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05-150r. �f� �i �U�j��`�� a�a3fo5 Is��Y3�i�Ci�l OF SAINT PAUL, MINNESOTA Presented By Referred To � Committee: Date: �� WHExEas, under Section 623 of the Cable Communications Policy Act of 1984, 47 U.S.C. § 543, as amended ("Cable Act") the City of St. Paul, Minnesota ("City"), is permitted to regulate rates for basic cable service and equipment (including installations); and WHEREas, the Comcast of St. Paul, Ina ("Comcast") submitted a filing on or about February 27, 2004 purporting to support basic service rates for the period June 1, 2004 through May 31, 2005 (the 2004 Form 1240 Filing); and submitted a filing on or about the same date purporting to justify its equipment rates for the same period (the 2004 Form 1205 Filing); and WHFREas, the City has one year from the filing date to issue a final order with respect to those filings, except as the deadline for action has been extended, and the deadline for acrion on the 2004 Form 1205 Filing has been extended;and WHEttEns, the City has worked with the firm of Ashpaugh & Sculco, CPAs, PLC to review the 2004 Form 1240 Filing, and has received a letter report regarding that review; has received comments regarding that report from Comcast dated Februarv 4 and Februarv 15. 2005: has received responding letters from Ash�g and Sculco dated Februarv 7 and Februarv 18. 2005: and has considered those and other comments received during the course of the review of the Comcast filing; THEREFORE, BE IT RESOLVED, The attached "ORDER OF THE CITY COIJNCII, OF ST. PAiJL, MINNESOTA, SETTING CABLE TELEVTSION RATES FOR BASIC SERVICE CHARCED BY COMCAST OF ST. PAIJL, INC. PURSUAriT TO THE FCC FORM 1240 FIL,ED FEBRiJARY, 2004," is hereby adopted as if fully set forth herein, and shall govern the basic service rates charged within the City of St. Paul. 2. This Resolution, including the Order incorporated by reference herein, shall be effective immediately upon passage. Council File # � — �� Green Sheet # 3025270 This Resolution and the Order incorporated herein are based on information provided to the City by Comcast. If the information provided by Comcast proves to have been false, misleading or incomplete, the City reserves the right to make such further adjushnents to rates as it may find appropriate. Yeas Nays Absrnt Benanav f Bos4om f Harris f Helgen ✓ Lantry : � Montgomer Thune Adopted by C Adoption Cer By: Approved by By: Requested by the Office of Technology By: ` �� -_ �� -c � - � Form Approved by City Attomey � t:: ,� � DS- l5� � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � . --- ,� -T�o��d� i ��, ; Green Sheet NO: 3025270 CoMaM Person & Phone: i -' Karen .lohnson 266-8910 � Assign Must Be on Council Agenda by (Date): Number I For I Routing Order . Contract Type: i RE-RESOLUiION Total # of Signature Pages _(Clip All veoarvnem sent � o rerson mmaware 0 TeclwoloevandMaoaeementS : . l TecLnol a dMau e entS Denar�entDirector � 2 Citv Attomev ' Lis Vei[6 3 a or•s Office I Mavor/Assistant I 4 CooncO � 5 Ciri Clerk l CiN Clerk �� Resolution Setting Cable Television Rates for Basic Service Charged by Comcast of St. P,aul, Inc. Pursuant to FCC form ]240 filled February 2004 Kecommenoaaons: appio�e (a) or N Planning Commission CIB Committee GiNI Senice Commission � 1. Has thi5 persoNfirtn e�er worked under a contract for this departmeM? Yes No 2. Has this persoNfittn e�sr been a city empbyee? Yes No 3. Does this persoNflrm possess a skill rwt rrortnally possessed by any _ curtent city employee? Yes No Explain all yes answers on separete sheet and aHach to green sheet Initiating Probfem, Issues, OppoRunity (Who, What, When, Where, Why): I y Advantages MAporoved: DisadvanWpes IfApproved: ■ Disadvantages If NotApproved: Total Amount of Transaction: Fundinp Source: Financial lnformation: (Explain) CostlRevenue Budgetedq Activity Number. �� ' �. 7 "�, � � � � �f�`¢'s 1 v �,a e 3 � �� February 16 2005 9:29 AM Page 1 � I ''� . ' � � ,'`' '„. I i � i r „ � ' � ' , � � ' ,�� ' � � � , . � � � � , , ,i , � � i „ � � � � � „ „ � ,�l,.i � � , � , � ' , , t' . . 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A li m ' ,'I� It i,; r � , f � �I 1� il I �Ii iir� i� �.�I � s�ii il i' i f I il� I . i I 'I i I 4,l II I I Y�I 4' i d �. ��, f w, .. �mC��r NI�'.n..41, rlh .� ��dm1� n, � 1.�I�S.r.i�li,J H.��I�L�.,�.r�� I�� tr.�Y_�..{'_— a5 -�5a ORDER OF THE CITY COUNCIL OF ST. PAiTL, MINNESOTA, SETTING CABLE TELEVISION RATES FOR BASIC SERVICE CI�ARGED BY COMCAST OF ST. PAUL, INC. PURSUANT TO FCC FORM 1240 FILED FEBRUARY, 2004. L BACKGROUND l. Every Comcast cable subscriber purchases basic service whether on a standalone basis or as part of a package. The City of St. Paul has limited authority to regulate basic service rates under applicable Federal Comanunications Commission (FCC) regulations. The FCC has developed forms that an operator subject to regulation must file to justify basic service rates. Comcast files a basic service rate form annually. The City has one year to review and issue a final order with respect to that form if it wishes to order refunds for the period covered by the filing. On or about February 27, 200A, Comcast of St. Paul, Inc. filed an FCC Form 1240 purporting to justify basic service rates charged in St. Paul for the period beginning June 1, 2004 and ending May 31, 2005. 2. The FCC Form 1240 establishes a maacimum permitted rate ("MPR") — the highest rate that can be charged far basic service. In its 2004 filing, Comcast claimed it was entitled to an MPR of $10.5996. Comcast was not required to charge customers this maximusn permitted rate, but should it charge less, it can then charge a higher rate than it could otherwise charge in the following year. Thus, establishment ofthe correct MPR can affect past and future rates. 3. The Cityhired Ashpaugh & Sculco, CPAs, PLC ("A&S") to review the Comcast filing. A&S submitted a report on 7anuary 24, 2005 ("the A&S Initial Report") which was made available to the public and to Comcast for comments. Comcast submitted comments on February 4, 2005 �omcast's Initial Comment�"�. A&S submitted a letter in response on February 7, 2005 which included a revised Form 1240 (the "A&S 2/7 Letter"). ,Cam a� had complained that some of the information in the A&S Initial Report had been redacted. and the A&S 217 L,etter stated _that the information was redacted because Comcast had demanded that it be treated as confidential. By letter of February 10, 2005, the City gave Comcast an opportunity to release its confidentiality claims so the information 05-45� could be revealed. Comcast did not directly respond to the City's demands, but instead submitted a letter on February 15, 2005 which included additional comments on the A&S Initial Report and the A&S 2/7 Letter ("Comcast's 2d Comments"). A&S responded to that report on February 18, 2005 ("A&S 2(18 Letter"). The A&S 2/18 Letter accepted one correction proposed in ComcasYs 2d Comments, and submitted revised rate recommendations based on that correction. The City separately responded to ComcasYs February 15, 20051etter. 4. Having considered this material, and other comments received, the City finds that the MPR pzoposed by Comcast for the period June 1, 2004 through and including May 31, 2005 was not justified or reasonable based on the information provided. The City adopts the Form 1240 attached to the A&S 2/1 R Letter, and sets the NIPR, including the FCC regulatory fee, at $9.95, excludine franchise fees. This rate, and the Form 1240 attached to the A&S 2/18 Letter should be used by Comcast in setting rates going forwazd. In Part II, we discuss the comments �.__._ received and our conclusions with respect to those comments. II. FINDINGS 5. ComcasYs Initial Comments begin with some general complaints. Based on the information before the City, those complaints do not justify rej ection ofthe A&S analyses. For example, in its February 4, 2005 comments, Comcast first claims that it did not have a reasonable time to respond to the report. '�'his complaint is repeated in ComcasYs 2d Comments. The City was willing to grant Comcast an extension of time if Comcast was willing to allow the City additional time to adopt a final order. Comcast did not seek additional time. Moreover, the A&S Initial Report shows that A&S submitted a document request in October of 2004, and Comcast initially provided only a partial response to that request. The ability of A&S to complete a report, and the time that can be provided to the company to respond to it, are in part a function of the company's cooperation in the process. Under the circumstances, we find no basis far crediting Comcast's complaints regarding response times. 6. Comcast complains at two points in its initial comments (page Z in the discussion of progzamming expenses, and p. 3 in the discussion of copyright fees) that calculations in the A&S Initial Report aze unclear. The reason for this is that Comcast required A&S to treat some data as confidential (the A&S 2/18 Letter contained a d5�15� pa¢e showine that Comcast had claimed that the relevant data was confidential). Calcularions that revealed data the company claimed were confidential could therefore not be disclosed in the A&S analyses. Camcast was given an �portunity to allow the City to add the data into the record. As ComcasYs 2d Comments show. the comoa�,Y refused to do so. To the extent this results in any confusion, it is confusion of ComcasY s own creation. In any case, considering the confidentiality limitations the company placed on A&S, the report is clear as to what was done and what data was relied upon. Indeed, the A&S 2/7 Letter indicates that the company was familiar with the data being relied upon, and ComcasYs 2d Comments suggests that the company concluded the missing data was not relevant to its comments. 7. Comcast complains (at p. 1 of its initial comments) that it had not seen a draft rate order, and that the A&S Initial Report failed to give a reasonable explanation for its conclusions. Comcast is not entitled to see or comment on the City's rate order before it goes to the City. Comcast was advised that staff intended to recommend adoption of the A&S Initial Report, and it was given an opportunitv to comment on the reoort and did so twice. _ Based on its review of the A&S Initial Report, the City rej ects ComcasY s claim that the report gives no reasonable_ explanation for its conclusions. The report did in fact explain the basis for the adjushnents made. ComcasYs Initial Comments and 2d Comments suggest that the company fully understood the nature of the adjustments made. Consistent with the FCC's rules, the City is making a decision based on the recard before it. Additional process is not required or due under FCC rules and Comcast points to nothing specific that violates FCC rules or any other applicable law. 8. With respect to specific adjustments made by A&S, we find as follows. 9. True-uu ueriod. There are two disputes, first whether the true-up period should include November, 2003, and second, whether the A&S Initial Report should have used the true-up it selected (which excluded November 2003) on Worksheet 8. The ARcS Initial Report and the A&S 217 and 2/18 T.etter.s_indicate that Comcast did not have actual data available for November, 2003 at the time of filing. ComcasYs 2d Comments anpear to concede this �oint, admitting that the data far November, 2003 was not provided until long after the Form 1240 was filed. For G�', -t5a reasons discussed in the A�analyses, this required the exclusion ofNovember 2003 from the true-up period. A&S and Comcast both agree A&S should have used the true-up period it selected on Warksheet 8 for consistency, and we adopt that conclusion as well. In addition, ComcasY s 2d Comments pointed out that A&S included a month that had already been trued up in prior filings; A&S agreed that this was an error and corrected it in Form 1240 attached to the A&S 2/18 Letter. 10. Number of subscribers. The central issue on this point is whether the subscriber count should be reduced to exclude those customers receiving free service. The FCC Forms do not state that "free" subscribers aze to be excluded. In addition, free services appear to be provided as employee benefits in some cases, and in others as part of marketing efforts. The effect of excluding subscribers, as A&S Initial Report and A&S 2(7 Letter point out, is that other subscribers effectively subsidize the company's marketing and employment practices. For reasons stated above and in the A&S analyses, the City adopts the A&S subscriber adjustments. 11. Pro e�ammin� costs. The central dispute on this point is with respect to the adequacy of the prograrvming support data provided by Comcast. As the A&S 2(7 and 2118 Letters explain submitted data that purported to support its claimed prograimning costs in St. Paul, but that information suggested that the company failed to take into account discounts it received, and may have calculated programining sold at a flat rate as if the programming were sold on a"per sub" basis. Tn addition, the A&S Initial Report shows that prograsmning costs claimed by Comcast in St. Paul were significantly higher than costs for the same programming in other communities. Comcast did not dispute this claim, and still has not provided programming contracts, actual invoices from programmers, or any other data that would show that it pays more for the same programs in St. Paul than it does elsewhere, despite a direct request that it do so. The company has the burden of proof in a rate case, and given the information provided, Comcast has failed to carry that burden. The A&S 2/7 and 2J18 Letter�ully respond to ComcasYs other criticisms. 12. Copvrieht fees. A&S calculated copyright fees attributable to St. Paul by calculating the amount Comcast would haue owed if St. Paul were a standalone system; Comcast allocated a share of its copyright fees for the entire region to St. Paul. The allocation process can easily over or under-allocate costs if factors relevant to the 05�G 50 copyright calculation vary in the region. Comcast has not shown that all relevant factors are the same. We fmd the A&S method to be more accurate and that method is adopted here. Comcast's other criticisms ofthe A&S analysis are addressed in pazagraph 6, above. 13. Franclvse-Related Costs. The Form 1240 requires Comcast to identify certain costs it is required to incur under its franchise, such as PEG costs. FCC rules indicate that certain capital payments (such as lump sum capital payments} must be amortized over an appropriate period. Both Comcast and A&S agree that payments associated with certain St. Paul franchise requirements should be amortized, but Comcast failed to support the amortization period it chose either in the initial filing, responses to data requests or in its comments. A&S chose to amortize the costs over the then-remaining period of the franchise. Comcast failed to carry its burden of supporling its chosen amortization period, and for reasons set forth in the A&S 2/7 Letter, the A&S amortization period appears reasonable based on the information now available to the City. Other objecrions of the A&S calculation of Franchise-Related Costs were either accepted or fully explained by the A&S 2f7 Letter, and those explanations are adopted here. 14. FCC ReQUlator�Fee. The issue here is whether the regulatory fee should be accounted for in the Forxn 1240 (as A&S proposed) or may be added to the bills outside of the Form 1240, as Comcast suggests. For reasons set out in the A&S 2/7 Letter, we conclude that the fee should be accounted for in the Form 1240. 4Vhile we adopt the A&S approach, we note that it does not direcfly affect the total amount paid by subscribers. If the fee were treated as an add-on, the A&S-recommended MPR would drop by the amount ofthe fee. The real problem, as A&S points out, is that unless the fee is accounted for in the Form 1240, the City would be forced to devise its own means for protecting subscribers from fee overcharges. Therefare, while the City does not countenance any departure from this order, if the company submits any filing that does not comply with this order, it must at the same time lower its MPR and submit a full and detailed analysis of the fee charged and the amount collected from subscribers for the hue-up period, and a detailed analysis showing the basis far its calculation of the fee for the projected period. 05 -d 5� 15. Tn summary, we conclude that the A&S analyses aze reasonable based on the informarion available to the City, and adopt them except as specifically noted above. III. ORDERING CLAUSES 16. The City adopts as the MPR for the period June 1, 2004 through May 31, 2005 the rate of �9.95 . This rate would be inclusive of any amounts attributable to extemal costs, including amounts paid for and in support of PEG, and including the FCC Regulatory Fee. 17. The City adopts the Form 1240 attached to the A&S 2/18 Letter and directs Comcast to use this filing for purposes of future rate filings. 18. If Comcast submits a Forxn 1240 that fails to include the FCC Regulatory Fee, then its MPR shall be reduced by the amount of the fee, and Comcast shall be required to submit £ull support for its regulatory fee charges, as more fully described in paragraph 14. 19. Comcast must not charge any rate higher t}�an the rate set herein, nor increase that rate, nor impose on subscribers any other charge for basic service not specified herein or in the City's previous rate orders, including but not limited to bulk and commercial rates (to the extent such limitation is permitted by applicable law), unless such charge is first filed with and approved by the City, in accordance with applicable law and regulations, including but not limited to the notice requirements imposed by 47 C.F.R. § 76.932, or as otherwise expressly permitted under applicable law and regulations. 20. The rates set herein are subject to further reduction and refund to the extent permitted under applicable law and regulations, as the same may be amended from time to time. 21. The findings herein are based on the representations of Comcast. Should information come to the City's attention that these representations were inaccurate in any material way, the City reserves the right to take appropriate action. This Order is not to be construed as a finding that the City has accepted as correct any specific entry, explanation or argument made by Comcast not specifically addressed herein. 22. This Order constihxtes the written decision required by 47 C.F.R. § 76.936(a). D5 - �50 23. This Order will be released to the public and to Comcast, and a public notice wiil be published stating that this Order has been issued and is available for review, pursuant to 47 GF.R. § 76.936(b). CITY OF ST. PAUL, FEBRUARY 23, 2005 � Council File # U `� � Green RESOLUTION Presented By Refened To Date: �� RESOLUI'ION OF TI� CTI'Y COUNCIL OF ST. PAUL, SETTING CABLE TELEVISION RATES FOR BAS SERVICE WHEREAS, under Section 623 of the Cable Communications olicy Act of 1984, 47 U.S.C. § 543, as amended ("Cable AcY') the City of St. Paul, Minnesota ("City"), is pe tted to regulate rates for basic cable service and equipment (including installations); and WHEREAS, the Comcast of St. Paul, Ina ("ComcasY') s mitted a filing on or about February 27, 2004 purporting to support basic service rates for the period June 1, 04 through May 31, 2005 (the 2004 Form 1240 Filing); and submitted a filing on or about the same date purpo ing to justify its equipment rates for the same period (the 2004 Form 1205 Filing); and WHEREAS, the City has one year from the filin date to issue a fmal order with respect to those filings, except as the deadline for acrion has been extended, an the deadline for action on the 2004 Form 1205 Filing has been extended; and WHEREAS, the City has worked with the rm of Ashpaugh & Sculco, CPAs, PLC to review the 2004 Form 1240 Filing, and has received a letter repo regarding that review; has received comments regarding that report from Comcast; and has considered thos and other comments received during the course of the review of the Comcast filing; NOW THEREFORE, BE IT The attached "OR CABLE TELEVI� PAUL, INC. PUF adopted as if fully City of St. Paul. � OF SAINT PAUL, NIIlVNESOTA ,VED by the City Council of the City of St. Paul as follows: F THE CITY COUNCIL OF ST. PAUL, MINNESOTA, SETTING RATES FOR BASIC SERVICE CIIARGED BY COMCAST OF ST. ANT TO THE FCC FORM 1240 FILED FEBRUARY, 2004," is hereby forth herein, and shall govern the basic service rates charged within the 2. This Resoluti , including the Order incorporated byreference herein, shall be effective immediately upon passa 3025270 This Res ution and the Order incorporated herein are based on information provided to the City by Comca . ff the information provided by Comcast proves to have been false, misleading or inco lete, the City reserves the right to make such fiirther adjushnents to rates as it may find D S- !SO -�� :-�.�. ___ :� �.�� ___ �___ �___ ... _ _ _ �� ..� - ___ � �' _ _ _ Adopted by Council: Date Adoprion Certified by Council Secretary � Approved by Mayor: Date Requested by Office of � Form � Ciry Attomey � __�. ii�. / .rL1 Approved by M f Submission to Co � By: ��'�''��' � l�5-�So ORDER OF TI� CITY COUNCIL OF ST. PAUL, MINNESOTA, SETTING � CABLE TELEVISION RATES FOR BASIC SERVICE CHARGED BY COMCAST OF ST. PAUL, INC. PURSUANT TO FCC FORM 1240 FILED FEBRUARY, 2004. I. BACKGROLTND � / l � l. Every Comcast cable subscriber purchases basic service whether on a stan�alone basis or as part of a package. The City of St. Paul has limited authority to regulate basic rates under applicable Federai Communications Commission (FCC) regulations. The FCG has developed forms that an operator subject to regulation must file to justify basic service rafes. Comcast files a basic service rate form annually. The City has one year to review and iss�ie a finai order with respect to ,` � that forxn if it wishes to order refunds for the period covered by tl�e filing. On or about February 27, 2004, Comcast of St. Paul, Inc. filed an FCC Form 1240 charged in St. Paul for the period beginning June 1, 2. The FCC Form 1240 establishes a to justify basic service rates and ending May 31, 2005. rate ("MPR") -- the highest rate that can be charged for basic service. In its 2004 �ling, Comcast claimed it was entitled to an MPR �0 of $10.5996. Comcast was not required to c,�iazge customers this maximum permitted rate, but should it charge less, it can then charge a h�gher rate than it could otherwise charge in the following year. Thus, establishment of the 3. The City hired MPR can affect past and future rates. & Sculco, CPAs, PLC ("A&S") to review the Comcast filing. A&S submitted a report on Jan`ary 24, 2005 ("the A&S Initial Report") which was xnade available f to the public and to Comca �for comments. Comcast submitted comments on February 4, 2005. A&S submitted a letter i response on February 7, 2005 which included a revised Form 1240 (the "A&S Letter"). � the comments received, the City finds that the MPR proposed by Comcast for the period June 1, 2004 through and including May 31, 2005 was not justified or OS- ! reasonable based on the information provided. The City adopts the Form 1240 attached to L,etter, and sets the MPR, including the FCC regulatory fee, at $ 10.0864. Tbis rate, 1240 attached to the A&S I,etter should be used by Comcast in setting rates going II, we discuss the comments received and our conclusions with respect to those II. NINDINGS Form � '. 5. ComcasYs comments begin with some general complaints. B�ased on the information before the City, those complaints do not justify rejecrion of the A&S �nalyses. For example, in its February 4, 2005 comments, Comcast first clauns that it did not ha� a reasonable time to respond to the report. The City was willing to grant Comcast an allow the City additional time to adopt a final order Moreover, the A&S Initial Report shows that A&S 2004, and Comcast initially provided only a complete a report, and the time that can be function ofthe company's cooperation in of time if Comcast was willing to did not seek addirional time. a docuxnent request in October of to that request. The ability of A&S to to the company to respond to it, are in part a process. Under the circumstances, we find no basis for crediring ComcasY s compiaints regard}1ig response times. 6. Comcast complains at ty/o points (page 2 in the discussion ofprog•amming expenses, and p. 3 in the discussion of reason for this is that revealed data the analyses. To the any case, co as to what r ✓ fees) that calculations in the Initial A&S Report are unclear. The required A&S to treat some data as confidential. Calculations that claimed was confidential could therefore not be disclosed in the A&S this results in any confusion, it is confusion of ComcasYs own creation. In the confidentiality limitations the companyplaced on A&S, the report is clear done and what data was relied upon. Indeed, the A&S Letter indicates that the os- � company was familiaz with the data being relied upon, and that letter provides an additional basis rejecting claims that the A&S report was too vague or unclear. 7. Comcast complains (at p. 1} that it had not seen a draft rate order, and Iniriai Report failed to give a reasonable expianation for its conclusions. The A&S with this conclusion based on its review of the report. The report did in fact in our view�iovide reasonable � information. In any case, the A&S report provides the City with informatio}a'it can use to set rates — it is part of the record. The company had an opportunity to respond record. This order resolves the disputes reflected in the Comcast that report — to add to the and comments and the A&S report based on the recard, and is subject to review bythe FCC�` Additional process is not required or due under FCC rules and Comcast points to nothing spe fic that violates FCC rules or any other applicable law. 8. With respect to specific adjustments m e by A&S, we find as follows. � 9. True-up_period. There are rivo disgxites, first whether the true-up period should include November, 2003, and second, whether tl�e A&S Report should haue used the true-up it selected (which excluded November 2003) indicate that Comcast did not Forreasons discussedin and we adopt that conclusion as well. up period. A&S and Co�ficast both agree A&S should have used the hue-up period it selected on Worksheet 8 for 10. � should be rec�tice orksheet 8. The A&S Initial Report and the A&S Letter actual data available for November, 2003 at the time of filing. this required the exclusion ofNovember 2003 from the hue- The central issue on this point is whether the subscriber count to exclude those customers receiving free service. The FCC Forms do not state that "free' subscribers are to be excluded. In addition, free services appear to be provided as benefits in some cases, and in others as part ofmazketing efforts. The effect of excluding OS- � subscribers, as A&S Initial Report and A&S Letter point out, is that other subscribers subsidize the company's marketing and employment practices. For reasons stated above A&S analyses, the City adopts the A&S subscriber adjushnents. in the 11. ProQr�un*n�ng costs. The central dispute on this point is with respect Za the adequacy of the programming support data provided by Comcast. As the A&S submitted data that purported to support its clauned programming information suggested that the company failed to take into have calculated progra.mining sold at a flat rate as if the In addition, the A&S Initial Repoft shows that were significantly higher than costs for the same not dispute this claim, and did not provide programiners, or any other data that would than it does elsewhere. The company explains, Comcast in St. Paul, but that it received, and may were sold on a"per sub" basis. costs clauned by Comcast in St. Paul in other communities. Comcast did contracts, actual invoices from that it pays more for the same programs in St. Paul the burden of proof in a rate case, and given the information provided, Comcast has f�1ed to cany that burden. The A&S Letter fixlly responds to ComcasYs other criticisms. '�� 12. Cop, r�iQht fees. A�iS calculated copyright fees attributable to St. Paul by calculating the amount Comcast would ve owed if St. Paul were a standalone system; Comcast allocated a share of its copyright fees r the entire region to St. Paul. The allocation process can easily over or under- allocate costs if shown that all e method is opti 6, above. relevant to the copyright calculation vary in the region. Comcast has not factors are the same. We find the A&S method to be more accurate and that here. ComcasYs other criticisms of the A&S analysis aze addressed in paragraph b5 !SD 13. Franchise-Related Costs. The Form 1240 requires Comcast to identify certain required to incur under its franchise, such as PEG costs. FCC rules indicate that payments (such as lump sum capital payments) mustbe amortized over an ,s��t�s / capital l. Both Comcast and A&S agree that payments associated with certain St. Paul francl�se requirements should be amortized, but Comcast failed to support the amortization period i� chose either in the initial filing, responses to data requests or in its comments. A&S chose to the costs over the then-remaining period of the franchise. Comcast failed to carry jfts burden of supporting its chosen amortizarion period, and for reasons set forth in the period appears reasonable based on the information now the A&S calcularion ofFranchise-Related Costs were Letter, and those explanations are adopted here. 14. FCC ReQulatorv Fee. The issue here for in the Forxn 1240 (as A&S proposed) , the A&S amortization to the City. Other objections of or fully explained by the A&S the regulatory £ee should be accounted added to the bills outside of the Form 1240, as Comcast suggests. For reasons set out i the A&S Letter, we conclude that the fee should be accounted far in the Form 1240. �le we adopt the A&S approach, we note that it does not directly affect the total amount p� by subscribers. If the fee were ireated as an add-on, the A&S- recommended MPR would dr�p by the amount of the fee. The real problem, as A&S points out, is that unless the fee is means for nrotecti� countenance with this for in the Form 1240, the City would be forced to devise its own subscribers from fee overcharges. Therefore, while the City does not departure from this order, if the company submits any filing that does not compiy , it must at the same time lower its MPR and submit a full and detailed analysis of the fee charged and the amount collected from subscribers for the true-up period, and a detailed analysis showing the basis for its calculation of the fee for the projected period. OS ( 15. In summary, we conclude that the A&S analyses are reasonable based informarion available to the City, and adopt them except as specifically noted above. III. ORDERING CLAUSES the 16. The City adopts as the MPR for the period June 1, 2004 through May �1, 2005 the rate of $10.0864. This rate would be inclusive of any amounts attributable to exjeinal costs, including / amounts paid for and in support of PEG, and including the FCC Regul�ory Fee. 17. The City adopts the Form 1240 attached to the A&S Lettc�and directs Comcast to use this filing for purposes of future rate filings. 18. ff Comcast submits a Forxn 1240 that fails to incl�de the FCC Regulatory Fee, then its MPR shall be reduced to $10.03, and Comcast shall b required to submit full support for its regulatory fee charges, as more fixlly described in par aph 15. 19. Comcast must not charge any rate high than the rate set herein, nor increase that rate, nar impose on subscribers any other chazge previous rate orders, including but not limitation is permitted by applicable City, in accordance with service not specified herein or in the City's to bulk and commercial rates (to the extent such unless such charge is first filed with and approved by the and regulations, including but not limited to the norice requirements imposed by 47 C.F�2. § 76.932, or as otherwise expressly permitted under applicable law and regulations. 20. The rates set under applicable law 21. The are subject to further reduction and refund to the extent permitted regulations, as the same may be amended from time to time. herein are based on the representations of Comcast. Should information come to the City's attention that these representations were inaccurate in any material way, the City reserves the right to take appropriate action. This Order is not to be construed as a finding that the os-�so City has accepted as correct any specific entry, expianarion or argument made b�Comcast not specifically addressed herein. 22. This Order constitutes the written decision required by�C.F.R. § 76.936(a). 23. This Order will be released to the public and to�omcast, and a public notice wili be published stating that tlus Order has been issued and�is' available for review, pursuant to 47 C.F.R. § 76.936(b). CITY OF ST. PAUL, FEBRUAR�23, 2005 D5 �� _ �� Office of Technolagy Karen Johnson, Director Karen.jofinson@ci.stpaul.mn.us 651-266-8910 ,;anuay 25, 2005 TO: Kathi Qonnelly-Cohen FRQM: Karen Johnson Cc: Dennis Flaherty Lisa Veith Subject: Form 1240 Report Enclosed please find a report by Ashpaugh and Sculco analyzing the Form 1240 you fifed last year. 'Sfaif intends to prepase a rate order for adoption by the City based upon this report. If you have any comments on the report, the comments should be submitted in writing to me and to Mr. Ashpaugh by February 4, 2005. The comments must be received by that date. y lt would heip us if fhe commenfs were provided in efectronic format as weif, and comments must be provided in electronic format if you submit a revised Form 124Q. Unfortunately, we cannot grant an extensian o� the comment deadline. As you know, v�e have one year from filing of the Form 1240 to adopt a rate order. Qf course, if the City and Comcast agreed to an extension of time to adopt a Form� 1240 rate order (we have agreed to an extension of time to adopt an arder on the Form 1205), we could provide you wifh addifional tirne Ya comrn��it o� the �� . if you have any questions, please give me a call. d5 -i 50 � �� ASHPAUGH & SCULCO, CPAs, PLC Cer�iiied PubFc Accour��anis znd Consuliar.�s 3anvary24, 2005 AS1043-02 Karen .7ohnsan, Dix'ector Office of Technology City of St Paul .� 290 City Hall 15 West Kellogg Boulevaid St. Pazzt, MrI 55102 SUB.TECT: Review of the FCC Form 1240 of' Comcast of St Pau1, Tnc. Sled with the City of St Paul Februaxy 27, 2004 Deas Ms. Johnson: Ashpaugh & Sculco, CPAs, PLC ("A&S") weie engaged to assist fhe City of St Paul ("Cit�') with the review of the FCC Foxm 1240 filed by Comcast of St Paul, Inc. ("Comcast"} on Febtvaty 2'7, � 2004. This letter i�poiY will addtess the steps taken in the review and oui' findings.. The City submitted its initial iequest foi information to Comcast on Octobei 1, 2004 Comcast psovided a paztial response Navembes 11, 2004 and supplemented it with additianal responses. A&S reviewed and analyzed ComcasYa suppoxting data and its responses and then iecalculated _ Comcast's FCC Foim 1240 This report cfiscusses aur findings and atu iecommended changes hased on the issues we have identified in the Comcast filed FCC Fosm and suppoiting infoimation. At#ached to this lettex repost are: • AppendiY A- identi£tes fhe zates detetmined and recommended by A&S from ouc review of this filing; • Appendix B- compaiison of the cuirent prog�mm;ng xate with the xate originally proposed by Comeast znd fhe Late iecommended by A&S in this repart • Appendix C- A&S's recalculation of'ComcasYs FCC Po�n 1240; • Agpendix D- A&S's detetmination of franchise-ielated costs; • Appendix E- A&S's detecminatian of pxogamm;ng costs anfl numbez of subscZibexs; . Append� F-- Copy of the FCC Inflation Updates as of October 1.3, 2�04; and, • tl,ppendix G- Copy of'the FCC Fact Sheet identi£ying the regulatory fee. .� Our review of Comcast's filed FCC Faim 1240 iden4ified sevesal azeas of conceLn We have changed the Txue-Up Petiod ta match the.information provided by Comcast. We xecalculated the number of' subsetibeis in the True-Up Peiiod. We also recalculated the pmg�xnuiing cost and copyiight fees for tha Tru�Up Petiod and the Projected Period based on infoimation provided in suppart and have reflected these amounts in Worksheet 7. We refreshed the inflation i�es in Warksheet 1 and in Module C of the 124Q These changes, whioh will be discussed in defail below, I 133 LouisianaAvenue Suite 106 • Winter Park,FL 32789 • 4076452020 • Far4076454070 , gashpaugh@ascpascom � aculcc@ascpasmm " d5-/50 Kaxen Johason, City af St Paui Tanuazy 24, 20Q5 Paae 2 of 6 impact the Maximum Pe:mitte�' Rate {"MPR"�, Line I9 of the 124Q_ .Oui changes reduce the MPR of CamcasYs amended 12�'0 from the filed �ount of �10.599b to �8.412I i Including the 5.0% francbise fee, A&S's maxim� rate ior the Basic Service Tier is �9 38. FCC FORM 1240 The fust step in our review was to input the RCC Fozms fiied by Comcast with the City iato the FCC spreadsheets to genetate copies of the FCC's fotms. With these spreadsheet packages we weie able to duplicate ComcasYs filing and the iesulting iates. We verified that the taTes and oihei components of'the previous 1240 ap�oved by the City were cazzied ovet to this filing INFLAIION FACIOR Since we wese making othet changes to the 1240 we were requued undet the FCC's iules to refresh and cosect tt�e inflation factors in Worksheet i Comcast's catcularion showed 1.66% fox the fina15 months of the True-Up Period We fiave xeduced the peiiod by one month and coiiecfed the last manth to L�0% consistent with the FCC's published rates. [See Appendix F to this letter sepott.] Reflecting ttzese cbanges decxeases fhe Average Inflarion Factac fo� the Frue-Up Peiiod I, Line C3 of the i240, from 1 0169 to 1 0154 Addifionally, we xefreshed the inflation zate on Line C5 of the 1240 from 1.0166 to fhe cuxrent published xate of' 1,a323 to refleet the latest published tate.. Ihe FCC's xuies state_ Line C5 Cnxxent FCC Inflafion Factor. E'ntei the factox which will be used to calculate the inflation segment for fhe Projected Peiiod Niultiply Line C2 by the : quaLtesly inflation factor most recently released by fhe Cammission. The quaztecly inflation factor should be in the foim of "1" plus the inflation figiue. So, if the figuse announced by�fhe Commission is 3%, peifoim fhe mulfiplication with "1 03" " (Emphasis added) - � Since we were making othet changes and coxcections to the 1240, we updated this factox to the FCC's most recenttypublished factor. [See Appendis F to this lettei aeport] TRUE-UP PERIOD 'Fhe infoimafion request specifrcaIiy asked Comcast to pxovide suppoit fox each month of the Txue- Up Peziod Comcast only provided data for the pesiod eaded Octobei 2003 even though the filed 1240 claimed to be foi tl�e pefiod ended November 2003. Since we did not have information for November 2003, we had to reduc� ttte Tfue-Up P�iod by 1 month I1us will not impact Camcast in the lang iun, siuce Comcast can include November 2003 as in its true-up for the 2005 filing. Changing the Txue-Up Period impacts fhe 1240 and the supportiag wo�i�sheets_ I Tne MPR as deta�mined by A&S inclndes (1) $ 5528 af franchise rela4ed casts as shown on Line IF 1 oi ouc 1240, Appendix C to this report)and (2) the FCC Regvlztory Fee Comcast e;ccluded the reguta#ory fee from its 1240 and line itemizes it separarely on sabs¢iba bilis. 