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HomeMy WebLinkAboutTCI Cablevision of Washington (1994-1996) �, 1AM q,1 i I DATE ACO & CERTIFICAT` 'OF LIABILITY INSU.RA .CE 5111300; 12/19/96 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION LOCKTON COMPANIES/DENVER ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE P.O.BOX 221300 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR DENVER,CO 80222-0099 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPANY OLD REPUBLIC INSURANCE COMPANY A INSURED COMPANY AMERICAN ALTERNATIVE INS.CO. TCI OF SEATTLE,INC. B , • " COMPANY 5619 DTC PARKWAY ' C COMPANY ENGLEWOOD,CO 80111 D COVERAGES. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE(MM/DD/YY) DATE(MM/DD/YY) A GENERAL LIABILITY MWZY54753 1/1/97 1/1/98 GENERAL AGGREGATE $ 1.000,000 X COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OP AGG $ 1,000,000 CLAIMS MADE x OCCUR PERSONAL&ADV INJURY $ 1,000,000 OWNER'S&CONTRACTOR'S PROT EACH OCCURRENCE $ 1,000,000 FIRE DAMAGE(Any one fire) $ 100,000 MED EXP(Any one person) $ CIF RENTON AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO ALL OWNED AUTOS DEC .3 01996 BODILY INJURY $ SCHEDULED AUTOS - - (Per person), HIRED AUTOS RECEIVED BODILY INJURY NON-OWNED AUTOS CITY CLERK'S OFFICE - - - (Per accident) – ______ __ . PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ • _ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM $ ' WC STATU- OTH- WORKERS COMPENSATION AND TORY LIMITS ER " EMPLOYERS'LIABILITY EL EACH ACCIDENT $ THE PROPRIETOR/ PARTNERS/EXECUTIVE _ INCL EL DISEASc-FOLiCY LIMIT• W OFFICERS ARE: EXCL EL DISEASE-EA EMPLOYEE $ OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLESISPECIAL ITEMS CERTIFICATE HOLDER CANCELLATION �._ .. ...mm. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF RENTON EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, ATTN:CITY CLERK BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 200 MILL AVENUE SOUTH OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENT— -- RENTON„WA 98055 if it 25-5 0195j__ _, �. - _ -., . V 198 ACORD ! CERTIFICATE OF LIABILITY INSURANCE «A ' € I DATE(MM/DD/YY) ni , 1 5111.300 J, I 12/19/96 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION LOCKTON COMPANIES/DENVER ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE P.O.BOX 221300 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR DENVER,CO 80222-0099 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. ' COMPANIES AFFORDING COVERAGE COMPANY OLD REPUBLIC INSURANCE COMPANY ' ' 'INSURED AMERICAN ALTERNATIVE INS:CO. TCI OF SEATTLE,INC. COMPANY B ' ' COMPANY • - 5619 DTC PARKWAY C COMPANY ' ENGLEWOOD,CO 80111 D COVERAGES . _ _ • THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE(MM/DD/YY) DATE(MM/DD/YY) A GENERAL LIABILITY MWZY54753 1/1/97 1/1/98 GENERAL AGGREGATE $. 1,000,000 X COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OP AGG $ 1,000,000 CLAIMS MADE x OCCUR PERSONAL&ADV INJURY $ 1,000,000 _ OWNER'S&CONTRACTOR'S PROT EACH OCCURRENCE $ 1,000,000 FIRE DAMAGE(Any one fire) $ 100,000 MED EXP(Any one person) $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO ALL OWNED AUTOS BODILY INJURY ` SCHEDULED AUTOS (Per person) $ HIRED AUTOS BODILY INJURY - - (Per accident) NON-OWNED AUTOS.,,,• $ - - -'' PROPERTY DAMAGE_ --. _ _$ GARAGE LIABILITY ' ' ' ' AUTO ONLY-EA ACCIDENT $ — ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ _ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE _ $ _ OTHER THAN UMBRELLA FORM . $ WORKERS COMPENSATION AND TORY LIMITS ER EMPLOYERS'LIABILITY EL EACH ACCIDENT $ THE PROPRIETOR/ INCL EL DISEASE-POLICY LIMIT $ PARTNERS/EXECUTIVE OFFICERS ARE: EXCL EL DISEASE-EA EMPLOYEE $ _ OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS RENTON,WA FRANCHISE AGRMT.CERT HOLDER IS ADD'L INSD.ON GL IF REQUIRED BY WRITTEN CONTRACT.RE:ORDINANCE#4413 CERTIFICATE HOLDER _•' . . _: SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF RENTON EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, ATTN:CITY CLERK BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 200 MILL AVENUE SOUTH OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESEN"" RENTON„WA 98055 -8(1195} ; • __,-_,_ ACORD 25 ,......__... __.w_.. .... _..._.._ 4/1/ 14. 41,4411d1 1,a4� i 4198 4.1 )iii.lit2 FRANCHISING • REFRANCHISING • COMMUNITY NEEDS . ,(&` ASSESSMENTS ••... ORDINANCE PREPARATION • NEGOTIATION • . w,.':.:''`'- ="= EVALUATION • FRANCHISE ADMINISTRATION • ACCESS ....:..:. .... it j •:•i:•i4ii::�iiiifCi' !•i�4iY:::::::±:i::n::i:• no:ii;i i%Yiuin<:i". .. iiii is .: -.,'i:i�' :: :{•;.i:' :.:.ii::in:?: ::i::i ::i:::iSiR::S•:.� :}if::}( :i;};ji:;sii(:::i::i`:i:::::::i::::::::::::i:v.:::•.•......... .......::::::w..:.::.::.:: :::. :::::iy:i X;?i;;:::ii: :i:>.:; ':}:%::;::}?::::::i^ .:::: y:::i:::::::ii:::::i::i:::::ii!%:::'ii ic:i:;:i:i ) :(>.i•... ..�... .�:.iiii:is ii' :•:i::W' .: .i '.:v :' :.i:.i:i:: ...>. .. .... .. ::. :..:. .: .:. '..Y:. .:. .. ..::. ..:.:.•.:: .::::. :::.... .: :. .. .. .. ............... .......... Ti;.:;.i:iii:.?:.?:?ii. •:n: ' .:C MSI' -'�^:. ;(:::;:<: ;;3};: ' :.::: iii:.i:::i . :. : . .. .. .. .................. 1. ..... ..., . S.J ....:.:.. :...� .: .. .::::. :..... .. :. .. .. :' ..: :: ::. ':: .- '.;f:i; .::ii:;: :i .;: ...:. ::ri iY:i: : :. �. ;, :::.: ::iii::iii'ii::ii>:}i::•:(:ii:•:i: ::ii?i;Y:i;:siii;:sis: ' ::!Iii.i:::..`z .::•i;. :i::::i:::i:: •'i '. is ' :;':::+ •i:+.:., is.i :` :: + : .! .:. v:j::. :: i `'.:. :: :: .:,, .:.sr::i:::::':::i::ii::i::::.:::f:::i::i:^ii December 6, 196 ITy OF RECON ®EC 1 1 1996 - Gary Hokenson General �EKSa�ger C17y RE TCI Seattle, oF S CE 15241 Pacific Hwy. So. Seattle, WA 98188 Dear Gary: Enclosed is a copy of a letter in which you might have already seen from_.Diana Alpural reguarding TCI's collection policy. Please let us - .7�''kinow;specifically what your policy is in this reguard. . incere y;' 3=H C • :LE i OMMUNICATIONS CONSULTANTS Nwir," (1111r/ Vice P'•sident/Director cc: Diana Alpural Marilyn Petersen City of Renton LAH/kc a 504 East Main Street, Auburn, Washington 98002' • '(206)833-8380 • 1-800-222-9697 • FAX: (206)833-8430 'kpr t'••'" c�\ FRANCHISING • REFRANCHISING • COMMUNITY NEEDS - ASSESSMENTS • ORDINANCE PREPARATION • NEGOTIATION • • { 'f •,x EVALUATION • 'FRANCHISE FRANCHISE ADMINISTRATION • . ACCESS • Ai; ;'ii ' ..;.,,.::: '' •n.,,��':-�1:2titc;'.i[i'tcx %c�;Eti"`...., ,�..;.. ,,y.,,.,„'(i:iii ii:::>::.i`::>'::::�:::.;...,;•'.;:::..::::..:.:.......::_.,,::....,: :.,..;::.:....:;:::::.:..:..::::t :i:i2.:r,...:.;:':...::��.:::.:..:... .:: :.:::::::,:;:::.:':.:: .{.:`:::iai::iii:;:::ii:iliiii:';i5'0'`:i<: :::::::.::.::::. :: J#....,..r ...:::.:.:.: :: .� ..: :' .l ;S:q' ::.'•'::::: :> ';: ::: ..::;o;i::::::::;oi:2;R�:::;;Gi is :: • • December 2, 1996 • • Gary Hokenson CiTy O�RENTON General.Manager TCI Seattle, Inc. • DEC 31996 15241 Pacific Hwy South q3o ciTY CLERK S O Hlce Seattle, WA 98188 Dear Gary: • • Enclosed please find a copy of the map defining the newly annexed area in ..the,City of Renton. 'As usual, please make sure the requirements of the franchise agreement are met for this area, as well as the franchise fees properly • allocated, In.addition, please make-sure the City's government access channel • (28) is made available as soon as possible. If you need further information please feel free to contact me. • Sincerely, • 3-H ' LAB COMMUNICATIONS CONSULTANTS • • • fon A. • ur. Vice President/Director LAH/srnj .cc: Marilyn_Peterson, City f of Renton > : : : :• ;d; ...;r y r'' :a: Enclosure ;, ,;5 ...'. n 504 East Main Street, Auburn, Washington 98002 • (206)833-8380 • 1-800-222-9697 • FAX:(206)833-8430 u 4/iiiiPt , o cOf RENTON �, 1TY 200 • MILLA CITY DF RENTON VENUE SOUTH CITY OF RENTON % UTILITY TAX RETURN RENTON, WASHINGTON 98055 MAKE REMITTANCE BEFORE XS OATS ATTN: FINANCE DIRECTOR NOV 2 2 1996 PAYABLE TO RECEIVED CITY Of RENTON CITY CLERK'S OFFICE - r---TCI of SEATTLE P.O. Box 91220 °RIM:NAL Return Ala espy with 1a=r+dttasba _ Bellevue, WA 98009-9220 DUE on or before • Coh,ms 1 Column! Column! Column a Column S Column I SUSINFSS CLASSIrICATION GROSS AItOUNT DEDUCTIONS TAXABLE AMOUNT 1tATS TAX DUE Show Detail Below ELEPHONE 0 RIIIII OVER 0 ELEGRAM O Ll ' A8LEVISION 4'f ,' i?' 14 lP), I1(p 02) "2)Ni 11 11 b. D L' fr -7?It g3 kTURAL GAS 0 , )TAE TAX DUE . • - • • DETAIL OF COLUMN S — TAX DEDUCTIONS Pt Or DZ,DUCrION WHOLES .UNO RETAILING Matsui'during and Extracting srivlca aaa �Printin[and Publish. Other Activities Debts . g,78I B'3 ` t ti r.•rrr ' -suite „ t 1 and bade Discounts - •r.Explain - • AL DEDUCTIONS �� , U q v3 _ The undersigned taxpayer declares that he haa read the foregoing return and ratifies It to be correct _ e.1pd Na l Ju1vkbeY Dated thla dal of I�I *ant Received 1 1 U N I- • -rc,( V Je, I e �oei.a♦ signstun of Ueot>aee .6'137-19;n-2:71,- Title ���Vl1l/�1'�,( Phone Number • FRANCHISING • EFRANCHISING • CC AUNITY NEEDS ASSESSMENTS • ORDINANCE PREPARATION • NEGOTIATION • EVALUATION • FRANCHISE ADMINISTRATION • ACCESS October 24, 1996 Marilyn Petersen City Clerk CITY OF RENTON City of Renton 200 Mill Avenue South OCT 2 91996 Renton WA 98055 CITY C ERKIVED S OFFICE Dear Marilyn: Enclosed are TCI's third quarter results of the telephone response review for the City of Renton. System Franchise Report Requirement .-Total calls received 121,945 • All calls are answered within 3 rings • Average talk time 3:00 • . Number of calls abandoned . 1659 under 2% • Average hold time :23 less than :30 • Percentage of time all busy 0% less than 3% • A log of service interruptions is maintained at the system and has been inspected. • TCI currently maintains its own Regional Answering Center to handle all customer calls by a TCI employee and respond to complaints. • A technician is on standby 7 days a week - 24 hours a day. • TCI repaired all outages within 24 hours and maintained an average response/repair time of all trouble calls within 36 hours. • Customers are,supplied monthly with contract information for complaint resolution. 3H C A ;L', V O A UNICATIONS CONSULTANTS ...../ 0,_. if , . . on Hurd Vice President/Director LAH/kc 44 - 1 - , F 504 East Main Str-et, Auburn, Washington 98002 • (206)833-8380 • 1-800-222-9697 • FAX: (206)833-8430 •. CITY 'OF RENTON itvdo - City Clerk Jesse Tanner,Mayor Marilyn J.Petersen September 23, 1996 • Mr. Lon Hurd 3H Cable Communications Consultants 504 East Main Street Auburn, WA 98002 Re: TCI Billing Audit - Address List Dear Lon: The list of City addresses you requested is not readily available. However, City staff in the Property Management Division and the Building Division have confirmed that Renton street addresses always contain four digits and the numbering sequence does not exceed 5600. Street names (i.e. SE 98th or NE 2nd) consist of two digits or less. Therefore, if a customer has a five digit street address or a four digit street address over 5600, OR the street name contains three digits, the residence is in King.County. I hope this information will assist you in completing the audit. If you need additional information, please let me know. Our last resort would be to reproduce copies of the utility billing lists; however, the City does provide utility service outside the City limits to certain customers, and the list would not be accurate. Sincerely, \ •� Marilyn J./':e en City Clerk • • 200 Mill Avenue South- Renton, Washington 98055 - (206)235-2501 :.� This paper contains 50%recycled material,25%post consumer • . FRANCHISING • REFRANCHISING • COMMUNITY NEEDS ASSESSMENTS • ORDINANCE PREPARATION • NEGOTIATION • EVALUATION • FRANCHISE ADMINISTRATION • ACCESS September 6, 1996 CITY OF RENTON Marilyn Petersen SEP 0 9 1996 City Clerk RE ,t1vEb City of Renton CITY CLERK'S OFFICE 200 Mill Avenue South Renton, WA 98055 Dear Marilyn • Over the last few weeks TCI has changed the way some of the bills are itemized, and with this it has become apparent that TCI's records are not as accurate as needed to differentiate subscribers living within the City from those who reside in unincorporated King County. We have notified TCI of our concern and will be contacting them with our plans to audit their subscriber list soon. It appears the best way to conduct our review is to receive, if at all possible, a list of all addresses inside the City Limits and to compare with those subscribers shown by TCI. We will be contacting you soon to discuss our plans and the possibility of obtianing a list from you. As always we will keep you updated on our progress. Sincerely, 3-H AB' E OMMUNICATIONS CONSULTANTS Pi Lo • . Hurd ice President/ Director LAH/kc 504 East Main Street, Auburn, Washington 98002 • (206)833-8380 • 1-800-222-9697 • FAX: (206)833-8430 /d y" ej ) CITY Of RENT ,RE.- ito 200 MILL AVENUE SOUTH OCTCITY OF maim " ��s 2 p �� UT I L I TY TAX RETURN ? RENTON, WASH 1 NGTON 98055 MACE REMITTANCE BEFORE DVS DATE' ATTN: FIMA CE DIRECTOR PAYABLE TO • CITY OF RENTON nTCI- of SEATTLE • • P.O. Box 91220ORIGINAL Return tus copywith yet=r.mlet ne, _ Bellevue, WA 98009-9220 • DUE on or before Column I I Column 3 Column 3 Column 4 1 col�nn 3 Column 3 Bis CIJ1S317ICATION GROSS A3!OVNr . DEDUC`T ONR TAXA3I..L AMOUNT CVAT; TAX DVS Show Detail Below ELEPI-CNE 0 OWER 0 ELEGRAM 0 ABLEVISION -k 42)1 I� i '1 2i)14-, vsi 5( D• Iq► y: G)q 4T. AI, GAS )ES TAX DUE I. • • • DETAIL OF COLUMN 3 — TAX DEDUCTIONS YPL or DEDUCTIONwHOLLSALING RETAILING ) und.c•turing and Extracting STRV1Cg and Prtnttn and Publish. Other Activities Debts • 'Li LP+3 r �'���,y '' ' ' ]� to � s"' '� i (X`�r•�T°� les to +'�:�` [i f• f i'"c ryrr�� �4. v atpt�"h..tri !`.. i4`*•,p�a. : ,'�,..-�.EO4 •*r.�.a-'F a.t„r:,xl,Y�^,e - s`"`:c .: Y.... �•tYi`��,!�;'r: and Trade Discounts A •r. explain - .. AL DEDUCTION! OJ J L'L,L7� The undersigned taxpayer declares that he has read the foregoing return !land certifies It to be correct elpt No, •Dated this 7 _.. day of C- &ocr .sat l sit.. 1/1-1K.) - Signature of Licensee Eseelved bt/O'Ci6LLW-Avv-i— Title Mons Number 1.97/71 . I 51113_96xts City of Renton Vendor If 354724 Area 36-Report R Quarterly 25th • Jan Feb Mar 1st Qtr Apr May Jun 2nd Qtr Jul Aug Sep 3rd Qtr Oct Nov Dec 4th Qtr Total Basic Receipts 115,268.71 135,038.19 100,426.82 350,733.72 119,921.50 120,989.39 104,565.52 345,476.41 126,863.50 137,032.20 117,053.44 380,949.14 0.00 1,077,159.27 Expanded Receipts 107,269.24 126,560.86 92,995.29 326,825.39 110,802.75 111,843.74 100,607.31 323,253.80 127,535.83 138,167.06 117,231.28 382,934.17 0.00 1,033,013.36 •Guide 4,007.99 4,750.50 3,558.69 12317.18 4,117.51 4,289.35 3,734.32 12,141.18 4,514.01 4,717.26 3,953.65 13,184.92 0.00 37,643.28 Bozic/Pay install 3,786.01 4,872.71 4,585.73 13.244.45 6,558.87 5,713.74 6,402.65 18,675.26 5,591.43 6,687.41 6,715.54 18,994.38 0.00 50,914.09 Remote 1,146.48 1,402.03 971.85 3,520.36 1,245.08 1,210.93 1,085.86 3,541.87 1,398.19 1,492.19 1,363.64 4,254.02 0.00 11,316.25 Converter 19,790.68 22933.19 16,370.31 59,094.18 20,040.98 19,971.61 16,489.60 56,502.19 19,537.46 21,943.62 19,374.96 60,856.04 0.00 176,452.41 Bulk Basic 30,264.13 37,641.64 28,196.12 96,101.89 31,447.13 34,792.70 32,767.39 99,007.22 25,012.16 39,125.59 27,685.27 91,823.02 0.00 286,932.13 HBO 16,921.50 20,701.57 17,040.11 54,663.18 18,281.22 17,857.80 17,399.84 53,538.86 17,429.47 18,908.94 17,441.03 53,779.44 0.00 . 161,981.48 Showtime 8,923.07 10,401.12 8,038.47 27,362.66 8,882.04 8,481.75 7,389.35 24,753.14 8,023.65 8,777.61 8,089.06 24,890.32 0.00 77,006.12 DMX 1,116.67 1,532.46 1,367.00 4,016.13 1,412.10 1,222.60 1,189.42 3,824.12 1,235.80 1,208.37 1,309.91 3,754.08 0.00 11,594.33 ` Cinemax 7,515.44 9,014.72 7,415.83 23,945.99 7,704.33 7,789.75 7,476.92 22971.00 7,598.76 7,897.91 7,305.20 22801.87 0.00 69,718.86 HBO Special 771.13 894.32 760.77 2,426.22 840.72 698.62 756.22 2295.56 651.58 590.86 579.82 1,822.26 0.00 6,544.04 Showtime Special 23.74 0.70 10.29 34.73 1.82 0.12 3.77 5.71 0.02 0.00 0.00 0.02 0.00 40.46 MoxSpecial 862.41 1,013.61 943.86 2819.88 865.58 1,360.77 1,582.62 3,808.97 1,756.97 1,506.20 1,457.18 4,720.35 0.00 11,349.20 Dsny Special 101.08 137.97 136.28 375.33 216.85 189.33 120.69 526.87 131.83 140.72 137.44 409.99 0.00 1,312.19 Starz 10,727.36 13,337.31 10,960.69 35,025.36 11,715.59 11,686.98 11,031.01 34,433.58 10,744.46 11,445.27 10,984.98 33,174.71 0.00 102633.65 Disney 4,450.73 5,383.19 4,186.59 14,020.51 4,582.64 4,347.06 4,203.29 13,132.99 4,233.52 4,584.08 4,168.37 12,985.97 0.00 40,139.47 Mlsc&AdJ M&U 1,345.54 1,384.92 974.87 3,705.33 948.44 5,094.08 5,416.57 11,459.09 6,331.69 5,989.42 5,340.54 17,661.65 0.00 32,826.07 Encore 5,239.93 6,487.66 5,263.24 16,990.83 5,788.98 5,535.79 5,033.60 16,358.37 5,519.03 5,845.60 5,362.72 16,727.35 0.00 50,076.55 PPV 7,316.04 4,406.57 5,586.26 17,308.87 11,653,56 13,987.87 12249.29 37,890.72 11,178.88 4,940.95 2905.07 19,024.90 0.00 74,224.49 Com HBO 610.50 610.50 637.21 1,858.21 610.50 610.50 610.50 1,831.50 608.94 608.94 608.94 1,826.82 0.00 5,516.53 DMX Comm 754.00 396.31 601.49 1,751.80 772.44 565.38 637.28 1,975.10 599.47 1,170.77 574.90 2345.14 0.00 6,072.04 Cony Sale 27.69 150.81 116.89 295.39 2.92 64.27 34.13 101.32 62.41 0.00 135.72 198.13 0.00 594.84 Cable Doctor 41.43 42.42 69.72 153.57 13.37 13.81 29.08 0.00 117.63 14.10 129.23 260.96 0.00 414.53 SEGA 2067.02 3,010.69 2309.79 7,387.50 2259.93 2185.99 1,919.86 0.00 1,785.98 2164.88 1,664.68 5,615.54 0.00 13,003.04 Gross Receipts 350,348.52 412,105.97 313,524.17 1,075,978.66 370,686.85 380,503.93 342.736.09 1,087,504.83 388,462.67 424,959.95 361,572.57 1,174,995.19 0.00 0.00 0.00 0.00 3,338,478.68 Less:5%FF (16.683.26) (19,624.09) (14.929.72) (51,237.08) (17,651.75) (18.119.23) (16,320.77) (52091.76) (18,498.22) (20.236.19) (17,217.74) (55,952.15) 0.00 0.00 0.00 0.00 (158,975.18) Cash recv'd w/o FF 333,665.26 392,481.88 298,594.45 1,024,741.58 353,035.10 362384.70 326,415.32 1,041,835.11 369,964.45 404,723.76 344,354.83 1,119,043.04 0.00 0.00 0.00 0.00 3,179,503.50 Late Charge 8,685.25 10,875.22 7,077.09 26,637.56 7,414.05 8,074.07 6,382.72 22,370.84 8,466.43 9,659.84 7,687.94 25,814.21 0.00 74,822.61 Less NSF .0.00 0.00 0.00 0.00 0.00 (1,986.92) (2085.28) (4,072.20) (2.163.48) (2266.49) (1,887.97) (6,317.94) 0.00 Advertising 12.86% 3,977.45 6,030.97 6,692.15 16,700.58 6,692.15 11,383.35 16,863.77 34,939.27 7,652.07 44,417.36 21,020.90 73,090.32 0.00 0.00 0.00 0.00 124,730.18 CVN 12.8.5% 2,767.77 2,682.27 2711.54 8,161.58 2197.53 2501.34 L963.64 6,662.50 2046.95 1,924.83 1,924.93 5,896.61 0.00 0.00 0.00 0.00 20,720.70 Taxable Receipts 349,095.73 412,070.34 315,075.23 1,076,241.31 369,338.82 382,356.53 350,040.17 1.101,735.52 385,966.42 458,459.30 373,100.53 1,217,526.24 0.00 0.00 0.00 0.00 3,399,776.99 Fee Percent 0.05 ons 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 Fee 17,454.79 20,603.52 15,753.76 53,812.07 18,466.94 19,117.83 17.502.01 55,086.78 19,298.32 22,922.96 18,655.03 60,876.31 0.00 0.00 0.00 0.00 169,988.85 i s Page 1 A,, r✓ :. ' • FRANCHISING • REFRANCHISING . • COMMUNITY NEEDS -f'(%� ASSESSMENTS • ORDINANCE PREPARATION • NEGOTIATION • EVALUATION • FRANCHISE ADMINISTRATION • ACCESS ill' ::.:::.: . .. : � ::: ::: , �1� :.: .ate ��� ... �;: Its` t • CITY OF RENTON July 11, 1996 . JUL 1 5 1996 RECEIVED Gary Hokenson CITY CLERK'S OFFICE General Manager TCI Seattle, Inc. 15241 Pacific Hwy. So. ' Seattle, WA 98188 : Dear Gary: Please look into this matter and take whatever steps needed to resolve it. Please let us know the outcome. We appreciate your usual cooperation. Sincerely, 3-H ' • E COMMUNICATIONS CONSULTANTS eii/ nH rfa • Vice President/Director cc: Marilyn Petersen 504 East Main Street, Auburn, Washington 98002 • • (206)833-8380 • 1-800-222-9697 • FAX: (206)833-8430 IF . . _ //v 0 220 . F V•211- SZ . ..3.,. .-Z-4.,..,__, 41)17 7 y/o 3 _ _ . _ _ 4..4 Z. ........ ,......w.c.i.- ci,Thoci-4.4.4.,....' .1 0,-.1-#...Z-7 ey4 ,. , re.22.47 d.z...--A44arte .drix7t-s-rs-1-1:Z 0..4.r„2 -uii.„. c....0-4.. e"..z-,....74,..2 t.-74e.-4..e..4-e-t;10-....e. • 41743 ..,./2....-4.--/-44.-., ....4.-‘44-ri..,1,./7,4-.2. . / ..-cit-o-Le...c.. a.1.,,-1.4.2- / 9 9 do . 4fa,?; 0ihirks/ .4.--/......4.A.-„..,‘‘....„1"..,........ a.......v-A.4.-c.....z.f...4.4.......• /4 19.1 .., - 2/„1...i...t..., Y/7 - .'i/o - /.-114, ..z 0 • .v 5/- //v,4.4. • _ .r/, -- /Kz.---4.• 2/2 2 - .Z 0..tr•serc, • .. _ \-1, (=e,-1.,-;2e n-Lwer ot-t--14. 4-2. c.442,71.4.2”. errs, gi-r1.47 .. .. ,,,....a....d.,...c.i 7:44..,,,A...-- alev,..4.......42:Z4 Z"-,...4...e.e...7.71-7 2.7..e.. .... 7,21,- ez...,,4 7.4 tr.,st, -/F-- a-ta - - -- _ - - - _ . .. !. 1---- " Velma Bertilson 201 Union Avenue SE, 196 I - . . Renton, WA 98059 -- -/ ' - - _ __ . _ _ .__- __ __ _________ 31/ C....40-6., C.,„,.2.4.....ez4,-€4 __ . .ro v Z. -772.a.<..... Se . . _ _. _ _ .__. ____. .._ ._____._ . . Franchise Fee Payment Worksheet Operator TCI Cablevision of Washington Jurisdiction Renton Address 15241 Pacific Hwy. S. Seattle,WA 98188 Period January 1-March 31, 1996 Units Unit Price Months in Gross Revenue Gross Revenue Fee Franchise YTD Revenue Source X $ (each/mo.) $ Period X $ - YTD % = $ Fee Installation CA:00F 01 199650N if,:7tt),',‘',,DA,,,f :::e, 5 Additional Outlets 5 Extraordinary Installation FM Installation [ -xi- ,-6,r . . i E.".CE'NED ,t,,,,5: ., 5 Bulk Installation -ITN, ,-,) =pk'S OFFIC, 5 S,-* ,,, - .. .., , ..,.., Disconnect 5 1 Other Installation (VCR , . , , , ..,..4 . Reconnection, etc.) 5 Total Installation Income Revenue Source Units (avg. Unit Price MonthsX in Gross Revenue Gross Revenue Fee Franchise YTD of Period) $ (each/mo.) $ Period X $ YTD % = $ Fee $ Basic Cable 5 Tier I 44/ Tier II . 5 Premium C 5? 5 5 Premium Premium 5 Premium 5 Addt'l Outlet Rate 5 Pa Per View 5 FM Service 5 , Bulk(Equivalents) 5 Converter/Remote 5 Cable Guide 5 5 Total Monthly Subs.Income ::,..;.: , :_ ,...,.... , wi,., tt.4;,t., Local Advertising - * ---ATi i*:45:. 'I L4' 7 5 5 National (% gross) 1 *.-**'i‘ -' - 447..:: 4 5 Shopping Services .,,,,„:„.1-:: • NA -4:•;:$4.4;* .% Mt..71:: 1 4 LI''''''.' Rent ,,,...„.,1•3„,...-,..,, -.!..:0,r,i...; -.::....! •'..... :,..--.1.. :,... 5 L.O. Income *4.;i:.:Vti: 4 4;4'17,q: .‘:' i fr . 5 l'' ',.:*, ,*.'''.':,;:i.! ScV1 ? '-'.' ' 4 ,„ ,,,, 5 Mailing Inserts --....„.. .---:,,, ..,...1. - k. 1 , Total Non-Subscriber Income !; tqt m;magma 5 5 Operator TCI Cablevision of Washington Franchise Fee Payment Worksheet Address 15241 Pacific Hwy S. Jurisdiction Renton Seattle,WA 98188 Period_ January 1-March 31, 1996 Revenue Source Units (avg. Unit Price Months in . Gross Revenue Gross Revenue Fee Franchise YTD of Period) $ (each/mo.) $ Period X $ X YTD % = $ Fee $ Alarm 5 Other ”I , Total Interactive Income 5 Less Bad Debts - . ;k---",'''- '', . 4 e .-; 5 Plus Bad Debt Recovery : _ " =5'` . 5 Net Bad Debts (-) = 5 ,;... b. Total Other Income A✓A ' ax£ 'T 5 TOTAL REVENUES 5 Adjustments * ":'. <: ;°4,,-',‘'. .. 5 TOTAL DUE CITY a. _41` < s: „ €: t , Explanatory Notes: r 0 DI/ *Adjustments (specify): Instructions: Fill out complete form. If a particular income item is not pertinent to your franchise please draw a line through the appropriate boxes. Areas left blank will be assumed to be inadvertent omissions and the form will be returned for completion. Unit average of period is applicable only to those items for which a monthly (or portion thereof) rate is charged. Specify when "other" category is used. Prior period totals must equal YTD total. If promotional discount lowers normal average during period please indicate. If rates increased or lowered during period indicate starting dates. Multi-family installation income spread over a period of a contract will be reported when earned. Send original to franchisor Authorized by: Copy to: 3-H Cable Communications Consultants Title: 504 East Main Street Auburn,WA 98002 Date: ....X...............:::,........v.....v.v.v.....,, "_,,,,,........,.....,,,,„„...,...,„.„"„„„,,...„.„„„„w,...„„______,,,,...................... . ........„.. ii AO011) eE1T1fl....cA,] INSURANCE01 „ .mm.a........„..,,, .,•:;ii.,imi,]:* PROUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Lockton Companies HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 7400 State Line Road • ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. - •... . . ..... • Prairie Village KS 66208 • • COMPANIES AFFORDING COVERAGE . -• ,- • •• • i. . ._• , CITY OF RENTON COMPANY ' 303-267-5254 ....... „ ,. A OLD REPUBLIC INSURANCE CO. . - - -- ---- -- -- ' - -- INSURED ' ' • ' • • ,'• . COMPANY DEC 2 7 1995 COB , • . • ,. . _ _ _ RECEIVED COMPANY - TCI OF SEATTLE, INC. CITY CLERK'S OFFICE C 5619 DTC PARKWAY COMPANY ENGLEWOOD CO 80111 D POP:Mggiigiaiiiiiiiiii!iiiiiiiiiNiggiiiiiiiiiiiiiiiiiniMiiiininiiiiiiiiiiiiiiiiiiiiiiiiiiIiiiiMiiiiiiiialligEBEi!iiiiiiiiniMialiiii!iiiiiiialiGIMMOSSiiiiii9iiiiiiiiiiiiiini!iiiiiiiiiiiiiiiiiiiRiiiiiiiiiiiiiiiiniiiiiiiiiegiiiiiiIiiiiiiiigiiiiiiii. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED,NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. i POLICY EFFECTIVE POLICY EXPIRATION CO TYPE OF INSURANCE POLICY NUMBER LIMITS LTR DATE(MM/DD/YY) DATE(MM/DD/YY) GENERAL LIABILITY GENERAL AGGREGATE $ 1,000,000 A X COMMERCIAL GENERAL LIABILITY MWZY54712 01/01/96 01/01/97 PRODUCTS-COMP/OP AGG , $ 1,000,000 CLAIMS MADE X OCCUR PERSONAL&ADV INJURY $ 1,000,000 OWNER'S&CONTRACTOR'S PROT EACH OCCURRENCE $ 1,000,000 ,_FIRE DAMAGE(Any one fire) $ MED EXP(Any one person) $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT- $ . .. ANY AUTO . . . .„ ALL OWNED AUTOS ' — • •- .- • BODILY INJURY _ $ SCHEDULED AUTOS ,-. •,•,:, • HIRED AUTOS .,„' I - ' ----- - . - - - -- BODILY INJURY • • $ • -.• , . NON-OWNED AUTOS . . . . . • PROPERTY DAMAGE $ GARAGE LIABILITY , AUTO ONLY-EA ACCIDENT $ ..........................,........................ ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM $ WORIMRS COMPENSATION AND STATUTORY LIMITS :':%::':::::::::::::a,i•.'::.:,%:,:,*.:::,:''''''''''''''''.:' -:•:•:•:-...:•:•:•:•:•:•:•:•:•:•:-:•:.