(A) This section shall become effective only in the event that provisions of Federal Law pertaining to the regulation of subscriber rates are modified by subsequent legislation so as to permit such regulation by grantor.
(B) To the extent permitted by federal and state law, the grantor may regulate the rates for basic cable service in accordance with the following procedures.
(C) To the extent permitted in subsection (B) of this section, the grantor shall have the authority to regulate the following rates, fees and charges:
(1) Rates for the provision of basic service to subscribers, whether residential or commercial, including multiple tiers of basic service.
(2) Rates for the initial installation or the rental of one (1) set of the minimum equipment which is necessary for the subscriber's receipt of basic cable service.
(3) Any other rates for the cable services that may become subject to local regulation.
(D) The grantee may petition the Council for a change in rates subject to regulation by filing a proposed rate schedule with the City Clerk which petition shall include the justification(s) for the proposed schedule. Said petition shall be filed at least sixty (60) days prior to the requested implementation date of the rate change. One (1) copy of the petition shall remain on file with the City Clerk and be open for public inspection.
(E) Within sixty (60) days of the filing of the petition for rate change, the Council may hold public hearing to consider the proposed rate change, at which hearing all persons desiring to be heard, including the grantee, shall be heard on any matter, including but not limited to, the performance of the grantee, the grantee's cable services and the proposed new rates.
(F) Upon notice of any public hearing as provided in subsection (E) of this section, the grantee shall notify its subscribers of the time, place and subject matter of the public hearing by announcement on at least two (2) channels of its cable system between the hours of 7:00 p.m. and 9:00 p.m. for at least five (5) consecutive days prior to the hearing. In addition, notice of any public hearing shall be published in a newspaper of local general circulation at least once but not less than seven (7) days before the public hearing.
(G) Within sixty (60) days after said hearing, the Council shall render a written decision on the grantee's petition, either accepting, rejecting, modifying or deferring the same and reciting the basis of its decision. The Council may consider, iner alia, the following factors in approving or disapproving the petition.
(1) The ability of the grantee to render all cable 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 all cable system services;
(3) The efficiency of the grantee;
(4) The quality of the cable service offered by the grantee;
(5) The original cost of the cable 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 television;
(7) The extent to which the grantee has adhered to the terms of this chapter and the applicable franchise agreement;
(8) Fairness to city residents, subscribers and users.
The Council shall not consider any valuation based upon a franchise or the grantee's goodwill and these items of value shall neither be amortized as an expense nor shall a return be paid on them. Any reasonable expense incurred by the grantor in the rate review process will be paid by the grantee.
(H) If no final decision on the grantee's petition has been rendered by the Council within one hundred eighty (180) days after filing of grantee's petition, the grantee's petition will be deemed approved, unless the one hundred eighty (180) day period is extended by mutual agreement between the grantee and the grantor.
(I) The grantee's petition for a rate increase shall include, but not be limited to, the following financial reports, which shall reflect the operations in the city:
(1) Balance sheet;
(2) Income statement;
(3) Cash flow statement;
(4) Statement of sources and applications of funds;
(5) Detailed supporting schedules of expenses, income, assets and other items as may be required; and
(6) Statement of current and projected subscribers and penetration.
The grantee's accounting records applicable to this cable system shall be available for inspection by the grantor at all reasonable times. The grantor shall have access to records of financial transactions for the purpose of verifying burden rates or other indirect costs prorated to this particular cable system.
The documents listed above shall include sufficient detail and/or footnotes as may be necessary to provide grantor with the information needed to make accurate determinations as to the financial condition of the cable system. All financial statements shall be certified as accurate by an officer of the grantee.
('65 Code, § 7-8.505) (Ord. 244-C.S., passed - - ; Am. Ord. 494-C.S., passed 1-19-99)