05 - I 50 Kuzn Johnson, City of St Paul Sanuary24,2d05 Page 3 of 6 �TU1Vu3IIZ OF SUBSE:RIBBRS O�s review requesEed detaiied support for the number of subscribers. Appendis E details each of tke categoiies and our analysis of the support provided, including `Bulk", subscribecs and subscnbers that aze provided free service. All subsctibers teceive the same progaznmi�g and benefrts of fihe franchise as a11 other subscnbers; but some da not pay the same monthty fee or any manthly fee for a multitude of reasors_ For example, some of the free subsctbers are employees and some aze related to mazicsting activities. If tizey were naf included in the count, alI oth� subsciib�s would be required to subsidize Comcast's decision to provide free secvice We do not believe fhis is appropriate and l�ave included employee subsctibets and commetcial subsc�ibers receiving free service in the count Making t�e above changes to the subscriber count increases the �umber fox the true-up peTiod from 52,929 to 54,202 as shown on Line Bl' of'tha 1240 (Appendix C). This has the effect of'xeducing the MPR PROGRANIIvIING EXPENSE ANB COPYRIGHT FEES Appendix E also slxows ouz' deteimination of'psogx�T*�m�ng expenses for the Taue-L7p Period and the Prajected Peziod. In response to the infozmatioa request, Comcast provided suppoiting detail fox prog �mino costs fox the . Isue-Up PeLiod Otu analysis shows Comcast ovex-stated pTOgamming costs for the Irue-Up P�iod. While this xepott does not discuss specific detaiLs of our. diff�ences due to Comcast's aequest for confidenriality, in general the diffea'ences relate to (1) claims of'pex subsciibet cost when the cost was a lump amoxmt, (2} not including discounts and ciedits in the pei subscxiber iates, and {.3) using the wrang iates. It should be noted that we have reviewed pmgramming cost supgort data for other Comcast systems and the infotmation provided in 'suppoxt of this Filing does not agee with and varies mazkedly from the othet data We have cflecked the voxacify of the data fiom other sources and ha�e used it in determining the iates in this mattex, iather than the data supplied by Comcast foF St.. Paul. � In addition, Appendix E calculates copyiight fees.. The calculation is based on data supplied by Camcast Confoiming fhese items to oux caJculations, including the change in the numbei' af subscribeis, ieduces the annual ext�nat costs per subsccibet included in Woxksheet 7 for the Tiu� Up Period by $0.86&8 For the Pxojected Peiiod, the annuat ieduction pet subscsibet is $0_4677.: FRANCHISE CQSIS Fianchise-r'elated costs {"FRC") aze identified in the Foun 124-0 at Line '707 of each Workskeet 7 These amounts are supported by Append'uc ➢ Ihe opetatox ageed to a new 10-yeaz francluse efFecrive .Tuly 1, 1998, which has recently beea extended anotb� five yeazs. Consistent wifh the fxanchise agreement, tl?e operafoa was (and is} reqiriied to make payments to the City and "mciu � Comcast has requesterl that the speeific cost inforxna[ion reIated to each cfiannel be 3reated as con5dential Foc this rezson, only the mtal cost is shown in oux supporting docamieata (See Lines 27 and 28 of Appendix E) Should Comcast challenge our calculations and it become necessary to provide this deta�7, we w11 provide a confidenfial version af this Qgpendix 05-15� Kazen 7o3mson, City of St Paul 7anuary 24, 20G5 Page 4 of 6 o#her costs. I'hese are FRC_ Some ofthe amounLs are requued to be oae-time payments or cos`�s and otheLS are periodic pa.yments or costs. In treating these costs �i tke FCC Fotm 1244s filed prior to this Filing, the operato� has iatably amoxtized all costs incutred over 60 montt�s (5 years) regazdless of whetfier the costs weie one-time costs or pe�iodic costs (unless the costs were annual payments in which case the entire amount is included in the yeaz of the payment). The coaecY treatment should have been to amortize the one-time costs at ieast ovei the remaining life of the franchise at tt�e time the payments were made, 120 manths, and amortize the periodic costs ovet the period covered by the payment, if more thau one yeaz. As shown in Appendix D, oux analysis coiiects the amoxtizations for the Ttue-Up Peciod and ehe Projected Peiiod to be consistent with this treahnent. The City's Octobet l, 2004 request foa informafion asked the followiag: 5 Por Woiksheet 7, please: g. Conceining the deteimination of the zcnount shown on Line '707, please provide suppoat for: i. Tbe amount shown in the instant filing and fox any changes to any of the amounts from the pxioz years' filings, , u. And identify the amouut of franchise-ielated eosts in each filing from the inirial amount set out in the FCC Poim 1200 aad eaeh subsequent filing; and, iii.. And �pIanations of the ainortization petiods used fot each amount in each filing, ivcluding the instant filing. (Please note that explanafions simply stating this was the way it was done in pxioi filings is not accepfable. Camcast m�st provide an expianation that supports the amoxtization pesioa used foi eacfi diffeient amount identified) The fbIIowing r'esponses were provided by Comcast in its Iettei of October 15, 2004: �- i- rlease see Aicachment �5 whicn inciudes wor'icsneeis and docusnentation fox the Fxanchise Related Costs as shown on Line '707. The diffeiences from the fiIing submitted Maieh 2003 include: . i3ew items <`L» and "M" in the Pxnjected section, . A new annual PEG gant foi $57,8 76 361abeled as "H", • Removal of last years aunual PEG gants labeled "F3" and "P', • Removal of'last years projected items labeled as "N" and "O", and . The adjusted iate of' rehun amount calcvlated on the remanvng amoitization peiiod The wozlcsheet from 2a43 is inclndec3 in this attachment foi comparison. u_ See the tesponse to gi, above Ttie franchise related costs from the piior years aze not relevant to the review of the cuxrent FCC Foxm 1240 exce{�t to Z�5 �l 50 garen Jolmsbn, City of' SL Pau1 7anuazy 24, 2005 Page 5 of 6 fhe extent thai these costs have been cazried into the cucrent foru� and have been explained heiein. ui The amort€zation peFiods wete as follows: Annuat or quartexly payments included in Worksheet 7, Line 7Q7 ttave been amortized over 12 months. Since these payments aze submitted annually, and cover one yeai', the useful iife has been identified as 12 months. The other ifems included in'the Fzanchise Related Cost amount which are identified as Annual I-Net payment pursuant to the franchise ag}'eement, have been amoitized ovet 60 months Although these aza identified as "annual" payments, they wete paid annually for the fust five yeazs of the &anchise on the anniversary dates. These payments occuxred piior to ComcasYs ownersl�ip and wete neatlyiecov�ed The remaining items amortized ovex b0 moaths covered PEG equipmeat The useful life of'the equipment is frve yeazs, thus a 60 month amoitization petiod is appxopiiate A&S disagees with Comcast chaiacteiization that recoveted" At Decesnber 1 2002, the begiuuing unaznortized balanoe of these items was $270,2Q2 15_ coxrected to the remaining life of'the franchise A&S `Yemaining items" as PEG equipment Some of tt� eguipment, but Implementation".. francFuse. °`F" and "G" are not specifie I`he a.moxtization of these items h the Annual I-Net payments `�vere neuiy of the True-Up Petiod in t7us 1240, the The amottization o# this balance has been also disagcees with Comcast idenrifying the e items, specificalIy "H" and ".T", ate foi to equipment while "K" is fox "Fibes as been coxrecfed to the remaining life of tha A&S also disagcees with ComcasYs statement that "(t)he franchise related costs from the pxioi c.ti_ rn� r i �n�i+> `��2 i2SyOLS2 cc ii" fluvV�. j y0ffiS 3i'e RO� Y"01£V3Il`L if) i11e Y'EV1E�Y Oi uac CIITZEiti ri,�. Glui i<,�r The pu[pose of fhe calculatian in the 1240 is to determine tIie Fncremetttat chaage in FRC on a pez subscn�ber basis The key to this calculation is that the ptiot yeats' 124Q must be coxrect. Since Comcast did not piovide tha# infoxmation, the anatyses of the appropFiateness of the prio� yeacs' amovnts has not been dane. To caIculate the amount of PRC pei subscribet per month included in the MPR, you would need to take the amount an Line 707 foi the Pmjected Period divided by the ptnjected number of subsctibers (shown on Line B3 of the,1240) divided by 12 Ihis calcutation detetmines a monthiy per subscsibei cost of $0.5528. If Comcast itemizes FRC oa subsc7iber's bitls, this is the amount that should be sfiown- FCC Ra�uiaraxY P� Comcast has failed to uiclude the FCC Regulatory Fee on Line '708 of' Warksheet 7. Our anatysis co�rects this. In orda to be consistent, it was also nece.ssary to add the FCC Regulatary Fee to the amouats in Woilcsheet 8. Appendix G shows fhe amount requued for the montt�s of'the Tiu�Up Q5=/50 Kai .7ohnson, City of St Paul 7�uary 24, 2005 Page 6 of 6 Penod ($.56 pei subsciber for *he i2 montbs ended Segtenbex 2003 aad $_70 per sabsezbec for the 12 months ended Segtember 2004'). GONCLUSION As indicated above, the xesuliing MPR from our chaa�es is $8.9121, wluch iounds to $8.`91. Vie recommend the City: (i) reject the filing of Comcast; (u) acJopt A&S's 1240, which is attached as Appendix C to fhis lettez repoit; and (iii) apprave the MPR of $8.9121 as recalculated by A&S. Iu the order, the City should state that if any infoimation should become known in the future wIuch would impact fhese xates, the City may revisit this decision The City should fiuthez siate that (1} this amount includes the FCC Regulatoiy Fee and {2) this is the maximutn iate allowed fox the Basic Seivice Ti� under the FCC's rules.. ff you have any quesiions or require any fucthet infotmatson, please let me know. , _ Very tculy youxs, ASHPAUGH & SC`Ui,CO, CPAs, PLC �i � �` �/� � �� , Gazth r Ashpaugh, CPA' President and Member Cc: Lisa Veith Esquue, CityAttoxn�y Foseph Van Eaton, Esquue, Mi1lez & Vau Eaton, PLL,C Enclosure 20041240Peport C�5 Arr�rmrY A 05t5o ._•�.. sr. ravz, n�vv�soT4 ca�cAS1 oF sr r�uL, �c ��w oF zoo4 Fcc �oR� 12ao xECa��m�v xazEs Recommended Rates Rates Recommeaded Inctudin� L�� For Franchise Francl�ise NQ, Iype of Seivice Appioval Fees Fees of 5.00% Mon�hlv Rate 1 Ma�mum Peimitted Rate - Sasic Iie2 $8.91 $0.47 5938 (�5-I 5d �• �� : p5-/50 � . R Z � O � � ti C q "�^ `" „j C 0 �. z�U � � w � Ss. O � � � � S. �U� � O '" U ,r-_�j N F'+ � Q W m O O � a � � � Q � w � U O U H � z � G' u u 0 O ti d � U > ' � 0 r. � U p V1 ^. u � � N .a �' (�, m j c A4�.K�� `�� = o c � � � � � � N � w d U°' v ° N ss �. f--�'i R � � � � � �' v ^ � ye � o � e. C o� v a+ 50 ` C P .�. `� .. � y o �O w � � ^ O c➢ � o N, w � � : U n � � � � � �,, " � U '� m N � � A � N � '�+ � y . G1 � � � � v � � Q �i � _� �,� �a W "' d U °' 9 .p � w y, � � q � � U N Z` w v� m y 4 Q ° '�" v � y °� �i .. i ° q ' � Y ° ° � C-� `� y p 9 � o � k. `�' .. o � � ;� c. � v r? � � U � � n m a�0 ti � O +C � U T m i Cy R N C y O � � YS YV H d � ,� P. o � � v C O _. „; z 0 N N 4 05-150 Arr�v�� C �5 �f 5 O Fedaal Co�unica¢ons Commi,ssion WashingEOa, DC 20554 Appmvea by 013B 3060-0685 � E"CC FORM 1240 IiPDAIING MAXMLM PFRYIIIZ�D RAIES FOR REGULAIED CABLE SERYICFS Cable Opexatoi: YES NO 1_ Does this filiug involve a single franchise aufhoiity aud a single communify unit? X it yes, compiete the rianchise authoFety inTDrmation below and rnta the associate& CUID number here: MN0424 YES NO 2. Does t6is filiag involve a single frsnc{use auYhotity but multipte cummunity units? X Tf yes, entei the associazed C(JIDs below and complete the francHise autho�ity in£oimation at the bo.tom of this page' 3 � Does #his filing invoFe multiple txauchise authoiities? NO Sf yes, attach a separate sheet foi each franchise authoxity and ioclude the following franchise authoiity in{oxmation with � iu associaied CtJID(s)_ , , ' � � Franc4�ise Avthozitc Sn#ormation: 4, Foi wlxat puxpose is this Foim 1240 beiug fiFed? P3ease put an "X" in the appropr iafe box, a. Ot oainai Form 124Q fo� Basic iier b Amended Form 1240 for Basic Iier c Oaginal Fom� 1240 for CPS Iier , d Amended Form 1240 fox CPS Iier 5.. Iadicate tFoe one year� fime pe:iod for which yau axe setEing cafes (fhe Piojected Period).. 6. Indicate tRe tifne petiod foi which you are perfox�ming a 7xv�up.. , 7. Stetus nf Previous Fifing of FCC Fucm 2240 (enter an "x" in tLe agprupciate boz) � � 7'O Ob(Q1/04 OS/31t05 TO 12101ifl2 13Y30l03 YES NO a Is this the firstP CC Form 1240 fited in any jutisdiction? X b. Has an FCC Form 1240 bcen fited previously with the PCC? ' X Tf yes, enter the date of the mast recent filing:� (mm/dd/yy) YES NO c. Hu an FCC Form 1240 been filedpreviously with the Franchising Authoiiry? % � �� If'yrs, enta the date of the most recent fi]ing: 02/26l03 (mmldd/yy) (�ri) ��YY) FCC Form t24-0 Page i_ M'urosoft Exce15 0 Vrssion " 7uly 1946 �5 -t 5a Fedeiai Co�niarions Comm3ssio¢ Wazhmgtoa, DC 20554 8_ Statvs of Previous F�7iag of FCC Form 12IR (eutex an "x^ in TLe appropiiate boz) Approved by OM$ 3066A685 YFS id0 a. Ffas an FCC Fa±xn 1210 been previously frled with the FCC? g it yes, enta the date oi the most m�t fline: IZ(OL95 (mmld�lyy) YES NO b Has an FCC Fam 1210 been geviously n"']ed with ihe Franchising AuthoriTy? X - , If ye� �tfea the da:e of the most recent filing: 11r1S199 (inmldd/yy) 9. Status of FCC Foim 1200 Filing (enter an "s" in the appropriate box) a Has an FCC Focm 12Q0 be� previously filed wit?� the FCC7 Y£S ` NO � i# yes, entet the date filed: �(mm/dd/yy) YES NO Aas an FCC Foim 1200 been previously f l ed with the Frenchising Authoxity? g It yes, entcR the date flled: U8/14/94 (mmldd/yy) 16 Cable Programming Sexvices Complaint Status (enter a¢ "s" in the appropxiate box) YES NO a Is this foim being fded in response to an FCC F orm 329 romplaint? � I£yes, ente� the date of the complaint �(mm/dd/yy) YES NO 11 � Fs FCC Foim 1205 Being Included With Ihis Filing }{ 12. Selecffon ofl`Goiug Foiward" Chanae] Addifion Mefhodology (eateF an "s" in the appropxiate box) - �Check here if'you aze using the oi nainai niles [MARKUp MEIHOD] � �Check here it you are using the new, altexnative rules [CAPS MEIHOD] ' If using khe CAPS MEIHOD, haye you elected fo revise recovery fo: YES NO channels added dming the paiod May 15, 1444 to Dec 31, I994? g 13.� Headend Upgxade Mefhodology � � •N073 Oper�on mvsYCer[ify to the Cammissian their eLigibdity to use this upgrade metfiodoiogy and attach ¢n eqvipmenf lisJ and deprecia@on scheduie �Check here i€you are a qua7ifying sma11 system nsing the s�eamiined headend upgrade methodo7ogy Pari I: Preiim[�narv Information Module A: Maxiiuum Pexinitted Rate Fx om Previous Line llesc� c�.-YUc t:a::�. �:.a�:�� eaw Avemge Subscnbe�ship Fo: Tr�e-Up Period 1 Avemge Svbscn6ecship FonTxue-Up Peaod 2 Fstimared Avuage Subscnbasiuu Fox Proiect� Unclaimed Tnflatios Opernwi SwiYChing Pms Unc7aimed Ixu7adon: Uncea ilated �pemmz Re Inflatlen Factar FerTmaUp Peciod 1 jWks ij In Factot Foi Tsuo-Up Period 2[W$s I] Carreat FCC Inflavon Factox Period a b � d e Basic Iier2 Tie�3 iier4 iier5 S1G..^,73? � ' I I Subscxihership � a 6 c d e Basic Iiei2 7jv3 Iier4 TierS sazaz 54,744 To 1240 ug to Rate Complaint � FCC Foffi ]240 Page2 Mc[osoftFxce15.0 Vusion 7nty 1996 �5-� 50 e�aalCom�MCanons Co�iston A'uIune oq DC 20554 r;^aDescdpTion CffientEIeadend Ltpgrade S�enT Ctaec¢Eztanai Costs Segment LS�aent Caps M�hod Se�ment cvaernitada�p?meti,oasegneat . Qmen[ Cffirmet Movemrnt aud Deletion Segment C�arent inflation Segment BaseRate [Al-Dl-D2-D3-D4-DS-D6-D7) ModuIe D: t�amved by O_�IB 3060-0685 the Base Rate so.0000 523166 SO.OG00 SO.G000 $0,0000 $1.7617 � Fier 3 e - � $5.8903 � Part II: True-Un Periad Module E: Timing Information Wuat Type ofTxu�Up [s Being Pafonned? (Answer "1" '2" oi "3 See Insnuctions foc a Sf'7", go to Modale L If "2", answec E2 and E3. it "3", answer E2, F3, E4, aad ES. Numbec of M in the Txue-Up Petiod 1" Numba of Months between the end of Tne-Up Period ] and the end of the most recrnt Proj Number of Months ia Tme-lip Peaod 2 Digvble fos fnterest Number of Mon ths Tme-Up Period 2 7neligible for Hrterest " . - o{ihese ES'P�-) � �Yfodule F:1VIasimum Paxmii#ed Rate For True-II Periad 1 a b c d e I,3 LineDescription Basic 7ier2 . Iier3 Iiu4 2ier5 , Fl Caps Metfiod Ssgment Foi Tme-Up Pefiod i(Wks 2] 80 0000 F2 Markup Method Segmrni For Tme-Up Peliod 1[SVks 3] $0.0000 F3 Chau Mvumt Deletn Segment ForTxue-Up Period f[4Vks' 4/5] . ' F4 Tme-Up Pedod i Rate ffiigibte Fm Inflation jD8+F1=F2+F3] 55.8903 FS Inflafiov Se�errt for Tme-Up Period 7[(F4'C3)-F4] $0.0905 F6 Headend Upgade Segment £or TruaUp Pexiod I[Wks 6] F7 Futemai Costs Segmem Fox True-Up Period l[Wks 7] SZ.1924 F8 Txue-Up Seene¢t Fox Tme-Up Period 1 S I.7619 F9 Max Pem3 Rate for T:ue-Up Period 1[F4+FS+F6+F7tF8] 59.9351 ' Module G: Maximum Pexwitted Rafe Fox True-U Period 2 a b c d e I,m UneDescription ^ Basic Iier2 Iier3 IierA IiuS GI CapsMethodSe�eatForTm�UpPeriod2[Wks2j G2 Matfwp Methed Segne�. Foc Tme-Up Feriod 2 jWks 3] � G3 Ch�MmmtBsietnSegmentFoiT�UpPeaod?(Wks'4157 G4 TU Period 2 Aate Elig3le For Iaflation [D8+FYG1+G2+G3] GS inflation Segmeat forTrve-Up Period 2((G4*C4)-G4] ' G6 Headend Upgade Segment Fm Txue-Up Period 2[Wks bj G7 ExtexnaE Costr Segment For Tiu�Up Pedod 2[Wks Tj G8 True-UpSegaentForTzuaUpPeriod2 _ G9 Mas Pecm Rzte for"CNe-Up Period 2[Cs4ifi5%-G6+G7�8] , Page 3 Microsoft Ezce3 5 0 Vexsion PCC Form L246 7uty 1996 C�5-1 5p Federal Comsumicalin� Commission Washmgton, DC20554 Appmvtd by OMB 3060-0685 Module H: Tnte-Up Ad'usfineut Calculafion a b c d e Liae Line Drscrip5o¢ Basis iier 3� Fier 3 iier 4 iier 5 ArIj�sslmeai For `I7uc Up Periad 1 Hl RevenueFromPedod i � 4,808,837.90 H2 Reveaue From N[ax Permitted Ratcfor Period I �,92�,466� E33 Tmo-Up Peaod 1 Adjus�eut [Fi2-FIlj 31,114,628.35 A4 Interzst on Peiod 1 AdjnsWent 511�4i528 djustmentFor TrurUp Period 2 HS RevenuePromPeriod2EligiblefirInterest H6 Revenue Fmm Max Peim Rate fnc Period 2 IIib ble Foi inteic,[ H7 P�iod 2 Adjustrnea[ Eligble For I�rest [E76-HS] H8 Interest on Paiod 2 Adj�snnent (See insWcTions foi fozmulz) Ei9 Revenue Fcom Pedod 2 Inelig�ble forInterest FII O Revenue Fmm Mu Peffi Rate for Peaod2 fnelig�ble £or [nte HII Pedod2AdjustmentlneligibleFo�Intaest[A10-EI9] Tofal TmrIIp Adjustrnent H12 Previous Remaining Tm�Up Adjus[mem AI3 Total True-Lfp Adjvstment jHi+H4+H7+H8+HI1+H12] SI,227,043.63 Hl4 Amouat of Trne-17p Claimed For Tlus Projected Period SI,227,043 63 A75 iLemainiagTxsse-UpAdjushnent[HI3-HI4] 50.00 Part III: Pratected Period Certificaiion Stafement WII.�LFUL FALSE SiA7EMENIS MAI}E O,T IHIS FQRM ARE PUNISHABLE BYFFNE AND/OR IMPRISO�TMENF Ri S. CODE I£I'LE f8. SECIION 100D_ AND/OR FORFEII'URElU.S CODE 7[1'LE 47. SECTtON 503) ' SiQned Bp Jeffrey S. Ossowski and iide of'P�son Compieting this Focm: Telephone number 2118/2�04 Sefiiey Ossowski, V.P. Finance MidWest Division . � FCC Foxxn t240 p - Microso$FxceISA Vesion lu3y 1996 Note. The mazvnun permitted ratefigures do nof take into account any refund tiabtkry you may have. Ijyou nme prevmusty been Or'dered by the Commissxon ar yom tacal franchising authonry fo make refunas. you are nof relieved of yow obligaiion to mdce such refi+nds even ifUze pe�miiteC rate is highe� tkan ihe corztezfed rate w yoia currer.t rqte � - , 05-I 5� Fedczi Co�imicazioas Coamissioa wasn�n�o� nczossa Worksheet 1- True-Up Period Inflation Fo� inshactions, see Apbendix A of Snsmscrioas "rox FCC Foffi 1290 Line Period FCC Inflation Factot ]01 Manih2 1.78% IO2 Month2 239% 103 Mon[h 3 239% 104 Month4 239% 105 MoutU 5 1 60°Jo 106 Month6 l.pp/ 307 Month 7 1.00% 108 Month8 1.66% t09 Month9 1.66% TIO Month 10 I.66% Ilt Monch2] ISO% 112 Momh 12 Average Inflation Factorfor FI3 rN�UpPedadl 10T54 l I4 Month 13 I1S MonW 14 116- Vlontfil5 I17 Month I6 118 Month I'7 119 Month 18 120 Mornh 19 121 Manth2Q 122 Monih 21 - 123 Month 22 124 Month 23 1GJ 1Vi0IIfi124 � AvemgeInflationFactorfoz � ImaUp Period 2 � Page i MicrosoftF�cce[50 Veision Appmved By OMB 3066-0685 a Dec-02 Jan-03 Feb-03 Mao-03 Apr-63 May-03 Fun-03 Jul-03 A¢g-03 Sep-03 Ocb03 Nov-03 FCC Form 1240 Suly 1996 Q5 -/ 5� FederaI Comm¢a;c�uns cammission Washengton, DC 20554 Wor�ksheet 2 - Cags Me#hod Trne-Up Period, Basic Tier For insixucdons, see Appendix A ofinsnuctioas Frn FCC Form 1240 Quesboa I Indicatethe period for wluch t3ils woxLsheet is be3ng used (Puf au "X" inthe appropriate box ) ApQroved By OMB 3060-06&5 Ifue-UpPeaod � 4eiiod X Question 2 Indicate the riec for which t6is worksfieet is being used (Put an "X" in the appropxiue box ) . Basic Tia2 Tier3 Tier4 TietS X Question 3 How ]ong is the fiast period, in montivz,forwhich rates are being set with this worksheet? 11 Questiou 4 How long is [he second period, iu months,#orwLich rates are being set vrith thu worksheet? 0 i 2 3 4 5 6 7 S 9 Opexntois .Previous CunenY Net CapFoi �Peratox's ��eFee rofatLicense Iotat IotalCaps� Line Pesiod Regulated Regulaied Cfiange Chanuels �' ResuveUsed FeeResecve Opexatore Adjushnent Channe[s Channeis � Added ��eFees IIsed CapUsed Z � F M di�ous 000000 6.,00000 0,00000 202 Monrh 1 Q 0' 6.00000 O.00DUO 6.UOOOfl 203 Month2 0 0 �.00000- 0.�0000 O.00t}00 � 04 Month 3 0 0 � ' 0.00000 O.00Q60 O.00OQU ?OS Momh4 0 0 � 0.00600 �.OQ000 0.00000 Ob Month 5 0 0 0.�0000 Q.OQ000 O.00OOU 20'7 Moutfi 6 0 0 � Q00400 U.DOOOD �.00U00 208 MonFh7 0 0 0.00000 6.00000 O.00OOQ 209 Month S 0 0 O.ODQ00 U.00000 O.00ODQ 210 Month9 0 0 9.04U00 O.OQQ96 O.ff60U6 211 Montit iD D 0 O.00U00 O.00Q00 0.00�00 2f2 Mortth t t 0 0� 0.00900 p.00000 U.00000 213 Moxrtla 12 0 0 214 Arera e Pcdod 1 Ca s Methud Ad"ustmenf O.00OOP 215 Mooth I3 ' 2I6 M�nth 14 � - 17 Month 15 218 Month 16 � 214 Month 17 220 Manth I8 f Mornh19 222 Momh 20 � 223 Nloath2l 224 _Month22 25 Month 23 6 Monih 24 22'7 Avera e Period 2 Ca s h?�hm1 Ad'ustmeut FCC Fomi 1240 Page 1 . MicrosoREuz150 Vecsion � Jaly i996 05 -!5a Fedetal Com�niqlion5 Commission Wasiimgton, DC 20554 Worksheet 2 - Caps 1_Vlethorl Projected Period, Basic Tier "ror inswcfons, see Appendix A of Ins[m�tions Fox FCC Form 1240 Question I Tndicate the period for wluch this wo�hez[ s 6eing nsed {Art an"X" in the appmpxiate box ) Approved By ObIB 3066-0685 � Tive-Up Projxted Period Period X FCC Form 1240 Pagc I Microso$Ezce150 Version - lnty t996 Question2 IndicatetLenerforwhichtUisworksheetisbeingusa3 {Putan"X"mtheappropaateboxJ Buic Tiec2 Tier3 Tia4 TierS X Question 3 How long is the fixst period, in mont5s,foi which rntes are being set withtUis worksueet? 12 Question 4 FIow tong is the sacond p�od, in months,foi wkiich mtes are being set with tlzis wo�icsheet? 0 os �� 50 Feaerat coffi,�nicauons co�sson Wasmngton, DC 20554 Worksheet 3 - Markup Method Trne-Up Period, Basic Tier Eor inshuc:ions, see Appeadic A of Ins¢uctions Foi FCC Fo� 1240 Aopmved By Ob1B 306�-9685 � Ime-IIpPeri Project,.dPerial Questian 1 Endicafe the aedod For wluch $vs wo�heeT is being vsed. (Put an°X" in the,appropriate baz ) X Quatioa 2[ndicate theti� for wlu`ch This wozksheet is being nsed (Put a¢'x" in tLe appropiiateboz J Basic Tier Z Tiec 3 Tier4 Tier 5 X Q¢estiw J How long is the fust peaod, ia awmbs, fo� which rntes aze bemg set wiEh this worksheeY? ll QuesEion 4 How long is the suond perioQ i¢ months, for which mtes aze 6eing set with tlris worksheet? 1 2 3 4 5 6 7 SumofPrerious Sumof"Cursenf �� Line Yeriod RegulaEed RegulaEed Average Per Channel Channels Iotal C¢malafive Cltan¢els Channei �amels Adjus[ment Added Adjustmeni , Adjus[ment i01 Previous Month !02 MontS I 2$ 28 28.6 $0.01 0 $0.00 �03 Mouth2 28 28 28,U $QAI 0 $OAO ��04 Momh3 28 28 28A $0.01 0 $0.9Q �QS Manth4 28 28 28.0 $0.01 0 $0.00 oe n�o�n s zs za xs.o su.oi o sa.00 U7 Monthb 28 2S 28,0 $0.41 0 $0.00 08 Month7 � 2% 28 2&.0 80.01 D $�.00 Q9 Month 8 28 28 28.0 $O.QI 0 $0.00 1Q Month9 28 ` 28 28.0 $0.01 0 50.00 11 MoML 10 28 28 28.0 $0.01 0' $0.00 12 Montfl II 28 28 2g.0 SO.Of � 0 $6.00 73 Month I2 28 28 28.0 $0.01 0 14 Average Period 1 Markup 1VIethod Adjastr¢ent 35 Moatfi 13 - MoarL14 I iNomh li �-- Momhi6 Mosth 17 Month 18 Month 14 MontU 20 Month 2l Month 22 MonYh 23 _Mrnrth24 Averare Period 2 Caps Method 0 oaoo o-.onoo o.uooa 0.9000 0.0000 , o.0000 U.0000 O.00QO 0.0000 0.0000 0.00�0 � FCC Fo� 324D Page I Microsoff Excel 50 Vetsion luCy t94fi 05 �50 F�eat co�m��rio� co�;�;� Wasaingtoa, DC 20554 Worksheet 3 - Markup MetharI Projected Period, Basic Tier Forinstrvctions, see Appendix A of Inshuctinns Fox FCC Foxm [240 QueSaon I Indicate fhe gcriod fot wlssch this wodccheet is bemg used (Fa2 an "Y" in the apnmpFiate box ) Approved By OMB 3060-0685 ime-lipPeli PmjectedPUiod X Question? fndicate�thetiec;mwiuchthiswo�fieetisbeingused (P¢tan"X"intheappropriatebox) Hasic 7ier2 Tier3 Tia4 TiecS X Question 3 How iong is the �st period, in months, for which rcia arebeing set with Hils worksheet? iy Question 4 Aow (ong is the second period, in montbs, for wltich rntu are being set with this worksheet? p 1 2 3 4 5 6 7 SumofPrevious SumnfCbn�ent Avexage PerCfiaanel Cha¢nels Iotal Cumu[ative Line Peciad Regulated Aegulated Channels Adjustmeat Added Adjustment Adjushnent Chaunets Cl�annel 301 �erious - Month 302 Moath 1 28 28 28.6 $0.01 Q 03 Movth 2 28 �' 28 28.0 $O.Oi 0 " 304 Month 3 28 28 28.0 $0.01 0 305 Vlonth4 28 28 ?8.0 $(I.01 0 306 Mo�h 5 28 28 28.6 �0.01 0 307 Month 6 28 28 28.0 $0.01 0 308 Momh7 28 28 28.� $Q.QS 0 309 Monrh8 28 ?8 28.0 $D.Ol 0 310 Morth9 28 28 28.0 � 5Q.02 0 3ll Month 10 � 28 28 28A $0.01 0 312 Month ll. 28 Z& 28A $0.01 0 3I3 Month 12 28 28 28.Q $O.OI 0 314 Average Puiod 1 Markuy Meihod Adjushnent � FCC Fmm 1240 Page I - , Microsoft Ezcel 5 0 Ve�ion 7uly 1946 D515� FedaalCommimiwtionsCommissian .. Washmgton, DC 20554 IABLE A NON-�IERNAL COST AFINSI&tEtiI FOR CAfutiGES IN CHANNELS i- Approved By OMB 3060-0685 � � FCC Foan I240 Page b � Microsoft Escel S.Q Yersion July 1996 o� t �o Falecai Co��catioas Co�ission �Vasfiin„�Q'on, DC26554 RTOrkshee� 4 - ResiduaI 'True-Up Period Formstrucaons, see Apprnd'u � of IvshecIIOns Eai FCC Fotm 1240 Quesdon I i�dicate t6e period forwlvch this workshe^,t is being used (Pu: �"X" in the appmpdate bo� ) Approvaf By Obffi 3060-0685 Iiva�I7pPeriod ProjectedPerin X a b c d e Line LineDescri fion Basic Iier2 �ier3 Iier4 IierS � Perind Oae 401 Avernge Permiffed Cha se $8 0656 402 Avemge Eztema] Coy2s ,$2 1924 3 Avernge Total Per Cbannel Adjus�ents after 5/14/44 gp 0000 £or C'oam�els Added Usin Ca s Meihod 404 Average iia Residual [401-442-403] S5 8731 QS Avernge Channels per Regu7ated Iia 28.0000 406 Aveage Cags MetLod ChanneIs pax Iia . Q 0000 407 AvetageRemainin�C3�nels[465-406] 280000 408 Average Pe�iod t Pei Channe7 Residuat [4D41407j - $02098 Period Two 409 AveragePamiuedCharge IO Avern�eExtemalCosts � 4i � Average Total Per Channel Adjustments after 5l14/94 _ . forChaonelsAddedUsin Ca Method 412 Averege Sier Residual j409-410-411] - 413 Averege Chaunels perRegulated Iier ' 4i4 Averege Caps Method C6annels pec Iier 415 Average Remaining Channels [473-414j , 416 Averege Period 2 PerChannel Residual [412(415] � FCC Fonn 1240 Page i Microsoft Excel 5 0 Ve�sion , � July 1996 05 -! 50 Fedeai Com�icatioas Commissian wasv;ngton, Lc zoiia Worksheet 5- Cha�nel Movement and Deletion True-Ug Period, Basic Tier Forinsmictions, see Appemd'u A of Iasaucrionz Fox FCC Fo� 1240 Appmv� By OMB 3060-0685 Question 1 IndicaTe t6e aeriod for which tLis wo�Mheet is be.ag nsed (Hrt an "X^ in The aoomptiate box.) Tm�i7PPeiod Projec[edPeriod % Question 2. Indicate ifie rierfos wltich tLis worksheet is beine used. {Put an"X" intLe aooronriaie Mx.l FCC Fo�m 1240 Page 1 AlicrosoftExcelS 0 Vesion Suky 1946 Question 3 Ffow [ong is tfie fssst paiod, in months, for wfuch rates aze beiag set with [Iris woxksueeT? 11 Question 4. Eiow long is the second penod, in months, foi w}rich mtes aze bemg set withttris worksheet? � ��o F�a�a c��o� c��;oa q+`ashamgFOn, DC 26554 Approved By OMB 3060.06$5 Worksheet 5- Channel Movement and Deletion Projected Period, Basic Tier Fos mstuctiovs, see,4ppendiz A of I�hvctiou�, Fox FCC FoFm 1240 � Q¢estionl.Indicatetheperiodfo.*wnicfit€dsworksfieetisbeingused (pucan^X"mtLeappmpriafebos.) _ Tme-UnP�iod PmjectedPeriod X �uestion2. Gcdicate iFie iier fox wMch iF�is wo�csheet is being used (Put an "X^ in tfie aroomoriate 6or 1 . Page I FCC Fonn 11A0 _ MicrosoftEzce150 Vusion July 1995 Quesuon i. How Iong is [Le fust peaiod, in months, forwLicb xates aze 3�eing set with this worksteet? iz Question 4 Haw long is !he s�ond period, in months, fox which retes are being set with llvs worksheet? n D5-150 Feaaal co�¢nicat;ovs cam�ssioa WashinBmn, DC 20554 _ Worksheet 7 - Extemal Costs True-Up Periad Foi insnuctioas, see Appendix A of�Snsnvctioas ForFCC Fom 1240 Questionl.Fox.wLichtimeperiodazeyoufilliagou[tLiswoikchee[? jPutan°R"mtheappropriazeboz] Question 2 How tang es the fnsc pedod, io months, for wluch rates aee bcing set with ihis workshct? Questioa 3 How long is tlu awo� pedo� in malrt7u, fos wlvcfimte5 ue being set wiihthis woxicsheet? Appmved By OMB 3060-0685 Inu-UpPaiod Pco7er.tedPeriod X I1 , , - FCC Fonn 1240 - Page 1 �crosoft Fcce[ >' 0 Version 7uly 1996 'Line LineDescrlpaon Basic Iier2 Iier3 7ier4 iiu5 � O�' 50 Fe�1 Comwmications Commiss[on Washmgton, DC7A554 Worksheet 7 - E�ternal Costs Prajected Period For instuciions, see Appendu A o; In.ttrucEions Fo� FCC Fo� 1240 Questlon I For wiricL time period axe you 11;�0 out this r,.ozksheet? [Par an "X" m tUe appmpria[e box ) Question 2 How lona 3s the 5at period, in months, fox w]uch mtes aie being se[ witL this worksheeC? Qveition 3 Aow long is the second peaod, in months for wluch mtes axe being sec with tLis woxksueee? Approved By OMB 3060-0685 ime-I;P Periad Fmjerted P,^ioct X 12 Q , FCC Form 1240 Page2 - Micwso$Ezce150Version Su1y1996 �Liue �eDeuription 8asic . Iier 2_ .. . S3et 3 Sier4 Iiei 5 � os -� so Fedeef Comnmuunicalions Co�ission A'azhington, DC 205i4 R'orksheet 8- Tr�e-Up Rate Charged Fo� instn:ctioas, sce Appendie P of �ons Fm FCC Fo� I240 Questioa I Aow long is iue inWi4p Per,od 1, mmonths? Qua�on 2 How long is �e I�IIp Period 2, ia mo�Ls? ApproveQ By OMB 3660-p685 22 a b c d e Liae LineDescripfion Basic IierZ 7ier3 Iiei4 . IierS 801 Deo-92 $8_0650 � 802 Jan-03 $8.0650 803 Feb-03 $8.D650 - 804 Maz-03 ' $8.0650 805 Apr-03 $8.0650 806 May-03 $8.0650 � 807 Juci-03 58.0650 808 JuE-03 $8.0650 603 Aug-03 $8.0650 810 Sep-03 $8.06i0 ' 8I1 Oct-03 $8.0683 8I2 Nov�03 $8.0683 813 Pedad 1 Averege Rate $8.065b 814 Feb-00 815 Maz-00 816 Apr-0Q - 8ll May-00 818 Jun-0� S19 Jut-OD &20 Aug-00 821 Sep-d0 822 Oct-00 823 Nov-00 � 824 Dec-00 ' . 825 Jan-01 " - 826 Peaod 2 Arernge Rate FCC Focm f240 Page 1 Microsoft Exce7 5 0 Veisiou ' 3nly 1996 � OS-150 APrE�*v� D , d . 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"' { N N N „ < � O Vi N y � m pv n o <�60.0 � e'1 V' � O O y C �� D � p N N N D S ✓i � N O � P � N p N�� N ( � O �O V � v q C O � N N � vl � K Q � ) P O � `D O C l� ^ rn N O K O P 6� a � N N v v � N d O O A P W Q�� O N p P m n _ h _ w y "v � P O Z W � V�l O < C d a o � �.' ° G ` � � � '3 y y y W � � C � C. .� E� O ` m Z an � o o a ' '�' y o m U^ • o q $ v m u�`t m o " S E \ 0 m m m° �,° = v m n m U� m� o E Y m� = U E 0 6 s c> i - S- c.° e�'c ° _ E � s G = [�i� � > � ` o�� C. . y a o� �°, � v� m= �� V� m� R x q o mu�,�, ��-�caQ v�d>>>= s r � �¢� �. ° `� Q ��£� e s c'a 'a n 6] O m.] o o � U W>� a P P�NtA..I F Cg 9. mtl al.�¢i¢Iw W F.d ry F w"o� �+FUF s C O � N�l < vf �O ' t� m Q. O� w Q N N N N N N N ..] S. .. ... ._ `o w 0. 05-15� ArrE:vn� F o5-l5p r �.. 5 �� P�L�BLIC NOTICE FEI?ERt1L COMMF_J?vTCAIIONS CO_MIvIISSION 445 I2IH STREEI, S.R%. WASHII�IGTO\, D:C. 24554 . DA 44-3238 NewSmed�amfomiafion202/418-0500 Fax-On-Dersmnd207141&28i0 IntemethttpJlvrnwfrcgov 8pfagov MEDLA Bi7REAU'ACTTON Octobex 13, 20d4 INFLATI�N ADJLiST'1VIENT FIGLTRES FOR CABLE OPERATORS tiSING FCC FORMS 1210 AND 1244 NOW AVAII,ABLE Ptusvant to 47 C F.R § 7b.922(d)(2) and § 76 922(e)(2) of' the Commission's tules, cable aperatois may adjust the non-e�ecnal cost poztion of'their iates for inflation. Opeiatoxs filing FCC Foim 1210, may make an annual adjustment based on inflation occutiing from Jupe 30 of' the previous year to June 30 of t'ne yeax� in wluch the inflation adjustment is made.. Operatars fiiing FCC Foxm i240, may make an adjustment based on quazterly figures All adjustsnen#s aze based on changes in the Gross National Pxoduct Piice Index {GNP-PI) as pnbfished by the United States Depaitrnent of' Comme�ce, Btueau of Economic Analysis (BEA). rhe Mer}ia Bureau obtained the chain-fype ptice indexes fcom the BEA news release dated Septembei 29, 2004 (BEA 64-45).. FCC Forw 1210 Ihe inflation factor fo� the riveive months ended .Fune i0, 2004 is 1 0226_ Ope[atois that wish to take ihis yeax's �flat?on adjustment nsiug P CC Foxm 1210 should entei the fig�:e "1 A226" on Lines IS and f5 of'the foim. Ihis yeaz's inflation adjustment factox is calculated by dividing second quaz#et 2004 GNP-PI (108154} by the second quazter 2003 GNP-PI (105.772)' Opexators may take ttus yeaz's inflation adjustment beiween Octobei 1, 2004 and August 3i, 20�5 � FCC Form 1240 � Ihe second quaster of'2004 inflaiion factox fox opetators using �CC Farm 1240 is i.0323. The inflation adjustment factor is calculated by dividing the GNP-PI for the second quazter of' 2004 (148.164} by the GNP-PI for the fust quaztei of'20Q4 {107...308). Ihe result a#'tlus caicuiation is convetted from a quatteily change measurevaent factoi to an annual change meastuement factoi , by iaising it to the fouxth powe2. � dpetators calculating the Inflation Factoi fot a Iiue-Up Peiiod which includes some poition of' the second quazteE of 2604 shouid enter the inflation factor ov the appiopiiate ]ines of Worksheet 1 of' FCC Foim 124d as "O.Q323". Opesatois using this facfoi for caloulating the Frojected � In Fuly 2004, BEA revised its quazTerly and annual GNP-PI for the previous three yeazs. os -i 5d P�iod Inflation SeLment of FCC Form 1240 should enier this nu�Uei on Li�e C3 {.7anuary 1996 version), ai Line CS (.7uly 194b versian) as "1.0323". Io date, the Commission has released thirry-six qvatteily inflation factors fot use with FCC Form 1240. Ihe foIlowing table lists these factois: Year QuarEer Dates Covered Inflation Factor 1995 I'hiid Jul_ 1, 1995 - Sep 30, 1995 2,22% 1995 Foiuth Oct 1, 1995 - Dec. 31.1995 2.22% 1995 Fust 7an. 1, 1996 - Maz. 31,1996 2.39% 2996 Second Apr. 1, 1996--Jun.30, 1996 222°/a 1996 "' Ihird . Jul, 1, 1996-Sep.30, i996 221% 1996 Fourth Oct.I.1946-Dec.31.1996 i.83% 1997 First Jan. l, 1997 - Ma� 31, 1997 2 70% 1997 Second Apr. I, 1947-.Jun.30, 1997 L77% 1947 Ihud Iul. l, 1997 - Sep. 30, 1947 1.43% 1997 Foutth Oct. l, 1997 -Dec.31, 1997 1.43% 2998 _ Fust Jan 1, 1998 - Maz', 31,1948 1.14% 199$ Second Apx. 1, 1948 - Jun. 30,1498 0.&2% 1998 Ihird Jul. 1, 1998 - Sep. 3t),1998 1.QQ% 149$ Foiuth Oct 1_ 1998-Dec.3i, 1998 0.7&% 1999 First Jan_ 1, I949 - Mar.. 3I,1999 160% 1499 Second Apr. 1, 1999-,Jun.30, 1993 1 35% 1999 Third fu1.1,1999-Sep.30,1999 1,04% 1949 Fotuth Oct. 1. 1999 - Dec. 31, 1999 1.96% 2060 Fust 7an.. i, 2000 - Maz . 31, 2000 3..00% 200Q Second Apz. 1, 2000 -.Tun. 30, 2000 2..40% Z000 I hird Jul. 1, 2000 - Sep. 30, 2400 1..62% 2006 F ouxth < Oct 1. 2000 - Dec. 31. 2000 1.99% 2001 First Jan. 1, Z001 -Maz 3I, 2001 3..23°/n 2001 Secand" Apr l, 2001-.Jun. 30, 2401 2 08°/a 20Q1 Thud Iul. l, 2001- Sep 30, 2001 2.25% 200i rouEii� iici. i, 200i -�ec. 3i.200i (u".�i%) 2Q02 Fust 7an..1,2002-Mai' 31,2002 121% 20Q2 Second Apt 1, 2002'- 7une 34, 2002 124°/a 2002 Fhud Jul. l, 20Q2 - Sep.. 30, 2002 1.02% 2002 Fourth Oct.1.2002-Dec.31 2002 1.78% 2003 Fixsc Jan 1, 2043 -Mai. 31, 2003 2.39% 20d3 Secand Apr 1, 2003 -June 30, 2003 1.40% 20Q3 Third 7u1. l, 2003 - Sep. 30, 2003 1 66% 20Q3 Fo2uth Oct 1, 2003 -.Dec. 31. 20Q3 i.50% 20fl4 Fust Jan. 1; 2004 - NFar. 31, 2004 2.84% 2044 Second Apr. 1, 20�4 - Jam 31, 2004 3_23% 05-15p I�e Cammission releases a r<ew quarteiiy inflafion factor for opetaYOrs "�+� FCC Fofm I240 fo�a times each year. Ilze �nflation factor for a given quazte� is nsually released beiween three and fots months afrer the end of the quarter, depending on the schedute o� the Department of Com?nerce. Ihe release of a new factor is posted on the Gommicsion's Inteinet site at: http:l/wcvw_fcc.gov/mb/csinflatliiml. vledia Cantact: Rebecca FisheF at {2Q2) 418-2359 Media Biueau Contact: .T�e Ftenette at (202) 418-2245 I'IY: (202)418-7172 --FCC— �=°• 05-! 5c� ArrEivn� G r 05 -/ 50 o� REGULATORY FEES Federal Communications Cammission FACT S H E ET aas,2°' sti, s.w. Washington, B.C. 245b4 Jufy 2404 WH�T YOU OWE - eABLE TELEVISION SYSTEMS FOR FY 20Q4 Cable television systems opetating on Octobei I. 2d03 must pay a regulatoiy fee pei subscribei 1 foL each of'the community units (CUIDs) in which they opeiate. The number of' basic cable suhsctibets that you seived an December 31, 2Q03 should be used as the basis from which to calculate yo�u fee payment. Begim�ing tFus yeac, you may pay yo� regulatozy fee foi all o#'yoiu basic seivice subsczibe�s with a single Iine e�y of F oim 159 without having to list yoiu individual CUIDs. Each licensee of' a CARS facility opeiating on Octobei 1, 2003 must pay a reguIatoiy fee foz each CARS license held. In instances where a license ai authoxization is transfexred ox assigned aftet October 1, 2003, the fee must be paid by the paity that is the Iicensee ot holder of'the authoiization on the date that the fee payment is due. You may submit a single payment for all of'yout xegulatory fee obligations i.e. "subscxibar fees" aud all CARS licenses; howevex�, you must list each individual CARS call sign - IYPE OF FEE REGULAIORY FEE PAYMENI rYPE PAYMbNT CO➢B Cabie System Subs�ibei Fee $0..70 per subsc7ibei 0471 " CARS License $135 per license 0470 Special InstrucHons for Comgleting FCC Forms 1�9 & 159-C In addition to the genexal Faim 159 filing instcuctions, the faIlowing infoTmation applies specifically to cable talevision systems and CA.RS licensees: Block f91- relephone Ntunber: , ➢ Entei the contact name and teleghone number of'the specific individual responsFble for ' Number of Svbsczibers In a Community Unit = Number of single famiIy dwellin +Nasnber o# individual households in maltiple dweAing units (e g, apai�ents, coodominiums, mobile home parks, eEC.) paying, at the basic subsciibe�� rate + N�xber of bulk-iate cuscomexs + Numbet of couttesy and free sesvice �(NOTE: Bulk- Rate Customets = Yoial annuaI bullc iate chazge = hasic aonval sulascription rate fot individual househoIds), submiting the payment and suppoating F omm 159 and Foan 159-C. Block (111- PAYER FIZitI: ➢ Enter t,he fee gaye�'s FRN numbei_ Hlock 21) - APPLICA2vI FR.rI: ➢ If different finm payez, eutet ;he applicant's FRN ;�umber_ Block {23A) - F CC CALL SIGN/OTH�R II?: ➢ For subsciz'ber fees, leave T3�is block blank. " ➢ Enter the call sign for each CARS license Call signs musi be enterad in oae of the tu:o followin� formats: foi fiYed stations, the call sign is geneiatly comprised of'tiuee letters, followed by a dash, followed by two oz tl�rea numbers (e..g. WAL-50�). Fo2 mobi�e licenses, the call sign is generzlly compxised of'two lettats, foAowed by a dash, followed by five numbers (e.g. KB-SOl 21). T'his EIack must be eompleted for each CAR,S �icense. Btock f24A1- FAYIv�NI 7YPE CODE: ➢ BnYez �471 when paying a subscsibex fee Subscribei infosmation must be pxnvided foF each system that is opesated. A Enter 6470 whexi making a�egulato ,ry fee paysnent for a CARS license.. Block (25A� - 4UAlv III Y: ➢ FoZ subsc�iber fees, entei yoiu aggreaate number af'basic subscxibets that you sexved on � December 3I, 20Q3. For CARS licensees, entes "1" in this block for each call sian. $lock (27A� - IQTAL �'EE: ➢ Foi subscribex fees (gayment tvpe code 0471), multiply the amount in Block 25A {Quaniity) by $0.70 and enter the result here. Enter a�ct dollars and cents; do not r ound. ➢ For CARS licenses (payment type code 047�) enter $135.00.. Block 28A} - P CC CODE 1: Leave this block blank. . Block (29A1- F CC CODE 2: L,eave this bloc� blank_ Block 301- CERTIFICAIION: � Provide t�e printed name and'signahue of an individuai owneillicensee or or�cer attesting ta the accivacy and comgleteness of'the infoimation supglied. Piease incIude a daytime telephone number so tLat we can contact you if questioas arise z�egaxding yaur pavment b5 �15d -FCC- b5��5o �� REGULATORY FEES � .�c� Federal Communications Commission FACT S H E ET 44512�' St, S.W. � Washington, D.C. 20554 July 2003 WHAT YOU OWE - CABLE TELEVISION SYSTEMS Cable television systems opeiatiag on Octobei 1, 2402 must pay a regulatoLy fee pe2 subscribe� foi each of'the community cmits in wluch they operate. Yau may pay for mutfigte community units with a single payment as long as the community units aze all pazt ofthe same cable system os pazt of a group of commonty-owned cable systems. Howevet, vou must still list each individval communitv unit identifiei f CUID). Additionally, each ficensee of' a CARS facility ope�ating on Octobes 1. 2002 must.pav a regu]atoiy fee foi each CARS license held. In instances whete a ficense or authoiization is hansfecred oi assigned after Octaber 1, 2002, the fee must be paid by the pazty that is the licensee or holdex of the autho�ization on the date fhat the fea payment is due. You may submit a sin�e payment for a31 of'yoiu �egulato�y fee abligations i.e. "subsciiber fees" and all CARS &censes; however, you must still list each individual commwuiy unit identifier (CiJID) aad Ct1RS call sign. Ihe nwnbet of'subsciibeis on I}ecembei 31, 2002 should be used as the basis fiom which to calculate the fee payment. �YPE OF FEE REGULAIORY FEE PAYiVIENI IYPE PAYMENI CODE Cable System Subscriber �ee $O.b6 pe� subsciibez 0371 CARS License $90 pei license 0370 Special Instrvctions for Completina FCC Forms 159 & 159-C In addition to the genesal Fosm 159 filing instruotions in the FY2D43 Regulato�y Fees Pubiic Notiee, the foIlowiug infoimation appfies specifically to cable television systems and CARS licensees: Block f9} - Iele�hone Numbei: ➢ Entei the contact name and telephone numbes of the specific individual responsibla fos snbmitting the payme�t and supporting Fozm I59 and Fo2m 159-C. ' Number of' Subscnbecs In a Community'CTnit = Number of single family dweflings +�� of individual households in multiple dweIling units (e g„ apar[ments, condominiums, mobile home paz ks, etc.