[Ord. 2171, passed 3-7-1994]
The following definitions shall apply:
BASIC CABLE RATES
The monthly charges for a subscription to the basic service tier and the associated equipment.
BASIC SERVICE TIER
A separately available service tier to which subscription is required for access to any other tier of service, including as a minimum, but not limited to, all must-carry signals, all PEG channels, and all domestic television signals other than superstations.
BENCHMARK
A per channel rate of charge for cable service and associated equipment which the FCC has determined is reasonable.
CABLE ACT OF 1992
The Cable Television Consumer Protection and Competition Act of 1992.
CABLE OPERATOR
Any person or group of persons:
(a) 
Who provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such a cable system; or
(b) 
Who otherwise controls or is responsible for, through any arrangement, the management and operation of such a cable system.
COST OF SERVICE SHOWING
A filing in which the cable operator attempts to show the benchmark rate or the price cap is not sufficient to allow the cable operator to fully recover the costs of providing the basic service tier and to continue to attract capital.
FCC
The Federal Communications Commission.
INITIAL BASIC CABLE RATES
The rates that the cable operator is charging for the basic service tier, including charges for associated equipment, at the time the Municipality notifies the cable operator of the Municipality's qualification and intent to regulate basic cable rates.
PRICE CAP
The ceiling set by the FCC on future increases in basic cable rates regulated by the Municipality, based on a formula using the GNP fixed weight price index, reflecting general increases in the cost of doing business and changes in overall inflation.
REASONABLE RATE STANDARD
A per channel rate that is at, or below, the benchmark or price cap level.
[Ord. 2171, passed 3-7-1994]
The Municipal Council of the Municipality of Penn Hills will regulate cable television rates and service pursuant to the Cable Act of 1992. The Municipal Manager is hereby authorized and directed to file the necessary certification and application materials with the FCC and to take all other actions required to certify the Municipality with the full authority under the Cable Television Consumer Protection and Competition Act of 1992 and to inform the Municipal Council, as necessary, on the information regarding regulation. The Municipality hereby declares that it will abide by the requirements of any and all FCC rules; that the Municipality has the legal authority and the personnel to adopt and administer these regulations; that the Municipality will provide a reasonable opportunity for the consideration of views of interested citizens; and that the cable system currently operating within the Municipality has no effective competition. The Municipality's power to regulate cable television rates and service is not limited to the provisions of this chapter and extends to the full authority granted to it, now or in the future, under the Cable Act or any FCC rulings or regulations.
[Ord. 2171, passed 3-7-1994]
(a) 
Notice. Upon the adoption of this chapter and the certification of the Municipality by the FCC, the Municipality shall immediately notify all cable operators in the Municipality, by certified mail, return receipt requested, that the Municipality intends to regulate subscriber rates charged for the basic service tier and associated equipment as authorized by the Cable Act of 1992.
(b) 
Cable Operator Response. Within 30 days of receiving notice from the Municipality, a cable operator shall file with the Municipality its current rates for the basic service tier and associated equipment and any supporting material concerning the reasonableness of its rates for review by the Municipality in accordance with FCC regulations.
(c) 
Public Hearing. Before taking action on the current or proposed rate, the Municipal Council shall hold at least one public hearing at a Council meeting at which interested persons may express their views and record objections.
(d) 
Decisions.
(1) 
By Formal Resolution. After completion of its review of the cable operator's proposed rates, the Municipal Council shall adopt its decision by formal resolution. The decision shall include one of the following:
A. 
If the proposal is within the FCC's reasonable rate standard or is justified by a cost-of-service analysis, the Municipal Council shall approve the initial basic cable rates proposed by the cable operator; or
B. 
If the proposal is not within the FCC's reasonable rate standard and the cost-of-service analysis, if any, does not justify the proposed rates, the Municipal Council shall establish initial basic cable rates that are within the FCC's reasonable rate standard or that are justified by a cost-of-service analysis.
(2) 
Rollbacks and Refunds. If the Municipal Council determines that the initial basic cable rates as submitted exceed the reasonable rate standard or that the cable operator's cost-of-service showing justifies lower rates, the Municipal Council may order the rates reduced in accordance with FCC regulations. In addition, the Municipal Council may order the cable operator to pay to subscribers refunds of the excessive portion of the rates with interest (computed at applicable rates published by the Internal Revenue Service for tax refunds and additional tax payments), retroactive to September 1, 1993. The method for paying any refund and the interest rate will be in accordance with FCC regulations as directed in the Municipal Council's decision resolution.
(3) 
Statement of Reasons for Decision and Public Notice. If rates proposed by a cable operator are disapproved in whole or in part, or if there were objections made by other parties to the proposed rates, the resolution must state the reasons for the decision and the Municipal Council must give public notice of its decision. Public notice will be given by one advertisement.
(e) 
Appeal. The Municipal Council's decision concerning rates for the basic service tier or associated equipment may be appealed to the FCC in accordance with applicable Federal regulations.
