The following regulations are hereby adopted and shall be known
as the cable TV regulations for the city.
(1991 Code, sec. 4.1201)
Unless otherwise apparent, the following definitions shall apply
in this article:
A programmer with an ownership interest of 5 percent or more
including general partnership interests, direct ownership interests,
and stock interests in a corporation where such stockholders are officers
or directors or who directly or indirectly own 5 percent or more of
the outstanding stock, whether voting or nonvoting. Such interests
include limited partnership interests of 5 percent or greater.
At a minimum, includes all signals of domestic television
broadcast stations provided to any subscriber (except a signal secondarily
transmitted by satellite carried beyond the local service area of
such station, regardless of how such signal is ultimately received
by the cable system); any public, educational, and governmental programming
required by the franchise to be carried on the basic tier; and any
additional video programming signals or service added to the basic
tier by the cable operator.
Any person or group of persons (1) who provides cable service
over a cable system within the city under a franchise issued by the
city, and who directly or through one or more affiliates owns a significant
interest in such cable system, or (2) who otherwise controls or is
responsible for, through any arrangement, the management and operation
of such a cable system.
Includes any video programming provided over a cable system,
regardless of service tier, including installation or rental of equipment
used for the receipt of such video programming, other than:
The Federal Communications Commission.
A cable television system that serves 1,000 or fewer subscribers.
The service area of a small system is determined by the number of
subscribers that are served by a system’s principal headend,
including any other headends or microwave receive sites that are technically
integrated to the system’s principal headend.
(1991 Code, sec. 4.1202)
A cable operator must provide the following information to subscribers
on monthly bills:
(1)
A
statement substantially the same as the following: “The basic
service tier rates and related equipment and installation charges
are regulated by the city. If you have any questions or comments regarding
these rates, you may call or write the city at City of Granbury, P.O.
Box 969, Granbury, Texas 76048, (817) 573-1114”;
(2)
The
name, mailing address and phone number of the Cable Services Bureau
of the FCC; and
(3)
The
FCC community unit identifier for the cable system.
(1991 Code, sec. 4.1203)
A cable operator shall not charge a subscriber for any service
or equipment that the subscriber has not affirmatively requested by
name. This provision, however, shall not preclude the addition or
deletion of a specific program from a service offering, the addition
or deletion of specific channels from an existing tier of service,
or the restructuring or division of existing tiers of service that
do not result in a fundamental change in the nature of an existing
service or tier of service, provided that such change is otherwise
consistent with applicable regulations. A subscriber’s failure
to refuse a cable operator’s proposal to provide such service
or equipment is not an affirmative request for service or equipment.
A subscriber’s affirmative request for service or equipment
may be made orally or in writing.
(1991 Code, sec. 4.1204)
(a)
Cable
operators may identify as a separate line item of each regular subscriber
bill the following:
(1)
The amount of the total bill assessed as a franchise fee.
(2)
The amount of the total bill assessed to satisfy any requirements
imposed on the cable operator by the franchise agreement to support
public, educational, or governmental channels or the use of such channels.
(3)
The amount of any other fee, tax, assessment, or charge of any kind
imposed by any governmental authority on the transaction between the
operator and the subscriber. In order for a governmental fee or assessment
to be separately identified under this article, it must be directly
imposed by a governmental body on a transaction between a subscriber
and an operator.
(b)
The
charge identified on the subscriber bill as the total charge for cable
service should include all fees and costs itemized pursuant to this
article.
(1991 Code, sec. 4.1205)
(a)
Basic service tier rates.
Basic service tier rates are subject to regulation by the city in order to assure that they are in compliance with the requirements of 47 U.S.C. 543. Rates that are demonstrated, in accordance with this section, not to exceed the “initial permitted per-channel charge” or the “subsequent permitted per-channel charge” as described below, or the equipment charges as specified in section 4.11.008, will be accepted as in compliance. The maximum monthly charge per subscriber for the basic service tier offered by a cable operator shall consist of a permitted per-channel charge multiplied by the number of channels on the tier, plus a charge for franchise fees. The maximum monthly charges for the basic service tier shall not include any charges for equipment or installations. Charges for equipment and installations are to be calculated separately pursuant to section 4.11.008 of this article.
(b)
Permitted charge on May 15, 1994.
(1)
For purposes of this section, the initial date of regulation for
the basic service tier shall be the date on which the city gives written
notice to the cable operator that (A) the city has been certified
by the commission to regulate rates for the basic service tier and
(B) this article has been adopted by the city.
(2)
For the purposes of this article, rates “in effect on the initial
date of regulation” or “in effect on September 30, 1992,”
shall be the rates charged to subscribers for service received on
that respective date.
(3)
The permitted charge for the basic service tier shall be, at the
election of the cable operator, either:
(A)
A rate determined pursuant to a cost-of-service proceeding;
(B)
The full reduction rate;
(C)
The transition rate, if the system is eligible for transition relief;
or
(D)
A rate based on a streamlined rate reduction, if the system is eligible
to implement such a rate reduction. Except where noted, the term “rate”
in this section means a rate measured on an average regulated revenue-per-subscriber
basis.
(4)
Full reduction rate.
