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HomeMy WebLinkAbout61-75 RESOLUTIONRESOLUTION NO.(' -1.S A RESOLUTION EXPRESSING THE POSITION OF THE FAYETTEVILLE BOARD OF DIRECTORS ON REQUESTED RATE INCREASES BY WARNER CABLE TVC CORP. FOR CABLE TELEVISION SERVICE FURNISHED BY SAID COM- PANY TO RESIDENTS OF FAYETTEVILLE. WHEREAS, Warner Cable Television operates a cable television system within the City of Fayetteville pursuant to franchise granted by the City; and WHEREAS, said franchise provides that the rates charged by the company for service shall be fair and reasonable and designated to meet all necessary costs of service, including a fair rate of return on the value of the system as a going con- cern, and WHEREAS, the cable television system operated by Warner with- in the City is in need of extensive repair and partial rebuilding, and WHEREAS, said repairs and partial rebuilding will necessitate a capital expenditure by Warner Cable Television of approximately $700,000.00, as presently estimated; and WHEREAS, the Board of Directors recognizes that Warner Cable Television Company will not commit itself to such a large capital expenditure without a monthly rate increase of 75 cents for each primary residential outlet for cable television service provided by said company; and WHEREAS, the Board of Directors recognizes that Warner Cable Television has stated an additional monthly rate increase of not less than One Dollar ($1.00) for each primary residential outlet and 50 cents on secondary outlets will be necessary upon comple- tion of said rebuilding project in order to insure Warner Cable Television a fair rate of return; and WHEREAS, the Board of Directors has ascertained that the citizens of Fayetteville desire for Warner Cable Television to provide reception from at least one Little Rock, Arkansas channel, but present FCC Regulations prohibit Warner Cable Television from providing such reception. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Board of Directors hereby expresses its willingness to grant Warner Cable Television the following rate increases effective upon receipt from Warner Cable Television of a written commitment to undertake a partial rebuilding project of its cable television system within the City at an approximate capital expenditure of $700,000.00 and a commitment that said project will be completed within a reasonable time from the date of said commitment: (a) For each primary residential outlet an increase of 75 cents per month. (b) For connection, relocation, re -connection, re -connection (non -pay), FM connection, and inside move fees an in- crease to $10.00. Section 2. Immediately upon completion of the rebuild, the City agrees to grant the company an appropriate public proceeding affording due process in order to assure that the rates charged cable subscribers by the company are fair and reasonable and designated to meet all necessary costs of service, including a fair rate of return on the value of the system as a going concern. • -2- Section 3. The Board of Directors hereby agrees to work independently, and in conjunction with Warner Cable Television in obtaining FCC approval for Warner Cable Television to provide reception from one or more Little Rock, Arkansas channels to the citizens of Fayetteville. PASSED AND APPROVED THIS ATTEST: UdEL APPROVED: 2?7u2714? d TY CLERK 1 i 1 1975.