This chapter shall be effective only if the city has been certified by the Federal Communications Commission ("FCC") to enforce federal rate regulations.
(Ord. 277 § 3, 2002)
Prior to increasing rates for basic service and/or associated equipment at any time, the cable operator shall file its proposed rates with the city clerk together with the form for determination of rate increases as may be issued by the FCC or the city, and any other information required by the city manager. If the proposed rates are greater than the benchmark rates permitted by FCC regulations, the cable operator shall submit a cost-of-service showing pursuant to FCC regulations. Within seven days of filing its proposed rates, but no later than 30 days prior to the effective date of the proposed rates, the cable operator shall notify its subscribers of its proposed rates and that written comments may be submitted to the city clerk by mailing such notice to all subscribers, either separately or in conjunction with bills or other notices sent to subscribers.
(Ord. 277 § 3, 2002)
All forms and materials submitted by the cable operator pursuant to this chapter shall be submitted together with an unqualified opinion of a certified public accountant ("auditor's opinion"). The auditor's opinion shall contain, at a minimum, the following items:
A.
A certification that the data submitted by the cable operator truly and accurately reflect the actual costs of regulated equipment and services and other costs reported therein as determined by the auditor in accordance with generally accepted auditing standards, including without limitation, AU Section 801 et seq. of the AICPA Professional Standards and any successor sections, and that the financial information contained therein is reported in compliance with FCC rules and regulations implementing the Cable Act of 1992, including, without limitation, 47 CFR Sections 76.924 and 76.925 and any successor sections;
B.
A detailed explanation of the source data examined, tested and utilized by the auditor in formulating the auditor's opinion;
C.
A list of documents furnished by the cable operator to the auditor and utilized by the auditor in formulating the auditor's opinion;
D.
A detailed explanation of the auditing methodology utilized by the auditor in formulating the auditor's opinion; and
E.
A detailed explanation of the assumptions utilized by the auditor in formulating the auditor's opinion.
Upon the request of the city manager, the auditor shall provide to the city manager a copy of the audit working papers utilized in formulating the auditor's opinion within five days of such request. These working papers shall be kept confidential to the extent required by federal law and FCC regulations. |
This section shall not in any way affect the city's authority to review records of the cable operator pursuant to HMC § 5.22.271, or any other law, ordinance or agreement. |
(Ord. 277 § 3, 2002)
A.
Quarterly Rate Adjustments. If the cable operator submits its proposed rates pursuant to the quarterly rate adjustment system authorized by the FCC, the provisions of this subsection shall apply. The proposed rates shall take effect 30 days after submission of all required information to the city unless the city disapproves the rate or the city manager issues an order extending the 30-day period as follows. The city manager may issue a written order extending this 30-day period for the purpose of requesting or considering additional information or comments for: (1) an additional 90 days in cases not involving cost-of-service showings if the city council and city manager are unable to make a determination within the 30-day period; or (2) an additional 150 days in cases involving cost-of-service showings. The proposed rates shall take effect following such extension unless the cable operator has not submitted all required information or unless the city disapproves the proposed rate. Prior to expiration of such extended period, the city manager may issue a brief written order directing the cable operator to keep an accurate account of all amounts received by reason of the proposed rate and on whose behalf such amounts were paid. At any time following expiration of such extended period, the city may disapprove the proposed rate and, if the foregoing accounting order was issued, may order the cable operator to refund all amounts previously collected as a result of the disapproved rate. To the extent provided by federal law, a cable operator utilizing the quarterly rate adjustment system may increase its rates for basic service to reflect increases in franchise fees or FCC regulatory fees without complying with this subsection.
B.
Annual Rate Adjustments. If the cable operator submits its proposed rates pursuant to the annual rate adjustment system authorized by the FCC, the provision of this subsection shall apply. The cable operator shall submit its proposed rates no later than 90 days prior to the proposed effective date of the rates. Within 45 days of submission, the city may notify the cable operator that its submission is factually incomplete, in which case the review period shall be tolled until such time as the city receives all required information. If prior to a determination by the city there is a material change in the cable operator's circumstances which affects the rate filing, the cable operator may file an amendment. The proposed rates shall take effect the later of 90 days after submission of all required information to the city or 30 days after receipt of any amendment unless the city disapproves the rate. If the city takes no action during this period, during the subsequent 12-month period the city may nevertheless issue a written decision disapproving the proposed rates and order a refund and a prospective rate reduction. During this 12-month period, if the cable operator makes a written inquiry concerning whether the city intends to issue a rate order, the city shall notify the cable operator of its intent within 15 days of receipt of the inquiry.
