[Adopted 2-7-1994 by Ord. No. 5650]
In this article, the following terms shall have
the meanings indicated:
The monthly charges for a subscription to the basic service
tier and the associated equipment.
A separately available tier to which 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 Cablevision Television Consumer Protection and Competition
Act of 1992.
Any person or group of persons who:
A unit of cable service identified and selected by a channel
number or similar designation.
The governing body of the City of Parsons, Kansas.
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.
The Federal Communications Commission.
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 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.
A.
Notice. Upon the adoption of this article 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 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 Commission 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 Commission shall:
(2)
If the City Commission takes no action within 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 Commission 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 Commission shall, within 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 Commission has not made a decision within
the ninety- or one-hundred-fifty-day period, the City Commission 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 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 Commission
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
Clerk to record the objection during the public hearing or may submit
the objection in writing any time before the decision resolution is
adopted. In order for an objection to be made part of the record,
the objector must provide the City Clerk 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 Commission shall review the
rates using the benchmark analysis in accordance with the standard
form authorized by the FCC. Based on the City Commission's findings,
the initial basic 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 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 initial basic cable rates above the FCC's reasonable
rate standard. The City Commission will review a cost-of-service submission
pursuant to FCC standards for cost-of-service review. The City Commission
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 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 Commission 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
Commission 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 a cost-of-service analysis, if any, does not justify
the proposed rates, the City Commission 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 are refunds. If the City Commission 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 Commission may order the rates reduced in accordance with Subsections G and H above, as applicable. In addition, the City Commission 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 Commission'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 Commission must give public notice of its decision. Public
notice will be given by advertisement once in the official newspaper
of the City.
J.
Appeal. The City Commission's decision concerning
rates for the basic service tier or associated equipment may be appealed
to the FCC in accordance with applicable federal regulations.
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
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 year after the determination of the initial basic cable
rates.
B.
Expedited determination and public hearing.
(1)
If the City Commission 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 Commission shall:
(2)
If the City Commission takes no action within 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 Commission 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 Commission shall, by adoption of a formal resolution,
invoke the following additional periods of time, as applicable, to
make a final determination:
(a)
Ninety days if the City Commission 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 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 Commission has not made a decision within
the ninety- or one-hundred-fifty-day period, the City Commission shall
issue a brief written order at the end or 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
Commission 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 Clerk
to record the objection during the public hearing or may submit the
objection in writing any time before the decision resolution is adopted.
In order for an objection to be made part of the record, the objector
must provide the City Clerk with the objector's name and address.
F.
Delayed determination. If the City Commission 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 Commission 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 Commission shall review the rate using the price
cap analysis in accordance with the standard form authorized by the
FCC. Based on the City Commission'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 Commission 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 Commission will review the submission
pursuant to the FCC standards for cost-of-service review. The City
Commission 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 Commission'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 Clerk to record the objection or may be submitted
in writing at any time before the decision resolution is adopted.
J.
Refunds.
(1)
The City Commission may order refunds of subscribers'
rate payments with interest if:
(a)
The City Commission was unable to make a decision within the extended time period as described in Subsection C above;
(b)
The cable operator implemented the rate increase
at the end of the extended review period; and
(c)
The City Commission 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 Commission 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 Commission's decision resolution.
K.
Appeal. The City Commission's decision concerning
rates for the basic service tier or associated equipment may be appealed
to the FCC in accordance with applicable federal regulations.
A.
City may require.
(1)
In those cases when the cable operator has submitted
initial rates or proposed an increase that exceeds the reasonable
rate standard, the City Commission 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 section.
(2)
In cases where initial or proposed rates comply with
the reasonable rate standard, the City Commission 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
Commission 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.
C.
City Commission action. Requests which comply with the requirements of Subsection B will be acted upon by the City Commission. The City Commission 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 Commission denies the request, the City Commission 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 Commission, the information will be made available for public
inspection.
D.
Appeal. If the City Commission denies the request
for confidentiality, the cable operator may seek review of that decision
from the FCC within five working days of the City Commission's decision,
and the release of the information will be stayed pending review.
A.
Annual inflation adjustment. In accordance with the
FCC regulations, the cable operator may adjust its capped base per-channel
rate for the basic service tier annually by the final GNP-PI 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 GNP-PI. 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 GNP-PI.
(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 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 30 days of receiving notice
of the increase, the increase may go into effect.
A.
Refunds. The City may order the cable operator to
refund to subscribers a portion of previously paid rates under the
following circumstances:
B.
Penalties. If the cable operator fails to comply with
a rate decision or refund order, the cable operator shall be subject
to a fine of $500 for each day the cable operator fails to comply
and shall be subject to those remedies provided in the franchise of
the cable operator as may be applicable.
This article is intended and shall be cumulative
of the rules and regulations adopted by the FCC pursuant to the 1992
Cable Act.
