(a) Initial Rates to Subscribers. The grantee may establish initial rates for its services in accordance with the rates contained in the grantee's application for the franchise.
(b) Rate Change Procedure.
(1) The rates as specified in subsection (a) hereof shall be in effect for a minimum period of two years from the date of providing initial service.
(2) The grantee may establish rates for service each two years thereafter by filing with the Clerk/Treasurer a schedule of rates proposed and by notifying its subscribers in writing at least sixty days prior to implementation of the rate change.
(3) The Village Council shall have the right to determine whether or not it shall assume rate regulation authority when it convenes at each of its biannual review sessions throughout the franchise period, authorized pursuant to Section 810.24, or, in the alternative, when the grantee achieves sixty percent penetration of its potential subscribers. If Council declines rate regulation authority, then rates may be modified by the grantee as specified in paragraph (b)(2) hereof. If the Council assumes rate modification authority, then, for the next two years, rates shall be subject to modification only by the Council and only in accordance with the following procedures:
A. The Council shall have the authority to review the following rates, fees and charges:
1. Rates for the provision of basic service to subscribers, whether residential or commercial;
2. Rates for the connection, installation and reinstatement (including converters) of basic service, whether residential or commercial; and
3. Rates for the installation, connection and reinstatement of basic service where unusual circumstances exist, such as remote or inaccessible subscriber locations or subscriber requests for underground service drops.
B. The grantee may petition the Council for a change in rates by filing, in triplicate, a proposed rate schedule with the Clerk/Treasurer, which petition shall include the justification(s) for the proposed schedule. Said petition shall be filed at least ninety days prior to the requested implementation date of the rate change. One copy of the petition shall remain on file with the Clerk/Treasurer and be open for public inspection.
C. Within ten days of notification by the Council of the place and time established for a hearing on said petition, the grantee shall notify its subscribers of the hearing by announcement on at least two channels of its system between the hours of 7:00 p.m. and 9:00 p.m. for five consecutive days. Additionally, hearings shall be announced in a newspaper of general circulation at least five days before the date of the hearing. Following all proper notice, but in no event later than ninety days from the date of said petition, the Council shall hold an appropriate public hearing to consider the proposed new rates, at which hearing all parties desiring to be heard, including the grantee, shall be heard on any matters relating to the performance of the franchise, the grantee's services, and the proposed new rates.
D. Within ninety days after the hearing, the Council shall render a written decision on the grantee's proposal, either accepting, rejecting, or modifying the same and reciting the basis for its decision.
E. If the Council fails to act within ninety days of the grantee's petition filed pursuant to paragraph (b)(3)B. hereof, the grantee shall thereafter be entitled to put its proposed new rates into effect on a provisional basis, provided that it shall keep a full and accurate accounting of all income resulting from said provisional rates and shall be obligated, for a period of six months thereafter, to refund the amount by which said provisional rates exceed the rates ultimately established by the Council. Upon request by the Council, the grantee shall provide a bond or other reasonable surety to ensure that possible refunds due under this subsection shall be promptly made. The bond or surety shall be in an amount not to exceed the difference between the amount of revenues generated in six months at the previous existing rates and the amount of revenues expected to be generated in six months at the provisional rates. Such bond shall be in a form approved by the Law Director.
F. The criteria for the Council's decision in such matters shall be the establishment of rates which are “fair and reasonable” to both the grantee and its subscribers.
G. In order for the Council to determine whether proposed rate changes comport with the criteria established in subsection (f) hereof, the grantee's petition for a rate increase shall include the following financial reports which shall reflect the operations of its cable television system within the Village:
1. Balance sheet
2. Income statement
3. Cash flow statement
4. Statement of sources and application of funds
5. Detailed supporting schedules of expenses, income, assets and other items as may be required
6. Statement of current and projected subscribers and penetration.
The grantee's account records shall be available for inspection by the Village at all reasonable times. The documents listed above shall include sufficient detail and/or footnotes as may be necessary to provide the Village with the information needed to make accurate determinations as to the financial condition of the system. All financial statements shall be certified as accurate by an officer of the grantee.
H. Any disagreement between the Village and the grantee concerning interpretations and calculations of the financial and statistical information provided by the grantee may be submitted to a court of competent jurisdiction, provided that final decisions concerning approval or denial of requested rate increases shall be made solely by the Village Council.
(c) All Rates to be Non-Discriminatory. The grantee shall administer any and all rates and charges so as not to give preference to nor discriminate among subscribers of like category or class. Nothing in the foregoing shall be deemed to prevent the grantee from establishing:
(1) Special temporary reduced rates for periodic promotional offers to attract new subscribers or for subscribers who pay promptly;
(2) Reasonable policies for deposits, penalties, or denial of service where a particular subscriber has proven a bona fide credit problem; or
(3) Separate rates for commercial and non-commercial users of access channels.
(d) Advance Charges and Deposits. The grantee may require subscribers to pay for basic subscriber service one month in advance. The grantee may also require a reasonable security deposit for provision of the basic converter unit. Such deposit, in the absence of theft or avoidable damage to the converter, shall be refundable to the subscriber. No other advance payment or deposit shall be required by the grantee for basic subscriber service, except as provided in paragraph (c)(2) hereof.
(e) Disconnection. Except as otherwise provided by Council, there shall be no charge for the disconnection of any installation or outlet. If any subscriber fails to pay a properly due fee or charge, the grantee may disconnect the subscriber's service outlet, provided, however, that such disconnection shall not be effected until forty-five days after the due date of said delinquent fee or charge and shall include seven days' written notice of the intent to disconnect, properly mailed to the subscriber in question. After disconnection, upon payment in full of the delinquent fee or charge, any reasonable collection expense or penalty, and the payment of a reconnection charge, the grantee shall promptly reinstate the subscriber's cable service.
(f) Refunds to Subscribers.
(1) If any subscriber terminates the basic subscriber service during the first twelve months of said service because of the failure of the grantee to render service in accordance with the standards set forth in Sections 810.17 and 810.18, the grantee shall refund to such subscriber an amount equal to the installation or reconnection charges paid, if any, by the subscriber, multiplied by the fraction derived by dividing the month(s) remaining before the annual anniversary of service, divided by twelve.
(2) If any subscriber terminates basic subscriber service prior to the end of a prepaid period, all unearned service fees as of the date the grantee receives written notice of said termination shall be refunded to the subscriber.
(Ord. 16-80. Passed 5-20-80.)