The “full reduction rate”
on May 15, 1994, is the system’s September 30, 1992, rate, measured
on an average regulated revenue-per-subscriber basis, reduced by 17
percent, and then adjusted for the following:
(B)
Inflation measured by the GNP-PI between October 1, 1992, and September
30, 1993;
(C)
Changes in the number of program channels subject to regulation that
are offered on the system’s basic service tier between September
30, 1992, and the earlier of the initial date of regulation for basic
service or February 28, 1994; and
(D)
Changes in external costs that have occurred between the earlier
of the initial date of regulation for basic service tier or February
28, 1994, and March 31, 1994.
(5)
March 31, 1994, benchmark rate.
The “March 31,
1994, benchmark rate” is the rate so designated using the calculations
in form 1200.
(6)
Transition rates.
(A)
A “system owned by a small operator” is a system owned
by an operator that has a total subscriber base of 15,000 or fewer
subscribers as of March 31, 1994. Such systems shall be eligible to
establish a transition rate for the basic tier in accordance with
47 CFR 76.922.
(B)
A “low-price system” is a system (i) whose March 31,
1994, rate is below its March 31, 1994, benchmark rate, or (ii) whose
March 31, 1994, rate is above its March 31, 1994, benchmark rate,
but whose March 31, 1994, full reduction rate is below its March 31,
1994, benchmark rate, as defined above. Such systems shall be eligible
to establish a transition rate for the basic tier in accordance with
47 CFR 76.922.
(C)
Notwithstanding subsections (b)(6)(A) and (B) above, the transition rate for the basic service tier shall be adjusted to reflect any determination by the city that the rate in effect on March 31, 1994, was higher (or lower) than that permitted under applicable regulations. Refund liability for such rates shall be as set forth in 47 CFR 76.922.
(7)
Streamlined rate reductions.
Small systems that are
not owned by or affiliated with any other system (“independent
systems”) and small systems owned by small multiple system operators
(“MSO’s”), that have already restructured their
rates to comply with the city’s ordinance, may establish rates
for the basic service tier and related equipment by making a streamlined
rate reduction, in accordance with 47 CFR 76.922. “Small MSO’s”
are those multiple system operators that:
(8)
Establishment of initial regulated rates.
Cable systems,
other than those eligible for streamlined rate reductions, shall file
FCC forms 1200, 1205, and 1215 for the basic service tier by June
15, 1994, or thirty days after the initial date of regulation. A system
that becomes subject to regulation for the first time on or after
July 1, 1994, shall also file form 1210 at the time it files FCC forms
1200, 1205 and 1215.
(c)
Subsequent permitted charge.
The permitted charge for
the basic service tier after May 15, 1994, shall be, at the election
of the cable operator, either:
(d)
Price cap requirements.
After May 15, 1994, adjustments
for changes in external costs shall be calculated by subtracting external
costs from the system’s permitted charge and making changes
to that “external cost component” as necessary. The remaining
charge, referred to as the “residual component,” will
be adjusted annually for inflation. Cable systems shall use FCC form
1210 (or form 1211 where applicable) to justify changes in permitted
rates made pursuant to the price cap requirements.
(1)
Calendar year quarters.
All systems must use a calendar
year quarter when adjusting rates under the price cap requirements.
The starting date of adjustments on account of external costs for
the basic service tier shall be the earlier of the initial date of
regulation or February 28, 1994.
(2)
Inflation adjustments.
The residual component of a system’s
permitted charges for the basic service tier may be adjusted annually
on account of inflation. The annual inflation adjustment shall be
based on inflation occurring from June 30 of the previous year to
June 30 of the year in which the inflation adjustment is made, except
that the first annual inflation adjustment shall cover inflation from
September 30, 1993 until June 30 of the year in which the inflation
adjustment is made. The adjustment may be made after September 30,
but no later than August 31 of the next calendar year. Adjustments
shall be based on changes in the Gross National Product Price Index
(“GNP-PI”) published by the Bureau of Economic Analysis
of the United States Department of Commerce. Cable systems that establish
a transition rate pursuant to 47 CFR 76.922, shall not be permitted
to adjust rates on account of inflation until the transition rate
adjusted for external costs and changes in numbers of regulated channels
is less than, or equal to, the system’s full reduction rate
adjusted for inflation, external costs and changes in numbers of regulated
channels.
(3)
External costs.
(A)
Permitted charges for the basic service tier may be adjusted up to
quarterly to reflect changes in external costs experienced by the
cable system. In all events, a system must adjust its rates annually
to reflect any decreases in external costs that have not previously
been accounted for in the system’s rates. A system must also
adjust its rates annually to reflect any changes in external costs,
inflation and the number of channels on the basic tier that occurred
during the year if the system wishes to have such changes reflected
in its regulated rates. A system that does not adjust its permitted
rates annually to account for these changes will not be permitted
to increase its rates subsequently to reflect the changes.
(B)
A system must adjust its rates in the next calendar year quarter
for any decrease in programming costs that results from the deletion
of a channel or channels from the basic service tier.
(C)
Any rate increase made to reflect an increase in external costs must
also fully account for all other changes in external costs, inflation
and the number of channels on the basic service tier that occurred
during the same period. Rate adjustments made to reflect changes in
external costs shall be based on any changes in those external costs
that occurred from the end of the last quarter for which an adjustment
was previously made through the end of the quarter that has most recently
closed preceding the filing of the FCC form 1210 (or FCC form 1211,
where applicable). A system may adjust its rates after the close of
a quarter to reflect changes in external costs that occurred during
that quarter as soon as it has sufficient information to calculate
the rate change.