••••:.:•:•.:.........:-:•:.:,,, EMPLOYERS'LIABILITY . — .. . EACH ACCIDENT $ THE PROPRIETOR/ INCL DISEASE-POLICY LIMIT $ PARTNERS/EXECUTIVE —• OFFICERS ARE: EXCL DISEASE-EACH EMPLOYEE $ OTHER DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS RENTON,WA FRANCHISE AGRMT.CERT HOLDER IS.ADD'L INSD.ON GL IF REQUIRED BY WRITTEN CONTRACT. RE: ORDINANCE #4413 ,,.cga11I'IOng;g1XPMMEMEMENNOMIRDEMENiii.:Eiz':i.i.i;:gagON.Wigia;Ali.O.NigiNgi!.:.;inagiiigi:::1:iiil.MEN.iii.EffienniiiibiiiMEM. CI TRE 10 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING COMPANY WILL ENDEAVOR TO MAIL CITY OF RENTON 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, ATTN: CITY VENUE CLERK SOUTH BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 200 MILL A RENTON, WA 98055 OF ANY KIND UPON THE COMPANY,ITS AGENTS OR REPRESENTATIVES. AUTHORIZED RTENT- ' 0/ / o . • i 1/ / at.0iiiiiimigimibir!...4::::;:ii.;.ogiiimilis:i.;..iitimowpgro. .0xi:x.9..9.ni: t November 27, 1995 Renton City Council Minutes Page 448 *MOTION CARRIED. Solid Waste: Interlocal Utilities Committee Chair Corman presented a report recommending Forum Changes, King concurrence in the Planning/Building/Public Works Department's County, CAG- recommendation that Council approve an addendum to the solid waste interlocal agreement and forum interlocal agreement for the purpose of substituting the Regional Policy Committee of the King County Council for the Solid Waste Interlocal Forum. MOVED BY CORMAN, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 449 for resolution.) Public Safety Committee Public Safety Committee Chair Tanner presented a report regarding the Legal: Firearms Forfeiture forfeiture of firearms. The Committee met on 11/22/95 to consider an Changes ordinance establishing a procedure for the forfeiture of firearms. This procedure provides due process to individuals whose firearms have been seized by the Renton Police Department. The Committee recommended that the full Council read and adopt the ordinance. MOVED BY TANNER, SECONDED BY STREDICKE, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 449 for ordinance.) Fire: Pumper Truck Public Safety Committee Chair Tanner presented a report recommending Purchases approval of staff's request to enter into an interlocal purchase agreement with the City of Seattle for the purchase of two Fire Department pumper trucks. The contract will be with Emergency One and United Fire of Issaquah. MOVED BY TANNER, SECONDED BY STREDICKE, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 449 for resolution.) Planning & Development Planning and Development Committee Chair Stredicke presented a report Committee recommending that home occupations be allowed as secondary uses in multi- Building: Home family zones, per requirements in Section 4-31-19.G, with written approval of Occupation Permits in the property owner which may be revoked for good cause. MOVED BY Multi-Family Zones STREDICKE, SECONDED BY CORMAN, COUNCIL CONCUR IN THE COMMITTEE REPORT AND FORWARD THIS MATTER TO THE CITY ° ATTORNEY FOR PREPARATION OF AN ORDINANCE ON THIS CHANGE. CARRIED. Public Works: Mt Olivet Responding to Councilman Stredicke, Planning/Building/Public Works Landfill/Leachate Facility Administrator Gregg Zimmerman confirmed that the City received a letter from the owner of the Mt. Olivet leachate facility granting the City access to provide maintenance services at this location. However, the city attorney has deemed the language in the letter unsatisfactory because it holds the City liable for any acts of omission. Mr. Zimmerman explained that the City does not want to assume responsibility for the operation or maintenance of this facility; it merely wants the ability to access it on an emergency-only basis. The City also objects to the property owner's stipulation that he not be billed for any maintenance work performed by the City. Franchise: Cable Councilman Stredicke requested specific information on the cable television Television Fund; Cable . account, including whether Mr. Rasmussen's salary is paid from this fund. He Lines in City also wanted to know how many miles of cable are laid and available in Renton. Finance Committee Finance Committee Chair Keolker-Wheeler presented a report recommending Budget: 1995 Year-end concurrence in the staff recommendation to amend the 1995 adopted budget Adjustments by $1.5 million. The Committee further recommended that the ordinance regarding this matter be presented for first reading. MOVED BY KEOLKER-WHEELER, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 449 for ordinance.) • C 1/`l FINANCE & INFORMATION SERVICES MEMORANDUM CITY OF RENTON DATE: September 7, 1995 SEP 1 8 1995 RECEIVED TO: Council Members CITY CLERK'S OFFICE VIA: Mayor Earl Clymer && Q.kugh52)\, FROM: Victoria Runkle, Finance&Information Services Administrator "r-• ' SUBJECT: Cable TV rate refund-and new rates Background On June 5, Council passed Resolution 3125 which established new cable television rates and which ordered a refund of past overcharges from September of 1993 to the present. At the same time,the cable operator submitted FCC forms to increase rates to reflect inflation, which operators are allowed to do. Due to timing and the uncertainty when the increase would occur, the inflationary increase was not included in the June resolution. Refund In June the refund was estimated at$15 per customer. The actual refund, which was credited to customer accounts in July and August, came to $16.06. Customer statements simply describe the credit as a 'rate adjustment', without mentioning the City's efforts to obtain the refund. Rate increase The inflation increase has since been evaluated and approved by staff and the cable consultant. No council action is required. The increase reflects inflation from October 1992 to June 1994. The basic service rate will increase to $9.77 starting in mid-September. By comparison,the new King County rate, which also has the inflation increase, is $10.45. Renton Report article F&IS will include an article in the next Renton Report to better explain the refund and to give credit to the City's efforts to keep rates low. CSR0995.DOC We're taking television into tomorrow I TCI Cablevision of Washington, Inc. SM CITY OF RENTON August 14, 1995MB 1 5 1995 RECEIVED CITY CLERK'S OFFICE The Honorable Earl Clymer Mayor, City of Renton 200 Mill Avenue S . Renton, WA 98055 Dear Mayor Clymer and members of the City Council : As we have noted in previous letters to you, the FCC allows cable operators to increase their rates to reflect certain increases in external costs . These changes are based on federal guideline set out to ensure that cable rates are both fair and reasonable. The 1992 Cable Act and the Federal Communications Commission created a complex set of regulations under which cable companies establish and adjust rates for certain services and labor costs associated with its day to day operations . Cable operators are required to submit an extensive set of forms to justify any changes in service or labor rates . This we have done on a regular basis . Please be advised that effective September 15, 1995, the following changes will occur: o Basic cable service will increase from $9 . 36 to $9 . 77 an increase of $0 .41 . o Rates for equipment will change as follows : Standard converter from $1 . 04 to $1 . 18 . Addressable converter from $2 . 14 to $2 .34 . Remote control devices from $0 . 18 to $0 . 15 . o Labor rates will be reduced according to the attachment included with this letter. Applicable franchise fees and taxes will be added. These adjustments reflect the impact of inflation associated with the period September 30, 1992 to June 30, 1994 . Pursuant to the Commission' s requirements, our customers are being notified 30 days prior to the date these changes will be reflected in their bills . South Seattle Office • D� 15241 Pacific Hwy.S. 64— lt Seattle,WA 98188 206 34 FAX 4 �ld.G.. FAX(206)433-5103 e t! Ll t An Equa/Opportunity Employer We are committed to complying with the new rules and are doing all we can to make cable television programming and. service even better. If you have any questions regarding the calculation of these adjustments, please feel free to all me at 433-3434 . Sincerely,/ Gary A. Hokenson General Manager Rates Effective Sept. 15, 1995 Renton (FTA 36) Old Rate New Rate Difference % Change Basic 9.36 9.77 0.41 4.4% Hourly Service Charge 30.08 18.01 -12.07 -40.1% Unwired Home Installation 45.13 27.01 -18.12 -40.2% Prewired Home Installaton, Non-Pay Reconnect 22.57 13.51 -9.06 -40.1% Service Takeover, Additional Connection at Install 7.52 4.50 -3.02 -40.2% Additional Connection on Separate Trip 22.57 13.51 -9.06 -40.1% Move Outlet 22.57 13.51 -9.06 -40.1% Non-Addressable Upgrade/Downgrade/Sidegrade 15.05 9.01 . -6.04 -40.1% Addressable Upgrade/Downgrade/Sidegrade 2.00 1.88 -0.12 -6.0% Connect VCR, FM, or DMX at Install 7.52 4.50 -3.02 -40.2% Connect VCR, FM, DMX or A/B Switch on Separate Trip 15.05 9.01 -6.04 -40.1% Connect A/B Switch at Install 5.11 2.88 -2.23 -43.6% Remote - 0.18 0.15 -0.03 -16.7% Standard Converter 1.04 1.18 0.14 13.5% Addressable Converter 2.14 2.34 0.20 9.3% Page 1 June 5, 1995 enton City Council Minutes Page 229 The meeting was reconvened at 8:53 p.m.; roll was called; all Councilmembers present. Planning: SEPA Policy Planning and Development Committee Chair Stredicke presented a report Ordinance Update recommending that the full Council read and adopt the ordinance updating SEPA policies. This ordinance is a required periodic update of the City policies upon which the City may legally rely in establishing environmental mitigation or denying projects for environmental consequences. MOVED BY STREDICKE, SECONDED BY KEOLKER-WHEELER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 230 for ordinance.) ORDINANCES AND The following resolutions were presented for reading and adoption: RESOLUTIONS Resolution #3125 A resolution was read establishing cable television rates and charges. MOVED Franchise: TCI Cable. BY SCHLITZER, SECONDED BY KEOLKER-WHEELER, COUNCIL Rates and Charges ADOPT THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3126 A resolution was read approving the final plat of The Orchards, Division I Plat: Orchards Div. 1, (Northward Properties/File No. LUA-95-005). MOVED BY SCHLITZER, Final, Duvall Ave NE/ SECONDED BY EDWARDS, COUNCIL ADOPT THE RESOLUTION AS FP-95-005 PRESENTED.* Councilman Stredicke noted that this portion of the project involves single family home construction only; subsequent phases will include multi-family units and commercial development. He encouraged staff to ensure that the current signage on this property giving notice of the expected development phases is maintained at all times. *MOTION CARRIED. Resolution #3127 A resolution was read authorizing the Mayor and City Clerk to execute an Public Works: Central interlocal cooperative agreement entitled "Public Works Trust Fund Renton Sewer Construction Loan Agreement" for installation of the Central Renton sewer Replacement, Public replacement. MOVED BY SCHLITZER, SECONDED BY KEOLKER- Works Trust Fund Loan WHEELER, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. Resolution #31. 28 A resolution was read authorizing the Mayor and City Clerk to execute an Public Works: NE 27th interlocal cooperative agreement entitled "Public Works Trust Fund St/Aberdeen Ave NE Construction Loan Agreement" for installation of the N.E. 27th/Aberdeen Drainage Improvements, Avenue N.E. drainage improvements. MOVED BY CORMAN, SECONDED Public Works Trust Fund BY EDWARDS, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. Loan CARRIED. Resolution #3129 A resolution was read authorizing the Mayor and City Clerk to enter into Streets: Houser Way interlocal cooperative agreements with the Washington State Department of Relocation, WSDOT Transportation for funding of the Houser Way relocation project. MOVED Funding BY EDWARDS, SECONDED BY CORMAN, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. The following ordinances were presented for first reading and referred to the Council meeting of 6/12/95 for second and final reading: t - RENTON CITY COUNCIL Regular Meeting May 22, 1995 Municipal Building Monday, 7:30 p.m. Council Chambers MINUTES CALL TO ORDER Mayor Pro tempore Timothy Schlitzer led the Pledge of Allegiance to the flag and called the meeting of the Renton City Council to order. ROLL CALL OF TIMOTHY SCHLITZER, Mayor Pro tempore; TONI NELSON, Council COUNCILMEMBERS President Pro tempore; JESSE TANNER; RICHARD STREDICKE; KATHY KEOLKER-WHEELER; RANDY CORMAN; BOB EDWARDS. CITY STAFF IN JAY COVINGTON, Executive Assistant to the Mayor; ZANETTA FONTES, ATTENDANCE Assistant City Attorney; MARILYN J. PETERSEN, City Clerk; GREGG ZIMMERMAN, Planning/Building/Public Works Administrator; PHIL JEWETT, Information Services Director; SUE CARLSON, Economic Development Director; JIM GRAY, Assistant Fire Marshall; REBECCA LIND, Principal Planner; SAM STAR, Administrative Analyst; DEPUTY CHIEF DON PERSSON, Police Department. APPROVAL OF MOVED BY NELSON, SECONDED BY EDWARDS, COUNCIL APPROVE COUNCIL MINUTES THE MINUTES OF MAY 15, 1995, AS PRESENTED. CARRIED. PUBLIC HEARINGS ' This being the date set and proper notices having been posted and published Franchise: TCI Cable TV in accordance with local and State laws, Mayor Pro tempore Schlitzer opened Rates the public hearing to consider proposed revisions to the City's cable television rates. Phil Jewett, Information Services Director, explained that last year after the City adopted new rates and directed that TCI provide a customer refund, TCI appealed the language specifying the refund to the FCC. Prior to the FCC's ruling in favor of TCI, the cable company proposed adjusted rates for '93 and '94 as well as a one-time refund amount of approximately $15.00 to be paid to all customers. The City and TCI have now reached agreement on the new rates and the refund amount, both of which comply with FCC regulations. Mr. Jewett briefly noted how Renton's cable rates compare with those of other jurisdictions in the region, with Renton's basic rates of $9.36 being the lowest of any jurisdiction surveyed. The new basic rate of $9.26 will represent a slight reduction for customers. Audience comment was invited. Deborah Keith, representing TCI Cablevision, 2233 - 112th Ave. NE, Bellevue, 98004, confirmed that the cable company agrees with the proposed rates. There being no further public comment, it was MOVED BY STREDICKE, SECONDED BY EDWARDS, COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. MOVED BY STREDICKE, SECONDED BY KEOLKER-WHEELER, COUNCIL APPROVE THE TCI CABLE TELEVISION BASIC RATES AS PROPOSED. CARRIED. { CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 22nd day of May, 1995, at 7:30 p.m. as the date and time for a public hearing to be held in the second floor Council Chambers of the Renton Municipal Building, 200 Mill Avenue South,Renton, 98055, to consider the following: Proposed revisions to the city's cable television rates. All interested parties are invited to attend and present written and/or oral comments. Interpretive services and translation services are available upon request. For further information, call the City Clerk's office at 235-2501 (TDD 277-4404). ?7rfr ) Marilyn J. hen, City Clerk Published: Valley Daily News May 12, 1995 Acct. #50640 • City of Renton Cable Television Rates TCI Rates TCI Rates Proposed Rates Sept 93 - July 94 July 94 - May 95 July 94 - Present Basic Service (per month) 10.42 9.36 9.26 Equipment Charges (per month) • Standard Converter .60 1.04 .73 Addressable Converter 1.08 2.14 1.38 Remote Control .10 .18 .11 Installation Charges Unwired Home Installation 49.56 45.13 27.99 Prewired Home Installation 24.78 22.57 14.00 Additional Connection at Initial Installation 8.26 7.52 4.67 Additional Connection at Separate Installation 24.78 22.57 14.00 Move Outlet 24.78 22.57 14.00 Up/Downgrade Opt Services (non-addressable) 16.52 15.05 9.33 Up/Downgrade Opt Services (addressable) 2.00 2.00 1.85 All amounts exclude utility/excise taxes cablrt4 5/15/95 i ` 1\LGIONAL RATE COMPARISON Basic Expanded Channel Basic Expanded City Rate BasicRate Capacity Channgls Channels Auburn $10.02 $9.82 40 17 17 Des Moines $9.46 $9.31 40 17 17 Edmonds $17.09 Combined 35 29 Combined Federal Way • TCI $10.18 $9.58 40 17 17 Federal Way Viacom $10.66 $14.13 54 14.5 18 Kent $10.02 $9.84 40 17 17 King County TCI $10.90 $9.50 39 17 16 King County Viacom $10.77 $10.33 37 16 17 Kirkland $11.73 $12.34 55 17.5 22 Lake Forest Park TCI. $10.09 $9.50 39 17 16 Lake Forest Park Viacom $10.77 $10.33 37 16 17 Lynnwood $11.40 $13.08 - 39 17 22 Marysville TCI $9.79 $10.49 37 14 15 Marysville Viacom $12.00 $12.39 37 15 16 Oak Harbor $8.95 $13.16 37 14 19 Redmond $10.97 $12.85 54 16.5 22 Renton $9.36 $8.80 40 17 17 Seattle TCI $10.38 $10.19 40 16 17 Seattle ' - Viacom $11.02 $10.68 40 15 18 Tukwila $10.09 $9.50 40 17 17 .. : - CITX_ OF:RENTON rd . City Clerk j Earl Clymer;Mayor Marilyn J.Petersen ® - May 19, 1995 Lon Hurd 3-H Management Cable Office 502 E. Main St. Auburn, WA 98002-5502 Dear Lon, • On May 15, 1995, the City Council referred the enclosed letter from Gary A. Hokenson of TCI Cablevision of Washington; Inc., to the City Administration, the Community Services • Committee, and to you as the City's cable consultant.. The letter relates to franchise fees and whether these are to b-e included in-calculating a cable operator's gross revenues.. If you have any questions, please call either myself or Phil Jewett. • Sincerely, . .. :renda Fritsvold Deputy City Clerk ' /bf • enc. 200 Mill Avenue South Reriton;Washintori 98055;-,(206)235-2501 - .. -We're.laking televisi n ,• ' • . • : _ -:::into:lornorrow • nnnn I - - ilk : 0 .::„. �/ T Cl Cablev)•sron:of•. - _ ..V�/ash)n ton lnc: `'�::-�:: �-j� �.J:':=`:����•,._::� , .:. _ �::_..���;�::= 1 A May 9 , 1995 • �;L_ • L-. j9, . • • • ',..1/;•. The Honorable Earl Clymer- Mayor, City of Renton 200 Mill Avenue S. Renton, WA 98055 .. . Dear Mayor Clymer and members of. the City Council : . ' • As you know, cable operators have been required under the agreed-- • upon terms of its franchise to pay franchise fees of -.Up to- 5% of. .. :its gross revenues derived from the operation of its cable system.:: ' : . ' Under the terms of franchise with you, we have agreed'. to ,pay you the maximum . franchise fee of 5% . . . , In calculating its gross revenues, the Company has historically • included the franchise •fees collected by the Company as part. of _. gross. revenues . Using this aggregate. amount, the 5%-.. franchise fee . was applied to calculate the franchise fee payment . . As permitted... by FCC rules ,. we have routinely itemized franchise fees •on .our. customer' s bills • . A recent. FCC decision has caused us to notify you regarding our franchise fee. payments . In a rate order released in April . involving: the City of Baltimore, the FCC made clear that a franchise fee should not be ' included in . calculating. a cable - operator' s gross revenues for the purpose of franchise fee. calculations . . In part , the FCC stated: (I) f we allowed the franchise • fee itself to- be subject to a franchise fee . . . and if the' franchise fee agreement required a five percent assessment . -- the maximum• under the law -- a • - cable operator could now end up paying more than the. maximum franchise . fee permitted: under the Act . . .' Therefore, we find - - that an "operator' s ' gross revenues ' do not include the franchise it collects from subscribers .. (emphasis- added. ) As a result of the FCC' s sactions , we will immediately comply with this clarification and revise our : calculations accordingly. . -- .Franchise fees levied- by the..City and-.collected from our: customers • will ., nol longer- :be:: incl• uded in:.• calculating the Compariy:'=s :.gross •revenues up oc n -whih":•:franchise:. fees :.are:,then calculated It . P. • •South Seattle-Office • . ' . 15241 Pacific Hwy S. • • Seattle, WA 98188 • (206) 433-3434 . • • FAY ( r1R1 dZZ- yne '` • - , • • • With • respect to:' historical payments:;==wYh;:;:have exceeded the S • limitation,:: we. •••look .::forward`; t•o di.sc•us's•ing them with.•.you. It appears such :.amounts.:.may`. need.. t•o- be -•ref •unded•. to the .Company or • treated as a pre-payment Of-the 'franchise fees which, in addition to the time value of money. thereon, may be-::credited against future franchise fee payments . • Again, • we look forward to discussing these issues with you . Very tru 'yours, . 67- Gary A. Hokenson • . . General Manager • May 15. 1995 Renton City Council Minutes Page 202 Economic Development Director and the Renton Downtown Association as he saw no progress being made in the downtown, he suggested that the Mayor should play the role of economic development director. ' Citizen Comment: Jim Moncrief, 248 Garden Ave. N., Renton, questioned the need for mid-year Moncrief - City Finances budget adjustments, particularly inter-departmental fund transfers. He also and Bond Ratings questioned the wisdom of the City purchasing property at a time when federal and state budget cuts will place new pressure on local municipal budgets, and suggested that the City repeal or reduce its employee hours tax to attract businesses. Mr. Moncrief also suggested that the City institute curfew and truancy laws. Responding to Mr. Moncrief s comment about the City's bond rating, Councilman Edwards explained that AA and A 1 are equivalent ratings issued by different bond rating agencies (Standard & Poor's and Moody's, respectively). CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. Fire: New Year's Eve Fire Prevention Bureau submitted proposed amendment to the Fireworks Fireworks Ban Ordinance to ban fireworks discharge and sales on December 31, 1995 6:00 p.m. to January 1, 1996 1:00 a.m. and all subsequent years thereafter. Refer to Public Safety Committee. Utility: Elliot Levee Surface Water Utility Division submitted proposed interlocal agreement with Reconstruction Project, King County to accept $564,000 for the Elliot Levee Reconstruction and King County, CAG-95- Habitat Enhancement Project. The City's share is $18,000. Refer to Utilities Committee. Airport: American Lake Transportation Division submitted request from American Lake Marina to Marina Sublease from operate a seaplane air taxi service from Renton Airport via a sublease with Mindemann's, LAG-76- Mindemann's Southshore Restaurant (LAG-76-007) for the use of a waiting 007 room and access to the restaurant entrance and restrooms. Refer to Transportation (Aviation) Committee. Streets: Main Ave S Transportation Division requested approval of a proposed agreement with Improvements, CH2M CH2M Hill in the amount of $84,229 for preliminary design engineering for Hill, CAG-95- the Main Ave. S. improvements. The City's cost share of the agreement is $16,846. Refer to Transportation Committee. MOVED BY SCHLITZER, SECONDED BY CORMAN, COUNCIL APPROVE THE CONSENT AGENDA AS PRESENTED. CARRIED. CORRESPONDENCE Councilmember Keolker-Wheeler entered correspondence from Gary A. Franchise: TCI Cable Fee Hokenson, representing TCI Cablevision, 15241 Pacific Hwy. S., Seattle, Calculations 98188, regarding franchise fees and whether these are to be included in calculating a cable operator's gross revenues. MOVED BY KEOLKER- WHEELER, SECONDED BY NELSON, COUNCIL REFER THIS CORRESPONDENCE TO THE ADMINISTRATION, THE CITY'S CABLE CONSULTANT, AND THE COMMUNITY SERVICES COMMITTEE. CARRIED. OLD BUSINESS Finance Committee Chair Keolker-Wheeler presented a report recommending Finance Committee approval of Claims Vouchers #123466 - 123934; two wire transfers in the Finance: Vouchers total amount of $2,870,363.10; approval of Payroll Vouchers #134658 - �., We're faking televisi n • (� into tomorrow: KC-)rev �� vim/n Ilk4 ICI Cablevision of Washington, Inc. • 'r.� 1 . May 9 , 1995174.1P r� y X901 The Honorable Earl Clymer. ' -- Mayor, City of Renton 200 Mill Avenue S Renton, WA 98055 • • Dear Mayor Clymer and members of the City Council : As you know, cable operators have been required under the agreed- upon terms of its franchise to pay franchise fees of up to 5% of its gross revenues derived from the operation of its cable system. Under the terms of franchise with you, we have agreed to pay you the maximum franchise fee of 5% . In calculating its gross revenues, the Company has historically included the franchise fees collected by the Company as part of gross revenues . Using this aggregate: amount, the 5% franchise fee was applied to calculate the franchise fee payment . As permitted by FCC rules, we have routinely itemized franchise fees on .our. ' customer' s bills . • 1 A recent FCC decision has caused us to notify you regarding our franchise fee payments . In a rate order released in April involving the City of Baltimore, the FCC made clear thata franchise fee should not be included in calculating a cable operator' s gross revenues for the purpose of franchise fee calculations . In part, the FCC stated: (I) f we allowed the franchise fee itself to be subject to a franchise fee . . . and if the franchise fee agreement required a five percent assessment -- the maximum under the law -- a cable operator could now end up paying more than themaximum franchise fee permitted under the Act . . . Therefore, we find that an operator' s ' gross revenues' do not include the franchise it collects from subscribers . (emphasis added. ) As a result of the FCC' s actions, we will immediately comply with this clarification and revise our calculations accordingly. Franchise fees levied by the City and collected from our customers will no longer be included in calculating the Company' s gross revenues upon which franchise fees are then calculated. South Seattle Office 15241 Pacific Hwy S. Seattle, WA 98188 (206)433-3434 FAX (2061 43n-cinn With respect to historical payments which': have exceeded the 5 limitation, we look forward to discuissing '. them with. you . It:. appears such amounts may need to: be. refunded to . the Company: or treated as a pre-payment of the franchise fees which, in addition to the time value of money thereon, may be credited against future franchise fee payments . Again, we look forward to discussing these issues with you. Very tru yours, . Gary A. Hokenson General Manager May 8. 