(A) Submission of proposed rates.
(1) In order to modify its regulated rates, the grantee shall submit to the City Clerk a schedule of proposed rates for basic service, equipment and other charges for customer services. Such schedules shall include the following information:
(a) The date(s) requested for the implementation of such charges;
(b) A schedule of channels and channel placement being made available to subscribing households, including all levels of available service;
(c) The grantee’s designation of each such channel and whether it is defined in the grantee’s offering as its basic service;
(d) The proposed monthly charges requested for the basic service including any discounts available to subscribers; and
(e) The proposed charges for installation, sale and/or rental of any equipment, including, but not limited to, the following items:
1. The cost of installation of cable television services and any surcharges or discounts applicable to such installation charges and the reason for such surcharges or discounts;
2. Where the grantee is requesting that its rates be set according to its cost of service, as defined by federal law, the items of equipment to be used for the delivery of such services including coaxial cable, fiber-optic lines, modulators, satellite receivers and de-scramblers, microwave transmission equipment, converter/de-scrambler boxes, filter traps, remote control devices and similar equipment. In outlining the proposed charges for the installation, sale or rental of this equipment, the grantee shall identify the manufacturer(s) and model numbers of the equipment to be utilized as well as the unit cost to the grantee to purchase or lease such equipment. The grantee shall specify what consumer options are available with respect to each item of equipment to be placed in, or adjacent to, the household, including, but not limited to, the availability of two-way transmission, remote control ability, premium channel de-scrambling ability, digital de-scrambling ability and volume control;
3. The late charges or penalties proposed to be charged to subscribers and the conditions under which those charges are to be imposed or may be waived;
4. The cost for the installation and maintenance of additional or modified outlets;
5. The cost for sale or rental of remote control devices;
6. The cost for cable guides or other similar publications made available to subscribers; and
7. The cost of any other equipment or material that the grantee seeks to be considered in the setting of rates.
(2) The grantee shall supply a list of the charges to subscribers for the items specified within division (A)(1)(e)2. above or comparable equipment/materials used by the grantee in prior years for the five years preceding the date of submission of the rate schedule, including the percentage increase in cost for such items or, in the event the grantee’s franchise has been in effect for less than five years, then for all years the grantee has held such franchise. The grantee need only supply the items specified within division (A)(1)(e)2. above if the grantee is seeking a rate modification based upon its cost of service as defined by federal law.
(3) Concurrent with supplying the above documentation, the grantee shall supply the City Clerk with copies of all documents submitted to the FCC with respect to the grantee’s cost of equipment.
(4) The grantee shall clearly designate what information it considers proprietary in nature and the circumstances under which the grantee will not object to the public release of such proprietary information. The grantee may request that the identified materials be treated as confidential and not subject to public disclosure. Such request must be submitted with a statement as to why such information should be considered proprietary and the factual basis for such statement. The City Council shall grant such request to maintain the confidentiality of the materials if it finds such request consistent with the purposes of 5 USC 552 and FCC regulation of the procedures for requesting public disclosure.
(B) Receipt and forwarding of information. Upon receipt of the information set forth within division (A) above, the City Clerk shall, within 20 days of receipt of the grantee’s submission, do the following:
(1) Cause the proposed rate schedule for basic and regulated equipment to be published in conformance with applicable law;
(2) Provide the City Attorney and City Council with copies of all information supplied to the City Clerk’s offices by the grantee; and
(3) Take all necessary measures to secure any proprietary information supplied to the Clerk and advise the grantee in writing of the measures taken to secure these materials. Such materials shall not be disclosed except as provided herein or as otherwise provided by law.
(C) Consideration of proposal. Following the receipt of such submission from the grantee, the Clerk shall transmit to the grantee, via first class mail, to the address provided by the grantee, a notification containing the following information.
(1) The proposed schedule of rates shall become effective 30 days after the date of the submission unless such schedule is tolled pursuant to, and in conformity with, the applicable FCC rules and this subchapter.
