
IIM6 .,1 /. l ti,. - l
aalRll�®
be ti�r
c. Odv Melbas Aa D Lax -.
_ _ ..__
el. HSC I . _
laerc1.. a.1 -1--a11K - ..anal
-I
44 HSC Lae 7
Irt.
e3. A ', Ham M0Eioa Mie 2 SASS D. LS E Ho 21
et u (sellae diem a 1
--or-
et.A Homy YOYeafRom l - - D.Lam E.1 31
taq
Saabs.
49.. - ofYe3 aT sat
PRP 4 Es140 Wm. Venue 20
lr T
Append by: OMB 3060-0392
Caen: 4/30b97
FCC Form 12t
May 19
;Send Cmunwalm Cornmassoa D.C. 30554
H0pu.91
STEP C. Carp for bad Raman
(Calculate separately for each tient ntln different typal
a
Remote 1
b
Remote 2
Remote
10 Total MairticnancerService Houn ICenmtlme column from Schedule C. Line BI
91.36
0
0
11. HSC (Line 11
5116649
5126049
5176649
12. Taal MnamaMIs/Service Cop Ileac 10 a Ws 111
51.6196919
00,60
5000
13 Anel Caput Cow IConrponda mama fm Schedule C. Line KI
513,112.1062
50.00
14 Tout Coe of Renese !Line 12•ine 131
SI$,T916001
pip
51160
5000
15. Number of Unita'n Semen IConeepnnd_r column from Schduk C. Line CI
14771.
0.
0
16. Und Com 'Line 14/Lane 151
51.2727
5000
5000
12. Ra par MOW (Line 16912)1
541061
5060'
. 5090
SIn O. Cline aIMO. Commas Bre
(nicotine rssearlvler cock aniFaintly tlillerat reel
Converter
b
Convener
fastener
15 Too( MaSttrmlSenir Henn ICaatneondat0olenn Ran Schedule C. Lire B1
523.001
910112
19 HSC[Line 31
517119
1174149...
0
512.6649
20. Tao Medmemeaymr Cos Wine II a 191
5643925331.
5101071136-
50.00
21. Ansel Capin Cor!Corapoaap mimeo fm Schedule C. Lm K1
591363493/
177233:6439
22. Tort Coat of Canna lLoe 20+ Lb 211
5109601:2262
S391,4IMSM
5000
66013-
p23.
23.Number of Units Smit ICemmamlg rinn 6pn Schedule C. Line Cl
lOf01
11139.
24. USCG Him 22i4m 131
510.2173
533.2.64
0
0010
23. Bs pa Moth 112r 2441211
101900:
529324
$000.
STEP Lanes fee Otho 430 Eaarrt
26 Taal M Imenama emr Hers ICmewrdar warn 601n Schedule C, lir BI
27. HSC [Line 71
511119
25. Taal MabwmIrvim Ca (line 261t lien 271
5000
29. Ansel CWS Caw IC9171:400edl6 min Bur SceWk C. Lim KI
MAP
30. Total C4 of Eaalpa.M I lin* 2I+t. 791
31. Number of Oils a Sena ICpnr eidum ails 6m Sabdde C. line CI
0
32 UniCa Ilan 30/Lim 311
33. Roma per Math (Lir 3211211
3E00
%NMI) OP BIWNG 902 CNANG010 SERVICE71161 OR EQUIPMENT (par ad ''a" e M ap9npri_-r1
_ an Ilae Oral /Firs the rem1Jr0a p Ir 30
_ an Wilma Healy Sawa flop
X r se Mamie Ora (Ener dr Aare lora fee Clumping Savin Tenn 4 lir 366.1
IiNco0 We, vena 2.0
1
Approved hr: 0440 3060-0392
Emma: 4/3092
FCC Far 12
Me' 19
-
366 ESC L_
Mr nirlie
j9 i
+s
'Je
al05
�....�.,, -1--t d,. a9.
_e' -....11..j)
E.
rap. a.bi
.:174151.
IiNco0 We, vena 2.0
1
Approved hr: 0440 3060-0392
Emma: 4/3092
FCC Far 12
Me' 19
FMend Cmnumalwm Commute.
Append In OMB 5060-0592
Waoalllun. D.C. 20554 Expm: 1/50191
WORKSHEET FOR CALCULATING TOTAL EQUIPMENT AND INSTALLATION COSTS
I
Tom Coe Cons of InoRllmrl sal Minnesota ISmdule A. Box 11
5299.405.1352
2
Taal Annual Operetta Extensa for Imllan a6 Mamma= 'Scheele B. Box 21
52.611.69034
3
Tom Annum Calm Cm of Iuemrl sal Mmmaa lime l r Lia 21
52.911.095.4152
4
Cromer £quipnal and Inseam. Poamlwejolmm. mensal.
5
Annual Customer Eqummn Mamma ad mmllmsn Cm. EdSm9 Cm of Leased Egpaas
5000
ILne 5x Le 41
6
Tam Came Coos of Leased Customs Fgukan !Sebsuk C. Box 51
141.161.4432
7
Arrml Cmplsr FOassa all SeSOen Coma Hes 5• lam 61
5p1164.6152
1.
Peeress* Mean s Frays Area Ia sm.eseal
9
Allopmd Annual ESM Senor Com Lune lx Line 11
....: .
