CP 2000-06-27 NOTICE OF CITY COUNCIL MEETING AND AGENDA
JUNE 27, 2000
CANDY SHEEHAN, LARRY WHEELER, Place 6
Mayor Mayor Pro Tem
GREG GARCIA, Place i MARSHA TUNNELL, Place 4
JAYNE PETERS, Place 2 DOUG STOVER, Place 5
PAT KEENAN, Place 3 BILL YORK, Place 7
JIM WITT, City Manager
MEETING TIME AND PLACE:
Executive Session 6:00 p.m. ist FI. Conf. Room(Closed to the Public)
Work Session Immediately Following Ist FI. Conf. Room(Open to the Public)
Regular Session 7:30 p.m. Council Chambers (Open to the Public)
Notice is hereby given that the City Council of the City of Coppell, Texas will meet
in Regular Called Session on Tuesday, June 27, 2000, at 6:00 p.m. for Executive
Session, Work Session will follow immediately thereafter, and Regular Session will
begin at 7:30 p.m., to be held at Town Center, 255 Parkway Boulevard, Coppell,
Texas.
As authorized by Section 551.071(2) of the Texas Government Code, this meeting
may be convened into closed Executive Session for the purpose of seeking
confidential legal advice from the City Attorney on any agenda item listed herein.
The purpose of the meeting is to consider the following items:
ITEM # ITEM DESCRIPTION
REGULAR SESSION (Open to the Public)
1. Call to order.
EXECUTIVE SESSION (Closed to the Public)
2. Convene Executive Session
A. Section 551.071, Texas Government Code - Consultation with City
~ ~.f Attorney.
1. Zoning Case #ZC-605(CH).
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ITEM # ITEM DESCRIPTION
WORK SESSION (Open to the Public)
3. Convene Work Session
(~Q.,~ A. Discussion of Agenda Items.
B. Mayor and Council Budget
Discussion of Service Organization Funding Levels
2) Line Item Detail
REGULAR SESSION (Open to the Public)
4. Invocation.
5. Pledge of Allegiance.
6. Presentation of a plaque honoring Tim Brancheau for being nominated to
receive the 2000 Governor's Volunteer Award in recognition of outstanding
I (pClj~,, service to the citizens of Coppell.
7. Consider approval of a Proclamation proclaiming July 24th thru July 29th as
C~ pc,,.~e.,S"McGruff's 20th Birthday Week", and providing City Council support and
endorsement of McGruff's 20th Birthday Week activities and authorizing the
Mayor to sign.
}f>~9~ 8. Presentation of a plaque made from the last Liberty Tree by the Peters
Colony Daughters of the American Revolution.
I p~ ~)ecJ. Citizen's Appearances.
CONSENT AGENDA
10. Consider approval of the following consent agenda items:
I1 ~ "3 ¢'''q A. Consider approval of minutes: June 13, 2000.
B. Consider approval of an ordinance establishing the maximum
I I f,, c5 permitted equipment rate charged by Paragon Cable; and
authorizing the Mayor to sign.
13 (Oo.~C5 C. Consider approval of an ordinance setting the maximum permitted
basic service tier rates charged by Paragon Cable; and authorizing
the Mayor to sign.
Commissioners Court to carry forward the current City of Coppell
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ITEM # ITEM DESCRIPTION
CDBG funding, to fiscal year 2000-2001, and authorizing the Mayor
to sign.
E. Consider approval of an Interim Right-of-way Use Agreement
between the City of Coppell and Communication Systems
r,l~)~.~C,~ Development, Inc. d/b/a Metromedia Fiber Network Services Texas,
Inc. for use of the right-of-way to install telecommunications lines
and related appurtenances; and authorizing the Mayor to sign.
r7 ¢2~,,~-~ F. Consider approval of an Interim Right-of-way Use Agreement
between the City of Coppell and Caprock Telecommunications
Corporation for use of the right-of-way to install telecommunications
lines and related appurtenances; and authorizing the Mayor to sign.
END OF CONSENT
11. Review and adoption of Council goals as identified as Council Retreat held
· u~-~,~ on June 9 and 10, 2000.
12. City Manager's Report.
1¢::)~-~'-~ A. Update on Wagon Wheel and MacArthur Parks.
13. Mayor and Council Reports.
A. Report by Mayor Sheehan regarding the Opening of the
~ P,_, Aquatics/Recreation Center.
B. Report by Mayor Sheehan regarding the 4th Of July activities.
C. Report by Councilmember Peters regarding Grapevine Springs Park
Commemoration Celebration on September 23, 2000.
14. Necessary Action Resulting from Executive Session.
WORK SESSION (Open to the Public)
15. Convene Work Session
A. Continuation of Mayor and Council Budget, if necessary
1) Discussion of Service Organization Funding Levels
°",St" 2) Line Item Detail
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ITEM # ITEM DESCRIPTION
REGULAR SESSION (Open to the Public)
16. Necessary action resulting from Work Session.
Adjournment.
Candy Sheehan, Mayor
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CERTIFICATE
I certify that the above Notice of Meeting was posted on the bulletin board at the
City Hall of the City of Coppell, Texas on this day of ,
2000, at
Libby Ball, City Secretary
DETAILED INFORMATION REGARDING THIS AGENDA IS AVAILABLE
AT THE WILLIAM T. COZBY PUBLIC LIBRARY AND ON THE CITY'S
WEBSITE (www. ci.coppell.tx.us) UNDER PUBLIC DOCUMENTS,
COUNCIL PACKETS.
PUBLIC NOTICES
STATEMENT FOR ADA COMPLIANCE
The City of Coppell acknowledges its responsibility to comply with the Americans With
Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require
special services (i.e. sign interpretative services, alternative audio/visual devices, and
amanuenses) for participation in or access to the City of Coppell sponsored public
programs, services and/or meetings, the City requests that individuals make requests for
these services forty-eight (48) hours ahead of the scheduled program, service and/or
meeting. To make arrangements, contact Vivyon V. Bowman, ADA Coordinator or other
designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1-800-735-2989).
IN COMPLIANCE WITH CITY OF COPPELL ORDINANCE NO. 95724
Carrying of a concealed handgun on these premises or at any official political meeting in
the City of Coppell is illegal.
Es ilegal Ilevar consigo un arma de fuego oculta, adentro de este edificio, o en cualquier
junta oficial de politica en la ciudad de Coppell.
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-~(51~j]~E~ AGENDA REQUEST FORM
^~t, e ~ "~~ CO~~ ~E~G: J~e 27, 2000 ITEM ~ __~
EXECUTIVE SESSION
A. Section 551,071, Texas Government Code - Consultation with City Attorney:
1. Zoning Case #ZC-605(CH).
SUBMITTED BY: Jim Witt
TITLE: City Manager INITIALS
)~z~~fi AGENDA REQUEST FORM
s -CITY~,~ ~ COUNCIL MEETING: June 277 2000 ITEM # ~-J ~
WORK SESSION
A. Discussion of Agenda Items.
B. Mayor and Council Budget
1) Discussion of Service Organization Funding Levels
2) Line Item Detail
CITY MANAGER'S REVIEW: __
AGENDA REQUEST FORM
CITY CO~C~ ~ET~G: June 27, 2000 ITEM ~ ~
I I II III I[
~EM C~ON: Presentation of a plaque honor~g T~ Brancheau for berg no~ated m receive ~e
2000 Governor's Volunte~ A~d ~ reco~i~on of ou~&g se~ to ~e d~ens of CoppeH.
SUBMITTED BY: Gary Sims
TITLE: Director of Parks and Leisure Services
STAFF COMMENTS:
BUDGET AMT. $ AMT. EST. $ +\-BID $
FINANCIAL COMMENTS:~'X,N'
,
DIP,. INITIALS:/~ FIN. REVIEV~ CITY MANAGER REVIEW:
CITY COUNCIL MEETING: June 27, 2000 ITEM #
ITEM CAPTION:
Consider approval of a Proclamation proclaiming July 24~ thru July 29~ as "McGruff's 20th Birthday
Week", and providing City Council support and endorsement of McGruff's 20th Birthday Week activities and
authorizing the mayor to sign.
SUBMITTED BY: Roy L. Osborne
TITLE: Chief of Police
STAFF COMMENTS:
McGruff and the Coppell Police Department consider the young citizens of Coppell to be one of their
best team members and helpers in the fight against crime. To help celebrate McGruff's 20 years of preventing
crime, the Coppell Police Department has invited approximately 500 children who are involved in the Camp-
Do-It-All and the YMCA summer camp programs to enter a crime prevention poster contest. Entries will
deal with kids and their role in crime prevention with topics including "Police & Kids Together, Preventing
Crime", "Kids as Neighbors Participating in National Night Out", and "Kids Keeping Crime Out of
schools". Judging will be performed ~by the Citizens Police Academy Coppell and winning entries will be
displayed at the Coppell Justice Center. McGruff will visit the camps to present the award to the winners in
the celebration of his 20m birthday.
BUDGET AMT. $ AMT. EST. $ +X-BID $
FINANCIAL COMMENTS:9\b
t __,F' - ' Se
DIR. INITI VIEW:~ CITY MANAGER REVIEW:
ell a e BeS e
Ag d R q Document Name: )mcgruff. doc
Proclamation
WHEREAS, McGruff, the spokesdog for crime prevention, celebrates his 20th
anniversary in crime prevention this year; and
WHEREAS, McGruff is one of the most recognized and trusted characters in the United
States who teaches children how to protect themselves against the dangers of alcohol, tobacco
and other drugs; and
WHEREAS, McGruff helps spread the message of crime prevention and effectively
teaches children how to handle bullies, what to do if they find a gun or other weapon and how to
protect themselves when using the Internet; and
WHEREAS, McGruff is a welcomed and necessary element in building safer
communities and reducing crime through comprehensive crime prevention strategies and through
his support of National Night Out activities on August 1st as a way of saying "We will work
together for the common good of preventing crime"; and
WHEREAS, McGruff:recognizes that although he has become a celebrity, he is still a
dog in a trenchcoat with a job to do.
NOW, THEREFORE, I, Candy Sheehan, Mayor of the City of Coppell, do hereby
proclaim the week of July 24 through July 29, 2000 as
"McGruff's 20th Birthday Week"
in the City of Coppell, Dallas County, Texas. The Mayor and City Council urge all citizens and
business to join with McGruff in "Taking a Bite Out of Crime" and show their support for
McGruff' s efforts in fighting crime.
IN WITNESS TItEREOF, I have set my hand and caused the seal of the City of
Coppell to be affixed this day of June 2000.
Candy Sheehan, Mayor
ATTEST:
Libby Ball, City Secretary
CITY8 ~ COUNCIL MEETING: June 27, 2000 ITEM
ITEM CAPTION: Presentation of a plaque made from the last Liberty Tree by the Peters Colony Daughters
of the American Revolution.
SUBMITTED BY: Jim Witt
TITLE: City Manager
STAFF COMMENTS:
BUDGET AMT. $ AMT. EST. $ +\-BID $
FINANCIAL COMMENTS.~X~
DIR. INITIALS: FIN. REVIEW~ CITY MANAGER REVIEW:
Agenda Request Form - Revised 5/00 Document Name: !Liberty
AGENDA REQUEST FORM
COUNCIL MEETING: June 27, 2000 ITEM #
CITIZENS' APPEARANCES
ORDINANCE NO. 94665
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, ESTABLISHING RULES, TIMES
AND PROCEDURES FOR CONDUCTING CITY COUNCIL MEETINGS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, THE
FOLLOWING ARE HEREBY ADOPTED AS THE RULES, TIMES AND PROCEDURES FOR
CONDUCTING COUNCIL MEETINGS OF THE CITY COUNCIL OF THE CITY OF
COPPELL, TEXAS:
The City of Coppell Code of Ordinances is hereby amended by adding to Chapter One (1) the
following new Article 1-10:
ARTICLE 1 - 10
RULES, TIMES AND PROCEDURES FOR CONDUCTING
CITY COUNCIL MEETINGS
1-10-6.2.1 CITIZENS APPEARANCE
1-10-6.2.1 Subjects Not Appearing on the Agencla
Persons wishing to speak on any matter other than an item scheduled for a public hearing on the agenda,
must sign a register and list their residence address, provided by the City Secretary on a table outside the
Council Chambers, and such persons may be heard only at the "Citizens Appearance" portion of a regular
meeting or special meeting. Each speaker must state his or her name and address of residence. Presentations
by individuals during the "Citizens Appearance" shah be limited to two (2) minutes each. An individual
speaker's time may be extended for an additional two (2) minutes with the approval of a majority of the
Council members present. There shall be a cumulative limit of twenty (20) minutes allotted of any regular or
special Council meeting. Those persons who signed up to speak at the "Citizens Appearance" shall be called
upon in the order that they have signed the provided register. No personal attacks by any speaker shah be
made against any member of the Council, Mayor, individual, group or corporation (Charter Article 3,
Section 3.12).
CITY MANAGER'S REVIEW:
'~61~ijI~i2L AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of minutes: June 13, 2000.
SUBMITtED BY: Libby Ball
TITLE: City Secretary
STAFF COMMENTS:
DIR. INITIALS: FIN. REVIEW~f CITY MANAGER REVIEW:
Agenda Request Form - Revised 5/00 Document Name: %minutes
MINUTES OF JUNE 13, 2000
The City Council of the City of Coppell met in Regular Called Session on
Tuesday, June 13, 2000, at 6:00 p.m. in the City Council Chambers of Town
Center, 255 Parkway Boulevard, Coppell, Texas. The following members were
present:
Candy Sheehan, Mayor
Larry Wheeler, Mayor Pro Tem
Greg Garcia, Councilmember
Jayne Peters, Councilmember .......
Pat Keenan, Councilmember
Marsha Tunnell, Councilmember
Doug Stover, Councilmember (late arrival)
Bill York, Councilmember
Also present were City Manager J~: Witt, Deputy City SecretaD' Kathy
Wilkerson and City Attorney Robert ~r.