1995 ._enton City Council Minutes Page 190 Planning: Automall Planning Division requested a public hearing be set for May 22, 1995, to Ordinance reconsider the Automall Ordinance, adopted on 2/27/95, and to provide the opportunity for input from property owners in the area near Grady Way S. and Rainier Ave. S., which is proposed for a regional automall. Council concur. Planning: 1995 Planning Division submitted 16 proposed 1995 Comprehensive Plan Comprehensive Plan amendments (five private and 11 City-initiated; including 1994 carryovers for Amendments Bryant Motors, COR policies, and The Highlander/Parker PUD). Refer to Planning Commission. MOVED BY SCHLITZER, SECONDED BY KEOLKER-WHEELER, COUNCIL APPROVE THE CONSENT AGENDA AS AMENDED TO REMOVE ITEM 7.e. FOR SEPARATE CONSIDERATION. CARRIED. Separate Consideration Development Services Division requested acceptance of the dedication of eight Streets: Shattuck Ave. S. feet of lot frontage along Shattuck Ave. S. between S. 15th and S. 19th Streets, Street Dedication (Jacques for the eventual redevelopment of this street, as required for approval of the Short Plat, LUA-94-151) Jacques Short Plat II, File No. LUA-94-151. Councilman Edwards noted that Initiative 164 (relating to property rights/takings), which was recently approved by the State legislature, might affect this type of street dedication as it could be construed as a property taking. The initiative and its potential impacts to Renton will be discussed next week at Committee of the Whole. MOVED BY EDWARDS, SECONDED BY STREDICKE, COUNCIL REFER THE PROPOSED SHATTUCK AVE. S. STREET DEDICATION TO THE TRANSPORTATION COMMITTEE. CARRIED. CORRESPONDENCE Correspondence was read from Larry M. Brown, 261 SW 41st St., Renton, Citizen Comment: Brown 98055, regarding the appeal of the Hearing Examiner's decision on the Seed of - Seed of Abraham Abraham Church conditional use permit. The letter stated Mr. Brown's Conditional Use Permit, opinion that the conditional use permit application and subsequent support by CU-94-140 staff, the Environmental Review Committee and the Hearing Examiner stands on its own without First Amendment considerations. MOVED BY EDWARDS, SECONDED BY KEOLKER-WHEELER, COUNCIL REFER THIS CORRESPONDENCE TO THE OFFICIAL FILE, CU-94-140. CARRIED. OLD BUSINESS Council President Schlitzer presented a Committee of the Whole report Committee of the Whole recommending approval of the revised Governmental Access Channel Policy Franchise: Cable TV and Procedure as proposed. The Committee also authorized the regular Policies Council meetings to be broadcast on Channel 28 on a weekly basis, and authorized staff to determine the broadcast schedule in response to public input. MOVED BY SCHLITZER, SECONDED BY TANNER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Public Safety Committee Public Safety Committee Chair Tanner stated that the Committee met to Police: Transfer of Persons discuss the problem of transferring persons with outstanding warrants to the with Outstanding Warrants issuing jurisdiction, but concluded there is no action to be taken. Therefore, to the Issuing Jurisdiction the Committee asked that this item be removed from its referral list. Budget: 1995, Adjustment Councilman Tanner entered into the record a letter from Mayor Clymer to the for Property Acquisition Council stating the Administration's intention to purchase five parcels located (Good Chevrolet) in the downtown area that are currently owned by Howard Sheridan and occupied by Good Chevrolet. Mr. Tanner objected to the purchase as an inappropriate use of taxpayer funds, particularly as the City has no clearly APPROVED BY r. t CITY COUNCIL Deo COMMITTEE OF THE WHOLE REPORT MAY 8, 1995 Government Access Channel Policy and Procedure Update The Committee of the Whole recommends approval of the revised Governmental Access Channel Policy and Procedure as proposed. The Committee also authorizes the regular Council meetings to be broadcast on Channel 28 on a weekly basis; and authorizes staff to determine the broadcast schedule in response to public input. /412, //i Council Presi•e Timo by.Schli i May 8, 1995 Renton City Council Minutes Page 189 Citizen Comment: Kathleen Crabtree, 115 Wells Ave. N., Renton, 98055, stated she lives eight Crabtree - Seed of houses south of the current location of the Seed of Abraham church in North Abraham Church CUP, Renton, yet has never been bothered by noise or parking problems even CU-94-140 though the church's current location has no on-site parking of its own. Ms. Crabtree was surprised at the opposition expressed by Tobin St. residents to this church, and said she has spoken with several of her neighbors and none of them expressed any problems with the church. Citizen Comment: Carlson Harold Carlson, 1509 Davis Ave. S., Renton, stated that his neighbor owns a - Noise Concerns in logging truck which is the source of excessive early-morning noise beginning Residential Neighborhood at 3:30 a.m. and lasting for approximately 30 minutes while it warms up. Mr. Carlson inquired about protection from such noise for this residential area. Mayor Clymer referred Mr. Carlson to Planning/Building/Public Works Administrator Gregg Zimmerman, who agreed to look into this issue. CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. At the request of a Councilmember, item 7.e. was removed for separate consideration. Planning: Land Use City Clerk submitted proposed ordinance updating City Code to reflect the Designation Changes conversion from former land use designation names to new names referenced in the Comprehensive Plan and the area-wide zoning map, adopted on 2/20/95. Council concur. (See page 194 for ordinance.) CAG: 95-036, Fire Station City Clerk reported bid opening on 4/26/95 for CAG-95-036, Fire Station No. 11 Roof Installation No. 11 roof installation project; six bids; engineer's estimate $26,000.00. Refer to Community Services Committee. CAG: 95-035, Bronson City Clerk reported bid opening on 5/03/95 for CAG-95-035, Bronson Way Way N/NE 3rd Street N. and NE 3rd St. signalization and street improvement project; three bids; Improvements, Totem engineer's estimate $811,347.00; and submitted staff recommendation to award Electric the contract to the low bidder, Totem Electric of Tacoma, Inc., in the amount of $655,278.80, subject to approval from the Transportation Improvement Board. Council concur. CAG: 93-073, Cedar Community Services Department submitted CAG-93-073, Cedar River River Greenway Greenway Interpretive Park project; and requested approval of the project, Interpretive Park, Thomco authorization for final pay estimate in the amount of $11,275.22, Construction commencement of 30-day lien period, and release of retained amount of $28,956.35 to THOMCO Construction, Inc., contractor, if all required releases have been obtained. Council concur. Planning: SEPA,Policies Development Services Division submitted proposed City Code amendment to City Code Update revise and update City SEPA policies by incorporating various new ordinances and resolutions (e.g. Six-Year Transportation Improvement Plan). Refer to Planning and Development Committee. Franchise; TCI Cable Finance & Information Services Department submitted proposed new cable Rates television rates, and requested that a public hearing be set on May 22, 1995, on this subject. Council concur. Streets: Park Ave N Legal Department recommended authorization of a proposed settlement Condemnation/Property agreement in the approximate amount of $37,500 ($7,500 net expenditure Settlement required) to obtain use and possession of property located at 410 Park Ave. N. necessary for the realignment, widening and improvement of Park Ave. N. Council concur. CITY OF RENTON COUNCIL AGENDA BILL SUBMITTING DEPT: FOR AGENDA OF: May 8, 1995 Finance& Information Services Staff Contact is Phil Jewett AGENDA STATUS: Consent XX SUBJECT: Public Hearing Cable television rates Correspondence Ordinance Resolution Old Business EXHIBITS: New Business Issue paper. Executive Session RECOMMENDED ACTION: I APPROVALS: Set public hearing for May 22 on this subject I Legal Dept IFinance Other FISCAL IMPACT: Expenditure Required... Transfer/Amendment.. Amount Budgeted Revenue Generated.... SUMMARY OF ACTION: As a provision of the City's cable rate regulation authority, a public hearing or other method of public input is required before rates are approved. The last public hearing on cable rates was in April 1994. •The attached issue paper provides background information on cable rates. ® INTEROFFICE MEMO DATE: May 3, 1995 TO: Councilmembers VIA: Mayor Earl Clymer FROM: Victoria Runkle, Finance & Information Services Administrator RE: Cable rates status report Past events The City is certified by the FCC to regulate "basic" cable rates, equipment, and installation charges in effect since September 1, 1993. In April 1994 the Council held a public hearing and in August 1994 the Council passed a resolution setting rates back to September 1993 and ordering a refund, which was then in the amount of $2 per customer. TCI protested the refund language of the resolution and appealed to the FCC. In December 1994, the FCC ruled in TCI's favor and sent the resolution back to the City to revise the refund language. At the same time this was happening, TCI re-submitted revised rates which were substantially lower than their original submission. These revised rates produce a refund amount of about $5 per customer. Also occurring in mid-1994, the FCC established new regulations and benchmark rates with the intent to reduce cable rates nationwide by 7 percent. Because of this, TCI lowered their rates on July 14, 1994, and submitted these rates for approval to the City. There are thus two rate regulation periods that the City must address in a new rate order resolution: period 1 runs from September 1, 1993 to July 14, 1994; and period 2 runs from July 14, 1994 to the present. TCI has also submitted revised rates for rate period 2, which again are lower and produce a refund of about $10 per customer for rate period 2. There is thus a combined refund of about $15 per customer for the entire period from September 1993 to the present. The attached table of rates compares Renton rates with other jurisdictions surveyed by the cable consultant. Renton's current basic rate of $9.36 is the lowest per-channel rate of any jurisdiction surveyed. City staff will propose a resolution that addresses both rate periods. Fortunately, City staff, the City's cable consultant, and TCI have agreed on refund language that meets FCC requirements, so no dispute is expected this time. "Future" events On May 1, 1995, TCI raised rates in accordance with new FCC regulations that allows cable operators to raise rates quarterly in response to inflation and other external costs. While this increase is most likely proper, City staff and the cable consultant are not yet ready to approve it, and thus will not be included in the upcoming resolution. Staff will propose that for future quarterly rate adjustments, an administrative hearing be used, with formal public hearings before the Council held just once a year. CSR0595A.DOC t Expanded Channel # of City Date Basic Basic Capacity Channels Auburn 9/9/94 $10.02 $9.82 40 17/17 Des Moines 9/9/94 $9.46 $9.31 40 17/17 Edmonds 12/1/94 $17.09 Combined 33 30 Kent 9/9/94 $10.02 $9.84 40 17/17 Kirkland 1/10/95 $11.73 $12.34 55 17.5/22 Redmond 1/10/95 $10.97 $12.85 54 16.5/22 Renton 7/14/94 $9.36 $8.80 40 17/17 Tukwila 7/14/94 $10.09 $9.50 40 17/17 Federal Way-TCI 7/14/94 $10.18 $9.58 40 17/17 ... Federal Way-Viacom 2/23/95 $10.66 $14.13 53 14.5/18 Lake Forest Park-TCI 7/14/94 $10.09 $9.50 39 17/16 Lake Forest Park-Viacom 11/8/94 $10.77 $10.33 37 16/17 Oak Harbor 1/23/95 $8.95 $13.16 37 14/19 Marysville-TCI 2/94 $9.79 $10.49 37 14/15 Marysville-Viacom 2/94 $12.00 $12.39 37 15/16 May 1. 1995 Kenton City Council Minutes Page 181 Council: Salary Update An ordinance was read amending Chapter 5, Council, of Title I (Administrative) of City Code by revising Councilmembers' salaries. MOVED BY SCHLITZER, SECONDED BY NELSON, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 05/08/95. CARRIED. Councilman Tanner emphasized that this legislation will not change any Councilmember's salary; rather, it merely updates City Code to reflect current salaries. Budget: 1995 Amendments An ordinance was read providing for 1995 budget amendments in the total amount of $41,422,289, and dissolving: the Federal Shared Revenue Fund; the Street Forward Thrust Fund; the Gene Coulon Beach Park Construction Fund; the 1973 Airport Revenue Bonds Fund; the 1975 Water and Sewer Construction Fund; the 1977 Water and Sewer Refunding Bonds/Issue No. 2; the 1977 Water and Sewer Refunding Bonds/Issue No. 3; the Local Improvement Guaranty Fund; the Motor Vehicle Intoxication Fund; the Municipal Court Witness Fee Revolving Fund, and the Local Improvement District (LID) Control Fund. MOVED BY KEOLKER-WHEELER, SECONDED BY TANNER, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 05/08/95. CARRIED. Transportation: Parking & An ordinance and summary ordinance were read amending Chapter 14, Loading Ordinance Parking and Loading Ordinance, of Title IV (Building Regulations), and Changes amending subsections 10-10-4.H, 10-10-4.H.4, 10-10-5.B and 10-10-5.D of Chapter 10, Parking Regulations, of Title X (Traffic), of City Code relating to parking standards for developments in the City of Renton. MOVED BY SCHLITZER, SECONDED BY KEOLKER-WHEELER, COUNCIL REFER THE ORDINANCE AND SUMMARY ORDINANCE FOR SECOND AND FINAL READING ON 05/08/95. CARRIED. VAC: 94-003, 77th Ave S, An ordinance was read vacating a portion of 77th Avenue South (Longacres The Boeing Company Park, Inc./The Boeing Company, VAC-94-003). MOVED BY STREDICKE, SECONDED BY SCHLITZER, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 05/08/95. CARRIED. The following ordinance was presented for second and final reading: Ordinance #4513 An ordinance was read amending subsections 4-31-10.4.B.2.b, 4-31- Planning: Arterial 10.4.B.2.b.(1), and 4-31-10-4.B.2.b.(2) of Chapter 31, Zoning Code, of Title Commercial (CA) Zone IV (Building Regulations) of City Code concerning residential uses in the Changes Commercial Arterial (CA) zoning district. MOVED BY KEOLKER- WHEELER, SECONDED BY SCHLITZER, COUNCIL ADOPT THE ORDINANCE AS PRESENTED. ROLL CALL: ALL AYES. CARRIED. NEW BUSINESS Referring to the Mayor's announcement that delayed broadcast of Council Franchise: Council meetings will begin this week, Councilmember Keolker-Wheeler preferred that Meeting Braodcast the policies regarding this subject be discussed and adopted by Council prior Schedule to any broadcasting. Mrs. Keolker-Wheeler noted that this subject is scheduled for Committee of the Whole next week. MOVED BY KEOLKER-WHEELER, SECONDED BY STREDICKE, COUNCIL DIRECT THAT NO BROADCASTING OF COUNCIL MEETINGS OCCUR UNTIL COUNCIL HAS EVALUATED AND ADOPTED A POLICY ON THIS MATTER. CARRIED. April 10, I995 Renton City Council Minutes ' Page 145 Ordinance #4506 An ordinance and summary ordinance were read amending Subsection 8-2- Utility: Special Utility 7.B.3 and Section 8-2-7.0 of Chapter 2, Storm and Surface Water Drainage, of ' Connection Charges Title VIII (Health and Sanitation) of City Code relating to implementation of (SUCC Fees); Surface the surface water system development charge. MOVED BY CORMAN, Water SECONDED BY KEOLKER-WHEELER, COUNCIL ADOPT THE ORDINANCE AND SUMMARY ORDINANCE AS PRESENTED. ROLL CALL: ALL AYES. CARRIED. Ordinance #4507 An ordinance and summary ordinance were read amending Subsection'8-5- , Utility: Special Utility 17.B.3 and deleting Subsection 8-5-17.0 of Chapter 5, Sewers, of Title VIII Connection Charges (Health and Sanitation) of City Code relating to a system development charge (SUCC Fees); Sewer for connection to the City's sewer system. MOVED BY CORMAN, SECONDED BY EDWARDS, COUNCIL ADOPT THE ORDINANCE AND SUMMARY ORDINANCE AS PRESENTED. ROLL CALL: ALL AYES. CARRIED. Ordinance #4508 An ordinance and summary ordinance were read amending Subsections 8-4- Utility: Special Utility 41.B.3 and 8-4-41.C, of Chapter 4, Water, of Title VIII (Health and Connection Charges Sanitation) of City Code relating to a system development charge for (SUCC Fees); Water connection to the water utility. MOVED BY CORMAN, SECONDED BY KEOLKER-WHEELER, COUNCIL ADOPT THE ORDINANCE AND SUMMARY ORDINANCE AS PRESENTED. ROLL CALL: SIX AYES (SCHLITZER, EDWARDS, NELSON, KEOLKER-WHEELER, TANNER, CORMAN), ONE NAY (STREDICKE). CARRIED. Councilman Edwards commented that, with passage of these ordinances, the utility connection fees for single family residences were reduced for all three utilities. NEW BUSINESS MOVED BY EDWARDS, SECONDED BY CORMAN, COUNCIL REFER Library: Electronic Media THE SUBJECT OF ELECTRONIC ACCESS BY RENTON RESIDENTS TO Program OFFICIAL CITY PUBLICATIONS TO THE COMMITTEE OF THE WHOLE. CARRIED. Executive: Renton Report _ Councilman Stredicke requested information on space rates for camera-ready copy in the new Renton Reporter. He added that if the Renton Report is to be distributed to residents via the new newspaper, it should be included as an insert and not as an advertisement. Mayor Clymer replied that the City will save $5,600 annually by distributing the Renton Report via the new newspaper, even as the frequency of issues is _ increased from three to twelve times per year. Franchise: Senior Stage Councilman Stredicke suggested that the upcoming senior stage revue at Carco Revue on Channel 28 Theatre be videotaped and shown on the City's government access channel. ADJOURNMENT MOVED BY STREDICKE, SECONDED BY CORMAN, COUNCIL ADJOURN. CARRIED. Time: 11:26 p.m. MARILYN ERSEN, CMC, City Clerk . Recorder: Brenda Fritsvold 4/10/95 11A1)-1 I ® INTEROFFICE MEMO - RECEIVED DATE: June 19, 199.5 JUN 2 0 1995 TO: Toni Nelson., Community Services Committee Chair Councilmembers RENTCN CITY COUNCIL lb FROM: Mayor Earl Clymer StlY VIA: Victoria Runkle, Finance & Information Services Administrator • STAFF CONTACT: Phil Jewett, Information Systems Director f It RE: Cable TV Franchise Fee Calculations Background On May 9, 1995, TCI of Washington announced its intention to use an FCC ruling involving the City of Baltimore that would change its method of calculating franchise fees. Council requested that staff and the cable consultant review this matter and report back on financial implications.. • Financial Implications TCI currently pays the City about $240,000 per year in franchise fees. The potential future reduction is 5 percent, or $12,000 per year. TCI may also attempt to recover overpayments since September of 1993, estimated at $18,000. City Action . On May 23, the City's cable consultant, with the approval of City staff, sent the attached letter to TCI indicating that the City does not agree with the preliminary FCC order, which is not a final order, and discouraging TCI from acting unilaterally in this matter. TCI has since referred the matter to their corporate legal department in Denver. Current Events The US Congress is in the process of passing a telecommunications deregulation bill that is likely to further reduce the franchise fees existing cable operators pay, plus allow telephone companies to enter the cable TV market without obtaining franchises at all. Consequently, any present actions on the part of TCI and the City are likely to be inconsequential in the long term. CSC0619M.DOC • FRANCHISING • ruEFRANCHISING m CO IUNITY NEEDS ASSESSMENTS • ORDINANCE PREPARATION • NEGOTIATION • EVALUATION • . FRANCHISE ADMINISTRATION . • ACCESS. :.. • May 23, 1995 • Gary Hokenson General Manager TCI of South Seattle 15241 Pacific Highway South Seattle, WA 98188 Dear Gary: • Thank you for your letter of May 9, 1995 discussing the United Artists Cable of Baltimore case and its possible future effect on franchise fees paid to the City of Renton. We have spoken with the City of Baltimore's attorney and have learned that the order mentioned in your letter is not final. Since Baltimore has requested a reconsideration, it might be close to a year (if ever) before this order does become final. ..,.We feel that TCI is very premature in addressing this issue with the franchising . authority at this time. Of course the'City is interested-in abiding by.the orders passed down by the FCC and related authorities, however since there is no indication that this order is final and binding;there is no present need to make any changes nor even to discuss changes in the payment of franchise fees. Please provide the City with written notice of TCI's intentions. If you have any further concerns in this regard, please feel free to contact us. Sincerely, 3- Ca.,e C..' nications Consultants • 4, Lon ,' . , . . • ' e Pr- i.ent/Director LAH/sb cc Phil Jewett; City of Renton 502 East.Main Street, Auburn, Washington 98002 - (206)833-8380 • 1-800-222-9697 • FAX: (206)833-8430 • AFFIDAVIT OF PUBLICATION - , being first duly sworn on oath q states that he/she is the Legal Clerk of the VALLEY DAILY NEWS 600 S. Washington Kent, WA. 98032 a daily newspaper published six (6) times week. Said newspaper is a legal newspaper of general circulation and is now and has been for more than six months prior to the date of publication referred to, printed and published in the • English language continually as a daily newspaper in Kent, King County, Wash- ington. The Valley Daily News has been approved as a legal newspaper by order of the Superior Court of the State of Washington for King County. The notice in the exact form attached, was published in the Valley Daily News (and not in supplement form) which was regularly distributed to the subscribers during the below stated period. The annexed notice, a T1,33-0 ncIr CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN'that the was published on 3 •. 2 . -a t, Renton City Council has fixed the 22nd day I of May, 1995, at 7:30 p.m.as the date and •ed for said foregoing publication i the sum of time for a public hearing to be held in the The full amount of the fee charged 9 9 second floor Council Chambers of the Ren- • ton Municipal Building, 200 Mill Avenue $ ,' 7_, South, Renton, 98055, to consider the fol- lowing: I ,I; ' Proposed revisions to the city's cable �� �� television rates. e•:I Clerk, Valley .ily News ! All interested parties are invited to attend and present written and/or oral comments. Interpretive services and translation ser- vices are available upon request.For further Subscribed and sworn before me this ? •aye '4'1*? 19 q 5 i information, call the City Clerk's office at 235-2501 (TDD 277-4404). Marilyn J. Petersen, City Clerk RGIE L 7t% / Published in the Valley Daily News May � �SsioNF F91.11' �/� / " 12, 1995. 173 �• Notar ` 'ublic or the State of Washington �,�a N rA R i;�': residing at Auburn U,• P z}e King County, Washington A0�:� UBL1CP =,=i VDN#1164 Revised A� r 2 �, �� / eko°F was..... N" fore the FEDERAL COM C4TIONS COMMISSION WaS11ingo>rl, .C. 205 ,OF RENTON DA 95-1182 JUN 1.2 1995 In the Matter of ) RECI VED ) CITY CLERK'S OFFICE TCI Cablevision of Los Angeles ) CUID No. CA1168 (South Whittier) County, Inc. ) ) TCI Cablevision of Florida, Inc. - ) CUID Nos. FL0061 (District 5) and ) FL0518 (South Daytona) ) TCI Cablevision of Treasure ) CUID No. FL0230 (Vero Beach) Coast, Inc. ) ) Miami Tele-Communications, Inc. ,.) CUID No. FL0653 (Miami) ) TCI,Cableyision of North Central ) CUID No. KY05'69 (Mt. Washington) Kentucky, Inc. ) •.:TCI Cablevision of Cape Cod, Inc. ) CUID Nos. MA0006'(Yarmouth), ) MAQ039`(Bari stable); MA0040 (Harwich) ) and MA0041 (Dennis) TCI Cablevision.of:West Michigan,_Inc. ) CUID Nos. MI1153 (Cannon) and MI1729 ) (Tallmadge) ) TCI Cablevision of Asheville, Inc. ) ;CUID No. NC0032 (Asheville) TCI Cablevision of Ohio, Inc. . ) • . CUID Nos. O1-10028 (Conneaut):; OH0893 ) (Kirtland), OH0896 (Mentor-on-,the-Lake) ) and OH0960 (Perry) , TCI Cablevision of Tulsa,, Inc. ) CUID Nos..0K0065 (Broken Arrow) and 0K0194 (Sapulpa). ) TCI TKR of Houston, Inc. ) CUID No. TX0424 (Texas City) ) TCI Cablevision of Dallas, Inc. ) • . CUID Nos. TX0624 (Farmers Branch) and ) TX0682 (Mesquite) ) Newport News.Cablevision, Inc. ) • ,CUID No. VA0031 (Newport News) ) f . TCI Cablevision of South'Seattle, Inc: ': g4.' :CUID No. WA0068 (Renton) TCI of Seattle, Inc. ) CUID Nos. WA0082 (King County S) and WA0083 (King County) TCI Cablevision of Southwest ), CUID No. WA0253 (King) Washington, Inc. ) ). • Benchmark Filings to Support ) ' Cable Programming Service Prices ). MEMORANDUM OPINION AND ORDER . .Adopted: :May 26, 1995. Released: June 7, 1995 By the Chief, Cable Services Bureau: 1. Here we consider complaints about the prices that the above-captioned operators (individually "Operator" and, collectively, "Operators") were charging for their,cable. programming service ("CPS") tiers in the communities designated above. Operators have - chosen to attempt to justify their prices through benchmark showings on FCC Form 393. This Order addresses the reasonableness of Operators' prices only,through May 14, 1994. :0At a.later: date we;,will,-:issue a,separate order addressing the reasonableness of the prices after that date.' 2. • Under,the Cable Television Consumer;Protection and.Competition Act of 1992,2 and our rules implementing. it, 47 C.F.R. Part 76, Subpart N, the Commission must review "(; • 9 • '.The findings in this Order do not in any way prejudge the reasonableness of the prices for CPS service after May 14, 1994 'under our new rate regulations. However, to the extent Operators have sought to take advantage of the refund deferral period under the Second Order on Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed Rulemaking, MM Docket No. 92-266, FCC 94-38, 9 FCC Rcd 4119 (1994) ("Second Order 'on Rconsideration"), the maximum'permitted CPS prices determined herein might also apply from May 15, 1994 until the date on which such Operators implemented their CPS prices,under the new regulations.. See para. 3, infra. Further, to the extent that the prices as of March 31, 1994 are found to be excessive, reductions in prices for the period after May 14,,.1994 may be required to reflect,the fact that the prices during the earlier period, which are used as the starting point to calculate the prices for the prospective°period, were unreasonable. See 47 C:F.R. § 76.922(b)(4)(C). 2 Pub. L. No. 102-385, 106 Stat. 1460 (1992); Communications Act, § 623(c), as amended, 47 U.S.C. § 543(c) (1993). 2 'CPS Prices'upon the filing of a valid complaint. The filing of•a validcomplaint triggers an 'obligation on behalf of the cable operator to file'a justification of its CPS prices.3 Under our rules,/an operator may attempt to justify its'prices through either a benchmark showing or a cost-of-service 'showing.4 In either case, the operator has the burden of demonstrating that its CPS prices are not unreasonable.' • 3. The Commission's original rate regulations took effect on September 1; 1993.6 The Commission subsequently revised its rate regulations effective May 15, 1994' Operators"with valid CPS complaints filed against them prior to May 15, 1994 must ;demonstrate that-their CPS prices were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994, and that their prices were in compliance With the revised rules from May-15, 1994 forward.$ Operators attempting to justify their=prices for'the period prior to May 15, 1994 through a benchmark showing must complete and file FCC Form 393.9 Generally, to justify their prices for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 • series:10 ., 4. The first'valid'CPS`complaints in each of the.franchise areas-which are the subject 'Of this Order'were-completed and served on the respective'Operators and.received by the Commission on the dates'.set forth on Appendix A. Operators filed FCC Form.393s in response;.Operators have also filed amended and supplemental:Form 393 filings." • 3 47 .C'.F.R. § 76.956. . . ,.. . 4 47 C.F.R. § 76.956(b). ,Id, 6 Order in MM Docket No. 92-266, Implementation of Sections of the'Cable'Television Consumer:Protection and Competition Act of 1992: Rate Regulation, FCC 93-372, 58 Fed. Reg. 41042 (Aug. 2, 1993). . 47 C.F.R. § 76.922(b). g See. Second Order on Reconsideration, 9 FCC,Rcd at 4190, paras. 150-152. • 9 1d: 19 47 C.F.R. § 76.922(b)(6); see also Second Order on Reconsideration, 9 FCC Rcd at 4189 n.195. 11 For example, Operators filed amended FCC Forms,393 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally. Cable Operators' Rate Justification Filings, 9 FCC Rcd.7752 (Cab. Serv. Bur. 1994). 3 5. For the franchiseareas designated by CUID Nos. °FLU230, FL0653 and OK0194, Operators' actual CPS tier,prices were above the maximum permitted prices:that.Operators calculated for the CPS tier and,, thus, Operators,failed to demonstrate. that their prices:for,the CPS tier were not unreasonable. Furthermore, upon review of:Operators'. submissions for these franchise areas, we have found that Operators have not correctly calculated their maximum permitted prices, and it is therefore appropriate to make the following adjustments to, Operators''calculations itr their Form 393s: . a. On Line 32, Step G, Part III of their Form 393s, Operators made an error in addition. For CUID No. FL0230, the Operator entered $538,191:90..- The correct figure!is..