10.
MaNM Eaimemaxe lameness Com l<w 9111111
11.
Number of Basic Sobeaibas m Fences
Ea6mmS/1M Meehan Coma hbsnber lime 101 Lia 111
FDIVAI
11.
13.
Mawr
Infmon Adimnme Foam Ma Isnnml
14
Adjusted Meese Equipment and ldYlmms Com per Subvam ILme 12 x Lis 131
/OIVIO!
Exd 10 Win, Verson 2.0
T
FCC Fps 120
May 199
Faisal Cammsuoloa Comma
Waeapm D C. 20554
H00634..94
SUMMARY SCHEDULE
Cunene E9sipaena and Inaeaaaa Rae Permitted 'Anal
I. Clams for Cabk Scrna Inw.laakna
a. Hourly Rae (Step A. lint 11 MI Na
`/�/ii
�/ 2
b Averse Imollaam tea: c
1 Inrlma of Unwired Nana (Sita B. lire 9a31
52633
533.56
2. 11111111111114144 hamed Hal= ISM) S.Lsrc 9231
11116
516.93
3 leallatia of AdditwlCcantema at Tim of Initial lnrlaaoa (Step B. Lire 9c31
AM
1556
4 InallaeeaofAdBamal Craoam Rt9usma Sepaac Install (Saw B. Line 9431
11326
51693
5. Ode Inalm latah( (54 B. lira 943.9c6. *91
a. Ramo Otte
51326
316.93
b. Uwra6✓Do..aa6 Non-Addnatla
5L14
111.29
c.
AB0
2. Melee Charm fa les of ham COMM ISN0 C. Lia 12. coltm as I
Rape CNMM Type I:
50.11
50.19
Res Cama Dm 1:
f0,00*
Roam Ca0el Ts 3:
J00B
S. Mamba CTns m lam of Caamaa Boats ISM D. Lira 15. wham act
Corns: Ba Type I:
50.10
51.10
Coma Box Taw 2:
5234
5253
Caanla Ba Type 3:
SINZO
4. Wal/Clem b lrsof00n FesipaaliISb E. Line331
011e Eakprs (Spmfyl
50.00
5. Chas for Clams Tan(Mam11S4 F. Lee 34.35 or 3641
MFA.
511.29
Welt =FASO POLICY OIANGCS
Yea 59mamnar sin ding r 0® by Naas as cc sa Ba agmpaa ba
18H as yaaeW Da Ymamstmds Sam aWapsa vvd4m b anal aallm3
YES
NO
2. Hem am ___Mordb Mamma sari an absaba 15614pp2
YES
X NO
3. Ham have Sled 1n lea Wm lemma mesad sty palia.wamass; pas albaaa Nal cm at eats m Lbs ma
Maid a r _TalaR4ms r arm clasp?
XX YES(Yawnaei• h5 ppmeal
NO
CQUIFICATION STATGffiR
WILLFUL FALSE STATESE NTS MADE ON THIS FORM ARE PUNISHABLE BY FINEIMPRISONMENT
(US. CODETIIfz IS. SECTION 10012 ANDIR FOREEHURE (US. CODE T51186T,3�.
1 aaON 0ar
r sora Nate. 0a s at MS 6a mead masa mMa WEskdit smis is podC
Amaral by: 0948 3060059E
Exam: 4/3091
Naaafla CabMOpar
TQ CARLSVISIONOP TOGA INC
5(^asa //
%a
`/�/ii
�/ 2
Da
021215
Tea
�, Ca MURPHY
LIAR SMICL41KT
PM2
E911.0 Win. Vaasa 2.0
FCC Fat I
May1
Headend Name: CORPUS CHRISTI 1 AML 1
Headend Number: H0062A
FCC FORM 1205
SCHEDULE D: AVERAGE HOURS PER INSTALLATION
CONTINUED
Item 4. (Specify) Upgrade/Downgrade Addressable
Average Hours per Installation (attach an explanation)
N/A
Item 5. (Specify) Connect VCR Initial
Average Hours per Installation (attach an explanation)
0.25
Item b. (Specify) Connect VCR Separate -
Avenge Hours per Installation (attach an explanation)
0.50
Item 7. (Specify)
Average Hours per Installation (attach an explanation)
Item 8. (Specify)
Avenge Hours per Installation (attach an explanation)
Item9. (Specify)
Avenge Hours per Installation (attach an explanation)
Item 10. (Specify)
Avenge Hours per Installation (attach an explanation)
Average hours per installation for each diferat type of installation were obtained from aysta u persoead. Although TCI provided a corporate estimate for
avenge homes per Intalbtlon, the actual estimate was made at the sntem levet and, la some eaa, deviated from the corporate amain band upon
appropriate local Baas The average time provided by system mamma b based oo aperients in performing such activities as wdl as information
gathered and utilised in seheading teehubbu and Installers.