REGULAR SESSION .. {Open to the Public)
1. Call to order.
Mayor Shcehm~ called the meeting to order and adjourned into Executive
EXECUTIVE SESSION
:iii!i ........ {Closed to the Public)
2. Convene Executive Session
A. Section 551.071, Texas Government Code - Consultation
with City Attorney:
1. Update on Cerulean.
:~:.:.:~ji:i~':"'
'Mayor Sheehan convened into Executive Session at 6:16 p.m. as allowed under
the above-stated article. Mayor Sheehan adjourned the Executive Session at
6:18 p.m. and opened the Work Session.
WORK SESSION {Open to the Public)
3. Convene Work Session
A. Review City Called Rezoning Cases.
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B. Discuss Appointment to Library Board.
C. Board and Commission Attendance Procedures,
D. Discussion of Agenda Items.
Councilmember Stover arrived at the beginning of the Work Session.
REGULAR SESSION (Open to the Public)
4. Invocation.
in the
Consider approval of the following c~sent agenda items:
A. Consider approval of minutes: May 9-3, 9-000
Land Use and Development !i
B. Consider approval of an Ordinance for Case No. PD-184,
St. Andrews Manor, zoning change request from A
(A~riculture) to PD-SF-ED (Planned Development, Single
Family-Estate District), to allow the development of a
sinbe family home on approximately S.1 acres on
:!¢::::i:.i!:! .......property located along the north side of DeForest Road,
approximately 9-00 feet west of Stratford Lane; and
authorizing the Mayor to si~.
C. Consider approval of an Ordinance for Case No.
Siena Pasta 8s Pizza, zoning change from R (Retail} to R-
S.U.P (Retail, Special Use Permit), to allow operation of a
3,000 square foot restaurant with Private Club to permit
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the sales of alcoholic beverages (beer and wine only)
located at 780 S. MacArthur Boulevard, in the Riverchase
Plaza; and authorizing the Mayor to sign.
D. Consider approval of an Ordinance for Case No. PD-98R,
Village at Cottonwood Creek, Section. 1, zoning change
request for property zoned PD-98 (Planned Development-
98, Single Family-9), amending the planned development
conditions to allow for the reduction of the 8' side yard
setback to 5' and to permit the construction of a garage
and a family room on approximately 0.8 acres of land
located at 226 Winding Hollow Lane; and authorizing the
Mayor to sign.
E. Consider approval of an Ordinance for Case No. ZC-600,
Boren Addition, zoning change request from MF-2 (Multi-
family-2) to SF-12 (Single Family-12), to allow an existing
sinFie family home..=.;?iiO~ approximately 10.4 acres of
Crossing and Beverly Drive; and authorizing the Mayor to
F. Consider approval of an Ordinance for Case No. ZC-602,
Beck Estates, zoning change request from A (A~x4culture)
to SF-12 (SinFie Family-12) to allow the development of a
sinFie-family residence on approximately one acre of
property located at 824 DeForest Road; and authorizing
the Mayor to sign.
G. Consider approval of an Ordinance for Case No. S-1171R,
Coppeil Home D~cor, zoning change request for property
zoned HO-R-S.U.P {Historic Overlay Retail, Special Use
Permit), by amending the use and the sign permitted in S-
1171 from a beauty shop to a general retail store on
:~i~!~:::=~i!!! ......approximately 0.16 acres of property located at 456
Bethel Road, east of Coppell Road; and authorizing the
Mayor to sign.
H. Consider approval of an ordinance amending Section 8-1-
3 of the Code of Ordinances of the City of Coppell
establishing 40 miles per hour as the maximum prima
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facie speed limit on Wrangler Drive from Belt Line Road
to Freeport Parkway; and authorizing the Mayor to sign.
I. Consider approval of a License Agreement with Dallas
Area Rapid Transit System (DART) for the purpose of
obtaining necessary slope easements and right-of-way for
the construction of portions of the Belt Line Road project
#ST 93-04 from Denton Tap Road to MacArthur Blvd.; and
authorizing the City Manager to sign.
J. Consider approval of a contract with Turner, Collie ~
Braden, Inc. to perform an updated study associa~ad with
improvements to the Deforest Road Lift Station and force
main in the amount of $56,426.00 as funded in the Series
1999 Water and Sewer Revenue Bonds; and authorizing
the City Manager to sign.
Issues Discussed:
'l'hc folk>wing corrccl ions ni:cd 1.o br made to the minul. cs of I he May 23,
2000 minul. es. I) Item 12 t.mdcr ace!on Councilrecruiter is missp/filed.
2) ll.cm 14 under prcscmlalic}n r{:rnovc~ I~t:psi Cola after Craig Noonan's
rt~le. 3J !ter'n 21G ad¢l al. C()ppcll ~lig!'~ Scl':ool :~ Ihc end o1'
sentence. 4} Item 21L add Col}l}cll bc:i~r¢~ Iligh School.
Action:
Councilmciribt r Tunm:ll moved I.o al'}provc (.;onsc. r:l Ag{mda it~:r'ns A, wilh
corr{:ctions, B carrying Ordiru.~ru:{: No. 9 1500-A-2 17, (; carD, ing
Ordinance No. 91500-A 248, I) carr..xing ()rdimmcc No. 9150() A-249, !':,
car~'ing ()rdinar~cc No. 9 ! 500-A-250, I.' i:~rr.~ it":g Ordinaricc No. 9 ! 500-
A 251, ('~ t:artyir~g C)t"din~lncl: No. 915()()-A 252, II c. art)'ing Or~linani:l: No.
2000-c)i2, I a:'ld ,l. M~wor I.'t't> '~'enl W}'l(~t~iu' sct:o=~dcd II'it: toolion; Ih(:
toolion {:artled 7-() ~ilh Counciinleml}~:rs (~arc:i;i, I}{'.lcrs,
Tu nxu:!l, Sl(}v{:l' arl(I Y(}i'I{ vol il"!!.,, irl f'llx IIr {)1' I h{~ I1'~{}1
:!!~"'.::':"'
8. Consider approval of an Ordinance for Case No. ZC-601, Stuart
O'Neal Office Building, zoning change request from SF-12
{Stngle Family-12) to C {Commercial), to allow the development
of a 4,342 square foot office building on a .5 acre tract of
property located along the north side of W. Sandy Lake Road,
approximately 1,100' west of N. Denton Tap Road; and
authorizing the Mayor to sign.
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Presentation:
Gary Sieb, Director of Planning and Community Services, made a
presentation to the Council.
Action:
Councilmember Tunncll moved to approve Ordinance No. 91500-A-253
for Case No. ZC-601, Stuart O'Neal Office Building, zoning change
request from SF-12 (Single Family-12) to C (Commercial), to allow the
development of a 4,342 square foot office building on a .5 acre tract of
property located along the north side of W. Sandy L~ Road,
approximately 1,100' west of N. Denton Tap Road; and auth~ing the
Mayor to sign. Councilmember York seconded the motion; the motion
carried 7-0 with Mayor Pro Tern Wheelcr and Councilmembers Garcia,
Peters, Keenan, Tunnell, Stovcr and York voting in favor of the motion.
9. Consider approval of the Town Center West, Lots 1 and 2,
Block A, Final Plat, to allow the construction of retail and day
care uses on 4.49 acres of property located at the southwest
corner of Denton Tap Road and West Town Center Drive.
Presentation:
Gat.~' Sic. l.h i)ircctor o1' I'lanning and Coxna~unity Services, made a
i~rtrscnl.al i()rl ti) I. hl: C~)LI :~cil,
A~tion:
Councilmember York moved to approve the Town Center West, Lots 1
and 2, Block A, Final Plat, to allow the construction of retail and day care
uses on 4.49 acres of property located at the southwest corner of Denton
Tap Road and West 'town Center Drive with the kfilowing conditions:
Utility easements being approvcd by TXU;
:!!!iF! .......2)Submittal of a Tree Removal Permit prior to removing
any trees on site, along with a Determination of Tree
Retribution for any tree removal; and
3) Contact the Parks Department at {972) 304-3565 prior
to disturbing any median or R-O-W for location of
possible irrigation piping and wiring which may exist.
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It will be the responsibility of the developer to repair
any improvements damaged by work in the area.
Councilmember Peters seconded the motion; the motion carried 6-1 with
Mayor Pro Tem Wheeler and Councilmembers Garcia, Peters, Keenan,
Tunnell, and York voting in favor of the motion and Councilmember
Stover voting a~ainst the motion.
10. PUBLIC HEARING:
Consider approval of Case No. ZC-6OS(CH), zoning change
request from A (Agriculture) and R IRetaft) to SF-12 {Single
to speak in favox: of this proposal. Jo~.~n Malone, 621 Deforest Road,
Coppell, spoke in favor of this proposal. The Mayor then called for those
wishing to speak a~ainst the proposal. Art Anderson, 120 1 Elm, Suite
5400, Dallas; Bill Andcrson, 327 Tanglewood Lane, Coppell; Glen
[linckley, 12201 Merit #170, Dallas; Brcnda McDonald, 744 Sparrow
Lane, CoppeL1; and Helen Eve Liebman, 854 Cheshire, Coppell, spoke
a~ainst the proposal, Bob Dclsanter, 2704 Anders Lane, Coppell spoke
neither for or ~ainst Item 10.
Councilmembers Tunnell and Stover called for an Executive Session.
EXECUTIVE SESSION (Closed to the Public)
Convene Executive Session
A. Section 551.071, Texas Government Code - Consultation
with City Attorney:
Mayor Sheehan convened into Executive Session at 8:11 p.m. as allowed under
the above-stated article. Mayor Sheehan adjourned the Executive Session at
8:32 p.m. and reopened the Regular Session, continuing with Item 10.
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REGULAR SESSION (Open to the Public)
[Continuing with Item 10)
Issues Discussed:
There were questions regarding the tax implications that the rezoning
would have on the properties, the City's Comprehensive Plan and the
contract's from 1982 and 1987 between the City and Mr. Hinkley's
representatives.
Action:
Councilmember York moved to close the Public Hcaring.!~lapprovc
Case No. ZC-('~05 (CI I), zoning c!'mngt: rcqttesl fi'o:'n A (Agriculture} and R
(I;tt:taii} to S!:-!2 (Singh: Family 121 on approxi~natt;ly 24.7 acres of
property iotaled along tht; north side ol' DeForest Road, cast of
MacArt h u r I.~,u Icvard. M ay,r I'ro T(: m W ht:elcr se;condcd the ITI()I ion.
Councilm¢:n'd~c r K(.'.(; rl~lt'l t'110~ C(i tO [)OS| p()l'te 1. h is il ¢:n~ until th¢: ,J u ly 11th
meeting. Councihrtcn'fi~¢:r i~{:l¢:rs seconded the motion; the motion failed
2-5 with Counc:iimc:ml~c;rs Pett;rs und Kct;nar~ volit~g ir~ favor of
posxponir~g th{: vol.{: unlil Ihe .Jul3 I'.:!' r';we:~::g ~.;:~{.! Ma.~or I'ro Tem
Whoclef and C.uncilmeml~et's ('Iarci~i. Tunrwl!, Stoker ~nd York voting
against postponing tbt: vole t.tnl il tht; ,J u Iv ] 1 "' .":eel itU.;,.
The original motion is Imck on I!'te talkie and a vole was Iht;ll talcen on
t hat tool. ion. The tool ion carried 6-1 x; ith Muyor Ih'o Tctn Whoclef and
Councilmr,'tubers Garcia, Pcl(;rs, Kccnan, Tu.ncli und York voting in
favor of the rnol ion and C.unci!n'3c t;'~!~er Slovcr ~ ot ir;g againsl I hi; motion.
11. PUBLIC HEARING:
Consider approval of Case No. ZC-606 (CH), zoning change from
A (Agriculture) to SF-12 (Single Family-12) on approximately
15.75 acres of property located along the north side of
DeForest Road, east and west of The Estates of Cambridge
Manor.
.::~:':'E-":P:"'
Presentation:
Gary Sieb, Director of Planning and Community Services, made a
presentation to the Council.
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Page 7 of 16
Public Hearing:
Mayor Sheehan opened the Public Hearing and called for those wishing
to speak on this item. Brenda McDonald, 270 N. Denton Tap Road, Suite
100, Coppell and Helen Eve Liebman, 854 Cheshire, Coppell, spoke
against the proposal.
Issues Discussed:
There was discussion regarding the use of a Comprehensive Plan, the tax
implications of the different types of zoning, what the use is on the
Mayor Shct;har~ convt:ncd into I-:xcdutive Session at 9:00 p.m. as allowed under
the at}ov{:-st. at.{:{! article. Maxo.' Shechart adjourned the I-;xccutive Session at
9:24 p.,'n. and rt:opLnt:d thL l~c~;ular Session, continuing with Item 11.
i!i;ii~ii;!i!;'(Open to the Public}
REGULAR SESSION :~:i:i:i:i:i:i:i
~Continuing with Item 11} ~iiii!ii=:!::ii!! ....
Action:
Councilmcr'nl~cr [~.<:cnan moved to close the Public Hearing and approve
Case No. ZC 606 (CII}, zoning change from A (Agriculture) to SF-12
(Single l:amil}-12) on approximately 15.75 acres of property located
:!~iiii~iii~!i .......along the north side of DeForest Road, east and west of The Estates of
Cambridge Manor. Councilmember Tunnell seconded the motion; the
motion carried 6-1 with Mayor Pro Tern Wheeler and Councilmembers
Garcia, Peters, Keenan, Tunnell, and York voting in favor of the motion
and Councilmember Stover voting against the motion.
At this time a short recess was held.
CM06132000
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12. PUBLIC HEARING:
Consider approval of Case No. ZC-607 (CH), zoning change from
LI (Light Industrial) to R (Retafi) on 8.7 acres of property
located at the southeast comer of Sandy Lake Road and State
Road.
Presentation:
Gary Sieb, Director of Planning and Community Services, made a
presentation to the Council.
Mayor Shechart opened the Public Hearing and called for those wishing
to speak on this item. Charles Banbemer, 305 Dogwood Trail, Coppoll,
spoke against the proposal.
Issues Discussed:
There was discussion g diaii!::th of nanbemcr's
Cou ncihnemb{:r Stovcr called 11 .,· an E.\cc. tll i~ e Session at this time.
