(A) Notice. Upon the adoption of this chapter and the certification of the city by the FCC, the city shall immediately notify all cable operators in the city by letter (see Appendix A of this chapter) sent by certified mail with return receipt requested that the city intends to regulate subscriber rates charged for the basic service tier and associated equipment as authorized by the Act.
(B) Cable operator response. Within 30 days of receiving the notice from the city pursuant to division (A) of this section, a cable operator shall file with the city its initial basic cable rates for the basic service tier and associated equipment and any material supporting the reasonableness of its rates.
(C) Expedited determination and public hearing.
(1) If the City Council is able to expeditiously determine that the cable operator's proposed rates for the basic service tier and associated equipment are within the FCC's reasonableness rate standard, as determined by the applicable benchmark, the city council shall:
(a) Hold a public hearing at which interested persons may express their views with respect to the proposed rates; and
(b) Act to approve the proposed rates within 30 days from the date the cable operator filed its initial basic cable rates with the city.
(2) If the City Council takes no action within 30 days from the date the cable operator filed its initial basic cable rates with the city, the proposed rates shall be deemed approved and will continue in effect.
(D) Extended review period.
(1) If the City Council is unable to determine whether the proposed rates are within the FCC's reasonable rate standard based on its own investigation and the information submitted by the cable operator, or is the cable operator submits a cost-of-service showing, the City Council shall, within 30 days from the date the cable operator filed its initial basic cable rates with the city and by adoption of a formal resolution, invoke the following additional periods of time, as applicable, within which to make a final determination as to the reasonableness of the proposed rates:
(a) 90 days if the City Council needs more time to ensure that a rate is within the FCC's reasonable rate standard; or
(b) 150 days if the cable operator has submitted a cost-of-service showing seeking to justify a rate above the applicable benchmark.
(2) If the City Council has not made a decision within the 90- or 150-day period in division (D)(1)(a) or (b) of this section, the City 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 including the amount, the date, name of payor 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 City Council shall hold at least one public hearing at which interested persons may express their views on and record objections to the proposed rates.
(F) Objections. An interested person who wishes to make an objection to the proposed initial basic cable rates may bequest the City Clerk to record the objection during the public hearing or may submit the objection in writing anytime before the city takes final action on the proposed rates. In order for an objection to be made part of the record, the objection must provide the City Clerk with the objector's name and address.
(G) Benchmark analysis. If a cable operator submits its current basic cable rates schedule as being in compliance with the FCC's reasonable rate standard, the City Council shall review the rates using the benchmark analysis in accordance with the standard form promulgated by the FCC. Based on the City 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 September 30, 1992, reduced by 10%, or the applicable benchmark, adjusted for inflation and any change in the number of channels occurring between September 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 September 30, 1992, the initial basic cable rates shall be the benchmark, adjusted for inflation.
(H) Cost-of-service showing. If a cable operator does not wish to reduce the rates to the approved level, the cable operator shall have the opportunity to submit a cost-of-service showing to justify Initial basic cable rates above the FCC's reasonable rate standard. The City Council will review the cost-of-service submission pursuant to FCC standards for cost-of-service review. The City Council may approve initial basic cable rates above the benchmark if the cable operator makes the necessary showing; however, rates based upon the cost-of-service determination shall be the new approved rates even if they result in rates below the benchmark or below the cable operator's September 30, 1992 rates minus 10%.
(I) Decision.
(1) Ordinance. After completion of its review of the cable operator's proposed rates, the City Council shall adopt its decision by adoption of an appropriate ordinance. The decision shall be either 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 City 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-ser vice analysis, if any, does not justify the proposed rates, the City 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, and it shall require a review pursuant to division (I)(2) of this section.
(2) Rollbacks and refunds. If the City Council determines that the initial basic cable rates as submitted exceed the reasonable rate standard or that the cable operator's cost-of-service showing justifies lower rates, the City Council may order the rates reduced in accordance with division (G) or (H), as applicable. In addition, the City 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 September 1, 1993. The method for paying any refund and the interest rate will be in accordance with FCC regulations as directed in the City Council's cable rate ordinance.
(3) Statement of findings and public notice. If rates proposed by a cable operator are disapproved in whole or in part, or if there are objections made by other parties to the proposed rates, the cable rate ordinance must state specific findings for the decision and the City Council must give public notice within ten days of its decision. Public notice will be given by publication once in a newspaper of general circulation in the city.
(J) Appeal. Upon adoption and publication of the cable rate ordinance, the City 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.
(Ord. 808, passed 2-2-94)