Page 8 1205 Atachmens
Headend Name: CORPUS CHRISTI] AML 1
Headend Number: H0062A
FCC FORM 1205
STEP B. INSTALLATION CHARGE
CONTINUED
e10. HSC Line 71
N/A
A
ell Average Hours per Installation of Item 4 [Schedule ID, Line E. Item 41
N/A
e 12. Charge per Installation of Item 4 [el0 x ell]
52.0000
e13. HSC Line 7
17.6849
e14. Average Hours per Installation of Item 5 [Schedule D, Line E, Item 51 _
0.25
e 15. Charge per Installation of Item 5 [ell x e14)
S&4212'
e16. HSC Line 7
17.6849
e17. Average Hours per Installation of Item 6 [Schedule D, Line E, Item 6]
0.50
c18. Charge per Installation of Item 6 [e 16 x el 7]
;
$&$424:
e19. HSC Line 7
17.6849
e20. Average Hours pa Installation of Item 7 [Schedule D, Line E. Item 7]
000
e21. Charge per Installation of Item 7 [e19 x e20]
e22. HSC Line 7
17.6849
.,,.,
e23. Average Hours per Installation of Item 8 [Schedule D. Line E, Item 8]
0.00
R.
04. Charge per Installation of Item 8 (e22 x e23]
50:0000
e25. HSC Line
'17.6849
e26. Avenge Hours per Installation of Item 9 [Schedule D. Line E, Item 9]
_ 0.00
"
_
Chime Installation Ilan 9
07. per of (e25 x e261
09. Average Houtz per Installation of Item 10 [Schedule D, Line E, Item 10]
:
' ,___
__
e30.Charge per Installation of Item 10[e28 x 09]
Page 9 1205 Attachments
Headend Name: CORPUS CHRISTI AML 1
Headend Number: H0062A
FCC FORM 1205
SUMMARY SCHEDULE
1. b. 5. CONTINUED
Current Equipment and Installation Rates
Permitted
Actual
d. Upgrade/Downgrade Addressable
2.00
2.00
e. Connect VCR Initial
442
5.77
E Connect VCR Separate
SU
11.53
h.
...
i.
j.
Page 10 1205 Attachments
T
FCC FORM 1205
SCHEDULE C
ATTACHMENT
SCHEDULE C. LINE B - REMOTE 1
Headend Name: CORPUS CHRISTI 1 AML 1
Headend Number: H0062A
LINE 1.
Total labor hours for maintenance / service of remotes and conveners
91.3600 hrs
1,827.2000 hrs.
LINE 2.
Percentage of Line 3 allocated to Remotes
LME 9.
0.0500
LINE 3.
Total maintenance / service hours allocated to Remotes
Total maintenance / service hours allocated to Remote 2 (Line 7 x Line 9)
91.3600
LINE 4.
Schedule C, Line C - total wits in service -Remote 1
0.0000
14,771
LME 5.
Number of units -Remote 1 / Total remote wits (Line 4 / (Line 4 + Line 8 + Line 12)1
1.0000
LINE 6.
Total nnimenance / service Isms allocated to Remote 1 (Line 3 x Line 5)
•-
91.3600 hrs.
SCHEDULE C. LINE B - REMOTE 2
LME 7.
Total maintenance / service hours allocated to Remotes (Line 3)
91.3600 hrs
LINE 8.
Schedule C, Line C - total units in service -Remote 2
0
LME 9.
Number of units -Remote 2 / Total remote units [Line 8 / (Line 4 + Line 8 + Line 12)1
0.0000
LINE 10.
Total maintenance / service hours allocated to Remote 2 (Line 7 x Line 9)
0.0000 hrs.
SCHEDULE C, LINE B. REMOTE 3
LINE 11.
Total maintenance / service hours allocated to Renata (Line 3)
91.3600
hrs.
LINE 12.
Schedule C, Line C - total units in service -Remote 3
0
LB4E17.
LINE 13.
Number ofunits-Retnote3/Total rotate units [Line 12 /(Line4 + Line 8 + Line 12)1
0.0000
Nrmber oftminfmvener 1 / Total eaorac units (Line 17 /(Line 17 + Line 21+ Line 25)1
LINE 14.
Total maintenance / service hours allocated to Remote 3 (Line 11 x Line 13)
0.0000
hrs.
SCHEDULE C, LINE B- CONVERTER 1
UNE 15.
Line 1 above
1,827.2000 as
LME 16.
LINE 21.
1,733.8400 hes
Total labor haus allocated to conveners (Line 1 - Line 3)
LB4E17.
Schedule C, LineC- total mita in service -Converter 1
10,108
UNE It
Nrmber oftminfmvener 1 / Total eaorac units (Line 17 /(Line 17 + Line 21+ Line 25)1
0.4753
LME 19.
Tot / hers Convener 1(Line 16 Line 18)
825.0280 hrs
nsinuoaice service allocated to x
SCHEDULE C, LINE B- CONVERTER 2
LINE 20.
Tad labor hour allocated to canvases, (Line 16)
1,735.8400 his
Tad War hours allocated to convateu (Line 16)
LINE 21.
Schedule C, Line C - ailed units in semcaCo vener 2
11,159
LINE 22.
Number oftmits-Convener 2/Tot COMMIX =its (Line 21 /(Line 17 + Line21 + Line 25)1
03247
UNE 23.
00000
9108120 hr
Tot minicamera / savice house allocated to Convena2 ((inc 20 x Lina 22)
SCHEDULE C. LINE B -CONVERTER 3
UNE 24.
Tad labor hour allocated to canvases, (Line 16)
1,735.8400 hr
LINE 25.
