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1996-44RESOLUTION NO. 96- 44 A RESOLUTION DECLARING THE VILLAGE OF BUFFALO GROVE'S OBJECTION TO CONTINENTAL CABLEVISION'S SEPTEMBER 1, 1996 INCREASES WHEREAS, on September 1, 1996 Continental Cablevision implemented a statewide calculation for equipment and installation charges; and, WHEREAS, such modification arises out of the Federal Communications Commission and Continental Cablevision's execution of the Social Contract for 1995 and as amended for 1996; and, WHEREAS, the Social Contract provided as follows: d. Equipment and Installation Rates for All Systems. In order to reduce accounting and regulating costs, minimize fluctuations in consumer equipment prices, and eliminate large increases in such prices as system upgrades occur pursuant to the terms of Section / //.E., Continental will be permitted to average broad categories of equipment -- such as addressable and nonaddressable converters and remotes -- and various installment costs for a// its systems on a state -wide or region - wide basis. For purposes of this contract, "region- wide" refers to Continental's five operating regions described in Exhibit 6 to this Contract, and any reasonable modifications to such regions; and, WHEREAS, pursuant to said provision of the Social Contract, Continental notified the Village that it will implement the following rate changes effective September 1, 1996: Service Existing Rate New Rate %Increase /Decrease Installation $20.28 $28.87 +42.4 Aerial Installment 34.11 28.87 -15.4 Underground 1 Reconnection 17.38 18.27 +5.1 Reconnection 25.00 25.00 -0- Additional Outlet 9.66 15.33 +58.7 (with primary connection) Additional Outlet 12.88 21.42 +66.3 (with separate trip) Hourly Service Charge 19.31 27.06 +40.1 Zenith Converter 1.56 3.10 +98.7 Zenith Remote Control .27 .40 +48.1 Scientific Atlanta Converter 2.31 3.10 +34.2 Scientific Atlanta Remote .27 .40 +48.1 Control Jerrold Converter 3.10 3.10 -0- Jerrold Remote Control .40 .40 -0- WHEREAS,after calculating the percentage increases, it is determined that the average increase of all services and equipment provided is 49.08 %; and, WHEREAS, it has become wholly apparent to the President and Board of Trustees of the Village of Buffalo Grove that this increase, as authorized under the Social Contract, which was approved by the Federal Communications Commission, has completely failed in its attempt to "minimize fluctuations in consumer equipment prices and eliminate large increases in such prices as system upgrades occur.... "; and, WHEREAS, the Village President and Board of Trustees would point out that the actual system upgrade has yet to occur which does not lead to an optimistic prediction towards next year's recalculation of rates to be effective September 1, 1997; and, 2 r 1. � L_I WHEREAS,the Village President and Board of Trustees strongly objects to the proposed rate increases as being unreasonable and unwarranted based on the cable services being provided and sees the requested increase as an apparent abuse of the Buffalo Grove cable television consumer. NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Trustees of the Village of Buffalo Grove, Illinois, that the rate increases implemented on September 1, 1996, by Continental Cablevision are hereby objected to as being totally excessive, unjustified, and unreasonable. BE IT FURTHER RESOLVED that the Village Manager is hereby directed to provide every member of the Federal Communications Commission with a certified copy of this Resolution. The Village Attorney is hereby directed to file a Form 329 Complaint of Excessive Rate Increase with the Federal Communications Commission, and the citizens of Buffalo Grove are requested to contact the Federal Communications Commission condemning Continental Cablevision for these excessive rate increases. AYES: 6 - Marienthal, Reid, Rubin, Braiman, Hendricks, Glover NAYES: n - Nnne ABSENT: 0 - None PASSED: September 9, 1996 APPROVED: September 9, 1996 ATTEST: Villag lerk APPROVED: ice/ SIDNEY H. MATHIAS, Village President 3