} paying at the basic subscziber rate + Nianber of bulk-iate customets + Numbei of courtesy and free setvice (NOTE: Bulk- Rate Clistomers = total annual bulk iate chazga s basic annual subsaiption t�ate for individual househalds). � 05--/ 50 Block f? 1) - PAYER FRN: ➢ Enter the fee paye�s FRN ttumber. Block (21/- APPI,ICANI FRN: ➢ If diffecent from payer enter die apglicant's FRN n�ber_ $lock t23A1- FCC CALL SIGI�lO�HER ID: ➢ Enter yoiu Commnnity Unit Identificasion numbei (CLTID) foi repoiting subsciibers in each community uuit cvithiu your system. (;UIDs must be entered in tke following format: a two- ` di�t sta#e,code followed immediatety by fotu numbets (e.g. AL0002). Please da not add any dashes (-)_ This Block mnst be eompieted for each CUID. ➢ Enter the call sign fox' each CARS license. Call szgns must be enteied in one of'the two following farmats: for fiYed stations, tke call sign is generally compzised of'tl�ree letteis, � folIowed bq a dasfi, followed by fwo or three numbers (e g. WAL-504}.. Foi mobite Iicenses, tt�e call sign is generally comptised of'iwo letters, followed by a dash, followed by five munbers (e �. KB-64111} This Block must be completed for each CARS flcense. Block 24A1- PAI'MENT IYPE.CODE: ➢ Enter 4.371 wfien paying a subsc�ibei fee. Subst�ibei infoimation must be provided foz eacfl CITID in wbich the system is opesated. ' ➢ Entei 0374 when making a regulaioiy fee payment foi a C.AI2S }icease. Block t25A} - OUANIIIY: ➢ For subsc2ibes fees entei the n�bet of'subseribets within each CUID For CARS licensees, entex "1" in this block for each call sign. $Iockl27A) - FOIAL FBE: ➢ Fox su6sciiber faes (payment type code 0371), multiply the amo7mt in Block 25A {Quantity} by $0.66 and enter the result hese. Enter esact doilars and cents; do not round. ➢ Foz CARS licenses (payanenY type code 0374) enter $90 d0. Biock f28Fi} - r CC Ct�iDE i: Leave iuis biocK biank. - Block f29A) - FCC CODE 2: ➢ Foi subseiiberfees only (paymentlype code 0371), provide the name of the community, Community names are not a substitute for the community unzt identifrer (CI7ID). Xou must also piovide your CUID 'm Block 23A (FCC CAT,L STGNIOTHER TD).. BIock f3Q} - CERIIF'ICAIION: ➢ Pzovide the psintefl name and signahue of an individvaI owneillicensee oz officet attesfing to the accutacy and completeness of'the usfoimation supplied Please incIude a daytime tetephone number so that we can contact you if questions arise r egarding your� payment, 05 �' SU -FCC- c�5-� 5c� Ccomcast� Februazy24,2004 ?vts. Holly Aansen Cable Co�unications i��cer St. Paul Office of Cable Co�unications IS WestKelloggBlv� 68 City Hall Saint Paul, MN 55102 Comcast Cahie CommunicaHons, fnc. t�idwest Divisbn 29777 Telegraph Road. Suite 4400-8 SaWifieitl, MI48R?4 2a8233.4700 Tei RE: MN0424 Deaz Ms. Hansen: On behaff of Comcast of St. Paul, Inc., enclosed ue FCC Forms 1240 and 1205. These forms represent Comcast's annual filing for adjushnents to basic service, equipment and installarion prices. Recent FCC miings iequire that we provide an "Operator Selected Rate For ProjeMed Period" on Line 110 of the FCC Form 1240. Even though we have not yet determined the rate we intend to chazge for khe Basic Service Tier effective June 2, 2004, we have entered the max;nn�.., pernritted rate from Line I9 on Line I7 0. Please be advised that it is not our iatention at flus time to charge the ma�nuru pemutted rate. Equipment and installarion prices can be found in a sepazate attachment enritled "2004 Installarion & Equipment Rates". We will implement specific equipment and installation prices that aze lower than the maximum permitted rates calculated on FCC Poim 1205. Comcast has chosen March tst as its filing dafe. The enclosed FCC Poims aze not intended Yo serve as notice for aay price adjushnents of the basic service tier, equipment or installation charges. Appropriate notice will be sent to you prior To anq adjusiments ia the basic service fier, equipment and installation prices. Please call me at 248233 A740 or your local Comcast-affiliated cable system contact, Kathi Donnelly-Cohen, at 651.493.5281 if you have questions about The filing. Siacerely - i G/ !/ � Lp�� Sharon Wiorek Duector of Regulatory Reporting Comcast Cable Comuiunications, Inc. Midwest Division 05-��0 � CITY OF SAINT PAUL Randy Kelly, M¢yor March 19, 2004 Sharon Wiorek Director of Regulatory Reporting Comcast Cable Communications, Inc. 29777 Telegraph Rad, Suite 4400-B Southfield, MI 48034 Re: 20041240 and 1205 Rate Filing Deaz Ms. Wiorek: OFFICE OF TECHNOLOGY Kwen L. Johnsors, Dirutar OFFICE OF CABLE COMMUMCATTONS &4 LTry Aall I S W. Kello� Blvd S¢intP¢ul,M6u�csoW 55702 I am writing to advise you that we have received Comcast's filing of FCC forms 124Q and 1205 for adjustments to its basic service, equipment, and installation prices. We wi12 be reviewing these filings and issuing a rate order prompfly, once we have concluded our review. We will contact you with any questions we have cancerning the filing. Youts truly, Holly M. Hansen Cable Communications Officer cc: Kathi Donnelly-Cohen Telephone: 651-2668870 F¢csimile: 65]-266-8871 --AA-ADA-EEO Emplayer— 05 -/ 50 . ; Pedetai Conuuunjcafims C.,mmi=�� Was7vnz, f.on, DC 20554 Approved by OMB 3060-0585 FCC FOIiM 7240 UPD �TING MAXIl�NM PERMIT`TEII RATES FORREGIILATED CABLE SERVICES Cable Opetater. YES No 1. Does this Siiva involve a smgle franchise authoriry and a single comwunify nnit? X li yes, complete the IIanenvse avrIIOnty' m[omianon betow and enter the associated CUID numbechere MNOa2a � YBS NO 2. Daes t}tis fi6ng involve a single &anchise authority but multiple community uttits? X Ifyes, enterfhe associafed CUIDs below and complete the franchise authority infounation akthebottom of t]vs page 3. Does Ehis Fililing involve multiple fianc}tise anthoritles? If yes, attach a sepazate sheet for each &an.chise au$writy and include the followmg franchise auffiority info�ationwith rts associated CUID(s): Frnnchise Authority�7nformntion: 4. Forwhat purpose is this Form 1240 bemg filed? Ptease put an "%" in the appropriate bos. a OtiginaiFoim 1240 forBasic Tier y b. Amended Fo� I240 for Basic Tier c. O��+nalFomi 1240 forCPS Tier d Amen.ded Foau 1240 for CPS Tier TD 5. Tndicafe the one year time period for which you are setting rates (theProjected Period} 06/01/04 OS/31/OS TD 6. 7ndicate E$e time period for wluch yon areperforming a tru�np. 12/01l02 1]I30l03 7. Stalus of Previous I+Ftmg of FCC Form 1240 (enter an "s" um the approgriate bos) YES NO a Is fhis the ficst FCC Foan I240 fled "m any jurisdiction? g b. Has an FCC F�ttt 1240 beeai filedpreviovsty with the FCC? g Ifyes,ent¢tfiedateofthemosflECentfilmg:� (mm/dd/YY) YES NO c, Has an FCC Fo� 1240 been file3pieviously withthe Franclvsmg AuthoriTy? % If yes, e¢ta the date of the most recent filmg: 02l26/Q3 �(mm/dd/yy) Page 1 20043741B 1240 MicrosoftExce15.0 Venion ��YY) C�ri) FCC Bo� 1240 July 1996 65-i`�O 2 O f Q � � O LL 2 F Z � � � O t> � a m y x � m m' � m m Y � � N O E E 0 O m a m U `o m � 0 'a a N O a U N � � C O C � � O U m s m 0 c m m x 0 2 J � Q a r Z Q N < < 0 Z g Fedetal Comnusnications Commission WuUivgtoq DC 20554 YES NO % 8. Sfatns of Previous F1iug of FCC Form 1210 (enter an "s" m the appropriate bos) YES NO a Has an FCC Fomi 121D beenpreviously filed wrth theFCC? g Ifyes,egterfhedateofthemostreceatf�la�: 12/01/'95 � (mmlddlyy) YES NO b. Has an FCC Fo� 121D beeapreviovsiy fled vrith the Francltisjnp Authorit}�? g Ifyes,entsrthedateofthemostrecentfilntg: 11t1&l99. (mmkld(yy) 9. 5tatas of FCC Form 1200 Filiug (enter an "x" m the appmpriate box) a Has an FCC Fomi 1200 been.pLeviously fiIedwiththe FCC? YES NO % . If yes, enter fhe date filed: � (mm/dd/Y7') YES NO b. Has an FCC Fonn 120� beeapieviousty fle3 with the Franchismg Authority? g Ifyes,enterthedafeflzd: 08114/94 ' (mm/dd7yy) 10. Cable Progrnh+ _n Services Complaint Status (enter an "s" in the appropriate box) YES NO a Is this foffi Uen�g filed inresponse to an FCC Foun 329 camplamt? g • If yes, enter the date of the complamt � (mm/dd/yy) YES NO il. Is FCC Form 1205 Being Ittciuded Wikh This Filiug g 12. Selection of "Guing Farward" Channel Addition Methodology (enter an "s" in fhe appropriate hox) � Checkhere if you are usmg the oiiginalniles [MARKUP METHODJ. �Check here if you ue usiug the nevr, attemative rules (CAPS METHOD]. If »�na ffie CAPS METHOD, bave yov elected to revise iecovay for cluwn.els added dutmg the paiod May 15,1994 tn Dec. 31,1994? 13. Headend Upgrade Methodotogy *lJOT�+ � Operators mvst cerrify to the Commission their eligibiliry to use this upgrade methodoZOgy and aHach an equipment Zist and deprecranon schedule. �Checkhere if you aze a qualitying small system usuig ffie streaznlmed headend up�ade methodology. Lb¢eat Nia�.,�,,.., P�mitttd Rate Part I: Preliminar°y Information 1Vlodule A: Maximum Permitted Rate From Previous Filing Bi AverageSnbscribersiupForTrv�UpPeriodl 32 AverageSnbsciibelshipPorTrue-L3pPeriod2 33 Eslimated Averaee Subscribershin ForProiecG I U�IaimeslTntlatien: Operatot Swit3ring Ftam 1216 To 1240 L Unclaimed7nflation:UmegnlaladOperetorRespondingtoRateCompl�;+rt Cuaart FCC Soflation Factor a o Basic T]er 2 $10.0734 i B: Subscribersfu � b s,�,� ner z 52,929 53,458 O� 15 O Approved by OMB 3060A685 1Ser 4 e 1]er 5 P� 2 FCC Poan 1246 20043741B 1240 Mi¢oso8Esce15.0 Version July 1996 Fedaxal Co�nications Commission wa4h;n��,DCZOSSa d5-l5p P.pgcoved by OMB 3060-0685 Module D: Calculatin the Base Rate a b c d e j�ye ISneDesci�fioa Basic 11ei2 1Yei3 'Siet'J TieiS DS Cu¢entHeadendUQg•adeSeemeut $0.0000 Gbn'e�Eatemal Costs Segme�. 52316b � 3 Q�¢ent Caps Method Se¢ment $0.0000 CuaadMadcup idet�od Se3me� ^ s0.0000 5 �na� Channel Movemalrt and Deletian Se�ne� $0.0000 6 C7mentTmal7pSegn� $1.7617 � - _ D7 Q�ae�SnflationSegme� 50.1048 � DS BaseRate[AI-DI-D2-IY3-D4D5-D6-D7] 55.8903 Part II: True-Un Period What Type ofTxue�Up Is Being Pexfoxmed? (Answer"1", "2", or "3". See Invlmctions for a description It "1" go to Mod�ile L If "2", azis�ver E2 and E3. If "3", snswer E2 E3 FsF and E5. Number ofMoatLs inffie Trv�Up Psriod i Number ofMo�6s batweentLe and of Tme-Up Period 1 and the end ofthe mostreceut Ptqected Period Number ofMoidhs m Txue-Up Period 2 Eligiblefozl¢tetest Nnmber ofMonths Tm�Up Period 2Ineligib]e far Iuterest Module F: Maximum Permitted Rate For True-U Period 1 a b� c d e L'me L'meDescriptian Basic 1Yer2 TYer3 11er4 15u5 Fl Caps Method SegmemFot Trve-Up Period 1[Wks 2] $0.0000 � P2 MarkupMethodSegmentFotTme-UpPetiodl[Wks3] $O.00DD F3 CLaaMvm�Dele[nSegineirtForTmo-UpPeriodl[Wks'MS) $0.00 F4 Tmo-UpPsriodlRateEligtbleForintiation[D8+F1+F2+F3) $5.8903 FS Tnflation Segmetrt fot 1'me�Up Period 1[(F4kC3}F4j $0.0994 F6 HeadendUpgade Se�.e� For True-Up Period 1[Wks 6] Eatemal Co.sts Segnent For True-Up Petiod I (LVka'7� 2.3497 / F8 Tme-Up Segmeat For Tm�Up Petiod 1 $1.8043 / F9 Mas Pemi Rate for Tm�Up Period 1[F4+FS+F6+F7+FSj $10.1437 rmitted Rate For True-Up Period 2 a 6 c d c Eavic Tier 2 1Yer 3 Tier 4 Tiei 5 GI C apsMe t ho d SegmeotForTiu e�Up P e r iod 2[Wks 2] G2 Madtup Metfiod Sagnmt For Trv�Up Petiod 2[Wks 3) 33 CfianMv 34 T Upaiod2 R a l eEligibleForInflation[D8+PS+G1+G2+G3] i5 7nflaFion Segment fot T Period 2[(G4*C4}G4j i6 Headend Upgrade Seg F or Trve-Up Period 2[Wks 6] %7 E�m Costs Sep For Tma-Up Period 2[Wks 7j 8 T SegnartFor T Period 2 9 MaaPeuuRate for Tm�U9 Period 2 (G4+GS+G6+CI+GST Page 3 - FCC Foim 1240 2004374YB 1240 MicaosoRExce159 Vetsi� July 1996 Fede'ral Communica4ions Cormnission Wa�hm� on, DC 20554 . OS-�50 Apqroved by OMB 3060-0685 Module H: True-U Ad'ustment Calculafion a b c d e �' L'v�epescripfion Bflsic Ties2 TTer3 'IYer4 TierS ^ Lshnent Fot Tr¢e-Up Period 1 I ReveunoFromPeriodl $5,087,535.48 RevenueFmmM�Pe�ittedRafefocPeriodl 56,442,13L1736 TmedTp P�od Z Adjostme� [H2-HS} S1,355,195.6936 4 SitiuestonPeaiodl�3djasimart 5156,747.4394 joaimentFor Trne-IIp Period 2 Reven�e FromPeuod 2 Eli3�fe forIntuest 6 RevetmeFromMasPeffiRateforPetiod2Elig.blePorl�eresf. H7 Petiod 2 Adjustme� Eligble Foc Inteiest [H6-HS] H8 IuterestonPeriod2 Adjustme�.(Seeioshuctionsforfoxmula) � H9 RevrnueFromPeaod2Tneligibleforiataest � � 10 RevenueFromiVJaxPetmRaieforPeriad27neligfbleforTnterest Bl l Periad 2 Adj�sfinent Tneligble For S�erest [H10-Fi9] ' Total Trne-Up Adfi�.stmeat HI2 Previous Remainmg Tme-Up Adjustme� A33 TatalTmo-UpAd,jisstrne�{H3+$4+g7+-H8+H11t$12] $1,511,943.1330 14 AmouMofTmeUpCiaimedFcaTlvsProjectedPeriod $1,511,943.1330 � H1S 72emainmgTxue-UpAdjustment[H13-H14] SO.D000 Part III: Projected Period Modale T: New Maaimum Permitted Rate � b c Easic 1Yer2 1Yet3 � CapsMetriodSegneutForPcojecxedPeriod[VTks2] I2 P+farkupMefhod5egmevtRoiProje�,i.edPeriod(Wks3) S3 ChanMvmtrtDelelnSegme�ForPtojectedPeriod[Wks 4 Proj. Period,Rate Eligible ForSntlafioa [D8+FS+GS+I3+ 7nflatioa Segmeat for $ojected Period ((I4�C5}I4] I6 Headend Upgrede Segmeni For Projeded Peciod [Plks 6] I7 F,aterval Costs Segner.t Fat Prajected Period (V1ks 7j IS True-UpSepyi�tForProjectedPeriod [9 MasPem�ittedRafefor&ojectedPeriod[I4+IS+I6+I7+I $U.00QO $0.0000 $0.00 $3.9897 $0.0994 $2.1535 $23569 $]0.5996 a e 'i5er 4 TYer 5 :10 Ope[ator SelectedRate For Pcnjected Period ,$ �� y � o, ' , ' Vots: The mazimum pemiirted ratefigures do not toke inta accouxt arry refund lipbilrtyyou may hwz If}rou have previously been ordered by the Commissiorr or your ocaZfranchising aurfionty fo make refunds, you ar¢ not reiieved ofyour obGgation to make such refitnds even if the pernuRed rate is hrgHer ihan [he confesied rat¢ or 'our cunent rate. Certification Statement WII,I.FUL FALSE STATElvIENTS MADE ON THLS FORMARE PTJNIBHABLE HY FIl3E AND/OR IMPRiSONMENT (U.S. CODE TiTLE 18, SECTiON 1007� AND/OR FORFIINRE (U.S. CDDE, TPIS,E 47, SECTiON 503) Jeffte 5.Ossows] Telephane numbeL � Sbamn Wiorek 2�� Page 4 20043741B 1?AO ��yf Complet� this Fomi: V.P. PSnance - Midwest Division MicrosoRExce15A Vacsion FCC Foml 1240 7uty 1996 Federal c'..—.-.. Commi.csion Washingtoq DC 20554 Worksheet 1- True-Up Period Inflation For insfmcEions, see Appendix A ofInshuC�i.ons PorFCC Fomi 1240 �Period FCCTntlstionFactot 1Q1 MoNh7 1.7800°!0 302 MoIDg2 23900°Jo 103 Mollth3 23900% 104 Monfh4 2.3400% 105 Mo�h 5 7.0000% IOb MoMh6 I.0000% 109 MoN7i7 1.00Q0% 108 Mo�h 8 1.6600% 109 Mouth9 7.6600% 110 Month 10 1.6600% 111 Moufh 11 1.6600°h 112 MoIIth 12 1.66D0% 113 AverageTnf7ationFactorfotTm 1.0169 Up Peaod 1 114 Mo�h 13 115 Month 14 716 Month 1S 117 Moath 16 118 Manth 17 119 MoMh 18 120 Moath 19 121 Moxtth20 122 Monih 21 123 Moath22 124 Mo�h 23 125 Mo�h?A 126 Avernge7nflationFactorforTm Up Peciod 2 �s - 150 Appmved By OA3B 3060-0685 Page 5 FCC Fomi 1240 2004 3741B 1240 Mi¢aso$ Exce15A Vecsion 3nTy 1996 Fedetx7 Commiwications Commixsion WasF�fon, DC 20554 Worksheet 2 - Caps Method True-Up Period, Basic Tier For imlxnctions, sze Aypend� A oF7nst¢ctions ForFCC Po� 1240 Quation 1.IadicatetLe periodfor whichthis wo�sheec is Semgvsed (Fut an°X" inthe appxopiiate bos) 05 -15 t� AppZOVed By OMB 3060-0685 Tm�Up PmjectedPed Period % ' ---_---_-I ��a��■� . • �� i � �� ; . , �� • �� - ��i�� 6 FCC Fomi 124D 2004 3741B 1240 Microsoft Exca15A Yersiqn 7uTy 1996 Qaestion2.Indicatatheti�forwLichthisworksheetisbemgused(Putan X"att6eappropriatebox) Basu Tia 2 Tier 3 Tier 4 Tiar 5 X Question . � Questioa 4. FSow long isthe secopdpexio� inmonfhs,£or cdnichrates are being set with ttis wodcsheet? Feaeral comnnwic�ions cr�i��on Was6ingtoq DC 20554 Worksheet 2 - Caps Method Projected Period, Basic Tier For mstrndiocs, see AppendgA oflmctrnctions For FCC Form 1240 Ques�uon l. indicafe the period for w3uchfhis w��sl�eetis being used (P¢t an "X" mffie appropri�e box.) O 5 �l 5p Appmved By OMB 3060-0685 Tmo-Up PmjeciedPerio Peaod x Questioa 2. Sndicate thetia£or w3uchUus worksheet is bemg vsed (Put an'R" inthe appmpriate box.) Basic Tia 2 Tier 3 Tier 4 Tia 5 R Question3. Howlong isthe Sistpedod, inmont6s,for w3uchrates aze being setwithtLis woiksheet? 12 Question4. HowLongic the secoud perio� mmo�hc�'or cehichmtes aze being setmrththis work�heet? 0 1 2 3 4 5 6 7 8 9 Operators Previovs Cutrenf Operator's TotalLicense Total Lme Period Regvlated Regalated Nef CLange � F � r Cap For �� Fee Fee Reserve Operaton Tota1 Caps Gyanne]s (.y�nels �a�� License Feev Rese.ive Used Used Cap IIsed Adjushuent 201 � Mosstl� 50.00 50.00 $0.00 202 Monthl 0 0 $0.00 $0.00 SQ.00 $U,�O 203 Moath2 0 9 $0.00 $0.00 $0.00 204 Month3 0 0 ' $�A� $0.00 $OAO OS MaatU 4 0 ' 0 $0.00 $0.00 $0.00 206 MonthS 0 0 $0.00 $0.00 $0.00 �7 Mo�b 0 0 $0.00 $0.00 50.00 208 Mo�h7 0 � $0.00 $0.00 $0.00 209 ManthB 0 0 $0.00 $0.00 $0.00 Z10 Moath4 0 0 $0.00 $0.00 $0.00 211 Mo�h 10 0 0 $0.00 $0.00 $0.00 212 Moath 11 0 0 $0.06 50.00 SD.00 213 Mmrth 12 0 0 $0.00 $0.00 $0.00 214 Av ePeriod3Ca MethodAd"astiuent ' $0.0000 p� � FCC Fami I240 2Q0437415 124� MicrosofrEacel5.0 Version Juiy 1996 Federa( Co�nunications Commission WashingWn, DC 20554 Worksheet 3 - Marknp Method Trne-Up Period, Basic Tier Fos instnletionq see Apprmdis A of 7mimcti�s Fot FCC Fo� 1240 Question 1.Indic�ethepetiod for wlrichiltis worksheetis beug vsed (Pnt an "X" inthe appropriatc bos) o5-i�� ApprovedByOMB306 -0b85 Tmaiip Petiod Ro}ected Pertod % Que4wn2.Indicafe4tetiaforwhicfithswodcsheetisbemgvsed�(Putan"X"mYaeappropdaLetos) - Basic Tier Z Tia 3 Tia 4 Tier 5 % Page 8 FCC Foffi 124� 2064 3741B 1240 Mwzosaft Exce15.0 Veisision Suly 1996 Question3.Howiongssthefustperiod,inmonthqfocwhichratesazebeingsefwithtUiswotkshedR —L J Question 4. How long isthe second peuod, inmozrtSs, for whichrates arebeing set withtivs worksheet7 Fedeial Comnnmications Crnnmission Wasltinaton, DC 20554 Worksheet 3 - Markup Method Projected Period, Basic Tier For instrudions, s� App�dia A of7nstrnctions ForPCC Foxm 1240 Question 1, SndicaY.e thepexiod for wLich �lvs worksheet is beiag nsed (Put an"X" ia$e appropriaTe bos) 05-15zJ Approved By OMB 30b0-06S5 Ttuo-Up Period &ojected Period % Question 2.Indicafethe tiafor wluchlLis works6eet+s beingused. (Put an "X" mthe appcopriate bos) Besic Tiar Z Tia 3 Tiar 4 Tiec 5 % Qu�tion 3. Howlong is the fusE periad, in mo�6s, for w}uchrates are being set withthis worksheet? u Qoestion 4. Howlong is the secondperiod, in moidLs, fot wluchmtes are being set withiltis worksheet? 0 p� 9 FCC Form 1240 20043741B 12A0 MicrosoftEace15.0 Vesion _ hily 1996 Federal Communicffiions Commission Washington, DC 20554 Warksheet � - Residual True-Up Period For mstructioas, see Appznd� AofInshuctions Foz FCC Fomi I240 Questioa 1. Indiqtathe period for wlriehflvs worksheetis being used (Put an"X" in$e appropxiate box.) Perind fh�r �5-� Sa Appioved By OMB 3060-0685 Tme.UpPexiad ProjectedPeriod % 401 AveragepemuttedC6at�ge S&0300 . - 402 Avetage E�emal Cm�ts $23497 403 Aveiage Total Per Channel Adjushaents after 5l14J94 g0.OD00 forC6snnelsAddedUsing Method AOA Aoemge $5.6603 405 AverageChan¢elspaRegulatedTiec 28.0000 406 AverageCapsMethodChanne7sperTia 0.0000 407 AtiezageR — . 28,OO�U 408 Average Period 1 Per Chanuel Residual [404l407j $0.2022 409 AveiagePetmittedCharge 410 Avemge Extesnal Costs 411 Avexage Total Pet Channel Adjus4nents aftei $fkM94 forCLaimalsAddedU' C Method 412 AverageTierResidual[409-010.A11] 413 AvezageCLaffieLsgazRegutatedTier 414 AvetagaCapsMethodCharmeLtpetTia ais a��x�•�chu,ae�sgis-aial 416 Avenge paiod 2 Per Cbapnel Residual [41?1415j p� IQ FCC Porm 1240 20043941B 1240 MicrosoftExce15.0 Ve�aioa Suly 1996 a�a�a c��;�n� c�;�� Wasi�mgton, DC 20554 Worksheet 7 - External Costs Projected Period For ins1mctiont, see Appenct� AofSnsh�ictions For FCC Foffi 1240 Questionl.Formhichtimeperiodazeyoufillina�outtLiswoxksheK? (p¢tan'.R"mtheappiopsiafebox] Question2. How Soug isthe fustperiod, inmo�rths, for w3sschrstes are being setwifhthis wox'ssheeq Queation3_ Howlongis the second period, inmoNLs, for wluchrates are being set withthis worksheet? 0� 15 b Apqroved By OM6 3060-0685 Tm�UpPeriod $qectedP�iod % � 0 Page 17 FCC Foan 1240 20043741B 1240 Mictoso$EXce15.0 Vetsion 3uly 1996 ��e LineDescrmtian Basic 75er2 'IYer3 17ier4 1Yer5 � Federal Cummo.n=cations Co�nission W�ah'�� DC 20554 Worksheet 8- True-Up Rate Charged For in:,hu�iions, see Appendix A of Tastrudions For FCC Fo� 1240 Qnestion 1. Eow long istSe TmaIIp Period 1, mmo�.hs? QuzcFion 2. $owlongistLe Tme�tFp Periad 2, inmo�4hs? �5-� 5� Appi�oved Hy OMB 3�6�-0685 12 a 6 c d e L"me �aDaaipfioa &asic Zger2 1yer3 15er4 'lyer5 801 MorAh i 58.0100 802 Month2 $8.Q100 803 Mrnrth3 $8.0100 804 Moirth4 $S.O1QQ 805 MonthS $8.�1�0 806 Month6 $8.010� 807 Moath7 $8.�100 SOS MoN.hs $8.Di0o 809 Month9 $8.0100 810 Monkh 10 $8.0100 ffi 1 Month ll $8.0100 812 MoNh 12 $8.0100 813 Periodl AverageRate $8.0100 814 Month 13 815 Moath 14 816 Mmdh15 817 M�hi6 818 Month 11 814 MonthlS 820 Mopth 19 821 Mrnrth20 � 822 Mo�.h21 823 Month22 824 Month23 82S Mmrth24 826 Feriod 2 Avexage Rale P � 18 FCC Form 1240 2004 3141B 1240 Microsoft Exce] 5,0 Vasion Suty 1996 t'F —150 � �o o5�tso � m �o y m J Q 9 Y 0 m 1� N N 0� N N m Q O N P = O M O N � M W b � 4 �- �d m � o �o .n O a �+ w e m m N 0 0 � � m y O � � ' m m @ m 0 N N � O � P ¢ O � O V ? W � m G e- � � � O H N > O dl W m P O m � O N 0 .7 O � � m � N m 0 � t0 0 � a m (v, � o » w o °m ' ° m ch m ¢ o w (O N N h O b h � O � � N N N ^ mn M m O N N LL O f9 H m 0 O d I` m C ' �_ G i[�i u - O H N m 0 t9 O m �' N O h N � O V3 H � � � � � � � � � � , � � � � � � � � � / � � � m W N (J 2 � a � � � yJ � � Z g = � � yy ¢ � E � O � W K V � � C' }� � 3 g � `� .��. �' Q E � � .+ `< "' � 0 4 U a f o i �¢ 'z t� (n 4 ¢ z � c. tiw c - m- m Q �__ a L ? q O m � 3 � s 3 � z � $ Y .� 4 � x �i �J' 3 � U' n i �Y � a % � J � � W Q� Z a� N t�a y 1fJ (p h 0 0� � � � �� O r m W N N N N N C N W A 0 S Z U A 05 -1 5p m i$ Q5-15c� �� ST. PAUL J7�, � � 1= 2� , - , � 23 24 25 26 22 i1 2 4 5 9 2 3 4 5 6 7 8 9 10 ii 12 13 14 15 16 17 18 19 2� 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 KTGA - PBS KPXM - PAX WCC6 - C8S KSTP - ABG Metro 6 Regional Access WGN KMWB-WB KMSP-FOX WFfC - UPN KaaE - mec KSTC - IND Local Programming Religious Access Public Access Educatiorl Access lQCt - P8S Government Access Pubfic Access Locai 4rogramming EWTN C-SPAN 2 The Weather Channef N Guide C-SPAN QVC Court TV ESPN 7ravel Channel Lifetime AMC GNN GNN Headiine News CNBC E! A&E The Discovery Channet 38 39 40 47 42 43 44 45 46 a� as 49 50 5'I 52 53 54 56 57 S8 b9 60 61 62 63 &4 65 66 67 7a 76 77 95 96 99 USA BE7 VH-1 � PATV Great American Country Spike N Disney Nickelodenn ABG Famity BRAVD Cartuan Neiwork Nistory Channef Sci-f! Comedy Central Fox SpoAs Nei Tumer Glassic Movies Pox Mavie Channel N Land ESPN Classic ESPN2 Go/t Channel Fox (Jews The Leammg Channel Anima! P/anet Home & Ga�den N � TBS Supersiation TN7 Women's Entertainment MSNBC sN4EMAN01 Outdoor Life Home Shopping Network Food Netwotk Univision z Basic Channel Line-Up See other side for Digiial line-up. i�- 6asic 2 suhject to change. Basic 3 Pay-Pao-V3ew 651-222-3333 SP 1-888-GOMCAST i �� comcast Er�we www.comcasf.com ° Oct2003 R�CEIVED �CT 2 3 2003 d� I5U 1 . . t 111 Weat�erscan Local S12 KARENBG (HD'fV� i14 KPftSP-FOX(HOil� 126 N06GIN 12i Discovery tGds 122 ioon Disney t25 Newswaritl fnternatfonat 726 NickTOOns 128 Bluom5erg �35 MN 2 136 G4 137 TRlO 138 Wisdom 161 The Game Shaw Netwark 162 BBC America Y64 ShapNBC 573 ESPN HD l74 iNHD 175 INHD 182 Ovation 183 Styfe 201 Discovery Home & Leisure 215 Nick GAS 220 Discovery Health 222 The Heaith Network 230 Trinity Broadcasting 231 InsgiraGOnal Life 2A9 Intemaiionai Channel 271 Oiscovery Times 272 Discovery Science 273 NationalGsographic 274 Discovery Wings 275 Siography Channel 278 History Iniernational 294 TeehN 401 Fox Spnrts Wurld 402 ESPNews 406 DutdoorChannei 408 Speed Channel 4l3 Fnz 0[giql SpOrk Atlaatic aya Fox DigitalSpods Central 4Y5 Fax Oigital Sparts Pacitic 420 ESPN Now 471 VH-1 Gountry A72 MTV Hits 473 VH-t Classic 474 VH-1 Soui 476 FUSE A81 BETJan 482 MBC 484 Greai American Country 486 The Wofd 503 IFC 504 Lifetime Munie Nerivork 505 Sundance Easi 5U6 Fux Marie Channe! 516 WAM! 517 Encare 519 Encore Love Stories East 521 Eneore Mystery East 93 Enco2l^tesiems East 527 Encore True Stories East 529 Encore Action East Q70 Uli/isima 601 Oiscovery en EsyarioJ �12 fox SpoRS en Espanol 603 NEfnteroacioaa! 604 Cinetatlno 6P5 VNl en Espanol 6(� MNenEspannl 608 CNN en Espano! 6� Toon Drsney en Espa6ol 610 HNMusica 427-425 SpnrYS PPV 4dQ N8A Prevrews 44?-451 NBA PPV Sporfs Pkgs 46Y-470 MC8lNNL SpoRS Pkgs &DD PPVPravlei�s 8Ql-830 iNDfMANO 844 HotNetwork 85f Spice 852 Spica 2 853 Playbay 5�3 S4ai2i 535 Starz! 7'heater 537 SFaeN S1arz! �38 Star� C[netlta Easf 539 Siarz! Family � NBO 557 HBD Easi jN6N) �i2 H8a Z East �i3 H&Q Signattrre East � HHU Familp East 558 HBD Laiirto East �9 HBo Camedy East �4 H8D Zo-ae Eas! � Csnemaz 564 �lore 4�ax Esst 5fifi Ar�ian ft7ax Easi �/ 7hrilfer Afiax East 575 Sh�wfime S76 Showtime EasY (ADTll) 577 ShaTap East 579 Shawtime Showcasa Eas[ 581 Shuwtime Eztrema Ezst 583 Shnwtime Nezi 5&1 Sheurtime famiSy 585 Shovi3ime Women 585 Fiiz Fasf �0 TAM1G East 592 7tdC 2 East � � 900 Shawcase 901 Toda}�s Country 9U2 Classic Couatry 903 Americana 9a4 Bluegrass 905 R&B and Hip Hop 906 Classic R&B 907 Smooih R&B 908 Rap 909 Metal 910 Rock 917 PowerReck 912 Classic Rock 913 Alter�ative Rock 914 Electronica 915 Oance 9�6 Pragressive/ AduH Aiternative 917 Sott Rock 91S Htt List 919 Parly favorites 929 80's 921 NewWave 922 70's 923 Solid Gald �Idies 924 Singers & Stantlards 925 Big Band & Swing 926 Easy Listening 927 SmoothJazz 928 Jau 929 Blues 930 Reggae 931 Saundscapes 932 Classica) Masterpieces 933 Opera 93A Light Ciassicai 935 Show Tunes � 936 Contemporary Christian 937 WRNB 95� 6ospel 951 For Kids Only 952 Sounds ofthe Seasons 953 Musica Latina 954 Saisa Merengae 955 Rock `En Espafiot 956 Latin Love Songs 957 Me�icana s �igiial Plus Pay-Per-Visx Channel Line-Up subject to change. Digitai Erira Cabie Latino Channels , Premiam High Definition 7eSevision 651-222-3333 sP 1-888-COMCAST �Q� E `��""� www.comcast.eom � 0�.20� 1. 5' 1= - � S-�� a�� (�� o � ��-/ �� tq �J P :� Pricin� Basic Service sasic 5ervice .........................................5 Basic 2 Service . . . . . . . . . � . . . . . . . . . . . . . . " •' ' . . . . . . . . . . . .$ Basic 3 Senrice . . . .. . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . . . . . .$ Siandard Cable (includes Basic, 6asic 2 & Basic 3) . . . . . . . . . . . 3 Premium Channels HBO, Showtime, Cinem�, TAM1Q Starz! (each) . . . . . .. . . . . . . . . $ Digital Cabie (IncL Std. GaGle and Digital Plus) Digital Platinum (All Premium Channels) .. . .. . . . . . . . . . . . . . . . $ Digital Gold (Any 2 Premium Channels) . . . . . . . . .. . . .. . . . . . . .$ DigRal Silver (Any t Premium Channe� . . . . . . . . . . . . . . . . . . . . . $ Digftal Plus (Includes 6ox & remote) . . . . . . .. ... . . . . ... . . . . . .$ DigitalExtra ..........................................$ Cable Latino ..........................................$ Digitat AJO (Inciudes bmc & remote) .. ........ . . .. ......... .$ Intemet Services MonthVy Service Fse" . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . $ Discounted Monthly 8erv�ce Fee ++ . . . . . . . . . .. . . . . . . . . . . . . .$ Monthy Cable Modem Lease Fee . . . . . . . . .. . . . . . . . . .. . . . . . $ Home Networicing Service " . ... . . .. . . . .... .. . . . . .. . . . . . . $ Totaf Monthiy Se[vice (Monthly Service + {y��em fae) . . . . . . . . .$ D(scounted Tota1 Monthry Service . . . . . .. . . . . . . . . . . ... . . . . . $ Premium Instailation < ......... . .... .. ... .... .. .... . .... $ Basicinstallatlon < .....................................$ Service Cali .......................................... $ Rebption lrtstatlation . .. . . . . .. . .. . . . . . . . . .. . . . . . . . . . . .. $ Ethemet Device . .. . . . . . . .. ... . . . . . . . . . . . .. . . . . .. . . . . . . $ Data Outlet ...........................................$ Addi6onal Outlet connected at time of Instailation . . . . . . . . . . . . . $ Modem Activation Processing Fee . . ... . .. .. .. . . .. . .... . . . .$ 7.97 2924 578 A2.99 13.99 89.99 74.99 63.99 14.99 5.99 6.99 6.9b 57.95 42.95 3.00 9.95 60.95 45.95 99.95 49.95 49.95 59.95 49.95 13.49 19.99 9.95 Other Services and Fees LateFee .............................................$ 5.00 Retumed Check Fee....--•-•• ..........................$ 20.00 �oor Collection Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20.00 Chanttel Guide Nragaaine (morrthly) . . . . . . . .. . .. . . . . . ... . . . .$ 2.85 Pay-Per-�ew .........................................varies Basic1onlyreceiver ....................................$ 2.00 Non-Basic onty receiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4.7� Remote Controi ....................................... $ .30 Ranchise fee and(or appGCable t�es mtinclueed in abnve prices. Prices subject W changa. 'MOnihy sernce fee is applleU on a per cable modem basis ++Applicable iFCUS[omer pwchases other Comcast sarnces. Certain resvictqris appy. <�oes na inGUtle wstof Ethemet device. "COnnec6ng mulfiple compuCers tp asingle cabie motlem requxes a Home LAN. �-aas-comcasr www.eomcast.com �omcast SPMN73M0 7(63 �5-15 0 f. RECEIVED SEP 18 2003 ,; . �: ; )� Installation and Service Unwired instail (wfthin 125' of existing cabie piant) . . . . . , . . . . . $ Prewiredinstall .......................................$ Additional Dutfet - at initiai instail .. . . . . . . . . . . . . . . . . . . . . . .. $ AddiGonalOuifet-separatetrip .......................... $ Relocate outlet . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . $ Up/Downgrade of addressabte setvices . . . . . . . . . . . . . . . . . . . . $ Upgrade optional services - separate trip . . . . . . .. . .... . . ... . $ �owngrade opHonal serrices - separate trip . . .. . . . . . . . . . . . . .$ VCft connection - at initlaf instail . .. . . . . . . . . . . . .. . . . . . . . . . $ VCR connedion - separate trip . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Cable Guard (Mairrtenance plan per monih) . . . . . . . . . .. . . . . . .$ Hourly service charge . . . ... .. . . . . . . . . . . . . . . . . . . . . . . . . .. $ 41.99 24.99 13.49 19.99 18.99 'i.99 15,99 9.99 5,99 12.99 2.95 27.99 Unreturned Equipmerrt Unretumed addressabfe converter . . . . . . . . . . . . . .. . . . . . . ... $ i5�.0� Unretumed digital wmerter ..... . . .... ... .. .. .. ...... . .. $300.00 UnreWmed rertwte . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.00 FCC regularoryfee mayvyy tluring Me year.Tfus pnce represents ihe f2e as of }ha prici�9, RanCnisa fea enyor applicyble taces notincluded In above prices, P�icgs subl�� diange, For cuslomers recaiang sernce thrw9h ammercis) accounis w 6u& ra�e artangamettts. some product Pricin9antloth�irRamatlonhereinmaY�ePPN. Pleasereferto}het¢rmsandc�r�Np�ydq�¢ sepatate agresmerrt. TertnsW }he separat¢ agreement wdl apply. 05 -� 5 a ; � � �OmC�St b5 / 50 ��- � ASHPAUGH & SCULCO, CPAs, PLC Cer�_i�ied Public Acccentan�s and Consultancs 3anuaxy24, 2fl05 AS1043-02 Karea .Fo�ason. Diector Office of Technology City of St Paul � 29Q City Ha11 . 15 West Kellogg Boulevazd St� Paul, MN SSIO2 SUB.TEC'I': Review of the FCC For�m 1240 of Comcast of St Paul, Inc, filed with the City of St. Paul Febxuary 27, 2004 Deat Ms. Tohnson: Ashpaugh & Scutco, CPAs, PL.0 ("A&S") wete engaged to assist the City of St Paul ("Cit�'} with the review of the FCC Fozm 1240 filed by Comcast of St Paul, Inc.. ("ComcasE"� on Febxuazy 27, 20Q4.. This lettet repoxt will addtess the steps taken in the review and otu findings.. The City submitted its initial s'equest foa iafotmation to Comcast on October I, 2004 Comoast pxovided a pattial response November 11, 2004 and supplemented it with additional aesponses. A&S xeviewed and analyzed Comcast's suppoxting data and its responses and then recalculated Comcast's FCC Form 1240 This iepoxt discusses otu findings and ouc iecommended ckanges based on the issues we have identified in the Comcast filed �CC Poxm and suppoiting infozma3ion.. Attached to this lettez repart aze: • Appendix A- idenfifies the, rates detexmined and recflnunended by A&S &om-ou� review of this filing • Appendix B- compazison of the cutrent progr�mmi�g rate with the �ate origjnally proposed by Comcast and the rate zecommended by A&S in this report; • Appendi�c C- A&S's zecalculation of ComcasYs FCC FaYm 1240; • Apgendix D- A&S's detetmination of franchise-�elated costs; • AppendiY B- A&S's deteiminatian of pxogca*r+m�ng costs and numbex of subsciibecs; � AppendiY F- Copy of the FCC Inflation Updates as of Octob� Y 3, 2064; and, • Appendix G- Copy of'the FCC Fact Sheet identifying the regulatozy fee. SUMMARY Our ieview of Comcast's filed FCC Foxm 124D identified several azeas of concein, We have changed the Txue-Up Period to match the information provided by ComcasY.. We recalculated the number of' subsesibe�s in the Tiue-ITp Paiiod.. We aisa xecatculated the proganuning cosf and copyright fees fox the True-Lip Petiod and the f'rojected Peiiod based on infozmation piovided 'm support and have zeflected these amounts in Wortcsheet 7. We xefreshed the inflation z�tes in Woxksheet 1 and in Modula C of the 1240. These changes, which will be discussed in detail below, I 133 Louisiana Avenue Suite 106 • Winter Park, FL 32789 • 4Q7645 2020 • Fax 4Q7 645 4Q70 gashpaugh@ascpascom • cscuicoQascpascom D5 -t 50 Karen Tohasan, City af St. Paui Tanuazy24, 2005 Page 2 of 6 impact the Ivtaximum Petmitted Rate {=`MPR"), Line I9 of the 1240.. Otu chan2es rerluce the MPR af Comcast's amended 1240 frozxz the filed amount of $10.599b to $8.9i21 E Including the 5A% franchise £ee, A&S's ma�um rate faz the Basic Service Tier is $9 38. FCC FOR147124fl The first step in our review was to input the RCC Foims fited by Comcast with the City into the FCC spreadsheats to genesate copies of the FCC's foxms Witli these spxeadsheet pacisages, we weie able to duplicate ComcasYs filing and the resuiting zates. We verifi� that the rates and othes components of'the previaus 1240 approved by the City were cazried ovet to tlus frling INFLAIION FACIOR Since we were making other changes to the 1240, we w�e Fequued under the FCC tules fo refresh and coxrect the inflation factors in Worksheet 1 ComcasYs catculation showed 1 66% for the fina15 months of the Txue-Up Period, We have xeduced the peraod by one month and coirected the last montk to 1.50°lo consistent with the �CC's published xates.. jSee Appendix F to this lettex repoxt.] Reflecting tl�ese changes deraeases the Aveiage Inflation Facto2 fot the Fiu�Up Petiod 2, Line C3 of the 1240, from 1.01b9 to 1 0154 Additionally, we tefreshed the inflation xate on 3 ine CS of the 1240 from 1.0166 to the ciuxent publishetl xate of 1.0323 to xeflect the latest published rate. The FCC's xules state: Liae CS Cnxrent FCC Inflafion Factor. Ente� the £actox which witl be used to caiculate the inflation segment for the Projected Pexiod.� Multiply Line C2 by the quaztexly inflation factor most recenttv reteased bv the Commission. The quaztetly inflation factor skould be ia the foim af "1" plus the in#lation fi�ue So, i# the figiue announced by the Comrnission is 3%, peifoim the multiplicat�ott with "1 03" (Emphasis added} Since we weie �aking ofher changes and coxxections fo khe 124fl, we updated this factoi to the FCC's most xecently published facto�, [See Appendix F to tIus lettet repoit ] TRUE-UP PEi2SOD The infoimation request specifically asked Comcast to piavide suppozt for each month of the Tru� iJp Period.. Comcast oniy provided data fox the period ended October 2003 even fhou� the filed 1240 claimed to be for Yhe petiod ended November 2003. Since we did not have infotmation £'or Novembe� 2003, we had to reduce the Tiue-Up Period by 1 month This will not impact Comcast in the long xun,.since Comcast can include November 2003 as in its true-np for ihe 2405 filing. Changing the Txue-Up Period impacts the 1240 and the supportiag wo�icsheets_ � Ihe MPR as de[ecmined by A&S includes (1) $ 5528 of franchise related costs as shown on Line TI1 of out I240, Appendix C to this repoct)and (2} the FCC $egulaaory Fee Comcast ee;cccluded fha regutatory fee from its 1240 and line it�nizes it s�arately on subs�ziber bi]]s. �5��5a Karen.Tohnson, Cityof Sx Paul Ianuazy 24, 2Q05 Page 3 of 6 ��Ui�ER OF SUBSCRiBERS Our review reques#ed defaited support fos tfie numbes of subsct��eis AppendiY E detaiis each o# the categozies and ous analysis of the support provided, including `Bulk" subs�ibets and subscribers that are provided free serc�ice. Ail subscn'beis receive the same programming and benefits af the frauchise as ail other subscribers, but some da not pay the same monthly fee ar any monthly fee for a multitude of Feasons_ For �ample, some of the fi subscaibers aze employees and some are related #o marketing activities. If tbey were not included in the count, a11 otiiex subsciiUers woutd be requixed to subsidize Comcast's decision ta grovide free seivice We do not believe this is appropziate and hava included employee subscribeis and commescial subscribers receiving free service in the count. Making the above changes to the subscsibes count increases the numbe� fox fhe tiue-up pe�iod from 52,929 to 54,202 as shown on Line Bl of'the 1240 (AppendiY C).. This has the efFect of reducing the MPR, PxoG�tan�� E�E2.FSE n� Cor�t�xr FEE5 Appendix E also shows oux detezmination of progcatt+ming expetises fox the Taue-Up Peziod and the Ptojected Pexiod. In response to the info2mation request, Comcast provided sappozting detail fai ptogamn�ing costs fox the Iiue-Up Peciod Ou� analysis sfiows Comcast ovez-stated pro�anuning costs for the Irue-Up Period. While this xeport does not discuss specific details of our diffeiences due to CamcasYs r�uest fox canfidentiality, in general fihe differences relate ta (1} claims of per subscriber cost when the cost was a 2ump amouut, (2) not including discounts and �edits in the pet subscziber rates, and (.3) using the wrong rates. It should be noted that we haae reviewed progcamaiing cost support data for other Comcast systems aad the infocmation provided in suppoxt of ttus Filing does ttot agcee witIi and varies mazkediy from the other data We have checked the varacity of tbe data &om other sources and have used it in defeTmining the xates in this matter, zathez than the data supplied hy Comcast for St,. Paul In addition, Appendis E caicutates copyiight fees. The catculation is based on data suppliefl by Comcast Confoiming these items to oux calculations, including the change in the ninnber of' subsciibeis, reduces the anaual extemal costs per subscxiber inclucled in Wozksheet 7 for the True- Up Period by $0.