C.
Required Channel Additions to Basic Service Tier. If the cable operator is required by federal or local law to add channels to the basic services tier and submits a proposed rate adjustment as a result, the proposed rates shall take effect 60 days after receipt of a complete application unless the city rejects the proposed rate as unreasonable.
D.
New Equipment. If the cable operator submits a proposed rate for a new type of equipment, the proposed rate shall take effect 60 days after receipt of a complete application unless the city rejects the proposed rate as unreasonable. If the cable operator's most recent rate filing was based on the system that enables them to file up to once per quarter, the city may order refunds and prospective rate reductions following the expiration of the 60-day period; provided, that it issues an accounting order prior to the expiration of that period. If the cable operator's most recent rate filing was based on the annual rate system, the city may order refunds and prospective rate reductions following the expiration of the 60-day period in accordance with FCC regulations.
(Ord. 277 § 3, 2002)
In cases not involving cost-of-service showings, the city manager shall consider all written material submitted by the cable operator and the public and determine if the proposed rates are within the limits established by the FCC regulations. The cable operator shall have the burden of proof to establish that its proposed rates are within the limits established by the FCC regulations. The city manager may approve or disapprove the proposed rates, allow the proposed rates to take effect by operation of law by taking no action, or refer the matter to the city council for hearing. The city manager shall issue a written decision if he or she approves over opposition or disapproves the proposed rates in whole or in part. The city manager is not required to issue a written decision if he or she approves a proposed rate which has not been opposed by any person or if he or she takes no action, in which event the proposed rate shall take effect upon expiration of the time period prescribed in HMC § 5.22.284. If the city manager determines that the rates are unreasonable and do not comply with FCC regulations, the city manager may prescribe reasonable rates as authorized by FCC regulations. If the city manager determines that the cable operator's existing rates exceed the amounts permitted by FCC regulations, the city manager may order the cable operator to refund the amounts overcharged to its subscribers to the extent permitted by the FCC regulations within 90 days of the order. The city manager shall notify the city council of any determination made concerning proposed rates. The determination of the city manager shall be final. Notwithstanding the foregoing, within 10 days after the determination by the city manager or at the next regularly scheduled city council meeting, whichever is later, any member of the city council may call up the proposed rates for consideration by the city council in accordance with HMC § 5.22.286. The proposed rates shall not take effect until the expiration of this period or, if called up by a councilmember, pending determination by the city council.
(Ord. 277 § 3, 2002)
In cases involving a cost-of-service showing and in cases which are called up by a councilmember in accordance with HMC § 5.22.285, a hearing on the proposed rates shall be scheduled before the city council upon submission of all required materials. The cable operator shall have the burden of proof to establish that its proposed rates are within the limits established by the FCC regulations. The city council shall issue a written decision if it approves over opposition or disapproves the proposed rates in whole or in part. The city council is not required to issue a written decision if it approves a proposed rate which has not been opposed by any person or if it takes no action, in which event the proposed rate shall take effect upon expiration of the time period prescribed in HMC § 5.22.284. If the city council determines that the rates are unreasonable and do not comply with FCC regulations, the city council may prescribe reasonable rates as authorized by FCC regulations. If the city council determines that the cable operator's existing rates exceed the amounts permitted by FCC regulations, the city council may order the cable operator to refund the amounts overcharged to its subscribers to the extent permitted by the FCC regulations within 90 days of such order.
(Ord. 277 § 3, 2002)
The cable operator or any interested person may appeal any decision of the city council or the city manager relating to compliance with federal rate standards to the FCC in accordance with FCC regulations.
(Ord. 277 § 3, 2002)
Upon receipt of more than one subscriber complaint made within 90 days after the effective date of an increased rate, the city manager is authorized to file a complaint with the FCC challenging the reasonableness of the cable operator's rate for cable programming service, or the reasonableness of the cable operator's charges for installation or rental of equipment used for the receipt of cable programming service. However, the city manager shall not file a complaint with respect to cable programming services after March 31, 1999, unless the city is authorized to do so by federal law or regulation.
(Ord. 277 § 3, 2002)