[Ord. 2171, passed 3-7-1994]
(a) 
Notice. A cable operator in the Municipality who wishes to increase the rates for the basic service tier or associated equipment shall file a request with the Municipal Manager and notify all subscribers at least 30 days before the cable operator desires the increase to take effect. This notice may not be given more often than annually and not until at least one year after the determination of the initial basic cable rates.
(b) 
Public Hearing. During the extended review period and before taking action on the requested rate increase, the Municipal Council shall hold at least one public hearing at a Council meeting in which interested persons may express their views and record objections.
(c) 
Decision. The Municipal Council's decision concerning the requested rate increase shall be adopted by formal resolution. If a rate increase proposed by a cable operator is disapproved in whole or in part, or if objections were made by other parties to the proposed rate increase, the resolution must state the reasons for the decision. Objections may be made at the public hearing or may be submitted in writing at any time before the decision resolution is adopted.
(d) 
Refunds.
(1) 
The Municipal Council may order refunds of subscribers' rate payments with interest if:
A. 
The Municipal Council was unable to make a decision within the extended time period for review provided by law;
B. 
The cable operator implemented the rate increase at the end of the extended review period; and
C. 
The Municipal Council determines that the rate increase as submitted exceeds the applicable price cap or that the cable operator failed to justify the rate increase by a cost-of-service showing, and the Municipal Council disapproves any portion of the rate increase.
(2) 
The method for paying any refund and the interest rate will be in accordance with FCC regulations as directed in the Municipal Council's decision resolution.
(e) 
Appeal. The Municipal Council's decision concerning rates for the basic service tier or associated equipment may be appealed to the FCC in accordance with applicable Federal regulations.
[Ord. 2171, passed 3-7-1994]
(a) 
Information Required by Municipality. The Municipality may require.
(1) 
In those cases when the cable operator has submitted initial rates or proposed an increase that exceeds the reasonable rate standard, the Municipal Council may require the cable operator to produce information in addition to that submitted, including proprietary information which shall be kept confidential in accordance with this section.
(2) 
In cases where initial or proposed rates comply with the reasonable rate standard, the Municipal Council may request additional information only in order to document that the cable operator's rates are in accord with the standard.
(b) 
Request for Confidentiality.
(1) 
A cable operator submitting information to the Municipal Council may request in writing that the information not be made routinely available for public inspection. A copy of the request shall be attached to and cover all of the information and all copies of the information to which it applies.
(2) 
Each request shall contain a statement of the reasons for withholding inspection and a statement of the facts upon which those reasons are based.
(c) 
Council Action. Requests which comply with the requirements of Subsection (b) hereof will be acted upon by the Municipal Council. The Municipal Council will grant the request if the cable operator presents, by a preponderance of the evidence, a case for nondisclosure consistent with applicable Federal regulations. If the request is granted, the ruling will be placed in a public file in lieu of the information withheld from public inspection.
(d) 
Appeal. If the Municipal Council denies the request for confidentiality, the cable operator may seek review of that decision from the FCC within five working days of the Municipal Council's decision, and the release of the information will be stayed pending review.
[Ord. 2171, passed 3-7-1994]
(a) 
Annual Inflation Adjustment. In accordance with FCC regulations, the cable operator may adjust its capped base per channel rate for the basic service tier annually by the final GNP-PI index.
(b) 
Other External Costs.
(1) 
The FCC regulations also allow the cable operator to increase its rate for the basic service tier automatically to reflect certain external cost factors to the extent that the increase in cost of those factors exceeds the GNP-PI. These factors include the retransmission consent fees, programming costs, State and local taxes applicable to the provision of cable television service, and the costs of franchise requirements. The total cost of an increase in a franchise fee may be automatically added to the base per channel rate, without regard to its relation to the GNP-PI.
(2) 
For all categories of external costs other than retransmission consent and franchise fees, the starting date for measuring changes in external costs for which the basic service per channel rate may be adjusted will be the date on which the basic service tier becomes subject to regulation or February 28, 1994, whichever occurs first. The permitted per channel charge may not be adjusted for costs of retransmission consent fees or changes in those fees incurred before October 6, 1994.
(c) 
Notification and Review. The cable operator shall notify the Municipality at least 30 days in advance of a rate increase based on automatic adjustment items. The Municipality shall review the increase to determine whether the item or items qualify as automatic adjustments. If the Municipality makes no objection within 30 days of receiving notice of the increase, the increase may go into effect.
[Ord. 2171, passed 3-7-1994]
(a) 
Refunds. The Municipality may order the cable operator to refund to subscribers a portion of previously paid rates under the following circumstances:
(1) 
A portion of the previously paid rates have been determined to be in excess of the permitted tier charge or above the actual cost of equipment; or
(2) 
The cable operator has failed to comply with a valid rate order issued by the Municipality.
(b) 
Compliance. If the cable operator fails to comply with a rate decision or refund order, the cable operator shall be subject to action in compliance with the FCC regulations.