$b88 For the Projected Peiiod, the anuual reduction peF subsciiber is $0.4677. FRANCHISE-RELATED �OSIS Ftanchise-xelated costs {"FRC") ace identified in the Fozm 1240 at Line 707 of each Woiksheet '7 T`hese amounts axe suppozted by Appendis D Ihe opeLator agteed to a new 10-yeaz francliise effective Tuly 1, 1998, which has zecenfiy been extended anothez five yeats. Consistent with the franchise agreement, the operator was (and is) xequired to make payments to the City and incur 2 Comcast has requested that the specific cost information reIated to each channe2 be ireated as confdential. Foz this reason, only the total cost is shown in ouz suppocting documenis. (See Lines 27 and 28 of Appendix E} Should Comcast challenge Qur catculations and it become necessary zo p[nvide this detail, we wiit grovide a confidenriat t�ersion of this Appendix. b5-(5o Kazen Johnson, City of St Paul Januazy 24, 2Q05 Page 4 of 6 ofher costs. These are FRC� Some of the amounts are re�uired ta be one-time payments ox costs and othecs are periodic payments or costs_ In treating these costs in the F�C Form 1240s filed prior to this Filing, the operato� has ratably amortized all costs incutred over b0 months (5 yearsj regardless of whether the costs were one-time costs or periodic costs (unless tt�e costs were annuai payments in which case the entuE amovnt is isicluded in the yeaz of the payment}. The cosrect heatment should have been to amorti�e the ana time costs at Ieast over the iem�vng life of the franchise at the time the payments were made, i20 months, and amortize the peiiodic costs ove� the pesiod covered by Yhe payment, if more than one yeaz. As shown in Appendix D, otu analysis coxiects the amortizations for the T2u�Up Peiiod and #he Ptojected Peiiod to be consisfent with this keatment. The Ci ,ty's Octobei i, 24Q4 request foa infaxmation asked the following: 5 �or Waiksheet 7, please: g.. Conceining the detetmination of the amount shown on Line 707, please provide support foz: i. The amount shown in the instant filing and fox any cbauges to any of the amounts from the pxioz years' filings; u And identify the amouut of frauchise-related costs in each filing from the nutial amount set out in the FCC Fazm 120Q and each subsequent flling; and, iii.. - A.nd �p2anations of the amoxrization pexiods used fox each amount itt each filing, including the instant filing (Please note that �pianations simply stating this was the way it was done in prior filings is not acceptabie. Camcast mnst provide an explanation that suppoxts the amortization period userl for each diff�ent amount identified ) The following xesponses were pmvided by Comcast in its Ietter of Oetabex 15, 2004: i Please see Attachment #5 wtrich includes waxksheets and documentation fox the �ranchise Related Cosfs as shown on Line 707 The diffexences frnm the filing submitCed Mazch 2063 include: • New items "L" and "M" in the Pxojected section, • A new annuat PEG gant far $57,87b.36 labeied as"H", • Removai of fast years annual PfiG gants labeled "H" and "I", . Removai of last years projectec� items laheled as"N" and "O", and • Ttte adjusted xate of' retuni amouut catcutated on the remaining 3TITOT'C1Z3:I1QIl �JOIlOd. The worksheet frnm 2003 is included in this attachruent fox comparison. ri See the xespanse to g,i. above. The &anchise related costs from the prior yeazs axe not re2evant to the review of the cuxrent FCC Farm 1240 except ta C� ! 5� Karen Johnson City of St Paul Januazy 24, 2fl05 Page 5 of'6 the e�cent that these casts have been caziied into the cuirent form and have been explained herein. rii The aznoztizat�on periods were as follows: • Annual or quastez2y payments included in Worksheet 7, Line 707, have been amortized aver 12 months. Since fihese payments aze subnutted annually, and cover one yeaz, the useful iife has been identified as 12 months. • The other items inciuded in the Fsanchise Related Cost amount which are identi&ed as Annual I-Net payment puxsuant to the franclvse ageement, haue been amoztized ovex 6d months Although these aze ideutified as "annual" payments, they weze paid annually for the ftrst five yeazs of the &anchise on the anniversacy dates. These payments occuzsed pzioz to ComcasYs awnership and were nearly iecovexed • The remaining items amoitized ovei b0 months covezed PEG _ equipment. The useful life of'the equipment is five yeazs, thus a 60 � month amoxtization period is appropi'sate. A&S disagrees with Comcast chaxacterization that the Annual I-Net payments `�vere nearly recovered". At Decemtser 1 ZOQ2, the begiuuing of the Taue-Up Peciod in this 1240, the unaznortized balance of these itsms was $270,202 i5. The amortization of tlus balaace has been co�rected to �tie remainuig life of the franehise A&S also disagcees wi#h Comcast identifying the `Yemanung items" as PEG equipmen� Some of the items, speeifically "H" and ".F", aze foi equipment, but "F" and "C�' �e not specific to equipment while "K" is fox "Fibes - Implementation". The amrntization of these itezus has been coxrected to the xemaining life o# the franchise A&S also disagees with ComcasYs statement that "(t)he &ancIiise related costs from the prior yeass are not relevaut to the review of the curFent FCC Foim 1240". {See responsa `u" abave.} The pu�pose of the calcutation in the 1240 is to detexmine rhe inczemental change in FRC on a peP subsctiber bas3s. The key to this calculation is that the pxior years' 124� must be cozrect. Since Comcast did not piovide that infoxmation, the anaiyses of tl�e appxopiiateness of the ptiar yeats' amounts has not been done.. To calculate the amount af FRC p� subsc�ibet pes month included in the ?vIPR, yau would need to take the amount an Line 707 for She Piajected Petiod divided by the projected number of subscribers (shown on Line B3 of'the 1240) divided by 12 Ihis calculation detetmines a monthly per subscriber cost of $0..5528.. If' Comcast itemizes FRC on subscxiber's biZls, this is Yhe amount that should be showa FCC IZEGULAIORY FEE Comcast has failed to include the FCC Regulatozy Fee on Line '708 of Worlcsheet 7. Oux analysis conects this. In osder to be consistent, it was also necessary to add the FCC Regulatory Fee to the amounts in Woii�sheet 8 Appendix G shows the amount r�uued for the months of the Tine-Up 05 -t 50 Kazen.Tohnson, City of St. Paui Tanuary 24, 20Q5 Page 6 af 6 Period ($ bfi pei subsciiber for t�e 12 months ended Septembei 2t303 and $.70 per subsc7ib� for the 12 montfis ended Septeruber 2004}. CONCLlSIO� As indicated above, the aesutting MPR from ouc chaages is $8.9121, wbich zounds to $8,91. We aecovi7nend the City: (i} reject the filing of Comcast; (ri} adopt A&S's 1240, which is attaclied as Appendix C to this lettez repart; and (iii} approve the MPR of $8 9121 as zecalculated by A&S. In the ordez, tf�e City should state that if auy infozmation shoutd become known in the futzue which would impact these aates, tUe City may tevisit this deczsion The City should fiuther state that (1) t�is avnount includes tlie FCC Regulatory Fee and (2} this is the maYimum rate allowed fox the Basic Service Tiet under the FCC's zules.. ff you have any questions or xequue any fuxthes infoxmation, please let me know. Very kuly yours, ASHPAUGH & SCITLCQ, CPAs, PLC __� � �� ' - �c.r��, Gacth I Ashpaugh, CPA�� Pxesident and Membet Cc: Lisa Veith, Esquue, CiryAitorney Ioseph Van Eaton, Esquue,lVIilleF & Van Eaton, PLLC Enctosure zooa izao tc�porc Q5-15 p APPENDIX A O� -/50 r�7��►�u�i� ST. PAUL, NIINN'ESOTA COMCASI OF ST PAU�L, EI3C REV�W OF 2�04 FCC FOR.vI 1240 RECOiJ�1VI�NI?ED I2ATE5 Recommended Rates Rates Recommended Inctuding Line For �ranchise Franchise I�TO. I e of' Seivice Appioval Fees Fees of' S.00% Monthlv Rate 1 Masimum Petmitted Rate - Basic Iiei $891 $0.47 $938 c�5 �( 5'O �� . : � � �! � �1 � O N � � ,.S � � w a � � w � � H N � w Q O U� U � � �"i O z Y�Y � d' F � W � Q W � O � C�a � � � Q a w � U � U E�-� � c� � U w O z 0 � � o. � O U 0 > 'c � � � v � � e m � � u � N w �i � � J 'v? � A � cy v N � � � 1� U � � � F� � N O p � �y ❑ � .^ rn N � 4�'.._ d {� � 6�4 �G !''-� A �' Li � m C t/] � u l-. � a " � 4 0 �" � e � � � .:. � � a o � v� °—' o vo � m � ,�`} U fK w Fn w N � � M U � v � V3 C � � � � N a�+ � � � ~ �. h � � � v R ,U i � � ^ h N � w 4 U ,°.3 � � � � �� vj� .T Y' w t2 w cr� � � au � ° cu ro � c. � ¢ � a v � � x _ � � � � q � o � e o C. V. � ..r o U � � � � � m �� d 0 � e� � � x w, �, � U ss. � F R 3� q R d V � H � � �� O � � v ° -z � � Q5�50 N N d � a D5-1 5b a�P�� c 05-15d Fedetal Commuaica�ons Commissioa Washingtoq I7C 20554 Approved by OMS 3060-0685 FCC FOR�I 1240 UPDAII�i "G MA<I�l'i ILM PERNIIIIED R 17ES FORREGULATED CABLE SEd2VICFS Cable Operatoz: YES NO 1. Dces this #'ileng involve a siagIe franchise anthoiity aad a singte community uait? ��—, li yes, comple[e the tianchise authoTrty inTbrmatzon beiow and enter the associated CUID number here: . � MN0424 YES NO 2.. Does this filing involve a single franchise autHoriry but muttipfe community aniYs? �—�� Sf yes, enter the essociated CTJIDs betow and complete the francHise autho�ity infoimation at the bottom of fhis page: 3. Does this fxling involve muliiple fiaachise suthoiities? NO Sf yes, attach a sepazate sheet for each franchise authrnity and include the following fianchise authoiity infotmation with its associated CUID{s): Fignc6ise Authoxify Iniormation: 4. Fot what purpose is this Fotm 1240 being fiied? Please pat an "X" in the appx�opt iate box. a. Oiiginal Form 1240 fo� Basic iia b AmendedForm i2A0 forBasic Iier c 6riginal Fotm 1240 £oi CPS Tier d Amended Fam 1240 foi CPS Iia� 5.. Indicate the oae year Elme period foe which yoa are setfing iafes (Yfie Ptojected Pecio��. 6. Indicate the time pexiod #oi wLich you are pecfoxming a ttvrup. 5tafus of Previoas Filiag of FCC Focm 224D (enter an "x" in the approgziate box) X I'O �01/(A4 65{31(05 TO 13101lQ2 11f30Po3 YES NO a Is this the first FCC Form I240 fited in any jurisdiction? - g b Has an FCC Form 1240 beeo fiied previovsly with the FCC? g If yes, enter the date of tFie most recent filing:� (mm/dd/yy) YES NO c Has an FCC Form t240 been Sled previovsly with fhe Franchising Autho=ity? � X If'yes, ente� the date of the most recent fIing: OZ(Z6J03 (mm(ddlyyJ ��YY) (mm/yy} FCC foim 1240 Page 1 � Micrasoft Exce] 5 0 Vesion July 7996 Federa] Commuaicahons Commission Washington, DC 20554 8. Starns of'Previous Filiag of PCC Form 1210 (entei an "x" in #Le appivpxiate box) �5 - 15a Approved 6y OM$ 3060A685 YES iv0 a Has an FCC Foan 2210 heen previously fr2ed with the FCC? g It yes, entet tbe date o£the most recent Sling. I2/01l95 (mm/dd/yy} YES NO b Has an FCC Form 121 Q been previously filed with the Franchismg Auifiozity? X Lt yes, entec the date of the most recent fli ing: 11/18l99 (mm/ddlyy} Sta#us of FCC Focm 1200 FiSing (eaier an "s" iu ffie apgx�opxiate box) a Has an FCC Form 1206 berm previously filed with the FCC? YES 134 X I#"yes, enter the date fi1ed: �(mmlddiyy) YES NO b Has an FCC Form 1200 been previously filed with Fhe Franchising Authoxity7 � If yes, ente� the date filed: 08114/94 (mmJddJyy) IU. Csble Programming Seivices CompEainY Status (entei� an "x" in the appropciate box) YES NO a Is this form being fied in response to an FCC Form 329 complaint? g If'yes, enter the date of the complaint: �� (mm/dd/yy) YES NO 17. Cs FCC Eorm 12fl5 Being Inclnded With Ihis Filing �r�� 12 Selection of "Going Foiward° Channel Addition Mefhodology (eutet sn "s" in the appropriate box) OCheck here if you axe using the original ruies (MARKUP MEIHOD} �Check here if you aze using the new, altecaarive ncles [CAPS MEIHOD] If using the CAPS ME7HOD, have you elected to revise recovery fm channels addcd chuing the period May 15, i944 fo Dec. 31, I994? YES NO � X L3. Headend Upgrade Methodology *N07� OperaMrs must cer8fy to the Cammission theu e[igibility to ute th'tc upgrade metAodalogy and ¢tt¢ch an egraipment lis[ pnd deprecia8on schedule. �Checfc here if'you aze a qaalifying small syscem using the s4reamlined headend upgrade methodology Part I: Preliminarv Informatian Module A: M�imum Peimitted Rate Fcom Previous Ftling a b c escription Basic Iier2 Tie:3 C�mcnt Maximum Pemtiried Rate Avernge Snbscn'bership Foi Tme-LSp Period 1 Average Su6scriberslrip ForTrue-Up Periad 2 Fstimated Average Subscnl�ecsMp Foc Pmjected Period Unc3aimed Inflation: Qperator SwiTChing Fmm IZ10 To 1240 Uuelaimed Inflation: Unregul Ope R esp o ading to R ate CompI inflation Factor For Tma P eriod I [Wl� 1] Inflation Factot Frn Tme�Up Pe riod 2[Wk 1] C¢ireat FCC Infletlon Factoi $10A734� ubscxibershin b ;ie 7iex 2 54,2U2 54,744 e Iier 5 FCC Fotm 1240 Page 2 Mictosaft Ecce15.0 Vetsion 7uiy 1996 Fed�at Com�mmiGations CommiSSion w�n;�e��, nc Zoss� Madute Ds Calcnlatinr the Base Rate a Ctiment Heade Vpgiade S eg m e u i Ciurent taterffit CosS Segmeat Cunent Markvp.�tahod Segn�t Ctn:ent C}tauael Moveatent 2xtd Deletion Se$ment Current Tmriip Segmeut Ctarent inflation Segroea�t Base Rate [Ai-Dl-D2-D3-D4-DS-D6-D71 SQ.0�00 523166 SO.Q006 �.W� $Q.DODO $1.7617 $01048 $5.5903 Pa�-t IL• True-U� Periad - Module E: Timina Information W6at Type of TrnaUp Is Beian Per (Answer "I",'2", ox "3°. See Snstructio�s f a description o£tk� If "1", go io Modale L If "2", answec E2 aad E3. If "3", answes E2, F3, E4, aud E5. Numbec ofMouiLS in the Ttue-Up Peaad L Number of MontLs b tLe end of Tn2�Ug Pedod ] and the e of tLe most rece P rojected Perio Number of MonYIis ia True-Up Period 2 IIigble fot interest Number of Montbs Tnte-Up Petiod 2 In fos Inte mst c Iier 3 J5�15� Anproved by OMB 3060-0685 e IierS I 1YIodule F: NFa�um Permitted Rate For Txue-T3 Period 1 s b c d e Line 1-iue 9escription Basic 7ier 2 iicr 3 Iier 3 lier 5 F7 Caps Method Segment Fot True-Up Perio& 1[Wics 2] � $O,fl000 F2 Mazkup Method Se�eui Fot Tne�Up Petiod 1[Wks 3j $0.�00 F3 Chaa Mvmnt Deleln Segment ForTrue-Up Period I[1Vks' 4/5] � � F4 Tme-Up Period 1 Rate E7igible Fa Inflarion (BS+F1+F2rF3} $5.8903 FS [nflatioe Segmelrt for Tma-Up Period 1[(F4'C3)-F4] $D.0905 F6 Heailend Upgxade 3egment for Srue Up Puiod t[Wks 6j F7 Eciema7 Costs Seginent Fot Tmo-Up Period 1[Wks 7j $2.1924 . F8 True-Up Segnent Foc Tme-Up Period 1 37.7619 P9 Mac Pexm Rate forTiue-Up Period 1{F4+FS+Fb+F7-�-F&] $9.4351 Module G: Maximum Pex�mitted Rate Foc Trae-U Pexiod 2 a d � a e Line Line Descripfion Basic Iier 2 7ier 3 Iier 4 Iiei 5 Gl Caps MeNmd Segment ForTme-Up Period 2 jWks 2} GZ Markup Method Segment Foc Tme-Up Period 2[Wks 3] G3 S;hanMvm}rtDelefiSegmcMFo:1'xue-LipPeriod2[VJks'4f5] G4 TU Pe+iod 2lZate Eiigi'61e For Iatlarion [DS+FS+G1-r-G2kG3] ._ GS infladoa Segm�t forTme-Up Period 2[(G4*C4}G4J G6 Headend Upgrnde Segment For Tme-Up Period 2{V.+ks 6j G7 FatetaatCostsSegnentForTxuo-UpPeriod2[Wks'7� GS Tme-Up Segment ForTrue-Up Period 2 G9 Max Peem Rate for 2nxe-Up Peaod 2[G4+GStG6+G7+('i8j �CC Foim t24Q Page 3 Mictosoft F�cel 5 0 Veision 7viy 1996 F� ca��ao� co�� Waskrington, DC 20554 05 / 5d Appmved by 4MB 3060-0685 Module H: True-Up Adjustment Calculafion a b c d e Liae Line Descriptio¢ Basic iie� 2 I ier 3 iier 4 2iet 5 Adjustme¢i Por True-Up Period 1 ffi RevenueFmmPeaodl 4,SQ8,S37.90 H2 Reveaae From Mae Perznitted Rate for Period 1 5,923,46625 Fi3 Tme-Up Period 1 Adjastmea[ [fI2-Hl] 31,114,62835 H4 Jntaes[onPeriod I Adjustrnent 5112,41528 AdjustmeatFor Tru�Up Period 2 HS Revenue F�am Period 2 Eli�ble for7nteres7 H6 &evemie From Mu Pean Rate fo� Pedod 2 E7igible Foz Inteiest H7 Pe�iod 2 Azljustme� fligble Foc Imerest [EI6-HS] HS Itttelest on Period 2 Adjusbneut (See instructions fox formula) � H9 Revenue Fcom Period 2 ineligbte for Interest . Hi6 Revenue Pmm Maz Peim Rate £or Period 21neligs'hIe for Intei Hl l Period 2 Adj3vsiment Ineligible Foi Inteiest [H10.H9j Total Trn�flp Adjastmeui HI2 Previous Remaining Tn�e-Up Adjuspnent H13 ToW "Crue-Up Adjushneni jH3+$4+H7+HS+H11+H12] $1,227,04},63 Si14 Amouato£True-UpC7aimedFoil7vsPmjectedPeciod $1,227,043.63 HIS RertwiningTme-UpAdjudment[H13-H14] 50.00 Part III: Proiected Period CextificaYion Statement WILLFUL FAL SE STAIEMENSS MADE ON IHIS FORM ARE PUNZSf3ABLE BY FfNE AND/dR IMPRISONMENI tU S. CODE ICTLE f8. SECIION 1001}_ AN➢IOR FORFEITUR£ tU S- CODE. II7LE 47. SECF�ION 563) SignaNre Date F'ilia Si ed $ Jeffre S. Ossowski 2/18/2Q04 Name and 7ifle of'Person Compiering this Form: Seffrey Ossowski, V3. Finance MidWest Division Pelephone nvmber FaY Nvmbet Sharoa Wierek 248.233.4'740 FCC Foan t240 Page4 MicrosoBEzceIS.Q Vetsioa July 1946 No1e. The m¢cimum permttted raEe fsgures do noi 14ke into acrou�t any refu»d Fiab'tliry yoa may have If you hme previously been Ordered by !he Commission or your Focal franchising muhoriry to make refunds you are no! re7ieved of yow oblfgatiox ta make n<ch r�efimds es��en ifEhe peimitied rate is htgher tfian the contested rate or your ewrettt rtite � Fuiemi Communicatiom, Commisrion W.ashingtoq P,C 2U554 Worksheet 1- True-Up Period Inflation Fo� instxucfions, see Appendix A of Snsnuctions Frn FCC Form 124Q Leae Period FCCIuflafionFactot 101 Month 1 i,78'/0 IO2 Mont(t2 239% 163 MonGh 3 239% 104 Monifi4 239% 105 MoarL 5 i.00% 106 Montkb I.pOo/ ]07 MonEU 7 3.06% 108 Month S 1.66% 109 Moath 9 1.66% it0 MonthlQ 1.66% I I t Month 11 I.50% 132 Momit 12 Average Inflation Factorfor 113 Trne-Up Period 1 1 OY 54 114 Mon[h 13 I I S Month 14 116 Montfi I S 1 i l Month 16 11$ Month 17 119 MontL IS � 120 Momh 39 121 Month 20 122 MoxuPe21 123 Moath 22 ]24 Moaih23 � 125 Month24 126 AveragelnffationFactorfox Tive-Ug Period 2 05-�5� Approved By pMg 3060-0655 Dec-02 Ian-03 Feb03 Mao-03 Apr-D3 May-03 Sun-03 7v1-03 Aug-03 Sep-03 Oct-03 Nov-p3 FCC Foan 124D Page 1 Microsoft Bxcet 5 0 Yersion Suly 1996 Fede`at Commuvications Coimmssion F7ashiagtcn, DC 20554 Wox•ksheet 2 - Caps Methad True-Up Period, Basic Tier For insuuctions, see Appendix A of Insnvctions Frn FCC Form 1246 Question I Tndicate the period foi which this worksheet is being used (Put an "X" in the appmpriate box j Approv � OM �3060-Q685 Icue�UpPerind � Period X tjacsrioa 2 Indicaze the tiet for which this worksLeet is beina used (Put an "X" in ihe appropxiaie }:ox ) Basic Tier 2 Tia 3 Tier 4 Tier 5 X Question 3 Hnw ]ang is ihe fixst period, in montkss,£orwhich tates aze beeng set witu tivs woikshe�? Il QuesKioa 4 How long is fhe second period, in months,for which rates aze beiny set with llds wodcsHeet? 0 FCC Fumi 12A0 Page I Microsoft Exce15 0 Version Ju(y 1946 Fed: ml Communications Commission Washingion, DC 20554 Worksheet 2 - Caps Methad Projected Period, Basic Tier For mstruc�on� see Append� A of"1nsRuctioas For FCC Form 1240 05 -! 5p Appmved By OM$ 306p-p685 . Frne-Up Ptojected - Paiod Period Quesiion F Indicate Ehe period Fox which this wodcsheet is being used (Put an 'x" in the apgropriate box ) Queriion 2 Iadicate ihe riec for which t6is �xoiicsheet is being vsed (Put an'•X" in the aPpropriate bos ) Basic Tier2 Ticr3 Tier4 TierS X Question 3 How long is the fint period, in moaifis,foi wlvch rztes are being set with. tivs wod6heet) IZ Qucition 4 fiow Iong is ifie second period, in moaths,foi which races ere 6eing set with this worksheec? p Pa e 1 FCC Form 1240 8 Microso8 Exce15 0 Version Ju]y f99fi Federa7 Coaunuuications Commission Washington, ➢C 20554 Worksheet 3 - �l�Iarkup Method True-Up Periocl, Basic Tier Foc inshoct�ons, see Appeadix A ot Instcuctions Foi FCC Foxm 1240 Quesrion I Fndicate the period fni wluch dvs wotksLeet is beiag used- {Put aa "X" in ihe apgmpriate box ) 05-l50 Apgroved By OMB 3060-0685 Ime-UpPea Proja:tedPeriod ' X QuestiQn 2 IndicaTe the tia for which ttis worksheet is bei�,v used (Put an "X" in the appropriazebox.) Basic Tier2 Tier3 Tier4 TierS X Question 3 Aow loag is Ehe fits[ period, iamoatfis, £o� which retes are bemg set vrith tLis worksheet? Il Quesfion 4 How long is the setoud period, iu morn6s, for wMch rates are being set with this worksheet? FCC Form 1240 Fage I Microso& Exce15 0 Versioa Juty 4996 Fzde�al Communications Conmilssion W.asSingten, AC 26554 Worksheet 3 - Markup Method Projec�ed Period, Basic Tier Far inshuctions, see Appeadiz A of 7nshssctions fai FCC Fom� I240 Question I tndicate tt�e period for wluch this woiksLeeY is bemg used (P�t an "X" in the appropriafe box ) b5-�5o Approved By O?yIB 3060.6b85 Imr L'p Pert Projeci� Period X Question 2]ndicate xhe tie[ fot wLich ihis woi3csheet is being used (Put aa' X" ia rhe appropnate 6ox ) Basic T;a2 Tier3 Tier4 TiuS x Question 3 How long is ehe first period, in months, for which mtes are being set with tLis worksheet? 12 Qua-tion 4 How Iona is the secoad peiiod, in movtbs, for which rates are being set with fhis woxksheet? p FCC Foim 124� Page 1 Mictosoft Ezce15 0 Veision July 1946 Federal Commuvications f.ommission Wastilngroa, DC 20554 IABLE A NON-EXIERNAL COSi ADJCiSSMELVT FOR CHANCsES IlV CfIANNELS d5-i5b Appmved By OMB 3Q50-0685 FCC Form 7240 Page 6 Microsoft Exce15.0 Vecsioa July 1946 Fedemi Commvnications Commission WashingtoP, DC 20554 Workshee# 4 - ResidaaI True-Up Period For instructions, see Appendix A of inskuc[ions Foi FCC Fotm 1240 Question i Indicaee the period forwlricfi tivs worksheet is beine used (Pur an"X" in the appmpriate 6ox ) va....a n.o 05 -150 Approved By OMB 306D-0685 Inie(L7pPeriod ProjectedPeriod X OI Avernge Pem�iaed Chazge S8 06ib 402 Average Fxtemal Costs $2 I924 � AverageTotalPerCUannelAdjustmentsafter5114/94 $6 for C4amieEs Added Usin Ca Method 4Q4 Avemge Iiet Residual [401-4021l03] $S 8731 405 Average Chammtls pec Regulated iiet 28 OOOQ 4fl6 Average Caps Mefhod C7�annets pet 7ier � 0 QOOQ 407 Avetage Remainireg C3�u�neis [405-006] 2$ 0000 08 Averege Period 1 Pes Channel Residual [404J40'T} $62098 69 AveragePZtxniriedCharge 4I0 � Averege Extema] Costs 411 Avemge Total PerChamie} rldjusbuents after 5{IM94 for C6aanek Added Usin Ca Method 12 AverageIierRes�duatj409-0la-dtl] 4t3 Average Cl�anve]s perRegulated Tier 74 AvexageCapsMethoBCLaeme}specIier 15 Average Remaining Channels [4i3-014] 416 Averaee Period 2 Per Chamiel Residual [4127415] FCC Fomi I240 Page 1 ARicrosoft Excel 5 0 Vetsio¢ Iuly 1996 Fedetal Communicaiiom Covmaission Washingcon, DC 2DSJ4 Worksheet 5- Channel Movemant and Deletion Trne-Up Periorl, Basic Tier For inmactions, see _4ppe�dix A of Sastructions Foi FCC Fo� 1240 05-150 Appmved By OTvIB 3fl60-058$ Questioa ] I�icaSe the period for which tl�is worksheet is beins vsed (Put an"X" in the appropriate box.} True-Up Period Ptojeeted Period X Ques4on 2. Indicate the ria fox w7uch tlds worksheet is beine used. fPut an "X" in tLe a�moria[e box.l FCCFomt1240 Aage 1 MicrowftFxcelS 6 Vetsiov Itety 1996 Question 3 How tong is the fi�st period, in months, for wfiich mtes are beivg set with dvs woxicsheu? � ll Ques+ion 4. How long is the secand period, in montUs, for which rates aze bemg set with this wodcsheet? Fedexal Commuaica&ons Commission Washingtan, DC 26554 Worksheet 5- Channei Movement and Deletion Projected Period, Basic Tier Foi iaswc6oas, see Appendix A ot"Instructions foi FCC Foan 1240 05 -l5a Approved Ey OMB 3060-0685 Q¢estion] IndicatetheperiodforwItichthiswmicsheetisbeineused (Putan'x^iatheagpmpaytebox) � Txue-t7pPeriod ProjectedPeriod X Question 2. Iralicate iLe 5er fox which Uvs workshee[ is being uced. (Put aa "X" in ihe appropriate box.) FCCFomi1240 Page 1 MicrosoftE:cce150 Vexsion Suig ]996 Question 3 How ioag is the fe[stpeciod, in months, for whicfi retes are being sei with this wo:ksheet? 12 Qucstion 4 How long is the second periad, in months, Foi wluch xates are being set with this worksheet? p rJ5-15 a Fede�a] Commnniptions Commisriou VJashina o4 DC 20554 Worksheet 7 - Egternal Costs True-Up F'eriod Foi instn�ctiovs, see Appendix A oflnshucaons For FCC Form 1240 Quesfton I- Fox w1ilcL tmte period aze you Slling oat ttis worksheet? jPui an �" in the appropiiate box ] QueStion 2 How Iong is ffie &rsi period, ia months, foz which mtes ae bcing set with tius warksheet? Question 3 How long is the second period, in moatAs, foi whicfi tates aze being set with ttis worksheet? 771 to 5/ISJ94 or After 5115/94 Using Msrkup 12 Rehansmission Coasent Fees For Period 713 Cnpyright Fees Fox Period 7l4 Extema] CosGs Eligible For7.5% Markup 715 Mazked I3p External Costs External Costs Not Eligibte for Marki 7f6 CableSpec T17 PraacLiseRelatedCOStsFOrPeriod ']8 Con¢nission Reeulatorv Fees For Period Z � Monihly, Per�uinc$bec Extemal Costs Foc Period 2 Approved By OMB 3064-0685 7me-Up Peciod Projected Period X il ECC Fottn 124a Page 1 Microsoft Excei 5 p Version July 1996 �Line LineDescrioSon . _ Basic Iier2 Tier 3 Tier 4 Tiei 5 � Federal Communications Commission Washington, DC 20554 R'orksheet 7 - Egternai Costs Projected Period Fox iastcuctions, see Appendu A of Instrucfions Foi FCC Foan f240 Quesfion 1 Fos wI$ch timeperiod areyou fi11ia3 out this worksheet? [Put an "X" m the appropriate box ] Question 2 How Iong is the fust period, in montLs, fo: which cazes aze heing set witl� ihis worksheet? Quesaoa 3 How long is the second period, in mont[vs_ fox wlxich mtes are being set with this workshe�? �5" 150 Approved By OMB 3066-0685 Imalip Periad Pzojected Peliod X I2 Q - FCC Fornt L240 Page2 Microso$Exce150 Vasion Jaly 1996 �L�°e LineDescrin5on Basic _ Iiei�2 37er3 7ier4 Iier5 � Feaerat coumrunications coa,mission Washiae cq DC 20554 Worksheet 8- True-Up Rate Charged Foi instrusiiovs, see Appcndix A of Insvuclloas Frn FCC Form 1240 Quesfion 1 Aow Iong is the Imatip Period 1, mmom6s? Quesiian 2. How long is �he ilue-Up Periad 2, in months? d5 � 5a Approved $y OMB 30b6-0685 }2 a 6 c d e Liae LiaeDesc[ipfioo - Basic Iier2 7iu�3 Iiei4 IierS 8Q2 Dec-02 58.0650 802 San-03 $8.06i0 803 FebA3 S8,D650 804 Maz-03 SSA65a 805 Apr-03 $8.0650 806 May-03 $8.6650 807 Jun-03 $8.0650 - 808 Iut-03 $5.0656 $09 Aug-03 $8.0659 810 Sep-03 $8.0650 811 Oct-03 $S.Db83 812 Nov-�3 SS.p683 8] 3 Period 1 Avenge Raie $8.0656 814 Feb-00 875 Maz-00 816 Apr-00 817 May-00 818 3un-00 819 !ut-00 820 Aug-00 S21 Scp-0Q 822 Oc400 $23 Nov-OQ 824 Dec-00 825 1an-01 826 Period 2 Averagc Rate FCCFOmif240 Page 1 Microsoft Fxcel 5 Q Vasioa 3uly 1446 05-�� ArrEtvnzx D � X Z C1 d � � m z � o U �" R s Y U v �I � �, [ m [�� N C" N J � - � N O O O � U .m },�y O >+ V m '° > � a 0 0 .:i y 0 � 0 � W � � r`� E ° +n�.-. ,�. ao m o� a� o a m w"'" °` m v, ,� � d v, �5' .J m o v� .-; �o c o c . - c y o N> N^[y 1� t� �p e/j O h C L�' N N � O N O 6� 2`� N a+f N N O� '�/1 � M �� rym�.noo�; _>. cvo ^'� <' O�n N h cV ' N N h N� "�'A f. � C... �a �v N M N!{ M W 00 � W {� ' � + = �y F O`�� vf -+ o e' o 0 0 0 o N W c0 �� OY�4l �O vf O W O O O O O Nf N J� O�� C l� O C O O O O�� yc.. �,c�.o� w r p O _ V'�:� N C-0 O « � _ e+f a+� G1 � ' O G e�f V!y C CT O C O O O O O� ++ O N e'1 �S h O W C O O O O O v> p O e�i C N V'� O O C C C o O < Gi �"� Y� .C�. M � C W N 1� � z o v" c" o0 �n �nv c � �o rv n m G �n�o �c� �.o.o.. v0000�.n o 2 a v;Very vs .enm <o 00 �o y f.. 3 ea —�io ci �� a� �ri oi o � c� o � oi � i N.2'�EL� < O V� h N e� N N O G 00�'TNh �VNf�[9000L�v y '� ��+.'�,Y-50 N N h Gi C N CS N M O l� L . ' N-. ^:F_E N N CV V'i O N o] W%^ a�1 Oa V =' U G � N N N N VI V� y N N Vl Y1 M T � � U O ^� (V � .-�. � � .. .�. .�.. . ..�. . .-Ni [V ` � w L � O O G O O O O O O O O O O O N Q O C C+ � a C O � u+ d !^ N N N N h N N N N N N N N SY...7v' _.J.-.. .,�_._.+�.. a� �C � o F a � a ma m o ��envv"'i <�n�� Ne $ � o m S � ° ° m d e a� E � 0 9 � v e �' �� 0 O O O O O O O N^ � N N O O L V' b �O �G �O �➢ �O ... V �D a N o o p�, � a N Q N Yt �O N V M O M ll O M O? N 1� � O Ci G^O,wa v� �� N» :: e� ,.. o v� o" vi ` .: .. �ro-•-.nv� eo a �np ... p � a� c�-. rN �n o000 000rn N h Y N h eT T O O O O O O C� Vt „`Q c � 00�60�: N vi o00000 �dri O S! i r' M vf P S h C� O o a nrn.c�mrn �-;or A = m m n Y N N<^ . O b ¢ � @ N O r O O r� M O�� N e�f N cV O W� O p b m N v S W 1� m O O O h � U O ?� p [� t� N.: m m vi e'� O O O O .�-. .+ vt V�f ��.J, r N b� Q O P1 � � �7�� o m d �� Q d d 4�� UC7 d U OUC� � v y q �W av'yc, cd ¢ Q Q-� a, >, a, y 3 c ,c ��R�� z z z z z w =___= z a ��.¢aaaa_w € 0 � a a o 0 0� o 0 0 0 0 0 o � u �°ooN ��°. o en�ti°'-,"'vo m � �r� nt�nw ivv�im.�.��o g o O O O O O O O O O O�+ O O �� O � U � V � c �QtOG� W¢ O�: N=ta� �� o eL.. �' F �Z � O G � �^ N d' ^ b y ca d - <v�� v�n�et�mrn .i F � �5 5e� w O d 4 Q +� G U G Q N « z s o ' U w° a � w o � O ,�' (,,,'{ N ,y' N V � M @ o � `� O � � m M O � U � � d L� 0 +:� � e 8 0 .w O O a 0. � f"� [�s� 0 a � 'S1.5` N N N r h N Q� t1 v1 N N C[ N ,»`n l� a � CI %4'Y OJ t'f l� m t': b b M�O c0 O� M 2 _ d . 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O` 1� N ^ O�`i o V' N q � 4 n N� N v1 y N N V � � u � p � cs Gt O �� O� N N � V�� N y � �' l =� � N T VY N O � N > W '��. � h � � v � � O �O z � � � � a < c -� a " N O L = G U j O � a� b � v w � w 7 C iL `y � (qw t � � 2 �. e � G x � � v`�i � � 5 3 0 �, y � q� c 2 �>n � �� g . o w o E R1 m e . m� w n ¢ < � e m mU �w� ` m W Rl o � S E e � m m m� � ' °-�� m m m, y c s� c� � U e q E 3 c> � u �� 3� 3¢� L s " o� m a 5 C�i Q Ey' _. �"o W W K d a° Sv � 00.l , � y � pjU��y 8 F aZP� � dc�� a om- U��ez>> „`¢'��« �zao<- 8 �i6�"��.o a "QoY°'�� a ` p'°�UW> m3 p C93tG m..l F U 0]E+ mtlm.] W¢t[�¢I F.-1 F -Fr o�+�+FUF E C z �� p h � C ' m Q �++ ��+�� N N N N N N N N M � 05 � 5� 0 t�U 0. 05-15 0 �� 05 — 15c� � 5�5' Y� - P�BLIC NOTICE FEDERAI, CO'.tifMCTl�SICAIIONS CO_�IMISSION 44512IH STREEI, S.W_ WASHLNGI'ON, D.C. 2g554 DA 04-3238 Newsmediairtfommdon202/4t&-0500 Farz-On-Dertrmtd 20?J418-2830 Intemet htFplhvww£ccgov flpfccgov MEDIA BUltEAU ACTION October I3, 20�4 INFLATIOlV AD3USTMENT FIGURES F`012 CASLE OPERATORS USING FCC FOR�VIS 1210 ANA 1240 NOW AVA.II�ABLE Pursaant to 47 C.F..R § 76,922(d)(2) and § 75 922(e)(2) of the Comxnission's xules, cable operatoxs may adjust the non-e�einal cost goition of t1ie� xates fox inflation. Opeiatois fcling FCC Foim 1210, may make an annual adjustment basefl on inflation occusaing from .June 30 0#' the pxevious yeas Yo June 30 of the yeaz� in which the inflation adjustment is made.. Opesators filing FCC Foxm 1240, may make an adjustment based on quarterly figues All adjustments �e based on chattges in the Gross National I�oduct Pxice Index (GNP-PI) as pubfished by the �Tnited States Bepailment of' Commerce, Bureau of Economic Analysis (BEA}. The 1Vledia $ureau obtained the chain-type pxice indexes $om the $EA news �elease dated Septembez 29, 2004 (BEA 04-45). FCC Fociu 2210 7he infla#ion factor foz the twelve months ended .Tune 30, 2004 is 1 0226. Opei ators that wish to take this year's inflation adjustment using FCC Foxm 1210 should entex the fiaure "1.0226" on Lines 35 aad .35 of'the foxm. Ihis year's inflatiott adjustment factor is calculated by dividing second quaztei 2Q04_ GNP-PI {108.164) by the second quazter 2003 GNP-PI (105..772} � Opexatoxs may take this yeaz's inflation adjushnent befween Octobez i, 2004 and August 31, 2005 FCC Forw 1240 Ihe second quattex of 2004 inflatioa factoi foi opeiators using FCC Fotm 1240 is 1,0323. The inflation adjustment factor is calculated by divfding the GNP-PI foi the second qnaztex of' 2004 (108.164) by tbe GNP-PI for the fust quarter of 2004 (1fl7.308j. The result af'this caIculation is conver€ed from a quazteily change measurement factoi to an annual change measiuement factot by xaising i# to the fouath powei . Opeiatois calculating the Inflation Factox foz a Ixue-17p Peiiod which includes some postion o#' the second quaxtet of 2004 shauld entex tt�e inflation factor on the appiopFiate liues of� Worksheet 1 of FCC Fozm 1240 as "0.0323" Opeiators using this faetor for calculating the Pzojected � In 7uiy 2004, BEA revised its quaiterly and annual GNP-PI for the previous three yeazs 05 � 50 Pe�iod Inffation Segment of FCC Foim I240 should enter this number on Line C3 (.January 1996 version), ot Line C5 (3uly 1946 version) as "1.0323". Io date, the Canuuission has released tivzty-siY quarteriy inf2ation factors fo2 nse with �CC Form 1240.. IIze foIlowing table 2ists these factors: Y'ear Qnarter ➢ates �ovei•ed Inflaiio� Factor 1995 Third 7ut. 1, i995 - Sep 30,1995 2 22°l0 5995 Foiuth Oct.1.1995-Dec.31.1995 �.22% 199b Fust Jan 1, 1946 - Maz. 31, 1996 2.34°l0 1996 Second Apr 1, 1996-.Jtm..30, 1996 2.22% 1946 Ihird Tul.. 1,199b - Sep.. 3Q,1996 2.21%a 1996 Fourth Qct 1 199b - Dec. 31 1996 1.83% 1997 First 7an 1, 1997 - Mar, 31, 1997 2 70% 1997 Second Api. 1,1997 -.Jun 30, 1947 1_77% 1997 Ihix'd 7u1 1, 1997 - Sep. 30, 1997 I..43% 1997 Fo�th Oct.l 1997-Dec.31.1997 1.43°l0 1998 Fust Jan. 1, 1998 - Mar. 31, 1998 1..14% 1948 Second Apx 1, 1948 - Jun. 30,1498 0..82% 1998 Ihird Jui.. 1, 1998 - Sep.. 30,1998 1,00% 1998 Fotu2h Oct I 1998 - Dec. 31 1998 0 78% 1949 �irst 72tt. 1,1999 - Mar.. 31 1999 1 60°l0 1499 Second Apx., 1, 1999-.Jun.3d, 1999 1 35% 1994 Third Iul.. l, I499 - Sep 3Q, 1499 1.04°!0 1999 Foiutk Oct. 1.1999 - Dec. 31 1999 1 46% 20Q0 Fust Jan� I, 2Q4Q - Maz . 31, ZOQO 3..00% . 2000 Second Apr.. 1, 2DOt} -.Tun. 3Q, 2400 2..40% 2000 Ihird Jul 1, 2000 - Sep,. 30, 2{}00 1..62% 2000 Fourth Oct 1 2000-Bec.3I.2000 1.99% 2001 F'iist 7au. 1, Z001 -M2r 33, 2001 323% 2001 Second Apr. 1, 2001- Jtm,. 30, 2001 2 08% 2001 Thix'd 3u1. 1, 2001- Sep. 30, 2001 225% 2001 Foutth Oct. 1, 20Q1-Dee. 31.2001 (011°/al 2002 Fust 7an 2, 2002 -Msr. 31, 2402 1..21% 2002 Secand Api 1, 2002 - 7une 30, 2002 124% 2(302 �hiu'd Jul. 1, 2002 - Sep. 30, 2002 1.02°l0 20Q2 Fotuth Oct.l 2002-Dec.31 2002 1.78% 2403 First 7an 1, 2QQ3 -Maz. 31, 2003 2,34°to 2003 5econd Ap� 1, 2603 -June 30, 2003 1.00% 2003 Thu'd 7u1, 1, 2003 - Sep. .30, 200.3 1,66% 2d03 Fo3uth Oct I. 2043 -Dec. 3i, 2003 i.50% 2QQ4 Fust Jan. 1, 2004 - Maz. 31, 2004 2..84% 2004 Second Apr.. l, 2004 - Ttw 31, 20Q4 3..23°!0 2 C��t50 Ihe Commission releases a new quarteily inflation factor for operatars using FCC Foim I24d £o3u times each yeaz: Ihe inflation factar for a given quaite� is tisiaally released between tY�ee and four mflnths after the end af the quarter, dependiag on the scheduie af the Deparhnent of Commerce, Ihe release of a new factot is posted on ttte Conwiission's Inteinet site at: httg://vaww_fcc_govlmblcsinflat.htanl. Media Contact: Rebecca Fishe� at (242) 418-2359 Media Buieau Contact: .Jane Frenettz at (202) 418-2245 I�ZY: (202) 418-7172 --FCC-- �s � 50 APPEYDIX G D5 -I 5C� o�� REGULATORY FE�S Federal Communications Commission FACT S H E ET Q4512�' St, S,W. Washington, B.C. 20554 Juty 2004 WFIAT YOU OWE - CABLE TELEVI5ION SYSTEMS FOR FY 2Q04 Cabte television systems opexating on OcYober 1. 2003 must pay a regulaWiy fee pet subsc7ibeY for each of'the comtnunity units (CLTiDs) in which they opetate.. I`he numbex of' basic cable subsciibers that you served on Decembex 31. 2043 should be used as t}ie basis from which to catculate your fee payment Beguming this yeai, you may pay yow regulatoxy fee foi all of'yoiu bas'sc seivice subsciibeas with a single line entry of Fozm 159 withont having to list yoiu individual CiIIDs. Each licensee of'a CARS facility opeiating on Octobe� 1, 2003 must pay a reguiatoiy fee fo� each CARS license keld In imstances whexe a&cense or authoiization is kansfetxed or assigned after October 1, 2043, the fee must be paid by the pazty that is the 3icensee oi holdez o#'the aathotization on the date that the fee payment is due.. You may submit a single payment for all of youc regulatoiy fee obligafions i.e., "subsciibef fees" and all CAI2S lice�vses; howeves, you must list each inc3ividual CARS cali sign. IYPE OF FEE REGULAIORY FEE PAYMENI rYPE PAYMENI CQDE Cabte Systam Subscxibea Fee $0.70 per subscciber 0471 CARS Lieense $135 per license 0470 Special Instrnetions for Completing FCC Farms 159 & 159-C In addition to the genexal Poim 159 filing instructions, the foIIowivg in€ormation applies specifically to aable television systems and CARS licensees: Block (9} - Ielenhone N�nbex: ➢ Entei the contact nazne and telephone number of the specific individual responsible foi ' Numbei of Subsctibers In a Cammunity LTait = Numbet of single famiIy dwelIings +Number n# individuai households in muttiple dwet]iag units (e g, apat�nenu, candominiums, mobile home patks, eYc.) paying at the basic subscriber tate + N�ber of buIlc-tate custome� + Nvmber of eourtesy and free seivice. {NOTE: Sutk- RaYe Customexs = total amnuat bullc iate charge = basic annual subsciigtion rate foi individual households). 65-I 50 submitting the payment and suppoiting Form 159 and Fo� 159-C Block f 11) - PAYER FIZi�i: ➢ Enter the fee payex's FRN numbei.. Block 2i) - APPLICANI FR?�T: ➢ If diffeient from payei, entei fhe apglicant's FRN numbez_ Block 23A) - FCC CALL SIGNfOTHER ID: ➢ For subsciiber fees, leave ttus block blanlc. ➢ Enter the call sign for each CARS license. Call signs must be entet�d in one of the two following foxmats: for fixed stations, the call sign is geneially compxised of tYuee letters, follawed hy a dash, followed by two nx three numbers (e,g.. WAL-504). Foi mobile licenses, the call sign is generally comgtised af two lettexs, followed by a dash, followed hy five numbezs (eg. KB-b0I11). TIuis BIockmnst be complefed for each CARS liceuse. BIock f24A) - PAYMENT TYPE CODE: ➢ EnteY 04T2 when paying a subscxiber fee- Subsciibei infoxmation must be provided fox each system that is opeiated.. ➢ Entez 6470 when ruaking a regulafory fee payment fox a CARS Iicense� Block f25A) - QUANIIIY: ➢ Fot subsciiber fees, entea your a�gcegate number of'basic subscxibexs that you sexved on December 3I, 2003.. For CARS &censees, entes "1" in this block for each call sign. Block (27A) - IOTAL, FEE: ➢ Fox subscziber fees {gayment iype code 04'71), muitiply the atnount in Block 25A (Quaniity) by $0 7Q and enter the result here, Enter eaact dollars and cents; do aot round. ➢.__ For CAItS licenses (paymenttype code 04?0) enter $135.00. Block 28A) - F CC CODE 1: Leave this block biank Block f29A1- FCC CODE 2: L,eave this block biank. Biaek 34� - CERriFICAIION: ➢ Psnvide the p�inted aame and signahue of an ixidividual ownei/licensee or o�cex attesting to the acci�acy and completeness of'the infoYmation supplied, P2ease inciude a daytime telephone number so that we can contact you if questions arise regar•ding yaur payment -FCC- 05-l5a s REGULAT�RY FEES Federaf Communications Commission �ACT S H E ET 44512'� St, S.W. Washington, D.C. 20554 Jufy 2003 W�AT YOU OWE - CABLE TELEVISION SYSTEMS Cable television systems opeiating on Octobez 1, 24Q2 must pay a re�ulatoxy fee per subsczibeF' for each ofthe communiiy units in which Chey operate. I'ou may gay foi muitiple community units with a singie payment as iong as the communit}� units aze all part of the same cable system oi patt of a group of commonly-o�°ned cable systems. Howevet, you mvst still list each individual community unit 3dentifiei (CUID). Addirionally, each licensea of a CARS faciIiry operating on Octobes 1 2002 must pay a regulatoiy fee fox each CARS license hetd. In instances where a license ar authotization is ttansfezred ox assigned after Octob� 1, 2002, the fee must be paid by tke paxty that is the licensee oi� holdei of the authoFizarion on the date that the fee payment is due. You may submit a single payment fox aIl of'youi iegulatosy fee abligations i.e. "subscxibet fees" and a11 CA�tS Hcenses; howevei, yau must still list each ittdividual community unit identiiiei (CtTID) and CAIZS ca11 s'xgn. The numbei of'subseiibeis on Decembex 31, 2002 should be used as the basis from wbich to calculate the fee payment_ IYPE OF FBE REGULA70RY FEE PAYMENI TYPE PAYMENI CODE Cable System Subscribex Fee $0.66 per subsczibex 0371 CARS License $90 per liaense 0370 Special Insfxvctions fox Corapietsng FCC Foxws 159 & 159-C In addition to tke geneial F arm 159 filing insriuctions in the FY2003 Regulatory Fees Public Notice, the following infotmatian applies spec�cally to cable television systems and CARB ficensees: Biock (9Z - Ielephone Numhei: ➢ Entet the contact name and telephone numbex of the specific individual responsible foz submitting the payment and supporting Foxm 159 and Foim �59-C.. ' Nwnber of' Subscnbe�s Tn a Community i7nit = Number of single family dweIlings +Number of individual households in mulUple dwellmg uuits (e g., apa�4nents, condominiums, mobile home pazks, etc.) paying at the basic subsca ibei rate + Number of buik-iate customers + Nucnbet of coartesy and free service (NOTE: $ulk- Rate Castomers = total annaal bulk iate chaige = basic annual subsctiption rate for individuai households) d5 -15� Block !11) - PAYER FRiV: � F;uter t11e fee payei's FRN number. Biock j27) - APPLICAl'JI FRN: ➢ If diffetent fiom payer, enter the apglicant's FRN number_ Block (23A) - FCC CALL SICTNIOIHER ID: ➢ Enter your Community Unit Identification number (CI7ID) foi reporting subsc�ibers in each commnniiv unit within your systein CiTIDs must be entered in the following foi�at: a two- digit sta#e code followed immediately by fauc numbeis (e.g. AL,Q002). Please do not add any dashes (-).. Thic Block v�ast be completed for each CUiB. ➢ Entei the call sign for eaeh CARS license. Call signs must be entered in one of #he two foIlowing fo�mats: fot f�ed stations, the caII sign is geneially compxised of t7�ree letters, followed by a dash, followed by two oi three numbeLS (e g. WAL-504).. Fox mobile licenses, the call sign is geneially compiised of'two letters, followed by a dash, followect by five niunbers {e g. KB-601 i i) This BIock must be campieted for each CARS license. Block 24A} - PAYMENI IYPE. C4DE: ➢ Enter 0371 when paying a subscisbei fee. Subsc7ibei infoimation must be provided foi each CUID in which the system is opei ated.. ➢ Entei 0.370 when making a regulatoiy fee payment foi a CARS license. Block ZSA) - QUANIIIY: ➢ For subsciibei fees enterthe ntunbei of subsctib�s within each CIJID For CARS licensees, entex "1" in this black fo� each ca11 sign. Blocks27A� - IOIAL FEE: ➢ Foi subsciibet fees (payment type code 0371), multiply the amount in Block 25A {Quantity) by $0.66 and enter the restilf h�e. Entei• esact dollaxs and cents; do not round. ➢ Fox CARS licenses (payment type code d370) entex $9d.fl0 Block (28A) - F CC CODE L• Leave tlus block blank. Block (29A) - PCC CODE 2: ➢ Foi subscKibet fees only (payment type code 0371), provide the name of the community.. Community names are not a substitute fox the aommunity unit identifrez (CUID), You must atso provide yo� CI3ID in Block 23A (FCC CAF,L SIGNIOTHER IB).. Block 30) - CERTIFTCAIION: ➢ Provide the pxinted name and signatut�e of an individual owne�llicensee or officer attesting to the accuiacy and completeness of the infoimation supplied Please include a dayEime teiephane number so that we can contact you if questions arise regardina your payment. a5-I 50 -FCC- 3 05-�50 , Ci�y �f s�. Paul ' Office of Technology 15 West Kellogg Boulevard ,��.