(A) Notice. Upon the adoption of the ordinance codified in this chapter and the certification of the town by the FCC, the town shall immediately notify all cable operators in the town, by certified mail, return receipt requested, that the town intends to regulate subscriber rates charged for the basic service tier and associated equipment as authorized by the Cable Act of 1992, being 47 U.S.C. §§ 521 et seq.
(B) Cable operator response. Within 30 days of receiving notice from the town, a cable operator shall file with the town, its current rates for 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 Town Council 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 Town Council shall:
(a) Hold a public hearing at which interested persons may express their views; and
(b) Act to approve the rates within 30 days from the date the cable operator filed its basic cable rates with the town.
(2) If the Town Council takes no action within 30 days from the date the cable operator filed its basic rates with the town, the proposed rates will continue in effect.
(D) Extended review period.
(1) If the Town Council 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 Town Council shall, within 30 days from the date the cable operator filed its basic cable rates with the town and 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 Town Council needs more time to ensure that a rate is within the FCC’s reasonable rate standard; or
(b) One hundred fifty days if the cable operator has submitted a cost-of-service showing seeking to justify a rate above the applicable benchmark.
(2) If the Town Council has not made a decision within the 90- or 150-day period, the Town Council 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 Town Council 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 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 Town Clerk/Treasurer 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 Town Council shall review the rates using the benchmark analysis in accordance with the standard form authorized by the FCC. Based on the Town Council’s findings, the initial basic cable 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 9-30-1992, reduced by 10%, or the applicable benchmark, adjusted for inflation and any change in the number occurring between 9-30-1992 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 9-30-1992, 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 Town Council will review a cost-of-service submission pursuant to FCC standards for cost-of-service review. The Town Council 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 9-30-1992 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 Town Council 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 Town Council 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 the cost-of-service analysis, if any, does not justify the proposed rates, the Town Council 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 and refunds. If the Town Council determines that the initial basic cable rates submitted exceed the reasonable rate standard or that the cable operator’s cost-of-service showing justifies lower rates, the Town Council may order the rates reduced in accordance with divisions (G) or (H) above, as applicable. In addition, the Town Council 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 9-1-1993. The method for paying any refund and the interest rate will be in accordance with FCC regulations as directed in the Town Council’s decision resolution.
(3) Statement of reasons for decision and public notice. If rates proposed by 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 Town Council must give the public notice of its decision. Public notice will be given by advertisement once in a newspaper of general circulation in the town.
(J) Appeal. The Town Council’s decision concerning rates for the basic service tier or associated equipment may be appealed to the FCC in accordance with applicable federal regulations.
(Prior Code, § 13.16.020) (Ord. 93-08, passed - -)