(D)
External costs shall consist of costs in the following categories:
(i)
State and local taxes applicable to provision of cable television
service;
(ii)
Franchise fees, which shall be calculated separately as part
of the maximum monthly charge per subscriber for the basic service
tier;
(iii)
Costs of complying with franchise requirements, including costs
of providing public, educational, and governmental access channels
as required by the city;
(iv)
Copyright fees incurred for the carriage of broadcast signals
offered on the basic service tier;
(v)
Retransmission consent fees incurred after October 6, 1994,
for the program channels or broadcast signals offered on the basic
service tier; and
(vi)
Other programming costs for the program channels or broadcast
signals offered on the basic service tier.
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Adjustments to permitted charges to reflect changes in the costs of programming purchased from affiliated programmers, as defined in section 4.11.002, shall be permitted as long as the price charged to the affiliated system reflects either prevailing company prices offered in the marketplace to third parties (where the affiliated program supplier has established such prices) or the fair market value of the programming. Adjustments to permitted charges on account of increases in costs of programming shall be further adjusted to reflect any revenues received by the operator from the programmer. In calculating programming expense, operators may add a markup of 7.5% for new programming added after May 15, 1994, and shall reduce rates by decreases in programming expense plus an additional 7.5% for decreases occurring after May 15, 1994.
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(E)
Changes in the number of channels on regulated tiers.
A system may adjust the residual component of its permitted rate
for the basic service tier to reflect change in the number of channels
offered on the tier on a quarterly basis, in accordance with 47 CFR
76.922.
(F)
Cost-of-service charge.
A monthly cost-of-service charge
for the basic service tier is an amount that is calculated in accordance
with 47 CFR 76.922(g).
(G)
Network upgrade rate increase.
(i)
Cable operators that undertake significant network upgrades
requiring added capital investment may justify an increase in rates
for the basic service tier by demonstrating that the capital investment
will benefit subscribers.
(ii)
A rate increase on account of upgrades shall not be assessed
on customers until the upgrade is complete and providing benefits
to customers of the basic service tier.
(iii)
Cable operators seeking an upgrade rate increase have the burden
of demonstrating the amount of the net increase in costs, taking into
account current depreciation expense, likely changes in maintenance
and other cost changes in regulated revenues, and expected economies
of scale.
(iv)
Cable operators seeking a rate increase for network upgrades
shall allocate net cost increases in conformance with the cost allocation
rules as set forth in 47 CFR 76.924.
(v)
Cable operators that undertake significant upgrades shall be
permitted to increase rates by adding the benchmark/price cap rate
to the rate increment necessary to recover the net increase in cost
attributable to the upgrade.
(H)
Hardship rate relief.
A cable operator may adjust charges
by an amount specified by the city for the basic service tier if it
is determined that:
(i)
Total revenues from cable operations, measured at the highest
level of the cable operator’s cable service organization, will
not be sufficient to enable the operator to attract capital or maintain
credit necessary to enable the operator to continue to provide cable
service;
(ii)
The cable operator has prudent and efficient management; and
(iii)
Adjusted charges on account of hardship will not result in total
charges for regulated cable services that are excessive in comparison
to charges of similarly situated systems.
(I)
Cost-of-service showing.
A cable operator that elects
to establish a charge, or to justify an existing or changed charge
for the basic service tier, based on a cost-of-service showing must
submit data to the city in accordance with forms established by the
FCC. The cable operator must also submit any additional information
requested by the city to resolve questions in cost-of-service proceedings.
(J)
Subsequent cost-of-service charges.
No cable operator
may use a cost-of-service showing to justify an increase in any charge
established on a cost-of-service basis for a period of 2 years after
that rate takes effect, except that the city may waive this prohibition
upon a showing of unusual circumstances that would create undue hardship
for a cable operator.
(1991 Code, sec. 4.1206)
(a)
Cumulative
offerings of unregulated per-channel or per-program (“a la carte”)
video programming is not regulated if:
(1)
The price for the combined package does not exceed the sum of the
individual charges for each component of service; and
(2)
The cable operator continues to provide the component parts of the
package to subscribers separately in addition to the collective offering.
The second condition will be met only when the per-channel offering
provides consumers with a realistic service choice. Collective offerings
available on April 1, 1993, shall not be regulated if subsequently
offered on the same terms and conditions as were in effect on that
date.
(b)
In reviewing a basic service rate filing, the city shall make an initial decision addressing whether a collective offering of “a la carte” channels will be treated as an unregulated service or a regulated tier. The city shall make this initial decision within the 30-day period established for review of basic cable rates and equipment costs in section 4.11.014, or within the first 60 days of an extended 120-day period (if the city has requested an additional 90 days) pursuant to section 4.11.014. The city shall provide notice of its decision to the cable operator and shall provide public notice of its initial decision within seven days. Operators or consumers may make an interlocutory appeal of the initial decision to the FCC. Operators shall provide notice to the city of their decision whether or not to appeal to the FCC within this period. Consumers shall provide notice to the city of their decision to appeal to the FCC within this period.