$496,283.14 and we have revised this entry. For CUID No. FL0653, the Operator entered$945,690.19: The correct figure is $925,858.11 and we have ,. :,revised,this,entry. . For CUID No. 010194,,,the.Operator_entered $3.,991,8.17.04. . The correct figure is $3,891,113.27 and we have revised.this entry. b. Because the Operators have not demonstrated that their prices in these, franchise areas were reasonable, we must also recalculate the Inflation Adjustment '.Factor using the most accurate,data currently,available for,the.date for which the Operators.filed.'2 :The Operatorson their amended Form.393scalculated the Inflation Adjustment Factor.as of:the.end of October 1993.,using data released on August 31, 1993. ,On July,29,, 1994,, the U.S. Department of Commercereleased corrected inflation data including Gross National Product Price Index ("GNP-PI") figures of 122.3 for the third quarter of 1992 and 125.7 for the'third quarter of 1993. Using these GNP-PI figures, we calculate an Inflation Adjustment Factor through October 1993, the base date the Operators used in justifying their rates,' of 1.030.' 6. For the franchise area designated by CUID No. FL0518, the Operator's actual CPS tier price was above the maximum permitted price that it calculated for the CPS tier and, thus, the Operator failed to demonstrate that its price for the CPS tier was not unreasonable:, Furthermore, upon review of the Operator's submission for this franchise area,,We,have found that the Operator has not correctly calculated its maximum permitted price, and it is therefore appropriate'to make the following adjustment to the'Operator's calculations in its Form 393: . On its Form 393 filing for CUID No. FL0518, the Operator calculated the Inflation Adjustment,Factor as•of the end of._December 1993, However, the Operator cannot permissibly calculate inflation through the end of December 1993. Based on the service date of the earliest valid complaint, the Operator was required to file a • 12 See 47 C.F.R:.,§ 76:922(b)(9)(iii)(if a cable operator fails to justify.its rates, rates must be.adjusted.in accordance with the;most accurate data available at the time.of analysis). 4 rate justification no later than November 29, 1993.13 If the Operator had filed FCC Form 393 by that date, the instructions to Form 393 would have required it to calculate the inflation adjustment only through October 1993.14 The Operator cannot claim an additional inflation adjustment simply because it filed Form 393 late. We therefore must recalculate the Inflation Adjustment Factor on the basis of the most accurate data currently available for the date that the Operator should have filed Form 393.15 On July 29, 1994, the U.S. Department of Commerce released corrected inflation data including Gross National Product Price Index ("GNP-PI") figures of 122.3 for the third quarter of 1992 and 125.7 for the third quarter of 1993. Using these GNP-PI figures, we calculate an Inflation Adjustment Factor through October 1993, the base date the Operator should have used in justifying its rate for CUID No. FL0518, of 1.030. 7. For the remaining franchise areas, we have found no apparent errors in the Operators' calculation of their maximum permitted rates. However, the Operators' actual CPS tier prices were..above the maximum permitted prices that the Operators calculated for the CPS tier. Accordingly, the Operators have failed to demonstrate that their prices for the CPS tier were not unreasonable, and we therefore must recalculate the Inflation Adjustment Factor in Form 393, Part II, Worksheets 1 and 4, on the basis of the most accurate data currently available for the date for which the Operators filed:16 a. Except for the franchise area designated by CUID No. FL0061, the Operators on their amended Form 393s, calculated the Inflation Adjustment Factor as of the end of October 1993 using data released on August 31, 1993. On July 29, 1994, the U.S. Department of Commerce released corrected inflation data including Gross National Product Price Index ("GNP-PI") figures of 122.3 for the third quarter of 1992 and 125.7 for the third quarter of 1993. Using these GNP-PI figures, we calculate an Inflation Adjustment Factor through October 1993, the base date the Operators used in justifying their rates, of 1.030.17 13 See 47 C.F.R. § 76.956(a). 14 FCC Form 393, page 11, instructions for Line 124 (Inflation Adjustment Factor is calculated using "the number of whole months from September 30, 1992 to the date you will submit this form"). 15 See 47 C.F.R. § 76.922(b)(9)(iii)(if a cable operator fails to justify its rates, rates must be adjusted in accordance with the most accurate data available at the time of the analysis). 16 Id. 17 This adjustment to Worksheet 1 has the effect of causing operators in some franchise areas to calculate,their permitted rate from Form 393, Part II, Worksheet 2 rather than Worksheet 1. In those franchise areas where operators did not file a Worksheet 2 and one is 5 b. For the franchise area designated by CUID No. FL0061, the Operator on its amended Form 393, calculated the Inflation Adjustment Factor as of the end of December 1993 using data released on December 1, 1993. On July 29, 1994, the U.S. Department of Commerce released corrected inflation data including Gross National Product Price Index ("GNP-PI") figures of 122.3 for the third quarter of f992 and 126.5 for the fourth quarter of 1993. Using these GNP-PI figures, we calculate an Inflation Adjustment Factor through December 1993, the base date the Operator used in justifying its rate, of 1.034. 8. Upon review of the record herein, and having incorporated the adjustments discussed above, we conclude that Operators have failed to justify the rates they were charging during the periods in question. Operators' showings justify the maximum reasonable CPS tier prices shown on Appendix B (plus franchise fee) for the period from the filing of the earliest complaint in each franchise area (as set forth in Appendix A) to May 14, 1994.18 However, we further determine that for CUID Nos. MA0006, MA0039, MA0040 and MA0041, the total overcharge per subscriber is de minimis. Therefore, it would not serve the public interest to order refunds in these franchise areas. , 9. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. §. 0.321, that the complaints referred to in Appendix A against the cable programming service prices charged by Operators in the areas referenced in the caption and at Appendix A herein, and all other complaints in these franchise areas related to the same prices, ARE GRANTED TO. THE EXTENT INDICATED HEREIN. 10. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R. § 76.961, that Operators shall refund to subscribers in the communities shown in Appendix B, except for CUID Nos. MA0006, MA0039, MA0040 and MA0041, that portion of the amounts paid for cable programming service for the period from the filing of the first valid complaint in each franchise area (as set forth on Appendix A)19 to May 14, 1994 which exceeded the maximum price for each franchise area set forth in Appendix B (plus franchise fee) per month, plus interest to the date of the refund. needed, we have computed Worksheet 2 by using data supplied by operators on their Form 1200 filings. 18 This finding is based solely on the representations of Operators and the modifications described herein. Should information come to our attention that these representations were materially inaccurate, we reserve the right to take appropriate action. This Order is not to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to this proceeding not specifically addressed herein. 19 Our jurisdiction to order a refund dates from the earliest date a valid complaint is filed with the Commission. 47'C.F.R. §,76.961(b). 6 11. IT IS FURTHER ORDERED that Operators shall promptly determine the overcharges to their CPS subscribers for the stated periods, and shall within 30 days of the release of this Order file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. 12. IT IS FURTHER ORDERED, pursuant to Section 76.922(b)(4)(C) of the Commission's rules, 47 C.F.R. § 76.922(b)(4)(C), that Operators shall, within 30 days of the.release of this Order, revise their Form 1200 filings with respect to the communities listed herein, for the period beginning May 15, 1994, to reduce the nioi;thly charge per tier as of March 31, 1994 for Tier 2 (Line A6b) to equal the maximum price in each franchise area set forth in Appendix B (plus franchise fee).20 13. IT IS FURTHER ORDERED that Operators shall place into effect, within 30 days after their submission of the revised Form 1200 filings required above, prices that reflect the reductions in the CPS rates determined in this Order. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chie , Cable Services littreau 20 We reserve the right to make further adjustments to Operators' prices for the period after May 14. 1994, upon completion of our review of Operators" Form 1200 filings. 7 Appendix A CUID No. Date First Complaint Date Complaint Filed with FCC Served CA1168 10/15/93 10/12/93 FL0061 3/10/94 3/5/94 FL0518 11/3/93 10/29/93 FL0230 9/24/93 9/14/93 • FL0653 9/27/93 9/17/93 KY0569 9/30/93 9/27/93 MA0006 2/2/94 1/26/94 MA0039 2/2/94 1/26/94 MA0040 2/2/94 1/26/94 MA0041 2/2/94 1/26/94 MI1153 12/9/93 11/12/93 MI1729 11/23/93 10/18/93 NC0032 10/5/93 9/27/93 OH0028 2/17/94 2/17/94 OH0893 2/28/94 2/28/94 OH0896 2/28/94 2/25/94 0110960 2/25/94 2/25/94 OK0065 12/6/93 11/30/93 • OK0194 12/10/93 12/6/93 TX0424 1/24/94 1/13/94 • TX0624 2/28/94' 2/25/94 TX0682 1.1/29/93 • ' 11/24/93 VA0031 10/19/93 • 10/14/93 WA0068 12/20/93 12/16/93 WA0082 9/7/93 9/3/93 WA0083 9/7/93 9/3/93 WA0253 9/7/93 9/3/93 Appendix B CUID No. Actual Rates Maximum Permitted Rates CA1168 , $11.10 $10.34 FL0061 $11.25 $10.73 FL0518 $11.25 $10.69 FL0230 $11.73 $11.23 FL0653 $13.89 $13.55 KY0569 $10.79 $10.57 MA0006 $11.48 $11.44 MA0039 $11.48 $11.44 MA0040 $11.48 $11.44 MA0041 $11.48 $11.44 MI1153 $11.80 $11.18 MI1729 $11.80 $11.18 NC0032 $11.17 $10.80 OH0028 $11.24 $10.71 0110893 $11.89 $11.79 OH0896 $11.89 $11.79 OH0960 $11.89 $11.79 OK0065 $10.98 $10.48 OK0194 $10.98 $10.45 TX0424 $12.48 $11.45 TX0624 $9.98 $9.64 TX0682 $10.85 $10.38 VA0031 $12.87 $12.46 WA0068 $10.61 $10.13 WA0082 $9.98 $9.76 WA0083 $9.98 $9.76 WA0253 $10.56 $10.22 -rez `. CITY OF -RENTON, WASHINGTON RESOLUTION NO. 3125 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, ESTABLISHING CABLE TELEVISION RATES AND CHARGES. WHEREAS, the =City of Renton is certified by the Federal Communications Commission to regulate and approve various basic cable television rates and charges; and WHEREAS, the City of Rentons authority to regulate and approve basic cable television rates and charges is retroactive to September 1 , 1993; and WHEREAS, TCI of Seattle, Inc . is a cable television operator ' franchised by the City of Renton to operate within the City of Renton; and WHEREAS, TCI of Seattle, Inc . has submitted for the City of Rentons review and approval its regulated rates in effect since September 1, 1993; and WHEREAS, the City of Renton has reviewed the submitted rates and held a public hearing in accordance with Federal Communications Commission regulations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, . WASHINGTON,_ DO RESOLVE AS FOLLOWS : - SECTION I . The above recitals are found to betrue and correct in all respects . SECTION II. Pursuant to FCC Rules, Form 393, TCI of Seattle, Inc . had rates in effect from September 1, 1993 to July 14, 1994 in excess of those permitted, resulting in a total overcharge to City of Rentoncustomers of TCI of Seattle, Inc. in RESOLUTION NO. 3125 the amount of $54, 965 . 25 . Additionally, pursuant to FCC Rules, Form 1200, effective from July 14, 1994, regulated basic cable television rates and charges exclusive of B&O taxes for City of Renton customers of TCI of Seattle, Inc . are as follows : Basic cable television service (per month) 9 . 26 Equipment charges (per month) Standard converter . 73 Addressable converter 1 . 38 Standard remote control . 11 Installation charges Unwired home installation 27 . 99 Prewired home installation 14 . 00 Additional connection at initial installation 4 . 67 Additional connection at separate installation 14 . 00 Relocate outlet 14 . 00 Upgrade/downgrade opt. services (non-addressable) 9 . 33 Upgrade/downgrade optional services (addressable) 1 . 85 . SECTION III . TCI of Seattle, Inc. is directed to change its regulated rates and charges for all City of Renton customers to those listed in Section II within sixty ( 60) days of the date of this resolution. SECTION IV. TCI of Seattle, , Inc . shall refund to subscribers that portion of previously paid rates in excess of the rates set forth above. Refunds must be made in accordance with 47 CFR 576 . 942 . The refund period shall run from the date TCI of Seattle implements the rate reduction back in time to September 1 , 1993 . SECTION V. This resolution supersedes and replaces Resolution 3087 . PASSED BY THE CITY COUNCIL this 5th day of June , 1995 . NAIV)11/4'91:/ ilarilyn J. Pctcrccn, City Clcrk Brenda Fritsvold, Deputy City Clerk 2 RESOLUTION NO. 3125 APPROVED BY THE MAYOR this 5th day of June , 1995 . 1 f • E-r - y r, ryore Approved as to form: C � / �� . Lawr e J. Warre City Attorney RES . 443 : 5/10/95 3 CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 22nd day of May, 1995, at 7:30 p.m. as the date and time for a public hearing to be held-in the second floor Council Chambers of the Renton Municipal Building, 200 Mill Avenue South, Renton, 98055, to consider the following: Proposed revisions to the city's cable television rates. All interested parties are invited to attend and present written and/or oral comments. Interpretive services and translation services are available upon request. For further information, call the City Clerk's office at 235-2501 (TDD 277-4404). Marilyn J. e den, City Clerk Published: Valley Daily News May 12, 1995 Acct. #50640 AFFIDAVIT OF PUBLICATION a,,,,...,:,,,4roi_.c� , being first duly sworn on oath states that he/she is the Legal Clerk of the VALLEY DAILY NEWS - --___"—__ I 600 S. Washington Kent, WA. 98032 TOOF CELLOUL ARSHINGTON"RELATING 1 TELEPHONE SERVICE a daily newspaper published six (6) times week. Said newspaper is a legal TAX. ! newspaper of general circulation and is now and has been for more than six The following is a summary of this ordi- ,Hance. months prior to the date of publication referred to, printed and published in the I English language continually as a daily newspaper in Kent, King County, Wash- SECTION I. This ordinance establishes � ington. The Valley Daily News has been approved as a legal newspaper by order definitions related to cellular telephone service, establishes a cellular telephone of the Superior Court of the State of Washington for King County. service tax and deductions from gross The notice in the exact form attached, was published in the Valley Daily News income for purposes of calculating that (and not in supplement form) which was regularly distributed to the subscriberstax. The ordinance also allocates income y __ _, r for cellular telephone service for the pur- ' ` during the below stated period. The annexed notice, a CITY OF RENTON, WASHINGTON pose of taxation,establishes a dispute res- I-SUMMARY OF ORDINANCE NO. 4503 olution mechanism and establishes when , gra 4!:4,S 0and how the cellular telephone service tax 1 AN ORDINANCE QF THE CITY OF REN- rate maychange. 1 !TON, WASHINGTON, AMENDING SUB- A fultext f this ordinance will be .I 1 SECTION 5-OF OCHAPTER. mailed, without charge, upon request to G UTILITY TAX,OF TITLE V(FINANCE AND 'BUSINESS REGULATIONS), OF ORDI- the City Clerk. was published on • 7 O c 'NANCE NO. 4260 ENTITLED "CODE OF Published in the Valley Daily News April GENERAL ORDINANCES OF THE CITY 7, 1995. 16 I The full amount of the fee charged for said foregoing publication is the sum of -- - - ___- l Lega4.1l Clerk, - ey Daily News Subscribed and sworn before me this2 damof a V 19 9 S , l(pRGIE** ( y4:1 �.••••"sION•••,9�SS Notary Public or the State of Washington s����\5 F-A�:y ri residing at Auburn ap.*: o Tq A LV Oa / King County, Washington VDN#1164' s&r7,(92U B L I G� ;= s Ia'`lva A®SVt\`- • CITY OF RENTON COUNCIL AGENDA BILL AI#:1. �• J SUBMITTING DEPT: I FOR AGENDA OF: May 8, 1995 Finance& Information Services � Staff Contact is Phil Jewett AGENDA STATUS: Consent XX SUBJECT: Public Hearing Cable television rates correspondence Ordinance Resolution Old Business EXHIBITS: New Business Issue paper. Executive Session RECOMMENDED ACTION: APPROVALS: Set public hearing for May 22 on this subject I Legal Dept Finance Other FISCAL IMPACT: Expenditure Required... Transfer/Amendment.. Amount Budgeted Revenue Generated.... SUMMARY OF ACTION: As a provision of the City's cable rate regulation authority, a public hearing or other method of public input is required before rates are approved. The last public hearing on cable rates was in April 1994. The attached issue paper provides background information on cable rates. %4 0 INTEROFFICE MEMO DATE: May 3, 1995 TO: Councilmembers VIA: Mayor Earl Clymer FROM: Victoria Runkle, Finance & Information Services Administrator RE: Cable rates status report Past events The City is certified by the FCC to regulate "basic" cable rates, equipment, and installation charges in effect since September 1, 1993. In April 1994 the Council held a public hearing and in August 1994 the Council passed a resolution setting rates back to September 1993 and ordering a refund, which was then in the amount of $2 per customer. TCI protested the refund language of the resolution and appealed to the FCC. In December 1994, the FCC ruled in TCI's favor and sent the resolution back to the City to revise the refund language. At the same time this was happening, TCI re-submitted revised rates which were substantially lower than their original submission. These revised rates produce a refund amount of about $5 per customer. Also occurring in mid-1994, the FCC established new regulations and benchmark rates with the intent to reduce cable rates nationwide by 7 percent. Because of this, TCI lowered their rates on July 14, 1994, and submitted these rates for approval to the City. There are thus two rate regulation periods that the City must address in a new rate order resolution: period 1 runs from September 1, 1993 to July 14, 1994; and period 2 runs from July 14, 1994 to the present. TCI has also submitted revised rates for rate period 2, which again are lower and produce a refund of about $10 per customer for rate period 2. There is thus a combined refund of about $15 per customer for the entire period from.September 1993 to the present. The attached table of rates compares Renton rates with other jurisdictions surveyed by the cable consultant. Renton's current basic rate of $9.36 is the lowest per-channel rate of any jurisdiction surveyed. City staff will propose a resolution that addresses both rate periods. Fortunately, City staff, the City's cable consultant, and TCI have agreed on refund language that meets FCC requirements, so no dispute is expected this time. "Future" events On May 1, 1995, TCI raised rates in accordance with new FCC regulations that allows cable operators to raise rates quarterly in response to inflation and other external costs. While this increase is most likely proper, City staff and the cable consultant are not yet ready to approve it, and thus will not be included in the upcoming resolution. Staff will propose that for future quarterly rate adjustments, an administrative hearing be used, with formal public hearings before the Council held just once a year. CSR0595A.DOC , A Expanded Channel # of City Date Basic Basic Capacity Channels Auburn 9/9/94 $10.02 $9.82 40 17/17 Des Moines 9/9/94 $9.46 $9.31 40 17/17 Edmonds 12/1/94 $17.09 Combined 33 30 Kent 9/9/94 $10.02 $9.84 40 17/17 Kirkland 1/10/95 $11.73 $12.34 55 17.5/22 Redmond 1/10/95 $10.97 $12.85 54 16.5/22 Renton 7/14/94 $9.36 $8.80 40 17/17 Tukwila 7/14/94 $10.09 $9.50 40 17/17 Federal Way-TCI 7/14/94 $10.18 $9.58 40 17/17 Federal Way-Viacom 2/23/95 $10.66 $14.13 53 14.5/18 Lake Forest Park-TCI 7/14/94 $10.09 $9.50 39 17/16 Lake Forest Park-Viacom 11/8/94 $10.77 $10.33 37 16/17 Oak Harbor 1/23/95 $8.95 $13.16 37 14/19 Marysville-TCI 2/94 $9.79 $10.49 37 14/15 Marysville-Viacom 2/94 $12.00 $12.39 37 15/16 April 3. 1995 Renton City Council Minutes Page 129 NEW BUSINESS Councilmember Keolker-Wheeler announced that the Washington State • WSDOT: I-405 Noise Walls Department of Transportation (WSDOT) will hold an open house on April 11th in Kennydale Area regarding the installation of noise walls on I-405 in the Kennydale area; the meeting will take place from 5:00 to 8:00 p.m. at Kennydale Elementary School. Franchise: Cable Councilmember Keolker-Wheeler inquired about the possibility of Education broadcasting community college telecourses on the City's government access Channel/College channel. Executive Assistant Covington replied that these are shown on the Telecourse Broadcasts cable company's education channel, which is currently available only in other jurisdictions but will be available in Renton. ADJOURNMENT . MOVED BY STREDICKE, SECONDED BY SCHLITZER, COUNCIL ADJOURN. CARRIED. Time: 9:10 p.m. MARILYN ITERSEN, CMC, City Clerk Recorder: Brenda Fritsvold • 4/03/95- - .4) .c.: CITY JF RENTON ..LL City Clerk Earl Clymer,Mayor - , Marilyn J.Petersen February 10, 1995 • Mr. Lon Hurd 3-H Management Cable Office 502 East Main Street Auburn, WA 98002-5502 Re: Cable Channel 28 Reception Dear Lon: As you are aware, we have had numerous complaints from citizens and Councilmembers regarding the qualityof reception on Channel 28. In the past few weeks, the problem has worsened to the point that somemessages are not easily readable due to distortion of colors, characters and backgrounds. In addition, the movement of the text on the screen (text waving and jumping) is-extremely annoying. After having acquired state-of-the art,equipment and provided extensive training to staff, we are very disappointed with the poor picture quality on Channel 28. Since other cable channels are not similarly affected, we would request that TCI Cable Company be contacted regarding this matter and urged toimprove the quality of the reception. We appreciate your assistance in this matter. If I can provide additional information, please feel free to call me at any time. Sincerely, Marilyn . rsen City Clerk . cc: Mayor Earl Clymer Members, Renton City Council Phil Jewett, Finance Department 200 Mill Avenue South - Renton,Washington 98055- (206)235-2501 .m► tWe're taking television into tomorrow. k--------;----1 TCI Cablevision of Washington, Inc. tor . �� February 9, 1995 FEB 3 1995 ''Y��� . 4� r, . The Honorable Earl Clymer CITY CLERK'S OFFICE_, 0�^� Mayor, City of Renton ��• 200 Mill Avenue SC . Renton, WA 98055 Dear Mayor Clymer and Members of the City Council : This letter is to provide 30 days advance notification of our plans to temporarily discontinue four (4) of nine (•9) radio stations that . comprise our FM service . As previously announced in January, 1994 , we must remove stations to create channel capacity to launch a new cable -service . • The stations temporarily removed will be KUBE, KLSY, KIRO-AM and KOMO-AM. We will continue to carry KING-FM and two Public Radio stations; KUOW and KPLU to honor earlier commitments . In addition we' ll continue offering KBSG and KMPS, the top; two rated_ stations in the market . KBSG will have its cable frequency reassigned to 104 . 9 and KMPS to 105 . 7 . . We will not be removing stations in areas where we have. expanded . channel capacity due to our rebuild. This includes parts of West Seattle and Burien. As these areas are completed and additional areas are rebuilt, we will be restoring previously removed stations . . The above mentioned changes will be effective April 5 , 1995 . Customer will be provided 30 days advanced notice of the changes via billing messages . . On April 26 , 1995 TCI will be introducing an exciting new service to our customers ' - Sega Channel . Sega Channel is an . optional premium game service that has been very popular with TCI customers in other markets where it' s , been tested. I will provide more details on the Sega Channel as soon as they' re available . Should you have any questions or concerns, please don' t hesitate to contact me. • Very truly urs, % t)7. . .. . Gary Hoke son General Manager . , cc : Phil. Jewett .. • Lon Hurd - • . -�/ South Seattle Office (/ � � 15241 Pacific Hwy S. / / �� /IW Seattle,WA 98188 (206)433-3434 FAX(206)433-5103 An Equal Opportunity Employer we re to relevlsron into tomorrow. ICI Cablevision of Washington, Inc. 1'1jtftii D ; _CITY OF RENTON February 1, 1995 FEB 0 2 1995 -�iri,y�v'ED CITY CLERK'S OFFICE The Honorable Earl Clymer Mayor, City of Renton 200 Mill Avenue S Renton, WA 98055 Dear Mayor Clymer : Please be advised that TCI Cablevision will increase the monthly FCC User Fee from $ . 03 to $ . 04 beginning with the March 1995 billing statement . Details of the FCC ruling concerning the User Fee were outlined in my letter to you on October 24 , 1994 . We will_ provide proper, advanced notification to our customer via a printed message on the billing statement . That message will reach the customer at least thirty days in advance of this one cent. increase . Should you have any questions regarding the User Fee Pass through, please contact me at 433-3434 . Very tr. y yours, • l� ` . .. - Gary A'. Hokenson General Manager cc : Lon Hurd • • (iG . C-6--.u - South Seattle Office 15241 Pacific Hwy S. Seattle,WA 98188 • (206)433-3434 FAX (206)433-5103 An Eoual Opportunity Employer L...v vV �-1 il..'vvI .1 1 VV VI WLL LVI M_IV I •.1. \ 1 .. . „ . , // ' zE&/ff>1 '71 . :1 .. . . . . . . • . . ; FEDERAL CO'.YLti1 J'NICATIONS COMMISSION .14,-. CABLE SERVICES BUREAU 2033 M STREET, Vii.W.. ROOM 918 ..:11 WASHINGTON. DC 20554 • it FAX NUMBER: 416-0870 1 TH/3 FACSIMILE TRANSMISSION IS IN'TE`'DED ONLY FOR THS ADDRESSEE SHOWN• i BELOW. IT MAY CONTAIN INFORMATION THAT.IS PRIVILEGED;CONFLDE>4TIAL•OR • f OTHERWISE PROTECTED FROM DISCIJISLRF. ANY REVIEW, DISSEMINATION OR CSE OF THIS TRANSMISSION OR rrs C )` EN-I S S1 PERSONS OTHER THA',THE A'1DRI S' IS STRICT&N t.dOHIBITED. IF YOU-Ii tl.k. :(ECiIVED THIS TRANSMISSION IN :::.ROR. ',1 • ' PLEASE NOTIFY LIS LMLMEDIATE:.1 R1 i F'LF.PII()`E AND %IAII. THE ORit::: U. TO 1. t I. THE ABOVE ADDRESS. -: DATE: ! __. ......... ..:. TO: .- - �•' li\TIO )C�. ..�!�`l``cat-N) ._� . //J�.. dCA FAX NUMBER: 006 "~ )-.5J 57 /_ TELEPHONE NUMBER: _ ••• •• ,•••......._.. ._.._... ._., • • . MESSAGE • - . • I LSV JV #i 1 1 1 VV LI... 4-0,01ALJ-MJ I • 7/11111j/ CODY Fejt Before the FEDERAL COMMUNICATIONS COiVII1'ITSSION Washington, D.C.'20554 In the Matter of: ) DA 94-1595 ) TQ OF SEATTLE, INC. ) ) Appeal of Local Rate Order of ) ) City of Renton, WA ) ORDER, Adopted: December 28, 1994 Released; December 28, 1994 By the Chief, Cable Services Bureau: L INTRODUCTION 1. TCI of Seattle, Inc. ("TOW), the franchisee in the above matter, filed on September 14, 1994 an Appeal of Local Cable Rate Order adopted on August 15, 1994 by its local franchising authority, the City of Renton, Washington ("the City"). The late Order establishes a new regulated rate schedule for TCI's basic service tier rates and associated equipment.' Specifically, the City's Rate Order requires TCI to implement certain rate reductions and to issue refunds to subscribers, dating back to September 1, 1993. 