06-13-1984 Council Agenda - Laserfiche WebLink

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North Suburban Cable Communications Commission May 22, 1984 Page TWo after review of the documentation from Group W, the cities upon recommendation of your Cable Commission could allow a proposed rate to go into effect by deciding not to object to the rate change. If the Cable Commission or any of the cities object to the proposed rate change, Group W would have to follow all of the procedures Which previously existed for the changing of a rate, requiring the approval of the cities with the recommendation of the Cable Commission prior to any implementation of said rate increase. In other words, the original Franchise provided that for any rate modification the city would have to hear the request and enter into rate hearings. This pro- cess could be very cumbersane for a number of the rate increases that you may see in the future. Under the proposed Ordinance Amendment, the City Council would still receive all of the documentation it had previously received for a proposed rate increase, but, by not acting, the rate would be permitted to go into effect. Also included in this packet is an amended Exhibit A. As you remember, Exhibit A included all of the rates proposed by Group W. Group W has requested, and the Commission has approved with recommendations that it be sent to you for your approval, a change in the $7.95 rate for movie channels. Group W has proposed a $10.75 rate for premium channels, which the Commission recommends you approve. This new rate has been analyzed and the Commission's consultant recommends it is necessary to achieve an economically viable system. Other minor changes have been made in the rate schedule, Exhibit A, to reflect the unavailability of pre - mium services that were originally proposed in the system. The Disney Channel has been added, and such services as the Entertainment Charnel and public subscriber network, which are no longer available to cable companies, have been deleted. Also, the ten percent discount on multiple movie channels has been eliminated. Group W packages most of their service for reduced rates already, and the additional bookkeeping burden for individual subscribers with-ten per- cent discount rates was believed by the Commission to be unnecessary and cumber - sane. Also included is an amendment to the construction time schedule. This amendment would allow Group W to complete construction of the system by November 12, 1984. The previous deadline was May 12, 1984. As you remember, Group W proposed to build and activate a dual rahle system with approximately 108 channels. Group W will still build a dual cable system in the North Suburban area. However, upon your approval of the Amendment Agreement and the enclosed Franchise Amendments regarding construction design, Group W will be permitted to activate only the first cable. The cable commission during its regularly scheduled evaluation sessions of the third, fifth, eighth and tenth years of the Franchise, will analyze the need for additional chacuuel capacity. If such a need is found, the sections of the Franchise regarding the requirement of technological upgrading of the system will be utilized by the Commission in an attempt to increase channel capacity.