Schedule C, Line C - total units in savice-Convener 3
0
LINE 26.
Numbs ofudu-Converter3/ Total convener units (Line 25 / (Line 17 + Line 21 + line 25))
00000
LINE 27.
A 0.0000 hr
Total maintenance 1 service hours Bloated to Converter 3 (Line 24 x Line 26)
Total labor ban for malntenaacdrervke of remota and converters were calculated by multiplying use number of trouble calls related 10 remora and converter
dating the year by the estimated avenge time it takes to complete the repair.
Page 11 1205 Attachments
T
Headend Name: CORPUS CHRISTI 1 AML 1
Headend Number 110062A
FCC FORM 1205
WORKSHEET FOR CALCULATING PERMITTED EQUIPMENT AND INSTALLATION CHARLES
ATTACHMENT
STEP A. LINE 4
LINE 1.
Box 1 of Schedule A
S 299,405.1352
LINE 2.
Percentage of Line 1 equipment involved in maintenance and installation activities
0.1821
LINE 3.
Schedule A customer equipment maintenance and installation dollars (Line I x Line 2)
S 54.521.6751
LINE 4.
Schedule B Analysis End column total
5 517,530.8900
LINE 5.
Annual customer equipment maintenance and installation costs (Line 3 + Line 4)
S 572,052.5651
LINE 6.
Box 1 of Schedule A
S 299,405.1352
LINE 7.
Schedule 8 Analysis 10054 cotton total
S 2,647,690.3400
UNE 8.
Total capita costs and operating expenses for installation and maintenance (Line 6+ Line?)
S 2,947,095.4752
LINE 9.
Customer equipment and installation percentage, Step A, Line 4 (Line 5 / Line 8)
0.1941
SCHEDULE B ANALYSIS
10054
INSTALL /
MA INT Y.
END
LINE 10.
Technical Salaries
S 1,603.749.1900
0.1821
S
292,042.7200
LINE 11.
Contract Labor
S 349,622.8200
0.2336
S
81,671.8900
LINE 5.
LINE 12.
Maintenance/Operating Matenal
5 210360.7200
0.1821
S
38,288.4700
LINE 13.
Freight
S 7,157.7700
0.1821
S
1,303.4200
LINE 14.
Convener Maintenance
S 21,250.6900
1.0000
S
21250.6900
LINE 15.
Vehicle Exp -Gas & Oil
S 76,787.6700
0.1821
S
13,983.0300
LINE 16.
Vehicle Exp -Repairs & Tires
S 63.036.0300
0.1821
S
11,478.8600
LINE 17.
Vehicle Rental
5 0.0000
0.1821
S
LINE 18.
Employee Benefits
S 155.450.5400
0.1821
S
28,307.5400
LINE 19.
Payroll Taxes
5 160,374.9100
0.1821
S
29,204.2700
LME 20.
5
$
LME 21.
S
S
LINE 22.
S
$
LINE 23.
Tota
$ 2,647,690.3400
1
517,530.8900
STEP M LME 6
LINE 1.
Tota nnirae nee / instalatron employees
14.9200
LINE 2.
Annual ban worked / employee
1,863.0000 his
LINE 3.
Amyl internal person horn (Line 1 x Line 2)
27,795.9600 his
LINE 4.
Contract labor hours
4,551.0000 hrs
LINE 5.
Tota labor horn for msiimrooe and inflation of customer equipment and services (Line 3 + Line 4)
32,346.9600 his
Page 12 1205 Attachments
TCI Cablevision of Texas. Inc.
We're tabor televising tato tomorrow.
PRODUCTS AND SERVICES PRICE FIST
(sl pies e» bale appfnble 6adise fees and taxes)
Maimhraas 1,1994
The en= kte of coal sesta jar any prime is BRAC SEKVI(E
Ya any padre BASIC SERVICE alar or win eery Mu OPOONAL
SEk9IH5)Tied beat
• Basic Service -58.41 pernnmh
See Clad lineup for thanes coded an Basic Servlet
OPTIONAL CAM SERVICES
• Expended laic •510.89,prmonth.
See dome lmap fa thanes mrd on Evaded Basic
• Premium d Pay-Per•Yaw Services
Pnadaa satins may be pathased ihdiSdy a, for greeter
savings, boy more dm one ad rearm the'padage price.
Iu&vidmf Prelim Service Prices
(pa mesal(
H80 51223
Shasta 9 86
The Emmy dote 1149
Ghana 1173
ban 175
Stmt 475
Package Premia Service Prices
(perms S 495
SrtajEnare
Awry 2 Pmaim Senfes (esdade 080) 1116
1 Premium d 100 1771
2 Premien 8100 14 52
Any3henna Sefton Made IMO) 7707
kry4 hernia Was 27.33
Pay -Per -View Set
Wan dmuse dmadbessaaleowner the 'Mit dmeisesepia
nddydnge) you toy ad dm lob* minas b order a manta
evert
Ch 48 • Pay Pa Yew Waies/E 1100453.7781
Ch 49 • Pay Perinea Naties_ 1100653-7782
DSO- Pay Parmwihybmy 1100653.7787
The schedule d Payfafww anis anal etana and their pries is
star' on the 5makbeim Unmet lsmOuSLoma. Tow
cacao wt be (larged forma antis or maim order. NOTE A PAT
PER YEW CONVERTER 6 REQUIRED. PIN mmbers ere atarlable
or PPT.
