(A) Notification of proposed rate increase.
(1) A cable operator shall provide written notice to a subscriber of any increase in the price to be charged for the basic service tier or associated equipment at least 30 days before any proposed increase is effective. The notice shall include a provision stating that protests to such prices may be filed with the city at P. O. Box 657, Cleburne, Texas, 76033. The notice shall also include a statement that such protests must be filed with the city no later than 30 days after the notice is received by the subscriber.
(2) In addition to the notice required in subdivision (A)(1), the cable operator shall give the city a minimum of 30 days advance written notification of any changes in rates for cable programming service or associated equipment.
(B) Initiation of review of basic cable service and equipment rates. A cable operator shall file its schedule of rates for the basic service tier and associated equipment with the city within 30 day of receiving written notification from the city that the city has been certified by the Commission to regulate rates for the basic service tier, or by November 15th, 1993, whichever is later.
(C) City review of basic cable rates and equipment costs.
(1) After a cable operator has submitted to the city for review its existing rates for the basic service tier and associated equipment costs, or a proposed increase in these rates (including increases in the baseline channel charge that results from reductions in the number of channels in a tier), the existing rates will remain in effect or the proposed rates will become effective after 30 days from the date of submission to the city. Provided, however, that the city may toll this 30-day deadline for an additional time by issuing a brief written order as described in division (C)(4) within 30 days of the rate submission explaining that it needs additional time to review the rates. The city may, at any time, require the cable operator to produce additional information, including proprietary information, that the city deems necessary in order to make a rate determination. If proprietary information is provided, the provisions of division (D) of this section will apply to such information.
(2) Upon receipt by the city, the cable operator's submittal shall be available for public inspection and copying. Comments on the submittal by interested persons may be submitted in writing or orally at a city Council meeting held at any time during the initial 30-day review period. Written comments shall be addressed to the City Manager and must be received prior to the end of the 30-day review period.
(3) If a cable operator submits a proposed rate increase for review that appears to exceed the presumptively reasonable level and does not include a cost-of-service showing to justify the rate, the city will permit the cable operator to cure this deficiency and submit a cost-of-service showing to justify the rate.
(4) (a) If the city is unable to determine, based upon the material submitted by the cable operator, that the existing or proposed rates are within the permitted basic service tier charge or actual cost of equipment as defined in this chapter, or if a cable operator has submitted a cost-of-service showing pursuant to this chapter seeking to justify a rate above the basic service tier charges as defined in this chapter, the city may toll the 30-day deadline in Subdivision (C)(1) of this section to request and/or consider additional information or to consider the comments from interested parties as follows:
1. For an additional 90 days in cases not involving cost-of-service showings; or
2. For an additional 150 days in cases involving cost-of-service showings.
(b) The order tolling the effective date of the proposed rate shall explain why the city could not make the necessary determination, and it shall also provide the cable operator an opportunity to cure any deficiencies in its original filing. During the additional time periods provided in this division, comments from interested persons may be submitted in writing, as provided in subdivision (C)(2) of this section, or orally during at least one city Council meeting during the period of abatement.
(5) If the city has availed itself of the additional 90 or 150 days permitted in Subdivision (C)(3) of this section, and has taken no action within these additional time periods, then the proposed rates will go into effect at the end of the 90 or 150 day periods, or existing rates will remain in effect at such times, subject to refunds if the city subsequently issues a written decision disapproving any portion of such rates. Provided, however, that in order to order refunds, the city must have issued a brief written order to the cable operator by the end of the 90 or 150 day period permitted in Subdivision (C)(3) of this section directing the operator to keep an accurate account of all amounts received by reason of the rate in issue and on whose behalf such amounts were paid.
(D) Proprietary information.
(1) If the city has required the cable operator to produce proprietary information under the provisions of this chapter, the cable operator may submit therewith a request that such information not be made routinely available for public inspection. A copy of the request shall be attached to an shall cover all of the materials to which it applies and all copies of those materials. If feasible, the materials to which the request applies shall be physically separated from any materials to which the request does not apply. If this is not feasible, the portion of the materials to which the request applies shall be identified.
(2) Each such request shall contain a statement of the reasons for withholding the materials from inspection and of the facts upon which those reasons are based. If the request is that the materials be withheld from inspection for a limited period of time, that period shall be specified.
