(A) The initial service rates, installation charges, connection charges, disconnection charges, reconnection charges, equipment rental charges and any other type of system charges (hereafter collectively referred to as "rates") for each system, shall be set forth in the franchise. To the extent local regulation of rates is permitted under federal and state law, existing rates may be changed from time to time only by resolution of the City Council pursuant to this section. Failure to enforce this section by the city shall not amount to a waiver of its provisions.
(B) Applications. All rate increase requests submitted or proposed by a grantee shall contain the following:
(1) The amount of adjustment in rates requested.
(2) Written financial material showing that the adjustment in rates is justified by increased expenses incurred by the grantee in the operation of its system.
(3) Copies of financial reports and income statements prepared in accordance with generally accepted accounting standards and practices and certified by an independent certified public accountant (CPA) for at least the preceding three years or from the date of acceptance of the franchise whichever is the lesser (hereafter referred to as "term"). If the grantee is a subsidiary of another firm, similar financial data shall be furnished for the parent corporation.
(4) An itemization of capital assets, both tangible and intangible, the accounting basis for depreciation and the depreciation schedule. If intangible assets such as goodwill are being amortized, the amortization periods shall be stated.
(5) A detailed breakdown of operating, marketing and general administrative costs by category for the term.
(6) The number of subscribers for service for the term.
(7) The number of cable plant-miles and dwelling units passed by the cable plant for the term and preceding years.
(8) A statement as to any allocation of funds to parent company overhead or operating costs, and the basis for the allocation.
(C) Council action.
(1) Upon receipt of a rate increase request, accompanied by all of the supporting information above, it shall be the obligation of the Council to act upon the request expeditiously. Prior to taking action on the request at least one noticed public hearing shall be held upon the request. The Council shall approve, partially approve, or disapprove, the request based upon all of the following criteria.
(a) Performance of the grantee.
(b) Whether the grantee has adequately served the subscribers and the city.
(c) Comparability of rates in surrounding communities.
(d) Whether the profits from services offered are reasonable.
(e) Operating and construction expenses of the grantee.
(f) Completeness and accuracy of the information submitted by grantee in support of its request for increases.
(2) The decision shall be in resolution form. Any approved increase in rates shall become effective not earlier than 30 days after the date of approval by the Council.
(D) Time of applications. Applications for rate increases shall not be submitted more often than once in any 12-month period.
(E) Public hearing. Before approving any rate increase, the City Council shall conduct at least one public hearing thereon. The hearing shall be noticed as directed by the City Council, which may include, but not be limited to, the use of public service announcements by grantee on its system.
('83 Code, § 5.24.160) (Ord. 912, passed - -85)