(c)
A limited initial decision under subsection (b) shall toll the time periods under section 4.11.014 within which the city must decide a rate case. The time period shall resume running seven days after the FCC decides the interlocutory appeal, or seven days following the expiration of the period in which an interlocutory appeal pursuant to subsection (b) may be filed.
(d)
The
city may alternatively decide whether a collective offering of “a
la carte” channels will be treated as an unregulated service
or a cable programming services tier as part of its final decision
setting rates for the basic service tier. That decision may then be
appealed to the FCC as provided in the FCC’s rules.
(1991 Code, sec. 4.1207)
(a)
Scope.
The equipment regulated under this article consists
of all equipment in a subscriber’s location that is used to
receive the basic service tier, regardless of whether such equipment
is additionally used to receive other tiers of regulated programming
service and/or unregulated service. Such equipment shall include,
but is not limited to:
(b)
Unbundling.
A cable operator shall establish rates for
remote control units, converter boxes, other customer equipment, installation,
and additional connections separate from rates for basic service tier.
In addition, the rates for such equipment and installations shall
be unbundled one from the other.
(c)
Equipment basket.
A cable operator shall establish an equipment basket, which will include all costs associated with providing customer equipment and installation under this article. equipment basket costs shall be limited to the direct and indirect material and labor costs of providing, leasing, installing, repairing, and servicing customer equipment, as determined in accordance with the cost accounting and cost allocation requirements of section 4.11.009. The equipment basket shall not include general administrative overhead including general marketing expenses. The equipment basket may include a reasonable profit.
(d)
Hourly service charge.
A cable operator shall establish
charges for equipment and installation using the hourly service charge
(“HSC”) methodology. The HSC shall equal the operator’s
annual equipment basket costs, excluding the purchase cost of customer
equipment, divided by the total person hours involved in installing,
repairing, and servicing customer equipment during the same period.
The purchase cost of customer equipment shall include the cable operator’s
invoice price plus all other costs incurred with respect to the equipment
until the time it is provided to the customer. The HSC is calculated
according to the following formula:
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H = EB - CE
H
|
|
Where,
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EB
|
=
|
Annual equipment basket cost;
|
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CE
|
=
|
Annual purchase cost of all customer equipment; and
|
|
H
|
=
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Person hours involved in installing and repairing equipment
per year.
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(f)
Remote charges.
Monthly charges for rental of a remote
control unit shall consist of the average annual unit purchase cost
of the type of remote leased, including acquisition price and incidental
costs such as sales tax, financing and storage up to the time it is
provided to the customer, added to the product of the HSC times the
average number of hours annually repairing or servicing a remote,
divided by 12 to determine the monthly lease rate for a remote according
to the following formula:
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Monthly Charge = UCE + (HSC x HR)
12
|
|
Where,
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|
HR
|
=
|
Average hours repair per year; and
|
|
UCE
|
=
|
Average annual unit cost of remote.
|
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Separate charges shall be established for each significantly
different type of remote control unit.
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(g)
Other equipment charges.
The monthly charges for rental
of converter boxes and other customer equipment shall be calculated
in the same manner as for remote control units. Separate charges shall
be established for each significantly different type of converter
box and each significantly different type of other customer equipment.
(h)
Additional connection charges.
The costs of installation and monthly use of additional connections shall be recovered as charges associated with the installation and equipment cost categories, and at rate levels determined by the actual cost methodology present in the foregoing subsections (e), (f) and (g) of this section. An operator may recover additional programming costs and the costs of signal boosters on the customer’s premises, if any, associated with the additional connection as a separate monthly unbundled charge for addition connections.
(i)
Charges for equipment sold.
A cable operator may sell
customer premises equipment to a subscriber. The equipment price shall
recover the operator’s cost of the equipment, including costs
associated with storing and preparing the equipment for sale up to
the time it is sold to the customer, plus a reasonable profit. An
operator may sell service contracts for the maintenance and repair
of equipment sold to subscribers. The charge for a service contract
shall be the HSC times the estimated average number of hours for maintenance
and repair over the life of the equipment.
(j)
Promotions.
A cable operator may offer equipment or installation at charges below those determined under subsections (e) through (g) of this section, as long as those offerings are reasonable in scope in relation to the operator’s overall offerings in the equipment basket and not unreasonably discriminatory. Operators may not recover the cost of a promotional offering by increasing charges for other equipment basket elements, or by increasing programming service rates above the maximum monthly charge per subscriber prescribed by this article. As part of a general cost-of-service showing, an operator may include the cost of promotions in its general system overhead costs.
(k)
Franchise fees.
Equipment charges may include a properly
allocated portion of franchise fees paid to the city.
(l)
Company-wide averaging of equipment costs.
For the purpose of developing unbundled equipment charges as required by subsection (b), a cable operator may average the equipment costs of its small systems at any level, or several levels, within its operations. This company-wide averaging applies only to an operator’s small systems as defined in section 4.11.002 above; is permitted only for equipment charges, not installation charges; and may be established only for similar types of equipment. When submitting its equipment costs based on average charges to the city, an operator that elects company-wide averaging of equipment costs must provide a general description of the averaging methodology employed and a justification that its averaging methodology produces reasonable equipment rates. The city may require the operator to set equipment rates based on the operator’s level of averaging in effect on April 3, 1993, as required by section 4.11.009(c).