♦ Saint Paul, Minnesota 55102 Karen Johnson, Director Karen.johnson@ci.stpaul.mn.us 651-266-8910 February 10, 2005 TO: Sharon Wiorek Director of Regufatory Reporting Midwest Division Comcast Cable Communications P.O. Box 5155 'Southfield, Michigan 48037-5115 FROM: Karen Johnson Cc: Kathi Donnelly-Cohen Dennis Flaherty Lisa Veith Garth Ashpaugh Subject: Form 1240 Report Response For your information I provide a copy of the response we received from Ashpaugh & Sculco regarding your February 4 comments`. There are two other matters we need to address. The company complained that the A&S report dated January 24, 2005 did not show the A&S' calculation of copyright fees. As the attached letter indicates, the caiculation was not inciuded because the company's confidentiality requirements prevented its inclusion. Because it is not clear to us that the information the company designated as confidential is in fact confidential, or that the company's insistence on withholding the information is in fact proper, we would be happy to inciude the calculation in the record if the company desires it. If the company believes that it the calculation must be part ofi the record for purposes of . providing it due process, then we of course will include it in the record. Please let us know within three business days whether (a) you agree that the calculation can be placed in the record; and (b) if you claim that inclusion of the calculation in the record is necessary to provide you appropriate process or comply with appficable iaw. Second, the company objecfed to the use of programming cost data from other communities. However, it never provided (a) programming contracts; (b) actual bills from programmers for St. Paul; or (c) any support for a ctaim that the rates paid in St. Paul are higher than elsewhere. We are particularly concerned because we understand the company may purchase programming through an affiliated subsidiary, and if the v5-t.� prices reflected on your Form 1240 reflect payments to an affiliate, there would be a substaritial question as to the vafidity of the purported payments under �CC rules. If, after reading the A&S Letter you stil! contest the calculation of programming costs, you should immediate{y provide us with actual programming contracts, actua{ bills, proof as to who the programming is being purchased from, their relationship with Comcast, and contracts showing the terms and conditions under which that entity purchases programming for resale for the relevant periods. You should also expfain why costs are higher in St. Paul than elsewhere. We would ask that you provide that data in three business days. If for any reason you cannot retrieve the data in three business days, give me a call. 05 50 �: s ASHPAUGH & SCULCQ, CPAs, PLC Cer �ified Public AccoLn�2nis a�c' C FebFUacy 7, 2005 AS1043-OZ Karen Johnson, Duecfor Office of Technology City of'5t.. Paul. 290 CityHall 15 West Kellogg Boulevard St, Paul, MN 55102 SUB.TECT: Addendum to the Letter Report of Januaxy 24, 2045 Concexving the FCC Form 1240 of Comcast of 8� Paal, Inc. filed with the City oS' Sx Paul Februazy 27, 20d4 ' Deaz Ms. Johnson: Ashpaugh & Sculco, CPAs, PI,C ("A&S"} were provided the Febivazy 4 comments o£' Comcast conceming our Januazy 24 2OOS 12�eL T2j70Tt �tI1C "Report"}. We appreciate the timely and thoxough analyses of' Comcast.. The following discussion addresses each point of' ComcasYs iesponse. TRUE-UP PERIOD Tfie Fedezal Commuaicafions Commission ("FCC") has made it cleaz (I} that the opecator can only t�ue-up a peziod one rime and (2} that acTual infoxmation must be availab3e fox the period selected The Foxm 1240Instructions state: The second pe�iod is called the Txue-Up Pe�iod When you fi�e your Foim 1240, you must define the peciod of time on which you will peiform a true-up (far a full discussion of'this process, see the section "The Txue-Up Process" below } There aze two requuements far defining a Txue-Up Peiiod.. The first rate adiustrnents you are claiming for the True-Up Period. This mean` that with each Foim 1240 filing there wi11 be a space of time belween the end of'the Tiue-Up Period and the beginning af the Projected Period on which you cannot pesfoxm a uue-up, (Fmphasis added..) A&S used an 11 montk pesiod rather than a 12-month petiod because that was the only period for wluch complete actual data was availahle at the time of' filing Comcast did not have actual subsciiber data oi progaznmiug costs for Novembei 2003 when it prepazed the 1240.. Comcast stated that, if A&S' i 1-monEh ttue-up petiod is adopted, that t 1— month petiod shouid be used to complete Woiksheet 8 of the FCC forms A&S ag��es, and has corrected the Addendum Fonn 1240 iucluded it submitted to the City ta make that change_ The revised 1133 Louis�ariaAvenue Suite i0b � WirrterParkFL 32789 • 4076452020 • Fax4076454070 gashpaugh@ascpas com • amlco@ascpas com - o�a5o Kazea.Tohnson,Cityo#'St Paui Febivary �, 2005 Paae 2 of 6 Addenduxn Foim 1240 is attached to this leiter zepoxt Makin,g this cl�xge, hawever, only has an impact of'� 0003 on the Avetage Rate calculated in Worksheet 8. 1�IUMBER OF SUBSCRIBEI2S The centrat diffeience be#ween the A&S calculation and the Comcast calculation is that Comcast adjusted its subsciiber numbefs to remove customers to whom it provides free setvice. Comcast seems to azgue that fhis adjustmenf is ofno consequence since "there are no costs in the 1240 Foim fox free customers." In fack, undei the FCC fotm, costs are spread aeross the subscribei base; the Iower the number of subscribers, tha higher the cost pez subsc�iber. By ignoxing "free" subsc�be�s, Comcast effectivelyraises tates to eve�yone else, as we explained in our uaitiai report We see nothing on the FCC Foxm ox in the xules that allows Comcast to ignoie some subsni�be�s in its rate calculations. The City should make the adjustment xecommeaded by A&S. Once that adjushnent is made, the other differences between Camcast and A&S subscribec counts nesult frnm tUe way data are sum�ued and avetaged on tfie FCC foims. A&S also disagrees rvith Comcast's comment on the billing of'progamming expenses, but the pxogauiming cost issue will be discussed in the aext sectioa. PxoGxnr��rG CoSrS Comcast identifies two issues with respect to progamm;ng costs. Ihe firsC is a red hetring. Camcast aib�es that A&S iznproperly included free customets in its calculation of progamming costs.. It then admits that we did not do so. Jusf tp be cleaz, we did not include free customers in the calculatian of prog *n�*+g costs (because the amount paid by Comcast does not appeas to change based on the rnzmber of &ee subscn�bets in St. Paul) Progcanuning costs detetmined by ABzS were based on billable subscxibeis consistent with the suppoxt pxovided by Comcast The second, and sinnificant issue, ralates to Comcast's suppoxt for programming costs. Comcast submitted data that pucpoTted to suppoit its pzogiawmiag costs. But the piuported programm;ng costs repoxted from St. Paui diffei frnm those repoxted in other Comcast commuxuties. Comcast did not provide progamm;,,g conuacts, aatual invoices from progmnmers for the St. Paul system, or athe� infoimation that would prove that rates paid for progau�niing in St Paul aze hip�er than in other communities. A6sent some such proo� A&S adjtisted prngramining costs to reflect costs geneially incLUred by Caxncast. Comcast also faulfs A&S fhat ".. it should haue communica#ed its conceins to Comcast ptior to the issuance of a final Yepork" This statement is ironic since I had a phone conversafion with Ms Wiorek in lafe November 2004 conceining the status of pingcamming cxist suppoit for 3t. Paul and Detroit At that fime, I specifically disc�ssed the incansistencies in Comcast's data with Ms. Wiorek in iesponse to hei duect questions conce�ning the problems As I told Ms. Wioxek, I had cost dafa provided to me in response to infacmarion requests for Ailiugton County, i7irginia and the amounts did not agee with those elaimed by Comcast in either SY_ Paul or Deiroit Ms Wioi�k responded that the cost support would be 05 �t 5� Karen Iohnson, City of'St. PauI Februazy 7, 2fl05 Page 3 of 6 provided A scanned copy of' the executed confidentiality ageement conceining pro�amm;ng costs was provided to Camcast hy email on Novembei 14 and mailed November 18 But Comcast did not provide the data unh7 December I6 even though the October I5, 2Q04 response of Comcast stated the followina: Request 5 a. Foi wazksheet 7, please provide suppoit for progcamming casts for each chaunel by month for each month of the 'I`iue-L3p Peziod Such support (invoices and or supporting detail for the payment} shouid identify the actual costs for each channel by Comcast to the individual programmers Comcast's Oetober 15, 2004 resnonse: 7nfoimation wi11 be sent upan receipt of the fiilly exacuted Confidentiality Agreement between Comcast and Ashpaugh & Sculco CPAs. In addirion, the mateiial piovided did not support the amaunts ciaimed b,y Comcast in the &ling.. Tn the filing, Camcast claimed per subsciibe� amounts when the amounts were a flat £ee; the mateiial provided inclicated that pzogamrr, costs were suhject to cettain discounts and adjustmenfs not reflected in the filing A&S's calculation of' prograzauning expense is appropiiate fox setting zates. CoPrnrGHZ FEES Comcase pays certain mandatory capyxight fees pursuant to a foimula set by the fedeial goveinment. The amount owed depends on a number of factois, including the channels being carsied on a system and the aates chazged. Comcast calculafed cop}�ight fees by taldng the amount it paid foF the entire iegion and then allocating a cextain poxtion of'that to St. Paul. A&S calculated copyright fees by detesmining how much Comcast woutd have owed for St. Pau1 aione, if' 3t. Paut were a standalone system There should be no differ ence in the result z'f aIl factois that affect copyright chazges aze the same in all communities in the area; but if t�ey aze not, the A&S methodology is more accutate. As there does appear to be a diffetence based upon Comcast's comments, A&3 recom�nends that the more accutate method be used. The specific Comcasf ciiticisms aze wisplaced. Comcast claims ".. that A&S azxived at a Total fos Basic Revenue but used an nnlmown calculation and pmceed to mulfiply the Basic Revenues by .0956% to ascestain a copyiight expense." First, the calculation is "unknown" because Comcast insistecl tfiat the data used to petfoxm the calculation be treated as canfidential. We would be pleased to ptovide the calculation to the City, if' Comcast insists that it be pazt of'the record. The basic approach, however is evident frntn the foxm A&S calculated the copyiight fee that would haue been owed if St. Paul were a standalone system.. The copyright foTms requue Comcast to pay a fee equal to .956% of ievenues subjecf to the copytighf payments. As shown on Line b af AppendiY E, A&S apglied this 956% (not 0956%, as Comcast cla�s} to St. Paul revenues.. The calculafion ielied oa data $om ComcasYs sugpoxting flocuments without adjustment A&S's calculation is appi opiiate foi' setting rates 05-�50 Kuen Johnsan, City of'SU Paul Febi�aty 7, 2005 Page 4 of 6 FxarrcYUSF-REin:�D Cos7s ("FRC") Comcast claims tbat "., A&S attempted to a�eate ComcasYs calculation of Franchise- Related Costs {"FRCs"� ..." Tn fact, while A&S presented its data in a manner similaz ta flie manner in which Comcast piesecrted, its calculation o£'FRCs, A&S did not simpiy attempt to re-create the Comcast data. As we esplained in o�a initial zeport, Comcast failed to pinperly amoitize FRCs or stipport its txeatment of them. Its commenfs do nothing to cacrect this deficiency. , As more fully explained in the initiat repoit, some franchis�reiated costs aze properly tceated as annual expenses. But other costs, such as tump sum payments or contribution of' capital equipment foi PEG, aze psopezly amostized ove� a period ofyears One can envision several possible aznottization petiods The FCC, for �ample, has suggested that a franchising auThoxity can require lump suzn PEG payments to be amoxtized over the nseful life of'the equipment involved� In this case, Comcast failed to support its tceatment of' PEG capital costs that we�e subject to amoitization, so A&S used the then-remaimng teim of'the fxanchise as an appropiiate amoxtization petiod. That choice assumes fhat the PBG paymenfs made fo the City wexe meant to provide the City with sufficient funds fot Yhe franchise tezm. While a Ionget amoxtization p�iod migfit be jusiified, our choice seems to be the shartest appropsiate p�iod based on the info:mation available to us. Based on ComcasYs continued faihue to suppoxt the treaiment of' FRCs, we recommend the City adopt the A&S appioach to amortization Comcast did identify some caicutation enors that we have coxrected Howev�, where it claims that A&S made a change `�vithout explanation," it is genesally pointing Yo calculations that eithei required no explanation, or that it miscead More specificatiy. • Tfie amounts for `B" were catculated the same as the other amounts an the page — the totai amount divide@ by the totaI number of months in the amortization pesiod times the numbec of' months in the Tzue-Up Pexiod. A&S's conection flowed tl�nugb to the total ea.yense and the Tofal .(Comcast's comments at page 3,) • Concexning Comcast's comment on the change in the n�be� of `4emaining months" at the baginving of the Tsue-Up Pesiod, A&S used the same number as Comcast for `B". For "C", "D", "E" and "G", A&S used actual fixil months and not the partial months resuIting in the diff'exences, This does not impact the iates calculated hy A&S, (Comcast's commenfs at page 4} • Comcast's comments tegazdiug Appendix D pages 2 of'4 and 4 of 4 aze coneet with respect to the Totals shown The attached Addendwn Appendix D has conect totals (ComcasYs comments at page 4) • Comcast is coirect that "H" costs should not be in the Pinjected Period, Ihis has been coirected (Comcast's comments at page 4. ) Q5 -1 5Q Kuzn .Johnson, City of St Paul Fehivary 7, 2005 Page 5 of 6 • Comcast is conect that the A&S catculation should have been 11 months for the deteiminafion of' amostization expec�se foi the Tiue-Up Peciod Ihis bas been eariected_ (ComcasYs comments atpage4-) • ComcasYs discussion at on page 4 concesning the use of "16.5 mont�s" misstates what A&S dicl, and the soiuce of ComcasYs confusion is unclear. The column headings on Pages 2 of 4 and 4 0£' 4 cleafly shows that the amount is as of'.June 1, 2004.. Obviously, one simply calculates additionai months of amoitization to get to this poinf — secalI the Tiue-Up Peiiod ends October 31, 2003 and the Pxnjected Peiiod he�ns .June 1, 2004. The amoztizations continue on a monthly basis foi every morrth between the two peiiods. (ComcasYs comments aY page 4..) • Comcast's statement that A8cS's iecalculation is "inconsistent with the suppoit provided by Comcast and the FCC n�es" assumes that ifs proposed amortization peiiods aze coirect or suppoited by data pzovided by the company., The peiiods aze not supported. A&S relied on the franchise documents and cost data provided by tlie City in addition to the suppott piavided by Comcast to deteamine appropsiate peziods for amoitization, as discussed above. (ComcasYs comments at page 5) F CC REGULAIORY FEE The essential issue is whethei the FCC Regulatory fee must be accounted foi in the Fotm 1240, oi whether it can simply be added to the bilI. We disagee with Comcast's analysis of' the FCC foxms Tfie use of ttie wozd "ma�' in the 1240 Instructions refe�s to the fact that the opesatar may or may not elect to pass this regulatoty fee tluough to subsciibers.. Howecei, if' Yhe opexator chooses to collect the FCC Regulatary Fee from subscribeis, we believe it must Snclude the amount on the Woiksheet 7 of the 1240. Our conclusion in tlus xegazd is based in pazt on the fact that if the fee is included in the Foim I240, there is a cleaz mechanism for conecting undex and over-collections frnm subsc�ibess If' it is excluded, there is no cleaz mechanism foi monitaxing the coIlection of the fees, and the City wauld have to create a separate mechanism fox' doing so. Absent some clear ruling by the FCC, #he better cotuse is to include the charge in the Fotm 1240. We note tbat if' Comcast were xight, the effeet would be to reduce the A&S recommended MPR by $..06 to $10 03 excIuding francivse fees. Ihat is because ihe regulatory fee is included in our xecommended MPR. woxc�s�ar s Comcast is conect that the amount for the F CC Regulatoty F ee was 3ncluded twice on A&S's 4Voiksfieet 8 As shown in Appenctvt C, A&S's revised 1240 has cotrected this. CONCL�USION The comments of Comcast have been addressed above. Any miscalculatians have been coxreeted and are zeflected in the attached Appex�dices.. As shown on Addendum Appendices 05 -I 5d Kareu Johnson, City of 3t Paul Fetnuazy'7, 2045 Page 6 of 6 A and B, maldng the above chan�es increases aur Mari�um Peimitted Rate (`•MPR") to �10_09, $10_62 including fra�chise fees Both amounts mclude franchis�related costs A&S recomrnends the City adopt these iates. We recomznend the City: {i) reject tha filiag of Comcast; (ii) adopt A&S's 1240, wluch is attached as Addendum Appendix C to this let#er report; and (iii�} approve the MPR of $10.0864 as i•ecalculated by A&S. In the ordei, the Ciry should state tfiat if any iaformarion shouid become known in the future which wouId 'ungact these rates, the City may xevisit this decision Tbe City should fiuthet sta#e that (I) this amount includes the FCC Regulatory Pee, (2) this amount includes all franchise-ielated costs and {3) this is the masimum iate allowed foi the Basic Sesvice Tiez under the FCC's iules If' you have any questians oi require any fiuther infoimation, please let me know Very trnly you�, ASHPAUGH & SCITLCO, CPAs, PLC �, � �<.,c� - Garth T Ashpaugh, CPA President and Member Cc: Lisa Veith, Esquue, City Attotney Toseph Van Eaton, Esquue, Miller & Van Eaton, PLLC Enclosute Adde�um m Ihe 2�04 .?AD Report 05�� 5� ADDENDLM APPENDTX A 05-�50 ADDE\TDU?rf APPEN�IX A ST. PAUL, �II�i'NESOTA COYICASI OF SI PA7JL, INC_ REVIEW 4F 2004 FCC FORM 1240 1tEC0_�NUED RAIES Recommende Rates Rates Recommended Incltuling Line Foi Fianchise Franchise No. Type of Seivice Approval Fees Fees of 5.00% Monthlv Rate i Maximvm Peimitted Rate - Basic Iier $1Q.09 $d.53 $ I0.62 05-[ 5p ADDENDUM APPENDIX B 05 -� 50 � x � c Z � ��. G r�7 A Z Q � U H � O � W Q z a � � W a � P F � a � �� 0 U � � � � � w O N Cc� 0 3 � � 0 z 2 � 4 � � d��_ �< w<�� ..v v� C � r ,'G - � o O y 4� � r N y�-.' Qi U 6 v � N !J Q � � U m s e U � Y ry aJ V^, F' Q O'L�.i v O � p➢ � vi 4 � U "' F'� � b � �D y � � N � � m ti � ° f. C" � v ss U � Y � M R q � G a v � � � � � � u � e � � w � o � w d � � " g9 <r A a V Ci' � o N � s ' � � N � 4' � "'^�' 'O � N FL w ¢,' U �`-' yj d .°�., q 32 �, _ `� V m v w vz � p °� a `� � o ;� ¢ o � � � � � W � � g o � GY+ � lz C+ � � � O M �..i U �' � k � � �'- a � U �`' m U Z � V�i F w � o � y U T o0 F d � � � � F y l , U C1 'Y R �O � Fn N �z � a 0 � a d5�50 ADDENDUM APPENDIX C 05 -150 Fedae] Co�funicatious Commiss�oa Wazhingtoq DC 20ii4 Appwved by OMB 3060-0685 . FCC FORM 1240 UPDAIING bIAXIl4ILl1 PERIIIIIED RA2ES FOR R£GIILA7ED CABLE SERVICES Cable Operator: YES NO I. Does this filing involve a single f�anchise authotity a¢d a single community nnit? � lt yes, complete the fianchise authoiity inkormation below and e�tex the associated CIIID numbei here: b1,i�0e2a YES i�'O 2. Does this filivg involve a single tt'anchise autBo�ity but muitiple commvnity units? g If yes, enter the associated CNDs below end wmplete the franchise autho:iry informarion at the bottom of this page: 3 DoesthisE7ingiavolvemuliiplefranchisea¢thoxities? NO Tt yes, attach a separate sheet fox each fi�anchise aathority and include the following fianchise autho:iry information wiEh its associated CUID(s): Fisnchise Authoiity Infoimafion: 4. Foi what puipose is this FoTm 1240 beiag filed? Please put an "X" in the app�opiiate box.. a Osiginal Fam 124-0 fa' Basic Iier X b Amended Form 1240 fos Basic iiet c Q�iginal Foim ]240 forCPS Iiec d AmendedFrnm 1244foi CPS Iiec TO 5. Tndicate the one yeax'time pei'iod foc which you are setting iates {the Projected Period). 06/�1/04 OS/31105 TO 6. Indicate the time pe�iod for which you are gezfoimina a trurup. 12/OI/fl2 ll/3QPo3 7 Status of Previous �71ing of FCC Fotm 1TAU (enter an "x'• in the approp�iate box) YES i16 a- Is this [he first FCC Foxm 1240 &ted in any jurisdiction? X b Has an FCC Form 1240 been filed previously with tl�e FCC? g If yes, enter the daze of the most recent filing:� (mm(dd�pY} YES NO c Has an FCC Fotm 1240 been filed previously with the Franchising Au[fioiity? g If yes, enter the date ot the most recent filing: 02/26/03 (mm/ddlyy) ��YY) C�ri) FCC Fotm 1240 Page 1 Microsofl Ezcei 5 0 Vecsion July 1996 05 5d Fea�a co�,��aso� co�on Washi�ton, DC 20554 S. Status of Prr+ions Fiiing oF FCC Foxm 1214 (enter an "x" in the appropiiate bos} YES VO a Has an FCC Foc�s 1210 been pcevious4y fiied with tLe FCC? X IFyes, e¢tex the da�e of themost recenifiliag: 12/01195 (mm(dd/yy) YES ti0 b Has an FCC Fo� 1210 been previousty filed cc�th the Franchising Aurkozity? X lf'yes, evter the date of the most recent filiag: 11/18/99 (mm{dd/yy) 9 Status of FCC Fotm 12D6 FHing (enter an "x" in the app:opciaTe box}- YES NO a. Has an FCC f oxm 1200 been pxevious3y filed with the FCC? '" R If yes, entet the date filed: �(mm/dd/yy) YES NO b Has an FCC Form 1200 been previously filed with theFxanchisipg Authoxiry? g lf yes, entes'tfie date filed: 08114/94 (mm/dd/yy) 10. Cabfe Proszammiug Setvices Complai¢t Status (entel an "x" in The appropiiate box) YES �O a(s this form being filed in response to an FCC Foim 329 complaint? X if'yes, entec the daze of the complaint:0 (mmldd YES NO 11. 7s FCC Form 1205 Being Included With Ihis F�7fng � 12. Selecfioa of "Goiug Fornard° Channrl Addition Methodology (entex an "x" in the appropriate box} �Check here if you aze using the otiginal iules (MARKUP MEiHOD] �Check 6ere if you zre using the new, altecnacive iutes jCAPS ME i HOD] If using the CAPS ME IHOD, have you elected to revise recovery fox chaanels added duiing the period May 15, 1994 to Dec 31, 1944? 13. Headead UpgTade MethodoTogy `NOTE Operators must ce�tiJy to tfee Comm:sston thei� eligibtliry to use this upgiode methodology and attach an equipment lisf and depreactzon schedule �Check here it you are a qualifying small systern using the sheamlined headend upa ade methodology Part I: Preliminarv Information YES NO X Approved by OMB 3066-0685 Mudule A: Maximum Pexmitted Itate Fz om Previous Cuireat Mazimum Pennitted Rate For Tme-Up Period 1 Aveaage Subscri6ership For TmaUp Pedod 2 Fstimated Average Subscdbeislilp For Projeci u�laimed FnflaROn: a Basic $I0.0734 Module B: Subscri s sas�� 54,202 od 54,744 �oduie C: Inllafion I� ro i2ao a e Iicr4 ;ier5 U�launed Inflarion: CJnregutated Opefatoi Respondin8 to Rate complaint ]ntlatioa Fattor Far Fme-Up Period 1(VJks 1] I�IaUaa Fac[or For Tme-Up Period 2[Wfcs 1] Cu¢ent FCC inflation Factor FCC Fo=m 1240 Page 2 Microsoft Excef 5 6 Version luly i996 F� co��o� cA�,�oa Washingtaq DC 2055A Cuaern Headeud Upg�ade Segment Cwaeot Exiemal COSrs SEgment C�me�t Caps Metfiod Segment Ctisre.rn Ma�pMethod Segment G}ureni Channel Movement and Deletion C¢nent Tn�Up Se�ent Clmem Intlation Se�ent adule D: Calculating the Base Rate a b Base Iier2 $O.W00 523166 50.0000 50.0060 SO.00DQ 5I.7617 50.1048 55.8903 Part II: True-Un Periad Module E: Tinun� Infoxmation W1ia[ Type of'CxuaUg Is Beiag Perfo�ed? {Answei "i ", "2", ox "3". See Instructions fo[ a description c If `R", go to Module L If "2", auswu E2"and E3. If "3 auswu E2, E3, E4, an8 E5. Numbe� of Mamhs in ihe'Inee-Up Pertod 1 Numbes of Mon[]ss between the end of 7me-Up Period I and tfie end of the most recem Prujected Period Number of Months m True-Up Pcriod 2 Eligible for Iuterest Ninnber of Monihs Tne-Up Period 2 ineligible for Fnterat �5 � 50 Appmved by OMB 3060-06fr5 c d e n 3 Iiu 4 SierS Modnle F: Maacimum Yermitted Rate Fox Ttve-i3 Period 1 a b c d e Line LineDesctip5on $asie Iie+2 Iie�3 Iie�4 IierS Fl CapsMethodSegmentForTmaUpPeriodt(WI¢2] $0.0000 F2 MazkuQ Method Segment For Tme-Up Paiod i j4Vks 3� $0.0000 F3 ChanMvmntDe]em5egme¢tForTruo-UpPeriodl[Wl¢'4/5j - . � - 4 Tme-Up Period T Rate Digible Fox Ivflatiaa [D8+F1+F2+F3] $5.8903 ' F$ I�iation Seg�nera fox TxucUp Period 1[(F4"C3}F4} $0.0905 F6 Aeadend Upg-ede Segment For Tme-Up Period 1[Wks 6] - F7 Exiernal Costs Segmeat Foi Tcue-Up �'eriod 1[Wks 7] $2.IS43 F8 Trve-Up Sepauent Foi Tmc Up Period 1 S1.7619 F9 Mac Perm Rate for Tme-Up Period 1[F4+FS+F6+F7sF8] $9.9270 Module G: Maacimum Pexmitted Rate Fox True-U Petiod 2 a b c d e time L'veeDescription Basic Iier2 Iier3 Iie�4 iie+i Gl Caps Me[hod 5egment Fot Tnie-Up Period 2[Wks 2] G2 Markup MetLod Segment Fm Tzue-Up Period 2[ Wtcs 3] G3 Chan Mvmnt Deletn Segment ForTme.Up Period Z(V✓ks' 4/SJ G4 T[7 Penod 2 RateFligibie Fox Fnflaaon [D8'•�FS+GI�G2-sG3] GS Inflation Segmert fox Tna-Up Period 2[(G4'C4}G4] G6 Headend Upgrade Se<TP.,r Fox Tme-Up Period 2[SVks 6] G7 Extemal Costs Segueut ForTme-LJp Period 2[Wks 7] G8 Tme-UpSegmentForTxue-UpPeaod2 G9 MaePemzRate{orTrue-UpPeciod2[G4+GS+G6+G7+G8] FCC Fo:m 1240 Page3 MicrosoRExce150 Ver;ion .iafy 1496 �5--I5�J federnl Commnnications Com�ssion ,qpproved by OMB 3060-0685 Waslvngton, DC?A554 Module H: Trae-F7p Adjnstment Calculation a � o a e j,j LineDescripdoa Basic 7ier2 Iie+3 Iier4 iier5 Ad3asrment For True.Lp Periad 1 A1 Revenue From Pedod 1 4,�5,714.b2 fTL Revenue From Mu Permitted Rate for Period I 5,918,643.Z2 fi3 Tn�Ug Period 1 Adjus�ent (H2-Hlj $i,I42,928.60 H4 Intexest on Petiod I Adjustment 5115,269.48 Adjustment For True-Up Period 2 HS ReveaueFmmPeriod2E7igibleforintecat H6 Revemte From Yisx Pum Rate forPeriod 2 Digble For Ijrtera[ H7 Pertod 2 Adjustment IIigble Foi intaest [H6-H57 � H8 Interest on Period 2 Adjustrnent (See instrucuons fnx fomiula) H9 � Revenue From Peaod 2 Ineligable for Interat H10 Revrnue Fmm Max Pecm Race for Period 2 ineligible fox Iater HI I Period 2 Adjushnem Ineligible Fox Interest [FItO-H9] Totaf Trae-Up Ad'yustmeat � H12 Previous Remaioing Tme-Up Adj�strnept H13 TotalTme-UgAdjustment[FC3+H4+H7+H8+H11+H12J $I,258,198.08 H34 AmowtofTrue-UpClaimedFocTfusProjcctedPe:iod $1,258,198.48 HIS RemamingTlue-UpAdjastment[H13-H14] $0.00 Part III: Proiected Period Module I: New Maximum Pex�mitted � a b Liue Descriptio¢ Basic Iie� 2 Caps Me t}wd Segment Fox Pmjecced Peeiod [W16 2] Markup Method Segment For Projected Period [Wks 37 t e 4 ]ie� 5 Chan Mvmnt Delem Segmeut For Projected Period (Wlcs 4/5] Pmj. Pexiod Rate Eligible Fo: Inflaeon (A8+Fi+GS+II+I2+I3] $5.9868 Inflation Se�meat £ox Proiected Period f(I4`CS}I47 SQ i432 16 Heade� Ilpgrade 5egmeni For Projected Period [Wks 6] 17 Estemal Cosfs Segment Fox Pmjected Period [W16 7] $1.9972 IS True-UpSegmentForPmjxtedPeriod $1.9153 I9 MaiPetmittedRatefocProjectr.dPeriod[i4+15+16+I7+Ig] SI0.0864 $10.5446 (50.5132) iI0 OperztorSelecledRateFoiProjectedPeriod $10.6000 Il l Frnnchise�related costs pei subscdbu $1.6797 - Note The macrmum pe�mitted rate ftgures do not take into account cny refund kabiliry you may have If 9au have prenously been o�dered by the Cbmmisszott or yaw loca! frm�chisingauihwity ta make refimds. yo:� are not r¢tieved of yrovr obligalzon to make such iejunds even f the permitted rate is higher than tke <onte:ted iate o� your cuneni raie �" CeiKfication Statement PCCFom� 1240 Page4 Microsoff Faccel5 0 Version 1Wy 1996 WILLFUL FAL.SE SIAIHMENIS MADE ON IHIS FO'RM ARE PiJNISHABLE BY FINE AlVD/0R 1MPRISONMEN7 fU S. COBE 7CILE 18. SEG7ION 1Q011, AND/ORFORFEIIURElU_S CODE.. iIILE 41.. SECIiQN 503) 05 � 50 FeAeral Commimications Commission Wu3rivgton, DC 20i54 Worksheet 2- True-Up Period Inflation For instiucbons, see Appendix A of Instiucuoas Fm FCC Fo�xn 1240 Line Puiod FCCEaflaaonFactor 301 Monihl 1.78% 702 Month2 2.39� 163 Montfi 3 2.39% 104 Montti4 2.39% 105 Month 5 1.00°.6 106 btonth6 1.60°0 10'/ Month7 11J0% 108 Month B " 1.66°k ]09 Maoth9 " ].66% 1f0 Moathl0 i66h 111 Month 11 1.56%a 712 Month 12 113 Avecage Inflazion Fac[ox for 1 pISA Tive-Up Peaod I 114 Month 13 IFS Monthl4 116 Month 15 117 Monrfi 16 IIS Montht7 119 Month 18 720 Month 19 izi �on�tza izz mcoowzz ixs hcofl�,zz 124 Month 23 125 Month24 I26 Avernge Inflatlon Factoc fo� I'nre-Up Periad 2 Approved By Obffi 3060-0685 Dec-02 Jan-03 Feb-03 blzl-03 Apr03 May-03 Jun-03 Iui-03 Aag-03 Sep-03 Oct-03 Nov-03 FCC Fomi 1240 Page 1 Nficroso8 Ecce15 0 Ve�sion Jaly 1996 05-! � Fedeml Com�nicauons Co�ission WasSmgKm, DC 20554 Worksheet 2 - Caps Method True-Up Period, Basic Tier for instructions, see Appendix A of Inshnc7ions For FCC Form I290 Question 1 Indicate the petiod for wluch tlJs worksheet is being used (Pvt an "X" in the appropxiate box ) Agpmv� By OhB 306�-0685 imrrUp Pedo P �� P�xiod X --___----I ' --__-----: --------- : . . -_�----_ • ' • -_--�---- + � -------�- .. � ----_---- �----�--- --_------ ' --_------ . , � , --------- _ : '._ FCC Fmm 1240 Page I Microsoft Exce] 5 0 Version July I996 Question2 Indicate?ke net fm which this wo2ssheet is being used (Put an "X" in the appcopsiafe boz ) Basic Tier2 Tier3 Tier4 TierS X Quevdon 3 How iong is the first period, in montLS,for which rates are being set with tltis wodaheett I I Quesrion 4 How long is the second pexiod, inmamhs,for wlrich 2tes are beiry set withthis wo�lcskieet? 0 �� Fe�eat co��n�aaons comm;ssioa YJ2shington, DC 20554' Worksheet 2 - Caps Method Projected Period, Basic Tier For inshuctioas sce Appeudix A o4 insauccions ForFCC Form 1246 Quescron 1 Indicate theperiod for wLich ihis worlaheet is being used (Pu[a¢ "X" i¢ tl�e appropriate box j Appmved By OMB 3060-0685 Tnz�lip Projec[ed Period Peaod X Question 2 fodiceEe the tiei for wluchthis wodcshee[ is being vsed (Put an "X" in tLe appropriate box ) - � Basic Tia2 Tier3 Tier4 TiaS X Question 3 How long is rhe fust period, in momhs,for which mtes aze being set witL tLis worksLeet? 12 Quetion 4 How Iong is the seco¢d peaod, in months,for wtsich rates are bemg sek wi[h this worksheet? 0 1 2 3 4 5 6 7 8 9 Opexatois Previous Cuirent Net CapFot �pexatox's ��censeFee �otalLicense Iotal jotalCaps Line Period ReguJated Regulated CapFor FeeRese+ve Opuators Channels Channefs CLange Channels LicenseFeu � $e1YeUSe � Used CapUsed Adjustment Added 201 �evioas Month 202 MonEa 1 6 0 03 Month 2 Q 0 04 Mornh3 0 0 205 Momh4 0 0 � 206 MorthS 0 0 2Q7 Month6 0 0 208 Month 7 0 0 209 Month 8 0 0 � 210 Monih9 6 0 2ll Monih 10 0 0 2i2 Monthll 0 0 213 Month 12 0 0 2t4 Avera e Period 1 Ca MetLod Ad'ustmenL FCC Form 1240 Page 1 Microsoft Eccel 5 0 Version 7u1y 1996 05-( 5� fedazi commumcat;ons Commission Wastungroa, DC 20554 Worksheet 3 - Markup Method True-Ug Period, Basic Tier Foi insnucdons, sce Appe�ix A ot Inst�uctioas For KC Form 1240 Queseon 1. Indicate tLe peaod for which tLis woxksheet is being used (Put an ° X" in the appropiiacebox ) Approved By OMB 3060-068i In�UpPtri ProjeccedPeriod X Questioa 2 Indiqte the verfar which ihis wotlssheet is being used (PUt an "X" in the appmpriate box ) Basic Tier2 Tier3 Tier4 � TiezS X Quution 3 How loug is the first period, in months, for w2rich mtes aie being set with this worksUeet? ]1 Quesrion 4 How long is the second period, m montGs, Fo: wltich mtes are being set with Uils worksheet? _ 31S Momh 13 316 Monthl4 . 317 Month 15 378 Mo¢th16 329 MoNh 17 320 MonthlS - 321 Month 19 322 Month 20 323 MoMh2f 324 Month22 5 Month23 326 Month 24 327 Average Period 2 Caps Method Adjnstment FCC Fottn 3240 Page I Microsoft Ezce15 0 Vession Juty f 998 F� ��a� �� VlasLington, DC 20554 Warksheet 3 - Viarkup 11�Iethod Projected Period, Basic Tier 05-150 Approved By OMB 3060-0685 Forinstruclions, sce Appe.odcs � of Insauc[inns Far FCC foxm 124D Inu-UpPeri Projec[edPedod Ques¢on 1 Indicate tLe pertod for whicfi clils wod¢heet is bei¢g nsed (Put an "X" in the appmpriate 6ox ) X Question 2 Indicate [he ticz brw3uc0t6is worlcs3xeet u being used (Put an "X" in the appropriate box J Basic Fiec2 Tia3 Tier4 TierS X Q¢u2ion 3 How long is tfie first period, in months, fox which m[es are beiag set wit6 rlvs worksheet? 12 Quption 4 How long is fhe second period, in months, toc wkuch ra[es aze being set with this worksLeet? 0 FCC Form 1240 Page I Microsoft EYCe15 0 Vasion .Fu1y l996 C'�5 -� 50 Fedeal Communiwtions Commission Wastrcngton, I7C 2Q554 iABL& A. NON-EXTERNAI, COSS �1DNSI_MEtiF FOR CHANGES IN CHA`INEES Approved By OMB 3060-0685 FCC Form 1240 Page 6 Microso@ Fxce7 5 0 Vexsion July t996 05-i5c� Fedeml Coartnunicalions Commission WasLingtoq DC 20554 '4Gorksheet 4 - Residual True-Up Period For instructious, see Appe�ffi2ix A oFinshactions Foc fCC Foim 124G Questeon 1 Indicate the pe¢od for w7uch fhis urorksheei is being rise�l (put a¢ "X" io the appmpriate box j Appmved By OMB 3060-0685 Icu�Up Period Pmjecad Peciod X a b c d e i,ine LineDts�reytiott &asic Iier2 "(ier3 ILerA IierS Period One 401 Avaage Pemitted Ctiarge $8 0100 ?02 Average Fctanal Cos� 521843 Average Fohl Per Channei Adjushnents after 5/I4l94 � fo: Channe[s Added Using Ca Metfiod 50 0000 464 Average iici R¢idual C�1-4Q2A03] $S 8257 - OS Aveage Ckiznnels per Regu]ated Iier 28 0006 405 Average Caps Method Chazmets pex Iia 0 0000 07 Average Remaining Channels (405-406] 28 0�00 4p8 Average Period I Pex Channel Besidual [404l407j $02081 renoa "1"wo 409 AveragepennittedCharge 470 AverageEctemaiCosts 4ll Avernge Tom[ Per Cben¢el Adjusnnexrts after 5/I4/94 for Cfiannels Added Us' � Ca s Method 412 Avemge Iiec Residual [409-410-411] 413 AverageChannelspetRegulatedliel 14 Average Caps MeUiod Channels pe� Iiei 415 Avernge Remai�aing Channels [413�14] 416 Averege Period 2 Pec Channel Residual [417J415] FCC Form 1240 Page I Micrasofl Ezce15 0 Ve�sion 7u�y t qq6 05 -150 Federal Comm�mications Commiaion WashingtoR � 20554 Worksheet 5- Channel Movement and Deietion Trne-Up Periocl, Basic Tier For iashuctio�, see Appendix A of Ins¢ucROas Foi FCC Fo:m 1246 Approved By OM3 i06P-0f�5 Question 1]ndicate the peood for w7ssch rLis woc76hcet is being ased (Put an "X" ia the appzopraate borz.) Tme`iJp Petiod Rojeeted Period X Westion 2. tadicate i6e tia foi wFuch ttis wot�s6eec is be�ae used. (Put an"X" in the apnrovriateboxJ FCC Form 1240 Page 1 Microso8 Ecce15 P Version Iuly t 946 Questio¢ 3 How long �s trte fint period, in moaths, fa which ra[es are being set with this woiksheet? , Fi Quesvan 4 How Iong is the secondperiad, in moirths, £oi which ates aze beiug set wiih this wod¢fieet? 05-150 FedaaI Com�mmca¢ons cnmm;ssion Washington DC Z0554 Worksheet 5- Channel Movement and Deletion Projected Period, Basic Tier Eoc ins¢uctioas, see Appendix A of InsFxuc¢ons Fox FCC foim I<40 Approved By O.SdB 3060-0685 Question f lndicate the peuod foc wluch Flils wwkshea is being used (PcG an "X" in tF.e appmpriate box.) Tm�UpPeriod ProjectedPeriod X Queshon 2. Indicate the der foi wiuch tMs wo�sheet is beine vsed (Art an "X" in Ihe apnrovciaze box.) FCC Fonn 7240 Page 1 Micromft Ezce15 0 Vetsion ]aly 1996 Question 3 How long �s the Fvst period, in months foi which retes are being set with 8tis wor]¢¢eee? 1? Question 4 How [ong is the second period in months, fnr whicb mtes are bei¢g set wiih this worksheet? 0 p5-15O �� cA�� cA�.s;on l�'uhingmn, DC 20>54 R'orksheet 7 - Egternal Costs Trae-Up Period For instructions, see Appendix A of Insttuctiorts For FCC Foem 1240 Question 1 Fot wluch tlme period aze you fi72ing out this worksheet? {Peii an "X" in the appropriate box.] Queslion 2 How long isthe 5rs[ peaat, in moaths, for whicL mtes aze being se[ with tivs wolLcsheee? QuGCrion 3 How long is the secomi period, in montiss forwluch mtes are being set with ttis woxksLeet? ApprovedBy OhIB 3060-068i iiue-UpPexiod Projecta3Period X 11 FCC Fomi 1240 Page t Microsoft Exce15 0 Vexsion luly 1996 �Line Liae DescripHon Basic Iiu 2 Iiei 3 Iiet 4 7ier 5 f o5-15a Federal Cammnniwtians Co¢unission Washivgrou, DC 20554 WvrksheeY 7 - EBterual Costs Projected Peritod Fo* insWetions, see Appendix A of Instnutions ForFCC Form 1240 Quation 1 Fos wlvchtime period aze }rou filling out t6is wprksfieet? (Pu[ au "X" in the appmpxiate box ) Question 2 How long is the firs[ period, in months, £or aviach retes aze being sG wifh t6is wozksheet? Quesdon 3 How Fong is the second peciod, in montbs, foi which rates are 6eing set with this worksfieef? A.pproved By OMB 3060-0685 Sme-Up Period Pro�ected Penod X 12 Q FCC Foim [24� page 2 MicrosoR Exce15 0 Version luly 1996 �r;�P r:..,.ne�.,�...:.... Basic Iier2 Tier3 Tier4 Iie:3 � + • Fedeml Commmicatio� Commi�ion Washingtoq DC 205i4 Worksheet 8- True-tip Rate C3targed Foi instructions, see Appendix A of Instrncuons For FCC Foxm 1?40 Question 1 How long is the Inu Up Period i, in mon[Ss? Qvesdon2 How long is t6e 3me-Flp P�od 2, in months? Approved By OMH 3060-0685 - a b c a e Line 7SneDescription Basic Iier? Tier3 Iier4 iiu5 801 DwOZ SSA[00 802 Jan-03 58.61D0 803 Feb-03 58,0100 804 Mac-03 $8.Of00 805 Apa03 S8A100 806 May-03 $8.0100 - 807 !un-03 $8.0(00 808 fuk-03 SR.0106 809 Aug-03 $8.0100 810 3ep-03 $8.OlOQ 8E7 Oci-03 $S.QI00 Sl2 Nov-03 St3 Periad 1 Avemge Ra2e �8.0100 SI4 Fe6-00 . ' S15' Mar-00 816 Apr-00 17 May-OQ 818 7un-0Q 819 Tu7-00 820 Aug-00 821 Sep-00 822 Oct-C-0 823 Nov-00 324 Dec-00 825 Jan-Ot 826 Period 2 Average Rate FCC Fom> 1240 Page t MicrosoR Ezce15 0 Veision J� �gq6 �-150 ADDENDIJM APPENDIX D � X � Z a ¢ � � � Z � ❑ ¢ c�Y � � U a � U � FL d �i ^' p y � N U w �"i, m a E" W O [r `" � H o U y G S � � ��_.. �� oo� �W� �.�-�'y<_�wOV� .n�T00� . _�Ne�i N N}^EO � m O n n N a` N K C� . y q CS "' V O�- P P t�f N M C t+� O O[� � C E-. � V� p y O N 1'- N� N N� N N -'�. -��YN N h� vf M c0 W t� � + .� _ � �7 q.� v� q m O O O C O^�'+ N � � y OYi ��M P a'J � O O O O O Q m m rme�o m o ° — � � � M ° a � .. __ � — p �m � H � o 0 0 0 0 0^ av O N G O O O O O O 0 0„ o N= ri c c o c c o o^� V ��.+ m a i� m z ° m."�n v � 4'�0 eS �Cy� o�aNm� c–�oao o� O � 9 V' _5:. 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V < N N �} 6 � P O�O OJ N V�i O N�D O N�O V V� Q� � o e... p t�o:vi m o:�"�t-n.o O O O�+ � O N N N L^ N W W W' W^ � ti r � h b � � C7 V F4 3 i m m a �(7007(� y A G y� d w m m v� � O d d V V V � `� c v 6 6¢ 6 A V U� E Eva2 � a � a a a a y d u�� p�. ia h T T , ¢ ¢ � � � �, � ti '� v� ° z z z a z w¢i � z P =_= y — -...: a a ¢.:.a. ¢G� c7bd � ` m c�m �n vc V cv a o y S P 0. = 0 T 0 6 S O 0 0 0 0 � Cl � O O N N�� O�� O a++ �� \ �� O O O O O O O O O O O O O O y �� , o a � a V v � N �'1 P [%� T � �¢co V Omc OC�Y � ' �' � � i��ao C t-z�� 0 P N N N N N N N tV N N n a'� m M M e1 c�n C�i a z " O m G OS 50 City of St. Paul O�ce of Technology SS West Keilogg Boulevard Saint Paul, Minnesota 55102 �...