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RESOLUTION NO. 1941 <br />CITY OF MOUNDS VIEW <br />COUNTY OF RAMSEY <br />STATE OF 14INNESOTA <br />RESOLUTION DISAPPROVING AN INCREASE IN BASIC CABLE <br />,ELEV'GION SERVICE RATES By GROUP W CABLE OF !nt NUNTH <br />SUBURBS, INC. <br />WHEREAS, pursuant to City Ordinance No. 319 Group W <br />Cable of the North Suburus, Inc. ('Group W") has been <br />granted a non-exclusive revocable franchise to operate, <br />construct, and maintain a cable television system within <br />the City; and <br />WHEREAS, the franchise agreement in effect provides <br />for the regulation of basic cable service rates by the City; <br />and <br />WHEREAS, the franchise agreement provides for a <br />passive rate review procedure to increase Basic Service <br />Rates wherein Group W must give written notice of a proposed <br />increase to the City and the North Suburban Cable Commission <br />("Commission") 90 days prior to the effective aate of the <br />increase and each proposed rite increase is automatically <br />approved by the City unless expressly disapproved within 90 <br />days by resolution of the Council; and <br />WHEREAS, Group W has given written notice on <br />August 22, 1985 to the Commission of a proposed increase in <br />Basic Service Rare! from $7.95 to $9.95 per month; and <br />WHEREAS, Group W further reques,ed authorization to <br />implement the proposed rate increase immediately rather than <br />in 90 days; and <br />WHEREAS, the Commission recommer.dE to the City that <br />no action be taken to disapprove the increase in Bas.c <br />Service Rates and that Group W be permitted to implement the <br />proposed rate increase immediately; and <br />WHE.CEAS, the City has reviewed information provided <br />uy Group W and the Commission regarding the proposed rate <br />increase and current Federal Law relating to tLq regulation <br />of Cable television- and <br />WHER-AS, the City is not convinced of the fact that a <br />rate increase is necessary at this time in view of the <br />admitted lack of success in Group W's current marketing <br />program as evidenced by a penetration rate in the City of <br />Mounds View of less than 20 percent; and <br />