(A) The grantee of any franchise issued pursuant to the provisions of this chapter shall be authorized to construct, or have constructed, operate and maintain a CATV system and to engage in the business of providing a CATV service in the town, and for that purpose, to erect, install, construct, repair, replace, reconstruct, maintain and retain in, over, on, under, upon, across and along any public street any wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property excepting poles as may be necessary and appurtenant to the CATV system; and, in addition, so to use, operate and provide similar facilities or properties rented or leased from other persons, including but not limited to any public utility or other grantee franchised or permitted to do business in the town.
(B) Conditions concerning rate-setting are as follows.
(1) The grantee may initially charge subscribers and users of the CATV system for services up to the amounts specified in its schedule of rates and charges as proposed in its franchise application and approved by the Mayor and Council. Such maximum rates shall be in effect for a minimum period of two years from the effective date of the franchise or until the grantee has completed all construction as proposed in its franchise application for the first and second years of construction, whichever is longer.
(2) The grantee may establish rates for service from time to time thereafter by filing with the Town Administrator a schedule of rates 30 days prior to their implementation.
(3) (a) At any time after a minimum period of two years from the effective date of the franchise or until the grantee has completed all construction as proposed in its franchise application for the first and second year of construction, whichever is longer, the Mayor and Council may determine whether it will assume rate modification authority.
(b) If the Council declines rate modification authority, then rates may be modified by the grantee as specified in division (B)(2) of this section. If the Council assumes rate modification authority, then for the term designated, rates shall be subject to modification only by the Council and only in accordance with the following procedures.
1. The grantee may petition the Mayor and Council for a change in rates by filing a revised rate schedule including its justification(s) for the proposed new schedule.
2. Within ten days of notification by the Council of the place and time established for a hearing on such petition, the grantee shall notify its subscribers of the hearing by announcement on at least one channel of its system, between the hours of 7:00 and 9:00 p.m., for five consecutive days. Additionally, hearings shall be announced in a newspaper of general circulation at least five days before the date of the hearing and at the expense of the grantee. Following all proper notice, but in no event later than 90 days from the date of the petition, the Council shall hold an appropriate public hearing to consider the proposed new rates, at which hearing all parties desiring to be heard, including the grantee, shall be heard on any matters relating to performance under this franchise, the grantee's services, and the proposed new rates.
(c) Within 90 days after the hearing, the Mayor and Council shall render a written decision on the grantee's petition, either accepting, rejecting or modifying the same and reciting the basis of its decision.
(d) If the Mayor and Council fails to act within 180 days of the grantee's petition pursuant to division (B)(3)(a) of this section, the grantee shall thereafter be entitled to put its proposed new rates into effect on a provisional basis, provided that it shall keep a full and accurate accounting of all income resulting from the provisional rates and shall be obliged for a period of 180 days thereafter to refund the amount by which the provisional rates exceed the rates ultimately established by the Council. Upon request by the Council, the grantee shall provide a bond of other reasonable surety to ensure that possible refunds due under this division shall be promptly made. The bond or surety shall be in an amount not to exceed the difference between the amount of revenues generated in 180 days at the previously existing rates and the amount of revenues expected to be generated in 180 days at the provisional rates.
(4) The criteria for the Mayor and Council's decision in such matters shall be the establishment of rates which are "fair and reasonable" to both the grantee and its subscribers and shall be generally defined as the minimum rates necessary to meet all applicable costs of service, including fair return on all invested capital, all assuming efficient and economical management.
(5) (a) In order for the Mayor and Council to determine whether proposed rate changes conform with the criteria established in division (B)(4) of this section, the grantee's petition for a rate increase shall include all the following financial reports, which shall reflect the operations of the municipal system only:
1. Balance sheet;
2. Income statement;
3. Statement of sources and applications of funds;
4. Detailed supporting schedules of expenses, income, assets and other items as may be required; and
5. Statement of current and projected subscribers and penetration.
(b) The grantee's accounting records applicable to the municipal system shall be available for inspection by the town at all reasonable times. The town shall have access to records of financial transactions for the purpose of verifying burden rates or other indirect costs prorated to town operation. The documents listed above shall include sufficient detail and/or footnotes as may be necessary to provide the town with the information needed to make accurate determinations as to the financial condition of the system. All financial statements shall be certified as accurate by an officer of the grantee.
(6) Any disagreement between the town and the grantee concerning interpretations and calculations of the financial and statistical information provided by the grantee may be submitted to a court of competent jurisdiction when permitted by law.
(C) The grantee shall not engage in the sale, service, repair, rental or leasing of television receivers, radio receivers, parts or accessories and shall not require or attempt to influence its subscribers to deal with any particular person in regard thereto.
(D) Construction and maintenance of the CATV system, including house connections, shall be in accordance with the provisions of the following:
(1) National Electrical Safety Code of the Institute of Electrical and Electronic Engineers;
(2) National Electrical Code of the National Fire Protection Agency; and
(3) Bell Telephone System's Code of Pole Line Construction.
(1995 Code, § 16-6)