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<br /> LAw ocs1c55 North Suburban Cable
<br /> STERN. LEVINE, SCHWARTZ. LIFSON 6 CREIGHTON Communications Commission
<br /> A_..MO,YL A..00IA.gK May 22, 1984
<br /> 5005 OLD CEDAR LAKE ROAD Page 11m
<br /> ST.LOUIS PARK.MINNESOTA 55416 ------------------------
<br /> MII III M-01120
<br /> after review of the documentation from Group W. the cities upon recommendation
<br /> into effect by
<br /> SOBS T1.SnRN of viour Cable Commission deciding not t0 object b0 the rate�char�ge�If therate
<br /> Cable�Cammisaion or of
<br /> AOB[AT M.LEVIN5
<br /> NICNASL O.SCNwAArt
<br /> SCOrTA.IJ SON the cities Object to the proposed rate change, Group W mould have to follow all
<br /> rNOMAS o.CREIONTON MDURAN" of the procedures which previously existed for the changing of a rate, requiring
<br /> JOHSRIAM/ COREER
<br /> Y the approval of the cities with the recommendation of the Cable Commission prior
<br /> DATE: May 22, 1984 to any implementation of said rate increase.
<br /> In other words, the original Franchise provided that for any rate modification
<br /> TO: City Administrators -- North Suburban Cable Communications Commissionthe city would have to hear the request and enter into rate hearings. This pro-
<br /> FROM: Thomas D. Creighton, Iagal Counsel of Oahmisaion47,4
<br /> cess could be very cumbersome for a number of the rate increases that you may
<br /> See in the future. Under the proposed Ordinance Amendment, the City Council
<br /> would still receive all of the documentation it had previously received for a
<br /> RE: Franchise Amendments. Settlement with Group W. and Change in Rates proposed rate increase, but, by not acting, the rate would be permitted to go
<br /> into effect.
<br /> Also included in this packet is an amended Exhibit A. As you remember, Exhibit
<br /> As you know, Group W Cable of the North Suburbs is constructing a cable com- A included all of the rates proposed by Group W. Group W has requested, and the
<br /> munications system in the ten cities of the North Suburban area. As you may Commission has approved with recommendations that it be sent to you for your
<br /> also knave, in the Fall of 1983, the Commission and W were in dispute puts approval, a change in the $7.95 rate for movie channels. Group W has proposed a
<br /> regarding the construction timetable, rates, changing the system from an acts- $10.75 rate for premium channels, which the Commission recommends you approve.
<br /> vated dual cable system to an activated single cable, and various issues This new rate has been analyzed and the Commission's consultant recommends it is
<br /> regarding the providing of local origination and access services and equipment. necessary to achieve an economically viable system. Other minor changes have
<br /> For the last eight months, Group W and the North Suburban Cable Communnications been made in the rate schedule, Exhibit A. to reflect the unavailability of pre-
<br /> Commission on your behalf have been negotiating a settlement of the dispute from mium services that were originally proposed in the system. The Disney Channel
<br /> the Fall of 1983. has been added, and such services as the Entertainment Channel and public
<br /> Please find enclosed for subscriber network, which are no longer available to cable companies, have been
<br /> your review and action a Cable Communications Offering deleted. Also, the ten percent discount on multiple movie channels has been
<br /> Amendment Agreement No. 1 incorporating all of the terms of the agreement bet- eliminated. Group W packages most of their service for reduced rates already,
<br /> ween the Commission and Group W Cable. The Commission at its last meeting and the additional bookkeeping burden for individual subscribers with ten per-
<br /> adopted this Amendment Agreement and recommended it be sent on to its City cent discount rates was believed by the Commission to be unnecessary and cumber-
<br /> Councils with a request for approval. some.
<br /> Also included and resulting from the negotiations is a proposed Ordinance ' Also included is an amendment to the construction time schedule. This amendment
<br /> Am—imeht. 'the proposed changes occur in the Ordinance section regarding rate would allow Group W to complete construction of the system by November 12, 1984.
<br /> change procedures. access channel allocations, system design, subscriber rates. The previous deadline was May 12. 1984.
<br /> and construction timetable. Originally, any rate changes werered to be
<br /> brought to the Cable Commission and the member cities with the cciities having 30 J As you remember, Group W proposed to build and activate a dual cable system with
<br /> days to approve or deny any rate changes. Since the gime of the adoption of the i approximately 108 charnels. Group W will still build a dual cable system in the
<br /> original Franchise ordinance, the rate regulatory climate has considerably j North Suburban area. However, upon your approval of the Amendment Agreement and
<br /> changed nationwide. Particularly, the federal government has preempted the the enclosed Franchise Amendments regarding construction design, Group W will be
<br /> regulation of any premium service rates for any services such as Home Box Office permitted to activate only the first cable. The cable commission during its
<br /> and Showtime. Additionally, city governments have found that within certain regularly scheduled evaluation sessions of the third, fifth, eighth and tenth
<br /> limits, it is easier to adopt a "passive rate regulation" as opposed to an years of the Franchise, will analyze the need for additional charnel capacity.
<br /> active rate regulation climate. In other words. Group W would still follow the If such a need is found, the sections of the Franchise regarding the requirement
<br /> same procedures by bringing proposed rate charges to the City Council. However, 1 of technological upgrading of the system will be utilized by the Commission in
<br /> an attempt to increase channel capacity.
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