The following regulations are hereby adopted and shall be known as the Cable TV Regulations for the City of Pineland, Texas.
(1981 Code of Ordinances Chapter 4, Section 6)
Unless otherwise apparent, the following definitions shall apply in this article:
An affiliated programmer is a programmer with an ownership interest of five percent (5%) 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 five percent (5%) or more of the outstanding stock, whether voting or nonvoting. Such interests include limited partnership interests of five percent (5%) or greater.
The basic service tier shall, at a minimum, include all signals of domestic television broadcast stations provided to any subscriber (except a signal secondarily transmitted by satellite carrier 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.
Cable operator means 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.
Cable programming service 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 City of Pineland, Texas.
The Federal Communications Commission.
A small system is a cable television system that serves one thousand (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.
(1981 Code of Ordinances Chapter 4, Section 6)
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 (409) 584-2390 or P.O. Box 6, Dogwood Street, Pineland, Texas 75968; and
(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.
(1981 Code of Ordinances Chapter 4, Section 6)
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.
(1981 Code of Ordinances Chapter 4, Section 6)
(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.
(1981 Code of Ordinances Chapter 4, Section 6)
(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 article, 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 4.407, 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 4.407 of this article.
(b)
Permitted Charge on May 15, 1994.
(1)
For purposes of this article, 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;
(2)
For 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 charge determined pursuant to a cost-of-service proceeding; or
(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 seventeen percent (17%), 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 (A) whose March 31, 1994 rate is below its March 31, 1994 benchmark rate, or (B) 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 (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 not 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. Adjustments to permitted charges to reflect changes in the costs of programming purchased from affiliated programmers, as defined in Section 4.402, 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 mark-up 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.
(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.
(1)
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.
(2)
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.
(3)
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 costs, changes in regulated revenues, and expected economies of scale.
(4)
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.
(5)
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:
(1)
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;
(2)
The cable operator has prudent and efficient management; and
(3)
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 two (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.
(1981 Code of Ordinances Chapter 4, Section 6)
(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 thirty (30) day period established for review of basic cable rates and equipment costs in Section 4.408(o), or within the first sixty (60) days of an extended one hundred twenty (120) day period (if the city has requested an additional ninety (90) days) pursuant to Section 4.408(o). The city shall provide notice of its decision to the cable operator and shall provide public notice of its initial decision within seven (7) 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 4.408(o) within which the city must decide a rate case. The time period shall resume running seven (7) days after the FCC decides the interlocutory appeal, or seven (7) 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.
(1981 Code of Ordinances Chapter 4, Section 6)
(a)
Scope.
The equipment regulated under this section 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 4.408. 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:
HSC | = | EB - CE H |
Where, EB = annual equipment basket cost; |
CE = annual purchase cost of all customer equipment; and |
H = person hours involved in installing and repairing equipment per year. |
(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:
Monthly Charge | = | UCE + (HSC x HR) 12 |
Where, | HR = average hours repair per year; and |
UCE = average annual unit cost of remote. |
Separate charges shall be established for each significantly different type of remote control unit.
(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 presented 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 customers premises, if any, associated with the additional connection as a separate monthly unbundled charge for additional 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 section. 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 Fee.
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 Section 4.407(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 4.402 above; is permitted only for equipment charges, not installation charges; and may be established only for similar types of equipment. When submitting its equipment cost, 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 4.409(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.
(1981 Code of Ordinances Chapter 4, Section 6)
(a)
Applicability.
The requirements of this article 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)
(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 4.408(c), and the service cost categories specified in 47 CFR 76.924 (e).
(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 Section 4.409(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 the 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.
(2)
Cable operators shall repeat the procedure specified in subsection (A) of this section at every organizational level at which recoverable costs have been identified until such costs have been allocated to the franchise 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.
(1981 Code of Ordinances Chapter 4, Section 6)
(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.
(1981 Code of Ordinances Chapter 4, Section 6)
(a)
This subsection 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 (c) of this subsection.
(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 4.406 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 (2) times in a twelve (12) month period, except for such changes ordered in response to a change in price or channel line-up. 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 (12) 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 thirty (30) days after notice of retiering or rate increases, a customer may obtain changes in service tiers at no additional charge.
(1981 Code of Ordinances Chapter 4, Section 6)
(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 thirty (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).