2. In its review of TCI's Form 393, the'City approved TCI's permitted rates for its basic service tier and installations, but ordered TCI to keep its rates for converter boxes and remote controls at the current levels, rather than at the higher, maximum permitted Ievels 2 TCI argues that because of this misapplication of the Commission's rate regulations, 3 Under the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act") and the Commission's implementing regulations, local franchising authorities may regulate rates for basic cable service and associated equipment. See Cable Television Consumer Protection and Competition Act, Pub. L. No. 102-385, 106 Stat. 1460 (1992); Communications Act, § 623(b), 47 U.S.C. § 543(b). 2 On the Cover Sheet (Part I) of its Form 393, TCI's maximum permitted rate for remote controls is listed as $ 0.19 per month, while its actual rate is listed as $ 0.10 per month. Likewise, TCI's maximum permitted rates for converter boxes are listed as $ 1.12 and $ 2,31 per month, while its actual rates are listed as $ 0.60 and $ 1.08 per month, respectively. The . -J4 i c:d�rn r l 1. Lh Lt. IJUKLAU P.3 the City has improperly reduced TC'I's regulated revenues by setting its rates for converter boxes and remote controls below the levels permitted under the benchmark regimm and has imposed a refund liability that is greater than the level allowed under our rules. TCI argues that it should be permitted to offset refund liability for basic rates with its undercharges in equipment rates. On September 27, 1994, the City filed a Response to Commission to reject TCTs appeal and to allow the City's RateoOrder tAppeal., go into effecter unchanged. Specifically, the City argues that the permitted rates for equipment, We Form 393 TCI filed on December 27, 1993, q �pment, derived from greatly exceed both what it was then charging for cable service in the City, and what it was charging in surrounding franchises. Further, the City argues that TCI failed to demonstrate that its December 27, 1993 equipment rates were justified, despite being given opportunity to do so. TCI filed a Reply to the City's Response on October 7, 1994, but did not address this second argument. IL DISCUSSION 3. Under our rules, rate orders made by local franchising authorities may be appealed to the Commission.: In ruling on appeals of local rate orders, the Commission will not conduct a de novo review, but instead will sustain the franchising authority's decision as long as there is a reasonable basis for that decision.' Therefore, the Commission will reverse a franchising authority's derision only if it determines that the franchising authority acted unreasonably in applying the Commission's rules in rendering its Iocal rate order.5 If the Commission reverses a franchising authority's decision, it will not substitute its own decision but instead will remand the issue to the franchising authority with instructions to resolve the case consistent with the Commission's decision on appeal,6 4. FCC Form 393 is the official form used by regulators to determine whether an operator's regulated rates far programming, equipment and installations were reasonable City set TCI's rates for remote controls and converter boxes at $ 0.10, $ 0.60, and $ 1,08 per month, respectively, See 47 C.F.R. § 76.944, 4 See Report and Order and Further Notice of Proposed Rulemaking in MM Docket 92- 266, 8 FCC Rod 5631, 5731(released May 3, 1993) ("Report and Order"); Third Order on Reconsideration in MM Docket 92-266, FCC 94-40, slip op. at % 81 (released March 30, 1994) ("Third Recon, Order`), 5 Id 6 Id. 1c•4rJrI t r�.�. L4-DLL t3UrCtHU Imo.4 during the time period from September 1, 1.993 until May 14, 1994.7 Form 393 is divided into three'separate, but interrelated parts. In Part II, the operator calculates its maximum permitted programming rates, while in Part III, the operator calculates its maximum permitted equipment and installation rates, Part I is a cover sheet that lists the various programming, equipment and installation rates that have been calculated in Parts II and III and compares them to the rates the operator has actually charged during the period of review. 5, The operator's maximum permitted rates are derived by completing Parts It and DI of the Form 393, pursuant to which the operator calculates the actual aggregate revenues collected by the operator for regulated programming, equipment and installation, as of the initial date of regulation ("current rate") or as of September 30, 1992.8 After calculating actual aggregate revenues, the operator converts those revenues to a per-channel rate, and then compares the per-channel figures to the applicable benchmark rate. If an operator's current per-channel rate is below the applicable benchmark rate, then the operator's rate is deemed reasonable, but it must remain at its current level, If its current per-channel rate exceeds the benchmark rate, theoperator must them compare its September 30, 1992 per-channel rate to the applicable benchmark rate. If its September 30, 1992 per-channel rate is above the benchmark rate, it must reduce this rate to the benchmark rate or by 10%, whichever reduction is less. The adjusted rate will be its maximum permitted rate for programming. Maximum permitted rates for equipment and installation are based on actual cost and are calculated in Part III of'the.Form 393. Equipment rates are derived from capital and maintenance costs per unit of equipment. Installation rates are derived from calculation of an hourly service charge and application of that charge to different types of installations. Under our regulations, the maximum permitted rates are deemed to be reasonable, as required by the 1992 Cable Act.9 Requiring cable operators to set all or some of their rates for programming, equipment or installation below their maximum permitted levelswould force them to charge rates at levels below those specifically allowed under our rules. ° 7 To the extent that an operator has sought to take advantage of the refund deferral period available under the Second Order on Reconsideration, Fourth Report an Order, and Fath Notice of Proposed Rulemaking in MM Docket 92-266, 9 FCC Red 4119, 41834185 (1994), the maximum permitted rates determined under Form 393 may also apply from May 15, 1994 until the datethat the operator implemented its new rates, as determined under the Form 1200 series. 8 An operator must calculate its rate in effect.on September 30, 1992, only if its current rate is above the benchmark rate. If an operator's current rate is at or below the benchmark rate, it is not required to calculate its September 30, 1992 per-channel rate. 9 See Communications Act, § 623(b), 47 U.S.C. § 543(b), 1° If a franchising authority required an operator to set its rates for equipment and installations below their maximum permitted levels, the operator could, in effect, be forced to provide equipment and installations at levels below actual cost, 3 d ` 6. If a franchising authority does not dispute the bases for the figures presented in a cable operator's Form 393 or has not discovered any mathematical errors in the form, the franchising authority should then approve the operator's maximum permitted rates, as derived by the form. A franchising authority should not require the operator to set a particular rate for programming, equipment or installations at any rate less than its maximum permitted rate, even if its current or actual rate is below its maximum permitted rate. Instead, the franchising authority should elbow the operator to charge up to its maximum permitted rates, as derived by Form 393.11 7on aprospective�Asetting the various regulated rates that an operator is permitted to charge basis, a franchising authority should then determine if the operator is liable for any subscriber refunds. A refund liability can be imposed when an operator's actual charges exceed maximum permitted levels during the applicable period of review.12 If an operator's aggregate revenues computed from its actual rates exceed its revenues computed from its permitted rates during the period of review, the operator must refund the difference to subscribers.13 If the operator's aggregate revenues computed from its permitted rates exceeded its aggregate revenues computed from its actual rates, the operator will not be required to issue any refunds for that period of review. In this proceeding, any refunds to be paid by TCI should be calculated based on this method, 8. While the Commission will sustain the decisions of franchising authorities if there is a reasonable basis for doing so, we expect franchising authorities to adhere to the mathematical principles underlying the benchmark methodology, particularly when calculating an operator's refund liability.'¢ Thus, the City must offset or reduce any refunds it may order by the difference between the actual equipment rates that TCI charged and the maximum permitted rates that it could have charged during the applicable period of review.15 In this proceeding, the.City states that TCI failed to justify the equipment rates it derived in its Form 393, despite being provided the opportunity to do so. However, the City has submitted no 11 TCI Cablevison of North Central Kentucky, Inc., DA 94-1479 (Dec. 14, 1994). An operator is not required, however, to raise its rates to the maximum permitted level, An operator may voluntarily choose to charge Iess than the maximum permitted rate. is See 47 C.F.R. § 76.942. 23 See Third Recon, Order at 'Ai' 103-104 ("Although maximum permitted rates are always determined on.an unbundledbasis, i.e,, separately.for refund liability may stem from bundled rates. �e Y� program service and equipment, calculated based on the difference between old bundled bates and the um refundde that the liability w should be unbundled program service charge(s) and the new unbundled equipment charge(s)."), 14 See Report and Order at 5731; Third Recon. Order at i[ 81. 's See Third Recon. Order at 9N 103-104. 4 evidence in support of its position that TCI has not justified its rates.'6 The data TO has submitted and the computations TCI has made in its Form 393 are not challenged. The City claims only that the resulting rates.are "much greater than other [franchisees' and competitors'] rates as to raise a presumption of invalidity."" Without further explanation and support for its position, we cannot conclude that the decision of the.City is reasonable in rejecting TCI's maximum permitted rates for converter boxes and remote controls, as those rates are calculated in TCI's Form 393. We are remanding this case to the City so that it can enter a ruling consistent with these findings. 9. Accordingly, IT IS ORDERED that TCI of Seattle, Inc.'s appeal of The City of Renton's local Rate Order, regardingthe issue of TCI Cablevision's permitted charges for converter boxes.and remote controls and related refunds is REMANDED.to the local franchising authority for resolution in accordance with the terms of this Order. 10. This action is taken by the Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's rules. 47 C,F.R. § 0,321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau 16 We note also that the City has accepted all of TCI's other maximum permitted rate calculations, The City appears to be of the view that those calculations are sufficiently justified but is of the opposite view with respect to the maximum permitted equipment rates at issue where the latter are higher than TCI's actual rates. 17 See City's Response to Appeal at 6. 5 ( 2 en� We're taking television Oq/-� into tomorrow K%' TCI Cablevision of Washington, Inc. SM • i'i:iN I'UN January 3. 1995 Earl Clymer, Mayor And Members of the City Council City of Renton 200 Mill Avenue S Renton, WA 98055 • Dear Mr. Clymer and Members of the City Council: The purpose of this letter is to inform you of changes to some of TCI's premium service rates and packages. We are pleased to announce the launch of new premium channel packages that include STARZ!, Encore and now the Cable Guide. The new premium channel packages are as follows: MONTHLY RATE STARZ!/Encore/Cable Guide $ 5.95 1-premium channel/STARZ!/Encore/Cable Guide $14.95 2-premium channels/STARZ!/Encore/Cable Guide $19.95 3-premium channels/STARZ!/Encore/Cable Guide $23.95 4-premium channels/STARZ!/Encore/Cable Guide $28.95 5-premium channels/STARZ!/Encore/Cable Guide $33.95 These new premium channel packages are available with or without a Cable Guide at the same rate. Simply put, if customers choose a package with a Cable Guide, it will be included at no extra cost. Customers will see either an increase or a decrease in their monthly premium package rates depending upon the services they subscribe to. Additionally, the rates for The Disney Channel a la carte subscriptions will increase $0.60 and the rates for Cinemax a la carte,subscriptions will increase $0.40. • The new Disney and Cinemax a la carte rates are as follows: MONTHLY RATE Cinemax $13.00 The Disney Channel $13.00 South Seattle Office 15241 Pacific Hwy.S. Seattle,WA 98188 (206)433-3434 FAX(206)433-5103 An Equal Opportunity Employer TCI pays programming fees for each of the channels we provide to our customers' homes. The cost of bringing much of the movie product we carry has increased as Hollywood continues to produce high cost films. Much of the costs associated with these price changes go directly to increased programming costs. While no one likes to see prices increase, TCI still believes that our premium services are a great entertainment value. Furthermore, customers will still enjoy a significant savings on premium services when two or more premium services are ordered together. The changes in our premium service rates will take effect with all bills sent out on or after February 3, 1995, for customers who currently subscribe to the services listed above. We have already started offering the new premium service packages to new customers. To comply with Federal customer notice requirements, TCI Cablevision of Washington will send 30-days written notification of the changes to all of our affected customers. These notices will reach our customers homes by January 3,. 1995. • The above rates do not include any applicable state taxes, local taxes or franchise fees.. Should you have any question or concerns, please give me a call. Sincerely, Gary A. H. enson General Manager cc: Lon Hurd A4,111;11m® . C E RTIFICAT )F INSURANCE DATE(MM/DD/YY) PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INN F21HJ ONLY AND CONFERS NO RIGHTS UPON THE C STI A E DESPOT NELSON & COMPANY HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURANCE BROKERS, INC. COMPA l gq�EQ�pI C AVERAGE 6312 S FIDDLER'S GREEN CIR. #435N i fY CJF—f�EIN I ON COMPANY ENGLEWOOD, CO 80111 A AGRICULTURAL INSURANCE COMPANY INSURED COMPANY DIEL 2 8 1994 TCI OF SEATTLE, INC. B COMPANY r�� 5619 DTC PARKWAY C CITY CL_aRK'S OFFICE ENGLEWOOD, CO 80111 COMPANY L • D QNNI� S - . THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED,NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE(MM/DD/YY) DATE(MM/DD/YY) GENERAL LIABILITY GENERAL AGGREGATE $ COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OP AGG $ 1 000 000 A X CLAIMS MADE �XJOCCUR UMB 8797649 01-01-95 01-01-96 PERSONAL&ADV INJURY $ OWNER'S&CONT PROT EACH OCCURRENCE $ 1, 0007000 1FIRE DAMAGE(Any one fire) $ 0007000 MED EXP(Any one person) $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO. - ALL,OWNED AUTOS, - `•• BODILY INJURY (Per person) SCHEDULED AUTOS HIRED AUTOS;t , -i. BODILY INJURY t c (Per accident) NON-OWNED AUTOS ,V? :_.1^ ':...'�_; r', .i �.^r_, I- .,....-. . .'....�i._-' PROPERTY DAMAGE $;. GARAGE LIABILITY' - : _ C: ' , AUTO ONLY-EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM $ WORKERS COMPENSATION AND STATUTORY LIMITS EMPLOYERS'LIABILITY - EACH ACCIDENT $ THE PROPRIETOR/ INCL DISEASE-POLICY LIMIT $ PARTNERS/EXECUTIVE OFFICERS ARE: EXCL DISEASE-EACH EMPLOYEE $ OTHER DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS RENTON, WA FRANCHISE AGREEMENT CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED ON THE GENERAL LIAB. POLICY ABOVE, IF REQUIRED BY WRITTEN CONTRACT. RE: ORDINANC_E_#x41.3 CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF RENTON EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 200 MILL AVENUE SOUTH 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, RENTON, WA 98055 BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE d /2, / _1tet/1.4.4‹, ATTN: CITY CLERK ACORD 25-S(3/93) T_.—MICHAEL-01—01-CONN-ELL — A 9BgRA�IPON 1993 91/1/4.- CITY OF r►marTQN ®U 1 6 999 Golden View Apartment 3 430 Mill Avenue South CITY CLERK'S OFFICE Renton, Washington 98055 Tuesday, 15 November 1994 Mr. Gary A. Hokinson, General Manager TCI Cablevision of Washington, Inc. 15241 Pacific Highway South Seattle, WA 98188 Subject: TCI Cablevision Right of Entry Agreement Reference: (a) TCI Cablevision letter to Sandford Webb dated 20 October 1994 by Dinah L Bussard, Commercial Accounts Executive (b) . Renton City Council Minutes for 11 April 1994, PUBLIC HEARING, TCI Cable Rates, Audience coinment (c), TCI Cablevision letter to Sandford Webb dated 16 May 1994 by Dinah L Bussard, Commercial Accounts Executive,RE: Right of Entry Agreement Renewal for 430 Mill S in Renton TCI's reference (a) request for execution of the enclosed right of entry agreements has been received. Presumably, and without checking verbatim, the agreements are identical to those received with reference (c). • My response.to reference (c) was provided at a Renton City Council Public Hearing on TCI cable rates and was referred to in reference (b). As you may recall, I mentioned some or all of the following as reasons for my.not feeling sufficiently comfortable to enter into such an agreement with TCI. • TCI's insistence upon accomplishing cable installations at the lowest possible cost, regardless of the adverse effect upon property structures. Examples include wrapping wires completely around a building, thus degrading appearance and making painting difficult: penetrating front walls of structures, barely missing 240 VAC heater wires, thus degrading appearance and compromising safety; and leaving internal-wall wire entry-holes uncovered or providing 'loose covers not attached to the wall. A neater job requiring shorter lengths of hidden wire could be accomplished in attics and crawl spaces. • The company's absolute refusal to contact the property owner regarding cable installations, which has resulted in the.above at all our properties. • TCI personnel using a customer's garage as a lavatory. • TCI's failure to meet a manager's ancient commitment to move an inside service to the outside. • TCI personnel detaching equipment, initially neatly installed, and leaving it dangling, instead of reattaching it after several requests. To these can be added the failure of the TCI General Manager to contact this customer after his review of the above and his return from out-of-town as he offered to do after the meeting on 11 April 1994. ' Questions we had at the time of the initial [reference.(c)] request included - Section 3. What is "adequate space and electricity"? Also, a key was originally provided for. use by TCI personnel, but was retrieved after the urination incident. No Webb to TCI General Manager dated 15 Nov. 1994 RIGHT OF ENTRY AGREEMENT Page 2 of 2 key will be provided in the future; but we are on-site much of the time and an appointment can be made for entry. No key would be required if TCI had met its commitment to relocate the service. Section 5. We have lived all these years with, I believe, the "INDIVIDUAL RATE ACCOUNT". A superseding fifteen year contract is not needed to continue that relationship. Section 9. In whose judgment do abandoned facilities "not interfere with the use and occupancy of the PROPERTY"? This would not be a problem if TCI had relocated its equipment to the outside as Randy Hiatt committed to do years ago, and your hanging box even now interferes with occupancy of our garage. If the latter gets damaged, I • suppose you will expect us to pay for its repair or replacement: We will not! Section 10. While we would be stuck to the agreement for 15 years, TCI "may terminate the Agreement with thirty (30) days notice ... ". TCI has rendered our rights to our properties null and void by contracting with tenants when our rental agreements specifically preclude cable installations without owner's written permission, as well as both oral and written owner notifications to TCI over many years. For the second time, we do not intend to enter into any such agreement with TCI. Neither will we spend money for legal review of subject agreement, which would be necessary if we intended to sign it. TCI has not requested agreements be signed for our other rental properties, where TCI continues to violate our rights and deals directly with tenants of those properties. Quoting from reference (b), "Mr. Hokinson said the agreement referred to by Mr. Webb includes the right-of-entry provision because some owners of rental units do not live on-site. He added that TCI will individually contact those who live in single family residences, ... ". Your statement appears to imply that you think that only multifamily residences are rental units. May I assure you that many single family homes are rented, and that the owner may live as close as next door (as we once did) or all the way across the country. At any rate, by your own quoted admission, TCI needs no signed written agreement by us for Golden View Apartments, because we live on-site and can be contacted as easily as the owner of any single-family residence. A copy of this letter is being provided to Lon Hurd for his and the City's information. Sincerely, p� Sanford E. Webb cc: Mr. Lon Hurd, 3-H Cable Communications Consultant, c/o.Renton City Clerk /&/AJ M- CITY OF REN1 UN 1 SEP 2 7 1994 2 REG'NED CITY CLERK'S OFFICE 3 • 4 Before 5 THE FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 6 7 In the Matter of ) 8 ) TCI of Seattle, Inc. ) 9 ) File No. 10 Order to Set Basic Service and ) Equipment Rates in the City of ) 11 Renton, Washington WA0068 ) 12 ) 13 RESPONSE TO APPEAL 14 The City of Renton, Washington ( "City" ) , by its City 15 Attorney' s Office, hereby responds to the appeal filed by 16 TCI of Seattle, Inc . ( "TCI-S" ) from a rate resolution of the 17 City entered on August 15, 1994, attached as Exhibit A. 18 I. FACTS 19 TCI-S has prepared three different Form 393 20 calculations . Those forms are as follows : 21 A. September 1, 1993 : TCI-S performed a Form 393 22 calculation and established its own rates pursuant to the 23 "maximum permitted" level indicated by Form 393 . While the 24 rate setting by TCI-S may have been required by FCC 25 regulations, this rate setting did not involve the City of 26 Renton. S 27 28 WARREN, KELLOGG,BARBER, DEAN&FONTES,P.S. RESPONSE TO APPEAL - 1 ATTORNEYS AT LAW POST OFFICE BOX 626 • 100 SOUTH SECOND STREET RENTON,WASHINGTON 98057 (206)255-8678 1 2 B. December 27, 1993 : TCI-S submitted to the City a 3 new Form 393 which was in variance with its prior Form 393 . 4 A copy of that filing is attached as Exhibit B. This 5 amended or new Form 393 significantly increased the "maximum 6 permitted" rate for equipment and installation. The City of 7 Renton analyzed the proposal for a higher rate for equipment 8 and installation and compared the requested rate with TCI g rates for adjoining cities and other cable providers in the 10 area. That comparison is attached hereto as Exhibit C. The 11 City found that the proposed rate was much higher than the 12 rates for surrounding communities and by other providers in 13 the same general area. See Exhibit D. For example, the 14 monthly charge for a standard converter are as follows : 15 16 In the City previously: 60 cents per month 17 Surrounding cities : 57 - 64 cents per month 18 Viacom franchises (all but one) : 37 cents per month 19 TCI-S Proposed New Rate: $1 . 12 per month 20 TCI-S 9-6-94 Submittal : 73 cents per month 21 22 However, the requested "maximum permitted" rate for TCI 23 for the City was $1 . 12 per month, an increase of eighty- 24 seven percent over their prior rate and markedly higher than 25 any other rate in the surrounding TCI franchises or that 26 charged by Viacom. The City then determined that the 27 requested rate was unreasonable and that the actual rate for 28 equipment previously charged of sixty cents per month was WARREN, KELLOGG,BARBER, DEAN&FONTES,P.S. RESPONSE TO APPEAL - 2 ATTORNEYS AT LAW POST OFFICE BOX 626 • [00 SOUTH SECOND STREET RENTON,WASHINGTON 98057 (206)255-8678 1 2 within the FCC benchmark guidelines and the "permitted 3 amount" requested by TCI-S was not accurate. C. September 6, 1994 : TCI-S filed yet another Form 5 393 with the City. This Form 393 proposed substantially 6 reduced equipment and installation rates from that of the 7 December 27, 1993 filing and substantially less than the 8 amounts now requested by TCI-S in this proceeding. The 9 City' s comparison of the rates between the September 6, 1994 10 filing and the December 27, 1993 filing is attached hereto 11 as Exhibit E. Again, focusing on the standard converter, 12 TCI-S has dropped its initial request for the "maximum 13 permitted" rate from $1 . 12 to seventy-three cents per month. 14 15 II. AUTHORITY 16 The City has been provided with a copy of the appeal 17 document, but nothing that would be termed a motion for a 18 stay of its rate resolution. Cases cited in the appeal 19 would imply that a stay has been requested. If so, a stay 20 is not authorized under the facts in this case. 21 The legal standard for a stay has been enunciated 22 several times by this tribunal . See for example TCI 23 Cablevision of St. Louis, Inc. DA 94-424 (Rel . April 29, 24 1994) where it states : 25 "The Commission evaluates petitions for stay under 26 well-settled principles . To support a stay, petitioners must demonstrate: ( 1 ) that they are 27 likely to prevail on the merits; (2 ) that they will suffer irreparable harm if a stay is not 28 granted; ( 3) that other interested parties will WARREN,KELLOGG,BARBER, DEAN&FONTES,P.S. RESPONSE TO APPEAL - 3 ATTORNEYS AT LAW POST OFFICE BOX 626 • 100 SOUTH SECOND STREET RENTON,WASHINGTON 98057 (206)256-8678 1 not be harmed if the stay is granted; and (4) that 2 the public interest favors grant of a stay. " 3 Based upon this standard, TCI-S cannot demonstrate that 4 it is likely to prevail on the merits . Rather, the opposite 5 is true. TCI-S has overstated its equipment rates and has, 6 in fact, made a later filing that would significantly reduce 7 the rates that it is now relying upon in this appeal . See 8 also Sammons Communications, Inc. DA 94-825 (Rel. July 27, 9 1994) wherein it states : 10 "We believe the Commission should not conduct de novo review of local rate decisions and that the 11 standard of review should be whether there is a reasonable basis for the franchising authority' s 12 decision. The Commission will defer to the judgment of the local franchising authority 13 provided that there is a rational basis for the decision. " 14 As demonstrated in this answer, the great weight of the 15 factual evidence which shows that TCI-S has overstated its 16 equipment rental rates, and because of two contrary filings 17 by TCI-S and the prevailing market in the area, the City' s 18 decision is not only rational and reasonable but, as a 19 practical matter, the only appropriate decision the City 20 could make if it was exercising independent decision making 21 authority. 