(3) Casual requests which do not comply with the requirements of Subdivisions (D)(1) and (2) of this section will not be considered.
(4) Upon receipt of a request in compliance with Subdivisions (D)(1) and (2), the city will not grant routine public access to the materials. A letter to that effect will be placed in a public file in lieu of the materials withheld from public inspection.
(5) Provided, however, if a written request for the materials is received by the city pursuant to the Open Records Act, Tex. Gov't Code §§ 552.001 et seq., the city will notify the person providing the materials of the request for the materials. If the person providing the materials requests the city to do so, the city will request an opinion from the Attorney General, pursuant to the Open Records Act, regarding the public availability of the materials. If the person providing the materials does not request the city to request an opinion from the Attorney General, the city may, at is option, either request such an opinion or provide the materials to the public.
(6) If the Attorney General issues an opinion or letter ruling requiring the city to make the materials available to the public, the materials will be made available for public inspection.
(7) If no request for confidentiality is submitted, the city assumes no obligation to consider the need for non-disclosure.
(E) Burden of proof.
(1) A cable operator has the burden of providing that its existing or proposed rates for basic service and associated equipment comply with federal regulations and this chapter.
(2) For an existing or proposed rate for basic service tier or associated equipment that is within the permitted tier charge and actual cost of equipment as set forth in this chapter, the cable operator must submit the appropriate FCC form to the city.
(3) For an existing or a proposed rate for basic service tier that exceeds the permitted tier charge as set forth in this chapter, the cable operator must submit to the city a cost-of-service showing to justify the proposed rates. The cost-of-service showing must in conformance with Accounting and Cost Allocation Requirements as adopted and amended by the Commission for cable system operators.
(F) Written decision.
(1) The city shall issue a written decision in a ratemaking proceeding whenever it disapproves an initial rate for the basic service tier or associated equipment in whole or in part, disapproves a request for a rate increase in whole or in part, or approves a request for an increase in whole or in part over the objections of interested parties. The city is not required to issue a written decision that approves an unopposed existing or proposed rate for the basic service tier or associated equipment.
(2) Public notice shall be given of any written decision required in Subdivision (F)(1) of this section by making the text of any written decision available to the public, and by publication of the decision one time in the official newspaper of the city.
(G) Reduction of rates; prescription of rates.
(1) The city may order a cable operator to implement a prospective reduction in basic service tier or associated equipment rates where necessary to bring rates into compliance with the standards set forth in this chapter.
(2) The city may prescribe a reasonable rate for the basic service tier or associated equipment after it determines that a proposed rate is unreasonable.
(H) Refunds.
(1) The city may order a cable operator to refund to subscribers that portion of previously paid rates determined by the city to be in excess of the permitted tier charge or above the actual cost of equipment, unless the operator has submitted a cost-of-service showing which justifies the rate charges as reasonable. Before ordering a cable operator to refund previously paid rates to subscribers, the city shall given the operator notice and opportunity to comment. The operator's opportunity to comment upon the proposed refunds may be at any meeting of the City Council during the city's period of review of the operator's rates. If the city has extended its review period, and has issued an accounting order, then the operator, prior to refunds being ordered, may request an opportunity to appear before the City Council to comment upon the proposed refunds.
(2) An operator's liability for refunds is limited to a one-year period, except that an operator that fails to comply with a valid rate order issued by the city shall be liable for refunds commencing from the effective date of such order until such time as it complies with such order.
(3) The refund portion shall run as follows:
(a) From the date the operator implements a prospective rate reduction back in time to September 1, 1993, or one year, whichever is shorter.
(b) From the date the city issues an accounting order, and ending on the date the operator implements a prospective rate reduction ordered by the city or one year, whichever is shorter.
(4) The cable operator, in its discretion, may implement a refund in the following manner:
(a) By returning overcharges to those subscribers who actually paid the overcharges, either through direct payment or as specifically identified credit to those subscribers' bills; or
(b) By means of a prospective percentage reduction in the rates for the basic service tier or associated equipment to cover the cumulative overcharge. This shall be reflected as a specifically identified, one-time credit on prospective bills to the class of subscribers that currently subscribe to the cable system.
(5) Refunds shall include interest computed at applicable rates published by the Internal Revenue Service for tax refunds and additional tax payments.
(Ord. 4-1994-20, passed 4-12-94)