In this article:
Basic Cable Rates.
Means the monthly charges for a subscription to the basic
service tier and the associated equipment.
Basic Service Tier.
Means 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.
Means a per channel rate of charge for cable service and
associated equipment which the FCC has determined is reasonable.
Cable Act of 1992.
Means the Cable Television Consumer Protection and Competition
Act of 1992.
Cable Operator.
Means any person or group of persons:
(1)
who provide cable service over a cable system, and directly
or through one or more affiliates owns a significant interest in such
a cable system; or
(2)
who otherwise controls or is responsible for, through any arrangement,
the management and operation of such a cable system.
Channel.
Means a unit of cable service identified and selected by
a channel number or similar designation.
Cost of Service Showing.
Means a filing in which the cable operator attempts to show
that 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.
Means the Federal Communications Commission.
Initial Basic Cable Rates.
Means the rates that the cable operator is charging for the
basic service tier, including charges for associated equipment, at
the time the city notifies the cable operator of the city's qualification
and intent to regulate basic cable rates.
Must-Carry Signal.
Means the signal of any local broadcast station (except superstations)
which is required to be carried on the basic service tier.
PEG Channel.
Means the channel capacity designated for public, educational
or governmental use, and facilities and equipment for the use of that
channel capacity.
Price Cap.
Means the ceiling set by the FCC on future increases in basic
cable rates regulated by the city, 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.
Superstation.
Means any non-local broadcast signal secondarily transmitted
by satellite.
(Ordinance 93-11-03 adopted 11/2/93)
(a) Notice.
Upon the adoption of this article and the certification of the
city by the FCC, the city shall immediately notify all cable operators
in the city by certified mail, return receipt requested, the city
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 city, a cable operator shall file with the city its current
rates for the basic service tier and associated equipment and supporting
material concerning the reasonableness of its rates.
(c) Expedited
Determination and Public Hearing.
(1) If the city council is able to expeditiously determine that the cable
operator's rates for the basic service tier and associated equipment
are within the FCC's reasonable rate standard, as determined by the
applicable benchmark, the city council shall:
(A) hold a public hearing at which interested persons may express their
views; and
(B) act to approve the rates within 30 days from the date the cable operator
filed its basic cable rates with the city.
(2) If the city council takes no action within 30 days from the date
the cable operator files its basic cable rates with the city, the
proposed rates will continue in effect.
(d) Extended
Review Period.
(1) If the city council is unable to determine whether the rates in issue
are within the FCC's reasonable rate standard based on the material
before it, or if the cable operator submits a cost-of-service showing,
the city council shall, within 30 days from the date the cable operator
filed its basic cable rates with the city and by adoption of a formal
resolution, invoke the following additional periods of time, as applicable,
to make a final determination:
(A) 90 days if the city council needs more time to ensure that a rate
is within the FCC's reasonable rate standard; or
(B) 150 days if the cable operator has submitted a cost-of-service showing
seeking to justify a rate above the applicable benchmark.
(2) If the city council has not made a decision within the 90 or 150
day period, the city council shall issue a brief written order at
the end of the period requesting the cable operator to keep accurate
account of all amounts received by reason of the proposed rate and
on whose behalf the amounts paid.
(e) Public
Hearing.
During the extended review period and before
taking action on the proposed rate, the city council shall hold at
least one public hearing at which interested persons may express their
views and record objections.
(f) Objections.
An interested person who wishes to make an objection to the
proposed initial basic rate may request the city secretary to record
the objection during the public hearing or may submit the objection
in writing anytime before the decision resolution is adopted. In order
for an objection to be made part of the record, the objector must
provide the city secretary with the objector's name and address.
(g) Benchmark
Analysis.
If a cable operator submits its current basic
cable rate schedule as being in compliance with the FCC's reasonable
rate standard, the city council shall review the rates using the benchmark
analysis in accordance with the standard form authorized by the FCC.
