(A) Any franchise issued hereunder shall set forth the initial rates which the grantee may charge its subscribers on commencing service. Thereafter, these rates shall be changed when appropriate in accordance with the provisions of this section. Any rate established shall be reasonable, just, and fair to the public, and shall provide the grantee a reasonable rate of return on its investment. No rate established shall afford any undue preference or advantage among subscribers, but separate rates may be established for separate classes of subscribers and rates may reflect the increased costs of providing services to isolated or sparsely populated areas.
(B) Changes in established rates shall be as follows.
(1) Within two years from the date of the franchise agreement, the grantee may change the initial rates without authorization of the city, except as otherwise provided herein.
(2) During each two-year period of the franchise agreement after the initial two years set forth in this section, the grantee may change its rates without prior authorization of the city, provided the city has not elected to require that changes of established rates shall be made only on authorization by the city in the manner herein provided.
(3) The city may, at the expiration of the initial two-year period or at the expiration of any two-year period thereafter, have the option and privilege to require any change in established rates to be made only upon authorization of the city. The city may at the expiration of any two-year period following the expiration of the initial two-year period, have the option and privilege to deregulate and allow the grantee to change its rates without prior authorization of the city in accordance with the terms set forth in this section. This option may be exercised by the city giving the grantee written notice at least 60 days prior to the termination of any two-year interval that changes in established rates shall from the date of the notice be made only on authorization of the city. If the city shall not elect to regulate the rates in the manner herein provided, then the grantee may fix and determine its rates for the ensuing two-year period without review or approval of the city.
(4) No rate change shall be made by the grantee within any 90-day period prior to the termination date of any two-year intervals provided herein.
(C) Upon election of the city as provided in division (B)(3) above, changes in established rates shall be subject to the following procedures.
(1) Should the grantee desire to change any rate or rates, it shall file a petition with the city at least 90 days prior to the proposed date of change. The petition shall detail the proposed changes, setting forth the reasons the changes are desired. Upon receipt of a petition for a rate change, the city shall schedule and publish notice of a public hearing on the matter to be held within 60 days from the date of receipt of the petition. At the public hearing, all interested parties shall be heard. Evidence shall be taken and received and all of the elements necessary shall be considered in determining the reasonableness of the proposed rates, including the return experienced by the company on its investment. Thereafter, the city shall decide the matter by a majority vote and render a decision approving, disapproving, or modifying the proposed rate changes. The decision shall set forth complete findings of fact and conclusions regarding all of the basic elements considered in determining the rates, as set forth above.
(2) If no decision is rendered by the city within 90 days after receipt of the petition for a change of rate, the grantee may institute the proposed changes on an interim basis. Rates charged on an interim basis shall be conformed to the decision of city when rendered. If requested by the city, the grantee shall post a security bond on an acceptable surety company to guarantee any adjustments or refunds that may be required.
(3) Should the city desire to review rates, it shall schedule a public hearing for that purpose at which the grantee and members of the public shall be heard. At least 30 days notice of the hearing shall be provided. Any decision by the city to increase or decrease rates after the hearing shall be rendered in writing along with a statement of the reasons therefor.
(Ord. 130, passed 3-26-81) Penalty, see § 110.99