(m)
Cable
operators shall maintain adequate documentation to demonstrate that
charges for the sale and lease of equipment and for installations
have been developed in accordance with the rules set forth in this
article.
(1991 Code, sec. 4.1208)
(a)
Applicability.
The requirements of this section are
applicable for purposes of rate adjustments on account of external
costs and for cost-of-service showings.
(b)
Accounting requirements.
Cable operators electing cost-of-service
regulation or seeking rate adjustments due to changes in external
costs shall maintain their accounts:
(c)
Accounts level.
Except to the extent indicated below,
cable operators electing cost-of-service regulation or seeking adjustments
due to changes in external costs shall identify investments, expenses,
and revenues at the franchise, system, regional, and/or company level(s)
in a manner consistent with the accounting practice of the operator
on April 3, 1993. However, in all events, cable operators shall identify
at the franchise level their costs of franchise requirements, franchise
fees, local taxes, and local programming.
(d)
Summary accounts.
(1)
Cable operators filing for cost-of-service regulation shall report
all investments, expenses, and revenue and income adjustments accounted
for at the franchise, system, regional, and/or company level(s) to
the summary accounts listed in 47 CFR 76.924(d).
(2)
Cable operators shall not be required to report their investments,
expenses and revenues to the summary accounts listed in 47 CFR 76.924(d)
for the purposes of adjusting rates based on changes in their external
costs.
(e)
Allocation to service cost categories.
(1)
For cable operators electing cost-of-service regulation, investments, expenses, and revenues contained in the summary accounts identified in 47 CFR 76.924(d) shall be allocated among the equipment basket, as specified in section 4.11.008(c), and the service cost categories specified in 47 CFR 76.924(e).
(2)
Cable operators seeking an adjustment due to changes in external
costs identified in FCC form 1210 shall allocate such costs among
the equipment basket and the service cost categories specified in
47 CFR 76.924(e)(2).
(f)
Cost allocation requirements.
(1)
Allocations of investments, expenses and revenues among the service cost categories and the equipment basket shall be made at the organizational level in which such costs and revenues have been identified for accounting purposes pursuant to subsection (c).
(2)
Costs of programming and retransmission consent fees shall be directly
assigned or allocated only to the service cost category in which the
programming or broadcast signal at issue is offered.
(3)
Costs of franchise fees shall be allocated among the equipment basket
and the service cost categories in a manner that is most consistent
with the methodology of assessment of franchise fees by the city.
(4)
Costs of public, educational, and governmental access channels carried
on the basic tier shall be directly assigned to the basic tier where
possible.
(5)
All other costs that are incurred exclusively to support the equipment
basket or a specific service cost category shall be directly assigned
to that service cost category or the equipment basket where possible.
(6)
Costs that are not directly assigned shall be allocated to the service
cost categories in accordance with the following allocation procedures:
(A)
Wherever possible, common costs for which no allocator has been specified
are to be allocated among the service cost categories and the equipment
basket based on direct analysis of the origin of the costs.
(B)
Where allocation based on direct analysis is not possible, common
costs for which no allocator has been specified shall, if possible,
be allocated among the service cost categories and the equipment basket
based on indirect, cost-causative linkage to other costs directly
assigned or allocated to the service cost categories and the equipment
basket.
(C)
Where neither direct nor indirect measures of cost allocation can
be found, common costs shall be allocated to each service cost category
based on the ratio of all other costs directly assigned and attributed
to a service cost category over total costs directly or indirectly
assigned and directly or indirectly attributable.
(g)
Cost identification at franchise level.
After costs
have been directly assigned to and allocated among the service cost
categories and the equipment basket, cable operators that have aggregated
costs at a higher level than the franchise level must identify all
applicable costs at the franchise level in the following manner:
(1)
Recoverable costs that have been identified at the highest organizational
level at which costs have been identified shall be allocated to the
next (lower) organizational level at which recoverable costs have
been identified on the basis of the ratio of the total number of subscribers
served at the lower level to the total number of subscribers served
at the highest level.
(h)
Part-time channels.
In situations where a single channel
is divided on a part-time basis and is used to deliver service associated
with different tiers or with pay-per-channel or pay-per-view service,
a reasonable and documented allocation of that channel between services
shall be required along with the associated revenues and costs.
(i)
Transactions with affiliates.
Adjustments on account
of transactions with affiliates shall be determined as set forth in
47 CFR 76.924(i).
(j)
Unrelated expenses and revenues.
Cable operators shall exclude from cost categories used to develop rates for the provision of basic service tier and equipment any direct or indirect expenses and revenues not related to the provision of such services. Common costs of providing basic service tier and equipment, and unrelated activities shall be allocated between them in accordance with subsection (f) of this section.
(1991 Code, sec. 4.1209)
(a)
The
costs of satisfying franchise requirements to support public, educational,
and governmental channels shall consist of the sum of:
(b)
The
costs of satisfying any other requirement under the franchise shall
consist of the direct and indirect costs, including a reasonable allocation
of general and administrative overhead.
(1991 Code, sec. 4.1210)
(a)
This
section shall govern charges for any changes in service tiers or equipment
provided to the subscriber that are initiated at the request of a
subscriber after initial service installation.