(2) The grantee has the burden of proof in demonstrating that the proposed rate schedules comport with the applicable FCC rules and are appropriate in terms of its costs.
(3) A tolling order for the implementation of the rate schedule may be made by the City Clerk in accordance with the terms of this subchapter.
(D) Obligation of the City Clerk.
(1) The City Clerk shall request from the City Attorney a determination as to whether additional information is necessary and request from the City Council a determination as to whether a public hearing should be conducted to evaluate the grantee’s proposed rate schedule. In the event the City Clerk is notified by the City Attorney or by two or more of the City Council that either more information is necessary or that a public hearing should be held or the City Clerk believes, in his or her discretion, that a public hearing should be held, the City Clerk shall issue a tolling order to the grantee, delaying the implementation of the rate schedule for a period not to exceed 120 days from the date of the tolling order.
(2) In the event the City Clerk issues a tolling order, he or she shall promptly notify the grantee in writing, via first class mail, of the tolling order and setting forth the length of the tolling period. The City Clerk shall also advise the grantee that a public hearing before the City Council will occur within 60 days of the date of the tolling order.
(E) Public hearing. Following the issuance of the tolling order, the City Clerk shall immediately schedule a public hearing before the City Council to be held within 60 days of the date of the tolling order. Notification of the hearing date, time and location shall be transmitted to the grantee via first class mail. The following provisions are made for public hearings as to a cable rate regulation request.
(1) The notice of such public hearing shall be in writing and posted as required by applicable law.
(2) At such public hearing, the grantee shall have the opportunity to present arguments and documentation in person and/or in writing supporting its proposed rate schedule. Following this presentation, the City Council shall hear arguments and consider documentation as presented by the City Attorney, other city officials and members of the general public as to the proposed rate schedule. The grantee may then be allowed to present arguments and documentation in rebuttal.
(3) In the event the City Council needs additional information, documentation or materials from the grantee or any other person, it shall direct that the same be supplied to the City Council within 14 days of the date of the public hearing. Items submitted after the 14-day period shall not be considered. The grantee or other person shall supply these materials to the City Council and the City Clerk shall process these materials in compliance with division (B) above. Concurrently, the City Council shall schedule a second public hearing to be held at the next available City Council meeting.
(4) Upon receipt of the additional materials, the City Clerk shall distribute such materials to the members of the City Council. The City Clerk shall then prepare a written recommendation as to the proposed rate schedule. In evaluating the rates to be set for services, the City Clerk shall consider the federal benchmark standards as may be established by the Federal Communications Commission, if the grantee seeks a rate modification based upon these standards or, if grantee seeks a modification based upon its cost of service, the City Clerk shall allow a fair return on investment, taking into account appropriate costs including, but not limited to, the grantee’s capital costs, basic cable programming, customer service, labor and ancillary costs attributable to obtaining and transmitting signals carried on the basic service.
(5) Also considered shall be increases in the grantee’s costs as to any franchise-imposed requirements not directly related to the provision of cable television service as well as a reasonable profit to the grantee. The City Council shall presume the reasonableness of documented increases and those basic cable costs factors itemized in the “fair return on investment” standard.
(6) At the adjourned hearing, the City Council shall review all information and materials together with the written recommendation of the City Clerk. The City Council may adopt such recommendation or, after setting forth a basis for adopting a modification to that recommendation, and considering all factors outlined within division (A) above, may make and adopt a modified recommendation. Any modification and the basis for the recommendation, shall be promptly reduced to writing and supplied to the City Clerk and sent promptly to the grantee via first class mail.
(7) The recommendation of the City Council shall become final and binding upon the grantee within seven days of the date that the written recommendation is adopted. The City Clerk shall cause the rate schedule to be published in conformance with applicable law.
(1979 Code, § 2.119) (Ord. 118, passed 2-1-1994)