Ord 1885COUNCIL BILL N0. 817
ORDINANCE NO 1885
AN ORDINANCE ESTABLISHING A CABLE TELEVISION RATE SCHEDULE PURSUANT TO ORDINANCES
N0. 1766 and 1784, AND DECLARING AN EMERGENCY.
WHEREAS, Northland Communications Corporation, Inc., has a non-exclusive
franchise for the operation of cable television pursuant to Ordinance No. 1766
and Ordinance No. 1784 and,
WHEREAS, said franchisee petitioned for a rate change pursuant to
said ordinances, and
WHEREAS, the Woodburn City Council held a public hearing on the
matter at its June 11, 1984 and July 23, 1984, meetings, and
WHEREAS, the Woodburn City Council received a legal opinion that
under recent law the City has the jurisdiciton to regulate cable television
rates only for "basic" service, NOW, THEREFORE,
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. That after the conclusion of a public hearing, having
duly considered the information and testimony presented, the Woodburn City
Council hereby adapts the rate proposed by the franchisee, Northland Communica-
tions Corporation, Inc., as set out i.n its petition dated June 4, 1984, which
is attached hereto as Exhibit "A" and by this reference incorporated herein.
Section 2. That pursuant to the applicable ordinances this rate
change is effective 94 days from the date of said petition.
Section 3. That Section 15, Ordinance No. 1784, is hereby amended
to read as follows:
Section 15. Rate Schedule for Basic Service
(1) Company is authorized to charge a monthly rate
of $5.95 for basic service.
(2) Basic service as referred to :in (1) of this
section contains the following channels:
PAGE 1 - COUNCLL BILL N0. 817
ORDINANCE N0. 1885
Channel Service Source
2 KATU ABC - Portland
3 KECH
Arts and Entertainment
Network (ARTS) Satellite
(during evening hours when KECH is scrambled)
4 Congressional Satellite Public
Affairs Network (C-SPAN} Satellite
Financial News Network (FNN) Satellite
(7-10 am, ~+-7 pm daily)
5 Christian Broadcasting Network-Satellite
b. KOIN Portland
CBS
7 Spanish International Network _
Satellite
$ KGW NBC - Portland
9 WPIX Satellite
10 KOAP PBS - Portland
I1 Access Local
12 KPTV Independent -Portland
13 KPDX Independent - Portland
Section 4. This ordinance being necessary for the immediate
preservation of the public peace, health, and safety, an emergency is
declared to exist and this ordinance shall take effect immediately upon
passage by the Council and approval by the Mayor.
Approved as to form; / ~
City Attorney
S- g - ~~
Date
.,.
APPROVED : ~ ~'' ~ ~ ~. ,~...,,~..~`,~
.~. .,._.
~~~ W LIAM J. COSTII~E ~~ ~-:~_~"
Y
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Off ice of the Recorder
ATTEST:` ~ - ~ ~ ~y '
.t:.:,..
B R Y U BU RIS, Recorder
City of Woodburn, Oregon
Au gust 17, 1984
Au gust 17, 1984
Aug ust 17, 1984
Aug ust i 7, 1984
Page 2 - COUNCIL BILL N0. 817
ORDINANCE N0. ~~$~
Exhibit A
NORTHLAND
COMMUNIC6~TIONS
CORPOf~4TION
June ~ , 19$4
Mr. Max Pope
City Administrator
City of Woodburn
270 Montgomery Street
Woodburn, Oregon 97071
Dear Mr. Pope:
2520 One Union Square Building
Seattle, Washington 98101
X206) 621-1351
In accordance with Section 15 (3) of Ordinance No. 1784 and Section 19 of
Ordinance No. 176b, Woodburn Cable TV Associates hereby requests an increase
in the monthly rate for Premiun Service. We propose to increase the monthly
rate for that service by $2.00. The increase would result in the following
monthly rates:
Premiun Service Primary Outlet $10.95
Additional Outlet 4.75
FM Outlet 4.75
In return for this increase, we hereby offer to re___duc,_e the monthly rate for
Basic Service from $7.75 to $5.95. Additional outlets would be reduced to
$1.95 per month for this service. Basic Service would be a 12-channel non-
converter service with the following channels:
Channel Service Source
2 KATU ABC - Portland
3 KECH
Arts and Entertainment
Network (ARTS) satellite
(during evening hours when KECH is scrambled)
4 Congressional Satellite Public Affairs
Network (C-SPAN) satellite
Financial News Network (FNN)satellite
(7-10 am;4-7 pm daily)
5 Christian Broadcasting Network
satellite
6 KOIN CBS - Portland
7 Spanish International Network
satellite
$ KGW NBC - Portland
9 WPIX satellite
(New York City Independent Station)
10 KOAP PBS - Portland
11 Access local
12 KPTV Independent - Portland
13 KPDX Independent - Portland
This line-up provides an excellent mix of satellite services, plus improved
reception of all Portland stations.