EXECUTIVE SESSION :!ii.!!i~6losed to the Public)
Convene Executive Session
A. Section 5111.071, Texas Government Code - Consultation
with city Attorney:
Mayor Sheehan conx'cned ii~l.o I.;x{x:ulivc S{:ssion at 10:13 p.m. as allowed
unfh:r the above slmcd arlich:. Ma}or Sheehan adjourned the Executive
Session al ! 0:15 p.n~. and r{'olwncd t hi' I~egu lar Session, continuing with Item
12.
REGULAR SESSION (Open to the Public)
(ConthutnI wtth Item 121
Actton:
Councilmember Tunnell moved to close the Public Hearing and approve
Case No. ZC-607 (CH), zoning change from LI (Light Industrial) to R
CM06132000
Pa~e 9 of 16
(Retail) on 8.7 acres of property located at the southeast comer of Sandy
Lake Road and State Road. Councilmember York seconded the motion;
the motion carried 6-1 with Mayor Pro Tem Wheeler and
Councilmembers Garcia, Peters, Tunnell, Stover and York voting in favor
of the motion and Councilmember Keenan voting against the motion.
13. PUBLIC HEARING:
Consider approval of Case No. ZC-608(CH), zoning change from
C (Commercial) to SF-9 (Single Family-9) on approximately 11
acres of property south of Sandy Lake and west of Denton Tap
Roads.
Presentation: ......:~i
Gary Sieb, Director of Planning and Community Services, made a
presentation to the Council. Jim Witt, City Manager, made a
presentation to the Council.
Mav,r Shethan opened l hc I'ublic Ih:aring and ~:alled for those wishing
Io speak in Ihvor of th~s pro[~osnl. Man' Ann I)unkum, 141 Hearthwood
i')r., spoke in favor of this i~crn. The Mm'or i hcn called for those wishing
to speak ag~nst lhe proposal. l)nvid [)can, 8080 Park Lane, Dallas,
Kris [.Iccknmnn, 8080 I'nrk ],~1~(.'., S!li[(: (')0(), I)allas, and Mike Daniel,
8080 Park i,anc, Suite 600, [)allas, spoilt a[.;ai~sl the proposal.
Issues Discussed:
'l'hcrc was discussion n:ganling ihc dcplh o[' rezoning requested on
[')cnton Tap, if I. his rf:zor~ing is approvcd wouhl the second access road
cxi~ on Sandy I,nkc Road or oni, I')c~'~on Tap R,ad, the current potential
[or commercial dcvclopm~:n~ and bu.~i'.'~:ss opportunities on this property,
the localion o[ ~he TXU line, wh(~!h('r a sit.l[) or a loop is in the plans for
Tea!~ood I)ri~c, ~r~d h,w ~[id Cl.'41) dclcr'miv. e their future plans - the
currcnt zoning or the Coniprc[xcr sR c l'lan.
Councilmember Stover called for an Executive Session at this time.
CM06132000
Page 10 of 16
EXECUTIVE SESSION IClosed to the Public}
Convene Executive Session
A. Section 551.071, Texas Government Code - Consultation
with City Attorney:
Mayor Sheehan convened into Executive Session at 10:50 p.m. as allowed
under the above-stated article. Mayor Sheehan adjourned the Executive
Session at 10:55 p.m. and reopened the Regular Session, continuing with Item
13.
REGULAR SESSION {Open to the
case r o. zc-5os (cH), zonin iiiii!i!i!i hange iii m iii (Comma! !ial) to SF-9
Lake and west of Denton Tap 'l~sds. l~K~:~'~:""i~"'Tcm W~! ier seconded
the motion. The motion to deny was ~vith~wn.
Case No. ZC-608 (CHJ, zoning change i!i~m C (Commercial) to SF-9
(Single gami|y-9) on epproximatelv ~ a~d~~ of property south of Sandy
Lakc and west of Denton Tap Ro~ds. ~tncilmember Peters seconded
the motion; the motion failed 0-7 with no one voting in favor of the
motion and Mayor Pro Tern Whcch:r ~-~nd Councilmembers Garcia, Peters,
Kecnan, Tunn~;ll, Stover and York vol ing against the motion.
14, PUBLIC HEARING:
Consider approval of Case No. ZC-609 {CH) to consider a
change in zoning from TC {Town CenterJ to SF-7 {Single
Family-7} on approximately 25 acres of property located east of
.:i!i~iiiii!.~ ....... Heartz and north of Sandy Lake Roads,
Councilmember Garcia filed a Conflict of Interest with the Deputy City
Secretary on this case and stepped down from the dais.
Presentation:
Gary Sieb, Director of Planning and Community Services, made a
presentation to the Council.
CM06132000
Pa~e 11 of 16
Public Hearing
Mayor Sheehan opened the Public Hearing and advised that no one had
signed up to speak on Item 14.
Action:
Councilmember Peters moved to close the Public Heating and approve
Case No. ZC-609 (CH) to consider a change in zoning from TC (Town
Center) to SF-7 (Single Family-7) on approximately 26 acres of property
located east of Heartz and north of Sandy Lake Roads. Councilmember
Keenan seconded the motion; the motion carried 6-0 with Mayor.~o Tem
Wheeler and Councilmembers Peters, Keenan, Tunnell, Stover...'ii~d York
voting in favor of the motion. Councilmember Garcia abstained from
voting on this item.
Councilmember Garcia rejoined the Council on the dais at this t~ ~.
~~ of the'i!a!ii~opose~i!iiliext~iiiaiii!~hange a amend a
portion of Section 27-1 oi!a!i!ae Coppell Zoning O ainance, PD
Re~xlations, t.~iia~!iii~a~ow the Board of Adjustm~i~ii to grant
variances as the~y relate to placement of fences w.:~i~in Planned
Development Districts.
Presentation:
Gary Sieb, Director of Planning and Community Services, made a
presentation to the Council.
Public Hearing
Mayor Shcehan opened |.h(; Public Hearing and advised that no one had
signed up to speak on Item 15.
Action:
:!::.:-..
Councilmember Keenan moved to close the Public Hearing and approve
the proposed text change to amend a portion of Section 27-1 of the
Coppoll Zoning Ordinance, PD Regulations, to allow the Board of
Adjustment to grant variances as they relate to placement of fences
within Planned Development Districts. Mayor Pro Tem Wheeler seconded,
the motion; the motion carried 7-0 with Mayor Pro Tem Wheeler and
CM06132000
Page 12 of 16
Councilmembers Garcia, Peters, Keenan, Tunnell, Stover and York voting
in favor of the motion.
16. PUBLIC HEARING:
Consider approval of the proposed amendments to the Land
Use Map of the Comprehensive Plan.
Presentation:
Gary Sieb, Director of Planning and Community Services, made a
presentation to the Council.
Public Hearing
Mayor Sheehan opened the Public Hearing and advised that no one had
signed up to speak on Item 16.
Action:
Councilmember Tunnell move~i~;:~;closc the Public Hearing and approve
the proposed amendments to the Land Use Map of the Comprehensive
Plan. Ma.vor Proi:~i~iii:.:Whcelcr seconded the motion; the motion carried
7.0 wilh Mayor l'r{} 'rcn"~ Wheeler and Councilmembers Garcia, Peters,
Kecnan, 'rum'~cll, Stover and York voting in favor of the motion.
17. Consider appointment to ~l the vacant position on the Ltb~ry
Board, said position to expire September 30, 2001.
Action:
Cotlncihnel~bcr 'Ftix~cll moved to appoint Derek Mosb~gcr, ~o fill the
um:xpjrcd term o[ Fmnkk~ Grccvcr on the Libr~ Bo~d.
Mayor Sheehas'~ ca~]~xl [or ~ Executive Session a this time to fu~hcr
d~scuss l~cm ~0, Consider approv~ of Case No. ZC-605 (CH), zoning
:~::~::: .....ch~gc x'cq~cst fi'om A (Agriculture) ~d R (Rci~l) to SF-12 (S~c
F~ily-12) on appro~ma~cly 24.7 acres of propc~ located ~ong
noah side of DeForest Road, east of MacArthur Boulev~d.
CM06132000
Page 13 of 16
EXECUTIVE SESSION (Closed to the Public)
Convene Executive Session
A. Section 551,071, Texas Government Code - Consultation
with City Attorney:
Mayor Shcehan convened into Executive Session at 11:03 p.m. as allowed
under the above-stated mticle. Mayor Shcehsm adjourned the Executive
Session at 11:25 p.m. and reopened the Regular Session, continuing with Item
18.
REGULAR SESSION |Open to the Public)
18. Consider approval of appointments to Councfi's Committees.
Presentation:
Mayor Shethan read the appointments for the record:
Carrollton/[:armers Branch ISD/Lcwisville ISD Pal: Keenan
C ily/Coppoll I SD t, iaisot~ s Bill York
:: !)oug Stover
Coppoll Ct:lebratcs/i'igfcsl Greg Garcia
Coppell Rccreal ion Development Corporation Jayne Peters
.. Greg Garcia
Coppell Seniors Bill York
DFW Noise Forum dayne Peters
l,arry Whcelcr
Dallas Central Appraisal Advisory 13oard Marsha Tunnell
DFW Film Commission Marsha Tunnell
Economic Development Partnership Doug Stovcr
Marsha Tunnell
Metrocrest Hospital Authority Pat Keenan
North Central Texas Council of Governments
(NCTCOG) Candy Sheehan
:!~iiiii:,!iii~ .......North Texas Commission Candy Sheehan
Senior Adult Services Jayne Peters
Town Center/Architectural Committee Larry Wheeler
Trinity River Common Vision Committee Jayne Peters
Trinity Trail Advisory Committee Jayne Peters
20 12 Olympic Committee Greg Garcia
CM06132000
Page 14 of 16
Action:
Councilmember York moved to approve the appointments to Council's
Committees as read by Mayor Sheehan. Councilmember Tunnell
seconded the motion; the motion carried 7-0 with Mayor Pro Tem
Wheeler and Councilmembers Garcia, Peters, Keenan, Tunnell, Stover
and York voting in favor of the motion.
19. Necessary action resulting from Work Session.
There was no action necessary from Work Session.
20. City Manager's Report. A. Shadowridge Subdivision Monument Sign.
B. Budget Workshops.
C. Closing of Coppell Road from Parkway to Sandy Lake
Road Summer of 2000.
A. ,Jinl Wil. t, City Mnllllgcr, prLs(;nl{~d his ru:tH'nm{;ndatio,'~ to not
replace ~hc rrR}uumcnl sign al ~he Shadowridge Subdivision.
I]. ,Jim Wilt, City Manager, anncnl:~ccd Ih;ll there will I}c; Budget
Workshops held in Ihe s(:col";(i lloor c()n.r(~r(;:'R:(: room on the
following dates:
June 19, 2000 1.2ntt:rpris{: Funds, !)(:IH Scrvic¢: and final
pr{;s{~ntation from r~;n'minil~g non-profit
gro u Ds
,lurR~ 22, 2()00 ('h;n¢;ral !.'und
dut"R'. 29, 2000 Sulnrx and I.~cncl'it Surxcv !~csulls
C. Jim Will, C:ily M;'ln;l$,.,c:'. r{'l'tcH't¢'¢l II~:~l C:tq'~pell I~o:l¢l will I~c closed
from Parkwax to S;~r'~¢l~' I..a1¢¢' I~o;RI a:"~d should r'¢~oper~ at l. hc end of
I h c SLI I'l'~ n I('r.
:.~!:,:1. Mayor and Council Reports.
:ii ........A. Report by Mayor Sheehan regarding Summer Reading
Program.
B. Report by Mayor Sheehan regarding Summer Camp
Program.
C. Report by Mayor Sheehan regarding Grand Opening of
Aquatic Center.
D. Report by Mayor Sheehan regarding Community Garden's
Open House.
CM06132000
Page 15 of 16
E. Report by Mayor Sheehan regarding Overview of Council
Retreat.
F. Report by Councfimember York regarding High School
Athletics.
G. Report by Councilmember York regarding Aquatic and
Recreation Center.
A. Mayor Sheehan announced the goal for the Summer Reading
Program is 2,000 Books to bc Read in the year 9000.
B. Mayor Sheehan reported on the Summer Camp Program, Qamp Do
C. Ma..x'or Shethan ant'taunted '.hal T[~c (fraud Opening or the Aqualic
Ccn~c~" ~%ill bc hel~l on ,.July ,1.20()().
I). Mayor Sl'~cci"m,'~ a,~mu~ccd Ihi.:t ihc· Cummunilv Gardcn's ()pen
I lousc ~ill be held on ,June 23, 2000.
I';. Mayor Shoeban did not discuss
lhis lime unai] she has a cham:e ~o review ii wi~h Cour~ciil"ncmbcr
Keenan ~ho was ur~al~!c t.~t
F. Cotincilmember York congraluln~cd
I3asclmll ~cam ~m Ihci," mits~ar:di,~g
G. Councilmember York slnled xha~ Ihe Aqualic ('.:enlcr ilem had
~1. Necessar~ Action Resulting from Executive Session.
There being no furlher tn.isit'mss Io come I~clbre the Cily C~n.it'~cil, Ihe roecling
was adjm~
:~:~::<"'
Candy Shechart, Mayor
Attest:
Kathy Wilkerson, Deputy City Secretary
CM06132000
Page 16 of 16
CiTy~~c,COUNCIL MEETING: June 27, 2000 ITEM
ITEM CAPTION:
Consider approval of an ordinance establishing the maximum permitted equipment rate charged by Paragon
Cable; and authorizing the Mayor to sign.
SUBMITTED BY: Rick Moore
Information Systems Manager
STAFF COMMENTS:
City, as the franchising authority is permitted to regulate basic cable rates and equipment rates for all entities
which have a current franchise agreement with the City. The Telecommunications Board has reviewed the
reports, discussed the findings with the auditor and support the approval of the ordinances.
BUDGET AMT. $ AMT. EST. $ +X-BID $
FINANCIAL COMMENTS:
DIR. INITIALS: \[ ~b~/"rIN. REVIEW, t~ CITY MANAGER REViEW:~
Agenda Request Form - Revised 5/00 Document Name: {equipment ordinances
To: Jim Witt, City Manager
From: Rick Moore, Information Systems Manager
Date: June 19, 2000
Subject: Paragon Cable Rate Review
RECOMMENDATION
City Council consider the approval of two rate order ordinances to order new maximum permitted rates
for Basic cable service and hardware rental from Paragon Cable and to accept the withdrawal of FCC
Form 1235.