22 III . ARGUMENT 23 A. There has been no mistake made by the City. The 24 pleadings of TCI-S indicate. that there has been a mistake 25 made. However, there is no claim that the mistake was that 26 of the City. Rather, faced with the facts detailed 27 previously, the City was able to determine that the rate 28 WARREN, KELLOGG,BARBER, DEAN&FONTES,P.S. RESPONSE TO APPEAL - 4 ATTORNEYS AT LAW POST OFFICE BOX 626 • 100 SOUTH SECOND STREET RENTON,WASHINGTON 98057 (206)255-8678 1 2 increase requested by TCI-S was disproportionate to that of 3 its other surrounding franchises and disproportionate to 4 that of a competitor in the same general geographical 5 region. The later filing of TCI-S has simply proven the 6 point to the City. The new requested 9-6-94 "maximum 7 permitted" rate is much closer to that approved by the City 8 by its rate resolution, now being appealed, than the 9 requested 12-29-93 "maximum permitted" rate, upon which TCI- 10 S now appeals . If there has been a mistake made, it has 11 been made by TCI-S and TCI-S is apparently still relying 12 upon that mistake to request the rate resolution be set 13 aside. 14 B. The City established the equipment and 15 installation rate based upon TCI-S ' s voluntary rate 16 established after its September 1, 1993 Form 393 . As 17 discussed above, TCI-S prepared a Form 393 dated September 18 1, 1993 . Based upon that form TCI-S established rates for 19 program services and equipment and installation rates . When 20 the modified Form 393 was filed on December 27, 1993 showing 21 large increases in the "maximum permitted" rates for , 22 equipment and installation, and the City determined that 23 they were disproportionate to that charged by TCI-S in other 24 franchises and by TCI-S ' s competitors, the City chose to 25 assume the validity of TCI-S ' s prior Form 393 . 26 However, the City also provided TCI-S with an 27 opportunity to prove to the City that the earlier Form 393 28 and rates were in error and that the City should rely upon WARREN,KELLOGG,BARBER,. DEAN&FONTES,P.S. RESPONSE TO APPEAL - 5 ATTORNEYS AT LAW POST OFFICE BOX 626 • 100 SOUTH SECOND STREET RENTON.WASHINGTON 98057 (206)266-8678 1 2 the December 27, 1993 Form 393 and the requested rates . 3 TCI-S has never provided proof to the City of the validity 4 of its December 27 , 1993 figures, despite the opportunity to 5 do so and requests to do so by the City of Renton. In 6 setting its rate resolution the City simply chose to not 7 permit TCI-S to radically alter its prior rates for 8 equipment and installation from that TCI-S voluntarily 9 imposed previously pursuant to a Form 393 calculation until 10 TCI-S proved that its much higher figures were justified. 11 C. The position of TCI-S is inconsistent with its 12 other submittals . By this appeal, TCI-S seeks to enforce a 13 rate for equipment and installation which is dramatically 14 higher than the prior rate that TCI-S voluntarily 15 established, dramatically higher than its rates with other 16 franchises, and dramatically higher than its competitors ' 17 rates . The rate which TCI-S attempts to enforce, by this 18 appeal, is also significantly higher than its own later 19 submittals regarding rates for equipment and installation. 20 The position of TCI-S is inconsistent with its own actions 21 in establishing its rates and its own rate calculations of 22 both September 1, 1993 and September 6, 1994 . The rates for 23 the equipment and service have not been justified and are so 24 much greater than other rates as to raise a presumption of 25 invalidity. 26 While these rates are questionable, it is clear that 27 TCI-S had a rate for basic service under its 12-29-93 Form 28 393 that was above the "maximum permitted" levels . The sole WARREN, KELLOGG,BARBER, DEAN&FONTES,P.S. RESPONSE TO APPEAL - 6 ATTORNEYS AT LAW POST OFFICE BOX 626 • 100 SOUTH SECOND STREET RENTON,WASHINGTON 98067 (206)255-8678 1 2 question, then, reduces to whether or not the City is 3 compelled to allow TCI-S to offset its admittedly excessive 4 basic service levels with a very questionable set of rates 5 for equipment and services . The City believes that the 6 question is answered in the City' s favor by the September 6, 7 1994 filing of Form 393 which shows dramatically lower rates 8 for equipment and services much closer to those permitted by 9 City resolution than those requested by TCI-S. 10 D. The City' s approval of basic cable services does 11 not reduce permitted equipment rates improperly and does not 12 create a refund liability in excess of the maximum levels 13 permitted by commission regulations . The City acknowledges 14 that the Commission has issued certain stay orders . See 15 Paragon Cable, DA 94-861 (August 9 , 1994) , and the cases 16 cited therein. However, those stays were issued upon the 17 premise that the franchising authority has required refunds 18 in excess of the "maximum levels" permitted under rate 19 regulations . In the present case, TCI-S has not justified 20 the higher rate for equipment that it is claiming and, in 21 fact, its last submittal of September 6, 1994 would place 22 the equipment rate at or very near to that approved by the 23 City. Therefore, the City' s resolution would require TCI-S 24 to refund the excess in its basic cable rate above the 25 "maximum permitted" level while allowing TCI-S an 26 appropriate "maximum permitted" level of charges for 27 equipment. This decision was based on the preponderance of 28 the information provided to the City by TCI-S as weighed WARREN,KELLOGG,BARBER, DEAN&FOMITES,P.S. RESPONSE TO APPEAL - 7 ATTORNEYS AT LAW POST OFFICE BOX 626 • 100 SOUTH SECOND STREET RENTON,WASHINGTON 98057 (206)266-8678 v � 1 2 against the equipment rates by TCI-S for adjoining cities 3 and as contrasted with the equipment rates for a local 4 competitor. Put another way, TCI-S has not been able to 5 justify its higher equipment rates upon which it now relies 6 in making this appeal . Rather, by its course of conduct in 7 other locales, and the preponderance of the evidence in 8 contrary filings with the City has proven that the lower 9 equipment rates approved in the City resolution are 10 appropriate and are the "maximum permitted" under federal 11 regulations . 12 DATED THIS a-"? day of September, 1994 . 13 Res full submitted, 14 15 awrence J. ar-r-en, WSBA #5853 of Warren, Kellogg, Barber, 16 Dean & Fontes, P. S. , Attorney for City of Renton 17 3 . 18 :26 :as . 18 19 20 21 22 23 24 25 26 27 28 WARREN, KELLOGG,BARBER, DEAN&FONTES,P.S. RESPONSE TO APPEAL - 8 ATTORNEYS AT LAW POST OFFICE BOX 626 • 100 SOUTH SECOND STREET RENTON,WASHINGTON 98057 (206)266-8678 Y , Before FEDERAL COMMUNICATIONS COMMISSION Washington, D.0 20554 In the Matter of ) ) CITY OF RENTON TCI of Seattle, Inc. ) File No. ) SEP 19 1994 Order to Set Basic Service and ) RECEIVEu Equipment Rates in the City of Renton, WA ) CITY CLERK'S OFFICE WA0068 ) • r APPEAL TCI of Seattle, Inc. ("TCI-S"), by its attorneys, hereby appeals the rate order (the "Order") adopted by the City of Renton, Washington (the "City") on August 15, 1994! The City's Order requires TCI to lower rates and issue refunds without "balancing" past overcharges with past undercharges. As such, the Order is inconsistent with FCC rules and precedent. The Order must be rejected, because it ignores key mathematical principles underlying benchmark regulation. L BACKGROUND Consistent with FCC regulations, TCI-S reset its rates on September 1, 1993, based on a preliminary Form 393 calculation completed during the preceding month. The new rates were set at the "maximum permitted" level indicated by the preliminary Form 393. TCI-S did its best to complete the Form 393 and set its rates correctly. Subsequent regulatory changes and internal reviews, however, resulted in changes to TCI-S's initial calculations. 1 A copy of the contested Order is attached hereto as Exhibit A. 16880.1 S ' When TCI-S submitted its "amended" Form 393 to the City of Renton for the review process, that Form showed a variation between TCI-S's existing rates (established on September 1, 1993) and its "maximum permitted" rates? The amended Form 393 calculations increased the "permitted" rate for equipment and installation.3 Because the FCC's "benchmark" regulations establish an inverse relationship between equipment rates and program service rates,' the increase in "permitted" equipment rates, produced a decrease in the "maximum permitted" rate for program services. The contested Order adopts the "maximum permitted" rate for the basic service tier as set forth in TCI-S's submitted Form 393. But it does not consistently follow that approach. On the equipment side, the Order adopts the "existing" rates, which are below the "permitted" figures indicated on the submitted Form 393. The result is a sub-benchmark revenue level.' At issue here is whether TCI-S should be allowed to balance past overcharges for basic service with past undercharges for equipment.' 2 A copy of the Form 393 is attached hereto as Exhibit B. 3 See Exhibit B. Information submitted on that Form has also been copied onto an "official" Form 393, attached hereto as Exhibit C. ' See Form 393, Worksheet 3, "Removal of Equipment and Installation Costs." 5 TCI-S has, in fact, made further revisions to its Form 393 (which lower the overall revenue level). The newly revised version has been delivered to the City, but has not yet been officially accepted or acted upon. For purposes of this Appeal, TCI-S is asking only that the City respect the balancing inherent to the Form 393 submitted in December, upon which the City based the contested Order. TCI is prepared to make appropriate rate adjustments if the City subsequently adopts the newly revised Form 393. 6 As past of the 1200/1205 process, TCI-S has now increased its equipment rates to properly reflect "actual costs" on a going-forward basis. 16880.1 2 i IL THE ORDERS FAILURE TO ALLOW RATE COMPONENT BALANCING IS INCONSISTENT WITH THE RX"S BENCHMARK REGULATIONS The Order's failure to allow a balancing of past overcharges and undercharges violates the FCC's benchmark regime. The Commission recently made it clear that rate policies may not "result in an operator being required to make a rate reduction that is greater than the maximum reduction required under application of the benchmark approach." Third Order on Reconsideration, MM Docket Nos. 92-266, 92-262, at ¶ 104 (Mar. 30, 1994). In mandating a balancing of all rate components, the Commission explained: The refund liability should be calculated based on the difference between the old bundled rates and the sum of the new unbundled program service charge(s)and the new unbundled equipment charge(s). The intent of the refund mechanism is to place subscribers in the same position they would be had they been subject to "reasonable" rates. To not allow cable operators to factor in equipment charges would result in an operator being required to make a rate reduction that is greater than the maximum reduction required under application of the benchmark approach. Id.' Section 76.942 of the Commission's rules expressly incorporates this balancing approach. It provides: Where an operator was charging separately for program services and equipment but the rates were not in compliance with the Commission's rules, the operator's refund liability shall be based on the difference between the sum of the old charges and the sum of the new, unbundled program service and equipment charges. 47 C.F.R § 76.942. The comparison of rate suns mandated by Section 76.942 necessarily provides the "balancing" or "offsetting" TCI-S is requesting in this case. ' See also Letter from Meredith Jones to Small Cable Business Association, DA 94-846 (August 3, 1994). 16880.1 3 The Commission has addressed the underlying issue here in a series of recent stay orders.' In issuing a stay in Paragon Cable, DA 94-861 (August 9, 1994), the Commission reiterated its commitment to the balancing approach: As we explained in TCI Cablevision of St. Louis, Inc. . . . and Sammons Communications, Inc. . . . , if a franchising authority approves the cable operator's proposed rates for basic cable service while reducing permitted equipment rates, without allowing an offsetting increase in the tier charge for basic service, the franchising authority is requiring refunds of liability in excess of the maximum levels permitted by Commission regulations. We emphasized our expectation that franchising authorities adhere strictly to the mathematical principles underlying the benchmark methodology, particularly when calculating an operator refund liability. Id. at ¶ 6. It must be recognized that this is not a case where the Company voluntarily set its overall rate level below the benchmark level prior to the initiation of cable rate regulation. Rather, it is a case where, in the process of restructuring and reducing existing rates, the operator"mistakenly" set some regulated rate components(i.e.,equipment)below the"maximum permitted" level and another component (i.e., program service) too high.' The FCC, of course, encouraged cable operators to restructure regulated rates prior to September 1, 1993. Its rules, reports, and recent stay orders properly recognize that operators who made good faith efforts to comply should not be punished for "revenue neutral" errors in setting various rate components. A great deal of uncertainty still surrounds benchmark regulation, but the Commission has been clear and consistent on this point. The City of Renton cannot apply FCC regulations so as to mandate sub-benchmark rates. 8 See. e.g., TCI Cablevision of St. Louis, Inc., DA 94-424 (released April 29, 1994) (concluding that the City "fundamentally misapplied [the FCC's] rules by ordering a refund to subscribers in excess of the maximum liability that may be assessed.") 9 Once TCI-I restructured its rates last September, it seemed logical to defer additional rate adjustments (reflecting FCC clarifications and internal recalculations) until the regulatory review was completed. 16880.1 4 CONCLUSION For the foregoing reasons, TCI-S respectfully requests that the Commission reverse those portions of the contested Order which deny TCI-S the ability to balance past overcharges for the basic tier with past undercharges for equipment. Respectfully submitted, TCI OF /Ill 0,....• . 1 i A \ /O By: 'dile, Steven J. 'pa COLE, RA I IO& I ' • VERMAN 1919 Penns,1 Avenue, 1:W. Suite 200 \ 1 Washington, II ` 101 (202) 659-9750 Its Attorneys September 14, 1994 16880.1 5 September 26, 1994 Renton City Council Minut Page 401 MOVED BY STREDICKE, SECONDED BY EDWARDS, COUNCIL REFER THE WINSPER AREA ANNEXATION AND ZONING ORDINANCES TO THE CITY CLERK TO HOLD UNTIL THE APPEAL PERIOD ON THIS MATTER HAS EXPIRED. CARRIED. The following resolutions were presented for reading and adoption: Resolution #3090 A resolution was read requesting State and Federal legislation to clarify the Personnel: Self-Insurance authority of local governments to exercise the option of self-funding health for Employee Health care benefits. MOVED BY TANNER, SECONDED BY EDWARDS, Benefits COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3091 A resolution was read authorizing the Mayor and City Clerk to execute a CAG: 94-, Reimbursement Memorandum of Understanding with the Seattle-King County Department of for Local Hazardous Waste Public Health regarding hazardous waste plan implementation. MOVED BY Program, King County SCHLITZER, SECONDED BY EDWARDS, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. NEW BUSINESS Referring to a notice that the Board of Public Works will hear a request from WSDOT: I-405 Project and the Washington State Department of Transportation (WSDOT) for a 38-day Noise Variance Request noise variance for night work on I-405 from NE Park Drive to the northern City limits, Councilmember Keolker-Wheeler was concerned that the survelliance control and drive information system mentioned in the noise variance application from WSDOT might refer to ramp metering, which Council has steadfastly opposed on numerous occasions. King County: Household Mrs. Keolker-Wheeler commented that the Seattle-King County Department Hazardous Waste Program of Public Health has been billing suburban cities for non-billable items related Billing to household hazardous waste programs. Additionally, it appears that some ineligible items such as "tobacco vending" are being billed as basic health services under contracts for public health services. Franchise: TCI Basic City Attorney Warren announced that the City has received an appeal before Cable Rates the Federal Communications Commission (FCC) from TCI regarding TCI's basic cable rates. He suggested that the outcome of such an appeal will likely be a stay of the City's recently adopted resolution on TCI rates. AUDIENCE COMMENT Jerry Woods, 17712 SE Petrovisky Rd., Renton, 98058, stated that Winsper Citizen Comment: Woods - area residents are reluctant to appear before Council in support of the Winsper Annexation, proposed annexation for fear of retaliation from King County Fire District 40. Talbot Hill He noted that the Fire District has expressed opposition to the annexation and may file an appeal of such with the Boundary Review Board. ADJOURNMENT MOVED BY STREDICKE, SECONDED BY TANNER, COUNCIL ADJOURN. CARRIED. Time: 8:50 p.m. • )7) •.� MARILYN' .40 ERSEN, CMC, City Clerk Recorder: Brenda Fritsvold 9/26/94 . September 12, 1994 Renton City Council Minutes Page 376 CAG: 94-101, Highlands City Clerk reports bid opening on 8/29/94 for CAG-94-101, Highlands Library Roof Replacement Library Roof Replacement; eight bids; engineer's estimate $30,000; low bid $36,177.75. Refer to Community Services Committee. CAG: 94-097, Talbot Hill City Clerk reports bid opening on 8/23/94 for CAG-94-097, Talbot Hill Phase Phase I Water Mains I Water Mains Replacement; six bids; engineer's estimate $352,275.40; and Replacement, Gary submitted staff recommendation to award the contract to the low bidder, Gary Merlino Const. Co. Merlino Construction Co., in the amount of $299,681.54. Council concur. CAG: 94-095, Houser Way City Clerk reported bid opening on 8/23/94 for CAG-94-095, Houser Way Pump Station Schedule B, Pump Station Schedule B; five bids; engineer's estimate $685,649.33; and Omega Contractors, Inc. submitted staff recommendation to award the contract to the low bidder, Omega Contractors, Inc., in the amount of $496,298.25. Council concur. Finance: TCI Cable Finance & Information Services Department submitted proposed new TCI Television Basic Rate cable television basic rates for the time period from 9/01/93 to 7/14/94. Schedule Refer to Community Services Committee. Plat: Stratford Heights, Hearing Examiner requested approval of the Stratford Heights Preliminary Preliminary, PP-94-057, Plat, PP-94-057, a 13-lot single family subdivision located in the 3900 block 3900 NE 19th St of NE 19th St. Council concur. Airport: Master Plan Transportation Division submitted proposed Airport Master Plan update Update Process process. Refer to Transportation (Aviation) Committee. Transportation: N 3rd St Transportation Division recommended that Council appove the selection by Liveable Streets Program Metro of the lowest qualified bidder for the Metro/Renton North 3rd Street Project, Metro Liveable Streets Program project. Refer to Transportation Committee. Transportation: N 8th Transportation Division submitted proposed agreement with WSDOT for St/Houser Way RR $118,500 in grant funds for safety improvements to the railroad crossing on N. Crossing Improvements, 8th St. near Houser Way N. The City's share is $1,500. Refer to WSDOT Transportation Committee. CAG: 94-038, LID 337 Wastewater Utility Division submitted CAG-94-038, LID 337 Dayton Avenue Dayton Ave NE Sanitary sanitary sewers project; and requested approval ofthe project, authorization Sewers, Gary Merlino for final pay estimate in the amount of $3,492.68, commencement of 30-day Const. Co. lien period, and release of retained amount of $4,819.07 to Gary Merlino Construction Co., contractor, if all required releases have been obtained. Council concur. MOVED BY STREDICKE, SECONDED BY TANNER, COUNCIL APPROVE THE CONSENT AGENDA AS AMENDED TO REMOVE ITEM 7.j. • CARRIED. Councilman Corman excused himself from the Council Chambers for the next item. CORRESPONDENCE Correspondence was read from Randal and Catherine Corman, 2216 Citizen Comment Corman Harrington P1. NE, Renton, 90856, requesting that Council approve a five- - NE 3rd/Harrington P1 foot dedication of right-of-way to the City along the south side of NE 3rd St. NE Right-of-Way at Harrington Pl. NE to shift emergency access improvements for the Honey Dedication (Honey Creek Creek PUD. MOVED BY EDWARDS, SECONDED BY STREDICKE, PUD) COUNCIL REFER THIS MATTER TO THE TRANSPORATION COMMITTEE. CARRIED. Councilman Corman returned to the Council Chambers. CITY OF RENTON COUNCIL AGENDA BILL AI#: 1. tom•• SUBMITTING DEPT: I FOR AGENDA OF: September 12, 1994 Finance& Information Services � Staff Contact is Phil Jewett AGENDA STATUS: Consent XX SUBJECT:' Public Hearing Cable television basic rate order. Correspondence Ordinance Resolution Old Business EXHIBITS: New Business Cable rate table; draft resolution Executive Session • RECOMMENDED ACTION: I APPROVALS: Refer to Community Services for a recommendation to adopt a I Legal Dept resolution setting basic cable television rates. I Finance I Other FISCAL IMPACT: Expenditure Required... Transfer/Amendment.. . Amount Budgeted Revenue Generated.... • SUMMARY OF ACTION: Council Resolution 3087 on August 15, 1994 set basic cable rates for the time period of September 1, 1993 through July.14, 1994. Subsequently, TCI of Washington has resubmitted new FCC rate forms to the City requesting new rates for this same time period. These new rates are generally substantially less than the old requested rates, and will provide a larger refund to customers for the period in question. These submitted rates are also generally substantially less than TCI's current rates. The attached exhibit shows the new TCI requested rates, plus the existing rate order. It is staff's recommendation to refer this matter to the Community Services Committee, in order to adopt the new rates with a revised rate order resolution. • ag_res2 • 0 INTEROFFICE MEMO DATE: September 8, 1994 TO: Toni Nelson, Chair Community Services Committee Members VIA: V,, Earl Clymer, Mayor FROM: Victoria Runkle, Administrator Finance & Information Services Department I i CtP STAFF CONTACT: Phil Jewett, Information Systems Director SUBJECT: Revised Rate order on basic cable television rates and charges Background On August 15, 1994, the Council adopted Resolution 3087, setting basic cable television rates. TCI of Washington was not happy with the rate order because it lowered basic cable service rates to the FCC limits, but did NOT raise monthly equipment charges up to FCC limits. The City's position was that the equipment rates were already below FCC limits, and did not need adjustment. TCI referred to this approach as 'cherry-picking', but it does appear to be within FCC regulations. Although the effect of this rate order is to create a refund liability for TCI, this is not the main point of their concern (the refund total is about $2 per customer). TCI is,concerned that if this rate order stands, it could create an expensive precedent with other, larger franchises, where the refunds would be much greater. TCI has indicated they may appeal the August 15 rate order, but if they do so and lose (which we believe is likely), that would broadcast this rate order across the country. Issue TCI's response to their dilemma has been to resubmit another set of rates to the City. These rates are all considerably lower than their last rate request, and are for the most part lower than their current rates. It must be noted that these are paper rates only - no customer will ever be billed at these rates. TCI's purpose of the new submission is to produce a refund for customers that is something greater than $2, but which allows the City to accept the rates unchanged, without cherry-picking. TCI is saying, in effect, that they will concede to the City its refund, as long as we do not set a precedent with our method of rate adjustment. • Options The City is free to reject this latest rate request, and stick by the August rate order. If the new refund amount is sufficiently greater than the old refund amount, it may be worth it to the City to accept the new rates. Although the City's position with regard to the FCC regulations is reasonable, there is nothing certain about FCC pronouncements, and there does remain the possibility that the FCC could overturn the rate order, and the City lose its refund. Recommendation At the Community Services Committee meeting on September 13, TCI will be present to make their case for a new rate order. At that time they are expected to provide the new refund amount, and Council can decide at that time if a new rate resolution is in the City's best interest. catvres2 City of Renton Cable Television Rates . ; Actual TCI Rates City Rate New TCI Rate Current TCI Sept 93 - July 94 Resolution Request For Rates August 15 Sept 93 - July 94 For Comparison • Basic Ser (per month) 10.42 10.24 :: : OOk> > < 9.36 Equipment C harges . Standard Converter (per month) .60 60ii!:;7.::::«««: 1.04 Addressable ConverterCP er month) 1.08 1.08 2.14 Remote Control (per month) .10 0 ontro1 �1��'<< «: .1 8 InstallationChar es 4 5 Unwired Home Installation 9. 6 48.8 >><2.:�::: ,'<>>><> 0 ...:..::7..99: :;.:.:>;:: 45.13 Prewired Home Installation 24.78 24.40 >14:OQ': :»'> 22.57 Additional Outlet at Initial Instollati on 8.26 8.13 7.52 Additional Outlet at Separate Installation 24.78 24.40 22.57 Move Outlet 24.78 24.40 i°`:''0` :i:><> 22.57 Up/Downgrade Opt Services (non-addressable) 16.52 16.27 >:<<933 <:i::<: 15.05 Up/Downgrade Optional Services (addressable) 2 00 2.00 >:<Z00> >.:< ,; 2.00 Connect VCR at Initial Installation 8.26 8.13 7.52 SeparateInstallation 16.52 connect VCR at Se ar 16.27 Conn15.05 P .0 Installation 8.26 _ Connect FM at Initial8.13 <«<4 `7»> > 7 ..................... :>::>::>::::»::::»::>::>::>:: Installation 16.52 6. 7 ' Connect FM at Separate 1 2 :»»:>9<> :<>< :><: 15. 5 , 3 0 MX at Initial Installation 8.26 8.13 >`:<><:': 7 2 .:.::::.:::....:..::.::.:.:. Install D �� �..