HomeMy WebLinkAboutRESOLUTION - 27-94 - 5/24/1994 - ENGAGE ACCTOUNTING EXPERTRESOLUTION NO. 27-94
A RESOLUTION REGARDING THE ENGAGEMENT OF AN
ACCOUNTING EXPERT TO EVALUATE CONTINENTAL'S COST -
OF -SERVICE SHOWING FOR BASIC TIER CABLE RATES
WHEREAS, pursuant to the Communications Act of 1934, as amended by the
Cable Television Consumer Protection and Competition Act of 1992, and the
regulations prescribed thereunder ("Act"), the member municipalities of the
Group are each certified to regulate the rates charged for basic tier cable
service in their respective municipality and all equipment, installation,
and other services used for such basic tier service; and
WHEREAS, pursuant to the Act, Continental Cablevision of Northern Cook
County ("Continental") has submitted to the each municipality, on November
23, 1993, its FCC 393 form, requesting approval of its basic tier cable
rates; and
WHEREAS, Continental then, on December 29, 1993, submitted to the
municipalities its cost -of -service justification for its basic tier cable
rates; and
WHEREAS, the Act allows franchising authorities a 180 -day period to
review and evaluate cost -of -service showings in order to make an informed
and reasoned judgment on proposed rates and to prepare a final rate
decision as to whether proposed rates are within the Federal Communications
Commission's reasonableness standard or justifiably above the presumptively
reasonable level; and
WHEREAS, the Group has been empowered by its member municipalities,
pursuant to paragraph H of Article VIII, Powers and Duties of the
Continental Regional Cable Group, of the Continental Regional Cable Group
Amended Agreement, to advise and recommend to the member municipalities on
the need for the regulation of rates; and
WHEREAS, the Group has been empowered by its member municipalities,
pursuant to paragraph L of Article VIII, Powers and Duties of the
Continental Regional Cable Group, of the Continental Regional Cable Group
Amended Agreement, to consult with persons knowledgeable in cable
communications and persons having a special interest therein, such as
technical experts; and
WHEREAS, the Group has determined that, in order to properly advise and
recommend to its member municipalities on the need for the regulation of
Continental's basic tier rates, it is necessary to consult with an
accounting expert in order to review and evaluate Continental's
cost -of -service showing so as to determine whether Continental's proposed
rates are within the Federal Communications Commission's reasonableness
standard or justifiably above the presumptively reasonable level; and
WHEREAS, the Group has received, upon its request therefore, Proposals
for Professional Accounting Services from several accounting firms, has
reviewed the same, and is desirous of accepting one such Proposal.
NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees
of the Village of Elk Grove Village, Counties of Cook and DuPage, State of
Illinois as follows:
Section 1: That the Chairperson and Secretary of the Board of
Directors of the Continental Regional Cable Group are hereby authorized to
execute, on behalf of the Continental Regional Cable Group, a professional
accounting services contract with the accounting firm of Crowe Chizek,
in the approximate amount of $17,450 plus $700 in expenses, for the purpose
of engaging such accounting firm to review and evaluate Continental
Cablevision of Northern Cook County's Cost -of -Service showing, so as to
determine whether Continental's proposed basic tier cable rates are within
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the Federal Communications Commission's reasonableness standard or
justifiably above the presumptively reasonable level.
Section 2: That this Resolution shall be in full force and effect
from and after its passage and approval as provided by law.
VOTE:
AYES:
6
NAYS: 0 ABSENT: 0
PASSED
this
24th
day of May 1994.
APPROVED
this
24th
day of May 1994.
ATTEST:
Patricia S. Smith
Village Clerk
By: Ann I. Head
Deputy Village Clerk
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Dennis J. Gallitano
Village President