(b)
The charge for customer changes in service tiers effected solely by coded entry on a computer terminal or by other similarly simple methods shall be a nominal amount, not exceeding actual costs, as defined in subsection (c) of this section.
(c)
The charge for customer changes in service tiers or equipment that involve more than coded entry on a computer or other similarly simple method shall be based on actual cost. The actual cost charge shall be either the HSC, as defined in section 4.11.006 of this article, multiplied by the number of person hours needed to implement the change, or the HSC multiplied by the average number of person hours involved in implementing customer changes.
(d)
A
cable operator may establish a higher charge for changes effected
solely by coded entry on a computer terminal or by other similarly
simple methods, subject to approval by the city, for a subscriber
changing service tiers more than two times in a twelve-month period,
except for such changes ordered in response to a change in price or
channel lineup. If a cable system adopts such an increased charge,
the cable system must notify all subscribers in writing that they
may be subject to such a charge for changing service tiers more than
the specified number of times in any twelve-month period.
(e)
Downgrade
charges that are the same as, or lower than, upgrade charges are evidence
of the reasonableness of such downgrade charges.
(f)
For
30 days after notice of retiering or rate increases, a customer may
obtain changes in service tiers at no additional charge.
(1991 Code, sec. 4.1211)
(a)
A
cable operator shall provide written notice to a subscriber and the
city of any increase in the price to be charged for the basic service
tier or associated equipment at least 30 days before any proposed
increase is effective. The notice shall state the precise amount of
any rate change and briefly explain in readily understandable fashion
the cause of the rate change (e.g., inflation, changes in external
costs or the addition/deletion of channels). When the change involves
the addition or deletion of channels, each channel added or deleted
must be separately identified.
(b)
The
notice to subscribers shall include a provision stating that protests
to such prices for the basic service tier and related equipment may
be filed with the city at City of Granbury, P.O. Box 969, 116 W. Bridge
Street, Granbury, Texas 76048. The notice shall also include a statement
that such protests must be filed with the city no later than 30 days
after the notice is received by the subscriber. Notices to subscribers
shall also inform them of their right to file complaints about changes
in cable programming service tier rates and services with the FCC
within 45 days of the rate or service change being reflected in their
bill, and shall provide the address and phone number of the Cable
Services Bureau of the FCC.
(1991 Code, sec. 4.1212)
A cable operator shall file its schedule of rates for the basic service tier and associated equipment with the city within 30 days of receiving written notification from the city that the city has been certified by the commission to regulate rates for the basic service tier. Basic service and equipment rate schedule filings for existing rates or proposed rate increases (including increases in the baseline channel change that results from reductions in the number of channels in a tier) must use the appropriate official FCC form, a copy thereof, or a copy generated by FCC software. Failure to file on the official FCC form, a copy thereof, or a copy generated by FCC software, may result in the imposition of sanctions specified in section 4.11.016(d). A cable operator shall include rate cards and channel lineups with its filing and include an explanation of any discrepancy in the figures provided in these documents and its rate filing.
(1991 Code, sec. 4.1213)
(a)
After a cable operator has submitted to the city for review its existing rates for the basic service tier and associated equipment costs, or a proposed increase in these rates (including increases in the baseline channel charge that results from reductions in the number of channels in a tier), the existing rates will remain in effect or the proposed rates will become effective after 30 days from the date of submission to the city. However, the city may toll this 30-day deadline for an additional time by issuing a brief written order as described in subsection (d) within 30 days of the rate submission explaining that it needs additional time to review the rates. The city may, at any time, require the cable operator to produce additional information, including proprietary information, that the city deems necessary in order to make a rate determination. The city shall state a justification for each item of information requested and, where related to a specific FCC form, indicate the question or section of the form to which the request specifically relates. If proprietary information is provided, the provisions of section 4.11.015 hereof will apply to such information.
(b)
Upon
receipt by the city, the cable operator’s submittal shall be
available for public inspection and copying. Comments on the submittal
by interested persons may be submitted in writing or orally at a city
council meeting held at any time during the initial 30-day review
period. Written comment shall be addressed to Ms. Dee Arcos, city
secretary, and must be received prior to the end of the 30-day review
period.
(c)
If
a cable operator submits a proposed rate increase for review that
appears to exceed the presumptively reasonable level and does not
include a cost-of-service showing to justify the rate, the city will
permit the cable operator to cure this deficiency and submit a cost-of-service
showing.
(d)
If the city is unable to determine, based upon the material submitted by the cable operator, that the existing or proposed rates are within the permitted basic cable service tier charge or actual cost of equipment as defined in section 4.11.006 or 4.11.008 hereof, or if a cable operator has submitted a cost-of-service showing pursuant to sections 4.11.009 and 4.11.016 hereof, seeking to justify a rate above the basic service tier charge as defined in sections 4.11.006 and 4.11.008 hereof, the city may toll the 30-day deadline in subsection (a) of this section to request and/or consider additional information or to consider the comments from interested parties as follows:
(1)
For an additional 90 days in cases not involving cost-of-service
showings; or
(2)
For an additional 150 days in cases involving cost-of-service showings.
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The order tolling the effective date of the proposed rate shall explain why the city could not make the necessary determination, and it shall also provide the cable operator an opportunity to cure any deficiencies in its original filing. During the additional time periods provided in this subsection, comments from interested persons may be submitted in writing, as provided in subsection (b) of this section, or orally during at least city council meeting during the period of abatement.
