(a) Initial Rates for Basic Service.
(1) The grantee shall establish initial rates for the subscriber services indicated in Attachment B, which is attached to original Ordinance 593, passed July 12, 1982. The grantee shall not increase the initial rates for a period of twenty-four months after system activation or thirty-six months from the date of the franchise award, whichever is longer. The maintenance of initial rates shall include pay television rates, and the grantee shall not utilize Federal Communications Commission or other pre-emption of pay cable rates to increase such rates prior to the expiration of such period. Upon the expiration of the initial period, rates and charges for those services for which rate regulations are not pre-empted by the Federal Communications Commission shall be subject to regulation by the grantor.
(2) The grantee may add to its service or installation fees any Federal, State or local tax or fee directly imposed on subscribers or any additional copyright fee that may be imposed as a result of legislative or judicial action at the Federal, State or local level taken after the filing of the franchise application. If, during the term of the franchise, the grantee receives a refund of any copyright payment caused by an error in copyright fee computations which results in an overcharge to subscribers, the grantee shall, without delay, notify the Board of Trustees, suggest a plan for flow-through of the refund to its subscribers and retain such refund in an interest-bearing escrow account pending an order of the Board. After considering the plan submitted by the grantee, the Board shall order flow-through of the refund with accrued interest to the grantee's subscribers in a fair and equitable manner.
(b) Rate Regulation. The grantor may consider any or all of the following factors in determining whether to approve, modify or disapprove the grantee's requests for rate increases during the term of the franchise:
(1) The grantee's substantial fulfillment of all material requirements of the franchise;
(2) The quality of service, as indicated by the number and type of service complaints, the grantee's response to complaints and the results of periodic system performance tests;
(3) Prevailing rates for comparable services in other cable systems of similar size and complexity;
(4) The rate of return on the grantee's financial investment and equity, as compared to businesses of equivalent risk. The rate of return shall be calculated on a cumulative basis for all system revenues and costs, including services such as pay television that may be exempt from local rate regulation. The grantor may request from the grantee all information as shall reasonably be necessary to determine system revenues and costs.
(5) The performance of the grantee in introducing new services and expanding the cable system's capability, as compared to other systems of similar size and complexity.
(c) Rate Changes. The grantee shall not request increases in rates for basic service more often than annually. Upon receipt of a rate increase request, the grantor may schedule a public hearing prior to arriving at a decision. The grantor may request relevant financial and other information necessary to determine the justification for the requested increase. Within ninety days after receipt of the rate increase request, the grantor may, by resolution, approve the request in full, approve the request in part or disapprove the request. In any event, the grantor shall provide findings as to the basis for its decision. If no grantor action has occurred within ninety days after receipt of the rate increase request, the request shall be deemed to have been approved.
(d) Rates for Other Than Basic Service. At least ninety days in advance of the offering of any service or equipment other than basic subscriber service, the grantee shall file with the Board of Trustees a schedule of the rates and charges and the rules relating to such other service and equipment and shall not alter the same upon less than ninety days notice and only in accordance with the then applicable rules and regulations of the Federal Communications Commission and/or other agencies of competent jurisdiction. If, at any time, applicable Federal or State law would permit Board regulation of the rates in accordance with the procedures set forth in subsection (c) hereof, such regulation shall be authorized under this section.
(e) Rates to be Nondiscriminatory. The grantee shall administer any and all rates and charges so as not to give preference to or discriminate among subscribers of a like category or class. Nothing in this provision, however, shall be deemed to prevent the grantee from establishing:
(1) Special temporary reduced rates for periodic promotional offers to attract new subscribers or for subscribers who pay promptly;
(2) Reasonable policies for deposits, penalties or denial of service where a particular subscriber has proven to be a bona fide credit problem;
(3) With the prior approval of the Board, special schedules of rates and charges for service to premises in annexed areas not meeting the density standards established in Section 814.26, provided that the same are not inconsistent with applicable Federal Communications Commission rules and regulations; or
(4) Separate rates for commercial and noncommercial users of access channels.
(f) No Charge for Certain Installations. Each public or private school located in the Village shall be given, upon request, one free outlet and subscription to the system's basic subscriber service. All Village-occupied buildings shall receive, upon request, the same free service and maintenance as schools, such buildings to include, but not be limited to, courts, correctional systems, publicly-supported health facilities, public safety facilities, publicly-supported day care centers and publicly-supported libraries. Additional outlets and service shall be governed by the other rate provisions of this chapter. In addition, the Village shall have the unrestricted use of cable for Municipal security systems, traffic control systems or other Municipal use deemed to be in the public interest. However, the Village shall not offer services in direct competition with those offered by the grantee.
(g) Advance Charges and Deposits. The grantee may require subscribers to pay for basic subscriber service one month in advance. No other advance payment or deposit shall be required by the grantee for the basic subscriber service, except as provided for in paragraph (e)(2) hereof. No deposit or advance payment shall be charged for the provision of a basic converter without the prior approval of the Board of Trustees.
(h) Disconnection and Reconnection. Except as otherwise provided by the Board, there shall be no charge for the disconnection of any installation or outlet. If a subscriber fails to pay a properly due monthly subscriber fee or any other properly due fee or charge, the grantee may disconnect the subscriber's service outlet. However, such disconnection shall not be effected within thirty days after the due date of the delinquent fee or charge and shall include ten days written notice of the intent to disconnect, properly mailed to the subscriber in question. After disconnection, upon payment in full of the delinquent fee or charge, any reasonable collection expense or penalty and the reconnection charge, the grantee shall promptly reinstate the subscriber's cable service.
(i) Changes in Service. Notwithstanding anything to the contrary herein, the grantee shall be entitled to impose charges for downgrade in service or a lateral change in service pursuant to this chapter so long as the charge imposed does not exceed ten dollars ($10.00) for each downgrade in service or lateral change in service. Downgrade or lateral service change charges shall not be charged until after thirty days from the date of original installation or, for existing installations, thirty days from the passage of this chapter.
(j) Refunds. If a subscriber terminates the basic subscriber service during the first twelve months of the service because of the failure of the grantee to render service in accordance with the standards set forth in Section 814.40, the grantee shall refund to such subscriber an amount equal to the installation charges paid, if any, by the subscriber, multiplied by the fraction derived by dividing, by twelve, the months remaining before the annual anniversary of service.
(Ord. 593. Passed 7-12-82; Ord. 598. Passed 8-23-82; Ord. 642. Passed 5-14-84.)