BACKGROUND
The City of Coppell received notice of Paragon Cable's FCC rate filing in September 1999. Since this is
the first year that Paragon Cable has filed a rate increase outside the auspice of the "Social Contract"
agreement, staff felt a review of their proposal was appropriate. The Social Contract was a 1995
agreement between the FCC and Time Warner, and allowed Time Wamer (Paragon) to recover costs
associated with their nationwide system upgrade.
The City hired C2 Consulting Inc. to audit the FCC forms 1205, 1235, and 1240 filed by Paragon and
provide an analysis of Paragon's rate increase requests. Based upon their findings C2 concluded that the
rate increases requested by Paragon were not reasonable. The consultant's reports are included for your
review.
Copies of the audit ~vere also provided to Paragon cable. They have agreed to rescind the recent rate
increases and implement the rates for Basic Service and converter rental as recommended by C2
Consulting. A copy of the letter from Paragon to that effect is included for your review.
Based upon those reports staff recommends the Council order a maximum permitted rate for basic service
tier of $9.71, order a maximum permitted rate of $3.39 for addressable converters and $.62 for non-
addressable converters as outlined in the attached ordinances. The City of Coppell retains regulatory
authority only on these specific services. Paragon Cable, with City Council approval of this rate order,
must adjust the basic service tier rates and monthly lease rates immediately and issue credits to customers
effective July 1, 2000.
The Telecommunications Board has reviewed the reports, discussed the findings with Connie Canady of
C2 Consulting Inc. and support the approval of the ordinances.
Cc: Vivyon Bowman, Director of Administration and Human Resources
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS,
ESTABLISHING FINDINGS AND THE MAXIMUM PERMITTED
EQUIPMENT RATE CHARGED BY PARAGON CABLE; PROVIDING A
REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Coppell, Texas franchises cable television service for the benefit
of its citizens; and
WHEREAS, the City is the Grantor of a franchise ordinance by and between the City of
Coppell and Paragon Cable ("Paragon"); and
WHEREAS, in accordance with applicable provisions of the Telecommunications Act of
1996 (the "Act") and rules adopted by the Federal Commtmications Commission CFCC") and
all other applicable federal and state laws and regulations, the City has undertaken all appropriate
procedural steps to regulate the equipment and installation rates; and
WHEREAS, in accordance with applicable FCC regulations the City adopted an
ordinance providing for the regulation of rates charged by cable television operators within the
City for the equipment and installation rates are related equipment and installation charges and
providing for a reasonable opportunity for interested parties to express their views concerning
basic cable regulations; and
WHEREAS, on or about October 1, 1999 the City reviewed what is commonly known as
FCC Form 1205; and
WHEREAS, the City has caused to be audited and has concluded that said proposed rates
for maximum permitted monthly lease rates in Form 1205 are inappropriate;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF COPPELL, TEXAS:
SECTION 1. That after review the following are ordained findings of this City Council:
A. That on or about October 1, 1999, the City of Coppell received Paragon's FCC
form 1205 filing.
B. That the City reviewed Paragon's FCC Form 1205 to determine the
reasonableness of the proposed monthly equipment lease, installation and
maintenance rates.
] 32817
C. That the timings of the C2 Consulting audit, which is attached hereto and
incorporated herein by reference as Exhibit "A", are hereby established as
findings.
D. That based upon the information received from Paragon, the City concludes that
the rates proposed by Paragon for maximum permitted monthly lease rates are not
reasonable.
SECTION 2. That the City has an obligation to timely act upon the pending rate
application consistent with cun'ent FCC rules and regulations and that Paragon' s submittal of the
FCC form 1205 received on or about October 1, 1999, is hereby rejected for the reason that the
proposed rate is not reasonable.
SECTION 3. That the City hereby further ordains:
A. That Paragon's request for maximum permitted monthly lease rates of $3.44 for
addressable converters and $0.64 for non-addressable converters included in its
Form 1205 filing is hereby denied.
B. That based on the information received from Paragon and recommendations from
C2 Consulting Services, Inc., which is attached hereto and incorporated herein by
reference as Exhibit "A", the maximum permitted rate for the monthly lease rate
for addressable and non-addressable converters is established at $3.39 and $0.62
respectively effective July 1, 2000.
SECTION 4. All provisions of the ordinances of the City of Coppell in conflict with the
provisions of this ordinance be, and the same are hereby, repealed, and all other provisions of the
ordinances of the City of Coppell not in conflict with the provisions of this ordinance shall
remain in full force and effect.
SECTION 5. Should any sentence, paragraph, subdivision, clause, phrase or section of
this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not
affect the validity of this ordinance as a whole, or any part or provision thereof other than the
part so decided to be invalid, illegal or unconstitutional, and shall not effect the validity of the
Code of Ordinances of the City of Coppell, Texas.
2 32817
SECTION 6. That this ordinance shall take effect immediately from and after its
passage and publication, as the law and charter in such cases provide.
DULY PASSED by the City Council of the City of Coppell, Texas, this __ day of
., 2000.
APPROVED:
By:
CANDY SHEEHAN, MAYOR
ATTEST:
By:
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
By:
ROBERT E. HAGER, CITY ATTORNEY
(REH/cdb 06/22/00)
3 32817
.TING SERVICES, INC.
7801 Pencross (972) 726-7216
Dallas. Texas 75248 (972) 726-021 2 (fax)
I I
January 28, 2000
Mr. Rick Moore
City of Coppell
PO Box 478
Coppell, Texas 76019
Dear Mr. Moore:
C2 Consulting Services, Inc. CC2') has completed ~hc evaluation of the FCC Form 1205 filed by
Paragon Cable ("Paragon" or the "Company") with the City of Coppell, Texas ("City") on or
about September 30, 1999. This is Paragon's first year to file a Form 1205 for City review of
regarding its proposed changes in equipment monthly lease rates and installation and maintenance
charges since implementation of the Social Contract provisions in 1996.2 In August 1999,
Paragon opted out of the Social. Contract provision ~at established regulation of such installation
and equipment maintenance costs by ~e FCC.2 Therefore, Paragon has filed for review of ~ese
proposed rates by each of ~e franchising authorities' wiffi jurisdiction over such rates.
This study does not constitute an examination of the financial condition of Paragon or its parent
company. As such, C2 cannot and does not express any position with regard to the accuracy or
validity of the financial information provided by Paragon during the course of the analyses.
BACKGROUND
In its 1999 Form 1205 filing for the 2000 rate year, Paragon proposes to decrease all its 1999
rates wiffi ~e exception of ~e monthly charge for addressable converters. This rate is being
increased form $2.76 to $3.44 per month per converter-a twenty five percent (25%) increase.
The following table provides a comparison of Paragon's 1999 rates and Paragon's proposed 2000
Form 1205 rates:
' Social Contract for Time Warner Cable ("Social Contract '). as approved by the FCC in Social Contract
for Time Warner, Memorandum Opinion and Order, FCC 95-478, released November 30, 1995, C'Social
Contract Order").
2 See Social Contract, HI.B.
Mr. Rick Moore
January 28, 2000
P~e 2
COMPARISON OF EQUIPMENT AND INSTALLATION RATES
Paragon
Paragon Proposed
1999 MPR* 2000 MPR' Difference
Hourh/Service Charge $29.84 $29.78 $(0.06)
Install - Unwired home $29.84 $29.78 $(0.06)
Install - Prewired home $17.31 $17.27 $(0.04)
Install - Additional connect initial $13.40 $13.40 0
Install - Additional connect separate $27.46 $27,40 $(0.06)
Truck Trip $17.31 $17.27 $(0.04)
Change of service tier $29.84 $29.78 $(0.06)
Monthly Lease Rates
Remotes $0.31 $029 $(0.02)
Non addressable converters $0.84 $0.64 $(020)
Addressable conveders $2.76 $3.44 $0.68
*Maximum Permitted Rate
Paragon's proposed 2000 rates are based on a single Form 1205 calculation that was provided to
each of the franchising authorities impacted. However, each of the components of the aggregated
filing is a sum of that same component on Form 1205 filings developed for the following five
Time Wamer divisions operating in Texas:
· Austin Division
· Houston Division (East and West, with East being previously operated by TCI)
· San Antonio Division
· Southwest Division
· Waco Division
Therefore, each individual Form 1205 must be reviewed for accuracy and the appropriateness of
any computations.
ANALYSES OF THE FILINGS
Project Objectives and Activities
The project objectives are three fold:
1. Assessment of the completeness of ~e filings with regard to the information and
documentation that must be filed with the City.
2. Assessment of the reasonableness of the proposed computations in light of FCC
regulation, recent FCC rulings and prior ownership and operations of the system
included in the calculations.
3. Assessment of the reasonableness of the proposed computations in light of Paragon's
proposed method of aggregation.
Mr. Rick Moore
January 28. 2000
Page 3
Given these objectives, C2 conducted the following project activities:
* Review of the filings to assess the completeness based on the FCC Form 1205
instructions.
· Review of the filings to identify any issues with respect to the data and/or
methodologies employed by Paragon.
· Submission of follow-up data requests and subsequent review of Paragon's
responses.
, Review of recent FCC decisions that may have an impact on Paragon's proposed
methodologies or the City's alternative actions.
· Development of potential alternatives available to the City in establishing maximum
pem-titted equipment and installation rates.
Summary of Findings
C2 identified two main issues with respect to Paragon's proposed computations of maximum
perufitted equipment and installation rates. The issues are:
1. The computation of the Hourly Service Charge ("HSC") and the monthly lease rates
inappropriately include both the costs and hours related to converter retrieval in the
previously owned TCI systems.
2. It does not appear that Time Warher has instituted adequate quality control measures
to assure that the five Texas divisions follow standard methods by which the data are
derive& accumulated and/or allocated to the Form 1205 computations.
1. Converter Retrieval Costs/flours in HSC and Converter Lease Rates
Within the Houston Division are a number of previously owned and operated TCI systems that
were transferred to the control of Time Wamer in November 1998. Prior to that time, TCI had
filed aggregated Form 1205s that included all its owned and/or managed systems on a national
basis.
C2 reviewed the TCI Form 1205s for these systems for the period 1996 through the 1998. In
1999, Time Warner presented the Form 1205 filing based on information that was provided by
TCI.3 In the 1996-1998 filings, C2 determined costs and hours concerning converter ret~eval
had inappropriately been included in the development of the HSC and the monthly equipment
lease rates. C2's argument was premised on (1) these costs (and hours) were not related to "new
activities," but in fact, were related to activities conducted during the period of "unbundling" in
the Form 1200/1205 process; and (2) TCI had not unbundled the costs related to these activities
into the equipment basket (thereby continuing to recover them from the monthly programming
services rates). C2 concluded that allowance of these costs in the equipment basket would
provide for a double recovery from the subscribers served by these systems.
In the 1999 Time Wamer Form 1205 filing related to the systems that had been transferred from
TCI, TCI provided Time Warher with computations that did not include converter retrieval costs
or hours. These 1999 filed rates are the rates that were adopted by the franchising authorities.
3 Time Warner's 1999 Form 1205 filing in the Houston East systems was based on a fiscal year end
December 31, 1998.
Nh'. Rick Moore
January 28, 2000
Page 4
However, in the instant filing, Paragon has included converter ret~eval costs and hours again for
these prior TCI systems. Not only is the Company collecting from the basic service rates in the
Houston systems, but it is also attempting to collect these same costs from all other subscribers
through equipment and installation rates.
The FCC recently ruled on this issue in DA 99-2227:
MACC disallowed TCI's recovery of costs associated with disconnects and converter
retrievals based on the consultant' s finding that these costs were not unbundled from the
operator's programming charge. TCI appealed this action but does not dispute the
unbundling finding. Because an operator cannot include in the equipment basket costs
that were left in the base programming service rates.. . TCI's appeal on this point is
denied.4
Therefore, the inclusion of the converter relrieval costs and hours by Paragon in the previously .
managed TCI systems should be disallowed in determining the combined divisions' HSC. In
addition, the labor costs assigned to the repair and maintenance of converters should not include
the hours related to the retrieval of converters from the subscribers' premises for these systems.
Based on the information provided, the impact of deducting the converter relrieval costs and
associated hours from the Houston Division East's Form 1205, and thereby reducing the
combined Form 1205 computations, results in no change to the HSC, but reduces the monthly
equipment lease rates as follows:
· Non addressable converters - $0.64 to $0.62
· Addressable convei-ters - $3.44 to $3.39
2. Apparent Lack of Standard Quality Controls
During the review of the five Texas divisions' Form 1205 computations, C2 noted that the
development of certain data and/or methodologies varied among divisions. For example, some
systems used the actual contract labor costs and others developed an average annual cost based on
average annual jobs times average costs per job. The supporting documentation provided by each
division also varied significantly.
For purposes of the instant filing it does not appear that the lack of standardization has resulted in
any significant impact to rates (outside of the above issue, and in light of the fact that most of the
rams have been reduced for the 2000 rate year). However, for ~ture filings, Paragon should be
required to demonstrate that a standard methodology is being used, that the divisions are
following such standards, and that the Company has instituted quality control measure to test the
reliability of each division' s computations.
SUMMARY OF RECOMMENDATIONS
Based on the above findings and conclusions, the City should consider taking the following
actions:
1. The City should consider disallowing the converter retrieval costs and hours used in the
Memorandum Opinion and Order. DA 99-2227, released October 21, 1999, paragraph 18.
Mr. Rick Moore
January 28, 2000
Page 5
development of the Houston Division' s East Form 1205.
2. The City should consider adopting a maximum permitted non-addressable converter rate
of $0.62 per month.
3. The City should consider adopting a maximum pe,nfitted addressable converter rote of
$3.39 per month.
4. The City should order Paragon to issue refunds to subscribers within ninety (90) days of a
rate order based on the difference between the ordered rate and the January 3, 2000,
implemented rate. Interest on the refund amount should accrue to the time the refund is
issued.
5. The Company should be required to institute quality controls for consistency in the
reporting of data by Time Wamer divisions should the Company continue to employ this
aggregated methodology.