• Cable Gado • FM your code *Mg with dice infection! guide,
$135 pa math orabscise for 1 year $12.97/yc.
Mom Owe am
PROM •• .a
CDR/kis Cfr&sri , TX
PRODUCTS AND SERVICES PRICE LIST (ret)
(al prices minis appimhle Midis* Ica ad tom
OPEiONAL MUSIC sawn
AND EQUIPMENT
OMX (Digital Mage Mess) • 30 dieresis d 3gm( gadtyr, armed(
free attic forms stereo. (VAX sevice,wilds nodes dm ma of tie
Tim 59.95 anally.
01 Wrote Cemd • ice sigh OAIXSlate Serie, S3.00amdiy.
EQUIPMENT
StmdmdCmmta S 1.10
Addressoil (PPV) Cocmma 1/3
19
INSTALLATION & REPAIR
Varied Ham indalafect 5
Resaat/Remmat Hamm baLmidn 16 93•
AddTCancan aTine ofMei Weldon 564`
Add? Carmmm Rem* Sem,
Istabim 16.93*
Mom O
Os a . d Optimal Sate 16 93'
( ii®ale) 200•
tipple or 00111901 (HmAdb l dllptnrdSato 11.29*
C]xwtVCRdime of tidalSaba 577'
Caromed VCR Raping Sepaah bma11otaa 1133'
Comas FM etTem ofhid ln m 571'
CornedFAL Wag Semmes rata ktdtlens loMimtm 1577'
Iudm10NXlemkingSexed* LLIs 1153'
PcmdhmaA/ %Orb 100
ImdA/8Stich Tam dkit Solt 324'
SS A/8 Sail Web baits Sepals
1153'
*Ise picesmiatdaodbymai die flady Sonia Gage 060
a wadded by dm Faded( mmitmCon a®mSubsoto
ried td�d a mom firm mmfadsksdatin ttybmedapanlmtiam
Renate Casal
OTHER SERVICE HIS
leflealteFee onOrfamtkarst ' 3.00
Refund Oa Dace 15.00
Foment Colter=aHome mIt.t 1 tA®rat 15.00
/mat Raeach (6 months d nal 20.06
palm (20.00 mbar
Watered Sla dad farm On 75.0E
Unwed AdSmmaleCaret Crags 150.0C
• Mae WeigMilmm____-�;49tpamom
SORE ESD:Rigl6 MAT APPLY.
PROSE 11* TS 169E VMS MAa11BWIE Pm9w
MICE SANOCOIC6315FORO WWI
9 FM :fat osior edy Aska ata floe image of S10.00.
EFirECT71/4_ 41460.5r I, 1(194(
TELE -COMMUNICATIONS, INC.
FCC FORM 1205
PREPARATION DOCUMENTATION
1994 ANNUAL FILING
This memo will serve to document, in general terms, the steps and methodologies behind the
preparation of the 1994 annual filing of FCC Form t205 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.
The cost data included in the 1994 Form 1205s is as of December 31, 1994, the end of TCI's fiscal
year. The cost data has been derived at the system (general ledger) level and is no longer adjusted
to the franchise level (as was done for the 393 process and the 1200 process) since cable service
rates are not being developed in conjunction with this filing. Please refer to the instructions to
FCC Form 1205, page 4. The converter unit data included in this filing is generally as of
December 31, 1994. In certain filings, the converter unit data is as of September 30, 1994, the last
date for which such information was readily available. The September 30, 1994 converter unit
data has been adjusted to reflect significant purchases or write-offs that occurred during the fourth
quarter of 1994, if any.
Regulatory Accounting Policy
TCrs policy is to capitalize all costs associated with converters. Effective in 1994. TCI now
capitalizes certain direct overhead for regulatory purposes, not previously reflected in Form 393 or
Form 1205.
SCHEDULE A - CAPITAL COSTS OF SERVICE INSTALLATION
AND MAINTENANCE OF EQUIPMENT AND PLANT
Line A Represents the types of equipment necessary for installation and maintenance o
cable facilities. TCI has identified these items as vehicles (accounts 2310.0000 ant
2404.0000) and maintenance equipment (account 2300.0000). • •
Line B Represents the gross book value of the equipment items listed in Line A a
December 31, 1994. Gross book value was taken from the books and records o
TCI.
Line C Represents accumulated depreciation on the gross book value of the equipmen
items listed in Line A at December 31, 1994. Accumulated depreciation wa
calculated using TCI's standard useful lives for the respective equipment items (
years for vehicles and 10 years for maintenance equipment) on a straight-line Basi
(with half-year convention).
Line D Represents the deferred tax balance associated with the items listed in Line A r
December 31, 1994. Deferred tax balances were calculated by multiplying th
difference between the net book value and the net tax value by the sum of th
Federal income tax rate (35%) and the applicable state income tax rate (net of th
Federal income tax benefit). Net tax value was calculated using gross tax valu
minus accumulated tax depreciation.
Line F Represents the required rate of return of 1 1.25%.
Line G l Represents the Federal income tax rate in effect during 1994 of 35%.
