(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 308 S. Houston, Cameron, Texas 76520. 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.
(1986 Code, ch. 4, sec. 10:11)
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 result from reductions in the numbers 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 4.04.065(d). A cable operator shall include rate cards and channel line-ups with its filing and include an explanation of any discrepancy in the figures provided in these documents and its rate filing.
(1986 Code, ch. 4, sec. 10:12)
(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. Provided, however, that 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. If proprietary information is provided, the provisions of section 4.04.064 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 comments shall be addressed to the mayor of the city and must be received prior to the end of the 30-day review period.
(c) 
If a cable operator submits a proposed rate for increase or 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 service tier charge or actual cost of equipment as defined in sections 4.04.031 and 4.04.033 hereof, or if a cable operator has submitted a cost-of-service showing pursuant to sections 4.04.034 and 4.04.065 hereof, seeking to justify a rate above the basic service tier charge as defined in sections 4.04.031 and 4.04.033 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.
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 one city council meeting during the period of abatement.
(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 period, 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. Provided, however, that, 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 section 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.
(h) 
Notwithstanding the foregoing, a cable operator may increase its rates for basic service to reflect the imposition of, or increase in, franchise fees or commission cable television system regulatory fees imposed pursuant to 47 U.S.C. section 159, upon 30 days’ notice to subscribers and the city. For the purposes of subsections (a) through (e) of this section, the increased rate attributable to commission regulatory fees or franchise fees shall be treated as an “existing rate,” subject to subsequent review and refund if the city determines that the increase in basic tier rates exceeds the increase in regulatory fees or in franchise fees allocable to the basic tier. A cable operator must adjust its rates to reflect decreases in franchise fees or commission regulatory fees within the periods set forth in section 4.04.031(d)(3)(A) and (C).
(i) 
Cable television system regulatory fees assessed by the commission pursuant to 47 U.S.C. section 159 shall be recovered in monthly installments during the fiscal year following the fiscal year for which the payment was imposed. Payments shall be collected in equal monthly installments, except that, for so many months as may be necessary to avoid fractional payments, an additional $0.01 payment per month may be collected. All such additional payments shall be collected in the last month or months of the fiscal year, so that once collections of such payments begin there shall be no month remaining in the year in which the operator is not entitled to such an additional payment. Operators may not assess interest. Operators may provide notice of the entire fiscal year’s regulatory fee pass-through in a single notice.
(1986 Code, ch. 4, sec. 10:13)
(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.
(c) 
Casual requests which do not comply with the requirements of subsections (a) and (b) of this section will not be considered.
(d) 
Upon receipt of a request in compliance with subsections (a) and (b), the city will not grant routine public access to the materials. A letter to that effect will be placed in a public file in lieu of the materials withheld from public inspection.
(e) 
Provided, 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.
(1986 Code, ch. 4, sec. 10:14)
(a) 
A cable operator has the burden of proving that its existing or proposed rates for basic service and associated equipment comply with 47 U.S.C. section 533 and sections 4.04.031 and 4.04.033 hereof.
(b) 
For an existing or a proposed rate for the basic service tier or associated equipment that is within the permitted tier charge and actual cost of equipment as set forth in sections 4.04.031 and 4.04.033, the cable operator must submit the appropriate FCC form to the city.
(c) 
For an existing or a proposed rate for the basic service tier that exceeds the permitted tier charge as set forth in sections 4.04.031 and 4.04.033 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 4.04.068 and 4.04.069 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.
(1986 Code, ch. 4, sec. 10:15)
(a) 
Option 1.
(1) 
A small system, as defined in section 4.04.002, may certify that the small system’s initial rates for basic service and associated equipment comply with section 4.04.031 hereof. A certification by a small system under this section 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 4.04.063 and 4.04.064 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 article 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 non-small 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 regulations 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 4.04.002, may certify that the small system’s rates for basic service and associated equipment, and subsequent rate increases, comply with section 4.04.031 hereof. A certification by a small system under this section 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 4.04.061 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 4.04.063 and 4.04.064 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 non-small systems in this article.
(4) 
Small systems may obtain an extension of time to establish compliance with rate regulations, provide 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.
(1986 Code, ch. 4, sec. 10:16)
(a) 
The city shall issue a written decision in a rate-making 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.
(b) 
Public notice shall be given of any written decision required in subsection (a) of this section, by making the text of any written decision available to the public, and by publication of the decision one time in the official newspaper of the city.
(1986 Code, ch. 4, sec. 10:17)
(a) 
The city may order a cable operator to implement a prospective reduction in basic service tier or associated equipment rates where necessary to bring rates into compliance with the standards set forth in sections 4.04.031 and 4.04.033 hereof.
(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.
(1986 Code, ch. 4, sec. 10:18)
(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 4.04.063, and has issued an accounting order under section 4.04.063(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 4.04.063(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.
(1986 Code, ch. 4, sec. 10:19)
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 event that any proceeding is brought to enforce the terms of this article, the same shall be brought in the county.
(1986 Code, ch. 4, sec. 10:21)