C2 appreciates having this opportunity to work with the City of Coppell in review of the Form
1205 rates. If you have any questions regarding this report or need clarifications as to the
recommend~i.'ons, please contact Ms. Conhie Cannady at (972) 726-72 16.
Very truly yours,
C2 Consulting Services, Inc.
PARAGON
C A B L E
May 11, 2000
Mr. Rick Moore
City of Coppell
255 Parkway Blvd
Coppell, Texas 75019
RE: Rates for Basic Cable and Equipment Rates
Dear Mr. Moore:
This letter is to officially notify you that Paragon Cable is implementing rates for Basic Service
and for Addressable and Non-Addressable Converter Rental recommended by C2 Consulting,
effective no later than July 1, 2000. Refunds for overpayment plus interest, where applicable,
will be accomplished via one-time credits to affected customers' accounts.
Customers who will experience an effective rate change resulting in a refund will be notified
directly on their billing state. ments at the time the refund and rate change is reflected on the
statement. Customers who Will not experience an effective rate change or refund will be notified
via legal advertising in local newspapers. Digital package customers, whose services and
equipment rates already are discounted, are not affected.
If we can provide additional information, please call me at 972-501-7144, or Dennis Moore at
972-501-7001. Thank you.
Sincerely,
aa~an Patten
Vice President of Government and Public Affairs
Time Warner Cable, Southwest Division
CC: Dennis Moore, General Manager
2951 Kinwest Parkway, Irving, Texas 75063-3498
972/501-7000 Fax 972/501-7070
A Time Warnet Company
CITY~ ~ ° COUNCIL MEETING: June 27, 2000 ITEM
ITEM CAPTION:
Consider approval of an ordinances setting the maximum permitted basic service tier rates charged by
Paragon Cable; and authorizing the Mayor to sign.
SUBMITTED BY: Rick Moore
Information Systems Manager
STAFF COMMENTS:
City, as the franchising authority is permitted to regulate basic cable rates and equipment rates for all entities
which have a current franchise agreement with the City. The Telecommunications Board has reviewed the
reports, discussed the fmdings with the auditor and support the approval of the ordinances.
BUDGET AMT. $ AMT. EST. $ +X-BID $
FINANCIAL COMMENTS:~\~
Agenda Request Form - Revised 5/00 Document Name: {rate ordinances
To: Jim Witt, City Manager
From: Rick Moore, Information Systems Manager
Date: June 19, 2000
Subject: Paragon Cable Rate Review
RECOMMENDATION
City Council consider the approval of two rate order ordinances to order new maximum permitted rates
for Basic cable service and hardware rental from Paragon Cable and to accept the withdrawal of FCC
Form 1235.
BACKGROUND
The City of Coppell received notice of Paragon Cable' s FCC rate filing in September 1999. Since this is
the first year that Paragon Cable has filed a rate increase outside the auspice of the "Social Contract"
agreement, staff felt a review of their proposal was appropriate. The Social Contract was a 1995
agreement between the FCC and Time Warner, and allowed Time Warner (Paragon) to recover costs
associated with their nationwide system upgrade.
The City hired C2 Consulting Inc. to audit the FCC forms 1205, 1235, and 1240 filed by Paragon and
provide an analysis of Paragon's rate increase requests. Based upon their findings C2 concluded that the
rate increases requested by Paragon were not reasonable. The consultant's reports are included for your
review.
Copies of the audit were also provided to Paragon cable. They have agreed to rescind the recent rate
increases and implement the rates for Basic Service and converter rental as recommended by C2
Consulting. A copy of the letter from Paragon to that effect is included for your review.
Based upon those reports staff recommends the Council order a maximum permitted rate for basic service
tier of $9.71, order a maximum permitted rate of $3.39 for addressable converters and $.62 for non-
addressable converters as outlined in the attached ordinances. The City of Coppell retains regulatory
authority only on these specific services. Paragon Cable, with City Council approval of this rate order,
must adjust the basic service tier rates and monthly lease rates immediately and issue credits to customers
effective July 1, 2000.
The Telecomrnunications Board has reviewed the reports, discussed the findings with Connie Canady of
C2 Consulting Inc. and support the approval of the ordinances.
Cc: Vivyon Bowman, Director of Administration and Human Resources
AN ORDINANCE OF THE CITY OF COPPEL, TEXAS
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS,
ESTABLISHING FINDINGS AND THE MAXIMUM PERMITTED
BASIC SERVICE TIER RATES CHARGED BY PARAGON
CABLE; PROVIDING A REPEALING CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Coppell, Texas franchises cable television service for the
benefit of its citizens; and ,
WHEREAS, the City is the Grantor of a franchise ordinance by and between the
City of Coppell and Paragon Cable ("Paragon"); and
WHEREAS, in accordance with applicable provisions of the
Telecommunications Act of 1996 (the "Act") and rules adopted by the Federal
Communications Commission CFCC") and all other applicable federal and state laws
and regulations, the City has undertaken all appropriate procedural steps to regulate the
equipment and installation rates; and
WHEREAS, in accordance with applicable FCC regulations the City adopted an
ordinance providing for t-he regulation of rates charged by cable television operators
within the City for the equipment and installation rates are related equipment and
installation charges and providing for a reasonable opportunity for interested parties to
express their views concerning basic cable regulations;
WHEREAS, on or about October 1, 1999 the City reviewed what is commonly
known as FCC Form 1240; and
WHEREAS, the City has caused to be audited and has concluded that said
proposed basic service tier rate in Form 1240 is inappropriate;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF COPPELL, TEXAS:
SECTION 1. That after review the following are ordained findings of this City
Council:
A. That on or about October 1, 1999, the City of Coppell received Paragon's
FCC form 1240 filing.
B. That the City reviewed Paragon's FCC Form 1240 to determine the
reasonableness of the proposed basic service tier rate.
C. That the findings of the C2 Consulting audit, which is attached hereto and
incorporated herein by reference as Exhibit "A", are hereby established as
findings.
D. That based upon the information received from Paragon, the City
concludes that the rate proposed by Paragon for maximum permitted
service is reasonable.
SECTION 2. That the City has an obligation to timely act upon the pending rate
application consistent with current FCC rules and regulations and that Paragon's
submittal of the FCC form 1240 received on or about October 1, 1999, is hereby rejected
for the reason that the proposed rate is not reasonable.
SECTION 3. That the City hereby further ordains:
A. That Paragon's request for maximum permitted basic service rate of $9.82
included in its Form 1240 filing is hereby denied.
B. That based on the information received from Paragon and
recommendations from C2 Consulting Services, Inc., which is attached
hereto and incorporated herein by reference as Exhibit "A", the maximum
permitted rate for the basic service tier established at $9.71 effective July
1, 2000.
SECTION 4. All provisions of the ordinances of the City of Coppell in conflict
with the provisions of this ordinance be, and the same are hereby, repealed, and all other
provisions of the ordinances of the City of Coppell not in conflict with the provisions of
this ordinance shall remain in full force and effect.
SECTION 5. Should any sentence, paragraph, subdivision, clause, phrase or
section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the
same shall not affect the validity of this ordinance as a whole, or any part or provision
thereof other than the part so decided to be invalid, illegal or unconstitutional, and shall
not effect the validity of the Code of Ordinances of the City of Coppell, Texas.
SECTION 6. That this ordinance shall take effect immediately from and after its
passage and publication, as the law and charter in such cases provide.
DULY PASSED by the City Council of the City of Coppell, Texas, this day
of ,2000.
APPROVED:
By:
CANDY SHEEHAN, MAYOR
ATTEST:
By:
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
By:
ROBERT E. HAGER, CITY ATTORNEY
(REH/cdb 06/22/00)
;ULTING SERVICES, INC.
7801 Pencross (972) 726-721 6
Dallas. Texas 75248 (972) 726-021 2 (fax)
Januapj 28, 2000
Mr. Rick Moore
City of Coppell
PO Box 478
Coppell, Texas 76019
Dear Mr. Moore:
C2 Consulting Services, Inc. CC2") has completed its review of the FCC Form 1240 and the
FCC Form 1235 submitted to the City of Coppell, Texas (the "City") by Paragon Cable
C'Paragon" or the "Company") on or about September 30, 1999. Paragon is proposing to
combine the results of these two filings to justify its proposed basic service rates. The following
report provides a brief discussion of the issues noted during the review and C2's
recommendations regarding potential City Council actions in response to Paragon's proposed
basic service rates.
This study does not constitute an examination of the financial condition of Paragon or its parent
company. Therefore, C2 cannot and does not express any position with regard to the accuracy or
validity of the fmancial information provided by Paragon during the course of the analyses.
OVERVIEW OF THE FILING
According to the information provided by Paragon, the basic service tier includes twenty-two (22)
channels. Prior to the January 3'd implementation of the filed rate, t Paragon was charging $9.42
for basic service programming based on its Form 1240 computation for the 1999 rate year.
However, this year, the Company has filed a FCC Form 1235 in an effort to collect costs related
to the cable system upgrade. Pursuant to FCC regulation, the results of a Form 1235 computation
can be added to the Form 1240 computation to develop the total basic service charge. Based on
Paragon's proposed Form 1240 filing of $9.82 and proposed Form 1235 filing of $1.45, the
Company has increased the basic service rate by $1.49 to a proposed rate of $10.91.2 The rate
year is January 1, 2000 through December 3 I, 2000.
There are three major factors that explain Paragon' s proposed increase in the basic service rate:
t Based on paragraph 92 of the Thirteenth Order on Reconsideration, FCC 95-397, released September 22,
1995, a cable operator may implement a proposed rate ninety (90) days after it has filed for the rate change
with the franchising authority. However, the franchising authority has one year from the date of the filing
in which to render a final decision. Such decision is retroactive to the beginning date on which the
proposed rate was charged. Because the Form 1235 rate is added as a component to the benchmarkForm
1240 rate, the City has the same period of review for the Form 1235 as it does the Form 1240. For either
form, a decision is rotinactive to ~c date of rate implementation.
2 The maximum permitted rate as proposed would be the combination of the $9.82 and the $1.45 for a total
basic service rate of $11.27. However, the $10.91 is Paragon's operator selected rate for the rate year.
NIx. Rick Moore
Januaxy 28, 2000
Page 2
1. Paragon proposes to use a higher inflation factor in its current Form 1240 true-up
period than what was estimated in the projected period for the prior1998 filing;
2. Paragon proposes an additional projected year of inflation in itscurrent Form 1240
that will be Irued-up next year pursuant to FCC regulations; and
3. As stated above, Paragon proposes to add an additional $1.45 based on its FCC Form
1235 computation.
ANALYSES OF THE FILINGS
Project Objectives and Activities
The project objectives are three-fold:
1. Assessment of the completeness of the filings with regard to the information and
documentation that must be filed with the City.
2. Assessment of the reasonableness of the proposed computations in light of FCC
regulations, and FCC rulings.
3. Assessment of the reasonableness of the proposed computations in light of the
Company' s election to opt out of certain provisions in the Social Contract.3
Given these objectives, C2 conducted the following project activities:
1. Review of the filings to assess the completeness based on the FCC Form instructions.
2. Review of the filings to identify any issues with respect to the data and/or
methodologies employed by Paragon.
3. Submission of follow-up data requests and subsequent review of Paragon's
responses.
4. Review of FCC decisions that clearly have an impact on Paragon's proposed
methodologies.
5. Development of potential alternatives available to the City in establishing maximum
permitted basic service rates.
3 Social Contract for TimeWarner Cable ("Social Contract"), as appmved by the FCC in Social Contract
for Time Warner. Mernorandum Opinion and Order, FCC 95-478, releasedNovember 30, 1995 ("Social
Contract Order").
Mr. Rick Moore
January 28, 2000
Page 3
Summary of Findings
Form 1240:
C2 identified two main issues with respect to Paragon's proposed Form 1240 computation. These
issues are:
1. Paragon inappropriately included estimated costs in its u'ue-up period computations.
2. In conjunction with correcting the true-up period, the inflation factors to be applied
during both the true-up period and the projected period need to reflect the most recent
information available.
Form 1235:
The overriding issue related to the Form 1235:
1. Paragon's proposal to recover the upgrade costs that were the primary basis for CPST
increases under application of Social Contract provisions in the last four years should
not be considered now in the development of rate year 2000 basic service rates.4
Discussion - Form 1240
1. Use of Actual Costs Only For True-Up Period
The Form 1240 methodology haorporates a series of calculations that involve an accounting of
the actual costs previously projected for the prior rate year and an allowance for projecting
certain cost increases/decreases for the upcoming rate year. in each annual Form 1240 filing, the
projections from the prior computation are to be "Irued-up" to actual costs, and any over/under-
collections are taken into account in the development of the new rates.
In the Thirteenth Outer on Reconsideration. the FCC noted:
Because the tree-up will examine what costs were actually incurred, it can only examine
costs as of the date the Form 1240 is filed. As a result, and because the Form 1240 must
be filed at least 90 days before the proposed increase is scheduled to take effect... and
the projections arc made for the year beginning with the proposed implementation date,
the period applicable for the true up will not exactly coincide with the previous year's
projections. For example, if an operator files annually on October I for rates to take
effect on January 1, the true-up will cover the period from the previous October through
September, but the projections will apply to the period January to December. 5
Paragon's filing was submitted on September 30, 1999, for a rate year beginning January 1, 2000
(like the example above). However, Pamgon's proposed me-up period is from January 1, 1999,
through December 31, 1999, even though the information available to Paragon at the time of the
filing was only through September 30, 1999. Therefore, the last three months of the true-up
See Social Contract at III.F.4.
See paragraph 79, footnote 151, FCC 95-397, released September 22, 1995.
Mr. Rick Moore
January. 28, 2000
Page 4
period as calculated by Paragon is based on estimated data and not on the actual data that
must be used.
