(A) Notice. A cable operator in the city that wishes to increase the rates for the basic service tier and associated equipment shall file a request with the city and notify all subscribers at least 30 days before the cable operator intends for the increase to take effect. Basic cable rates may not be increased more often than annually and no sooner than one year after the effective date of the initial basic cable rates.
(B) Expedited determination and public hearing.
(1) If the City Council is able to expeditiously determine that the cable operator's rate increase request for basic cable service is within the FCC's reasonable rate standard, as determined by the applicable price cap, the City Council shall:
(a) Hold a public hearing at which interested persons may express their views on and record objections to the proposed rates; and
(b) Act to approve the rate increase within 30 days from the date the cable operator files its request with the city.
(2) If the City Council takes no action within 30 days from the date the cable operator files its request with the city, the proposed rates shall be deemed approved and will go into effect on the date indicated by the cable operator.
(C) Extended review period. The following provisions shall apply in the event of an extended review by the city:
(1) If the City Council is unable to determine whether the proposed rate increase is 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, by adoption of a formal resolution, invoke the following additional period 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 the requested increased is within the FCC's reasonable rate standard as determined by the applicable price cap; and
(b) 150 days if the cable operator has submitted cost-of-service showing seeking to justify a rate increase above the applicable price cap.
(2) The proposed rate increase shall be suspended and not implemented during the extended review period.
(3) If the City Council fails to reach a decision within the 90- or 150-day period, the city shall issue a written order at the end of the period directing the cable operator to keep accurate account of all amounts received by reason of the proposed rate increase and on whose behalf the amounts are paid and authorizing the rates to be implemented subject to the provisions of division (F) of this section.
(D) Public hearing. During the extended review period and before taking action on the proposed rate increase, 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 rate increase.
(E) Objections. An interested person who wishes to make an objection to the proposed rate increase may request the City Clerk to record the objection during the public hearing or may submit the objection in writing anytime before the cable rate ordinance is adopted. In order for an objection to be made part of the record, the objector must provide the City Clerk with their name and address.
(F) Delayed determination. If the City Council is unable to make a final determination concerning a proposed rate increase within the extended time period, the cable operator may put the increase into effect, subject to subsequent refund if the City Council later issues a decision disapproving any portion of the increase.
(G) Price cap analysis. If a cable operator presents its request for a rate increase as being in compliance with the FCC's price cap, the City Council shall review the rate using the price cap analysis in accordance with the standard form authorized by the FCC. Based on the City Council'S findings, the basic cable rates shall be established as follows:
(1) If the proposed basic cable rate increase is within the price cap established by the FCC, the proposed rates shall become the new basic cable rates.
(2) If the proposed basic cable rate increase exceeds the price cap established by the FCC, the City Council shall disapprove the proposed rate increase and order an increase that is in compliance with the price cap.
(H) Cost-of-service showing. If a cable operator submits a cost-of-service showing in an attempt to justify a rate increase above the price cap, the City Council shall review the submission pursuant to the FCC standards for cost-of-service review. The City Council may approve a rate increase above the price cap is 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 a rate below the price cap or below the cable operator's then current rate.
(I) Decision. The City Council's decision concerning the requested rate increase, shall be adopted by a cable rate ordinance. If a rate increase proposed by a cable operator is disapproved in whole or in part, or if objections were made by other parties to the proposed rate increase, the resolution must state the reasons for the decision. Objections may be made at the public hearing by a person requesting the City Clerk to record the objection or may be submitted in writing anytime before the cable rate ordinance is adopted.
(J) Refunds.
(1) The City Council may order refunds of subscribers' rate payments plus interest thereon from date of payment if:
(a) The City Council was unable to make a decision within the extended time period as described in division (C) of this section;
(b) The cable operator implemented the rate increase at the end of the extended review period; and
(c) The City Council determines that the rate increase as submitted exceeds the applicable price cap or that the cable operator failed to justify the rate increase by a cost-of-service showing; and
(d) The City Council disapproves any portion of the rate increase.
(2) 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.
(K) Appeal. 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)