Line G2 Represents the applicable state income tax rate for 1994.
Line G4a Represents 1994 financial statement 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 at December 31, 1994.
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, 1994. Amounts, if any, are included only
for systems 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, 1994. Amounts, if any, are
included only for systems that are part of a partnership or joint venture.
Line J Represents annual depreciation expense for the items listed in Line A. Depreciation
expense was calculated using TCI's standard useful lives on a straight-line basis
(with half-year convention).
SCHEDULE 13 - ANNUAL OPERATING EXPENSES FOR SERVICE
INSTALLATION AND MAINTENANCE OF EQUIPMENT AND PLANT
Schedule B lists all annual operating expenses (excluding depreciation) for installation anc
maintenance of all cable facilities for the year ended December 31, 1994. Annual operating
expenses for installation and maintenance of cable facilities generally include technical salaries
contract labor, maintenance/operating material, freight. converter maintenance, vehicle expense-ga_
and oil, vehicle expense -repairs and tires, vehicle rental, employee benefits and payroll taxes
Such expenses are grouped on Schedule B as follows:
Schedule B Schedule 13 Analysis
Salaries & Benefits Technical Salaries, Employee Benefits
Supplies Maintenance/Operating Material, Freight
Utilities None
Other Taxes Payroll Taxes
Other 1 Contract Labor, Converter Maintenance
Other 2 Vehicle Expense -Gas and Oil, Vehicle Expense -
Repairs and Tires, Vehicle Rental, Any Other
Expenses
Technical salaries, contract labor, maintenance/operating material, freight, converter maintenance
vehicle expense -gas and oil, vehicle expense -repairs and tires and vehicle rental expense amount.
were obtained from the books and records of TCI. Employee benefits were calculated b:
multiplying the number of full time equivalent technical employees by S2,498 (estimated 199,
average employee benefits per TCI employee as calculated by ICI's risk management department)
Payroll taxes were calculated by multiplying technical salaries expense by 10% (estimated 199,
2 fcc1205 1994 annual filing 2/15/95
average payroll tax percentage, including TCI's share of FICA. and unemployment taxes).
SCHEDULE C - CAPITAL COSTS OF LEASED CUSTOMER EQUIPMENT
Line A Represents customer equipment for which there is a separate charge. TCI has
identified standard remotes, universal remotes, standard converters and addressable
converters as those items of equipment -which will have a separate charge.
Line B Represents total maintenance/service hours for remotes and converters. Such hours
were calculated by multiplying the number of trouble calls related to remotes and
converters during 1994 by the estimated average time it takes to complete the repair.
The resultant number of hours was then allocated 5% to remotes and 95% to
converters. The hours were further allocated between the separate types of remote
and converter units proportionately based on the number of units in service. Please
refer to Schedule C Attachment for actual calculation.
Line C Represents the number of units in service as of December 31, 1994 (In certain
filings, the converter unit data is as of September 30, 1994).
Line D Represents the gross book value of the equipment items listed in Line A at
December 31, 1994. Gross book value (accounts 2260.0000, 2261.0000,
2262.0000, 2264.000, 2265.0000 and 2266.0000) was taken from the books and
records of TCI. See note regarding regulatory accounting policy above.
Line E Represents accumulated depreciation on the gross book value of the equipment
items listed in Line A at December 31, 1994. Accumulated depreciation was
calculated using TCI's standard useful life for converters (5 years) on a straight-line
basis (with half-year convention).
Line F Represents the deferred tax balance associated with the items listed in Line A at
December 31, 1994. 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.
Line J Represents annual depreciation expense for the items listed in Line A. Depreciation
expense was calculated using TCI's standard useful life for converters on a straight-
line basis (with half-year convention).
SCHEDULE D — AVERAGE HOURS PER INSTALLATION
Schedule D includes the average hours for several types of installations. The average hours per
installation for each different type of installation were obtained from system personnel. Although
TCI provided a corporate estimate for average hours per installation, the actual estimate was made
at the system level and, in some cases, deviated from the corporate estimate based upon appropriate
local factors. The average times provided by system personnel are based on experience in
performing such activities as well as information gathered and utilized in scheduling technicians
and installers.
3 fccI205 1994 annual filing 2/15/95
TCI has identified five (5) different types of installations in addition to the four (4) types of
installations identified in the instructions to Form 1205. The additional types of installations are as
follows:
* Relocate outlet
* Upgrade/downgrade of service (requiring service call)
* Upgrade/downgrade of service (addressable)
* Connect VCR initial
* Connect VCR separate
Line 4
Line 6
WORKSHEET FOR CALCULATING PERMITTED EQUIPMENT
AND INSTALLATION CHARGES
STEP A — HOURLY SERVICE CHARGE
Represents the percentage of costs and expenses entered on line 3 used for
maintenance of customer equipment and customer installations used to receive basic
tier services. Calculated as the sum of Box 1 of Schedule A (multiplied by the
percentage of time technical employees spend maintaining customer equipment and
performing service installation used to receive basic tier services) and the Schedule
B Analysis End Column total divided by the total of Box 1 of Schedule A plus the
Schedule B Analysis 100% column total. Please refer to the Worksheet for
Calculating Permitted Equipment and Installation Charges Attachment for actual
calculation.