The FCC has issued a number of decisions concerning this issue, many of which have been
related to filings submitted by Paragon in other jurisdictions. For example:
Upon review of the Operator's FCC Form 1240.. . we fred that Operator has not
correctly calculated its MPR. In particular, Operator made true-up adjustments through
to the effective date of the rate increase. This is incorrect... The tree-up dam is intended
to indicate real, not projected data, This policy is reflected in instructions accompanying
FCC Form 1240.6
In C2's opinion and based on these FCC decisions, Paragon should not be authorized to include
October 1999 through December 1999 in its Form 1240 u-tie-up period. The tree-up period
should be only for the nine months ended September 1999.7 Actual data for the October through
December 1999 period should be u-ued-up in Paragon's next rate f'ding.
The impact of allowing only a nine month flue-up period is to reduce the rate year 2000 Form
1240 proposed basic service calculation by approximately $.02.
2. Adjustment to Inflation Rates
The Form 1240 methodology allows for an inflation adjustment to be projected for each rate year.
Such projection becomes part of the u-tie-up computation in the next rate filing. Based on FCC
regulations, a cable operator is to use the most recent information published by the FCC
concerning quarterly in~ation~a~tors to be applied.8 At the time of Paragon'scurrent Form 1240
filing, the latest published inflation factor for any of the u-tie-up period in question was for the
first quarter of 1999. Paragon used this factor of 1.60% not only to true-up the entire flue-up
pedod, but also to project for the twelve months ended December 2000.
On October 4, 1999, which is shortly after Paragon filed its current Form 1240, the FCC
published the second quarter inflation factor at 1.35%. In December 1999, the FCC published the
third quarter inflation factor at 1.04%.
Typically, if the inflation factor used is the only issue found in a franchising authority's review of
a Form 1240 filing, the FCC has found in favor of the cable operator using what was the most
recent data available at the time the filing was made. This policy was detailed by the FCC in the.
Third Order on Reconsideration as follows:
We share National Cable Television Association's concern that rates adopted in an effort
to comply with our rules as quickly as possible may become unreasonable solely as a
6 See Order, DA 97-1852, released August 29, 1997, paragraph 9 (Paragon Cable operations in Portland,
Oregon); Order, DA 97-1936, released September 9, 1997, paragraph 9 (Paragon Cable operations in
Multnomah County); and Order, DA 97-1936, released September 9, 1997, paragraph 9 (Paragon Cable
operations in Gresham et. al.).
7 lypically, a true-up period would be for twelve months. In this case, Paragon already trued-up October
1998 through December 1998, albeit inappropriately, in its prior rate filing.
s FCC Form 1240 Instructions, Part I: Module C [Revised July 1996].
Mr. Rick Moore
January 28, 2000
Page 5
result of using later data to refresh the calculations. Operators should not be penalized
for making good faith attempts to comply with our rules in a timely manner.
When current rates are accurately justified by analysis using the old data (and that data
was accurate at the time), cable operators will not be required to change their rates.. .
When current rates are not justified by analysis using the old data (so that a rate
adjustment would be necessary. in any event), cable operators will be required to correct
their rates pursuant to current d~ta~ In these circumstances, the resulting rates must be
based on current data? [emphasis added]
Clearly, if the franchising authority finds adjustments need to be made other than those
attributable to the inflation factors, the FCC has found that the inflation factors can be adjusted
with ~a_t_a_ that became available subsequent to the date of the filing. The FCC's position on this
issue is evidenced in the above cited Portland Order (DA 97-1852). In that decision, the FCC
found error with Paragon's use of estimated data in its true-up computation for CPST rates and
also made an adjustment to reflect current inflation factor data:
This adjushuent required that we refresh Operator's inflation factors ~0
Therefore, because Paragon's rate year 2000 Form 1240 true-up period should be reduced from
twelve months to nine months to reflect actual data, the inflation factors for both the true-up
period and the projected period need to be adjusted to include those published inflation factors
through the most current data available (third quarter 1999). The impact of making such
adjustment is to reduce the current Form 1240 proposed basic service rate calculation by
approximately $.09.
Discussion - Form 1235
The FCC developed the Form 1235 in order to allow cable operators an opportunity to justify rate
increases for recovery of investment in cable system upgrades. It was intended to provide an
abbreviated means of filing a "cost-of-service" showing but only with respect to costs of upgrade
and not general operations of the system. For general operations, a cable operator could continue
to use the "benchmark" approach to developing rates reflected in the Form 1240. However, the
results era Form 1235 analysis could be added to the development of rates under the benchmark
method for a total tier rate.
In C2's opinion, the Form 1235 should not be available to Paragon under the Social Contract.
The major components of the Social Contract that apply include:
1. CPST rates can be increased by $1.00 in each rate year over a five year period to
fund an investment of $4 billion dollars to upgrade all Time Warner's systems
(Social Contract, Section III.F.4.)
2. Basic service rates only shall be increased for changes in external programming costs
and inflation (Social Contract, Section III.A.2.)
In the Form 1235, Paragon proposes to recover its investment in the City's upgrade even though
it already has collected from subscribers during the period 1996 through 1999 based on the
9 See Third Order on Reconsideralien, FCC 94-40, released March 30, 1994, paragraphs 93 and 94.
~o See Order, DA97-1852, released August 29, 1997, paragraph 10.
Mr. Rick Moore
January 28, 2000
Page 6
provision of the Social Contract as outlined in ~ 1 above. However, Paragon clearly already has
been compensated for this upgrade. By proposing now to spread the recovery between basic
service and CPST rate tiers, Paragon's proposal, in C2's opinion~ is not only a "double dip" into
the pockets of subscribers, but also is in direct violation of the Social Contract to which Time
Warher a~eed. The intent of the Social Contract is unequivocally stated in the following:
At the core of the Social Contract is the upgrade incentive plan whereby Time Wamer
will rebuild and upgrade all of its domestic cable systems and in turn will be allowed to
recover the costs of the upgrade over time by adding a charge to the highest penetrated
CPST during the years of the Social Contract. t~
Clearly, the $1.00 per year increase to the CPST tier was intended to cover all the upgrade costs
to both the basic service and other regulated tiers.~2 The Social Contract provided that Time
Warner would not seek to pass any capital costs, in addition to the already received $1 .00annual
increase to subscribers. ~3 Paragon should be prohibited from recovering costs already recovered
and from proposing to place some of that burden on the basic service subscriber.
Paragon takes a different position arguing that it is no longer bound by the provisions of the
Social Contract as it opted out pursuant to Section III.I.l.c:
In the event of any changes to the Act or any material changes to the FCC rules
hereunder relating to rates (BST,CPST or equipment) that are favorable to TWC, any
TWC system may elect to be relieved from the relevant rate provisions (Sections III.A.2.,
[I[.A.3., III.B., III. D., III.F.4., and III.G.) of this Contract accordingly, but shall remain
bound by all other pro~sions of this Contract.~4
The Company further states tha~, as a result of exercising this option, it is no longer subject to the
10% reduction to the basic service rate, the prohibition against adding satellite channels to the
basic service rate, FCC regulation of equipment rates, and the prohibition against filing cost-of-
service showings for the basic service tier.
In an August 1999 letter to the City', Paragon indicates that the event to which it attributes its
decision to opt out of theSocial Contract rate provisions was the passage of the
Telecommtmications Act of 1996 and the total deregulation of the CPST tier of service. It
appears that Paragon desires the freedom to increase its CPST rate beyond the limits provided for
in the Social Contract. Indeed, it is interesting to note that the provisions of the
Telecommunications Act related to the 1999 deregulation of the CPST tier have been known
since 1996, but Paragon continued to collect the $1.00 per year increase on CPST until such time
that this tier no longer was regulated by the FCC.
In C2's opinion,under the Social Contract there are only two circumstances under which Paragon
should be able to charge additional amounts for upgrade costs outside of what it has already
collected:
n SeeSocial Contract Order, FCC 95--478, paragraph 19.
12 SeeSocial Contract Order, FCC 95-478, paragraph 25-26
~3 Subject to the provisions discussed below concerning franchising authorities' requirements for upgrades
that exceed the requirements of the Social Contract.
14 Paragon's response to Third Request for Information for the City of Grapevine, question 2, dated January
4, 2000.
Mr. Rick Moore
January. 28. 2000
Page 7
I. In the event that the City had negotiated an upgrade that exceeded the scope of the
upgrade in the Social Contract (Section III.F.2.);and/or
2. Implementation of the favorable regulatory treatment on which the Company based
its decision provides for a incremental increase in the amounts already recovered
under the Social ConU~act (Section III.I. 1 .c.).
Based on C2's understanding the City did not request any additional upgrade requirements. With
respect to an allowance for the incremental increase in amounts to be recovered ~om the
favorable regulatory provisions (i.e. the deregulation of CPST under the Telecommunications
Act), Paragon has every fight to increase the CPST more than the $1.00 that would have been
added in 2000 under the final year of the Social Contract.
In C2 's opinion, Paragon has no basis to now seek total recovery of its upgrade costs pursuant to
the Form 1235 methodology. The Telecommunications Act did not establish this methodology,
nor did it provide for any new upgrade increment not already available to cable operators. It
merely provided for the deregulation of the CPST tier rates, through which Paragon could
justifiably recover the incremental amount that results under such favorable
regulatory provisions on this tier of service.
S~RY OF RECOMMENDATIONS
Based on the above findings C2 recommends the following adjustments be considered by the
City in determining the maximum permitted monthly basic service rate:
1. The True-up Periodsshould only reflect the nine months ended September 30, 1999.
2. The inflation factors should be adjusted to reflect the published factors for the first
through the third quarters of 1999.
3. The City should consider ordering a maximum permitted rate for the Form 1240
computation of $9.71 rather than the $9.82 proposed by Paragon.
4. The City should consider completely disallowing Paragon's proposed Form 1235
basic service rate increase of $1.45.
5. The City should order Paragon to issue refunds to subscribers within ninety (90) days
of a rate order based on the difference between the ordered rote and the January 3,
2000, implemented rate. Interest on the refund amount should accrue to the time the
refund is issued.
C2 greatly appreciates having this opportunity to work with the City of CoppeH. If you have any
questions regarding this report, the project activities, or any of the recommend~ons, please
contact Ms. Connie Cannady at (972) 726-7216.
Very truly yours,
C2 Consulting Services, Inc.
PARAGON
C A B L E
May 11, 2000
Mr. Rick Moore
City of Coppell
255 Parkway Blvd
Coppell, Texas 75019
RE: Rates for Basic Cable and Equipment Rates
Dear Mr. Moore:
This letter is to officially notify you that Paragon Cable is implementing rates for Basic Service
and for Addressable and Non-Addressable Converter Rental recommended by C2 Consulting,
effective no later than July 1, 2000. Refunds for overpayment plus interest, where applicable,
will be accomplished via one-time credits to affected customers' accounts.
Customers who will experience an effective rate change resulting in a refund will be notified
directly on their billing statements at the time the refund and rate change is reflected on the
statement. Customers who will not experience an effective rate change or refund will be notified
via legal advertising in local newspapers. Digital package customers, whose services and
equipment rates already are discounted, are not affected.
If we can provide additional information, please call me at 972-501-7144, or Dennis Moore at
972-501-7001. Thank you.
Sincerely,
S~an Patten
Vice President of Government and Public Affairs
Time Warner Cable, Southwest Division
CC: Dennis Moore, General Manager
2951 Kinwest Parkway, Irving, Texas 75063-3498
972/501-7000 Fax 972/501-7070
A Time Warnet Company
AGENDA REQUEST FORM
TM CImy V~th A B~sutifml Fulu~
CITY COUNCIL MEETING: June 27, 2000 ITEM #
ITEM CAPTION: Consider approval of a resolution authorizing Dallas County Commissioners Court to
carry fortyard the currein City of Coppcll CDBG funding, to fiscal year 2001-2002, and authorizing ~c
Mayor ~o sign.
SUBMITTED BY: Gary Sims
TITLE: Director of Parks and Leisure Services
STAFF COMMENTS: The City of Coppell qualifies each year for funding through the Community
Development Block Grant program, administered through the Dallas County Commissioners Court. The
City of Coppell does not curren~y have any designated projects which qualify for funding from the
Community Development Block Grant program. Dallas County has requested the City of Coppell, if it so
desires, to approve a resolution stating it's desire to carry forward the funding currently allocated, to the next
fiscal year. These funds can then be added to the amount that will be allocated in next year's funding cycle, at
which time the city can reassess the need for projects.
BUDGET AMT. $ AMT. EST. $ +X-BID $
FINANCIAL COMMENTS: 'gX'~
DIR. INITIALS: FIN. REVIEW'~ CITY MANAGER REVIEW:
Agenda Request Form - Doctmaent Name: "CDBGres
A RESOLUTION OF THE CITY OF COPPEIJ~ TEXAS
RESOLUTION NO. ·
A RESOLUTION FOR THE CITY OF COPPELL, TEXAS,
AUTHORIZING ~ MAYOR AND CITY MANAGER TO EXECUTE
THE APPROPRIATE EXTENSION OF FUNDING TO THE
COOPERATION AGREEMENT OF THE COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS AGREEMENTS WITH
DALLAS COUNTY, TEXAS, FOR THE FISCAL YEAR 2001-2002;
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Housing and Community Development Act of 1974 created the Urban
County Community Block Grant program; and,
WHEREAS, Dallas County, Texas, is applying to the U.S. Department of Housing and
Urban Development for granting entitlement under the aforementioned law; and,
WHEREAS, in order to qualify for this status, Dallas County must enter into cooperative
agreements with local governments to have the collective population of the City of less than One
Hundred Thousand (100,000) people to participate in such program; and,
WHEREAS, Texas cities and counties are authorized under Chapter 373 of the TEXAS
LOCAL GOVERNMENT CODE and the Section 381 of the TEXAS LOCAL GOVERNMENT CODE to
conduct essential Housing and Community Development activities; and,
WHEREAS, Texas cities and counties are authorized under Chapter 771 of the TEXAS
GOVERNMENT CODE tO enter into cooperative agreements with one another; and
WHEREAS, the City of Coppell entered into the cooperative agreement in fiscal year
1999-2000; and
WHEREAS, the funds previously allocated require future dedicated projects; and
WHEREAS, the City desires to extend the 2000-2001 Urban County Community
Development Block C'CDBG") funding agreements for the fiscal year 2001-2002.
NOW TFIF~REFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS,
SECTION 1. That the City of Coppell, Texas, desires to extend the current "CDBG"
program and funding for fiscal year 2001-2002 pursuant to the terms and conditions previously
agreed to by the parties.
