(a) Initial Filings by Franchisee.
(1) Once a franchisee has been notified by the City that its basic service and equipment rates are subject to regulation, it may not thereafter increase such rates without the prior approval of the City. This requirement applies in all cases, including cases where the rate increase was announced prior to the date the operator was notified that its rates were subject to regulation, where the increase was not implemented prior to the date of notice, and cases where a franchise institutes a new basic service or equipment rate. An "increase" occurs when there is an increase in rates or a decrease in program or customer services. A franchisee which is notified that its basic service and equipment rates are subject to regulation must file within thirty days of the notification, justifying its then-existing basic service and equipment rates. Thereafter, rate filings proposing and supporting rate increases must be filed for review at least thirty days in advance of the proposed effective date of the increase.
(2) Every rate filing must be submitted to the Mayor. Eight copies of each rate filing, including all supporting materials, must be submitted. Information that the operator claims is proprietary under Section 814.07 must be clearly identified and segregated from the remainder of the filing and clearly marked so that the City may determine where and how the proprietary information was used to determine rates.
(3) Subject to any FCC regulations governing the burden of proof, a rate filing submitted by a franchisee must show that the rates the franchisee proposes to charge for basic service and equipment are reasonable. The rate filing must contain all applicable FCC forms and these forms must be correctly completed. If different rates are being charged, or are proposed for basic service or equipment for different classes of customers, the filing must show that the classifications and the differences in the rates charged are reasonable and consistent with Federal law.
(4) If the franchisee seeks to support a rate based upon cost of service, the City will establish a rate that provides the franchisee an opportunity to recover the reasonable and prudent costs associated with providing basic cable service, including a reasonable profit. An expense or investment is not presumed to be reasonable or prudent merely because the franchisee has incurred or made it.
(b) Initial City Review.
(1) After receiving a rate filing (the "filing"), the Mayor shall promptly publish a notice that a filing has been received and that, except for those parts which may be withheld as proprietary, it is available for public review. The notice will establish appropriate times and procedures for comment on the filing and for any response by the franchisee to those comments.
(2) Within thirty days of the date of the filing, Council shall issue a written order, which may be in any lawful form. The order shall approve the proposed rate in whole or in part, deny the proposed rate in whole or in part or explain that the City requires additional time to review the filing. This order is referred to below as the "initial order." If the City denies the proposed increase, or rules that more time is required to evaluate a filing, it may allow the franchise to change the rates, but collect them subject to refund, or it may order the franchisee not to put the rates into effect.
(c) Supplementary Filings.
(1) If the City decides that additional time is required to review the filing, it shall allow and may require the franchisee to submit a supplementary filing. Any such supplementary filing must be submitted within twenty days from the date of the initial order. It must contain any corrections to the franchisee's filing, including any required supplement to its cost of service filing. It must also contain such information as the City directs the franchisee to provide, subject to applicable FCC rules. Supplementary filings must be filed in accordance with paragraph (a)(2) hereof.
(2) Upon receiving the supplementary filing, the Mayor shall promptly publish a notice that a filing has been received and that it is available for public review (except those parts which may be withheld as proprietary). The notice shall state that interested parties may comment on the filing, and shall set a time for interested parties to submit written comments on the filing to the Chairperson of the Public Utilities Committee of Council. Such Chairperson shall submit the comments received and his or her recommendations for action to Council. The recommendations shall be made available for public inspection. The franchisee may submit a response to public comments or staff recommendations, but must do so by a date established by the Public Utilities Committee. The franchisee's response shall be filed with the Chairperson of the Public Utilities and Committee, and if submitted in a timely fashion, the Chairperson shall forward a copy to Council.
(3) Council shall issue a written order, which may be in any lawful form, approving the proposed rate in whole or in part, denying the proposed rate in whole or in part or providing for additional time to review the filing, but allowing the rates to go into effect, in whole or in part, subject to refund. If Council issues an order allowing the rates to go into effect subject to refund, it shall also direct the franchisee to maintain an accounting in accordance with 47 CFR 76.933.
(4) The order specified in paragraph (c)(3) hereof shall be issued ninety days after the initial order for any rate the franchisee justifies based on the FCC benchmark. The order shall be issued within 150 days of the initial order for any rate the franchisee justifies with a cost of service showing.
(Ord. 137-94. Passed 7-11-94.)