The authority for the regulation of basic service by the city (local franchise authority) is the Cable Television Consumer Protection and Competition Act of 1992 (“Cable Act of 1992”).
(Ordinance 423 adopted 10/14/93)
The purpose of this article is to implement the rate regulation provisions of the Cable Act of 1992 and to administer Federal Communications Commission (FCC) requirements. Should the FCC modify the provisions of their rules and regulations, the city shall comply with and administer the modified rules and regulations.
(Ordinance 423 adopted 10/14/93)
(a) 
After the city is certified to regulate basic service and after the city council enacts rules conforming to FCC regulations (this article), notice shall be given to the cable operator that they are subject to regulation. The cable operator has thirty (30) days to submit rate schedules and supporting information. Normally, the supporting information is FCC Form 393 (benchmark calculation). The cable operator may instead invoke a cost of service review on the grounds that its costs require higher raters than the benchmarks allow.
(b) 
Based on analysis, the city must, within thirty (30) days:
(1) 
Issue a written order allowing the proposed rates to take effect.
(2) 
Issue a written order disallowing the proposed rate schedule.
(3) 
Issue a written order to allow more time:
(A) 
If the cable operator is using benchmark rates, additional time cannot exceed ninety (90) days.
(B) 
If the cable operator is using cost of service, additional time cannot exceed one hundred-twenty (120) days.
(c) 
If the city fails to act with thirty (30) days of receipt of the cable operator’s rates and supporting information, the rates submitted by the cable operator automatically take effect.
(d) 
If, after issuing a written order to allow more time, the city fails to act within ninety (90) days (benchmark) or one hundred-twenty (120) days (cost of service), the rates submitted by the cable operator automatically take effect.
(e) 
If the rates submitted by the cable operator automatically take effect because the city failed to act within the above time limits, and the city later determines those rates are excessive, refunds may go back up to one year, but not beyond June 21, 1993.
(Ordinance 423 adopted 10/14/93)
(a) 
In addition to disallowing a proposed rate schedule, the city may prescribe a specific rate whenever the city determines that a proposed rate is unreasonable. If the system operator has submitted a rate schedule based on the benchmark formula and calculations, the city may not prescribe a rate any lower than that permitted in the commission’s benchmark rate tables or more than ten percent (10%) less than the cable operator’s September 30, 1992 per channel rate, whichever is higher. The city may order further reduction in rates if the FCC lowers the benchmark rate. If the cable operator submits a cost of service showing, that showing supersedes the benchmark/rollback provisions. Accordingly, the city may prescribe whatever rate it finds justified by the cost of service showing, even if that rate is below the system’s benchmark and more than ten percent (10%) below the system’s September 30, 1992 rate.
(b) 
The city may also order the cable operator to refund to subscribers that portion of previously paid rates determined to be unreasonable. Therefore, the cable operator shall maintain an accounting of customer billings in case of directed customer refunds. The cable operator’s liability is limited to a one year period, and in any event, cannot go back beyond June 21, 1993, the effective date of the FCC rules.
(c) 
The city must provide a reasonable opportunity for interested parties, including the cable operator, to participate before the city orders a prospective rate reduction. Therefore, a public hearing affording proper notice to the cable operator and any other interested parties will be held prior to the city making a determination to order a rate reduction and/or to require refunds.
(d) 
Within sixty (60) days of a refund order, the cable operator shall submit compliance filing stating the amount of the refund and how the refund was calculated, plus the amount of interest added.
(e) 
The city shall not impose fines or monetary forfeitures simply because the cable operator’s rate for basic service or equipment is determined to be unreasonable.
(Ordinance 423 adopted 10/14/93)
The Panhandle Cable Communications Commission, created by the Panhandle Article for Regulation of Cable Communications, in addition to functions provided elsewhere in that article, shall have the following functions:
(1) 
Provide procedures for formal or informal hearings or written comments for consumer complaints; to make such procedures known to all subscribers and to resolve disagreements among the cable operator and public and private users of the system. Any such decisions of the commission shall be appealable to the city council.
(2) 
Advise the council on the regulation of rates. Rate cases cannot be resolved by a settlement; they may only be decided based on FCC regulations.
(3) 
Recommend to the city council the employment of a technical consultant to assist in the analysis of any matter relative to cable communications. If the city intends to rely on a consultant’s analysis as the basis for the city’s decision, then the city council must formally adopt the consultant’s finding as its own.
(Ordinance 423 adopted 10/14/93)
To avail itself of confidentiality of proprietary information, the cable operator must request confidentiality with respect to specific portions of the material under V.A.T.S. Article 6252-17a, Section 3(a)(10). If the city denies a request for confidentiality, the cable operator should seek review of that decision from the FCC within five working days from the date of notification of denial. When the city is notified that the cable operator is seeking review, the release of the information shall be stayed pending review. The cable operator should be prepared to make a showing, by a preponderance of the evidence, that non-disclosure is consistent with the provisions of the Freedom of Information Act (FOIA), 5 U.S.C. Section 552. In particular, as explained in greater detail in the cable programming services section, exemption 4 of the FOIA authorizes the commission to withhold from public disclosure confidential commercial or financial information.
(Ordinance 423 adopted 10/14/93)
All of the regulations provided in this article are hereby declared to be governmental and for the health, safety and welfare of the general public. Any member of the city council or any city official or employee charged with the enforcement of this article, acting for the city in the discharge of his or her duties, shall not thereby render himself or herself personally liable; and he or she is hereby relieved from all personal liability for any damage that might accrue to persons or property as a result of any act required or permitted in the discharge of his or her said duties.
(Ordinance 423 adopted 10/14/93)