Represents the total number of person hours that were spent on maintenance of
regulated customer equipment and set -vice installation in 1994. Total person hours
were calculated by multiplying total full time equivalent technical employees by
1,863 hours (the estimated average annual working hours per technical employee).
If the system utilized contract labor for maintenance of customer equipment and
service installation, estimated contract labor hours were included in total person
hours.
STEP F. CHARGES FOR CHANGING SERVICE TIERS OR EQUIPMENT
Line 36b Represents the average hours for changing service tiers or equipment and equals the
same number of hours listed for upgrade/downgrade of service (requiring service
call) at Schedule D, Item 2.
WORKSHEET FOR CALCULATING TOTAL EQUIPMENT
AND INSTALLATION COSTS
The Worksheet for Calculating Total Equipment and Installation Costs has not been completed
since this is the annual filing of Form 1205, and not the filing to determine equipment costs in
order to establish permitted rates for regulated cable services pursuant to FCC Form 1200. Please
refer to the instructions to FCC Form 1205, page 21.
fcc1205 1994 annual filing 2/15/95
r
ixkl,Lt3
City of Corpus Christi, Texas
Revised
Final Report regarding
FCC Forms 1205: Going Forward Rate
Regulation of TCI Cablevision of
Texas, Inc.
Prepared by:
Adrian E. Herbst, Esquire
Theresa M. Harris, Esquire
Anthony S. Mendoza, Esquire
Mary Kay Robertson, Legal Assistant
John L. Nelson, Client Financial Services Mgr.
May 17, 1995
Fredrikson & Byron, P.A.
Attorneys at Law
1100 International Centre
900 Second Avenue S.
Minneapolis, MN 55402-3397
(612) 347-7000
if r
Copyright ® 1995 Fredrikson & Byron, P.A.
Table of Contents
Executive Summary
An Overview of FCC Rules Regarding Regulation of
Equipment and Installation Rates
Our Review Process
Review of Rate Adjustments for the
Basic Service Tier
Next Steps
Prepared by Fredrikson & Byron, P.A.-5/17/95
Page 1
Page 2
Page 3
Page 4
Page 5
Executive Summary 1
This Report is issued to advise you of our conclusions regarding the review of TCI Cablevision
of Texas, Inc.'s (TCI) FCC Form 1205 filing. The City of Corpus Christi (City) received the
form on February 28, 1995. The City had 30 days from the receipt of the form to issue a
decision regarding the rates proposed by TCI. A 90 day extension is permitted if the City needs
more time to make a decision. The City requested an extension, and therefore has until June
28, 1995 to make its decision.
The City last ruled on the reasonableness of TCI's equipment and installation rates on May 24,
1994. This Ruling set the basis for all future rate changes. TCI can change rates only to reflect
changes in costs of providing the services or equipment. This change needs to be documented
on a Form 1205, which must be filed annually following the close of TCI's fiscal year.
Our review of the form indicates that TCI's current rates for its equipment and installations aro
greater than the maximum permitted rates, with a couple of exceptions. TCI has been
undercharging subscribers for initial basic service tier installation and for rental of addressable
converters. The City should order TCI to adjust its rates to be no greater than the maximum
permitted rates under FCC rules. No refunds to subscribers should be ordered.
Prepared by Predrlkson & Byron, P.A.. 5/17/95 page 1
t 'd 60:91 S66i'81•S
I WOd
An Overview of FCC Rules Regarding Regulation
of Equipment and Installation Rates
On May 24, 1994, the City of Corpus Christi reviewed and approved TCI's rates for equipment
and installation at the same time it reviewed TCI's bask service tier rates. The FCC requires cable
operators to update rates for equipment and installation once per year. Cable operators must file
FCC Form 1205 within 60 days after the end of their fiscal year, although extensions are
permitted in certain circumstances.
Franchising authorities have 30 days to review the Form 1205 filing and either approve, deny or
seek a 90 day extension of time in order to complete a review. If the City approves the rates, no
action is required. The City's silence is tacit approval of the rates submitted on Form 1205. Tithe
City does not approve the rates, it may prescribe a reasonable rate and order refunds if necessary.
The equipment rates covered by Form 1205 include: converter boxes, remote control units,
connections for additional television receivers and other cable home wiring. Cable operators must
set rates for such equipment separately, a process known as "unbundling."
FCC rules provide various formulas for calculating a cable operator's allowed charges for
equipment installation, remote control equipment, additional connection charges and various other
equipment and services. Factored into each of these formulas are the cable operator's annual
Equipment Basket cost, the cable operator's annual purchase costs for equipment and the total
number of labor hours involved in installing, repairing or servicing the various equipment. The
Equipment Basket includes direct or indirect costs of providing, leasing, installing, repairing or
servicing customer equipment and a reasonable amount of profit. The Equipment Basket cannot
include general administrative overhead.
Prop.red by Prsdrlkton & Byron, P.A. - 5117195 Pape 2
f 'd 01'91 5661'81'S
WOaj
Our Review Process
In reviewing TCI's Form 1205 on behalf of the City, Fredrikson & Byron
mathematically verifies the steps necessary to complete the worksheets and
accompanying schedules of the forms. We also verify that information from
the previous Form 1205 filing is consistent with the current filing.