�. Karen Johnson, Director Karen.johnson@ci.stpauf,mn.us 651-266-8910 February 18, 2005 TO: Sharon Wiorek Director of Regulatory Reporting Midwest Division Comcast Cable Communications P.O. Box 5155 Southfield, Michigan 48037-5115 FROM: Karen Johnson Cc: Kathi Donnelly-Cohen Dennis Flaherty Lisa Veith Garth Ashpaugh Subject: Form 1240 Report Response We have reviewed your letter of February 15, 2005. With respect to copyright fee adjustments proposed by Ashpaugh & Sculco, in our letter to you of February 10, 2005, we addressed your complaint that you could not replicate Mr. Ashpaugh's copyright calculations because certain information used in his calculation was not shown on the worksheets. It turns out that the information redacted was information Comcast had ciaimed was confidential. While your complai�t lacked credibility in the circumstances, we offered to include the redacted information in the record to eliminate any doubt as to the basis for Mr. Ashpaugh's calculation, and asked you to state "whether (a) you agree that the calculation can be placed in the record; and (b} if you claim that inclusion of the calculation in the record is necessary to provide you appropriate process or comply with applicable law." You never responded to our request directiy, aithough you have an obligation to do so. You begin by stating that the data Comcast relied upon in its own calculation was not confidential, which is of course irrelevant to your complaint and to our letter, since Mr. Ashpaugh relied on different information On page 2 of your letter you do state that the data underlying Mr, Ashpaugh's calculation is "not relevant." Taken in conte�ct, then, we have no choice but to conclude the foliowing: (a) Comcast refuses to allow disciosure of the revenue information Mr. Ashpaugh relied upon in his 05 -t 5C� cafcufation; and (b) Comcast does not believe that the inclusion of the calculation in the record'is necessary to provide appropriate process_ ff we misstate your position on these two points, you need to say so directly, and you need to provide us a ciear release of confidentiality claims. For your information, I include a redacted version of the report relied upon by Mr. Ashpaugh, cleariy marked confident+ai by Comcast. With respect to the programming cost information, we asked for very specific information, inciuding programming contracts. You did not provide the information requested. You have an obligation to provide this information to us, and your failure to do so is of course something we can consider in our final order. Finaily, ignoring our earlier letters to you, you state that "if° stafF plans to recommend a rate order to the Council that it provide you "four days advance notice" and a"copy" of the recommendation. For the record, we advised you long ago that staff intends to recommend adoption of the A&S report. You were given a chance ta respond to the A&S report, and a fair opportunity to participate in the rate-setting process. We intend to take your comments into account. Nothing more is required. Obviously, we cannot provide you with the right, and you cannot demand the right to co-write the final rate order. You aiso continue to complain about the time you had to respond to the Ashpaugh repart. We gave you a chance to request additional time to respond to the report, if you also agreed to provide the City additional time to take a final action on rates. This will confirm you never requested additional time. 05 -15� � t� ASHPAUGH & SCULCO, CPAs PLC Certiiiee Pubiic ficcountants and Consukznts Fehruazy 1&, 2Q05 AS1043-02 Kazen Tohnson, I7it'ectoc Office of'Technofogy City of St. Paui 290 City Hall I S West Kellogg Boulevazd St. Paul, MN 55102 SUBTkCI: 5econd Addendum to the Letter Repoxt of Januaxy 24, 2005 Concexning the �CC Foxw 1240 of Comcast of St Paul, Tnc. filed with the City of St. Paul Febrvary 27, 20i?4 Deaz Ms. Johnson: AshpaugJ� & Sculw, CPAs, PLC ("A&S") was pxnvided the Februazy 15, 200� comments of Comcast (fhe "Lettei") concc�ning otu 7anuazy 24, 2005 letter repoxt (the "itepos�"), the Addendum of Febiva�y 7, 2005 (the "Addendum"} and the City's letter of Februaxy 10, 2005 The following discnssion addresses each paint of the Lettes COPYRIGHI FEES Comcast azgues in the I,etter that the copycight fee expenses aze not confidential, but in fact tfie lettes seems to refei only to info�mation Comcast used in its calculaiions, not infoimation A&S used. I address the significance of'this below, but begin by xeitexating oiu approach I'he Comcast copytight fees included on the Foim 1240 were not based on the company's actual costs in St. Paul, but instead wece based on an allocation of copyright fees foi the region to the City Fox its calculations, Comcast xelied on infoimation that it did not clann was confidential.. As e2cplained in the Addendum, however, this allocation methodology can overstate ar undesstate tine fees actually attn'butable to any system. Therefore, A&S calculated the copycight fee that would have been owed if'St, Paixl were a standalone system, Copyiight payments owed depend on revenues, among o#h� things.. Mat�ial Comcast provided to the City on Octobei IS {Tefet�nced in Ms. Wiorek's letter} sflows Comcast pays a fee equai to 956% of'revenues subject tu t�ee cop}aight payments. We applied tizis pe�centage to zelevant St. Paul-specific revenue data provided to us by Comcast (this is shown at Line 6 of Appendix E to ouz Report}. We did uot s&ow the revenue data used because ComcasY does ciaim that this informution is confidentia] I attach fox' your infoimation a redaeted fiist sheet of'the repoit F relied on as Second Addendum Altachment i; it is cleazly mazked confidenrial, Hence, when Comcast claimed in its Febsuary 4 comments that it could not replicate tha A&S copyiight calculation and that the A&S calculaGon was "�in�own," it was simply I I33 LouisianaAvenue Suite 106 • Winter Park, FL 32789 • 4Q7645202Q • Fax4076454Q70 gashpaugh@ascpas mm • cscuico@ascpas com 05-i 50 � Karen 3ohnson, City of St Paul Febivary 18, 2005 Page 2 of' 3 complaining that we had not disclosed revenue info�mation Comcast had farbidden us from disclosing. Tfus nondisclos�ue should have presented ao burden to Comcast, as it has the revenue data it presented to us In fact, Ms. Wioiek's lettei at one point states ffiat disciosure of the amounts is "noY relevant" In shoxt, to the extent that Comcast is seeldng to imply that my iepoTt redacted infoimation that Comcast nevec claimed was confidential, it is vnnng. To the exteut it is stating its own calculation relied on infoimation that is not confidential, that is urelevant — the A&S calculation was not based on the same info�ation. To the extent Comcast's lettei is intended as a substanrive, additional response to oiu repoxt and not simply a response to yocu Felnuazy 10 letter, it adds nothing to what Comcast said befoie, and does not directly contest otu conclusion fhat the A&S ap�nach more accucately calculates copyrigbf fees atttibutable to St. Pau1. A&3's calculation remains apptopciate for setting cates in oui view. PROGRAMMING COSTS Comcast has now provided updated progamming costs and have ieflected these costs in an Amended Foim 1240 However, Comcast is still making some of the same eirors in its reporting ttiat led to the xecommended adjustrnents in out reparts The programming expense dispute revolves around costs for four channels: WGN, the Weather Channel, CSPA1�3 and the Prewe Gtixide. Ptogrammers oflen cha�ge a base amount to cable ope�atoxs, but then reduce amounts owed by va�ious discounts While A&S agrees with the base subscsibe� aznoun#s xepoxted by Comcast foi WGN, The Weathes Channel and CSPAN, there is no indication that Comcast has taken discounts such as the bad debt discount into account in its calaulation.. Regazding the Prevue Guide, Comcast continues to include expense based on pec subscriber ca]cuIations Howevec, it is otu understanding that the chazge fo� this pxograniming is a flat monthly xate and is not based on per subsciibeT calculations,. Comcast's Prevue Guide calculation also daes not appeaz ko xeflect discounts such as fhe bad debt discount, The City in its Fe6ivacy 10 ietter requested Comcast provide progcamming conttaacts fot any differences it maintains with the A&S calculation Comcast has not producefl the conhacts.. The sheets identified as "invoices" that aze attached to the Lettee are inconsistent with data foT the same pingramming and the same tune periods pinvided by Camcasf to A&S for othet reviews A&S continues to recommend the Ciry reject ComcasYs dete�minatian of psng�aauving expense and accept the A&S calculation. 'I'xcrE-Ur Issu�s While not an issue iaised by youx Felnuazy 10 lettes, Comcasf opted to submit additional comments on ow tcue-up calculation We excluded Novembes 2003 from the true up pesiod beeause Comcast did not have suppoxting data for Novembei 2043 at �e time it filed its Foim 1240 7n its Febivazy l O lettet, Comoast states that it pxovided supporting data for the month of'Novembes 2003 on Octobet 15, 2004, or about eight months after the FoTm 1240 was filed Howevez, the Fotm 1240 instructions requue that the tsue-up only cover peciods foi which data is available at the time of fiting. Rence, we stand by our xecommendation that Novembe� 2Q03 be exctuded from the tru�up calculation �-� 50 Kazen 7ohnson, Ciryof'St Paut Febzuary 18, 2005 Page 3 of 3 Comcasi also identified an additional miscafculation in the Iteport A&S has teviewed the pmblem and agees with Comcast Inadvertently, Nove�nber 2002 was inciuded in the calcula6ons on Appendis E.. A&S has conected this and a Revised Appendix E is attached to t�is lettet repoit In addition, these changes caused chauges to the Foim 1240 As such, a �evised Fotm 1240 is also attached as Revisecl Appendix C. The resulting zates aze shown in Revised Appendices A and B. It shouid be noted that, while Comcast is coriect that tfie inflation factox on Line CS of'the 124� must be updated, Comcast used tke wrong amount. The FCC's iuies state that the 1240 must refleet the latest published inflation faetoc on Line CS That amount is 1.43°/a and not the 3.23% used by Comcast. The revised 1240 included with #his lettet has the coirect inflation factor on Line CS CONCLUSION The commenYs of Comcast have been addsessed above, The identified miscaiculations on Appendix E have been coirected and are refleeted in the attached Appendices. As shown on Revised Appendices A and B, making the above changes decreases ou[ Maximum Pecmitted Rate (` MPR") to �9 95, $10..47 including francluse fees Both amounts include franchise- related eosts A&S iecommends the City adopt these xates We xecommend the City: (i) xeject the filing of' Comcast; {u) adopt A&S's 1240, which is attached as Addendum Appendix C to this letter xepoit; and (rii) approve the MPR of' $9.9460 as iecalculated by A&S. In the order, the City should state that if' any infoxmarion should become known ia the futuxe which would impact these rates, the City may revisit this decision. The City should fu�ther state that (i) this amount ineludes the �'CC Regulatoxy Fee, {2) tlus amount includes ali franchise-xelated costs and (3} tius is the maximum xate allowed for the Basic Setvice'Iiei under tlie FCC's zules. If'you have any questions ox xequue any fiuthex infoirnation, please let me know. Vecy rtuly yours, ASHPAUGH & SCULCO, CPAs, PLC / [:JC��L� � (' Gazth T Ashpaugh, CPA President and Member Cc: Lisa VeiYh, Esquire, City Attoxney Joseph Van Eaton, Esquiie, Mi11er & Van Eaton, PLLC Encloswe Second Addeodum m r3�e 2004 I240 Report �5 -i �v O REVISED APPENDLY A 05-� 5�J r�x�i�y�.�e�i�.n►� ST.. PAUZ, i1'IINAESOTA COMCASI OF SI PAUL, II�iC REVIEW OF 2004 FCC FORR11240 RECOMMEA�DED RAIES Recommeade Rates Rates Recommended Including Line For Fzancbise Fiauchisa No. Iype of'Secvice Apgroval Fees Fees of'S.OQ% Monthlv Rate 1 Ma�mum Pezmirted Ttate - Basic Iiei $9.95 $0.52 $10.47 �j-15b REVISED APPF.NDIX B 05 —I 5� C X C z a 4 a 0 c� m v�i a W F- 4 a W O a. d G � F v � LJ , �z�� O fr�d Q O F z��`� zH�� u � 0 ..a � c U •' N k, Uj C v' O � ,`�' U � w a� � a U O � ar 4 V � d � �� e ��,_ �� " � ' N � o _ q f � � v � y U C � +.�J VI '��. i3 T � � m� Q U v� � z � o � � � � B c v� y � td � � M ¢ � � J tn � � � � � ... a 'n r ` U a G�^., f^1 � U Q w N '�. � � c � a� � � °%�NS � m � ..� U � � � � o ^� R ^p� w , °° U � � � � a ��d� �� G � q ¢ 4 � `� s �o � °' a � N � � e � �Q� ^�� °»,�`� O F m �j v v, e �?. m,°�n` w " � � � �? �n '^z � 6 U � " ^ co Yn q � y °�. U F 0 4L N m � ^ � 0 C Q p a b a � 3 0. X � � � � a ° ° o � � '� G ,C. b [�i � E [L N . O U d N � � a ��8 � o a w � ° U m V `A y � rn v r' U � `�" m U � > U ai v m w F4 a � o� �' m F _ o P�. �u m C (({ O � N . G O _ a z 0 w a Q5--15C� REVfSED APPENDIX C C��= 65� Federa] Commumcatioas Commission Wulvngcon, DC 20554 Appmved by OMB 306QA685 FCC FOIL111240 LTPDAIING MAXIMUM PFRJSIT IED RAIES FOR REGULAIED CABLE SERVICES Cab]e Opecatot: YES NO 1 Does tLis filing involve a single Uanchise authority aad a single communety unit? X lt yes, compfete the fianchise authority inYbrmation below and enteh the associazed CLRD nwvba hece: MN0424 YES NO 2 Does this filing involve a single francBise aathoeity but multiple commun5ty units? X tf yes, ente� ihe assxiated CU[Ds below and complete the &anchise authotity inforanation at the hottom of this page: 3. Does khis Hling i¢vulve multiple Csanchice auWorities? NO lf yes, attacfi a sepazate sheet fot each &xnchise authocity and 'mdude the follovring fianchise authotity infocmation with its associated CUID(s): Frauchise AutLocity In(otmatton: 4 For what pntpose is this Form 1246 beiag filed? Please put an "X" in t6e appropriate box. a O[igina] Fotm 124Q foe Basic Tier g b Amended Fotm 1240 foz Basic Iia c Oiiginal Foxm 1240 foi CFS Fiei d Amended Focm 1240 foc CPS Tier TO 5. Iudicate fhe one year time pexiod for which you are setting rates (the Projec[ed Period) O6/p1104 05131/95 To 6. Indicate f.he time pet iod fo� which you ar e pexfoxming a txue•up.. 72/01fD2 ISl30/03 7. Status of Previous Eiling of FCC Form 1240 (entet an "x" in the approptiate box) YES NO a Ss this the frrst FCC Focm 1?AO fited in any}ueisdicrion? g b Has an FCC Form 1240 been £ted previously with the FCC? g If yes, entei the date of the most recent fil9ng:� (mmlddlyy) YES NO c Has a� FCC Form 1240 been filed greviousty with the Fiaochising Authmity? X If yes, enter the date of tbe most recent filing: 02/26iO3 {mmlddlyyj (�rr) Lm�YY) PCC Form I240 Page t Microsoft Eccet 5 0 Vars�on Iuly 1996 IJ5 �l � Fedual c�mn,unicar;o�a commissioa Wastingtoq DC 20554 8. Sfatus of Previoas F�ing of �CC Fotm 12i0 (enter an "s in tbe appropriate box) Appmvut by OMB 30640685 YES NO a Has an FCC Fonu 1210 been previously filed with tfie FCC? X If yes, entzi t6e date of"ihe mast recenf filing: 12f01f95 {mmfddfyy) YES NO b Has an f CC Form t2tD been previously filed with the Franclvsing Authait}f? X If yes, enter the date of the most recent filing: 1U18149 (mm/ddlyy) 4. Staius of FCC &orm 1200 �ing (entei aa "z" in t6e appropciate box} YES NO a Has an FCCFonn 3200 been previausly filed with theFCC? X If yes, ente� the date filed: 0(mm/dd/yy) YES NO b Has an FCC Focm (200 been previously fi3ed with the Franchising Autho�ity? 7C If yes, enzes ffie date filed: 08lf4l94 (mm/dd/yy) 10. Cable Programmtng Setvtces Comptai¢t Statas (enfer an "x" in the appropriate box) YES NO a ls this form being filed in response to an FCC Form 329 complaint? X If yes, entee tUe date of the complaint� {mm/drUyy) YES T1Q 11 Ts FCC Form 1205 Being Tncluded Wifh Ihis Filing X 1Z.. Selection ot "GOing Fo�ward"' Chaa»e3 Addition MeE6odology (entei an "x" in the appropxiate box) �Check here if yw are asing the origina7 rules [MAAKUP MEIHOD] �X Check hae if yo¢ are usmg the new, altemarive rules (CAPS ME iHOD] [f using the CAi'S METHOD, have you elected to revise recoveiy foe channeIs added during ihe period May I5, f 994 to Dec 31, 1994? YES NO X 13.. Headertd IIpgrade MethodaFogy �'NOT� Operafors must cert� m the Commission their eligibellty to vse this upgrade methodology nnd atiacA an equipmend list ond depreciation sch¢dale �Check here 4f you aze a qualifying sma31 system using the sveamlined headeod upgade meffiodology Part I: Preliminarv Infarmation Module A: 1VIaJCimeun PexwitCed Rate From Pr evious Filing a n � escriolian Basic Iier2 iier3 CSment Macimum Peimitted Rate Line �escription Average Subscribeiship Foi Tme-Up Period 1 Average Subscribership Fo� Tiue-Up Yeriod 2 Fslimated Unctaimed IvflaHon: ForProjeciulPeriod Swiiching From t210 To 1240 $10.0734' ' � Subscribership a b c d Sasic Iter 2 Iier 3 Iiec 4 54,224 54 Unclaimed i nfla ti o a U� egu t at e d Opeiaror Responding to Itate Complai�R iuflafion EacEO� For Tnte-Op Period I[Wks Ij I Fa FocTme-Up Period 2[Wks t] C1�nem FCC inflation Factor FCC Form 3?AD page 2 Microsofr Ezcei 5 0 Ve�ion J¢ly 1996 05 -1 5Q Fedeml Commuoicarions Gommission Washington, DC 20554 s Clu�evt Fatemai CosYS Segment G7uiear Nla2mip Method Segment Ctierent CLa�el Movement an8 Deletion Segment Curcent Tiue�Up Segment CUrtent Inflation Segment Base itate [A]-DI-172-D3-D3-DS-D6-D7] Module D: Calculatine the Base Rate $6.0000 32.316b SO.WW $O.D000 $O.OWO $1.7617 $0.1048 $5.$903 Part II: True-Un Period Module E: Timing Infoxmation 4Vfiat Type of?me-Up Is Being PeRormed? (Answa "I ",'2", or "3". See Inmuctions foi a descxiption of these N"1", go to Module L If "2", answu E2 and F3. If "S", answex E2, E3, E4, and E5. Nimm6ei o Mon ia tfie Tnie-Up Period 1 Number ofMomhs benvcen Uee end of Tru�Up Period I a¢d the end of the most recen[ Projected Period Numbes of Mo�hs inTme-Up Period 2 bligble fa Interest Nwnb of M True-[Jp Period 2lne]igi6le £or Intetest � Appmved by OMB 3060-0685 e ei 5 Mndule F: Mabimum Permitted Rate For Tx ue-U Period 1 a b c d e Line LioeDescriptioe Basie Iiec2 Iier3 Iiet4 iier5 Fl Caps Method Segment For Ttue-Up Period I�Wks 2] $0,0000 F2 Marlmp MetLod SeguentForTmcUpPeriod 1(Wks 3) $0.000� 3 Chan Mvmnx DeleN Segmeni Foi Tme-LIp Pe�od l(Wks' MS] F4 True-Up Period I Rate Eligible For Znflaiion [D8+F1+F2+F3] $5.8903 FS ln9arion Segment for Tma-Up Peliod 1[(F4xC3)-F4] $0.0905 F6 HeadendUpgradeSegmentFOrT�ue-UpPedodI[Wks6J £7 8xtzma] Cos[s Segment Foc TmaVp Pe:iod 1[ Wks 7j $2.1597 FS True-Up Segment Foi Tiue-Up Period t $1.7612 F9 Mvc Prnn Rate fo: TmoUp Penod 1[F4+FS+F6rF7+F8] $9.9016 Modaie G: Maz'vnum Permitted Rate For True-U Period 2 a tr � a e Liae �.�neDescripROn Basic Iie� 2 Ite� 3 Iiet 4 iier5 Gl Caps MetLod Segmeat ForTme-Up Period 2[Wks 2] G2 Mazkup MetAod Segment For Tme-Up Period 2[Wks 3] G3 C6an Mvmnt Detetn Se�ent Fo: Tnie-Up Period 2[Wks' 4/SJ Cu} TU Period 2 Rate Eligib]e For Ijd7aEioo [D8+FS+GI+G2+G3] GS Inflation Segment foi True.LJp Period 2[(G4*C4}G4] Flcadend [Jpgrnde SegneM Foz 1'cuaUp Period 2[Wlcs 6] G7 Exiemat Cosfs Segment ForTruaUp Period 2[Wks �j GS TmaUp SegmeM Fur Tme-Up Period 2 G9 Max Pem� Itate forTrue-C3p Period 2[G4+GS+G6+G7+G8] FCC folm 1240 Page 3 Microsoft Exce15 0 Vers�on July 1996 d�-G 50 Federel Commwicaiioas Commission Approved by OASB 3D60-O685 SVasLington, DC 20554 Modu3e H: True-ti Ad'ustment Calcnlation a n � a e Line I.ineDescription Basic 7ier2 Iier3 IierA iier5 AdJnslment For Trao-UQ Period I ffi Revenue Fiom Period 1 4,777,654.98 H2 Revenue From Maz Pe�ued Rate for Period 1 5,905,941.05 tI3 Tme-Up Pe`iod 1 Adjvshnemt [H2-Hl] 57,128,286.07 F14 Inrecescon Pe�iod i Adju.amient SL13,792.�2 Adjustment For Tnec Up Per:od 2 HS Revenue From Pedad 2 Eligbte fos Interest H6 Revenue Fmm Ma�c Pecm Rale foi Period 2 IIigible Fo: Intetes[ H7 Periad 2 Adjustment Eligible For [ntau�st [H6-HS] H8 Interest on Period 2 Adjustmeat {See instmctions for fotmu]a) H4 Revenve From Pesiod 2 Ineligibie foc Tnterest H10 Revenue From Mac Penn Rate fo* Period 2Ineiigible for Inte HI 1 Period 2 Adjuslmem 3nclig�ble Frn i�rierest [H10.H9] To�l TruoUp Adjushment HI2 Psevious Remaining TmrUp Ad}ustment HI3 ToEallYUCUpAdjustment[H3+H4+HT+HS+H11+H12] $1,242,09879 H14 Amomrt of Tme-Up C[aimed Fof 77ils Projected Period $1,242,078.79 HIS RemainingTnea-UpAdjusenent[H13-Hi4] $0.00 Par# III: Praiected Period Cettification Stafement WILLFUi FALSE SiAIFMENIS MME ON IHIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONM6Ni (U.S. CODE IlTLE 18, SECIION ]001). ANDJORFORFEIIURE fU S CODE. IIIiE 47 SECIION 5031 'h Signatuce ate Filin Si edB JefYre S.Ossowskl 2/78/2004 Name and SiE]e of Peisoo Completing this Focm: Jeffrey Ossowski, V.P. Fiaance MidWest ISivision Ielephone auml�er Fa2c Numbei S6arou Wiorek 2A8.233.4740 FCC Fotm 1240 Page4 Mieroso8 Excet 5 6 Vession 7uly t996 Note. The maximum perneined rare�gures do not take inta ¢ccount axy �efund liabtliTy you r�y have If yau hare previously been adered by tke Commusion oi you� lacal franchi.sing auihosity to make refunds. you a�e not relieved af yow abfigonon to muke such iefands even if fhe pz�mitted �ate is higher lhan the contested rate or your Gwrent r�r1e �5 5 b Fedemi Communicatioas Cnmmission WuhiuBmn, DG 2a554 Worksheet i- True-Up Period Inflation Fo: inseuctions, see Appendix A of Insttuctions Foi FCC Foxm 1240 Line Period FCC InflaSOn Factor 101 Moirth 1 1.78% 102 Month 2 239°h 103 Mortth3 239% 104 Moach4 234% 105 MeaJx 5 1.�0% 106 Month6 lA0% I07 Nionth'l 1.00% 108 Month 8 1.66% 109 Momh9 1.66% ll0 Moutt 10 1.66% Il l M9ntL I l 1.50% ll2 Monifi 12 113 Average Snflation Facto� for 1 O1S4 True-Up Period 1 114 Morth 13 115 Month 14 116 Monih 15 117 Momh 16 1I$ Month t7 119 Month 18 120 Month 19 12] Month20 122 Month2l 123 Month22 124 Month 23 125 Month 24 12b Average i¢flation Facror foi Zn�Up Period 2 Appmved By OMB 3060-0685 Dec-02 tan-Q3 Feb-Q3 Mae03 AprA3 May-03 7un-03 Ju[-63 Aug-D3 Sep-03 Oct-03 Nov-03 FCC Form 1240 Page ! Micwsoft Exce[ 5 0 Version Jdy 1996 Federal Commwicatioas Commission Wastington, DC 20554 Worksheet 3 - Markup Method True-Up Period, Basic Tier Fo� inttiuctions, see Appeodix A of U�structions Foc FCC Foim 1240 Qu�-voa 1 7ndicate the period fos which this wolksheet is 6eing used (Puran'R" in tfie appropriate box ) C��J � Approved By DMB 3060.0685 7me-UXPerio Pro�ectedPeriod Question 2 Indica[e the tiei fm which this worksheei i5 being used (Put zn "X" in t6e appmpriate box } 83sic Tia2 Tier 3 Tier 4 Tier 5 X Questiou 3 How Loug is the fustperiod, in mouhs, fot wPuch mte� aze heing set with ffiis worksheeC? it Quesbou 4 How long is the xcond period, in mouths, for which ea[es are being set with this worksheet? FCC Fovn 1240 Page I MicrosoR Exce15 0 Version IWy 1996 C�5-I 5C� Fedeml Commuvipdovs Co�ission Wasiungton, DC 20554 Worksheet 3 - Markup Methad ProjecYed Period, Basic Tier Fot instmcuons, see Appendiz A of inshuclions For FCC Folm 1240 Quatioa I Indicate the period for wlrich rlvs workshett is being used (Put an "X" in the appropriate 6oz ) Approv� By OMB 306D-0685 Ime-Up Peri Projecred Pedod X Question 2 I�icate t6e liu frr wluch this workshcet is beiug used (Put an "X" ia the appNpriate box ) Basic Sier2 Tier3 Tier4 Tieri X QuesROa 3 Aow long is the firsc period in monrhs, #or wbiph rates are beang set with tfiis worksHeet? 12 Question 4 How long is the second puiod, im m�ntLS, foi w}tich iaies are being set with this worksheet? 0 FCC Form 1?AO Page I Microsoft ExceF 50 Veision Juiy 7996 FedeatCo �°�oosCominission Washiayton, DC 20554 IABLE A NON-£XIERNALCOSIA�3USTME.NiFOR CHANGESINCNANNELS 05-� 5d Apgmved By 011B 3060-0685 FCCFOrm I240 Page 6 Microsoft Excel 5 0 Ve�sion Iuty (996 Fedeal Commuvications CAmmissian Washington, DC 20554 Worksheet 4 - Residual True-Up Period For iasWCROas, see Appendix A otlnshuctioms Fox FCC Faim 1240 Queslioa 1 Indicate t6e period for wluch ihis wosiaheec is beingused (Put an "X" in the approp�ate box ) Pe�iod One �5-i 5a Approved By OMB 3066-0685 Ime.UpPeriod ProjectedPeri X 401 AverngePermitkdCfiazge 584160 402 Average Extemal Costs 52 1597 403 Average To�al Per C6annel Adjus�rnts aRer 5/14/94 �0 000� for Chaimels Adtled Usm Ca s Method 404 Averege Iiec Residual [401402-003] %5 8503 4Q5 Aveeage Channels pei Regulated Iier 28 0000 406 Average Caps Method CLannels pei Iiet 0 0000 407 Avcrege Remaining Channels [405-406] 28 400o 408 AvemgePeriodlPerChannelResidual[404l 502089 409 AveragePermittedChatge 4l� Avernge Eztemal CosGs at � AverageTotalPerChanndAdjustmen4saRer5/14l94 £or ChsnneLs Added U" Ca s MeB�od 412 Average Iier Residua� [409-610-411] 413 Averege Channels per Regula[ed Iiei 414 Avernge Caps Method Chaanels per 7ier 15 AvexageRe�oeiningChannels[413-4143 416 Avemgc Pedod 2 Pu Channel Residual [4f2/415] FCC Fmca 1240 Page I Microsoft Excel 5 0 Veisiort 7u€y 1996 Federal Communications Coivmission Washi�ton, DC 20554 Worksheet 4 - Residual Projected Pe2iod Question I Indicatetheperiod foi which this woc35he� is being aseil (Put an"X' in the appmgriate Soz ) O� ( 5a Approved By OMS 3060-0685 inc�UpPeriod ProjectedPeriod X a b c d e Line LineDescri tion Basic Iier2 Iier3 Iier4 IierS PeriodOne 01 AveragePeimittedChazge 5700734 402 Average Extzmal Costs S1 9897 403 A°e[ageToplPerChansselAdjuslme�saRerS/]4/94 focCha¢ncLsAdda3Usin Ca Method 404 Avemge Iie� Residual [401-402-403] $8 0837 5 Avezage Claaimels per Regulated Yier 28 0000 406 AvengeCapsMethodC6anneisperIiei 00000 tr7 Avenge Remaining CLannels [405-406j 28 0000 408 AveragePeriodlPerChamielResidual[4C4/407] 302887 FCC Form [240 page 2 Microsoft Excel 5 0 Version Iu3y 1996 Federa7 Communicatians Commiaion Washington, DC 7A554 Worksheet 5- Channel Movement and Deletion True-Up Period, Basic Tier Foc ins¢uctions, xz Appendix A of �nst�ucuoos Foc FCC Foim F240 Z��-! 5 Q Approved By OMB 3060�685 Quesrion ! Indicate Yhe peaod fi�rwhich thu wo�eet is 6eing used (Put an "X* in the approptiaCe box.j Tme-Up Period Projected Period X Ouestion2. Indicate the tiu foi whichthis worksheet is Sein¢ use3. (Put a¢ "X" in the aaoronriaxe box.l FCC Foim I240 Page 1 Microsoft Excet 5 0 Ve[sion )u]y 199b QuesCion 3 How long u tLe fi:st penod, in mo¢ths, fo[ which rates are being set with this woiicsheei? Il Questian 4 Flow long is tSe second period, in montl�s, for wlach rates are being set with this workshcet? ._ __ __ Fedeml Communicazioffi CAIDalissron Washingtw, DC 20554 Worksheet 5- Channel Movement and DeIefion Projected Period, Sasic T'ier Foc insVUCtions, sec Appeadiz A of Inshuctions Fos FCC Fo�m 124� 05-{ 5� Approved Sy OhSB 3060-0685 Question 1 Iadicaze the period for wlvch tivs worMheei is beulg tised (Put an "X" iu the appropoa[e box.) Tme-Up Peood Projected Period ----- _ _. _ Ovestion 2. Indicate the tiee foc wlilcL tLis woiicsheec is beine used. (Put an "X" in tLe aporovriate boxJ PCC Fo�n 1240 Page 1 Mimosoft EzceE 5 0 Ve�sion Tuly 1996 Question 3 How long is the fisst period, in mon[Ns, fox which ates are being mt with iivs wocksl+eet? l2 Question 4 How long is [he secoad period, in monflzs, for which rates aie being set wiih this wo(ksheet? D F�-a co��ar;o� co�;� Wastting[on, DC2D554 �Vorksheet 7 - E�ternal Costs True-Up Period For insuuctiaes, see Appendix A of Ias Wclions Fm FCC Fmm 1240 Question 1 For wlrich time period aze you fi[ling ov[ this worksheet? (P¢t an'R" in the appropriate box ] Quescion 2 How long is rhe fixst period, in m¢¢tFs, foi wtuch retu aze being�[ with this worksheetY Queskon 3 How long is the second paiod, in mouths, #oi w6ich ntes are being set witfi tlus worl5heet7 D5-f 5O Approved By OMB 3060-0685 Frue-UpPeriod PmjecteBPaiod X 12 FCC Fo�n 12J0 Page i MicrosoftErcelS 0 Version Juty 1996 �Line LineDescrinfioa Rasic Ii¢r 2 iicc 3 Iiv A Iier 5 � FWerel Commnnicz[ions Commission Washington I7C 20554 Worksheet 7 - �zternal Costs Projected Period Foc iaswctionc see Appendix A of Inskuctions For FCC Foim 12A0 Question 1 Fo: w7vc6 Uwe period are you fi�t'ne out fhu worlebeeCl [Rrt an"X" in t6e appropriate box ] Quesaon 2 How long is the first peiiod, in moat6s, for wluch ntes are being set with this wo�6sheet? Question 3 How tong is the secoad petiod, in months, for wlrich m[es are being set wiih i3us worksheet? �5-15 a Approved By OMB 306P0685 Ime-UpPeriod PmjectedPeriod X 12 0 FCCFOrm I240 page 2 Microsaft Ezcet 5 0 Version July 1946 Federal Communications Commission Washington, DC 20554 Worksheet 8- True-Up Rate Charged Fos instmctions, see Appendix A oflnshvctio� For FCC Fmm 1240 Quution I How lang is ihe Iaualip Period 1, in montbs? Quation 2 How 3ong is the 2n�Up Period 2, in mo�s? �5 t �L� Apptoved By OMB 30fi0-0685 ��i a b c d e y�� LineDesCriptian Basic Iier2 Iie�3 Iier4 TierS 801 Dec-02 S8.0700 802 lan-03 $SAi00 803 Fe6-03 $$A100 804 Maz-03 %8.0100 805 Apr-03 $8.0100 806 May-03 $8.0100 807 Jun-03 58.0100 SQS Jul-03 58.0100 809 Aug-03 $S.OI00 81Q Sep-03 $SA100 811 Occ-03 $8-OtOQ 812 Nov-Q3 813 Period 1 Avemge Rate $8.0100 8t4 Fe6-lHI 815 Maz-40 816 Apc•00 � 817 MayAO 818 7un-00 8t9 7u1A0 820 Aug-00 . 821 Sep00 822 Oc[-00 S23 Nov 00 82A Dea00 825 Ian-01 ffi6 Peeiod 2 Avenge Rate FCC Fomi 1240 Page I Miccosoft Excel 5 Q Vecsion Iuly t996 0�-�50 REVISED APPEN'DIX E 05 �5a � � X � Z � y N Q C ti > C ❑ O m N a d V � £ � U i�� Y G � ..i q � N b p F O � � Gs� V O 1 V �+ ° o U c 3 � 7 a N U c � � a � w v .O .� a 0 � T � d O V U �` H � � r J� � Q P n1 N ,� 0 N N O � � � T v� vt h � (/i � C 69 M v' (� N� N��OQ h � CS N y N t� c � v.�.. � P � p � F — t9 N �n V1 � (9 O o9 V �� c N m y» o o N m m � �. o �� e •`n o � � -: as ci y o' m m �» n » e o v r c'�i c"+ °� rn�' v �°� = m v� N p y� ^ � N „ �� N � P .f O Q � � � < O O t^ M W m Q� O�O M Y�1 m m 4� P V� N < v�j � p N � W K N N � K U O q � eA � � r� � V N �� O; O F aR��O N � O O � N N t v � P � O �V � N N N Vi a C m � � O � @ � N v� N M d`D O l� � ^ y �� 0. G� N O� @ v H � 0 v .� O � „ � N N f9 N � V 0 � � � m � � � � � � ° c va iy v �� rn t � � o v a`� � v ^ c O O � N N N N � � 6's � Q � w � o; � "' m a M o � a � o.n � a �+, rn rn `° `°. � °- " � `� P v O O N N W N N � � y C P P G O w w r °O < � � G � N m<�� b Ct M �; � O O IF K. v ... w O� m O N N Vl N � h 69 � a a m w` �+ � M � v V F r N � V N Q N�� N O� �e � o � N � � W N N f9 fy' N . v.... M .' ' Q M C � O v9 N � ... �. l� b� W O G� � `O � ^ P C� l � N � v�� b p� N O N � � Vi N N '�f � W J� 1`� � vl N � M � H ¢� O G � N � N O � L O � � � B t a � .^a _� U ' , a °' c a o q q fA � R] .] c °' � � U � � c o � � Z W �" a' q N Po o y Y U o � � ', m�� O. % T C C � m�� 5 � � n�t�` mti�vi � � � v e V F o s ' � `i � v ,+ � � . � v, .� _ E N� � n c ,�. �, A _ � c _ a ' 8 5 c�° a� o m � m ECi °„� m � w K om �.n � ��pU "L.n v e P S��$ v v C�� 8^ >`, 36 oU� � i i>_ .� Q�P L'Z 6U ."v 4'R F V W� F �m mt] W W W t� F.�. W W f I-� P`, o'3'3FUY S. �� - c� e� 'K v� �o F M rn�.^ �.�'.. �� . ��[�V a`I N c�i N N� e�v N �z 0 R a 05-� 5d SECQNA ADDENDUM A'I°L'ACHMENT 1 o5-t 5� � E � C a a m N D � z H 0 2 u W 9 L 'f U a m ia v q a i ` � c� � x � �+ � w w m � w a s+ w z m H z � s E y � =J � h E � O U m H A G3 z � F � 2 C� O Cr� U � 6 o m 0 w V H > x w w � 0 � Gl U K H E a �h � � �_- � ,,� � � � 0 c� Z�5 �o AFFIDAVIT OF PLJBLICATION STATE O� MYNNESOTA COUNTY OF RAIVISEY Julie Robbins Being duly sworn on oath, says: that she is, and during all times herein state has been, Cierk of Northwest Publications, Inc., Publisher of the newspaper known as the Saint Panl Pioneer Press, a newspaper of general citrulation within the City of St Paul and the County of Ramsey. Pnbfic rimi�� The Publi< ts heveb noH_ figd fhat the GBy � unc I pF SG Paul. Minneso�a. will ' be acKng n the drd?r� seNing <able tele.imon ' r res For basic servfce Pau�ged Comcasro fCC Form }34V b{ed iebrvo�Y, 2004 on Pebruary 23, 2005. - That the notice hereto attached was cut from the columns of said newspaper and was printed and published therein on the {OIIoR'lllg C�1YetS�; Li�' day of February, 2005 NewspaperRef/AdNumber# 28590 �,,.)�,.-c 9�=s�t'iG Subscribed and sworn to, before me this 16`� day of February, 2005 � � �—._� �" O LIC Washington County, Minnesota My commission e�cpires January 31, 2Q10 � 9CAY Ni. RITCti1E �' Notary Pcsblic41U1innesota � - � tMCommtsetanFxpu�aarisr,zoto From: "Wiorek, Sharon" <Sharon_Wiorek@cable.comcast.com> To: "'Karen.Johnson@ci.stpaul.mn.us'" <Karen,Joh�son@cistpaul.mn.us> Date: 2(4/2005 127:13 PM SubjecY: Comments to FCC Form 1240 Report by A&S Attached please find the comments io ihe Report issued by A&S for the annual FCC Form 1240 fied with the City on or about March 1, 2004.. Please feel free to contact me if there are any additional questions. «St. Paul letter 020405 final.pdf» Sharon Wiorek _ Comcast Midwest Division 248.233.4740 CC: "'Garth Ashpaugh"' <gashpaugh@ascpas.com>, "'dennis.filaherty@ci.stpaul.mn.us"' <de�nis.flaherty@ci.stpaul.mn.us>, "'lisa.veith@ci.stpaul.mn.us"' <lisa.veith@ci.stpaul.mn.us>, "Donnelly- Cohen, Kathi" <Kathi_Donnelly-Cohen@cable.comcast.com> 05-15 O �omcc�st � Com�s[ Gbie Commvniwtions, Inc. Midwest DiviSwn P.O, eoz 5155 ' Soathfield, MiWgan 4803]-5115 (248) 233-4I0a February 4, 2005 Ms. Kazen Johnson Office of Technology City of Saint Paul 290 City Hall 15 West Kellogg Boulevaxd Saint Paul, Minnesota 55102 Re: Review of the FCC Forms 124D of Comcast of St. Paul, Inc. filed with the City of St. Paul February 27, 2004 Deaz Ms. Johnson: Kathi Donnelly-Cohen has forwarded your January 25`� memorandum and attached consultant's report on to me for comment and response. As referenced in youz memorandum, we provided you our Form 1240 rate forms on or about Mazch 1, 2004. Under FCC rules, the City, though not required to act at all, has unril February 2S, 2005 to review and act on the Form with a rate arder, subject to first providing Comcast a reasonabie amount of time to review and comment on any proposed findings, reports and rate order. The City of St. Paul's ("City") deadline for receiving comments &om Comcast of St. Paul ("Comcast") as noted in your above referenced memorandum is February 4, 2005. We believe that the allotted time to respond to the report hardly constitutes a"reasonable" amount of fime particulazly when the City has had the last eleven months to review the filing and especially given that we have still not seen a draft proposed rate order. Nzvertheless, we are providing these comments in response to the report (the "Report") issued by Ashpaugh and Sculco, CPA's ("A&S"). We would like to note at the outset that we do not believe the review period afforded to the City was intended to "recreate" Yhe FCC Forms in a methodology that comports with the consultant's own goals as was cleazly the case here. Instead, the tune was intended to review the data supplied in the form and the supporting documentation in order to determine whether it was accurate and xeliable, and to request any additional information that was necessary to make such a determination. � ' A fundamental principle of cable rate regulation is that the local franchising authoriry must pxovide a reasonable explanation for any adverse rate ruling. See, e.g., Century Communications Corp., (Warrick Counry, II�, 1� FCC Rcd_ 6963 at ¶ 6(1999) (The Commission Le}ected a local rate order that failed to articulate a reasoned basis for denying a requested rate increase. "The purpose of xequiring a written order is to protect the due process rights of the cable operator by explaining why the rate was disapproved and providing a basis to refile the zate or appeal the decision to the Commission."). See also 47 C.P.R. § 76.936 (requiring local franchising authorities to provide a written decision for any adverse niling). T4ie A&S Report completely failed to meet this basic requirement. 05-65Q Ciry of Saiut Paul Request For Infornrntioa Response Mazch 1, 2004 FCC Form 1240 We submit that the review conducted by A&S did not result in a detezmination of whether Comcast's rates weze reasonahle. To this end, Comcast strongly disagrees with the Report issued by A&S and disputes the "revised" Form 1240 that was attached to the A&5 Report. Durin� the course of our review of A&S's revised Form 1240 we determined tfiat A&S changed and revised every component of the form and did not complete the form in a manner that was consistent with the FCC's Form instrucrions and associated rate orders. Each section noted in the A&S Report is discussed below and explains why A&S's Form 1240 should be disregazded by the City as a tool for measurin� the reasoaableness of ComcasYs rate filing. True Up Period The Report states that November 2003 was removed &om the True-Up Period because of a lack of detailed information for that month, and therefore the number of True-Up months was reduced from 12 to I 1. However, Comcast provided information for the entire True-Up period (specific sections to be addressed later in this document). Comcast does not understand why supporting information for November 2003 was disregazded, But even assuming that it was reasonable for A&S to have changed the true up period from 12 to i l months, A&S was inconsistent in its approach -- 11 months was used for the True-Up Period for Worksheet 1— Inflation, Worksheet 7 — Eatemal Costs while 12 months were used in Worksheet 8— True-Up Rate Charged and on Line F8 —True-up Segment for True-Up Period 1, in the A&S Form 1240. The instrucrions for the Fortn 1240 state that Line F 8 equals the amount from the previously filed 1240 divided by the True-Up subscribers divided by the number of months in the True Up period. Tn A&S's Form 12A0, Line F8 is divided over 12 months, not 11 months as stated in the Report. A&S's methodology does not comport with the FCC Form 1240 instructions. The True-Up Period, as entered into ComcasYs FCC Forsn 1240 and supported by the documentation supplied to A&S should be accepted as filed particulazly because Comcast provided 12 months of true up data. Number of Subscribers The subscriber numbers used in ComcasYs FCC Form 1240 were supported by the CSG billing reports and supplemental worksheet. A&S's recalculation of the number of subscribers in the True-Up Period includes subscribers that do not pay for service for numerous reasons, otherwise knorvn as free subscribers. A&S states that it is unfair for paying subscribers to subsidize the costs for free subscribers. That assumption is incozrect as there are no costs in the 1240 Form for free customers. Monthly programming costs, as previously explained, are based on the priar two (2) months average of paying customers including a calculation fox "bulk" customers. Detai]ed reports for programming costs were sent to A&S in the Company's response on November 11`�. The warksheet prepared by A&S and included in the Report shows a number for Bulk customers with no indication where this nutnber originated. Comcast identified and suppor•ted the True-Up subscribex number of 52,929. Therefore, there was no justifiable basis for any recalculation by A&S. P�ammine Costs A&S again employs inconsisfent methodology in revising the programming cost section of Form 1240. As discussed above in the previous section, A&S included the free customers in its calculation of programming costs. However, in the worksheet included in the Report which was Page 2 d5 Ciry of Saint Paui Request For InfoimaTion Response Mazch 1, 2004 FCC Foim 1240 used to recalculate the pro�amming costs, A&S has appazentiy removed the free subscribers from the calculation. Programmin� costs ate not paid on free subscribers and should not be included in the calculation. Moreover, although A&S was provided with 12 months of mvoices in support of the programming costs, instead A&S admittedly used data from other soucces in lieu of the data supplied by Comcast fot the St. Pau1 system. Because the detailed informarion regazding the proganaming costs aze covered by a confidentiality ageement, and there is no other identificarion of the costs in the Report, Comcast cannot recreate or understand the basis of the A&S calculations. If A&S disputed any or all of the programming amounts used in the original Form 1240, it should have communicated 'ats concems to Comcast prior to the issuance of a final report to the City. We fmd no basis for A&S to use costs that do not pertain to the St. Paul system. The progamming costs, as entered into ComcasYs FCC Fozm 1240 and supported by the invoices supplied to A&S should be accepted as filed. Coa ri t Fees The attachment labeled as Appendix E depicts a calculation for Copyright Fees. However, it appears that A&S arrived at a Tota1 for Basic Revenue but used an unknown calculation and proceeded to multiply the Baslc Revenue by .0956% to ascertain a copyright eapense figure. In ComcasYs response on October IS`�, actual Copyright Statements of Account were provided to justify the amount on Line 703 of Worksheet 7: Since the Statements of Account encompass more francluse areas than the CiTy of St. Paul, an allocation worksheet was also provided to show the calculafion for Copyright Fees. The allocation af Copyright Faes was made in a reasonable and consistent manner. Comcast disagrees with the recalculation of Copyright Fees by A&S, considering actual payment infotmation as required by the Form 1240 for the entire True-Up period was pmvided. Copyright fees, as entered by Comcast into the FCC Form 1240 and supported by the documentafion supplied to A&S should be accepted as filed in Worksheet 7. Franchise Related Costs On Pages 1 and 3 of Appendix D, A&S attempted to recreate ComcasYs calcnlation of Franchise Related Costs ("FRCs") for the True-Up Period and Projected Period. These calculations aze titled "per ComcasY s filed 1240", howzver they aze not an exact representation of the FRC calcutations Comcast sent to the City with the 2004 FCC Form 1240. See Attachment #10 for a copy of ComcasY s FRC Worksheet, which was sent with the Form 1240 and A&S's misrepresentation of ComcasYs calculations. Also, please see below for a further explanarion of the differences found by Comcast. A&S's calculation of the "True-up Period Return and Recovery" for Item "B" on Page 1 of Appendix D differs from ComcasYs calculation. A&S calculated a"True-Up Peziod Return and Recovery" of $21,503.87 for "B" and Comcast's calculation was $20,758.34, a difference of $745.53. A&S's Report contains no expianation as to why Item "B" was changed and does not explain the method that was used to calculate their number for "B". Comcast was unabie to