SECTION 2. The City hereby authorizes the Mayor and/or the City Manager to execute
an extension and/or Agreement to acquire CDBG/Home program funds for the fiscal year 2001-
2002. That both the Mayor and City Manager are authorized to execute the appropriate
documents to extend or amend such Agreement to extend the funding as provided herein.
SECTION 3. This Resolution shall become effective immediately from and after its
passage and it is accordingly so resolved.
DULY RESOLVED AND ADOPTED by the City Council of the City of Coppell, Texas, on
this the __ day of ,2000.
CITY OF COPPELL, TEXAS
CANDY SHEEHAN, MAYOR
ATTEST:
LIBBY BALL, CITY SECRETLY
APPROVED AS TO FORM:
ROBERT E. HAGER, CITY ATTORNEY
(REH/cdb06/22700)
~ ~' ~ ,t ,~ ~~~ITY COUNCIL MEETING: June 27, 2000 ITEM
ITEM CAPTION:
Consider approval of an Interim Right-of-way Use Agreement between the City of Coppell and
Communication Systems Development, Inc. d/b/a Metromedia Fiber Network Services Texas, Inc. for use of
the right-of-way to install telecommunications lines and related appurtenances; and authorizing the Mayor to
sign.
SUBMITtED BY: Michael A. Martin, RE.
TITLE: Asst. City Engineer
STAFF COMMENTS:
Robert E. Hager, City Attorney is bringing forth this agenda item for consideration. He will be available to
answer any questions at the Council meeting.
BUDGET AMT. $ AMT. EST. $ +X-BID $ :
FINANCIAL COMMENTS: ~x~
DIR. INITIALS: FIN. REVIEWe~ CITY MANAGER REVIEW:
Agenda Request Form - Revised 5/00 Document Name: #06273
INTERIM PUBLIC RIGHT-OF-WAY USE AGREEMENT
BETWEEN THE CITY OF COPPELL, TEXAS AND COMMUNICATION SYSTEMS
DEVELOPMENT, II~JC. D/B/A METROMEDIA FIBER NETWORK SERVICES
TEXAS, INC., A CERTIFICATED TELECOMMUNICATIONS PROVIDER
This Public Right-of-Way Use Agreement (''Agreement") is hereby made and entered
into by and between the City of Coppell (''City"), a home rule municipal corporation organized
under the laws of the State of Texas, and acting by and through its City Manager, its duly
authorized agent and Communication Systems Development, Inc. d/b/a Metromedia Fiber
Network Services Texas, Inc. (''Company").
The following statements are true and correct and constitute the basis of this Agreement:
A. Company is a Certi~cated Telecommunications Provider CCTP"). A copy of
Company's certificate of convenience and necessity, certificate of operating authority or special
provider certificate of operating authority is attached hereto as Exhibit "A" and hereby made a
part of this Agreement for all purposes.
B. In accordance with Chapter 283 of the Loc. Gov't. Code, a CTP is entitled to
construct conduit, cable, switches and related appurtenances and facilities and excavate within
the Public Rights-of-Way in order to provide telecommunications services other than Cable
Services. Company wishes to excavate in the Public Rights-of-Way in order to provide
telecommunications services other than Cable Services in the City.
C. In accordance with Chapter 283 of the Loc. Gov't. Code, a municipality may
exercise police power-based regulations in the management of the use of its Public Rights-of-
Way by a CTP in order to protect the health, safety and welfare of the public. The City wishes to
set forth reasonable regulations and requirements in this Agreement for the use of the Public
Rights-of-Way by Company and Company is willing to abide by such regulations.
1. DEFINITIONS
Capitalized terms used in this Agreement and not otherwise defined within this
Agreement shall have the following meanings:
Access Line shall mean, unless the PUC adopts a different definition pursuant to Section
283.003 of the Texas Local Government Code, the same as in Local Government Code, Chapter
283.
Act shall mean the Federal Communications Act of 1934, as amended by the
Telecommunications Act of 1996.
Affiliate shall mean any individual, partnership, association, joint stock company limited
liability company, trust, corporation, or other person or entity who owns or controls, or is owned
or controlled by, or is under common ownership or control with, the entity in question.
] 34236
Cable Services shall mean the same as it is defined in the Federal Communications Act
of 1934, as amended by the Telecommunications Act of 1996.
Cable Television System shall mean the same as it is defined in the Federal
Communications Act of 1934, as amended by the Telecommunications Act of 1996.
Certificated Telecommunications Provider shall mean the same as it is defined in the Local
Government Code, Chapter 283.
Company shall mean Communication Systems Development, Inc. d/b/a Metromedia
Fiber Network Services Texas, Inc.
City shall mean the area within the corporate limits of the City of Coppell, Texas.
Director shall mean the Director of the City's Engineering Services Department or
authorized representative.
Facilities shall mean all facilities placed in, on, under or above the Public Right-of-Way
by or on behalf of Company, including, but not limited to, duct spaces, manholes, poles, conduit,
underground and overhead passageways, and other equipment, structures and appurtenances and
all associated physical devices in the Public Rights-of-Way used by Company for purposes other
than the provision of Cable Services.
FCC shall mean the Federal Communications Commission.
Person shall mean an individual, a corporation, a limited liability company, a general or
limited partnership, a sole proprietorship, a joint venture, a business trust or any other form of
business entity or association.
Public Rights-of-Way shall mean the same as it is defined in the Local Government
Code, Chapter 283.
PUC shall man the Public Utility Commission of Texas.
Open Video System shall mean the same as it is defined in Title 47, Code of Federal
Regulations, Section 76.1500.
2. PERMIT
Company shall not initiate or have initiated any kind of construction, installation,
maintenance, repairs or other work that requires the excavation, lane closure, or other physical
use of the Public Rights-of-Way unless company first obtains a respective permit C'Permit")
from the Director. The City will provide the Permit to Company free of charge following (i) full
compliance with the prerequisites set forth in Section 3 of this Agreement and (ii) the Director's
review of Company' s Permit application within a reasonable time following its submission to the
Director.
34236
3. PREREQUISITES TO ISSUANCE OF CONSTRUCTION PERMIT
3.1 Registration.
In order for the City to know which CTPs own Facilities in the City's Public
Rights-of-Way, Company shall register with the City Manager and provide the following
information at a minimum: (i) Company's name and (ii) the current name, address, and
telephone number(s) of a contact employed by and with binding and decision-making
authority for the Company and who is available twenty-four (24) hours per day.
Company shall update and keep current its registration with the City at all times.
3.2 Application.
Company shall submit an application for a Permit, including plan documents, to
the Director at least ten (10) working days prior to the commencement of the respective
use of the Public Rights-of-Way except (i) where waived by the Director in writing or (ii)
in the event of an emergency response related to an existing Facility owned by Company.
The Permit application shall include the following information at a minimum: (i) the
name of Company; (ii) the current name, address and telephone number(s) of a contact
employed by and with binding and decision-making authority for the Company and who
is available twenty-four (24) hours per day; (iii) the name, address and telephone
number(s) of any contractor or subcontractor that will be performing work in, on or
above the Public Rights-of-Way; (iv) the proposed location of any construction and route
of all Facilities that Company intends to install in, on, or above the Public Rights-of-
Way; (v) the construction and/or installation methods that Company intends to employ in
order to protea existing structures, fixtures and facilities within or adjacent to the
portions of the Public Rights-of-Way that will be affected by Company's respective
project; (vi) the dates and times that Company wishes to use the Public Rights-of-Way;
(vii) shall submit detailed engineering drawings to scale, no larger than 24" x 36" which
depicts the Right of Way width, street width and the location of the water, sanitary sewer
and storm drainage systems currently located in such Right-of-Way; and (viii) proof of
insurance and bonding requirements as required by applicable City Ordinances. Upon
completion of construction, Company shall provide the Director copies of the "as built"
documents for each installation in the Rights-of-Way.
3.3 Executed Public Right-of-Way Use Agreement.
Company shall provide the Director with a fully executed copy of this Agreement
upon submission of Company' s Permit application.
3.4 Compliance With All City Ordinances.
Company agrees to comply with all City Ordinances on construction in the Public
Rights-of-Way, and such ordinances the Company acknowledges it has either reviewed
or had an opportunity to review.
3 34236
4. MUNICIPALITIES
4.1 Sunset.
Company shall pay the City a quarterly fee calculated monthly and based upon
the Access Line rates for the City adopted by the PUC in accordance with Section
283.055 of the Texas Local Government Code. This Section 4.2 shall not abrogate or
affect Company's obligation to pay the City the Fee calculated in accordance with
Section 4.1 for the period of time between the effective Date of this Agreement and the
date on which the PUG adopts Access Line rates for the City.
4.2 When Due.
Company shall pay the Fee on a calendar quarterly basis to the City at the address
provided in Section 7 of this Agreement. The Fee shall be due within forty-five (45) days
following the last day of each quarter.
This Agreement shall become effective on the date of its execution ("Effective Date"),
and shall terminate upon the effectiveness of a City ordinance goveming the use of the Public
Rights-of-Way by CTPs and other public utilities.
6. CABLE SERVICES AND OPEN VIDEO SYSTEMS PROHIBITED
Company shall not provide Cable Service or an Open Video System through its Facilities
or initiate construction of Cable System or Open Video System in the Public Rights-of-Way
without a franchise awarded by the City in accordance with the Act.
7. NOTICES
Any notices required pursuant to the provisions of this Agreement or provided by the
City or Company to the other shall be (i) hand-delivered to the other party or (ii) mailed through
the United States Postal Service, postage paid, certified mail, return receipt requested, addressed
as follows:
TO THE CITY: WITH A COPY TO:
Jim Witt, City Manager Robert E. Hager, City Attorney
City of Coppell NICHOLS, JACKSON, DILLARD,
P.O. Box 478 HAGER &SMITH, LLP
255 Parkway Boulevard 1800 Lincoln Plaza
Coppell, Texas 75019 500 N. Akard
Dallas, Texas 75201
4 34236
TO COMPANY:
John McLeod
Vice President and General Manager
Metromedia Fiber Network Services, Inc.
Two Lincoln Centre
5420 LBJ Freeway, Suite 350
Dallas, Texas 75240
8. COMPLIANCE WITH LAWS
Company agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of the City, and all rules and regulations established by the Director in order to
protect the public health, safety and welfare.
9. NO WAIVER
The failure of the City to insist upon the performance of any term or provision of this
Agreement or to exercise any rights that the City may have, either under this Agreement or the
law, shall not constitute a waiver of the City's rights to insist upon appropriate performance or to
assert any such right on any future occasion.
10. GOVERNING LAW AND VENUE
This Agreement shall be construed pursuant to and in accordance with the laws of the
United States of America and the State of Texas. If any action, whether real or asserted, at law
or in equity, arises out of the terms of this Agreement, venue for such action shall lie exclusively
in state court located in Dallas County, Texas, or the United States District court for the Northern
District of Texas, Dallas Division, unless otherwise provided by law.
11. CONFERENCES
At the request of either the City or Company, the City and Company shall meet at
reasonable times and upon reasonable notice to discuss any aspect of this Agreement or
Company' s use of the Public Rights-of-Way.
12. SEVERABILITY
If any provision of this Agreement is held to be invalid, illegal or unenforceable by a
final order entered by a court of competent jurisdiction, the validity, legality or enforceability of
the remaining provisions shall not in any way be affected or impaired. For purposes of this
Agreement, a court order shall be final only to the extent that all available legal rights and
remedies pertaining to such order, including, without limitation, all available appeals, have been
exhausted.
5 3423~
13. HEADINGS NOT CONTROLLING
Headings and titles that are used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
14. ENTIRETY OF AGREEMENT
This Agreement contains the entire understanding and agreement between the City and
the Company as to the matters contained herein. Any prior or contemporaneous oral or written
agreement is hereby declared null and void to the extent in conflict with the terms and conditions
of this Agreement. This Agreement shall not be amended unless agreed to in writing by both
parties.
CITY OF COPPELL, TEXAS COMMUNICIATIONS SYSTEMS
DEVELOPMENT, INC. d/b/a
METROMEDIA FIBER NETWORK
SERVICES TEXAS, INC.
By: By:
Jim Mr. Jim Witt Name:
City Manager Title:
ATTEST:
By:
Libby Ball, City Secretary
APPROVED AS TO FORM:
By:
Robert E. Hager, City ARorney
34236
II
~ Y~ · ~~~ITY COUNCIL MEETING: June 27, 2000 ITEM # ] 0/2227
ITEM CAPTION:
Consider approval of an Interim Right-of-way Use Agreement between the City of Coppell and Caprock
Telecommunications Corporation for use of the right-of-way to install telecommunications lines and related
appurtenances; and authorizing the Mayor to sign.
SUBMITtED BY: Michael A. Martin, RE.
TITLE: Asst. City Engineer
STAFF COMMENTS:
Robert E. Hager, City Attorney is bringing forth this agenda item for consideration. He will be available to
answer any questions at the Council meeting.
BUDGET AMT. $ AMT. EST. $ +\-BID $
FINANCIAL COMMENTS: ~X/'
DIR. INITIALS: FIN. REVIE~ CITY MANAGER REVIEW:
Agenda Request Form - Revised 5/00 Document Name: #06271
INTERIM PUBLIC RIGHT-OF-WAY USE AGREEMENT
BETWEEN THE CITY OF COPPELL, TEXAS AND CAPROCK
TELECOMMUNICATIONS CORPORATION,
A CERTIFICATED TELECOMMUNICATIONS PROVIDER
This Public Right-of-Way Use Agreement ("Agreement") is hereby made and entered
into by and between the City of Coppell ("City"), a home rule municipal corporation organized
under the laws of the State of Texas, and acting by and through its City Manager, its duly
authorized agent and CapRock Telecommunications Corporation C'Company"), a Texas
corporation.
The following statements are true and correct and constitute the basis of this Agreement:
A. Company is a Certi~cated Telecommunications Provider C'CTP"). A copy of
Company's certificate of convenience and necessity, certificate of operating authority or special
provider certificate of operating authority is attached hereto as Exhibit "A" and hereby made a
part of this Agreement for all purposes.