After verifying the calculations, we then verify that appropriate rate
information is used to calculate the maximum permitted rate for the various
equipment and installation charges. 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. Unless any of the data raises
suspicion and warrants further inquiry, Fredrikson & Byron assumes that the
data is accurate.
Fredrikson & Byron has not performed a review of TCI's books and records
to determine whether the information included in the Form 1205 is accurate.
Such review would require employees of Fredrikson & Byron, or a qualified
subcontractor, to inspect TCI's financial records to ensure that the entries on
the forms are accurately recorded.
1
Prepared by Fredrikson & Byron, P.A. - 5117/95 Page 3
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Review of Rate Adjustments for the Basic Service Tier
TCI's Form 1205 filing shows a decrease of $4.89 in the hourly rate for cable
service installations. This change results in a decrease in the maximum
permitted rates for most installations. However, based on the information
provided by TCI, they have not at this time reduced installation rates to the new
maximum permitted rates.
There has been a decrease in the maximum permitted rate for leases of remote
controls. For converter boxes, the maximum permitted rates for addressable
converters has increased, while the rate for non -addressable converters has
decreased.
The following table illustrates current and previous maximum permitted rates,
along with the current TCI rates.
Current Current Previous
TCI 1205 393
Rates Rates Rates
1. Charges for Cable Service Installations
a. Hourly Rate $22.57 $17.68 S22.57
b. Average Installation Charges:
1. Installation of Unwired Homes $33.86 $26.53 $33.86
2. Installation of Prewired Homes $16.93 513.26 $16.93
3. Additional Connections (Initial Installation) $5.64 $8.84 $5.64
4. Additional Connections (Separate Install) $16.93 513.26 516.93
2. Monthly Charge for Lease of Remote Controls 50.19 $0.11 $0.19
3. Monthly Charge for Lease of Converter Boxes
a. Addressable Converter $1.73 $2.94 $1.73
b. Nonaddressable Converter $1.10 $0.90 51.10
4. Charge for Changing Tiers $11.29 $8.84 $11.29
Prepared by Fredrikson & Byron, P.A.-5/17/95
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Page 4
Next Steps
Based on our review of the Form 1205, TCI has appropriately calculated the maximum
permitted installation and equipment rates. However, most of their current rates exceed
the maximum permitted rates.
We recommend that the City adopt a Resolution requiring TCI to adjust its equipment
and installation rates to levels at or below the maximum permitted rates. Fredrikson &
Byron normally recommends that franchising authorities order refunds in situations
where the cable operator has charged subscribers more than the maximum permitted
rates allowed under FCC rules. In our opinion, such refunds are allowed pusuant to 47
C.F.R. §76.942(a) which states in pertinent part:
A franchising authority ... may order a cable operator to refund to
subscribers that portion of previously paid rates determined to be in
excess of the permitted tier charge or above the actual cost of
equipment... .
That section notwithstanding, we do not recommend that the City order refunds in this
case. A recent FCC decision allows cable operators to offset their refund liability by any
amounts it undercharged subscribers during the time period coverd by the Form 1205
filing. In re United Cable Television of California, Inc., DA 95-784, 1995 WL 220415
(Rel. April 12, 1995). Moreover, 47 C.F.R. §76.942(d)(2) relieves cable operators from
the chore of having to trace refund liability back to the subscribers it actually
overcharged. Instead, cable operators are allowed to take the sum of its overcharges
less the sum of its undercharges and spread the difference among the current basic
service tier subscribers.
In this case TCI was able to demonstrate to our satisfaction that the difference between
aggregate overcharges and aggregate undercharges for the months of January 1995
through April 1995 results in a net undercharge versus a net overcharge (See Exhibit A).
Becasue of this, the City cannot order refunds in this situation.
We have enclosed a draft Resolution that is consistent with our recommendations.
In the future, TCI may be filing additional Forms 1205 and 1210 to adjust its rates. As
discussed earlier, these Forms will be filed at least annually, but may be filed quarterly.
Fredrikson & Byron would be pleased to offer our assistance in the review of future
1205 and 1210 filings.
Prepared by Fredrikson & Byron, P.A. - 5/17/95 Page 5
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That the foregoing ordinance was read for the first time and passed to its second reading on this the
( day of 34 Au , 19 a5 , by the following vote:
Mary Rhodes _______Betty Jean Longoria _t/
Dr.Jack Best okr, John Longoria Y`
//
Betty Black (GAF Edward A. Martin
Melody Cooper OJaQlbci Dr. David McNichols
Tony Heldenfels a
�_1
That the foregoing ordinance was read for the second time and passed finally on this the
of 1 U(.0 , 19 l(M,5 , by the following vote:
Mary Rhodes
Dr.Jack Best
Betty Black
Melody Cooper
Tony Heldenfels
/O day
Betty Jean Longoria 1�1fv
John Longoria
Edward A. Martin
Dr. David McNichols 0
PASSED AND APPROVED, this the 20 day of }1.1.41;
Al 1EST:
APPROVED: d (O DAY OF
May , 19
JAMES R. BRAY, JR., CITY ATTORNEY
By •&C4tit'L
Assistant City Attorney
\forms\044
19g5.
THE CITY OF CORPUS CHRISTI
95:
(i ` 2 ` 5
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