(a) Company Petition Procedure. The Company may request a rate or service charge change at any time after the completion of system construction.
(1) Such requests shall be made to Council.
(2) Such request shall contain written and documented justification for the rate of service charge change, including, but not limited to, the following financial reports, reflective of the Village cable system only:
A. Balance sheet;
B. Income statement;
C. Cash flow statement;
D. Statement of sources and application of funds;
E. Detailed supporting schedules of expenses, corporate overhead, income, assets and other items as may be required; and F. Statement of current and projected subscribers and market penetration.
(3) The Company's accounting records applicable to the Village cable system and within the Village, shall be available for inspection by Council, or its designated agent at all reasonable times.
(4) Council or its designated agent shall have access to all records of financial transactions for the purpose of verifying burden rates or other indirect costs prorated to the New Boston cable operation.
(5) All documents listed above and any others that the Village may reasonably request shall be certified as accurate by an officer of the Company and include sufficient detail and/or footnotes as may be necessary to permit Council to accurately determine the financial condition of the cable system.
(6) Such request, along with the proposed rate schedule or service charge change increases shall be filed, in triplicate with the Village Clerk, one copy of which shall remain on file with the Clerk for public inspection.
(7) All rate of service charge proposals shall be submitted at least 120 days before the requested implementation date.
(b) Village Procedure. Council shall have the authority to review all rates, fees and charges, where not otherwise prohibited by State or Federal law.
Council shall:
(1) Immediately investigate the proposed change for not longer than ninety days and include within that time at least one public hearing.
(2) The Village shall make a decision to either approve, modify or disapprove the request note of service charge change within ninety days.
(c) Considerations. Council shall consider the following factors and may consider any other factors in approving, modifying or disapproving the petition:
(1) The ability of the Company to render system services and to derive a reasonable profit therefrom under the existing rate schedule and under the proposed rate schedule.
(2) The revenues and profits derived from the system services.
(3) The efficiency of the Company.
(4) The quality of the cable system service.
(5) The original cost of the system, less depreciation.
(6) A fair rate of return with respect to the cost of borrowing, and the rates of return on investments having similar risks to that of cable communications.
(7) The extent to which the Company has adhered to the terms of this chapter and service contract.
(8) The fairness to Village residents, subscribers and users.
(9) No valuation shall be placed upon the contract or the Company's goodwill.
These items shall be neither amortized as an expense nor shall a return be paid on them.
(d) Final Decision.
(1) If Council fails to hold a hearing or render a written decision approving, modifying or disapproving the Company's petition, within 120 days after the petition, the Company shall be entitled to put its new rates into effect.
(2) If no rate is established by Council within 120 days after the request, the Company's petition will be deemed approved.
(3) The Company shall not refuse to continue service or in fact discontinue such service in the event a rate increase is denied by Council.
(Ord. 12- 83. Passed 2-15- 83.)