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(e)
If the city has availed itself of the additional 90 or 150 days permitted in subsection (d) of this section, and has taken no action within these additional time periods, then the proposed rates will go into effect at the end of the 90- or 150-day periods, or existing rates will remain in effect at such times, subject to refunds if the city subsequently issues a written decision disapproving any portion of such rates. However, in order to order refunds, the city must have issued a brief written order to the cable operator by the end of the 90- or 150-day period permitted in subsection (d) of this section, directing the operator to keep an accurate account of all amounts received by reason of the rate in issue and on whose behalf such amounts were paid.
(f)
The
city reserves the right to request that the FCC examine a cable operator’s
cost-of-service showing, in accordance with 47 CFR 76.933(d).
(g)
Cable
operators shall comply with the city’s requests for information,
orders, and decisions. No cable operator shall, in any information
submitted to the city in making a rate determination pursuant to a
form 393 or form 1200 filing, or a cost-of-service showing, make any
misrepresentation or willful material omission bearing on any matter
within the city’s jurisdiction.
(1991 Code, sec. 4.1214)
(a)
If
the city has required the cable operator to produce proprietary information
under the provisions of this article, the cable operator may submit
therewith a request that such information not be made routinely available
for public inspection. A copy of the request shall be attached to
and shall cover all of the materials to which it applies and all copies
of those materials. If feasible, the materials to which the request
applies shall be physically separated from any materials to which
the request does not apply. If this is not feasible, the portion of
the materials to which the request applies shall be identified.
(b)
Each
such request shall contain a statement of the reasons for withholding
the materials from inspection and of the facts upon which those reasons
are based. If the request is that the materials be withheld from inspection
for a limited period of time, that period shall be specified.
(e)
However,
if a written request for the materials is received by the city pursuant
to the Open Records Act, chapter 552, Texas Government Code, the city
will notify the person providing the materials of the request for
the materials. If the person providing the materials requests the
city to do so, the city will request an opinion from the attorney
general, pursuant to the Open Records Act, regarding the public availability
of the materials. If the person providing the materials does not request
the city to request an opinion from the attorney general, the city
may, at its option, either request such an opinion or provide the
materials to the public.
(f)
If
the Attorney General issues an opinion or letter ruling requiring
the city to make the materials available to the public, the materials
will be made available for public inspection.
(g)
If
no request for confidentiality is submitted, the city assumes no obligation
to consider the need for nondisclosure.
(1991 Code, sec. 4.1215)
(c)
For an existing or a proposed rate for basic service tier that exceeds the permitted tier charge as set forth in sections 4.11.006 and 4.11.008 hereof, the cable operator must submit to the city a cost-of-service showing to justify the proposed rates. The cost-of-service showing must be in conformance with accounting and cost allocation requirements as adopted and amended by the commission for cable system operators.
(d)
The city may find a cable operator that does not attempt to demonstrate the reasonableness of its rates in default and, using the best information available, enter an order finding the cable operator’s rates unreasonable and mandating appropriate relief, as specified in sections 4.11.019 and 4.11.020 hereof.
(e)
The city may order a cable operator that has filed a facially incomplete form to file supplemental information, and the city’s deadline to rule on the reasonableness of the proposed rates will be tolled pending receipt of such information. The city may set reasonable deadlines for the filing of such information, and may find the cable operator in default and mandate appropriate relief, pursuant to subsection (d) of this section, for the cable operator’s failure to comply with the deadline or otherwise provide complete information in good faith.
(1991 Code, sec. 4.1216)
(a)
Option 1.
(1)
A small system, as defined in section 4.11.002, may certify that the small system’s initial rates for basic service and associated equipment comply with section 4.11.006 hereof. A certification by a small system under this article shall be filed with the city within 30 days of receiving written notification from the city that the city has been certified by the commission to regulate rates for the basic service tier. The certification shall be in writing, shall be signed by the general manager of the system, and shall be verified.
(2)
Such certification shall be subject to verification by the city on its own motion or upon complaint by a subscriber. The city may request additional information from the operator in order to verify the certification. In the event proprietary information is requested by the city, the provisions of sections 4.11.014 and 4.11.015 hereof shall control the request for and the availability of such information to the public.
(3)
As used in this section, “initial rates” shall mean those
rates charged by the small system operator on the date on which the
city gives written notice to the cable operator that (A) the city
has been certified by the commission to regulate rates for the basic
service tier and (B) this section has been adopted by the city.
(4)
If the city determines that the small system’s certification
is in error, it shall so notify the small system operator and shall
require the small system to comply with all filing requirements for
nonsmall systems in this article.
(5)
Subsequent rate filings by a small system operator shall comply in
all respects with the provisions of this article.
(6)
Small systems may obtain an extension of time to establish compliance
with rate regulations, provided they can demonstrate that timely compliance
would result in severe economic hardship. Requests for extension of
time are to be addressed to the city. The filing of a request for
an extension of time to comply with the rate regulations will not
toll the effective date of rate regulation for small systems or alter
refund liability for rates that exceed permitted levels after May
15, 1994.
(b)
Option 2.
