In this division:
The monthly charges for a subscription to the basic service
tier and the associated equipment.
A separately available service tier to which a 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.
A per-channel rate of charge for cable service and associated
equipment which the FCC has determined is reasonable.
The Cable Television Consumer Protection and Competition
Act of 1992.
Any person or group of persons:
A unit of cable service identified and selected by a channel
number or similar designation.
A filing in which the cable operator attempts to show that
the benchmark rate or the price cap is not sufficient to allow the
cable operator to fully recover the costs of providing the basic service
tier and to continue to attract capital.
A cost center to which the cable operator assigns the direct
costs of service installation, leasing, maintaining and servicing
customer equipment. It includes an allocation of all system joint
and common costs that installation, leasing, and repairing equipment
share with other system activities and a reasonable profit, but excludes
general system overhead.
The Federal Communications Commission.
The hourly service charge that allows the cable operator
to recover all equipment basket costs, except for the cable operator’s
costs of purchasing and financing the lease of customer equipment.
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.
The signal of any local broadcast station (except superstations)
which is required to be carried on the basic service tier.
The channel capacity designated for public, educational,
or governmental use, and facilities and equipment for the use of that
channel capacity.
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.
A per-channel rate that is at or below the benchmark or price
cap level.
Any non-local broadcast signal secondarily transmitted by
satellite.
(1987 Code, ch. 4, sec. 13A; 2004
Code, sec. 4.1036)
(a)
Notice.
Upon the adoption of this division 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,
that 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 thirty (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 any 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:
(2)
If the city council takes no action within thirty (30) days from
the date the cable operator filed 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 thirty (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:
(2)
If the city council has not made a decision within the ninety (90)
or one hundred fifty (150) day period, the city council shall issue
a brief written order at the end of the period requesting the cable
operator to keep an accurate account of all amounts received by reason
of the proposed rate and on whose behalf the amounts are 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
manager or his/her designee 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 manager or
his/her designee 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 ten percent (10%), 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 a initial basic cable rates 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 ten percent
(10%) will prescribe the cable operator’s new rates.
(i)
Decision.
(1)
By formal resolution.
After completion of its review
of the cable operator’s 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 rates 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 subsection (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)
Appeals.
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.
(1987 Code, ch. 4, sec. 13B; Ordinance 707 adopted 6/10/03; 2004 Code, sec. 4.1037)
(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 thirty
(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 (1) 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:
(2)
If the city council takes no action within thirty (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 increase
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)
Ninety (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)
One hundred fifty (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 ninety (90)
or one hundred fifty (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 manager
or his/her designee 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 manager or his/her
designee 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 any 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 the 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; 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 state the reasons for
the decision. Objections may be made at the public hearing by a person
requesting the city manager or his/her designee to record the objection
or may be submitted in writing at any time 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)
Appeals.
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.
(1987 Code, ch. 4, sec. 13C; Ordinance 707 adopted 6/10/03; 2004 Code, sec. 4.1038)
(a)
City may require additional information.
(1)
In those cases when the cable operator has submitted initial rates
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 division.
(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 on request for confidentiality.
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 will the information 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)
Appeals.
If the city council denies the request for
confidentiality, the cable operator may seek review of that decision
from the FCC within five (5) working days of the city council’s
decision, and the release of the information will be stayed pending
review.
(1987 Code, ch. 4, sec. 13D; 2004
Code, sec. 4.1039)
(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 GNPPI index.
(b)
Other external costs.
(1)
The FCC regulations also allow the cable operator to increase its
rate for the basic service tier automatically to reflect certain external
cost factors to the extent that the increase in cost of those factors
exceeds the GNPPI. 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 GNPPI.
(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 thirty (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 thirty (30) days of receiving
notice of the increase, the increase may go into effect.
(1987 Code, ch. 4, sec. 13E; 2004
Code, sec. 4.1040)
(a)
Refunds.
The city may order the cable operator to refund
to subscribers a portion of previously paid rates under the following
circumstances:
(1987 Code, ch. 4, sec. 13F; 2004
Code, sec. 4.1041; Ordinance adopting 2021 Code)