recalculate the numbers that A&S provided for Item "B" and is unaware how A&S arrived at this number. The change in "B" caused a change in the total amount of FRCs. A&S's calculation for the ToTal True-up FRCs is $1,278,423.91 and ComcasYs calculation is $1,277,67838, a difference of $�45,53. Page 3 d5-� 5a Ciry af Saint Paul Request For Tnformation Response Mazch 1, 200A PCC Focm 124D Also on Pa�e 1 of 4 of Appendix D, the "iemaining months to be recovered at the bea of the true-up" differ from ComcasYs numbers for Items "B", "C", `D", "E", and "G". As this page is purported to represent "per ComcasY s filed 1240," it does not make sense that these numbers were changed. Further, A&S provided no explanation as to why these numbers were changed. On Page 2 of 4 of Appendis D, A&S attempted to recreate ComcasP s calculation of FRCs for the Projected Period. Although the information on this page is labeled "Per ComcasYs Filed 124Q" almost all of the infortnation on this page is different from ComcasYs Calcularions of Projected FRCs. A&S was obviously using a completely different calculation and therefore these calculations do not accuxately represent the numbers "per ComcasP s filed 1240." A&S used a different "prior accumulated recovery" in order to calculate the "projected period retum and recovery: ' Therefore, the numbers calculated in items "A", "B", "C", "D", "E", "F", "Cs", "J", and "K" do not agree with any of Comcast's calculations for these items. The sum of the items in this coluznn do not foot to the total displayed at the bottom of the column. However, the "total projected FRCs" fie duectly to ComcasYs "total projected FRCs." Comcast has no reasonable explanation and A&S's Report provides none, as to why a different "prior accumulated recovery" was used or why the nuwbers were calculated differently. In addirion, although Tl�is page is titled Projected Period, the column headings on this page are fitled "true-up period" which furthers the confusion. Again, on page 2 of 4 of Appendix D, A&S included the Projected Annual PEG Grant of $59,612.65 twice in the Projected Period (See "H" and "L"). The amount was included once in ComcasYs calculation of the projected franchise related costs. This item should only he included once because the annual PEG Grant of $57,87636 was fully recovered in the True-up period and is the actual amount shown assigned to item "H." Item "L", which equals $59,612.65, is the only annual PEG Grant that should be included in the projected period. � - On Page 3 of 4 of Appendix D, A&S provided their calculatiott of FRCs for the True-Up Period. A&S used an 11 month True-Up Period to calculate Items "A", "$", "C", ``D", "E", "F', "G", "J", and "K". However, for items, "H", "I-1", I-2", "I-3", and "I-4", A&S used a 12 month True- Up Peziod. This is confusing and inconsistent with the statement that only 11 months were to be used by the consultant. Also, the True-up Period at the top of the page is indicated to be 12l1(02 to 11/30/03, which represents 12 months, not the 1I months that A&S claims that Comcast should haue used. On page 4 of 4 of Appendix D, A&S provided their calculation of FKCs for the projected period. Based on trial and enor calculations, it appears that A&S did the following: Item "A" will be used as an example. The consultant used the "Balance at 12/02" of $11,021.45 divlded by the "No. of Months Remaining in Amortization at 12/1f02" of 67 which is equal to $164.50. Then the amount of $164.50 was multiplied by 165 months to come up with a recovery of $2,714.24. The recovery of $2,714.24 was then added to the "prior accumulated recovery" of $88,978.55 to arrive at $91,b92.79. The recovery of $91,b92.79 was used to calculate the FRCs for the projected period. A&S provided no explanation regarding the fact that they used a 16.5 month time frame, why the number of amortized months was changed to 67 or why they calculated a different recovery to use for the projected period. Further, on page 4 of Appendix D, the ToYal Pzojected FRCs per A&S is understated. A&S shows total FRCs of $363,166.97, which is the sum of items "A", "B", "C", "D", `B", "F', "G", "H," "P', and "K". This does not include items "L", "M-1", M-2", M-3", and "M-4." Further, items "L", "M-1", MM-2", M3", and "M-4 should have been included in the total Projected Page 4 b5 -15� City of Saint Paul Request For Information Response March I, 2004 FCC Foim 1240 FRCs on Worksheet 7. Using A&S's methodology, the Total Projected FRCs should be $1,113,118.26, not the $336,166.97 that A&S indicates. In addition, Item "H" and item `2l' are exactly the same and are listed twice. Item "H" was actually the annual PEG Capital Grant fot $57,87636 and was recovered in the True-up period per both A&S and Comcast. The entire recalculation of Franchise Related Costs is inaccuzate and inconsistent with support provided by Comcast and with FCC rules. It appears that the consuttant completely disregazded the FCC rules, documentavon, and mathemarical methodologies. Franchise Related Costs, as entered by Comcast into the FCC Fortn 1240 and supported by the documentation supplied to A&S, should be accepted as filed in Worksheet 7. FCC Re u2 latory Fee The FCC Regulatory Fee is not "requixed" to be placed ln the Form 1240. "I`he "Filing Instructions" for the FCC Form 1240, Page 2, state: "The Commission's rules recognize seven categories of extemai costs: retransmission consent fees, copyright fees, programming costs, certain cab]e specific tases, franchise-related costs, franchise £ees and Commission regulatory fees. You � adjust your maYimum permitted rate for changes in these categories of costs except for franchise fees, which ace not included in your permitted rates but rather ase simply added to them." {Emphasis added]_ The FCC provided a method by which cable operators may recover these costs in its Fourth Order On Reconsiderafion (see FCC 94-254, Fourth Order On Reconsideration, released October 5, 1994): "Regulatory fees that aze assessed for subsequent fiscal years shall be recovered in twelve monthly installments during the fiscat yeaz following the fiscal year fot which the payment was unposed. For example, operators may begin recovzring rea latory fees paid for fiscal year 1995 during the 12 month period from October 1995 through September 1996. Payments shall be collected in equal monthly installments, except that far so many months as may be necessary to avoid fractional payments, an additionai $0.01 payment per month may be collected. All such additional payments shall be collected in the last month or months of the fiscal yeaz, so that once collectlons of such payments begin there shall be no month remaining in the year in which the operator is not enritled to such an additional payment." Comcast has chosen to recover the FCC Regulatory Fees as prescribed in the Fourth Order On Reconsideration instead of including the Commission Regulatory Fees in its FCC Form 1240 calculation. Either method conforms to FCC rules However, we find that the method prescribed by the Fourth Order On Reconsideration provides a more precise mefliod of recovery than the method of projecting what the amount shotild be in the FCC Form 1240 and "truing-up" that amount each year. If the FCC Regulatory Fee is included in Worksheet 7 True-Up Period, then Worksheet 8- True- Up Rate Charged must also include the necessary fee added to the Actual Basic Rate to be consistent with the FCC's methodology. The Porm 1240 filed by Comcast included the FCC Rea latory Fee in the True-Up period on Worksheet 7 and had already added it to Worksheet 8. Worksheet 7 Line 708 was calculated at $25,405.92. This calculation represents 52,929 True-Up Page 5 05�50 Ciry of Saint Paul Request For Information Response March 1, 2004 FCC Form 1240 Subscribers reflected on Lme B 1 of the Form mulfiplied by $.04 A4onthly Re�ulatory Fee for 12 months. T'he Basic Rate as stated on the rate card was �7.97 during the True-lip Period. A copy of the rate cazd was provided with the oritinally filed Form 1240. A$.04 increase was manualiy added to arrive at $8.01 as idenfified on the Comcast Worksheet 8. T`he recalculated A&S Form 1240, however, shows an amount on Worksheet $ ranging from $8.065 in True-Up month 1 to $8.0683 in True-Up month 12_ It appeazs that the Regulatory Fee was added to Wozksheet & when the fee was already included in the Basic Rate amounts reflected. Since it appeazs the consultant added $.0565 to the $8.01 listed on Worksheet 8, it is evident that the consultant did not review the rate cazd or verify the amounts already included in Worksheet 8. Summarv Comcast appreciates the opportunity to comment on the A&S Report albeit within this short time frame. We hope that our comments on the A&S Report make it evident that the Form 1240 prepazed and recalculated by A&S is r3ddled with errors and inconsistencies, is legally insufficient, and therefore cannot be adopted by the City in its present form. We, of course, remain lviliing to conrinue to discuss oz clarify with the City the issues that we have raised herain. If you have any questions or require additional information, please contact me at 248.233.474�. Sincerely, Sharon Wiorek Director ofRegulatory Reporting Midwest Division Cc: Dennis Flahery, CiTy of St. Paul Lisa Veith, City of St. Paul Kathi Donnelly-Cohen, Comcast Garth Ashpaugh, Ashpaugh & Sculco, CPAs, PLC. Page 6 From; "Wiorek, Sharon" <Sharon_Wiorek@cable.comcast.com> To: "'Karen Johnso�"' <Karen.Johnson@ci.stpaul.mn.us> Date: 2I15/2005 3:19:10 PM Subject: RE: Comments to FCC Form 1240 Report by A&S Enclosed please find ComcasYs comments to your February 10, 2005 efectronic mail message. Sharon Wiorek Comcast Midwest Division 248.233.4740 CC: <gashpaugh@ascpas.com>, "Donnelly-Cohen, Kathi" <Kathi_Donnelly- Cohen@cable.comcast.com>, Dennis Flaherty <Dennis.Flaherty@ci.stpaul.mn.us>, Lisa Veith <Lisa. Ve ith @ci. stpaul. mn. u s> 05-� 5 p �Cflt"�"1Ct,�S� � ��.�,:,�,.,� ��, P.o.�s�u Sa1,,R.d..�, ,803�_5115 CZSn7 a33-s7o0 ��y ts, aoos Ms. Karen Jolu�son Of�ce ofTechnology City of Saint Paul 290 City Hall 15 West Kellog,g Boulevazd $aint Paul, Minnesata 55102 Re: Review of the FCC Fomu 1240 of Comc�st of St. Paul, Ina 51ed with the City of St. Paut February 27, 2004 Dear Ms. 3ohnson: We are in receipt of yaur February 10, 20051etter and revised cons�itam's report, and we undecstand dsaL, in light of our Febcuaty 4 submissioq die consutfanx's calculations now refled that ow basic service rate of 58.65 is cvell below ihe Ivfa�cimum Permitted Rate undcr applicable regularions. This leaer u to respond to the two mazters related to copyright calculasion4 and ProBrammmS cost dara �at were ideatifed in yaur Feb�uary 10'" letter. Also, since Compst of St. Paul I�. ("Comcast" or "CompanY'� was altowed onty a few days to comment on ABtS's 1 cn8�Y �� dated January 24"', all of the discrepancies in A&S's �+cport wece not identificd in our letier of February 4'�. O� such issue is related to the "tfue-up period" and that is discussed later in this lefter_ COPYRSGHT CALC[JLATIONS The first matter the City addresses is that of copyright fees. A&S's original report dated Jannary 24`� inciudcs thiee paragraplu untier the heading of "Prt>gs-amming Expessse and Copyright Fees". Withia the ficst paragagh, Frogram+ning expenses are d�scus�ed, amd A&S correctly states that the underlying detail of the progr cosU are, in fac� covered under a wnfidentiality agreement b�ween A&S a� Comcast. Copyeight fee expeases are discussed in the second paragraph. In rhac paragmpb, A&s aoes noc s�te, ttwuah a�guab1Y �rli�, ��arris� information is coa£idential. [n fid, copynght expenses ace nac oovered imder terms of the confidemiality agreement. 'll�erefore, any assumption that this copyright infortnaIIon is protected under temzs of the conSderniality agreement is not correct, and those copyright fees are aPProPriately considered in the calcutaUons. To further elaborate, d�e report issue� by A&5 on Pebruary 7" in response to the Con�pany's comments on A�S's rcport date3 January 24`" incorrectly states, "Conicast iasisted that the data used to perform the calculation be ueated as c�onfidential"_ Programming casts aie confidential under the teims of the co�dentiatity agreement, but not coP3'�SM fee expensws_ Payme�us by Comcast to ca61e Letevision programmecs have no impact on the royahies paid to fhe U. S. C�PYnBht UfFice. The copyright fee caiwlation is based on the broedcast ahannels cazried and the origination poutts of those 6roadrast ctannels' sigiaLs. o�-G �c� City of Saint Paul Reqvest For tnfawation Respoose Mmch F, 2004 FCC F�t 12A6 The worksheet provided to the Company as par[ of fhe A&S repost dated January 24"' shows a cogyrighi calculation d�at is .956°/, ef Tarai Revenues listed oa Line 5 of Apgendix E. It is the amouut displayed on Line 5 that is "animown". A}[fiough tbe amount of rt�alailated coP3'nS� fee expense is inelevaui since the acA�al Copyright Statement of Accou�s were provided for n�port ef Le a�a�ts iccha� in Comsxst's FCC Porm ? 240, tLe Comg�y ha� hoped ±o ga?n an anclerstandmg of the methodology of such recalculatioas. RTheYher or nar the `°Total Revenue» listed on Line 5 is �plained to the Company, is again, nc� telewant since actual costs and suppozt for ComcxsYs copyright fees were Qrovided to thc City and A&S. There is no raUOnal basis for reca}culation by A&S of those costs. Comcast's response on October 15, 2004 to the City's original letter of inquiry identifies the_ copyright fee calculation, which was included in the Company's FCC Form 1240 filed with the Ciry on or about March 1, 2004. Auachmcnt # 4 io the tetter includes copies of the Statemeni of Accounts and an allocauon caiculation ideatifying the methodology for the amount intIuded ia Workshcet 7 ofthe FCC Form 1240. Due to the size of the electronic fiie, Comcast cannot provide this infonnati� with this response via e-mail, but a camplete set of the docmfients sem to Ms. Hartson on October 15' can be senT via overnight delivery service if needed by the City. Once again, we aze certain That no non-confidential iaformation was withheld, but feel free to contact us i£you believe otherwise. PROGRAMMING COST DATA The second outstanding issue is tbaY of the validity of the programming costs data and any relationsbip to affiliaie programmers. Question # Sa of the original rcquest for utfomiation on October l, 2004 slates: "For worksheet 7, piease: a. Please provide support for programming costs for each c3annei by month f4r each month of the True-i3p Period. Such support (invoices and or sapporting detail for the payucent) should: i. Ide�ify the actual costs for each ctiannet by Comcast to Hie individual pi ��.,, After the aforementioned confidentiality ap,reement was fiilly executed, copies of invoices were sent to A&S on December 15'". These imoices show the name of the programmer, the amouni paid per subscnber aid the eatended total amount paid. The infosmation 2hat was requested in QuesLion #Sa was provided, however, the copies may have inadvert�Yly inc7aded a page or hvo whera the heading printed incoriectly. A new set of invoices are being sent via ovemight delivecy seroice to A&S. ALso vrithin the original request was Question #Sb, which states: b. "Ylease idemify all affiliate progrmnming of Comcast on the Basic Service Tier during the True-up Period or ihe Projectec! Period. Affiliate progrunming is deSned far the purposes of this request as any progcamming ocvned in whole or in paR by Comcast or a company owned in who3e or in part by Comrast." The response from ihe Company on Ociober 15�' statcs, `°lhere are four channeJs which incur programming costs and aze included in WorksheeT 7. These four channels are WGN, TV Guide, The Weather Chanael and C-Span. None of these channels aze affiliate pmgrammers." Page 2 crry ors� rm,F Req�iestFa tnformation Respoc�se Manch t, 20(l4 FCC Fomt 7240 During the cov�e of infomiaiion gathering for A&S, tbe Company noticed rbat one of the programming cost amouats included on Worksheet 7 of ihe FCC Form I240 was slighLly incoriect. An amended Form 1244 wiTl be se� to the City and A&S via ovemiglrt delivery service. FCC rules require the Inflaiion Facior to be refreshed with the submission of an amended Form 1240. Workshce,t 1 was changed accordingty as was Line CS af the Form. 'Ihe Company's originaily filed Form 1240 reflecied a Maxvuum Fermiued Ra2e on Line I9 of $10.5996. The amended Form 1244, w�hich reflects changes to both the Progmmming Costs as shown on Worksheet 7, and ihe FCC Inflation Factar as shawn on Worksheet 1 and on Line C5, now reflect an amended Ma�mum Permitted Rate of $10.6665, an increase of $.0669 from the originally filed Form 1240. TRiJE-UP ISSiIE Since there were a mulutude of errors in A&S's "recalcularion" of Comcast's FCC Form 1240, and Comcast was given such a short time frame in order to reply, ail the erro� have not like]y yet been idemi5ed. One such ezror is the `°Frue-Up Period" in A&S's report and recaiculated FCC Form 124Q. Comcasi's original Form 1240 indicated a True-Up Period from December 1, 2002 through November 30, 2003. A&S eliminated one month from rhe True-Up Period, claiming incorrectly t4at supporting information was uot pcovided. Supporting iaformation for costs incurred in November 2003 was provided by the Company in its responses of Odober 15`�, November 11 �' and December 15th. Appendix E of A&S's rcport of January 24�' shows a True- Lip Period &om November 2002 tLrough October 2003 and carries the amavnts through to Worlcsfieet 7. November 2002 cvas inciuded as the last mouth of the True-Up Period in Comcast's Form 1240 filed on or about March I, 2003. A&S's inclusion of Navember 2002 in their "recalculated" Form 1240 is inappropnaie since the FCC rules state that the same Tme-Up Period cannat be used twice. Hopefully this informatiott is hetpful. As noted above, it appears tLat the Ciry's consuhant now reco�izes tbat ow basic service ra2e is we11 below the Maycirtaun Permitted Raze w�der applicable regulations, I� however, City staffor consulLwt are going to recommend action or a Ra#e Otder for wnsideralion by the Ciry Council, please provide us at least four 6usiness clays advance natice and a copy of any such recommendation and Order and in turn, we will provide any appropriafe input prior to City Council consideration. Comcast remains willing to contimie to discuss or ctarify its FCC Form I240 filing with the City. If you have any questions or requue additionai information, piease contact Kathi Duimelly- Cohen directly at 651-493-5281 or me ai 248.233.4740. a Sinczrel�, � fi � J �� s�--�°'��'`'t � Sharon Wiorek Director of Regulatory Reportmg Midwest Division Cc: Denvis Ftahay, Ciry of Si. Paul Lisa Vath, City of St Paui Kattu DrnmellY�oh�, Comcast Gajth Ashpamgls Ashpaugh & Sculco, CPAs, PLC. 05 -( �O Page 3 Q5 =� 5U =��a_��_� r�� iz�ii-l��izas€�A; `��rec�at Uf�i.c� ;�i�'I'�:G�SitSi�"4��° �itp �L�t� I�ai� ��-��7fa:�t" l� Y��a`��e��i�lC�Rir�� 'ar�t, � ��1t�2 TJ�i';3u,f"s'_. i�I��r U5'-�50 R2ti,ui�( Fiu;�ri(orinxtiora�T'�spir2r:2e': ]G€ffi'cli I �2(1ftfiFCC ItsYiri lZ�fS�. O5-c 5a .RE�f-��?�TiP='m�ncnr.meLfO t{.E4�F15� N�fFC�t �.? ��.' -F,� IZ?�E) �zst,. �te _c,�hii��e-Yp �liT T�C�IECtS:EL�EC�. $��;'1TS.L';� S�7.Ot2��7�LC �1€2CY..5F1�1}�S�f�2 �� y ��? .. ��iT , � } �,E°��t.c�? ; ,1V�Z'lLk''�U�.i'� �^;.'�:�: �L�t1f1kS��F�?:�-�r7� L�.�;�L �x#iF� � Ta�`t �,�a�. �',�Ct� 4 ,�'�'�u1 �z�i�:�nun�fI�%:��abe�, �az�c�r: fi�Yt �ich�a�i�r��r,�Xs�ig�n� &x �ef�tca GI�s� i�J,�:: � 31�{JFFII1�lt}II 05-�50 ., �4 � ASHPAUGH & SCULCO, CPAs, PLC �erY+fied Public Accoun<a:�Ys a�d Consultzn:s Febzuazy 7, 2005 AS1043-02 Kazen Johnson, Director Office of Tecluaology Cityof St.. Paul 290 City Hall 15 WestKelloggBoulevazd St. PauJ, MN 55102 SUB.TECT: Addendum to the Letter Repoxt of Januazy 24, 2t105 Concexving the FCC F+orm 1240 of Comcast of St. Pan1, Inc. filed with the City of S� Paul �ebxuary 27, 2004 Deaz Vis. Jofinson: Ashpaugh & Scuico, CPAs, PLC ("A&5") were provided the Febsuaiy 4 comments of' Comcast concerning ouc .Januasy 24, 2005 lettex report (the "Repoit")., We appreciate the timely and thoiough analyses of' Comcast. The following diseussion addresses each point of' ComcasYs xesponse. • TRUE-UP PERIOD The Federal Communicztions Commissian ("FCC"} has made it cleaz (1) that the operatox can only ttu�up a petiod one time and (2) that acival infaxmation must be available far the period se�ected The Foxm 1240 Instructions state: The second period is called the Txue-Up Pe�iod.. When you fi1a your Foim 1240, you must define the peiiod of'time on which you wiIi perfaim a true-up (for a fix11 discussion of'this process, see the secrion "The Txue-Up Process" below } There are two requuements fox defining a Tme-Up Peiiod. The fust is fihat voa mav not pexfox2n a true-np on the same pexiod of time twice. fihe second is that you mnst have aetual data available to verifv all o# the rate adiustments vou are claimiug for the True-Up Period. This means that with each Foxm I240 filing thexe wiIl be a space of time between the end of the True-Up Peiiod and the begimung af'the Projecfed Peziod on which you cannot peifoun a true-up. (Emphasis added.,) A&S used an 11 month petiod xathes than a 12-month petiod because that was the only petiod for wluch complete actual data was available at the fime of' filing. Comcast did aot haue actual subsciiber data ar progamming costs for Novembei 2003 whett it prepared the 1240. Comcast stated that, if' A&S' 11-month true-up peiiod is adoptec3, that 11— month peziod shotild be used to complete Woii�sheet 8 of the FCC foxms A&S agtees, and has coirected the Adflendum Foxm 1240 inctuded it submitted to the City to make that change. The revased I 133 LouisianaAvenue Surte 106 • WinterParkFL32789 • 9076452020 • Far4076454070 gashpaugh@ascpaz com • csculcoQascpas com 05-15a Kas en Johnson, Ciiy af St Faul February 7, 20fl5 Page 2 of 6 Addendum Foim 1240 is attached to this lettei repott Making this change, however, only has an impact of'S 0003 on the Avetage Rate calculated in Workskeet 8. t�3U:�fBER OF SUB3CRIBERS The centrat difference beiween che A&S calcularion and the Comcast calculation is that Comcast adjusted ifs snbscn'bes numbers to iemove customers to whom it provides free seivice Comcast seems to atgue that this adjustment is of'ao consequence since "theie are no costs in the 1240 F ozm for free customer s" In fact, unde� the FCC fozm, costs aze spread acioss the subscriber base; the Iower tha number o# subscribers, the highei the cost pei subsciibei , By ignoiing "fr'ee" subscribers, Camcast effectively raises rates to everyone else, as we explained in ous initial report We see nothing on the FCC Farm ox in the xules tlzat allows Comcast to ignoze some subsctibecs in its rate calculations. The City should make the adjustment recommended by A&S. Once that adjustment is made, the other diffetences beiween Comcast and A&S subscribec counts result &om tfie way data aze summed and averaged on the FCC foims.. AScS also disag�ees witb ComcasYs comment on the billing of progamming expenses, but the proga�mning cost issue will be discussed in the next section. PROGRtL�iTNG CO$75 Comcast identifies tv,�o issues with xespect to programm;ng costs Ihe fixst is a red hening. Comcast ara es that A&S impropetly included free customeis in its calculation of pxogamming costs.. It Yhen admits that we did not do so. Just to be cleaz, we did not inclnde free custamers in the calculation o£ progamming cosfs (because the amount paid b,y Comcast does not appear to change based on the numbez of'free subscnbers in St.. Paul} Proganuning costs detetmined by A&S we�e based on billable subsc�ibeis consistent with the sugpart piovidefl �y Comcast ° The second, and significant issue, relates to ComcasYs suppoxt for pxngtatmning costs. Comcast submitted data rhat giuported to suppoit its progam*n;ng costs. But the pucpoxted pxograinming costs repoxted from St. Paui difFei from those reposted in othec Comcast communities. Comcast did not pxnvide progauvning connacts, actuat invoices from programmers for the St. Paul system, oi othe� infoimation that wouId grove that iates paid for progcamming in St Paui ate higheT than in other communities. Absent same such proo£, A&S adjusted pzog�ng costs to reflect cASts generally incuued by Comcast. Comcast also faults A&S that "... it should have cammunicated its conce�ns to Comcast ptioz to the issuance of' a final repoxt" 'I'his staten�ent is ironic since I had a phone cottvetsafion with Ms Wiorek in late November 2044 conceming the status of pxogamming cust suppoit fo�• St. Paul and Detroix. At that time, I specifically discussed the incosssistencies in Comcast's data with Ms. Wiorek in iesponse to hez d'uect questions concezning the problems As I told Ms. Wiorek, I had cost data provided to me in response to infoimarion requests for Azlingkon County, Vuginia and the amounts did not agee with those clavned by Comcast ir� eifhei St_ Paul or Detroit Ms Wiarek responded tha# the cost suppoxt wouid be � t 5p Karen 7ohnsoa, City of St PauI FeInuazy 7, 2005 Page 3 of 6 provided � scauned capy o£ the exeeuted confidentiality agreement conceining progamm;ng costs was provided to Comcast by email on I*Iovembet 10 a�d mailed November 18. But Comcast did not pmvide the data unh7 I?ecember 16 even though the Octobet I5, 2404 cesponse of Comcast stated the following: Repuest � a. For worksheet 7, please provide support for progcaniniing costs for each channel by month for each month of' the Tzue.Up Pesiod Such suppozt (invoices and or suppoiting detaii foi the payment) shauld identify the actual cos�s for each channel by Comcast to the individual piogrammezs. Comcast's Ootobe� 15, 2004 resnonse: Infoimation will be senf upon receipt of the fully executed Confi@entiality Agreement between Comcast and Ashpaugh & Sculco CPAs. In acidition, the matesial provided did nat support the amounts clauned by Comcast in ti�e filing. In the filing, Comcast claimecl per subscsibec amonuts wken the amounts were a flat fee; the material provided indicated #hat prog�a costs were subject to certain discounts and adjustments not xzflected in the filing. A&S's calculation of' prograinming expense is appropiiate fox setting rates COPYRIGHI �EES Comcast pays cectain mandatozy copycight fees pur.snant to a fo�mula set b,q the fedetal govetnment The amount owed depends on a nwnbes offactors, including the channels being cazzied on a system and the iates chazged Comcast aatculated cop}night fees by taldng the amount it paid foi ti�e endre region and then allocating a cextain poxtion of'that to St. Paul. A&S calculated capyright fees by dete�mining how much Camcast would have owed for St. Paul alone, if 5t. Paul were a standalone system Theie should be no difFerence in the resuIt if ail factois ihat affect copyrigpt chazges aze tha same in all communities in the area; but if'they aze not, the A&S mettzodology is more acctuate. As theae does appear ta be a diffetence based upon ComcasYs comments, A&S secommends thaf the moxe accaxate method be nsed The specific Comcast cciticisms aze misplaced. Comcast claims ".. that A&S az:ived at a Tatal far Basic Revenue but used an unl�own calcularion and proceed to multiply fhe Basic Revenues by 4956°lo to ascestain a cop}night expense." Firs#, the calculatian is `��nlmown" because Comcast insisted that the data used to petfozm the calcutation be treatad as confidential. We would be pleased to provide the calculaiion to the City, if' Comcast insists that it be pazt of'the zecord. The basic appxoacla, however is evident frn�n the form A&S calculated tke copyiight fee that would have been owed if St Panl were a standalone system.. Ihe copyiight faxms zequue Comcast to pay a fee equal to 956% of' revenues subjecY to the copytight payments. As shown on Line b of Appendix E, A&S applied this .956% (not 0956%, as Comcast clasms} to St, Paul revenues. The calculation relied on data from ComcasYs suppo�ting documents without adjustment A&S's calculation is appiopiiate £or setting rates �J5-i 5d Katen 7ohnson, City of St Pau1 Februazy 7, 2005 Paae 4 of 6 �RANCFIISE-REIATED COSIS ("FRC"} Comcast c1_aims t}�at "... A&3 attemgte@ to recreate ComcasYs calculation of' Francluse- Related Costs ("FRCs"} .." In fact, while A&S presented its data in a manner simil� to the manuer in which Comcast piesented its caiculation of FRCs, A&S did nat simply attempt to �e-cFeate the Comcast data. As we elcglained in ota initial ieport, Camcast failed to gioperiy aznortize FRCs or snpport its treatment af them. Its comments do nothing to cotrect this deficiency. As maie fully explained in the initial report, some franchise-related costs aze propeciy treated as annual expenses. But othec costs, such as lump sum payments or conttibution of'capital equipment foi PEG, aze propecly amos1azed ov� a peiiod of yeaFS One can envision seveial possible amoxtization pet'sods The FCC, foi example, has suggested that a$anchising authoiity can reqture iump sum PEG payments to be amottized ovet the useful life of'the equipment involved,. In this case, Comcast failed ta sugpoxt its treahnent of' PEG capital costs that wete subject to amoitization, so A&S used the then-aeznaining teim of'the franahise as an appropxiate autottization p�iod. That ohoice assumes that the PEG payments made to the City weie meant to piovide ttfe City with sufficient funds £or the franchise tesm. Wtule a 3onges amo2tization pexiod might be justified, our choice seems to be the shoxtest appropriate p�iod based on the infoTmation available to us. Based on Comcast's continued faii�nne to suppoFt the treatment of' FRCs, we recoznmend the City adopt the A&S apptnach to amortization Comcast did identify some caIaulation ezrors that we haue cotrecte@. However, where it claims that A&S made a change "without explanation," it is genesally pointing to calculations that eithec reguued no explanation, oi that it mis�ead Moze specifically: • The amounts for `B" wexe catculated fhe same as the other amounts on the page — the totaI amount divided hy the tota2 numbet of months in the amoxtization pesiod fixnes the numbe� of' months in tiie T�ue-Up Pesiod. A&S's coaection flowed thsough to the total expense and the'Fofai. (CamcasYs comments at page 3.) • Conceming Comcast's comment on the change in the number of "�emaining months" at the beg'inning of' the Txue-Up Peziod, A&S used the same numbec as Comcast for `B" Foi "C", "D", "�" and "G", A&S used acival full months and not the partial months resulting in the diffesences, This does not impact the rates calculated by A&S .{Comcast's coznments at page 4) • Comcast's connnents regazding Appendax D pages 2 of 4 and 4 of 4 aza coixect wifh respect to the Totals shown The attached Addendum Appendix D has coirect totals (ComcasYs comments at page 4} • COTT1CflSC 1S COIT'CCL tI1Zt "H" costs should nat be in the Pcnjected Petiod. Ihis has bcen coirected (Comcast's comments at page 4.) Q � so Kazen.Johnson, City of St Paul F ebivary 7, 2005 Page 5 of b • Comcast is coixect that tha A&S caiculafion skouid have been 11 months for the deteunination of' amoztization expense foi the True-Up Petiod This has been conected. (Comcast's comtnents at page 4.) • ComcasYs discussion at on page 4 conceining the use of "ib.5 months" misstates what A&S dic3, and t3�e source of ComcasYs confusion is unclear. The column headings on Pages 2 of 4 and 4 0#'4 clearly shows that the amount is as of'.June 1, 2044. Obviously, one simply calculates additionat months of' amoitization to get to this point — recall the T:ue-Up Period ends Ootober 31, 2003 and the Piojected Peiiod b a°ins .Tune 1, 2004 The amoitizations continue an a monthiy basis fox evezy month hetween the two petiods. (Comca�-t's comments at page 4} • Comcast's statement that A&S's iecaiculation is "inconsistent wiflz the sugpoct provided by Comcast and the FCC iules" assumes thaf its proposed amoxfization periods aze conect or supported by data provided by the company. The peiiods aze not suppoited, A&S relied on the franchise documents and cost data provided by the City in addition to the suppozt provided by Comcast to detesmine appropxiate petiods for zmorrization, as discussed above. (Camcast's cornments at page 5) FCC REGULAIORY FEE The essential issue is wheffier the FCC Regulatory fee must be accounted foY sn the Foim I240, oi whether it can simply be added to the bill.. We disagree with Comcast's analysis of' the FCC faxms The use af'the woid `4nay" in the 1240 Instructions refe�s to the fact that the apecatai may or may not elect to pass this reguiatoty fee tivau� to subsc�ibers.. Howevei, if' the apeiatoi chaoses to collect the PCC RegcfJatoiy Fee $om subscribeis, we believe it must include the amount on the Woiksheet 7 of the 1240. Chu conclusion in this x'egard is based in patf on the facY that if the fee is included in the Foim 1240, there is a clear mechanism for conecting under and over-collections from suhsctibers If it is excluded, thess is no cleaz mechanism for monitoiing the collection of the fees, and the City would have to create a sepazate mecl�anism for doing so. Absent soine cleaz ruling by the FCC, the better coutse is to include #he charge in the Fotm 1240 We note that i#' Comcast were zight, the effect would be to s'educe the A&S recomznended MYR by $.O5 to $10.03 eccIuding franchise fees.. Ihat is because the regulatory fee is included in out recommended MPR wo�s�EZ s Comcast is con�ct that the amount for the FCC Regulatory Fee was included twice on A&S's Wo�ksheet 8 As shown in ApgenBuc C, A&S's revised 1240 has cotrected tkus. CONCLUSION The comments of Comcast have been addressed above.. Any ruiscalculations liave been cotrected and a��e teflecfed in the attached Agpendices. As shown on Addendum Appendices d5-! 5a Karen Johnson, City of St Paul �ebivazy 7, 20�5 Page 6 of 6 A and B, maldng the above chaages incteases our Mazunum Peimitted Rafe {"MPR") to $10.09, � 10 b2 including francluse fees Both amounts include franchise-reiated costs A&S recommends the City adopt these iates. We recommend the City: (i) i'eject the filing of Comoast; {ii} adopt A&S's 1240, wlrich is attached as Addendum Appendi� C to tlus Iettei lepott; and (iii) appaove the MPR of $1�.0864 as i�ecalculated by A&S. In the ordeL, the City should state that if any information should become known in the fui�ue which wouId impact these iates, the City may s'erisit tttis decision The City should fiuther state rhat (i) this amorutt includes the PCC ReguIatAiy Fee, (2) ttus affiount includes all francluse-iela#ed costs and (3) this is the masimum iate al2owed far the Basic Sezvice Tiex undex the FCC's iules If' you have any questions oi require any fuither infoimation, please let me lmow Very truly yours, ASHPAUGH & SCULCO, CPAs, PLC �, Gcrc_i^�- '� ..— Guth T Ashpaugh, CPA President and Member Cc: Lisa Veith, Esquira, City Attorney 7oseph Van Eaton, Esquu�, Milles & Van Eaton, PLLC Enc3osuie Adde�� m Ne 2W4 t240 Report OS-t50 ADDEN➢LiiY3 AYPEiVDIX A 05-! 5C� ADDE�IDUM APP�V�7X A ST. PAUL, ML\TNL+ SOTA COVICASI OE SI PAUL, INC. REV�W OF 2004 F�C FOR2� 1240 RECOi�fMENBED RAZES Recommended Rates Rates Recommended Including Line Foi Fianchise Franc}use No. Type of' Se:vice Appioval kees Fees of 5.00% Monthiv Rate i Maximum Petmitted Rate - Basic Iier $14.d9 $0.53 $I0.62 05 �� ADDENDUM APPENDIX $ �s-� 5a � k ., a Z L'F C � a � � U F-� � oa z� � � � Q aH C �' R� Q � U�'' `� O V O N � 0 U w b O 0 W ? P�+ 0 � 2 � � U � � o y � �. . _ ,�s-. rt `'" Q � � J � C a `� rz � � c � C y � � � � o O � � � u � N � ..,"'.., d U � `� � o � G � a � � J � y � L O L'i C O� v O � � Vi z � e� - G �a o+ �y p `O H J � ^ m £ � � � ti � U a'� w�" ca � Y M F � � U � v � � � � ti d � � � h � a�'i `� k, �+ v o co � `�i � � � 6� v , Q p.,' v � � � �. ° ��,� °.N w w d v�" � o J A � � N � a { � � � 3 Q �� . a. s� � $ o � � °> ... o .o 0 U � � M v � � � rn ,^ m U � v � � U � N Vt C w � y � y U a � E d e m � � �', E, :: v ,., o a .a � o � � �z � a a m a o5-r� ADI7ENDUI�1 APP��'DIX C a��5o Fednal Comunniwrions Commissiou Appmved by OMB 3060-Ob85 Wubing[on, DC 2D>5A PCC FORM 124U i3PDAITIvG MA.XIl4IG14I PER.tiRII IFD RAIES FOR RFGUi97EA CAEI,� SERVTCES Cable Operatnr: YES NO I. Daes tBis filing iuvolve a single [ianchise authotity and a sinnte community anit? X IT yes, complete the fianchise autkoiity information below and enter ttie associated CLSID numbet Lere: MN0424 YES NO 2. Does tLis filing involve a sing3e fraachise autLo[iYy but multiple community uniksZ X I£ yes, enter the associated CIIIDS beiow and complete the franchise authoxiry information at the bottom of this page: 3.. Does this t'il'mg inwolve multiple franchise authoxilies? NO If yes, attach a separate sheet foc each fianchise authority and inctude the fo]lowing franchise authoiiry information wi¢h its associated CUID(s): Fra¢chise Authosity InfocmaEion: A. Fo* wfiat purpose is fhis Form 124U beiag Siled? Please put an "X" in the appx op79ate bns. a Original Form 1240 for Basic Iie� X b Ameaded Foim 1240 forBasic Fier c Origina( Focm 1240 for CPS Iiec d Ameaded Foim 7240 fos CPS Sier � TO 5. Indicate the oue year titne period for which ynv are setting �afes (the ProjeMed Yer9od)., U610U04 OS/31/05 TO 6. Indicate the ifine period for whith yoa ste pezfoimina a txurup. 12105102 11J30/03 7. StaYUS of Pra�ious Filing of FCC Foim 1240 (enYer an "x" in the app�rop�i4te bos) YES i 10 a Is this the fusk FCC Foim t240 frled in any jutis&ction? g b. Has an FCC Form 124D been filed previousty wiih the F CC? x ffyes, enta the date ot the mostiecent fiting:� (mmlddlyy) YES NO c FFas an PCC Frnm 324Q hcen filed previously witfi ilie Franchis.ng Authwity? X If yes, entec ihe date ot the most zeceoc fli ing: 02l26103 (mmlddlyy) ��✓YY) {mm/yy) FCC Fo�m t240 Page I Microsofr Fxcel i 0 Vession 7niy 1996 �s � Fedyxyj Cp m ,ni�-.