HomeMy WebLinkAbout11-20-85-08 - Resolution - 11/20/1985RESOLUTION NO. 11-20-85-08
A RESOLUTION SUSPENDING THE OCTOBER 31, 1985, RATE INCREASE
BY McCAW BCS COMMUNICATIONS, INC.
WHEREAS, on October 31, 1985, McCaw BCS Communications,
Inc., submitted a rate increase proposal; said proposal
requested a rate change from $12.50 to $15.00, a twenty
percent increase, for basic television service.
WHEREAS, the franchise agreement between McCaw BCS Communi-
cations, Inc., and the City of College Station,approved by
the City Council on September 27, 1984, and accepted by
McCaw BCS Communications, Inc., on October 16, 1984, pro-
vides as follows:
Whenever the company intends to revise its
rates, it shall give the City written notice
of the proposed change at least thirty days
prior to the implementation of the new rates.
Within said period, City Council may pass a
resolution suspending such rate increase for a
period not to exceed thirty days (plus such
number of days as shall elapse between City's
request for information and company's delivery
of same upon passage of same). The company
shall present necessary backup information for
review and analysis by the City, which shall
then schedule a public hearing for considera-
tion of the proposed rate within twenty-one
days after receipt of such information. Any
cost of analysis of such information by the
City shall be at City expense.
WHEREAS, on November 4, 1985, the duly appointed Franchise
Committee of the City of College Station met. After review
of the October 31, 1985, rate increase request submitted by
McCaw BCS Communications, Inc., the Franchise Committee
determined that there was insufficient information to
establish the reasonableness of said request. Said Fran-
chise Committee makes the recommendation to the City Coun-
cil that the Council pass a resolution suspending the pro-
posed rate change for a period of thirty days, and that
McCaw BCS Communications, Inc., submit more information to
the City Council for its review.
WHEREAS, the City Council of the City of College Station
has reviewed the proposal of the Franchise Committee and
determined that a consultant should be appointed for the
review of the rate change proposal.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of College Station hereby suspends the October 31,
1985, rate increase proposal submitted by McCaw BCS Commun-
ications, Inc., for a period not to exceed thirty days.
Furthermore, the City Council of the City of College Sta-
tion hereby appoints Jack Hopper as consultant to review
said request. The City hereby requests that the following
additional information, but not limited to, be supplied by
McCaw BCS Communications, Inc., to the consultant for his
review:
Current annual reports
Most recent balance sheet
Most recent income statement
Definition of depreciation inclusive of the
items used in calculating depreciation of
McCaw BCS Communications, Inc.
Amortization schedule and explanation of how
it is applied to capital investment
Explanation of interest expense
Breakdown of revenue generated by basic and
movie channels and other sources of income
Detailed allocation of headquarters and
regional expenses allocation
Calculation of return on investment
The consultant is hereby authorized to require any addi-
tional information necessary to carry out the audit func-
tion authorized by this franchise.
PASSED, ADOPTED and APPROVED this 20th day of
1985.
November
ATTEST
City S ecre~