B. In accordance with Chapter 283 of the Loc. Gov't. Code, a CTP is entitled to
construct conduit, cable, switches and related appurtenances and facilities and excavate within
the Public Rights-of-Way in order to provide telecommunications services other than Cable
Services. Company wishes to excavate in the Public Rights-of-Way in order to provide
telecommunications services other than Cable Services in the City.
C. In accordance ~ith Chapter 283 of the Loc. Gov't. Code, a municipality may
exercise police power-based regulations in the management of the use of its Public Rights-of-
Way by a CTP in order to protect the health, safety and welfare of the public. The City wishes to
set forth reasonable regulations and requirements in this Agreement for the use of the Public
Rights-of-Way by Company and Company is willing to abide by such regulations.
1. DEFINITIONS
Capitalized terms used in this Agreement and not otherwise defined within this
Agreement shall have the following meanings:
Access Line shall mean, unless the PUC adopts a different definition pursuant to Section
283.003 of the Texas Local Government Code, the same as in Local Government Code, Chapter
283.
Act shall mean the Federal Communications Act of 1934, as amended by the
Telecommunications Act of 1996.
Affiliate shall mean any individual, partnership, association, joint stock company limited
liability company, trust, corporation, or other person or entity who owns or controls, or is owned
or controlled by, or is under common ownership or control with, the entity in question.
I 34276
Cable Services shall mean the same as it is defined in the Federal Communications Act
of 1934, as amended by the Telecommunications Act of 1996.
Cable Television System shall mean the same as it is defined in the Federal
Communications Act of 1934, as amended by the Telecommunications Act of 1996.
Certificated Telecommunications Provider shall mean the same as it is defined in the
Local Government Code, Chapter 283.
Company shall mean CapRock Telecommunications Corporation.
City shall mean the area within the corporate limits of the City of Coppell, Texas.
Director shall mean the Director of the City's Engineering Services Department or
authorized representative.
Facilities shall mean all facilities placed in, on, under or above the Public Right-of-Way
by or on behalf of Company, including, but not limited to, duct spaces, manholes, poles, conduit,
underground and overhead passageways, and other equipment, structures and appurtenances and
all associated physical devices in the Public Rights-of-Way used by Company for purposes other
than the provision of Cable Services.
FCC shall mean the Federal Communications Commission.
Person shall mean an individual, a corporation, a limited liability company, a general or
limited partnership, a sole proprietorship, a joint venture, a business trust or any other form of
business entity or association.
Public Rights-of-Way shall mean the same as it is defined in the Local Government
Code, Chapter 283.
PUC shall man the Public Utility Commission of Texas.
Open Video System shall mean the same as it is defined in Title 47, Code of Federal
Regulations, Section 76.1500.
2. PERMIT
Company shall not initiate or have initiated any kind of construction, installation,
maintenance, repairs or other work that requires the excavation, lane closure, or other physical
use of the Public Rights-of-Way unless company first obtains a respective permit C'Permif')
from the Director. The City will provide the Permit to Company free of charge following (i) full
compliance with the prerequisites set forth in Section 3 of this Agreement and (ii) the Director's
review of Company' s Permit application within a reasonable time following its submission to the
Director.
2 342%
3. PREREQUISITES TO ISSUANCE OF CONSTRUCTION PERMIT
3.1 Registration.
In order for the City to know which CTPs own Facilities in the City's Public
Rights-of-Way, Company shall register with the City Manager and provide the following
information at a minimum: (i) Company's name and (ii) the current name, address, and
telephone number(s) of a contact employed by and with binding and decision-making
authority for the Company and who is available twenty-four (24) hours per day.
Company shall update and keep current its registration with the City at all times.
3.2 Application.
Company shall submit an application for a Permit, including plan documents, to
the Director at least ten (10) working days prior to the commencement of the respective
use of the Public Rights-of-Way except (i) where waived by the Director in writing or (ii)
in the event of an emergency response related to an existing Facility owned by Company.
The Permit application shall include the following information at a minimum: (i) the
name of Company; (ii) the current name, address and telephone number(s) of a contact
employed by and with binding and decision-making authority for the Company and who
is available twenty-four (24) hours per day; (iii) the name, address and telephone
number(s) of any contractor or subcontractor that will be performing work in, on or
above the Public Rights-of-Way; (iv) the proposed location of any construction and route
of all Facilities that Company intends to install in, on, or above the Public Rights-of-
Way; (v) the construction and/or installation methods that Company intends to employ in
order to protect existing structures, fixtures and facilities within or adjacent to the
portions of the Public Rights-of-Way that will be affected by Company's respective
project; (vi) the dates and times that Company wishes to use the Public Rights-of-Way;
(vii) shall submit detailed engineering drawings to scale, no larger than 24" x 36" which
depicts the Right of Way width, street width and the location of the water, sanitary sewer
and storm drainage systems currently located in such Right-of-Way; and (viii) proof of
insurance and bonding requirements as required by applicable City Ordinances. Upon
completion of construction, Company shall provide the Director copies of the "as built"
documents for each installation in the Rights-of-Way.
3.3 Executed Public Right-of-Way Use Agreement.
Company shall provide the Director with a fully executed copy of this Agreement
upon submission of Company' s Permit application.
3.4 Compliance With All City Ordinances.
Company agrees to comply with all City Ordinances on construction in the Public
Rights-of-Way, and such ordinances the Company acknowledges it has either reviewed
or had an opportunity to review.
3 342%
4. MUNICIPALITIES
4.1 Sunset.
Company shall pay the City a quarterly fee calculated monthly and based upon
the Access Line rates for the City adopted by the PUC in accordance with Section
283.055 of the Texas Local Government Code. This Section 4.2 shall not abrogate or
affect Company's obligation to pay the City the Fee calculated in accordance with
Section 4.1 for the period of time between the effective Date of this Agreement and the
date on which the PUC adopts Access Line rates for the City.
4.2 When Due.
Company shall pay the Fee on a calendar quarterly basis to the City at the address
provided in Section 7 of this Agreement. The Fee shall be due within forty-five (45) days
following the last day of each quarter.
TERM
This Agreement shall become effective on the date of its execution ("Effective Date"),
and shall terminate upon the effectiveness of a City ordinance governing the use of the Public
Rights-of-Way by CTPs and other public utilities.
6. CABLE SERVICES AND OPEN VIDEO SYSTEMS PROHIBITED
Company shall not provide Cable Service or an Open Video System through its Facilities
or initiate construction of Cable System or Open Video System in the Public Rights-of-Way
without a franchise awarded by the City in accordance with the Act.
7. NOTICES
Any notices required pursuant to the provisions of this Agreement or provided by the
City or Company to the other shall be (i) hand-delivered to the other party or (ii) mailed through
the United States Postal Service, postage paid, certified mail, return receipt requested, addressed
as follows:
TO TItE CITY: WITIt A COlbY TO:
Jim Witt, City Manager Robert E. Hager, City Attorney
City of Coppell NICHOLS, ]ACKSON, DILLARD,
P.O. Box 478 HAGER &SMITH, LLP
255 Parkway Boulevard 1800 Lincoln Plaza
Coppell, Texas 75019 500 N. Akard
Dallas, Texas 75201
4 342%
TO COMPANY:
Andrew H. Roberrs
CAPROCK TELECOMMUNICATIONS CORPORATION
15601 Dallas Parkway
Suite 700
Dallas, Texas 75001
8. COMPLIANCE WITH LAWS
Company agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of the City, and all rules and regulations established by the Director in order to
protect the public health, safety and welfare.
9. NO WAIVER
The failure of the City to insist upon the performance of any term or provision of this
Agreement or to exercise any rights that the City may have, either under this Agreement or the
law, shall not constitute a waiver of the City's rights to insist upon appropriate performance or to
assert any such right on any future occasion.
10. GOVERNING LAW AND VENUE
This Agreement shall be construed pursuant to and in accordance with the laws of the
United States of America and the State of Texas. If any action, whether real or asserted, at law
or in equity, arises out of the terms of this Agreement, venue for such action shall lie exclusively
in state court located in Dallas County, Texas, or the United States District court for the Northern
District of Texas, Dallas Division, unless otherwise provided by law.
11. CONFERENCES
At the request of either the City or Company, the City and Company shall meet at
reasonable times and upon reasonable notice to discuss any aspect of this Agreement or
Company' s use of the Public Rights-of-Way.
12. SEVERABILITY
If any provision of this Agreement is held to be invalid, illegal or unenforceable by a
final order entered by a court of competent jurisdiction, the validity, legality or enforceability of
the remaining provisions shall not in any way be affected or impaired. For purposes of this
Agreement, a court order shall be final only to the extent that all available legal rights and
remedies pertaining to such order, including, without limitation, all available appeals, have been
exhausted.
5 34276
13. HEADINGS NOT CONTROLLING
Headings and titles that are used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
14. ENTIRETY OF AGREEMENT
This Agreement contains the entire understanding and agreement between the City and
the Company as to the matters contained herein. Any prior or contemporaneous oral or written
agreement is hereby declared null and void to the extent in conflict with the terms and conditions
of this Agreement. This Agreement shall not be amended unless agreed to in writing by both
parties.
CITY OF COPPELL, TEXAS CAPROCK TELECOMMUNICATIONS
CORPORATION
By: By:
Jim Mr. Jim Witt Name: Andrew H. Roberts
City Manager Title:
ATTEST:
By:
Libby Ball, City Secretary
APPROVED AS TO FORM:
By:
Robert E. Hager, City Attorney
34276
AGENDA REQUEST FORM
· ~ 't~~ CITY COUNCIL MEETING: June 27, 2000 ITEM # I J
·
ITEM CAPTION: Review and adoption of Council goals as identified at Council Retreat held on
June 9 and 10, 2000.
SUBMITTED BY: Jim Witt
TITLE: City Manager
STAFF COMMENTS:
BUDGET AMT. $ AMT. EST. $ +X-BID $
FINANCIAL COMMENTS: ~\~
DIR. INITIALS: FIN. REVIEW.~ CITY MANAGER REVIEW:
Agenda Request Form - Revised 5/00 Document Name: !Goals
Go , ,s FOR 2000 - 2001
TOP
Lrffxastmctttre Maintenance
Policy Issues
· Review IMF ordinance
· Review current & projected needs
· Annual funding
· Process of identifying projects
Public Water Use & Supply
Policy Issues
· Geological studies
· Water tank - pump station
· Supplement system while we get wells
· Other water sottrees
· Public information/education
Old Coppell
Policy Issues
· Direction and allocation of resources
· Master plan
· Hire Consultant to develop plan for consideration
· Incentives for development
· Task force of local business people to solicit input
· Historical site
· Acquisition
· Historic overlay issues
· Train depot
Park Land Acquisition
Policy Issues
· Determine Needs
· Determine cost to meet needs
. Determine availability and opportunities
· Address needs for Soccer
· Northlake
10
Homestead Exemption
Policy Issues
· Continue to assess feasibility
· Impact
· Options
· Effect now & in the near future
HIGH
Cemetery
Policy Issues
· Determine the City's role
· Explore public/private opportunities
· Determine potential location
· Explore revenue opportunities associated with development
· Determine costs
Landscape Techniques
Policy Issues
· Identify City facilities lhat need to be addressed
· Review plant material~& zoning ordinances
· Explore incentives
· Explore use of wild flowers
MODERATE
Community Events
Policy Issues
· Goal - maintain our "small ton" feeling
· Explore opportunities for public/private parmerships
· Address scheduling and timing to prevent conflicts with other events
· Determine how many events we should have
· Explore and determine Staff implications
· Determine a budget and ROI analysis
· Build accounts for future growth of events
11
Employee Retention
Policy Issues
· Complete salary survey report
· Explore creative ways to attract & retain
Landscape Entries
Policy Issues
· Explore use of wild flowers
· Consider monument signs at entries
· Explore cost of seasonal planting at entry ways and in medians
· Explore impact of using Winter Rye
· Determine maintenance implications
· Goal is to make us unique
Olympics 2012
Policy Issues
· Determine community interest
· Determine potential for corporate support
· Explore opportunities for venue, practice field, and host city activities
· Determine transportation implication
· Develop Budget & ROI analysis
Specific Direction Provided for Other Activities
· Staff bring Charter review ideas to Council
· Pursue Northlake to next level or other opporttmities
· Explore library needs based on new staff person in charge
Additional Opportunities Discussed
Potential Goals from Previous Year's Activity
· Creek erosion study
· P&Z interpretation to SUP
· Noise ordinance
· Neighborhood integrity
· Regional transportation -- 121
· Charter review
· Impact of air quality
12
Potential New Goals
Kid Country Playgrounds
· Street sweeping
· Library - meet community needs
· Location of tennis courts
· Northlake - final determination & communication to citizens
· Airport land use responses
· Water wells at Andrew Brown Park East
· Youth Advisory Board
· Community service opportunities
· Investigate conversion/grants for changing our sources of fuel
Analysis of the Retreat
Pluses Minuses
· More open discussion · Pat's absence
· Recognize the importance of , Ladies restrooms too far away
closure on each issue · Longer tapes - we had to stop too
· We discussed relationships without oecen
activities
· More pointed discussions
· Movement toward everyone being
on the same page
· Success were big items
· Goals for coming year are diverse
· Realize role of management team in
0UF SUCCESS
13
COUNCIL MEETING: June 27, 2000 ITEM
CITY MANAGER'S REPORT
A. Update on Wagon Wheel and MacArthur Parks.
CTrY MANAGER'S REVIEW:
~CITY COUNCIL MEETING: June 27, 2000 ITEM
MAYOR AND COUNCIL REPORTS
A. Report by Mayor Shechart regarding Opening of the Aquatics/Recreation Center.
B. Report by Mayor Sheehan regarding the 4t~ of July activities.
C. Report by Councilmember Peters regarding Grapevine Springs Park Commemoration
Celebration on September 23, 2000.
CITY MANAGER'S REVIEW:
CITYs . ° COUNCIL MEETING: June 27, 2000June ITEM
WORK SESSION
A. Continuation of Mayor and Couch Budget if necessary. 1) Discussion of Service Organization Funding Levels
2) Line Item Detail
CITY MANAGER'S REVIEW: