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RESOLLrHONNO. 7598-01 BY: Corrigan,' FitzGerald, George,
<br /> Roth, Seelie, Skindell, Smith.
<br />
<br />AN EMERGENCY RESOLUTION DISAPPROVING THE MAXIMUM
<br />PERMITTED BASIC TIER CABLE TELEVISION RATE PROPOSED BY
<br />CABLEVISION FOR JANUARY 1, 2001 THROUGH DECEMBER 31, 2001;
<br />APPROVING A CORRECTED MAXIMUM PERMITTED BASIC TIER RATE
<br />FOR RATES EFFECTIVE JANUARY 3, 2001 THROUGH DECEMBER 31,
<br />2001; DISAPPROVING MAXIMUM PERMITTED EQUIPMENT RENTAL,
<br />SERVICE AND INSTALLATION RATES; APPROVING CORRECTED
<br />MAXIMUM PERMITTED EQUIPMENT RENTAL, SERVICE AND
<br />INSTALLATION RATES FOR RATES EFFECTIVE JANUARY 3, 2001
<br />THROUGH DECEMBER 31, 2001; DISAPPROVING CERTAIN ACTUAL
<br />EQUIPMENT RENTAL, INSTALLATION AND SERVICE RATES
<br />CHARGED BY ADELPH~A AND ORDERING RATE REDUCTIONS AND A
<br />REFUND TO SUBSCRIBERS; AND DECLARING AN EMERGENCY.
<br />
<br /> WHEREAS, Adelphia Communications Corp. acquired from Cablevision of the
<br />Midwest, Inc., d.b.a. Cablevision (collectively, "Grantee") on November 1, 2000 certain fights to
<br />provide cable televi.sion service in the City of Lakewood; and
<br />
<br /> WHEREAS, in accordance with applicable provisions of the. Cable Consumer Protection
<br />and Competition Act of 1992, as amended, (the "Cable Act') and rules adopted by the Federal
<br />Communications Commission ("FCC',), the City has undertaken all appropriate procedural steps
<br />to regulate the basic cable service tier and related installation and equipment charges; and
<br />
<br /> WHEREAS, pursuant to FCC 'regulations, the City received from Grantee an FCC Form
<br />1240 (the "2000 FCC Form 1240") proposing a maximum permitted basic tier cable television
<br />rate of $8.13 per month for the time period January 1, 2001 through December 31, 2001; and
<br />
<br /> WHEREAS, Grantee did not use the correct inflation data in the 2000 FCC Form 1240
<br />which resulted in a Maximum Permitted basic-tier rate that is unreasonable under FCC
<br />regulations; and
<br />
<br /> WHEREAS, the City has received from Grantee written confirmation approving a revised
<br />FCC Form 1240 produced by the City in accordance with FCC regulations proposing a corrected
<br />Maximum Permitted basic tier cable television rate of $8.02 per month, for the period of January
<br />1, 2001 through December 31, 2001 (the "Revised 2000 FCC Form 1240,' attached as Appendix
<br />I and made a part of this Resolution by reference); and
<br />
<br /> WHEREAS, pursuant to FCC regulations, the City received from Grantee an FCC Form
<br />1205 (the "2000 FCC Form 1205") proposing maximum permitted equipment rental, sendee and
<br />installation rates for the time period January 1, 2001 through December 31, 2001; and
<br />
<br /> WHEREAS, in order to determine the appropriateness of the proposed equipment rental,
<br />service and installation rates, the City found it necessary to request additional information; and
<br />
<br /> WHEREAS, Grantee did not use. correct data for salaries and benefits, supplies, utilities,
<br />and other costs defined as insurance, repairs and maintenance and inter-company allocations in
<br />its calculation of its proposed Hourly Sen, ice Charge; and
<br />
<br /> WHEREAS, Grantee's incorrect calCulation of the Hourly Service Charge resulted in
<br />proposed maximum pm'miRed equipment related fa*es that are higher than permitted under FCC
<br />regulations; and
<br />
<br /> WHEREAS, Grantee adjusted its basic tier and equipment related rates in May, 2001;
<br />and
<br />
<br /> WHEREAS, all rate justification information supplied to the City by Grantee is .on file
<br />with the Council Clerk and made a part of this Resolution by reference; and
<br />
<br /> WHEREAS, in order to accomplish its review, the City scheduled sufficient time at the
<br />October 10", 2001 Council Meeting to provide interested parties, including Grantee, the
<br />opportunity to present information regarding the aforesaid issues, if any, to the City; and
<br />
<br />
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