Resolution No. 4312RESOLUTION NO. 4312
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CYPRESS ESTABLISHING MAXIMUM INITIAL
PERMITTED RATES FOR REGULATED CABLE
PROGRAMMING SERVICES AND EQUIPMENT, AND
ORDERING A REFUND FOR EXCESSIVE RATES
WHEREAS, the City of Cypress was certified to regulate
rates for cable programming services and equipment pursuant to
the Cable Television Consumer Protection and Competition Act of
1992;
WHEREAS, Copley /Colony Cablevision of Cypress, Inc.,
( "Copley /Colony ") holds a franchise to operate a cable television
system within the City of Cypress;
WHEREAS, on or about November 15, 1993, Copley /Colony
filed its Form 393 with the City seeking approval of its maximum
initial permitted rates for regulated cable programming services
and equipment;
WHEREAS, the City has obtained reports from Diehl,
Evans & Company, dated May 9, 1994, and from Burke, Williams &
Sorensen, dated May 16, 1994, analyzing the Form 393 submitted by
Copley /Colony;
WHEREAS, the City Council has held a public hearing
pursuant to Sections 76.935 and 76.942 of Title 47 of the Code of
Federal Regulations to take written and oral testimony from all
interested parties including Copley /Colony concerning the Form
393 submitted by Copley /Colony and the reports received from the
City's consultants; and
WHEREAS, the City Council has considered the testimony
received during the public hearing and the reports presented by
the City's consultants;
NOW, THEREFORE, the City Council of the City of Cypress
hereby resolves determines and orders as follows:
Section 1. The maximum initial permitted rates for
regulated cable programming services and equipment shall be as
follows:
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• Basic service tier (30 channels) - $11.22
• Installation of unwired homes - $33.00
• Installation of prewired homes - $20.00
• Installation of additional connection
at time of initial installation - $20.00
• Installation of additional connections
regarding separate installation - $33.00
• New install - underground - $53.00
• Charge for changing tiers - $ 2.00
• Monthly charge for lease of remote control - $ 0.22
• Monthly charge of converter box - $ 1.53
• Trip charge $ 0.00
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Copley /Colony shall implement the above rates no later
than 30 days after the date this Resolution is approved by the
City Council.
Section 2. For the period from September 1, 1993
through the date that Copley /Colony implements the maximum
initial permitted rates set forth in Section 1, Copley /Colony
shall refund to subscribers that portion of previously paid basic
service tier rates in excess of the permitted basic service tier
rates established in Section 1 of this Resolution.
Copley /Colony's liability for refunds shall be based upon the
difference between the sum of maximum permitted tier and
equipment charges previously paid, and the sum of tier charges
set forth in Section 1 above and the maximum permitted monthly
lease charge for remote controls of $0.24 and for converter boxes
of $1.63.
Copley /Colony shall implement the above refund no later
than 30 days after the date this Resolution is approved by the
City Council.
Section 3. Copley /Colony, in its discretion, may
implement the refund required in Section 2 in the following
manner.
(A) By returning overcharges to those subscribers who
actually paid the overcharges, either through
direct payment or as a specifically identified
credit to those subscribers' bill, or
(B) By means of a prospective percentage reduction in
the rates for the basic service tier or associated
equipment to cover the cumulative overcharge.
This shall be reflected as a specifically
identified, one -time credit on prospective bills
to the class of subscribers that currently
subscribe to the cable system.
Section 4. All refunds required pursuant to Section 2
shall include interest computed at the same rate as established
by the United States Internal Revenue Service for tax refunds and
additional tax payments.
Section 5. At least ten (10) days prior to
implementing any refunds, Copley /Colony shall notify the City how
it intends to implement the refund order and how it calculated
the amount of the refund.
Section 6. Copley /Colony shall notify the City of the
gross amount of the refund owing subscribers and the amount of
the refund upon which Copley /Colony paid any franchise fee to the
City. Within thirty (30) days of receiving the statement from
Copley /Colony, the City shall refund to Copley /Colony that
portion of the franchise fee that was paid on refunds made to
subscribers.
Section 7. The City Council has determined that the
maximum rate for the cable programming service tier is $0.374, or
$7.11 for the 19 channels offered. However, Copley /Colony is
charging subscribers $7.56 for the cable programming service
tier. The City Manager is hereby directed to bring this
discrepancy to the attention of the FCC for the purpose of
determining if subscribers are entitled to a refund and /or a
prospective rate reduction on the cable programming service tier.
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PASSED AND ADOPTED by the City Council of the City of
Cypress at its regular meeting held on the 23rd day of May, 1994.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
i
CITY K OF H CI Y OF CYPRESS
STATE OF CALIFORNIA ) SS
COUNTY OF ORANGE )
I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY
CERTIFY that the foreoing Resolution was duly adopted at a regular meeting of
said City Council held on the 23rd day of May 1994; by the following roll
call vote:
AYES: 5 COUNCIL MEMBERS: Age, Bowman, Kerry, Nicholson, and
Partin
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
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C LERK F THE CIS
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OF CYPRESS