Based on the city council's findings, the initial basic cable rates
shall be established as follows:
(1) If the current basic cable rates are below the benchmark, those rates
shall become the initial basic cable rates and the cable operator's
rates will be capped at that level.
(2) If the current basic cable rates exceed the benchmark, the rates
shall be the greater of the cable operator's per channel rate on September
30, 1992, reduced by 10 percent, or the applicable benchmark, adjusted
for inflation and any change in the number of channels occurring between
September 30, 1992 and the initial date of regulation.
(3) If the current basic cable rates exceed the benchmark, but the cable
operator's per channel rate was below the benchmark on September 30,
1992, the initial basic cable rate shall be the benchmark, adjusted
for inflation.
(h) Cost-of-Service
Showings.
If a cable operator does not wish to reduce
the rates to the permitted level, the cable operator shall have the
opportunity to submit a cost-of-service showing in an attempt to justify
an initial basic cable rate above the FCC's reasonable rate standard.
The city council will review a cost-of-service submission pursuant
to FCC standards for cost-of-service review. The city council may
approve initial basic cable rates above the benchmark if the cable
operator makes the necessary showing; however, a cost-of-service determination
resulting in rates below the benchmark or below the cable operator's
September 30, 1992 rates minus 10 percent, will prescribe the cable
operator's new rates.
(i) Decision.
(1) By Formal Resolution.
After completion of its review
of the operators proposed rates, the city 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 city 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 city 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 city council determines that the initial basic cable rate as submitted exceed the reasonable rate standard or that the cable operator's cost-of-service showing justifies lower rates, the city council may order the rates reduced in accordance with subsections
(g) or
(h) above, as applicable. In addition, the city 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 city 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 city council must give public notice of its decision. Public
notice will be given by advertisement once in the official newspaper
of the city.
(j) Appeal.
The city 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.
(Ordinance 93-11-03 adopted 11/2/93)
(a) Notice.
A cable operator in the city who wishes to increase the rates
for the basic service tier or associated equipment shall file a request
with the city 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) Expedited
Determination and Public Hearing.
(1) If the city council is able to expeditiously determine that the cable
operator's rate increase request for basic cable service is within
the FCC's reasonable rate standard as determined by the applicable
price cap, the city council shall:
(A) hold a public hearing at which interested persons may express their
views;
(B) act to approve the rate increase within 30 days from the date the
cable operator filed its request with the city.
(2) If the city council takes no action within 30 days from the date
the cable operator filed its request with the city, the proposed rates
will go into effect.
(c) Extended
Review Period.
(1) If the city council is unable to determine whether the rate is within
the FCC's reasonable rate standard based on the material before it,
or if the cable operator submits a cost-of-service showing, the city
council shall by adoption of a formal resolution, invoke the following
additional periods of time, as applicable, to make a final determination:
(A) 90 days if the city council needs more time to ensure that the requested
increase is within the FCC's reasonable rate standard as determined
by the applicable price cap; and
(B) 150 days if the cable operator has submitted a cost-of-service showing
seeking to justify a rate increase above the applicable price cap.
(2) The proposed rate increase is tolled during the extended review period.
(3) If the city council has not made a decision within the 90 or 150
day period, the city council shall issue a brief written order at
the end of the period requesting the cable operator to keep accurate
account of all amounts received by reason of the proposed rate increase
and on whose behalf the amounts are paid.
(d) Public
Hearing.
During the extended review period and before
taking action on the requested rate increase, the city council shall
hold at least one public hearing at which interested persons may express
their views and record objections.
(e) Objections.
An interested person who wishes to make an objection to the
proposed rate increase may request the city secretary to record the
objection during the public hearing or may submit the objection in
writing anytime before the decision resolution is adopted. In order
for an objection to be made part of the record, the objector must
provide the city secretary with the objector's name and address.
(f) Delayed
Determination.
If the city council is unable to make
a final determination concerning a requested rate increase within
the extended time period, the cable operator may put the increase
into effect, subject to subsequent refund if the city council later
issues a decision disapproving portion of the increase.