+;nns Commycsion Vlashington, IJC 20554 S. Status of Previoas F�lina nf FCC Form 1210 (eater an"x" in the appa�opiiate boa) Appmved by OMB 3060-068' YES NO a Has an f CC Form 127 p been preriously filed with the FCC? X If yes, eucer the dace o£the most recent filing: 12JOL95 (mvJdd/yy) YiS NO b. Has an FCC Fo� 1210 been previovsty filed u�th the Francfiising Aurhoxiry? X if"yes, enta� the date of'the most recent filing: i I/18/99 (mm/dd/yy) 4. Sfatus of FCC Foem 1200 Fil'wg (enter an "x" in the app:opriate bax) a Has an FCC Fotm 1200 Been previous3y filed with the FCC? YES NO � If yes, enke� the date filed; �(mmldd7yy} YES iJ0 b Has a� FCC Form t200 becn previously fited with the Fzanchising Authoiity? � X �� If yes, entet the date filed: 08/14/94 (mm/dd/yy) 10. Cable Prugtamming Setvices Cmnplaint Siatas (enter aa "x" in the appropciate box) YES NO a Is this focxn being filed in response to an FCC Fosm 329 oomplaint? X If'yes entec che dace of tUe complaint:� {mmlddlYY) YES NO Il. Is FCC Foxm 1205 Being Included With ILis Filing X 12- Selection of "Going Focward" ChanueE Addition Methodology (entex ait "x"' i¢ the appeopxiate bos} �Check hete if you are using the oiiginal xules jMARKUP MEIHOD] �Check 6ere it you are asing the new, sltemative ru[es [CAPS MPIHOD] [f using the CAPS ME THOD, have you elected to xevise recovery for channels added duiin$ the period May 75, 1994 to Dec 31, 1994? - YES NO X 13. Headead Upgiade Methodo]ogy � � •NOTE Operntws musF t�hfy to ifie Commissiors Uceit eligibility to use this upg'ade meBiodology and atlaeh an equiF�nt list and depreciation schedule �Check here if you are a qualifying small system using the streamlined headend upgrade methodology Part I; Preliminarv Information 1Vlodule A: Maximnm Yermitted Rate P4•o�n Previous Filing a a � ex�intirtn Basic Iie1' Z Iie� 3 CUirenf Masiaxum Pemutted Raxe $10.0734� � Subscribership a b � Basie ii¢c2 iiet 3 True-Up Periodl Average SubscribusSip For Tme-Up Period2 Fstimated A ve. ag e S uMcnbeship ForProjected Paiod MOf�11�E Liue Desctiption Uncl Intlafi Operecoi SwiicLing From 1210 To I?AD U�Iaimal I�la[ian: UeuswFaled Operntox Responding to Rate I Period 1 [Wks t] InflationFacWi Foi Tm�Up Period 2(�Vks ]] Curnnt FCC Inf7atioaFactor Iier 4 e L* S , FCC Form 7240 pa 2 � Microsofl Fxcei i 0 Version Iuiy 1496 Federal CommuaiEatioas Commission Washing[on, DC 20554 C urcee rt Head�d Upgade Se�ne.nt G�x}en[ Extemal CASrs Segment (,tureot Caps biethod Se�ea[ Cunent LSac�p Metho<1 Segm.ent Cuirent C5a�e1 Moventeni and Delefion Segment Curreni Inflation ?VTodule D: iSe RaYe a 6 Basic 7ier2 36.0000 S231bfi $0.0000 so.aooa so.000n �i.7617 50.1448 55.8903 Part II: True-Un Period Module E: Timina Infbxmation d5`-t5c� Appcoved by OMB 3060-0685 � a e er 3 7iee 4 Zier 5 What Type of TmcUp Is Being Perfosmed? (P.nswec "I ", "2", ox , 3••. Sce Iastmetians fot a descrigtion of these npes.) If"1"� go to Module L If "2", answe� E2 and E3. ff"3"� answu E2, E3, E4, and E5. Nmnber of Months in the Tme-Up Period I Numbtt of Moat}s bMweea the end of Tnu-Up Period 3 and the end of ihe most rece»t Pmjecced Pe�iod N umba ofMouths in Tme-Up Period 2 Eligible fot Interest Number oF Period 2lneligible for Interest l Modale F': Maximum Permitted Rate Fox Txve-U Period 1 a h c d e i,� LioeDesciiption Basie Iier2 Xier3 7ier1 IierS Fl CapsMethodSegmentForTnie-UpPeriodi(Wks2] $0.4000 F2. Mazkup Method Segment Fa Txuo-Up Period 1[WKS 3] $0.0000 F3 Chan M-+m&t Deleln Segment ForTrna�Up Pesiod 1[Wks' 41S} 4 TrurUp Period 1 Rate Eligible Foi Inflation [D8+F1+�+F3] $5.8903 � FS Inflation Segment fat Txue-CIp Pctiod 1[(F4^`C3)-F4] $11A905 F6 HeadendUpgrvdeSegmeniForTme-i7pPcriod][Wks6] F7 Fsteraai Costs Segmeat Fm Tme-Up Period 1[Wks 7f _ $2.1843 F8 Tme-UpSegmenYFotTtve-UpPetiodl St.7619 F9 Ma'c Pem� i2axe fo� Trve-Up Yeriod I[F4+FS+F6+p7+F8] $9.9270 Permitted Rate Fux Tiue-Up Period 2 a b e d e Bacfe Iier2 Iiex�3 Iier4 IierS Caps Method Segmem For Tme-Up Period 2[Vlks 2] Markup M ethod Segment For Tnu-Up Pedod 2[Wks 3] C M v� t I7ei S ForTme-Up Period 2[Wks' 415] 'N Period 2 fta[e Et igi b l e F 7nflatioa [DS+FS-rG1+G2+G3] Inflation Segme 7rue-Up Period 2[(G4•C4}{i4] Headend Upgr Se�enc Fw 25ve-Up Period 2[Wks 6] ExtemalCostsSegnent ForTivaUpPeriod2[Vlks7] Tme-Up Segmwc ForTrue-Up Pe�iod 2 Mu Pe`m Rate£o* TnwUp Period 2(C}4�. Gi+G6+G7+G8] � - FCC Fo� 1240 Page 3 Microsoft Fxce15 0 Version 7ufy 1996 C6-� 5a Fedeml Commumcalions Commission Approved by OVID 306D-0685 A'asLingcon,bC20554 Niodule H: Tiv�U Adjustment Caleulation a b c d e j;� LineDescripHOa Basic iier2 Iiss3 Iier4 IierS Arl.jaswentBorTmc CipPeriod; Hl Revenue Prom Pe¢od 1 4,775,714.62 H2 RevemteFromMazP�miY•edRateforPeriodl 5,918,64322 Si3 T•cu�Up Period ; Ad}usenxat [H2-HL; 31,t?2;I'��.bQ H4 Ivieast on Period I Adjnstment S 115,369.48 d}nstme¢t For True-UP Period 2 H$ Reveaue Fmm Period 2 Eiigib]e k� Inierest H6 Revenue FmmMax Pecm Rate for Pcaod? Eligible Por I+rterest - H� Petiod 2 Adjus[m.ent Elig3le For Interest [H6-fU) H8 Intezest oaPeriod 2 Adjusaneat (See insauctions fox foxmula) A9 Revenue From Periad 2 Ineligible foi interest H70 Revcnue F}amMax Pern� Rate £or Period 2 7nelioble foi Inter Hi 1 Period 2 Adjusnnent Ineligible Foi Snteiest [H10-H9] Tmal Trve�Up AdSUStment H12 Prerious Revnaining Tme-Up Adjushnent Ai3 TotalTne-UpAdjusm�ent[H3+H4+H9+H8+H31+g12J 51,258,198A8 f314 Amwnt of7n�-Up Claimed Fox TPtis Projected Period $1,258,198.08 H15 Remaining 7me-Up Adjuvtmeffi [H13-HI4] $9.00 Part III: Proiected Period CerCi�cation Stakement FCC Fomi 7240 Page 4 Microsofr Faicei 5 0 Version 1u1y t99b Nafe. The maszmssm permit�ed r¢ce figure5 do no! take ixto actaunt any refuad (iabi(�ry you may have If you have previou5ly been order�d 6y fhe Comrrdsnon or yow (oca! franchisircg ¢utfioriry to make refimds, you are nat retieved of yow abligahan ta make suc7� refurrdc even if the permitted rate u kigher th¢rs 1l�e cotttested rate or yox� cun�enr �ate WIf,LFUL FAL�SE SIASEMENIS MADE ON IHIS FORM ARE PUMSHAEiE BY FIIVE ANDJOR IMPRiSONMEN7 (U 5. CODE iTFLE 18. SECTION 1001). AND/ORFORFEIZURE fU-S CODE. iIILE 47. SECIION iO3) b�-t5d Federat Cvmm�mtcarians Commissan Washington, DC 20554 Worksheet 1- Trne-Up Period Inflafion Fm insixw.-tions, see Appendie A of Insvucrioas Foi FCC Fosm 1240 Line Puiod FCC Tufladon Factar 701 Month I 1]8l ICR bionth2 239% 103 Month 3 239 % 104 Monih4 239% 105 ManthS 1.00% 106 Moatfi 6 1.00°/, t07 Month 7 1 DO% 108 Month 8 l.bb% i09 Month9 1.66% 1t0 Mom6i0 t.66% Ill aLtonthll 1.50% 112 MonEh 72 11� Aveiage Influton Feotor far j OISA I'rse-Up Yeeiad 1 714 Month 13 115 Manth 14 116 Month 15 117 Momh 16 i1S Monthl7 119 Momh 18 720 Month 19 121 Month2U 122 Month27 123 Month 22 i24 Vlonth23 125 Month?A �26 Avernge lnflation factoc fo� Tiue-ISp Period 2 Approved BY 0� 30b�-0685 Deo-02 Jaa-03 Feb-03 MazA3 Apo-43 May-03 lun-03 Jut-03 Aug-03 Sep-63 Oct-03 Nov-03 FCC Fom3124Q Page 1 Microso$ Ezce15 0 Veision Ju(y 1996 05-t5a Fedeial Com�nicalions Com¢tission Wasirine on, DC 20554 Warksheet 2 - Caps Method True-Up Periorl, Basic Tier For instcucriovs, see Appendix A of InsNeclions For FCC Form 1240 Ques�on I Indicate thepeuod for wtuch tbis wockshee[ is being used (Put an "X" in the appropriate box ) Approved By 0113B 3060-0685 ime-UpPeria Pmjected Pe<iod X FCC Frnm 1246 Page ! MicrosoRFxce15 D Versioa July (99fi Question2 Indicate ihe ha for wtuch t6is worksheet is being used (Put an "X" in the appropriate boz ) Basic Tier 2 'Iier 3 Tier 4 Tier 5 X Quesrion3 How ]ong is the £use period, in months�'oc which rates are 6eing set with t6is worksheett Il Qnesrion 4. How Iong is tLe second period, in mordhsSor wLizh retes aze being set wiih this worlcsheet? 0 05- � 5U Fedefal Commanicaaoas Commission WasFringtoq DC 205i4 Worksheet 2 - Caps Method Prajected Period, $asic Tier Approved By OMB i060.0685 For instructions se° Appendix A ot Insbuctions ForFCC Fortn 1246 - _ Tn�e-Up Pmjecced Period Period QaecROa L Indicate the pesiod fos wluch tlils woxicheet is being vsed (PUt aa "X" in ihe appropdate box ) 7C Question ? Indicate the tiet for wluch this worksheet is being tued (Put an "X" in the appmpriate box ) Buic Tier2 Tier3 Tier4 TiaS X Quesrian 3 How lang s rfie first peiio� in months,for which retes are being set with tlus worksLeet? 12 Quesdon 4 How loag is tte second period, in months,forwieich ra[es are being set with this worksheet? 0 1 2 3 4 5 6 7 8 9 Opeiatois Previous Cu[rent Opetator's TotalLittnse Iotal Line Peeiad Regulated RegWated �et CapFor CapFos LicenseFee FeeRese+ve Operators iotalCaps CLaunels � Channets Change C}�ennels ��enseFees RecerveUsed ��d CapUsed Adjnstmem Added ZO � Previous Month 202 Month I 0 0 03 Month2 0 0 20d Monrh3 0 0 205 Momth4 0 0 206 Manth 5 0 0 2a 7 Month fi Q 0 � 208 Month 7 0 0 209 Mon[h 8 0 0 210 Mornh 9 Q 6 2tl MomL10 0 d 2I2 Month 11 � 0 0 213 Month 12 0 0 14 Avua e Period 1 Ca s Method Ad'ustmeni � _ FCC Foim 1240 Page I Micmwft Eue15.Q Vecssion Juiy 1946 05-� � F� ��a� ��u�oa WasLington, DC 2D554 Warksheet 3 - l'Iarkup Method True-Up Period, Basic Tier Fox ins�uc¢ons, see Appeadix A of Insauetions Foc FCC Foan 124� Qucstion 1 Indicate the period foi wltich this woxksk�eei is being used {Au an "X" in the appmpriatebos ) Rppmved By OMB 3D60-068i Im�Up Peri Pm]ected P�od X Question2 Tndicatet6etierfozwSrichtk�iswoiksheetisheingused (Putan"X"iniheappropriatebox) - Basic Tiec 2 Tier 3 Tiec4 Tier 5 X Question 3 How lone is rhe fi�st period, inmonl6s, fot wlaich rates are bev�g set witfi this worksheet? ] S Quesrian 4 How ]ong is the second period � monthc, fox wluc6 mtes aze being set with this worksheet? FCC Fmm 124D Page I Microsoft Exce7 5 0 Veision luly I996 O5 5U Federai comm,m;caIIOns commiss�on Wasbington, DC 20Si4 Approved 8y OMB 3066A685 Worksheet 3 - l'Iarkup Metltod Projected l'eriad, Basic �ier Forinstructioac, see Appendix A of lnshuc[ions Fox FCC Fosm ]24D 3mrUpPe�io ProjtttedPeriod Quesaon 1 Indicate the period for wlucfi this workSfieec is being used (Pui an'X" in the appmpriate box ) X Quesriou 2 Indicate the tiei fir w3uch tivs woiksheet is beiag used (Put an "X" in the appmpriate box.) 8u3c Tia2 Tier3 Tier4 TierS X QuesROn } How long is the firsi period, in months, foi which rates are beiag set with tlils worksLeet? I? Question 4 How 3ong is the second petiod, in months, in� w}uch retes aze Lei¢g set with this worksheet? 0 FCC Form LZ4U Page 2 Mitmsoft Exce15 A Version tuly 1996 �5-t �C� Fcdeml Communicatons Cotmnission WasMngron, DC 205�4 IABLE A. NON-EXTERIvAI, COSI ADILiSrbIECi4 POit Approved By OMB 3060-0685 FCC Form (240 Page 6 MicrosoBExce15 0 Version luly t996 CHaNdES IN CHAiYNELS 05-� 50 rec4eial co�wiicasom commiss;on WashingWn, DC 20554 Worksheet 4 - Residual Tru�Up Period For iastrucrioas, see zippend'u A of lusmiclions Fox FCC Fomt 12+t6 Quesaon i fndicate theperiod Yoi w}uch tfis wor.ksneet is being used (Pvc an "X" in the appropriate box ) Appmved By OMS 3060-0685 Im�Up Period Pmjected Paiod X a b c d e Line LineDescripfian Basic Tier2 '[ier3 Iier4 7ier$ Puiod One 401 AverngePamittedC6arge $SQ10Q 2 AvemgeExiemalCostS � 521843 Avern�¢ Total Per Cbannzl Adjus�aems after 5/74l94 � fot CLeuoels Added Us' Ca Merhod 3Q 0�00 , 4�4 Avecage iiez Residuai [441-402-403] $5 8257 5 Avemge Cf+anneIs pex Regulated Iiar 28 �QO� 406 Average Caps Mettad C6aimeis pec Tier 0 oQ00 407 Avemge Remaininp CEa.nnels [4�5-4�6] 28 0040 4�8 Ave�age Period l Pe: Cluanet Residuai [404/407J 302081 Period Two 9 AvetagePecmittedCha2ge 410 Av�age Fstema! Costs 11 Average 1'otal Pn Channel Adjvsimems aflet 5lI474A . €or ChanneLs Added Us' Ca s Method 4S2 AvecageIiecResidual[404-410�11J 413 AvecageChannelsperAegulate3Iies 4I4 Ave�ageCapsMethodCt�annelspercIiet 415� Aveage Remaining G7�annels (413-414] 416 Aveeage Period 2 Per Chaanel Residual [412/415] FCCFoaal240 Pa� ! Micxosoft Fxce15 0 Vasion I� f99b o5-r 50 f� c��,�� co�son w�n�n�ro�,nc2ossa Worksheet 5- Channel Movement and Delet3on True-tip Period, Basic Tier - For insnuurtionz, see Appcndix A of Snstructions Fm FCC Foim 1244 Ap�oved By OM$ 3060-0685 Question i Indicate the peuod foi wlvch this xrorbsheet is 6eing used (Put an "R" in the aPFmpriate box.) Txue-Up Periad Projected Period� � --- ------ Indicate the aa for wluch tivs worlsheet is ►;1 . FCC Form i240 Page 1 Miemsoft cecel5 0 Velsion luly t996 Question3 How long is the fitst pevod, �n months, for which rates aze being zet witk� tivs worxsheet? FI Quesvoa 4 How long is the second period, in months, for which mies aze being set wiih this worksheet? 05 t �j f«teml com�mcauons commo;�sian �Vas3iln8ron, DC 20554 Worksheet 5- Channel Movement and Deletion Projected Period, Basic Tier Foc inshucrious, sce Appendix A of Insnvctions Fox FCC Folm 1240 Appmv� By O2vB 3Q(0-0685 Que.rrion 1 Indiczre ihe petiod fox wLicL tLis worlabcet is being used. (Pln an *X" in+he anpropriate Wx,} Fnw-Up Peaod Projected Period ' X Ouestion 2. IndicaTe ihe tier fm which this workshee[ is bein¢ vsed !Art a¢ "X" ia the appruDriate baxJ FCCFortn ]240 Page 1 Mierosaft Eecet 5 D Version 7a1y 1946 Question3 FTowloag�stheFastperiod,inmomhs.fwwlilchratesazebeingsetwiththiswoxlaHeeC? t2 Question 4 How Eong is the second period in momhs, forwhich mtes are being seC with Yhis worksheet? 0 C75-I 50 F�e�a7 co„m�icaaons commiss;oa Wu6ington, DC 20554 Worksheet 7 - Egternal Costs True-Up Periad For ins�uctions, see Appendu A at Iashuctioas Eoi FCC Form 124� Questlon I Foi wlvch time period are you filling out Uxis wotksheet? jPut a¢ "X" in tbe appropriate box ] Question 2 How long u the fi�stperiod � moaxfis, for which rates are being set xviih tivs wo�&sheee7 Question 3 How long is the seco� period, in months for which rates ue being set witL this wocksLeet> Approved By O�IB 3060-0685 7rue-UpPeriod Projat�Period X II FCC Focm 1290 Page t MierosoRExce154 Version hly 1996 Fedeial Communicatioas Commission Washingrim, DC 20554 Worksheet 7 - Exteraal Costs Projected Period For instmc�aons, see Appendix A of Instrvctions For FCC Fo�m 72A0 Ques[ion I Fot which time period are you frlling out tGis workshee[? [RR an "X" in ihe appropriate box j Question2 Howlongisthefiistperiod,inmonths,focwhichratesarebeingsetwithUilswox'scheet? Quesrion 3 How Ioag is the second period, in montLs, for wluch rztes arebeing set with t3vs wor3aheet? C�`j-I 5Q Appmved By QMB 306Q-0685 Tnie-Up Period Projected Period X Y2 0 FCC Form 1240 pyge y Microsoft Excel 5 0 Version Iuty 1996 �Line r:nona..:,.r;�� Basic Iier2 Tier3 Piec 4 7ier 5 � Fedecal Commumcations Comntis:ion Washingtoq DC 20554 Worksheet 8- True-Ug Rate Charged Fox insnucaom, e� Appendix A of 7nmuctions For FCC Foxm i?4D Quesdon I- How long is iLe Tiue-TJp Period Y, in mantLs? Quesuon2 ffowlongisiheime-UpP�od2,inmontUs7 05-1 Approved By ONIB 3Q60-0685 il a b c d e Line �neDeSCripfioa Bssic Tier2 Tiec3 I1er4 iier5 861 Deo-02 $8.0100 ' &Q2 7an-03 3&0100 803 &eb-03 58A700 804 Mar-03 SS.Ok00 805 Apr-03 $8A100 - 896 May-03 S8.OIQ0 &07 lun-03 88Af00 808 JuE-03 $8.0100 809 AvgA3 380700 SIO Sep-03 $8.0100 8ti Oct-03 $SA100 812 Nov-03 813 Pedod 1 Avernge Rate 58.0100 81& Feb-00 815 Maz-00 S16 Apr06 817 May06 $78 7un-00 819 Sul-00 82Q AugAO 82] Sep-00 � 822 Oct-00 823 Nov-DO 824 Dec-00 825 Jan-0! 825 Period 2 Aveiage Rate FCC Form 1240 Page 1 Microso$ Excet 5 � Version July 1996 05 -t sC� ADDE�TBUM APPENDIX D � �-1 50 Q x G Z G � G Q Z [i A � f � N z �� , b � U °' U =° " a p�. o S o y Z% " C w � O � w � �. o T ��a m � � �ns� oa m��. o.n m`c+w � 3 Z' ?�a ^ W O�n �O <<�, O� - N N r j p>�ECECI Y N I� F�O C L� [� [� d N Ni�O �00`I+NmNNOO�.N�� d N ' U O�%C� G� N N� (� . 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O O�� m O t� en O P n� W W M M O O�N �r L� O Q O N�r 00 2 Gt W O Q O�O N N O N�O O V V V V� V � o" v`...eio �oi�.ie�artin r'.o O O O�+ R'h N n �'+ W N CO Oi � � .v +-r .� Vl N �D v � G � c� v�,..� S `�9 ° A s m m- mC�OL7C9 U ^ ° _ � 3 v� v w F`a �� 4t o G< 6¢ � H HU n �i<7 � aaa. a � u°' v °a �,>, a >, � ¢ C � � � � � � � � 9 zzzzz��z��--� _ .:aaa,.wabaaa � u a. a a a o c o a$ o 0 0 0 0�0 � U p o �i` �-°�°.o.".,,.�°•o �_' �-' d' ro 0 o s o 0 0 0 0 0 0 0 0 0 0� ��' � �� d � -H�,< � -� ¢mciqme ox �x �� 5 ° � s� G E O � O� O N O �O l� P O-� N n V v� M� a z .� N N RV N N N N Ci N N M M c'� e"� M � 0 n 0 a ti 0 $ a [r] P H U � O L O < v � d5-t 50 �_ J ASHPAUGH & SCULCO, CPAs, PLC Ceriiiizc Pubiic Accountznts znd Consuliants Februazy 18, 2Q05 AS1043-t72 Kazen Johnson, 7�irector Office o£' Iechnology City of St. Paul 240 City Hall I S West KeIIogg Bouleva['d 5t. Paul, MN 55102 gLTBTECT: Second Addendum to the Letter Itepoxt of Januazy 24, 2005 Concerniug the �CC Foxm 1240 of Comcast of St Paul, Inc. filed with the City of St. Paul Februazy 27, 20Q4 Dear �r4s. .Johason: Ashpaugh & Scuico, CPAs, PLC ("A&S") was provided the Februa2y I5, 2005 comments of Comcast (the "I,ettec'� conceruing our 3anuazy 24, 2005 letter report (fhe "Repoxt"), the Addend�an of'Febivaiy 7, 2005 (tYie "Addendum") and the City's letteT' of Feb�uazy 10, 2005 The following discussion addresses each point of the Lette� COPYRIGHI FEES Comcast azgues in the LeTtes that the copycight fee expenses azs not confidential, but in fact the letter seems to refec only to infoxmation Comcast used in its calcularions, not infoimation A&S used. I address the significance of ti�is below, but begin by reitesating oux agproach.. The Comcast copyiight fees included on the Foxm 1240 weze not based on the company's actual costs in St.. Paul, but instead were based on an allocatian of copytight fees fnx the regjon to the City For its calculations, Comcast reIied on infoimation that it did not claim was confidentiai.. As e�cplained in the Addendum, howevex, this allocarion methodology can overstate or understate tfie fees actually attnbutable to any systesn. Therefore, A&S calculated the copycight fee that would have been owed if St. Paul wecs a standalone system. Copyiight payments owed depend on revenues, among other things- Mateiial Comcast provided to the City on Qctober 15 {refezenced in 1VIs. Wiorek's letter) shows Comcast pays a fee equal to .956% of'revenues subject to the copyiight payments. We applied fhis pei'centage to relevant St. Paul-specific revenue data provided to us by Comcast (this is shown at Line 6 of'Appendix E to oitt Report). We did not show the revenue data used because ComcasY does ciaim that this information is confidential I attach £oi yout infoxmation a redacted fust sheet of'the iepost I relied on as Second Addendum Attachment 1; it is cleariy mazked confidential. Hence, when Comcast claimed in its Februa�y 4 oomments that it couid not replicate the A&S copyiight calculation and that tfie A&S calculation was "�u�known," it was simply 1133 Louisiana Avenue Sui[e 10b • Winter Park, FL 32789 • 4Q7645 2020 • Fax 907 6454a70 gashpaugh@ascpascom � cscalco@ascpazcom d5-IS� Karen Iohnsan, crty of sc. Paui P ebivazy 18, 2405 Page2of3 complaimng that we had not disclosed revenue infomiation Comcast had farbidden us from disclosing This nondisotosuie should have presented no bui•den to Comcast, as it has the revenne data it presented to us. In fact, Ms. Wiotek's le� at ona point sta2es thaY disclosure of the amounts is "nat retevant" In short, to the extent that Comcast is seskina ta imply that my report sedacted info�ma#ion that Comcast never claimed was confidential, it is wron�. To the extent it is sEating its own calculation relied on iufoimation that is not confidential, that is ixrelevant — the A&S calculation was not based on the same information_ To the extent ComcasYs lettet is intended as a substantive, addirionai iesponse to oiu xepost and not simply a sesponse to ,po�u FeUivaxy 10 lette�; it adds nothing to what Comcast said befoze, and does not directly contest otu conclusion that the A&S appznach more accucately calculates copyiight fees att�ibutable to St Paul. A&S's calculation re�nains appropciate £or setting xates in out view. Pxo�Rn �rc cosrs Comcast has now provided updated progcamming costs and have ieflected these costs in an Amended Foim 1240 However, Comcast is still making some of the same etrors in its teporting that led to the recommende@ adjustments in out repoits. The p�ngranuning expense dispute revolves azound cflsts for four channels: WGN, the Weather Channel, CSPAN and the Prevue Guide. Ptbgrammers o$en chaige a base amount to cable opezators, but then reducs amounts owed,by vasious discounts. While A&S agrees with tfie base subscxibe� aznounts iepoxted by Comcast for WC,N, The Weather Chaunel and CSPAN, there is no indication that Comcast has faken discounts such as the bad debt discount into account in its calculaiion,. Regazding the Prevue Guide, Camcast contiaues to include expense based on pex subscciber calcuiations However, it is our understanding that the charge foi this pxogar�rniug is a flat monthly rate and is not based on pe� subsczbei calculations. Camcast's Prevue Guide calculation aiso does not appear to reIIeck discounts such as the bad debt discount. Ihe City in its Feinuazy 10 letter requested Comcast provide progcamm; `" conkacts for any diff�ences it maintains with the A&S raleulation Comcast has not produced the contracts, T'he sheets identified as "invoices" that aze attached to the Lettec are inconsistent with data foi the same progeam*n�ng and the same time pexiods provided by Comcast to A&S fot othei reviews A&S continues to tecommend the C`ity reject CamcasYs detecmination of pragar expense and accept the A&S calculation. 'IY�uF-Ur IsSUEs While not an issue taised by your Febivazy 10 lette�, Camcast opted to submit additional comments on ou; tcu�up calculatiori We excluded November 2003 from the true-up peaiod because Comcast did not have supparting data for November 2003 at the time it filed its Form 1240 3n its FabtuaTy 10 lettes, Comcast states that it provided suppoiting data fos the month of'Novembes 2003 on October 15, 2004, or about eig�t months afker the Foim 1240 was filed Howevez; the Fotm 1240 instructions iequire that the ttue-up anly cover periods foi which data is avaitable at the time of'filing I�ence, we stand by our recommendation that November2003 be excluded from the �u�up calculafion. �5'� �' Karen )ohnson, City of'St Paut Febtu2sy 1$, 2005 Page 3 of 3 Comcast also identified an additional miscaiculation in the Report A&S has reviewed the pmblem and agrees with Comcast. Inadverteutly, Alovember 2002 was included in tha calculations on Appendix E. A&S has conected this and a IZevised Appendix E is attached to this lett� report Ia addition, these changes caused changes fo the Foim 1240 As sucn, a revised Foim 1240 is also attached as Revised Agpendix C The resutting rates are shown in Revised Appendices A and B. It shoutd be noted that while Comcast is coxzeet that the inflation factor on Line CS of ihe 1240 must be updated, Comcast used the wrong amaunt. The FCC's sules state that the 1240 must reflect the Iatest published infIation factoi on Line C5. That amouni is 1.43% and not the 323°/a used by Comcast. The zevised I240 included with Yhis letter has the cosrect inflation factor on Line CS CONCLUSION The comrnents of' Comcast have been addressed above The identi$ed miscalculations on Appendi�c E have been cotrected and are reflected in the aitached Appendices. As shown on Revised Appendices A and B, tuakiug the above changes decreases our Maximum Petmitted Rate ("MPR"} to $9 95, $10..47 ineiuding francluse fees Both amounts include franchis� ielated cosis. A&S tecommends the City adopt these xates. We xecommend the City: {i) xejeat the filing of Comoast; (u) adopt A&S's 1240, which is attached as Addendum Appendix C to this le#er repoit; and (iii) approve the MPR of $9.94b0 as recalculated by A&S In the order, the City should state that if' any infoxmation should become known in the fuhue which would imgact thesa xates, the City may revisit this deeision. The City should fiuther state that (1) this amount includes the FCC Regulatory Fee, (2) t3us amount includes ail franchis�telated costs and (3) this is the maximum xate allowed for the Basic Setvice'Iiei undez the FCC's iuies If'you have any questions os requue any fuither infoirnation, please let me know Veiy t�uly youES, ASHPAUGH & SCULCQ, CPAs, PLC / � r ' /.�c�� '�/ C '. Gazth T Ashpaugh, CPA President and Member Cc: Lisa Veith, Esquire, City Attotney Joseph Vau Eaton, Esquim, MiTler & Van fiaFon, PLLC P,nclosure Secovd Adtkvdum m tlta 2004 I240 Report 05-t5� REVrsEn ArrE�vnzY A o��s� REVLSID APPr,NDIX A ST.. PAL�I„ ML�TN�ESOTA COMCASI QF SI - PAUZ, #I4C REVIEW OF 2004 FCC FOR1�11244 RECfl��r�DED RAIES Recommended Rates Rates Recommended Including ��e Fot Franchise Fiaztchise �70. Iype of Sezvice Apgroval Fees Fees of 5.00% Monthlv Ra4e 1 Ma�mum Peimitted Rate - Basic Iiei $9.95 $0.52 $10.47 05-►50 R�vrs�n Arr�rmrx B �5-15� G � C L 6 e 0 fi m > C Gtl E' a x Q v�''i � y O � � � W F � � � � Q W "t d � F 4 U Q � tr U O � � N U w Q O F U � � °�z m � � a U O z O m a ¢ � � L F 0 W z � a 4 a � 0 � a L � � � � � � � v `�' i'c � — o w < �+ � y � e ❑ C ° c s H V U. Q e 0. !j � O � ca + ' ` v ` p w v`� Q U v y, z ¢'�, Q '� C J � � c N � � � � G o � � o m G, i» e � e V �+ L Q "+ U D F N� N V Q = 4 = .�i �. C U Q N u` q o � "��= o z c� -- � U m � � � � � ^m ' � z'e U � U d N y � � ro f�l�' � n ... 4 ¢ �" �m Ca � � v � a V V l N'O b l� u 4 S' 4�' W Q .J � v � �D � �° � � C� a v m o k h ro e � N � 4 U �" �„� N iS � a F U G C a o � ' a ' 9 a v � e �. � x � h i � � � � � � N J � O C' [L N O V Q N EA y O O U W � � � O O CL R � 49 U >, v a` � R U � v � m m � U Y (J m v � m o � e d R � U a�. tt F u [� U W � m R �D � /. N . C O _ ;� Z O m L v5 a 5� REVISEA APPEND]X C d 5�� 5� Fedaa] communicelions co�n;ssion WashingtoR � 20554 Appmved by OMB 3060-0685 FCC FO&�11240 TSPDAIING NIAXIitiSL'U4 PER�II7IFII RA2E5 FOR ItEGISLAI ED C.ABLE SPRYICES Cable Qpetatot: YES T NO 1 Daes this Siiag involve g single franchise authoc5ty and a single cammuniry unit? X I � tt yes, compfete the franchise authorsty inTbmiation below and entei the associazed CiRD nwnber here: _ n2VO424 YES NO 2 Does this fi7ing involve a single franchise anthority but mulGple community uniu? X tf yes, entec the associated CUIDs below and complete the franchise authoxiry infocmation at the bottom of this page: 3.. Does thfs filing invoive maltiple fraucLise authotities? NO 1£ yes, attach a sepazate sheei foT each franchise authoiiry and inc7ude ihe following franchise authoriry infarmation with its associaaed CIJiD(s): Franchise AuthoriTy Infotmatiun: 4. For wfiat puLpose is this Foim 1240 beiug filed? Pfease pui an "X" in the app['opriate box. a Original Form 1240 fo� Basic Iier X b Amended Form 1240 foi Basic Iie� c Original Fom3 1246 for CPS iier d. Amended Form 3240 £oi CPS Fier FO 5. Iudicate Yhe oae year time peciod for which you are setting rates (the Projected Pex�od) 06/01/Q4 OS/31/OS TO 6. Tndicate the time peiiod fo� which you at e petfoiming a tt�ue-up.. 12/01102 11/30/43 '7. Status of Previaus Fiting of FCC Focm 17A0 (enxei an '•x" in the appinpiiate box) YES NO a Is this the fiist FCC Fmm 1246 fited in any juiisdicaon? g b Has an FCC Foan 1240 been fited previously with the FCC? g If yes, enter the date of the most recent 51ing:� {mmldd7yy) YES NO c Has an FCC Foan 12R0 been filed previwsfy with the Fxaocltising Authority? g if yes, enta the date of the most recent filing: 02126fQ3 (mm(ddlyy) (�ri) Cmr"lYY) ' PCC Foon I24Q Page i . Microsoft Excet 5 0 Vecsion 7uiy 1996 .its • Fedemt Communiqtions Comxnission WashingEOq DC 20554 8. SfaYUS of Preyious Filing of FCC Fotm 12i0 {eater an "a" in the appxoptiate box) .4ppmved by OMB 306Q-0685 YES NQ a Has aa FCt Fo�m 1210 beai previously fr]ed with tfie FCC? X If yes, enter the date of"the most receat filing: 12lOU95 (mmldcUyy) YPS NO b Has an PCC Fo:m 2210 bee¢ previously frled with the Franchisin� Authrniry? X If yes, enter the date of the most recznt filing: i1/18l99 (mmlddlyy) 9. Sratus of FCC Fo*m 1200 F�ias (entez sa "a" iu the apptopciate box) a Has w FCC Form 7200 been previoasty filed with The F CC? YES NO X If yes, enta the date filed: �(mm/dd/yy) YES NO Has an FCC Form 1200 been previovsly filed with the Franchising Authociry? X � If yes, entet the daze filed: 08714/94 (mm/dd/yy) i0. Cable Pragramwing Sezvlces Complaint Status (eaTei an "x" ia the approp� iate box) YES NO a Is this £orm being filed in response to an FCC Form 329 complaint? 7{ Zf yes, eneca the date of the cainp3ainr.� (nm�lddlyy} YPS NO 11.. Is FCC Focm 1205 8eing I¢cluded Witli Ihis Fili¢g g 12.. Selection of "Going Fo�ward" Channel Addifion Methodo3ogy (enter an "x" in t6e appropriate 6ox) �Check here if you aze using che otiginal rules [MARKUP MEIHOD] �Check here if you are using the new, altemarive rules [CAPS ME THOD] tf usi�g the CAPS ME IHOD, have yov elected to revise ncovery for channeIs added during the period May I5, F 994 to Dec 31, 1994? YES NO X 13. Headend Upgiade Methadology � *NOTE Ope+a[ors must certify ta the Commission the'v eligebiltry to use thit upgrade methodology and attach an equipment tist and depreciation schedule �Check fiere it you are a qualifying smail system using the streamlined headeod upgrxde methodoiogy Part I: Preliminarv Informafion Module A: Maz3mwn Pexmitted Iiate Fx•om Previons Filing Cluient MaYimum Pecmiited Rate Averege Su Fm Tnie-Up Period I Ave rag e S li h scri b ership For Tme-Up Peaod 2 Pstimated Avem¢e Su6scnbe�ship ForProjecied Period (7ncEaimed Inflation: Unclaimed Inflation: inflaEian Factor For TmrUp Peaod 1(Wks 1] i nfla ri on Facmi For Tme-U Penod 2IR'ks 1] Glssrem FCC Cnflaaon Factor 1210'fo 1240 a b Basic Iitr 2 $IQ.0734 Subscribershin a b Basic Iier2 54,224 to Rate Complaint c a e iitr3 TieeA Iie�5 c d e Iier3 'Iie:4 IierS FCC Fmm 1240 Page 2 Microsoft ExceS 5 0 Version July 1996 Frdual Co�uoicatians Coffiva5ioa Vlazivngton, DC 2p554 Line Descr cuneuc xesa�a upgraac se�eac Cw�eui Caps Method Segmerst CwrentMarkup Method Segment Cu�rent Clta�el Movement and De3efion Clta'ent Inflation Segment BaseRate fAl-Dl-D2-D3� a b Bade Iier 2 50.0060 3231fi6 50.0000 so.0000 so.ocoo 51.7617 $0.1048 55.8903 Part II: True-Un Period 1Vlodule E: Timin� Tnfoimation 05-�� Appmved by OMB 3060-0685 c d ¢ Iier3 Iier 4 Iier 5 What Type of Tnu Up Is Being Peif'otmed? (Answa "I ", "2", m"3". See Inctruc[ions for a description of these types.) If"1", go fo Moduie L Yf "2", answec E2 and E3. If "3", answu E2, F3, FA, and E5. Ni o Mo i t he T niP Up Puiod I Nu o f Mo be[ i h e end o£True-Up Period I and the end oFthe most ncent Projected Penod Number of Months in Tn�aUp Period 2 Eligble for Interest N�ber o f Monrhs True-Up Period 2 Ineligible Foi Interest NIodule F: Maximwn Permitted Rate For True-U Period 1 a 6 c d e ],�n¢ LineDescripfioa Basic ISer2 7Ser�3 FFer4 iier5 FI CapsMethodSegmentForTrue-UpPedodl[Wks2] $0.0000 F2 Maikup Method Segmeat ForTme-Up Period 1[Wks 3} $O.00W 3 Chan Mv�t Deletn Segment Fot Tnxe-Up Period ] jWks' MS] F4 7+ue-pp Period 1 Rate Eligjble For Inflation [D8+Fl+F2+F3] $5.8963 FS Inflarion Segment for Tm�Up Period 1 j(F4*C3)-F4] $0.0905 6 Heade¢d 13pgrzde Segment ForTme-Up Period I[Wks 6j F7 Extemal Costs Segmrnt Fos Tme.Up Period 1 jWtcs 7j $2.1i97 F8 Trve-Up Segment For Tiue-Up Period t $1.7612 F4 Mu Pe�m IEate fox TmcUp Period 1[F4+FS+F6+F7+F8� 599016 G: a r e Caps Met Segmen Fo P eriad 2[Wks 2] Markup Method Segmelrt For True-Up Period 2[Wks 3] Chan MvuvR De1efi Se�eut Foi Txue-Up Period 2[Wks' 4/5] TU Period 2 Rate Eligtble Poi Inflation [D8+FS+G1+G2+G3] Inflation Segment fri 7nae-Up Period 2[(G4*C4}-G4] Headevd [Jpgade SegmentFor Tmo-Up Period 2[Wta 6j Ectemat Costr SegfneoE ForTme-Up Period 2[Wks 7 Tn.cUp Segment Foz Tme-Up Peaad 2 Max Peim Rate fer Tme•Up Period 2[G4+GS+G6+G7+G8] FCC Foim 1240 Page 3 Microsoft Ekcel 5 0 Vusion July 1996 05 -I 5� Fedeczl Comm�micarions Cominission ?,ppcoved by OMB 3060-0685 R%asLington, DC 24554 Module H: Trne-li Adjustment Caleularion a n � a e Line Lme Descriptiou Basic Iier2 Iier 3 Iiu 4 Zier 5 Adjus6nentFor Tme-Up Period 1 Hl Revenue From Period 1 4,7?7,654.98 H2 Revenue From Mac Pe�Ued Rate for Period 1 5,905,941.05 H3 Tme-UpPaiodiAdjuslmeot[I32-ffi) 31,128�86.07 A4 I�erest on Period 1 Adjustmen[ 3113,792.72 Adjusbnent For 7nec IIp Period 2 FIS Revemie From Period 2 Eligibie for Iaterest A6 Revenue From Max Perm Rate for Period 2 Eligible Fox (nccrest H7 Period 2 Adjustment E[igitle Fat Intaest [H6-FL5] . A8 Interest on Period 2 Adjustment (Sce i'utrucvons for formula) H9 Revem�e From Period 2 Saeligible for IraeresC H10 Aevenue From Mac Penn Rate fos Period 2Inefigible for Inter HI i Peciod Z Adjusrmefu Inetigi6le Foc latemst [HI0.FI4] Tuffil "Iru�UP �.i��enf 12 Previovs Remaioing TruoUp Adjut4nent Ffl3 Total Tme-t7p Adjnsanent [H3+H4+H7+HS+H11+H12] 51,242,Q18.79 H14 Amoumof'Lnv�UpCtatimedFOiTtilsProjec2edPeriod $1,242,078.79 AIS Remaming Tme-Up Adjosnnent [H13-H19] $Q.60 Part III: Praiected Periad Certificatim Statement WiLLFUi FALSE SiAIEMENIS MADE ON IHIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENi fU S_ CODE I17IE E8. SECIION ]001), AND/ORFORFEIIUREIU S COD£. 7IILE 47 SECIIQN 503) and Ti+1e of Peeson Completing rhis Eocm: Jefrrey Ossowski, V.P. Einance MidWest Division FCC Form ]240 Page 4 Microsoft E�ei 5 0 Vecsion JuSy 2996 Note. The nmuumnt permined rate figwes do xot take inta account any tefund liab:2iry you may have IJyou hove prnviousey Been ordered by b4e Commtssion o� yom locai franchising aulhori3y [o make refunds. you ar'e no[ reiieved of yow oblig¢rion to make such +efimds even if [he pe�mi[ted rare is higher than the contesr¢d ratr or your cvrrentrate �5-150 F�a� co�� co�� w�t,;ugcon, nc 2ossa Worksheet i- True-Up Period Inftation Fa'msauctions, see Appendiz A of Insauctions Foz FCC Fo[m 1240 Line Period FCC Inflation Facto+ I01 1loirth 1 1.78% 102 Monch2 2.39% 103 Month3 239% 104 MomL4 239% 105 Month 5 1.00% 106 Mornh6 1.W% - I07 Month 7 1.00% 708 Momh8 1.66% 109 Manth9 1,66% Ii� Mo�hlO I.66% 111 Mon1L 17 1S0% i 12 Month 12 I13 Average Inflation Facto� fm 1 0154 Tiue-Up Period 1 114 Month li 115 Month 14 116 Mo�h 15 i17 _Monffi76 t18 MonthE7 l 19 Monih 18 12O A'EDIlIS11S 121 Month 20 122 MontL 21 123 Mon[fi22 124 Nfonth23 125 Month 24 125 Avelage InflatioII FacNt fot "Imedip Period 2 Approved By OMB 3060.0685 Dec-02 7an-03 Feb-03 bfar-03 Apn03 May-03 Jun-03 Jut-03 Aug-03 Sep43 Oct-03 Nov-03 FCC Foon 11f40 Page F Mitmso8 Exce15 0 Veision 7� �gqb d5-15� Federal Co��wications Commission WasLingtoq DC 20554 Worksheet 3 = Markug 3blethod Tru�Up Period, Basic Tier For inswccions, see Appeixlix A of Inshuctions ForFCC Fm�a 1240 Queseoa 1 Indicate the per.od fii which this wo=ksheet is 6eiug used (Put an "X" in tfie appropriate box ) Approved By OMB 3060-0685 Ixye-lip°erio Proj�:edPuiod X Question 2 Indicate the tier fm which chis worlcsheet is being used (Put an "X" ia the appmpriate box ) Basic Tier2 Tia3 Tier4 TierS X Q�esrion 3 How long is the fustper,od, m months, frn which rates are being set witk� this worlsheeC? ;1 Question 4 How Iong iz the second period, �n monlLs, fa wf�ich rntes are being set with ihis worksheet? 315 Month 13 3i6 Moatl� 14 317 Monthli 3t8 Momhlb 319 Month 17 320 Month 18 321 Mornh 19 322 Morth 20 323 Monih27 324 - Mornh 22 325 Month 23 32b Monih 24 327 Average pes'iod 2 Caps Methad AdjustmenE FCC Foim 7240 Page 1 Microso8 Fscel 5 0 Ve�sion 7u1y 1996 �5 Feaemt Cammunicauons comntission Was3ungton, DC 20554 Worksheet 3 - D�Iarkup lYIethod Projected Period, Basic Tier For insauaioas, see Appe�ie A ot insimclivns ForFCC Form 1240 Question I Iadicate ihe period foi wlucL this worksheet is being used (Put aa "X" in the appropriate boz ) Apgcov� Bg OMB 306a-0fi85 Tiue-UpPert PrujectedPe[iod X Quotion 2 Indica2 t6e fiex foi which this woiksSeet is being used (Put an "X" in the appropriate box ) Bazic 7ier2 Tier3 Tier4 TiaS X Question 3 How long is the Sxsc pedod in months, for which rates aze being set with tfiis wo�icsheet? 12 Ques4an 4 How long is the second period � montts, fot which rates are being set with this worksheet? � PCC Fo�m 124U Page i hlicrosofl FxceF 5 0 Vw�ion Juty 7996 b�-15C� F�a�a co��ano� co�on Wasivayrtnn, DC 265>4 IABLE A NON-EXIERNAL COSI ADIi1S7?�IENT FOR CHANGFS lN CNA��INELS Appro�red By OMB 3060-0685 fCC Fmm 1240 Page 6 Microsa$ Fxcel 5 0 Vexsion July 1996 o�-�5a Federnl Co � *ons Camm�ssion WasLmgoR DC 205i4 ppproved By OMB 3060-0685 Worksheet 4 - Residual TrcEe-Up Period For iosm�cROUS, see Apprndix f+ of Insauctions Fox FCC Fo� 1350 Question 1 Indiwte ffie period fa. wLich tG:s u:ox7�•`.w �s bem� us^r :°u*. an "?f" in �ue appropriate box.) Ime-Up Pedod Projected Pen X � Peiiod One 401 AveragePetmittedC6ar�e S8OiD0 402 Average Extemal Costs 32 1597 403 '`�°�'ge Totz( Per C6annel Adjusm�ents after 5/14/94 SO 0000 for Channels Added U' Ga Method 404 Avecage Iiei Residual [401-402-403j SS 8503 405 AverageChaunelspe*Regutated3iel Z8Q000 406 Avexage Caps Method Channels per Iiel 0 0000 407 Average Remaining Channels [405-406] 28 D000 408 Average Period 1 Per Chamei Res3dual [404/407] SO 2089 409 AveragePemriltedCLarge 410 AverageEztemal Costs � � � 4I1 AverngeTotatPerC6anoelAd}usbneuLSa8er5l14/94 For Cf�anaels Added U" Ca s Method 412 Average iiec Residual [409-410�1t 1] 13 AvemgeChamie7spaRegula[edlie� 414 Averege Caps MetLod Cliannels per Iier 415 AvetageRevia�ingChaxmels[413A14} 16 Avernge Period Z Pa� Chamiel R�sidual t4i2/415] FCC Fmm 1240 Page 1 Microso8 Excel 5 0 Veisiou 7uly 1996 O�-1�a feaeat cnmm¢nicariorts commission R'ashington, DC 20554 Worksheet 4 - Residual Pxojec#ed Petiod Quescios I Indicatc the period fox which this wod5heet is being used {Put an "X" in ffie appmpziate box } ��rov�a a on2s so6o-o6as Ince-UpPeriod ProjectcdPeriod X a b c d e L�z LineDescri tion Basic Iier2 Iier3 Iier4 IierS PHiod One 401 AvetagePermittedC}3ara $700734 402 Aveage Fxtexnal Costs Sl 9897 403 Aveage Totai Per Channe] Adjustments after 5l14/94 focChanne3sAddedU' C Method 404 Average Iie� Residual [40]-402-003] S8 OS37 405 Avenge Channels per Regilated iier 28 0000 6 Avemge Caps Method Channels per Iiei 0 0000 67 Avernge Remaining Cbannels [405�06j 28 0000 408 Aveage Period 1 Per Channel Residual [404/40�] SO 2887 FCC Fo�m I240 Page2 MicxosoBExce150 Version Jn3y 1996 a5-i 5a Fedczal C,ommunicatima Commission WasLiugton, DC 20554 Worksheet 5- Channel n'Iovement and Deletion True-Up Period, Basic Tier Foc iasnvcUOtu, see Appendiz A of instrurtioas Foi FCC Fo� I240 Approved By O?�IB 30b0-0685 Quesaon I Indicatethe peaod far which this v+neksheet is 6esg used (Put an "X' in the appmpeiate boz.) Tzue-UpPeriod PmieccedPedod R Question2. Indicate the tia for which this worksheec is beinR �+sed. (Put a¢ "X" in t6e appropriate Lrox) FCC Form I240 Page 1 Microso$ ExceE 5 0 Veision 7u7y 1996 Question 3 How 3oag u the fiist period, in monH�s, fo� which rafes are heing set with this worksheel? ll Question 4 How tong u the sewnd period, in moaths, foI wluch ntes are bcing set with this workshee[? �j�-15� Federa] Commuaicarioas Commissioa Waslringtan, DC 2055L Worksheet 5- Channel Movement and Deletion Projected Period, Basic Tier For insevctions, sce Appendix A of 7nsmmtions For FCC Fo�m 1240 Approvul By OMB 3060-0685 Qustion I ludipte tfie period for wlvch tttis warksheeT is bemg used (Put an'x" in tLe appropaa[e box.) Tme-UpPedod ProjecCedFeriod X 2. Indicatethe tiee far wluch tbis wodcsheet is bemg used. (Put an "X" Q�eshon 3 How long vs the first period, in monUvs, foi which rntes are being set w�th t[tis wocksheet? Quesiion 4 FSow long is Yke sewnd peliod, in months, foc which retes aze being set with this wockshee[? 1 2 3 4 Net Per-Channel Cost esidaal of Chaanels Deiefed Residual of C6annels Moved Cumulafive Net PerCha¢nel L'me Period From Iier (added)to I3er Adjustrnent (Column 2- Cost Adjnslment Column 1] 501 Previous Period 502 Moath 1 503 Month 2 504 Month 3 SQS Mo�k 4 506 Momh 5 507 Monih 6 508 Month 7 509 MoM6 8 510 Moath 9 511 Month 10 512 Mouth 11 Sl3 Month 12 514 Avuage Puiad 1 Channel Movement and De[etion Adjustment FCCfoanflAO Page 1 Microsoft Exce15 0 Ve=sion Iuty 1996 C�5-I 5 Z� Fedual Co�irmcarion� Commission Washington, IK 20554 Warksheet 7 - E�ernal Costs True-Up Period For inshuctioac, see Appendix A of Iusauctions Fox FCC Form 1240 Question 1 For wMchrime period are you Sfling out this worksheeV jPui an'R" in [he appropriate box ] Question 2 How lone is the fijsi period, in montfis, fo� which mtes are 6eing s� with rhis worksheeC? Question 3 How fong is the second period, in mont6s, £or wlrich rntes arebeing set witfi ttis worksheetl Basic Iier 2 Iiet 3 Approved By 014B 3060-0685 Icue-Up Period Pmjected Fetiod X lI External Costs F.ligible for Markup Cost o€Programming For Channels Added Prior '711 to S/15194 ot Afta Sl15/94 Using Mazlmp MetSod For Period 712 Aeir.wsnussion Consent Fees Fm Period 7i3 CapyrightEeesFoEPeriad 714 Exteinal Costs Eligible For 9.5 % Matkssp 715 Madced Ilp External CosLs Extemal Costs Not Eligible for Msiknp 716 CableSpecificTaxesForPeriod 717 FmnclvseRelatedCostsForPeriod 718 Commission Regaiatory Fees Fox Period 719 Total Extemal Costs For Period 720 Monthly, Per-Subscriber Fxzemal Costs For Period 2 FCC Form 1240 Page t MicrosoftExcei 5 0 Veision Iutp 7qg6 p5-150 Fedemt Commnmcatioas Commisson Washington, DC 20554 Worksheet 7 - Ezternal Costs Proj ected Period For inshuctions see AppendLx A of ins4uc�ons Foc FCC Fmm 1240 Quvitionl Fo:wSichtimeperiodareYoufiS]ingouitfiiswodsheUY {Putan"X"iatheappropriatabox) bo Question 2$ow long is the firt period, in months, forw7uch rates aTe being set with this wor&sheet? Quesrioa 3 How [ong vs the second period, in monihs, £or which rata are being set with this workshut? Approvul By OMB 3060-0fi85 imaupPeriod Pm}ectedPedod X 12 0 FCC form 1240 page2 � MicrosoftEzcel50Versioa 7uiyI996 �7;�o i:.,en��:..«,.,, Buic . Iier 2 ' Iier 3 Iier 4 Iier 5 � Feaeml co�uvicario� commisrion Washingoa, DG 205i4 Worksheet 8- True-Up Rate Charged Fox insmm=ctioas, see �lppmdix A of Ixunvcrions Fox FCC Fwm 124Q Quesrion 1 How loag is zhe Zn�e-I�p Period 1, in monibs? Question 2 How loae is the Inu Ug Peaod 2, in montlss? OS-15C� n�:ovEa sy oi,as ao6aosss � a b e d e y� LineDescriptloa Basic iier2 Iiec3 Iier4 7ier5 801 Dec-02 58.0100 802 Jan-03 $89100 �3 Eeh-03 - SB.OtQQ 804 Ma�-03 $8.0100 805 Apr-03 $8.6100 806 May-03 $8.0100 807 Jun-03 58 0100 808 lul-03 $8.0100 809 Aug-03 $8AI00 810 Sep-03 $8.0100 811 Ocb03 $8 OIOQ 812 Vov-03 873 Period 1 Avemge Rate $8.0100 8f4 Feb-00 815 Maz-00 81b Apo-00 817 May-00 818 Ju�00 819 7u1-00 820 Aug-00 821 Sep-00 szz o�t-oa 823 Nov-00 824 Deo-00 825 Ian-0l 825 Period 2 Avernge Rate • FCC Foim 1?AO Page 1 Micxosoft Esce15 0 Ve�ion luly 1496 C�5 -I 5C7 REVI3ED APPEN�IX E p5 -150 L Q X O � N Z � � N 4 fl � > � G O > N d U U +� LD � V � z � R z � a ��a � .J N 6 a � N �i � �r w � a O � O � O h U N T o i 3 ¢ � > � O Q p � '^ fV � q q N N � O Q P � N � � N y � N E � N � N O� O O � N N h N 4� O` C ^ V' v 'V " N a � - ' - c� o � � -- . ,� v y "' w � � � V q O N � N h O O ry �'V e1 p .� V � M � P N � N � vv � c: ri � � w v � .� c = " °� P � ° c�. � �v � o m c ^ ' ' O � di N „ ..� r N � �' r � a � K � � O M ? M� v O O � N Q N � � v O p o � � - �., - � � � G O I� N N P�`� C � O �' � O O � N N � � � � M O � � N K = m 0 O 69 Y O � PKN��N � � � � M � � N O nl tV �O N N � N � v�.+ , V 6 � Z � � O Vs P m �O v�l � � O � a� O P � C O � � N N 69 N N v < � Q r w a � N m r V �G � V b O h M R O. 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