�i .5 Install DMX at Separate Installation 16.52 16.27 ii!9ii33`i:ii:i:i;':ii 15.05 a Installation 5.50 ' ch at Initial 1 5.53 Install A/B Switch ::::>€<:i:i17::€l<i 5.11 Installation 1 2 e arate s 6 5 16.27 A/B Switch at S 15 Install `>«<: 9:�3:`>:�< > .OS • revised 9/8/94 • cablrt2. CITY OF RENTON, WASHINGTON RESOLUTION NO. 3087 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, ESTABLISHING CABLE TELEVISION RATES AND CHARGES. WHEREAS, the City of. Renton is certified by the Federal Communications Commission to regulate and approve various basic cable television rates and charges; and WHEREAS, the City of Rentons authority to regulate and approve basic cable television rates and charges is retroactive to September 1, 1993; and WHEREAS, TCI of Seattle, Inc. is a cable television operator franchised by the City of Renton to operate within the City of Renton; and WHEREAS, TCI of Seattle, Inc. has submitted for the City of Rentons review and approval its regulated rates in effect since September 1, 1993; and WHEREAS, the City of Renton has reviewed the submitted rates and held a public hearing on these rates in accordance with Federal Communications Commission regulations; and WHEREAS, the City of Renton has found some of the existing regulated cable rates and charges to be higher than those permitted by Federal Communications Commission regulations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I . The above recitals arefound to be true and correct in all respects . RESOLUTIONNO. 3087 SECTION II . Retroactively effective from September 1, 1993, regulated basic cable television rates and charges for. City of Renton customers of TCI of Seattle, Inc . are as follows : Basic cable television service (per month) 10 . 24 Equipment charges (per month) Standard converter . 60 Addressable converter 1 . 08 Remote control . 10 Installation charges Unwired home installation 48 . 80 Prewired home installation 24 . 40 Additional outlet at initial installation 8 . 13 Additional outlet at separate installation 24 . 40 Move outlet 24 .40 Upgrade/downgrade opt. services (non-addressable) 16 .27 Upgrade/downgrade optional services (addressable) 2 . 00 Connect VCR at initial installation 8 . 13 Connect VCR at separate installation 16 . 27 Connect FM at initial installation 8 . 13 Connect FM at separate installation 16 . 27 Install DMX at initial installation 8 . 13 Install DMX at separate installation 16 .27 Install A/B switch at initial installation 5 .53 Install A/B switch at separate installation 16 . 27 SECTION III . TCI of Seattle, Inc . is directed to change its regulated rates and charges for all City of Renton customers to those listed in Section II within sixty ( 60 ) days of the date of this resolution. SECTION IV. TCI of Seattle, Inc. is directed to refund to its City of Renton customers all overcharges as a result of this rate change retroactive to September 1, 1993 by means of a credit to the customer accounts for those overcharges readily identifiable to individual accounts, and a general refund to the class of customers affected for those overcharges not readily identifiable to individual accounts . These refunds are to be 2 RESOLUTION NO. 3087 credited to customer accounts within sixty ( 60) days of the date of this resolution. PASSED BY THE CITY COUNCIL this 15th day of August 1994 . , Marilyn Aptersen, City Clerk APPROVED BY THE MAYOR this 15th day of August , 1994 . (\I; Erl Cl mer or Y , Approve to f Lawrence J. Warre , City Attorney res . 396 : 7/12/94 :as . 3 • August 15. 1994 Renton City Council Minutes Page 348 • Responding to Council questions, Phillip Jewett, Information Services Director, explained that the City is adjusting only those rates that currently fall outside (FCC) rate guidelines. He added that TCI is free to pursue the question regarding whether credit should be given for rates that were less than the FCC-allowed maximum. Noting that a public hearing was held on the proposed rates and that staff has met with TCI to discuss the company's concerns, Mr. Jewett explained that the proposed change would require TCI to refund approximately $0.18 per month to each of its basic rate customers for the time period from September 1993 to July 1994. Councilmember Nelson agreed the Community Services Committee felt this proposal was fair. *MOTION CARRIED. (See later this page for resolution.) _ ORDINANCES AND RESOLUTIONS The following resolutions were presented for reading and adoption: Resolution #3085 A resolution was read rescheduling the time and placing for hearing on the LID: 335, Sierra Heights final assessment roll for Local Improvement District No. 335 (Sierra Heights) Sanitary Sewers to 9/12/94, and directing that notice thereof be given in the manner required by law. MOVED BY SCHLITZER, SECONDED BY NELSON, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3086 A resolution was read authorizing the Mayor and City Clerk to enter into an CAG: 92-082, Houser Way interlocal cooperative agreement with the Washington State Department of Relocation,.WSDOT Transportation for funding of the Houser Way relocation project. MOVED BY CORMAN, SECONDED BY KEOLKER-WHEELER, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3087 A resolution was read establishing cable television rates and charges. MOVED Franchise: TCI Cable BY KEOLKER-WHEELER, SECONDED BY NELSON, COUNCIL ADOPT Rates THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3088 A resolution was read authorizing the temporary closure of Logan Avenue Streets: Logan Ave S South for utility replacement and road restoration. MOVED BY SCHLITZER, Temporary Closure SECONDED BY EDWARDS, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. • The following ordinance was presented for second reading and adoption: Ordinance #4465 An ordinance was read amending subsection 4-31-10.4.B.5 of Chapter 31, Planning: Arterial Zoning Code, of Title IV (Building Regulations) of City Code by adding light Commercial (CA) Zone manufacturing and auto body and paint shops to the list of Hearing Examiner Changes conditional uses in the Arterial Commercial (CA) Zone. MOVED BY SCHLITZER, SECONDED BY NELSON, COUNCIL ADOPT THE ORDINANCE AS PRESENTED. ROLL CALL: 4 AYES (SCHLITZER, EDWARDS, NELSON, KEOLKER-WHEELER), 3 NAYS (STREDICKE, TANNER, CORMAN). CARRIED. The following ordinances were presented for first reading and referred to the Council meeting of 8/22/94 for second reading and adoption: Planning: Mixed An ordinance was read amending section 4-14-3.0 of Chapter 14, Parking and Commercial (CM) Zone Loading, and section 4-31-10.1 of Chapter 31, Zoning Code, of Title IV Changes (Building Regulations) of City Code by removing the requirement for ground floor retail in all but the pedestrian corridors identified in the Downtown Plan; extending the parking, landscaping, setback and lot coverage exempt area.to the west side of Logan Avenue; and adding existing.single-family } August 15, 1994 Renton City Council Minutes Page 347 CAG: 93-052, N 33rd/N Water Utility Division submitted CAG-93-052, N. 34th and N. 33rd Streets 34th Streets A.C. A.C. Watermains; and requested approval of the project, authorization for Watermains, Paramount final pay estimate in the amount of $8,514.00, commencement of 30-day lien Pacific Corp. period, and release of retained amount of $7,736.98 to Paramount Pacific Corporation, contractor, if all required releases have been obtained. Council concur. MOVED BY STREDICKE, SECONDED BY EDWARDS, COUNCIL APPROVE THE CONSENT AGENDA AS AMENDED TO REMOVE ITEM 6.a. FOR SEPARATE CONSIDERATION. CARRIED. Separate Consideration Mayor Clymer appointed Judge Roger Lewis to an additional two-year term Municipal Court Judge from 1996 to 1998. Council concur. Lewis Reappointment, 1996-1998 In response to Council President Stredicke, Jay Covington, Executive Assistant to the Mayor, explained that current state law requires municipal court judges be appointed to four-year terms. Although Judge Lewis was recently reappointed to a term expiring in 1996, this two-year term was not in compliance with state law. The new appointment would appoint Judge Lewis to a full four-year term and thus satisfy state law. MOVED BY STREDICKE, SECONDED BY TANNER, COUNCIL REFER THIS MATTER TO THE COMMUNITY SERVICES COMMITTEE. CARRIED. OLD BUSINESS Finance Committee Chair Tanner presented a report recommending approval Finance Committee of Claims Vouchers #114605 - 115218; four wire transfers in the total amount Finance: Vouchers of $3,312,516.49; approval of Payroll Vouchers #128249 - 128680; and 387 direct deposits in the total amount of $1,102,367.75. MOVED BY TANNER, SECONDED BY SCHLITZER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Transportation Committee, Transportation Committee Chair Edwards presented a report recommending Streets: Logan Ave S concurrence with the Planning/Building/Public Works Department's • Temporary Closure recommendation that the City Council authorize the three-month closure of Logan Ave. S. between S. Tobin St. and S. 2nd St. from August 20, 1994 through November 20, 1994 for the purpose of water main repair. Limited access shall be provided for pedestrian, local and emergency traffic only. MOVED BY EDWARDS, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 348 for resolution.) Community Services Community Services Committee Chair Nelson presented a report Committee recommending concurrence in the staff recommendation to adopt a resolution Franchise: TCI Cable establishing basic cable television rates and charges for Renton customers of Rates TCI of Seattle, Inc., retroactive to September 1, 1993, and directing TCI of Seattle, Inc. to refund any overcharges from September 1, 1993 as a result of this rate change. MOVED BY NELSON, SECONDED BY KEOLKER- WHEELER, COUNCIL CONCUR IN THE COMMITTEE REPORT.* Citizen Comment Wong ' Deanna Wong, 2233 - 112th Ave. NE, Bellevue, 98004, representing TCI West, (TCI) - TCI Cable Rates stated that TCI has already voluntarily reduced its rates, and the equipment rates it now charges may be too low. She explained the need for TCI to capture equipment costs as well as the rate of return allowed by the FCC, and was concerned that the proposal before Council for Renton-area customers would require TCI to refund service-related overcharges, but would not allow it to capture equipment-related undercharges. August 15, 1994 Renton City Council Minutes Page 348 • Responding to Council questions, Phillip Jewett, Information Services Director, explained that the City is adjusting only those rates that currently fall outside (FCC) rate guidelines. He added that TCI is free to pursue the question regarding whether credit should be given for rates that were less than the FCC-allowed maximum. Noting that a public hearing was held on the proposed rates and that staff has met with TCI to discuss the company's concerns, Mr. Jewett explained that the proposed change would require TCI to refund approximately $0.18 per month to each of its basic rate customers for the time period from September 1993 to July 1994. Councilmember Nelson agreed the Community Services Committee felt this proposal was fair. I•*MOTION CARRIED. (See later this page for resolution.) _ ORDINANCES AND RESOLUTIONS The following resolutions were presented for reading and adoption: Resolution #3085 A resolution was read rescheduling the time and placing for hearing on the LID: 335, Sierra Heights final assessment roll for Local Improvement District No. 335 (Sierra Heights) Sanitary Sewers to 9/12/94, and directing that notice thereof be given in the manner required by law. MOVED BY SCHLITZER, SECONDED BY NELSON, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3086 A resolution was read authorizing the Mayor and City Clerk to enter into an CAG: 92-082, Houser Way interlocal cooperative agreement with the Washington State Department of Relocation, WSDOT Transportation for funding of the Houser Way relocation project. MOVED BY CORMAN, SECONDED BY KEOLKER-WHEELER, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3087 A resolution was read establishing cable television rates and charges. MOVED Franchise: TCI Cable BY KEOLKER-WHEELER, SECONDED BY NELSON, COUNCIL ADOPT Rates THE RESOLUTION AS PRESENTED. CARRIED. Resolution #3088 A resolution was read authorizing the temporary closure of Logan Avenue Streets: Logan Ave S South for utility replacement and road restoration. MOVED BY SCHLITZER, Temporary Closure SECONDED BY EDWARDS, COUNCIL ADOPT THE RESOLUTION AS PRESENTED. CARRIED. The following ordinance was presented for second reading and adoption: • Ordinance #4465 An ordinance was read amending subsection 4-31-10.4.B.5 of Chapter 31, Planning: Arterial Zoning Code, of Title IV (Building Regulations) of City Code by adding light Commercial (CA) Zone manufacturing and auto body and paint shops to the list of Hearing Examiner Changes conditional uses in the Arterial Commercial (CA) Zone. MOVED BY SCHLITZER, SECONDED BY NELSON, COUNCIL ADOPT THE ORDINANCE AS PRESENTED. ROLL CALL: 4 AYES (SCHLITZER, EDWARDS, NELSON, KEOLKER-WHEELER), 3 NAYS (STREDICKE, TANNER, CORMAN). CARRIED. The following ordinances were presented for first reading and referred to the Council meeting of 8/22/94 for second reading and adoption: Planning: Mixed An ordinance was read amending section 4-14-3.0 of Chapter 14, Parking and Commercial (CM) Zone Loading, and section 4-31-10.1 of Chapter 31, Zoning Code, of Title IV Changes (Building Regulations) of City Code by removing the requirement for ground floor retail in all but the pedestrian corridors identified in the Downtown Plan; extending the parking, landscaping, setback and lot coverage exempt area to the west side of Logan Avenue; and adding existing single-family APPROVED f/$;9/ • COMMUNITY SERVICES COMMITTEE COMMITTEE REPORT AUGUST 14-1994 RESOLUTION ESTABLISHING CABLE TELEVISION RATES (Referred 4/11/94) The Community Services Committee recommends concurrence in the staff recommendation to adopt a resolution establishing basic cable television rates and charges for Renton customers of TCI of Seattle, Inc., retroactive to September 1, 1993, and directing TCI of Seattle, Inc. to refund any overcharges from September 1, 1993 as a result of this rate change. Toni Nelson, Chair 7i‘Acor/f1 'OPiG•4'a1:— Jesse Tanner, Vice-Chair Gftu, ef—e" ' Gtr Kathy Keoler-Wheeler, Member cc: Phil Jewett catvrep3 Tz- I , g1isl9.- Language on petitions - Sammons Communications, Inc. Released: July 27, 1994 • Paragraph 5 However, as we explained in TCI Cablevision of St. Louis, Inc. DA 94-424 (Rel. April 29, 1994), if a franchising authority approves the cable operator's proposed rates for basic cable service while reducing permitted equipment rates, without allowing an offsetting increase in the tier charge for basic service, the franchising authority is requiring refunds of liability in excess of maximum levels permitted by Commission regulations. We emphasized our expectation that franchising authorities adhere strictly to the mathematical principles underlying the benchmark methodology, particularly when calculating an operator's refund liability. TCI Cablevision of St. Louis, Inc. Released: April 29, 1994 Background-Paragraph 4 Under the Commission's rate regulation, a cable operator's overall maximum permitted rate for the basic cable service tier is based in part on the operator's monthly equipment costs. Thus, presuming the approval of an operator's overall proposed rate for basic service, the operator's permitted rate levels for equipment and for the remaining portion of the overall maximum permitted rate should assume an inverse relationship. In the present case, TCI contends that the City's local rate order is mathematicallyflawed because the order adopts TCI's proposed permitted rates for basic cable service, as demonstrated on TCI's FCC Form 393, but caps TCI's monthly rates for remote control units and converter boxes at their lower actual levels, without permitting TCI an offsetting increase in its tier charge for basic cable service. TCI thus argues that St. Louis has violated the Commission's benchmark regulations by setting these equipment rates at lower than permitted levels. Moreover, TCI argues that the local rate order, given this flawed holding, thus mandates TCI to implement refunds to subscribers in excess of otherwise permitted amounts. Discussion -Paragraph 6 Generally, the Commission prefers to leave regulation of basic tier service to the sound discretion of certified local franchise authorities. Here, we conclude that the City's election, albeit temporary, to approve TCI's proposed rates for regulated basic cable service, while reducing the operator's permitted rates for leased remotes and converters, without allowing TCI an. offsetting increase in the tier charge for basic service would have the effect of requiring TCI to , refund amounts back to subscribers in excess of maximum levels permitted under our rate regulations. Based on the record before us, it appears that St. Louis compared TCI's proposed and corresponding actual rates for basic service, installation and equipment, and approved those rates the City felt justified while rejecting those rates for which the City sought more information. The effect was to yield an aggregate revenue per- channel charge below that required by our rate regulations. July 11, 1994 Renton City.Council Minutes Page 273 Mike Kattermann, Planning & Technical Services Director, explained that the request to add the light manufacturing use to the CA zone came from Harper Engineering, the owner of which has been prevented from expanding his business because it is a legal nonconforming use in the CA zone. Under the Hearing Examiner conditional use process, a public hearing would be held and mitigation measures could be imposed for negative impacts such as noise. Mr. Kattermann added that Harper Engineering primarily assembles small airplane parts, which are fabricated elsewhere. Councilmen Edwards and Tanner suggested it might have been appropriate to f have held'a public hearing on the proposed changes. Council President Stredicke reiterated his opposition to effecting City-wide zoning changes to accommodate specific businesses that could have, been accommodated by variances instead. MOVED BY KEOLKER-WHEELER, SECONDED BY CORMAN, COUNCIL AMEND THE ORDINANCE TO INCLUDE THE LANGUAGE CONTAINED IN THE PLANNING & DEVELOPMENT COMMITTEE REPORT ON THIS ISSUE; SPECIFICALLY, SECTION 4-31-10.4.b.5.z SHALL READ "Automobile body shops, including painting, when conducted entirely within an enclosed structure." CARRIED. *MAIN MOTION CARRIED TO REFER THE ORDINANCE, AS AMENDED, FOR SECOND AND FINAL READING ON 7/18/94. NEW BUSINESS MOVED BY STREDICKE, SECONDED BY TANNER, COUNCIL CANCEL Council: Cancellation of ITS REGULAR MEETING AND THE COMMITTEE OF THE WHOLE 8/8/94 Regular Meeting MEETING SCHEDULED FOR AUGUST 8, 1994. CARRIED. Council: Cablecasting of Councilmember Keolker-Wheeler expressed surprise at a recent staff memo Council Meetings stating that a video production vendor will soon be selected to handle the Tc-t l .• video taping for broadcasting Council meetings on the government access Utchannel. She said although Council had approved the installation of cable during the current remodel of the Council Chambers so this facility would be cable-ready in the event that Council decided to begin broadcasting its meetings, Council has not yet made the decision to spend the funds to do so. MOVED BY KEOLKER-WHEELER, SECONDED BY SCHLITZER, COUNCIL DIRECT THAT ALL EFFORTS TO SECURE VENDORS FOR THE PURPOSE OF CABLECASTING COUNCIL MEETINGS STOP IMMEDIATELY AND THAT THIS MATTER BE REFERRED TO THE COMMITTEE OF THE WHOLE*. Council President Stredicke recalled that Council had previously stated its intention to prepare the Council Chambers for the purpose of televising its meetings. He added that the 3% fee charged to the cable company which was estimated to amount to $470,000 over a five-year period was, in fact, implemented for this specific purpose. *MOTION CARRIED. Building: 50% Remodel MOVED BY EDWARDS, SECONDED BY STREDICKE, COUNCIL REFER Cost Rule THE ISSUE OF THAT SECTION OF THE CITY CODE THAT ALLOWS REMODELING OF NONCONFORMING STRUCTURES TO COST UP TO 50% OF THE VALUE OF THE BUILDING TO THE PLANNING & DEVELOPMENT COMMITTEE. CARRIED. /Etna FRANCHISE BOND Bond#19 S 100800054-93-455 BCA Replaces Bond#K01604995 GL Code: 51113 Risk File: TCIIA4-102 Location:Renton,Washington KNOW ALL MEN BY THESE PRESENTS, That we, TCI Seattle, Inc., as Principal, and The Aetna Casualty and Surety Company, a corporation of the State of Connecticut, as Surety, are held and firmly bound unto City of Renton, Washington, as Obligee, in the sum of Fifteen Thousand and No/100---Dollars ($15,000.00),lawful money of the United States of America, to be paid unto said Obligee,its successors and assigns,jointly and severally,firmly by these presents. WHEREAS,the above bound Principal has entered into a written agreement dated 9 � 7— qj , with the obligee which grants a Franchise to the Principal to use its public streets and places to transmit and distribute electrical impulses through an open line-coaxial antenna system located therein. Principal has agreed to faithfully perform and observe and fulfill all terms and conditions of said Franchise agreement referred to above and said agreement is hereby made a part of this bond with like force and effect as if herein set forth in length. NOW,THEREFORE,THE CONDITION OF THIS OBLIGATION IS SUCH,that if the above named Principal, its successors or assigns, does and shall well and truly observe, perform and fulfill its obligation as set forth in the above mentioned Franchise agreement,for which a bond must be posted,then the above obligation to be void;otherwise to remain in full force and effect. The bond is subject,however,to the following express conditions: FIRST: That in the event of a default on the part of the Principal,.its successors or assigns, a Written statement of such default with full details thereof shall be given to Surety promptly, and in any event, within thirty (30) days after the Obligee shall learn of such default, such notice to be delivered to Surety at its Home Office in Hartford, Connecticut by registered mail. SECOND: That no claim, suit or action under this bond by reason of any such default shall be brought against Surety unless asserted or commenced within twelve(12)months after the effective date of any termination or cancellation of this bond. THIRD: That this bond may be terminated or cancelled by Surety by thirty (30) days prior notice in writing to Principal and to Obligee, such notice to be given by certified mail. Such termination or cancellation shall not affect any liability incurred or accrued under this bond prior to the effective date of such termination or cancellation. The liability of the Surety shall be limited to the amount set forth above and is not cumulative. FOURTH: That no right of action shall accrue under this bond to or for the use of any person other than the Obligee, and its successors and assigns. IN WITNESS WHEREOF, the above bound Principal and the above bound Surety have hereu to,set;,tl3dr riand$A - eals on the 13th day of May, 1994. TCI Seattle,Inc. BY: / • • _ Y AND SURETY COMPAN ' _W�,�` BY: a v mey-in-fact h. ri ' /'er THE AETNA CASUA'— '1ND SURETY COMPANY (Etna" Hartford,I tcticut 06156 POWER OF ATTORNEY AND CERTIFICATE OF AUTHORITY OF ATTORNEY(S)-IN-FACT KNOW ALL MEN BY THESE PRESENTS,THATTHEAETNA CASUALTY AND SURETY COMPANY,a corporation duly organized under the laws of the State of Connecticut,and having its principal office in the City of Hartford,County of Hartford,State of Connecticut,hath made,constituted and appointed,and does by these presents make,constitute and appoint John W. Schiffer, Sharon Pfeiffer, Jill Husemann * of Portland,OR ,its true and lawful Attorneys)-in-Fact,with full power and authority hereby conferred to sign,execute and acknowledge,at any place within the United States,or,if the following line be filled in,within the area there desig- nated ,the following instrument(s): by his/her sole signature and act,any and all bonds,recognizances,contracts of indemnity,and other writings obligatory in the nature of a bond, recognizance,or conditional undertaking and any and all consents incidents thereto and to bind THE AETNA CASUALTY AND SURETY COMPANY,thereby as fully and to the same extent as if the same were signed by the duly authorized officers of THE AETNA CASUALTY AND SURETY COMPANY,and all the acts of said Attorneys)-in-Fact,pursuant to the authority herein given,are hereby ratified and confirmed. This appointment is made under and by authority of the following Standing Resolutions of said Company,which Resolutions are now in full force and effect: VOTED:That each of the following officers:Chairman,Vice Chairman,President,Any Executive Vice President,Any Group Executive,Any Senior Vice President,Any Vice President,Any Assistant Vice President,Any Secretary,Any Assistant Secretary,may from time to time appoint Resident Vice Presidents,Resident Assistant Secretaries,Attorneys-in-Fact,and Agents to act for and on behalf of the Company and may give any such appointee such authority as his certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances,contracts of indemnity,and other writings obligatory in the nature of a bond,recognizance,or conditional undertaking,and any of said officers or the Board of Directors may at any time remove any such appointee and revoke the power and authority given him or her. VOTED:That any bond,recognizance,contract of indemnity,or writing obligatory in the nature of a bond,recognizance,or conditional undertaking shall be valid and binding upon the Company when(a)signed by the Chairman,the Vice Chairman,the President,an Executive Vice President,a Group Executive,a Senior Vice President,a Vice President,an Assistant Vice President or by a Resident Vice President,pursuant to the power prescribed in the certificate of authority of such Resident Vice President,and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary or by a Resident Assistant Secretary,pursuant to the power prescribed in the certificate of authority of such Resident Assistant Secretary;or(b)duly executed(under seal,if required)by one or more Attorneys-in-Fact pursuant to the power prescribed in his or their certificate or certificates of authority. This Power of Attorney and Certificate of Authority is signed and sealed by facsimile under and by authority of the following Standing Resolution voted by the Board of Directors of THE AETNA CASUALTY AND SURETY COMPANY which Resolution is now in full force and effect: •VOTED:That the signature of each of the following officers:Chairman,Vice Chairman,President,Any Executive Vice President,Any Group Executive,Any Senior Vice President,Any Vice President,Any Assistant Vice President,Any Secretary,Any Assistant Secretary,and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Resident Vice Presidents,Resident Assistant Secretaries or Attorneys-in-Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof,and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached. IN WITNESS WHEREOF,THE AETNA CASUALTY AND SURETY COMPANY has caused this instrument to be signed by its Assistant Vice President, and its corporate seal to be hereto affixed this 27th day of October ,19 93 THE AET%CASUALT .SW COMPANY ,. rn B ,�a•- State of Connecticut y ss.Hartford N Geor•� Tho • o County of Hartford Assistant Vice Presiden On this 27th day of October ,19 93 ,before me personally came GEORGE W.THOMPSON to me known,who, being by me duly sworn,did depose and say:that he/she is Assistant Vice President of THE AETNA CASUALTY AND SURETY COMPANY,the corporation described in and which executed the above instrument;that he/she knows the seal of said corporation;that the seal affixed to the said instrument is such corporate seal;and that he/she executed the said instrument on behalf of the corporation by authority of his/her office under the Standing Resolutions thereof. i'1+*F4! + ;�.4taJ.a My commission expires August 31,1998 Notary Public Dorothy L.Marti CERTIFICATE I,the undersigned,Secretary of THE AETNA CASUALTY AND SURETY COMPANY,a stock corporation of the State of Connecticut,DO HEREBY CERTIFY that the foregoing and attached Power of Attorney and Certificate of Authority remains in full force and has not been revoked;and furthermore,that the Standing Resolutions of the Board of Directors,as set forth in the Certificate of Authority,are now in force. Signed and Sealed at the Home Office of the Company,in the City of Hartford,State of Connecticut.Dated this 1 3th day of May '19 94 • 14=12. ;I, By IJDA *C-'111't 4 °-r12411/t' • William T.DiRoberts .S-1921-F(M)(3-93) Y+�3y` '' Secretary May 2. 