(g) Price
Cap Analysis.
If a cable operator presents its request
for a rate increase as being in compliance with the FCC's price cap,
the city council shall review the rate using the price cap analysis
in accordance with the standard form authorized by the FCC. Based
on the city council's findings, the basic cable rates shall be established
as follows:
(1) If the proposed basic cable rate increase is within the price cap
established by the FCC, the proposed rates shall become the new basic
cable rates.
(2) If the proposed basic cable rate increase exceeds the price cap established
by the FCC, the city council shall disapprove the proposed rate increase
and order an increase that is in compliance with the price cap.
(h) Cost-of-Service
Showings.
If a cable operator submits a cost-of-service
showing in an attempt to justify a rate increase above the price cap,
the city council will review the submission pursuant to FCC standards
for cost-of-service review. The city council may approve a rate increase
above the price cap if the cable operator makes the necessary showing,
or however a cost-of-service determination resulting in a rate below
the price cap or below the cable operator's then current rate will
prescribe the cable operator's new rate.
(i) Decision.
The city 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 give the reasons for the decision. Objections may be made at
the public hearing by a person requesting the city secretary to record
the objection or may be submitted in writing at anytime before the
decision resolution is adopted.
(j) Refunds.
(1) The city council may order refunds of subscribers' rate payments
with interest if:
(A) the city council was unable to make a decision within the extended time period as described in subsection
(c) above; and
(B) the cable operator implemented the rate increase at the end of the
extended review period; and
(C) the city 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 city 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 city council's
decision resolution.
(k) Appeal.
The city 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.
(Ordinance 93-11-03 adopted 11/2/93)
(a) City
May Require.
(1) In those cases when the cable operator has submitted initial rate
or proposed an increase that exceeds the reasonable rate standard,
the city council may require the cable operator to produce information
in addition to that submitted, including proprietary information,
if needed to make a rate determination. In these cases, a cable operator
may request the information be kept confidential in accordance with
this section.
(2) In cases where initial or proposed rates comply with the reasonable
rate standard, the city 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 city 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) If feasible, the information to which the request applies shall be
physically separated from any information to which the request does
not apply. If this is not feasible, the portion of the information
to which the request applies shall be identified.
(3) Each request shall contain a statement of the reasons for withholding
inspection and a statement of the facts upon which those reasons are
based.
(4) Casual requests which do not comply with the requirements of this
subsection shall not be considered.
(c) City
Council Action.
Requests which comply with the requirements of subsection
(b) will be acted upon by the city council. The city 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. If the request does not present a case for nondisclosure and the city council denies the request, the city council shall take one of the following actions:
(1) If the information has been submitted voluntarily without any direction
from the city, the cable operator may request that the city return
the information without considering it. Ordinarily, the city will
comply with this request. Only in the unusual instance that the public
interest so requires, the information will be made available for public
inspection.
(2) If the information was required to be submitted by the city council,
the information will be made available for public inspection.
(d) Appeal.
If the city council denies the request for confidentiality,
the cable operator may seek review of that decision from the FCC within
five working days of the city council's decision, and the release
of the information will be stayed pending review.
(Ordinance 93-11-03 adopted 11/2/93)
(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 PL 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 the increase in cost of those factors exceeds
the GNP-PL. These factors include retransmission consent fees, programming
costs, state and local taxes applicable to the provision of cable
television service, and 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-PL.
(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 city
at least 30 days in advance of a rate increase based on automatic
adjustment items. The city shall review the increase to determine
whether the item or items qualify as automatic adjustments. If the
city makes no objection within 30 days of receiving notice of the
increase, the increase may go into effect.
(Ordinance 93-11-03 adopted 11/2/93)
(a) Refunds.
The city 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 city.
(b) Fines.
If the cable operator fails to comply with a rate decision or
refund order, the cable operator shall be subject to a fine of $500
for each day the cable operator fails to comply.
(Ordinance 93-11-03 adopted 11/2/93)