~oF
NORTHIAND COMMUNIC~ITIONS C0RP0f~4TI0N
Mr. Max Pope
June 4, 198
Page Two
Arts and Entertainment Network {ARTS) -provides high-quality
entertainment, including Broadway plays and dramatic and comedy
series from the British Broadcasting Corporation. In the months
ahead, there will be performances by Dudley Moore, Sir Laurence
Olivier, Diana Rigg, William Hurt, Pav arotti, James Coco, Maria
Callas, Mel Brooks, Sid Caesar, and other stars.
Congressional Satellite Public Affairs Network (C-SPAN) -provides
live, gavel-to-gavel coverage of the U.S. House of Representatives,
plus related programs.
Financial News Network {FNN) -gives complete coverage of business
and financial news. It includes five popular programs "FNN Morning
Line," "It's Your Money," "The Market Today," "Market Watch," and
"FNN Fi na 1."
Christian Broadcasting Network (CBN) -includes popular syndicated
programs fromthe national networks, classic movies, religious
programs, Bible teachings, major musical productions, interviews, and
on-1 ocation specials.
Spanish International Network (SIN) - is the first television network
in the country devoted entirely to Spanish language programing. It
imports a selection of the best television programs from Mexico,
Spain, and Central and South America, as well as offering original
programs produced for the Spanish-speaking population of this
country.
WPIX - is a leading independent television station from New York
City. It has an excellent movie package with such hits as "The
Turning Point," "Housecalls" and "American Graffiti." It has a
strong line-up of regular series such as "Star Trek," "Wild Kingdom,"
"Hee-Haw" and "Happy Days." It carries prime time special s such as
"A Woman Ca 11 ed Gol da" and "E1 eanor and Franklin." The 1 i st of
sports events includes 7 col l ege bowl games, Big East Conference
basketball and 102 games of the New York Yankees.
The rate reducti~. would result in the following monthly charges on Basic
Service:
Basic Service Primary Outlet $5.95
Additional Outlet 1.95
FM Outlet 1.95
Cable subscribers would still have to subscribe to the Premium Service to
receive any of our four pay television services, HBO, Cinemax, Disney and
Playboy.
~~JF
NORTHIAND COMMUNIOITIONS CORPOf~TION
Mr. Max Pope
June 4, 1984
Page Three
These changes "are necessary in the best interest of the City and Company's
subscribers, and are fair and reasonable compensation to Company for the
services being rendered." (Section 15, Ordinance No. 1784) In support of
this, we have enclosed two documents.
1. Exhibit A shows the current basic monthly rates for other syst~ns
in Oregon. This shows that the proposed increase for Premium
Service would place our rate only slightly above those in Eugene
and Salem, and still well below those in Medford, Cottage Grove,
Portland and Roseburg. The proposed decrease for Basic Service
would place that rate well below the 12 channel rates in Medford,
Cottage Grove and Roseburg.
2, Exhibit B is the audited financial statements of Woodburn Cable
Tv Associates, These statements cover 1983 plus the start-up
phase at the end of 1982,
Most of our costs have escalated since the time we submitted the present rate
structure as part of our franshise proposal in March, 1982. As one example,
our cost for ESPN has doubled. In addition, we have found that only about 33~
of the homes in Woodburn subscribe to cable television. This shows that cable
is not a necessity, not a utility, in Woodburn. Therefore, our pricing
structure needs to remain flexible in order for us to continue providing a
desirable service.
Under Section 19 of Ordinance No. 1766, we are required to petition the
Council at least g0 days prior to the proposed effective date of the rate
changes. It would be most helpful to us if we could make these rates
effective August 1. In particular, we are very anxious to begin marketing the
new, low-priced Basic Service. Since that rate change invol ves a reduction
for the benefit of potential subscribers, and both rate changes would still
have nearly a 60 day notice period, we respectfully ask that the Council waiv e
the 90 day period and allow us to make the new rates effective August 1.
P1 ease 1 et me know when the public hearing on our request wil 1 be held. We
would be happy to answer any questions you may have.
Sincerely,
~~
f'~.r
,~`° ; ,-
David D. Kinley
Executive Vice Pres' ent
DDK:dlf
Enclosures
lOF
NORTNIAND COMMUNICATIONS CORPOR4TION
Salem ~~
9.75
~~
30
Eugene 9.95 35
Medford 11.22 12
13.22 16
Cottage Grove 7.90 12
11.90 35
Portland 10.95 35
Roseburg 10.00 12
1~F