1994 Renton City Council Minutes Page 173 Transportation (Aviation) Transportation (Aviation) Committee Chair Edwards presented a report Committee regarding an assignment of lease by the Boeing Employees Flying Association Airport: BEFA (BEFA).. The Boeing Employees Flying Association requested that the City of Assignment of Lease/Loan Renton approve a new Deed of Trust and execute a Consent and Agreement Extension of Landlord and related documents.pertaining to the assignment to SeaFirst Bank of the Boeing Employees Flying Association's lease. This request was • initially submitted to the Transportation (Aviation) Committee on October 25, 1993. The Committee recommended, and the Council approved, the taking of no action until completion of the lawsuit between the City and certain airport tenants then in progress. The lawsuit has been completed and the court's ruling is that the BEFA does not have to renegotiate its land rental rate until 1995. The Transportation (Aviation) Committee recommended that the City Council: (1) approve the Consent and Agreement of Landlord and other related documents; and (2) authorize the Mayor and City Clerk to execute the Consent and Agreement of Landlord and other related documents. At Council President Stredicke's suggestion, section (2) of the final sentence of the Committee report was amended as follows: "(The City Council) authorize the Mayor and City Clerk to execute the Consent and Agreement of Landlord and other documents following review by the City Attorney." MOVED BY EDWARDS, SECONDED BY STREDICKE, COUNCIL CONCUR IN THE COMMITTEE REPORT AS AMENDED. CARRIED. NEW BUSINESS Council President Stredicke requested a report on Safeway, Inc.'s proposal to Building: New Safeway construct a new store at NE 4th Street and Union Avenue NE adjacent to the Store at NE 4th/Union existing Safeway store. Mr. Stredicke specifically wanted information on: the Ave NE parking requirements for the project; how these were adjusted by the Environmental Review Committee; and how they relate to the project's transportation impact fee which was negotiated from an original estimate of $1.7 million to $113,960. Franchise: City of Seattle Responding to Council President Stredicke, the City Clerk explained last Preemption of Regular week's preemption of Renton's public/government access channel by the City Public Access Program of Seattle for a program on youth violence. EXECUTIVE SESSION MOVED BY STREDICKE, SECONDED BY CORMAN, COUNCIL ADJOURN INTO EXECUTIVE SESSION TO DISCUSS LITIGATION AND PROPERTY ACQUISITION. CARRIED. Time: 8:12 p.m. ADJOURNMENT MOVED BY STREDICKE, SECONDED BY NELSON, COUNCIL ADJOURN. CARRIED. Time: 8:55 p.m. .441. • MARILY�:,�'' TERSEN, CMC, .City Clerk . Recorder: Brenda Fritsvold 5/02/94 April 11. 1994 Renton City Council Minutes Pane 145 Jafar Rosemont, Hillcrest, and Yamoren Jamal, McKnight Middle School, related their appreciation of the program, specifically the teen nights on Fridays and Saturdays and the field trips offered during the summer months. Concluding that the Parks Department's employees are committed to this program, Community Services Administrator Chastain asked for Council's continued support. • PUBLIC HEARING This being the date set and proper notices having been posted and published • Franchise: TCI Cable in accordance with local and State laws, Mayor Clymer opened the public Rates hearing to consider the proposed rates for TCI Cablevision. Philip Jewett, Information Systems Director, provided a brief overview of recent cable regulation history, explaining that legislation passed by Council . last year authorized the City to license rates. The new cable rates adopted for the City,will be retroactive to October 1, 1993. Mr. Jewett commented on the national average, or "benchmark" rates established by the Federal Communications Commission last year, noting that Renton's current basic rate is about $0.61 per channel, and the FCC's permitted rate is $0.60 per channel. Staff recommends that this issue be referred to the Community Services Committee for further evaluation. Responding to Councilmember Tanner, Lon Hurd, consultant from 3-H Cable Communications Consultants, explained that channel capacity is tied to the upgrading of the system, which is scheduled for completion by 1996 but expected to be finished much earlier. Although the upgraded analog technology will increase the number of available channels to about,80 in late 1995, the conversion to digital technology will greatly expandthis capacity. Mr. Hurd added that the rate-setting process will begin again this June 15th when TCI is required to submit its justification for yet another tier of rates. Audience comment was invited. Sandy Webb, 430 Mill Ave. S., Renton, 98055, expressed concern that TCI is requesting owners of multi-unit properties to sign a 15-year agreement for a right-of-entry that would allow TCI's workers to install a new fiber optics system. Noting past dissatisfaction with service received from TCI, Mr. Webb said previous contact with the cable company has indicated it is not responsive to complaints. He was concerned that, according to the agreement, TCI could abandon its facilities at any time without removing them. Mr. Webb questioned if the City has seen or approved this agreement. Gary Hokinson, General Manager of TCI Cablevision South, concurred that TCI is rebuilding its fiber optic system to meet FCC specifications, and in doing so will rewire all apartment complexes as well as some private residences. • In response to Councilmember Corman, Mr. Hokinson said the agreement referred to by Mr. Webb includes the right-of-entry provision because some owners of rental units do not live on-site. He added that TCI will individually contact those who live in single family residences, and said the company is not asking for carte blanche to gain entrance into anyone's house. MOVED BY EDWARDS, SECONDED BY SCHLITZER, COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. April 11, 1994 Renton City Council Minutes Pane 146 MOVED BY STREDICKE, SECONDED BY CORMAN, COUNCIL REFER THE ISSUE OF CABLE RATES TO THE COMMUNITY SERVICES COMMITTEE. CARRIED. AUDIENCE COMMENT Bill McLaughlin, 20417 - 94th Ave. S., Kent, 98031, requested that the letter Citizen Comment from Olive Biggins be discussed. McLaughlin - Request for COUNCIL SUSPEND Nonconforming Use, 907 MOVED BY SCHLITZER, SECONDED BY NELSON, Harrington Ave NE THE REGULAR ORDER OF BUSINESS AND ADVANCE TO THE ITEM OF CORRESPONDENCE ON THE AGENDA. CARRIED. CORRESPONDENCE Correspondence was read from Olive Biggins, 2611 NE Sunset Blvd., 98056, Citizen Comment Biggins requesting a Class A nonconforming use for the Biggins View Apartments - Request for located at 907 Harrington Ave. NE, 98056, due to recent rezone of this Nonconforming Use, 907 property to Community Commercial (CB). Harrington Ave NE Mr. McLaughlin stated that his mother-in-law, Olive Biggins, is requesting the Class A nonconforming use for this property because the building is a condominium, and under the current Class B nonconforming use, only 50% of the units could be rebuilt in the event a fire or other catastrophe totally destroyed the building. Mr. McLaughlin referenced photographs of the adjacent properties included with the letter which demonstrate that the current use is compatible with existing uses in the immediate area. MOVED BY STREDICKE, SECONDED BY TANNER, COUNCIL GRANT THE REQUEST FOR A CLASS A NONCONFORMING USE AT 907 HARRINGTON AVENUE NE. CARRIED. MOVED BY STREDICKE, SECONDED BY EDWARDS, COUNCIL REFER THE SUBJECT OF THE PROCESS FOR CONSIDERING CLASS A NONCONFORMING USE REQUESTS TO THE PLANNING AND • DEVELOPMENT COMMITTEE. CARRIED. CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. Council President Stredicke noted the addition of one item, 7.f., regarding a grant application for Lake Washington Trail. Community Event Renton • Executive Department requested waiver of fees for permits during 1994 River Days Permit Fee Renton River Days, and permission to install River Days windsocks and Waiver; Banners banners on street poles from July 6 to August 15. Refer to Community Services Committee. H&HS: 1995 CDBG Housing & Human Services Division requested adoption of 1995 Community Policies and Pass-Through Development Block Grant Policies, acceptance of estimated Block Grant pass- Funds through dollars for 1995, and establishment of a public hearing on April 25, 1994, to receive public input on this issue. Refer to Community Services Committee. H&HS: 1994 CDBG Funds Housing & Human Services Division requested acceptance of proposed reallocation of 1994 Community Development Block Grant funds and establishment of a public hearing on April 25, 1994, to receive public input on this issue. Refer to Community Services Committee. Police: Public Safety Police Department submitted report from the citizens' committee formed to Needs address Renton's public safety space needs. Refer to Committee of the Whole. • City of Renton Cable Television Rates -Public Hearing April 11, 1994 ' • Recommendation: refer subject of cable rates to Community Services Committee for further review and final recommendations by staff. TCI Cablevision Basic Service and Installation/Equipment Rates Regulated by the City of Renton • Permitted Rates Effective October 1, 1993 • Current FCC Permitted Rates Rates Basic Service (per month) 10.42 10.24* . Equipment Charges Standard Converter (per month) .60 1.21 Addressable Converter (per month) 1.08 2.31 Remote Control (per month) .10 .19 Installation Charges • Unwired Home Installation 49.56 48.80 Prewired Home Installation 24.78 24.40 Additional Outlet at Initial Installation 8.26 8.13 Additional Outlet at Separate Installation 24.78 24.40 Move Outlet 24.78 24.40 Up/Downgrade Opt Services (non-addressable) 16.52 . 16.27 Up/Downgrade Optional Services (addressable) 2.00 ' 2.00 • Connect VCR at Initial Installation 8.26 8.13 Connect VCR at Separate Installation 16.52 . 16.27 Connect FM at Initial Installation 8.26 8.13 Connect.FM at Separate Installation 16.52 16.27 Install DMX at Initial Installation 8.26 8.13 Install DMX at Separate Installation 16.52 16.27. Install A/B Switch at Initial.Installation 5.50 • 5.53 Install A/B Switch at Separate Installation 16.52 16.27 • Comparision of Per Channel rates Current Basic Rate .613 FCC Permitted Rate* • .602. FCC National Benchmark Rate* .585 * Adjustable with inflation; rates as of October 1, 1993 Cll3hh MONTHLY SUBSCRIBER RATES (As of 9/1/93) • ,4..:::r.;;:isi:•:iiii:•i:+^••^:•ii::::':i•:iY{•:::4:•i:•i1i'lii::-i?:4:i^+}i}ii.:::Li:i:.^.•:;•:.:{ . . .l• -•:._ .v. -, i r a i � :.. ;: . �..,' :.i,'fi�':•v�:if:>:••:}i:i viK:::.i.^•:i:.:iiY:i::.}}:•-?:.ii:ti+{.}:.{Ai:3'r•:ti?:ii:::.}: Basic . ;... ' : :,:<: <.;> ::>' :<:>;,.2.>:>:<: : .; ::.,.>:.;: :<;:4::.::.;4<:<.:x>v:;f', Pre Reg# Post Reg# #Satellite Cost Per Pre-Reg Post-Reg % Pre Reg# Post Reg# Cost Per Pre-Reg Post-Reg % Channels Channels Channels Channel Rate Rate Difference Channels Channels Channel Rate Rate Difference T C I Auburn 16 16 4 $0.65 $11.03 $10.42 -5.5% 17 17 $0.58 $11.14 $9.81 -12.0% . Des Moines 16 16 4 $0.64 $10.50 $10.26 -2.3% 17 17 $0.56 $10.61 $9.58 -10.0% Enumclaw 16 16 4 $0.66 $11.03 $10.54 -4.4% 17 17 $0.58 _ $11.14 $9.91 -11.0% Federal Way 16 16 4 $0.66 $10.50 $10.49 -.09% 17 17 $0.58 $10.61 $9.87 -7.0% Kent 16 16 4 $0.65 $10.50 $10.39 -1.0% 17 17 $0.57 $10.61 $9.77 -8.0% Kitsap County 12 15 3 $0.67 $10.00 $10.02 -0.2% 19 16 $0.67 $11.39 $10.70 -6.0% Lake Forest Pk. 16 16 4 $0.65 $10.50 $10.39 -1.0% 17 17 $0.57 $10.61 $9.77 -8.0% Renton 16 16 4 $0.65 $11.13 $10.42 -6.4% 17 17 $0.58 $11.04 $9.81 -11.0% Tukwila 16 16 4 • $.065 $11.13 $10.44 -6.2% 17 17 $0.58 $11.04 $9.82 -11.0% VIACOM Bellevue 16 15 2 $0.79 $12.00 $11.83 -1.4% 15 16 $0.70 $12.39 $11.13 -10.0% Federal Way • 16 15 2 $0.77 $12.00 $11.57 -3.6% 16. 17 $0.72 $12.39 $12.29 -0.8% Kirkland 15 16 2 $0.78 $12.00 $12.49 -4.0% 16 15 $0.69 $12.39 $10.40 -16.0% Lake Forest Pk. 16 15 -2 $0.79 $12.00 $11.83 -1.4% 15 16 $0.70 $12.39 $11.13 -10.0% Mercer Island 16 15 2 $0.79 $12.00 $11.83 -1.4% 15 16 $0.70 $12.39 $11.13 -10.0% Redmond • 16 15 2 $0.79 $12.00 $11.83 -1.4% 15 16 $0.70 $12.39 $11.13 -10.0% NORTHLAND (Rates shown contain local franchise fees.) Kitsap County 10 17 5 $0.76 $14.25 $12.90 -9.1% 16 12 $0.73 $7.40 $8.75 +18.0% Port Angeles 13 17 3 $0.76 $14.25 $13.00 -8.8% . 14 10 $0.72 $5.95 $7.20 +21.0% FALCON Kitsap County I I 8 27 I 18 $0.71 I $9.95 $19.12 I +92.0% II 19 I -* I -* I $19.95 I -* I - *Additional services available on an ala carte basis. - Prepared by: 3-H Cable Communications Consultants September 1, 1993 AFFIDAVIT OF PUBLICATION Jessica FOlkerts , being first duly sworn on oath states that he/she is the Legal Clerk of the VALLEY DAILY NEWS 600 S. Washington Kent, WA. 98032 a daily newspaper published six (6) times week. Said newspaper is a legal newspaper of general circulation and is now and has been for more than six months prior to the date of publication referred to, printed and published in the English language continually as a daily newspaper in Kent, King County, Wash- ington. The Valley Daily News has been approved as a legal newspaper by order NOTICE of PUBLIC HEARING of the Superior Court of the State of Washington for King County. BY RENTON CITY COUNCIL The notice in the exact form attached, was published in the Valley Daily NewsRNOTICE IS HEREBY GIVEN that the not in supplement form) which was regularly distributed to the subscribers April, 1n City Council has fixed the nth of (andpp 9 Y April, 1994,-at 7:30 p.m. in the Municipal during the below stated period. The annexed notice, a Court Building Chambers, 200 Mill Avenue South, Renton, Washington, as the date Notice of Public Hearing and time fora public hearing to consider the following: • Cable television rate regulations. Any and all interested persons are invited to be present to voice approval,disapproval, was published on 4-1 -94 or opinions on this matter. Call City Clerk's office at 235-2501 for information. Marilyn Petersen The full amount of the fee charged for said foregoing publication is the sum of i City Clerk i Date of Publication:April 1, 1994 ' 1 Published in the Valley Daily News April 21 . 38 a 1, 1994. 10112 JA � it Lt it 1gal Clerk, Valley\,Baily N:ws Subscribed and sworn before me this 5 day of April 19 94 I / Notary Public or the State of Washington residing at Auburn King County, Washington VDN#1164 Revised 7/92 We're taking television into tomorrow 0 _ i TCI Cablevision of Washington, Inc. U ' .� s \J • April 6, 1994 _v d Si The Honorable Earl Clymer Mayor, City of Renton 200 Mill Avenue S. Renton, WA 98055 Dear Mayor Clymer: Attached for your information is a certificate notifying you of the corporate reorganization of Tele-Communication, Inc. (TCI) . As described in the attached document, TCI will be recombining with Liberty Media Corporation to form a new company, TCI/Liberty Holding Company. TCI of Seattle, Inc. d/b/a (TCI Cablevision of Washington, Inc. ) is a subsidiary or affiliate of TCI, and while there will be no change in the direct ownership or control of TCI , Inc. , nor any transfer or assignment of its franchise as a result of this reorganization, we want to apprise you of this reorganization. Let meassure you that there will be no change in our local operations, or in our .commitment to our subscribers. We will continue to provide the highest quality cable television service to Renton, and look forward to forging .an even stronger relationship with you as we explore the future of telecommunications together. Should you have any questions, please do not hesitate to call . Very tru yours, Gary A. Hokenson General Manager South Seattle Office • 15241 Pacific Hwy S. Seattle,WA 98188 (206)433-3434 FAX(206)433-5103 An Equal Opportunity Employer • TERRACE TOWER II Post Office Box 5630 5619 DTC Parkway Denver,Colorado 80217-5630 Englewood,CO 80111-3000 (303)267-5500 ®TELE•COMMUNICATIONS,INC. CERTIFICATION UNDER SECTION 617 OF THE 1992 CABLE ACT This certification is being provided to you pursuant to Section 617 of the 1992 Cable Act. Section 617 prohibits thesale or transfer of a controlling interest in a cable system unless it has been owned more than three years or the transaction qualifies for an exemption or waiver. Section 617 further requires that we certify to you that the proposed transaction described below does not violate Section 617. The cable television operator in your community is a subsidiary or affiliate of Tele-Communications, Inc. ("TCI") . TCI is undertaking a corporate reorganization in which Liberty Media Corporation ("Liberty") , which was created as a separate company from TCI in March, 1991, will be recombined with TCI. There will be no change in the direct ownership or control of your cable television operator, nor any transfer or assignment of its franchise in your community as a result of this reorganization. Although this reorganization does not involve any transfer of a controlling interest in a cable system, Section 617 applies to this transaction under applicable FCC rules because a new holding company is being created, as described below. The TCI-Liberty reorganization involves the creation of a new parent company, TCI/Liberty Holding Company, a Delaware corporation ("Holding Company") . TCI and Liberty will become wholly owned subsidiaries of Holding Company. TCI shareholders, including those TCI shareholders who presently own a controlling interest in Liberty, will control Holding Company. TCI and Holding Company have the same Board of Directors. The TCI/Liberty reorganization is exempt from the three-year holding period requirement pursuant to two of the exemptions set forth in Section 617 (c) . First, the three-year holding period does not apply to transactions involving entities under common ownership or management. As described above, TCI shareholders, including those TCI shareholders who own a controlling interest in Liberty, will control Holding Company. In addition, this reorganization is also exempt from the three-year holding period because it is not subject to Federal income tax liability under the Internal Revenue Code. TCI hereby certifies to you that, , based upon the foregoing, its reorganization with Liberty complies with Section 617 of the 1992 Cable Act. TELE-COMMUNICA IONS, INC. /604(1% March 30, 1994 By: ` Ste. e" M: Brett General Counsel and Senior Vice President An Equ !Opportunity Employer • • City of Renton Cable Television Rates - Public Hearing April 11, 1994 • Recommendation: refer subject of cable rates to Community Services Committee for further review and final recommendations by staff. TCI Cablevision Basic Service and Installation/Equipment Rates Regulated by the City.of Renton Permitted Rates Effective October 1, 1993 Current FCC Permitted Rates Rates Basic Service (per month) 10.42 10.24* Equipment Charges . Standard Converter (per month)' .60 1.21 Addressable Converter (per month) 1.08 2.31 Remote Control (per month) .10 .19 • Installation Charges Unwired Home Installation • • 49.56 48.80 Prewired Home Installation 24.78 24.40 Additional Outlet at Initial Installation 8.26 8.13 Additional Outlet at Separate Installation 24.78 24.40 Move Outlet 24.78 24.40 Up/Downgrade Opt Services (non-addressable) 16.52. 16.27 Up/Downgrade Optional Services (addressable) 2.00 2.00 Connect VCR at Initial Installation 8.26 8.13 Connect VCR at Separate Installation 16.52 16.27 Connect FM at Initial Installation 8.26 8.13 Connect FM at Separate Installation 16.52 16.27 • Install DMX at Initial Installation 8.26 8.13 Install DMX at Separate Installation 16.52 16.27 Install A/B Switch at Initial Installation 5.50 5.53 Install A/B Switch at Separate Installation 16.52 16.27 Comparision of Per Channel rates Current Basic Rate .613 FCC Permitted Rate* .602 FCC National Benchmark Rate* .585 *Adjustable with inflation; rates as of October 1, 1993• • " cn . MONTHLY SUBSCRIBER RATES (As of 9/1/93) • .. ..a r •' ffr % ONxM{ ^ fn,' Pre Reg# Post Reg# #Satellite Cost Per Pre-Reg Post-Reg % Pre Reg# Post Reg# Cost Per Pre-Reg Post-Reg % Channels Channels Channels Channel Rate Rate Difference Channels Channels Channel Rate Rate Difference T C I Auburn 16 16 4 $0.65 $11.03 . $10.42 -5.5% 17 _17. $0.58 $11.14 $9.81 -12.0% . Des Moines 16 . 16 4 $0.64 $10.50 $10.26 -2.3% . .17 • 17 $0.56 $10.61 $9.58 -10.0% Enumclaw 16 16 4 $0.66 $11.03 $10.54 -4.4% 17 17 $0.58 $11.14 $9.91 -11.0% Federal Way 16 16 4 . $0.66 $10.50 $10.49 -.09% 17 17 $0.58 $10.61 $9.87 -7.0%• Kent 16 16 4 $0.65 $10.50 $10.39 -1.0% 17 17 $0.57 $10.61 $9.77 -8.0% Kitsap County 12 15 3 $0.67 $10.00 $10.02 -0.2% 19 16 $0.67 $11.39 $10.70 -6.0% Lake Forest Pk. 16 16 4 $0.65 $10.50 $10.39 -1.0% 17 17 $0.57 $10.61 $9.77 -8.0% Renton • 16 16 4 $0.65 $11.13 $10.42 -6.4% 17 17 $0.58 $11.04 $9.81 -11.0% Tukwila 16 16 4 $.065 $11.13 $10.44 -62% 17 17 $0.58 $11.04 $9.82 -11.0% V I A C O M _ Bellevue 16 15 2 $0.79 $12.00 $11.83 -1.4% 15 16 I $0.70 $12.39 $11.13 -10.0% Federal Way 16 15 2 $0.77 $12.00 $11.57 -3.6% 16 17 $0.72 $12.39 $12.29 -0.8% Kirkland . 15 16 2 $0.78 $12.00 $12.49 -4.0% 16 15 $0.69 $12.39 $10.40 -16.0% Lake Forest Pk. 16 15 2 $0.79 $12.00 $11.83 -1.4% 15 16 $0.70 $12.39 $11.13 -10.0% Mercer Island 16 15 2 $0.79 $12.00 $11.83 -1.4% 15 16 $0.70 $12.39 $11.13 -10.0% Redmond • 16 . 15 2 $0.79 $12.00 $11.83 -1.4% 15 16 $0.70 $12.39 $11.13 -10.0% N O R T H L A N D (Rates shown contain local franchise fees.) Kitsap County 10 17 5 $0.76 $14.25 $12.90 -9.1% 16 12 $0.73 $7.40 $8.75 +18.0% Port Angeles 13 17 3 $0.76 $14.25 $13.00 -8.8% 14 10 $0.72 $5.95 $7.20 +21.0% FALCON Kitsap County LI 8 .27 ( 18 $0.71 $9.95 $19.12 +92.0% I{ 19 -* I -* I-$19.95 .I -* I - *Additional services available on an ala carte basis. . • Prepared by: 3-H Cable Communications Consultants September 1, 1993 CITY OF RENTON NOTICE OF PUBLIC HEARING BY RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed.the 11th of April, 1994, at 7:30 p.m. in the Municipal Court Building Chambers, 200 Mill Avenue • South, Renton, Washington, as the date and time for a public hearing to consider the following: Cable television rate regulations Any and all interested persons are invited to be present to voice approval, disapproval, or opinions on this matter. Call City Clerk's office at 235-2501 for information. )2.) - 1,0 , Marilyn " ' '�- sen City Clerk DATE OF PUBLICATION: April 1, 1994 • Valley Daily News Acct. No. 50640 February 7, 1994 • Renton City Council Minute Page 57 Committee of the Whole Council President Stredicke presented a report recommending that Council Personnel: 1993-1996 adopt the compensation proposal submitted by the Mayor for non-represented Compensation for Non- management employees. The proposal includes a one-time $800 payment in Represented Management lieu of a cost-of-living increase for 1993; a 2.0% cost-of-living increase for Employees 1994 and 80% of the Seattle area CPI-W, mid-year index for 1995 and 1996; enrollment in a long-term disability plan with a benefit equal to 60% of base salary; elimination of sick leave cashout for employees hired after January 1, 1993; and elimination of bonus day off for sick leave usage of 40 hours or less. The annual health care incentive bonuses will be held in trust to offset future health insurance increases in lieu of a monetary payment. MOVED BY STREDICKE, SECONDED BY CORMAN, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. _ ORDINANCES AND RESOLUTIONS The following ordinances were presented for first reading and advanced to the Council meeting of 2/14/94 for second reading and adoption: LID: 337, Dayton Ave NE An ordinance was read ordering the construction and installation of sanitary Sanitary Sewers sewers and appurtenances thereto in and near Dayton Avenue NE, between NE 20th and NE 22nd Streets, as more particularly described herein in accordance with Resolution No. 3025 of the City Council of the City of Renton, establishing Local Improvement District No. 337 in the total amount of $144,761.95; providing assessments upon property in said district, payable by the mode of "payment of bonds", or "notes" in lieu thereof as determined by the City Council; providing for the issuance and sale of local improvement district warrants redeemable in cash and local improvement district bonds or notes. MOVED BY STREDICKE, SECONDED BY EDWARDS, COUNCIL ADVANCE THE ORDINANCE FOR SECOND AND FINAL READING ON 2/14/94. CARRIED. Legal: City Holidays An ordinance was read amending Chapter 8 of Title I (Administrative), of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington" by modifying the listing of legal holidays and deleting vacations from the Code book. Noting this issue has not been before any Council committee, it was moved by Council President Stredicke, seconded by Nelson, Council refer this subject matter to the Committee of the Whole for a recommendation. Motion failed. MOVED BY EDWARDS, SECONDED BY SCHLITZER, COUNCIL ADVANCE THE ORDINANCE FOR SECOND AND FINAL READING ON 2/14/94. CARRIED. NEW BUSINESS MOVED BY STREDICKE, SECONDED BY TANNER, COUNCIL REFER Planning: Residential and THE SUBJECT OF RESIDENTIAL AND COMMERCIAL ZONE SETBACKS Commercial Zone Setbacks WHERE THESE ZONES ARE ADJACENT TO EACH OTHER TO THE ADMINISTRATION FOR A RECOMMENDATION. CARRIED. Franchise: New TCI Cable Noting that TCI Cable is offering a new channel, Council President Stredicke Service asked for assurance that subscribers will be required to specifically sign up for the new channel if they wish to receive it, rather than automatically receiving it and being charged unless they notify TCI that they do not want it.