(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 P.O. Box 6, Dog Street, Pineland, Texas 75968. The notice shall also include a statement that such protests must be filed with the city no later than thirty (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 forty-five (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.
(1981 Code of Ordinances Chapter 4, Section 6)
A cable operator shall file its schedule of rates for the basic service tier and associated equipment with the city within thirty (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 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 4.416(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.
(1981 Code of Ordinances Chapter 4, Section 6)
(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 thirty (30) days from the date of submission to the city. Provided, however, that the city may toll this thirty (30) day deadline for an additional time by issuing a brief written order as described in subsection (d) within thirty (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 4.415 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 thirty (30) day review period. Written comments shall be addressed to the city secretary and must be received prior to the end of the thirty (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 service tier charge or actual cost of equipment as defined in Sections 4.406 and 4.407 hereof, or if a cable operator has submitted a cost-of-service showing pursuant to Sections 4.409 and 4.416 hereof, seeking to justify a rate above the basic service tier charge as defined in Sections 4.406 and 4.407 hereof, the city may toll the thirty (30) day deadline in (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 ninety (90) days in cases not involving cost-of-service showings; or
(2)
For an additional one hundred fifty (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 (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 ninety (90) or one hundred fifty (150) days permitted in (c) 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 ninety (90) or one hundred fifty (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. 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 ninety (90) or one hundred fifty (150) day period permitted in (c) 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 Sec. 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. 159, upon thirty (30) days notice to subscribers and the city. For the purposes of (a) - (e) of this section, the increased rate attributable to commission regulatory fees or franchise fees shall be treated as an existing rates 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 4.406(d)(3)(i), (iii).
(i)
Cable television system regulatory fees assessed by the commission pursuant to 47 U.S.C. 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 years regulatory fee pass-through in a single notice.
(1981 Code of Ordinances Chapter 4, Section 6)
(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 (a) and (b) of this section will not be considered.
(d)
Upon receipt of a request in compliance with (a) and (b) of this section, 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 non-disclosure.
(1981 Code of Ordinances Chapter 4, Section 6)
(c)
For an existing or a proposed rate for basic service tier that exceeds the permitted tier charge as set forth in Sections 4.406 and 4.407 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 4.419 and 4.420 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 (d) of this section, for the cable operator’s failure to comply with the deadline or otherwise provide complete information in good faith.
(1981 Code of Ordinances Chapter 4, Section 6)
(a)
Option 1:
(1)
A small system, as defined in Section 4.402, may certify that the small system’s initial rates for basic service and associated equipment comply with Section 4.406 hereof. A certification by a small system under this subsection shall be filed with the city within thirty (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 4.414 and 4.415 hereof shall control the request for and the availability of such information to the public.
(3)
As used in this subsection, “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;
(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 section.
(5)
Subsequent rate filings by a small system operator shall comply in all respects with the provisions of this section.
(6)
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.
(b)
Option 2:
(1)
A small system, as defined in Section 4.402, may certify that the small system’s rates for basic service and associated equipment, and subsequent rate increases, comply with Section 4.406 hereof. A certification by a small system under this subsection for its initial rates shall be filed with the city within thirty (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 4.412 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 Section 4.414 and 4.415 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 section.
(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 sever economic hardship. Requests for extension of time are to be addressed to the city. The fling 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.
(1981 Code of Ordinances Chapter 4, Section 6)
(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.
(b)
Public notice shall be given of any written decision required in (1) of this subsection, 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.
(1981 Code of Ordinances Chapter 4, Section 6)
(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 charges) 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 4.414, and has issued an accounting order under Section 4.414(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 4.414(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.
(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.
(1981 Code of Ordinances Chapter 4, Section 6)
If any subsection, sentence, or clause of this section is for any reason held to be illegal, ultra vires, or unconstitutional, such invalidity shall not affect the validity of the remaining portions of this section.
(1981 Code of Ordinances Chapter 4, Section 6)
This section shall be construed under and in accordance with the laws of the State of Texas [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 of Texas. All obligations of the parties hereunder are performable in Sabine County, Texas. In the event that any proceeding is brought to enforce the terms of this section, the same shall be brought in Sabine County, Texas.
(1981 Code of Ordinances Chapter 4, Section 6)
It is hereby officially found and determined that the meeting at which this section is passed is 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.
(1981 Code of Ordinances Chapter 4, Section 6)