(1)
A small system, as defined in section 4.11.002, may certify that the small system’s rates for basic service and associated equipment, and subsequent rate increases, comply with section 4.11.006 hereof. A certification by a small system under this article for its initial rates shall be filed with the city within 30 days of receiving written notification from the city that the city has been certified by the commission to regulate rates for the basic service tier. Certifications for subsequent rate increases shall be filed with the city at the same time that notice is given to the small system’s subscribers of the proposed rate increase, in conformance with section 4.11.012 hereof. All certifications shall be in writing, shall be signed by the general manager of the system, and shall be verified.
(2)
Such certification shall be subject to verification by the city on its own motion or upon complaint by a subscriber. The city may request additional information from the operator in order to verify the certification. In the event proprietary information is requested by the city, the provisions of sections 4.11.014 and 4.11.015 hereof shall control the request for and availability of such information to the public.
(3)
If the city determines that the small system’s certification
is in error, it shall so notify the small system operator and shall
require the small system to comply with all filing requirements for
nonsmall systems in this article.
(4)
Small systems may obtain an extension of time to establish compliance
with rate regulations, provided they can demonstrate that timely compliance
would result in severe economic hardship. Requests for extension of
time are to be addressed to the city. The filing of a request for
an extension of time to comply with the rate regulations will not
toll the effective date of rate regulation for small systems or alter
refund liability for rates that exceed permitted levels after May
15, 1994.
(1991 Code, sec. 4.1217)
(a)
The
city shall issue a written decision in a ratemaking proceeding whenever
it disapproves an initial rate for the basic service tier or associated
equipment in whole or in part, disapproves a request for a rate increase
in whole or in part, or approves a request for an increase in whole
or in part over the objections of interested parties. The city is
not required to issue a written decision that approves an unopposed
existing or proposed rate for the basic service tier or associated
equipment.
(1991 Code, sec. 4.1218)
(b)
The
city may prescribe a reasonable rate for the basic service tier or
associated equipment after it determines that a proposed rate is unreasonable.
(1991 Code, sec. 4.1219)
(a)
The city may order a cable operator to refund to subscribers that portion of previously paid rates determined by the city to be in excess of the permitted tier charge or above the actual cost of equipment, unless the operator has submitted a cost-of-service showing which justifies the rate charged as reasonable. An operator’s liability for refunds shall be based on the difference between the old bundled rates and the sum of the new unbundled program service charge(s) and the new unbundled equipment charge(s). Where an operator was charging separately for program services and equipment but the rates were not in compliance with the city’s rules, the operator’s refund liability shall be based on the difference between the sum of the old charges and the sum of the new, unbundled program service and equipment charges. Before ordering a cable operator to refund previously paid rates to subscribers, the city shall give the operator notice and opportunity to comment. The operator’s opportunity to comment upon the proposed refunds may be at any meeting of the city council during the city’s period of review of the operator’s rates. If the city has extended its review period under section 4.11.014, and has issued an accounting order under section 4.11.014(e), then the operator, prior to refunds being ordered, may request an opportunity to appear before the city council to comment upon the proposed refunds.
(b)
An
operator’s liability for refunds is limited to a one-year period,
except that an operator that fails to comply with a valid rate order
issued by the city shall be liable for refunds commencing from the
effective date of such order until such time as it complies with such
order.
(c)
The
refund period shall run as follows:
(1)
From the date the operator implements a prospective rate reduction
back in time to September 1, 1993, or one year, whichever is shorter.
(2)
From the date the city issues an accounting order pursuant to section 4.11.014(d) hereof, to the date a prospective rate reduction is issued, then back in time from the date of the accounting order to the effective date of the rules; however, the total refund period shall not exceed one year from the date of the accounting order.
(3)
Refund liability shall be calculated on the reasonableness of the
rates as determined by the rules in effect during the period under
review by the city.
(d)
The
cable operator, in its discretion, may implement a refund in the following
manner:
(1)
By returning overcharges to those subscribers who actually paid the
overcharges, either through direct payment or as a specifically identified
credit to those subscribers’ bills; or
(2)
By means of a prospective percentage reduction in the rates for the
basic service tier or associated equipment to cover the cumulative
overcharge. This shall be reflected as a specifically identified,
one-time credit on prospective bills to the class of subscribers that
currently subscribe to the cable system.
(e)
Refunds
shall include interest computed at applicable rates published by the
Internal Revenue Service for tax refunds and additional tax payments.
(f)
At
the time the city orders a cable operator to pay refunds to subscribers,
the city shall return to the cable operator an amount equal to that
portion of the franchise fee that was paid on the total amount of
the refund to subscribers. The city shall promptly return the franchise
fee overcharge either in an immediate lump sum payment, or the cable
operator may deduct it from the cable system’s future franchise
fee payments.
(1991 Code, sec. 4.1220)
This article shall be construed under and in accordance with
the laws of the state and the city charter and city codes to the extent
that such charter and codes are not in conflict with or in violation
of the constitution and laws of the United States or the state. All
obligations of the parties hereunder are performable in the county.
In the even that any proceeding is brought to enforce the terms of
this article, the same shall be brought in the county.
(1991 Code, sec. 4.1222)
It is hereby officially found and determined that the meeting
at which this article was passed was open to the public as required
by law and that public notice of the time, place, and purpose of said
meeting was given as required, in accordance with chapter 551, Texas
Government Code.
(1991 Code, sec. 4.1223)
