(A) Prior to beginning operation, the grantee shall file with the city a schedule of tariffs which shall include all fees, charges, and rates to be charged to subscribers.
(B) The rates shall be subject to modification after 8-2-1983 only by the City Council of the City of Schuyler, Nebraska, subject to any FCC regulations which may be applicable, after a recommendation by the CATV Advisory Board in accordance with the following procedures, except that the grantee may decrease rates at any time, to-wit.
(1) The company may petition the City Council for a change in rates by filing a revised rate schedule including its justification(s) for the proposed new schedule.
(2) The City Council shall notify the company of the time and place established for a hearing on the petition, the company shall within ten days thereafter notify its subscribers of the time, date, place, and subject matter of the hearing by announcement on at least one of its channels, between the hours of 7:00 p.m. and 9:00 p.m., for five consecutive days. At least 30 days prior to the first public meeting held to examine programming content and rates, each rate payer or subscriber shall be notified by billing statement or other written notice when and where the public meeting shall be held. The notice shall also provide information as consideration by the Council. Following all proper notice, but in no event later than 90 days from the date of the filing of the petition, the City Council shall hold a public meeting at which the rate payers and the company may comment on the programming content and rate of the company.
(3) The City Council shall act within six months from the date of the company’s petition and if the City Council so fails to act within six months from date of company’s petition, the company 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 up to six months thereafter to refund the amount by which the provisional rates exceed the rates ultimately established by the City Council. Upon a bond or other reasonable surety to ensure that possible refunds due under this division (B) shall be promptly made or in the alternative the company shall place the funds in escrow. The bond or surety shall be in an amount not to exceed the difference between the amount of revenues generated in six months at the previously existing rates and the amount of revenues expected to be generated in six months at the provisional rates.
(4) The criteria for the City Council decision in such matters shall be establishment of rates which are “fair and reasonable” to both the company and its subscribers and shall be generally defined as the minimum rates necessary to meet all applicable cost of service, including fair return on all invested capital, all assuming efficient and economical management.
(5) In order for the City Council to determine whether proposed rate changes comport with the criteria established in division (B)(4) above, the company’s petition for a rate increase shall include the following financial reports, which shall reflect the operations of the Schuyler system only:
(a) Balance sheet;
(b) Income statement;
(c) Cash flow statement;
(d) Statement of sources and applications of funds;
(e) Detailed supporting schedules of expenses, income, assets, and other items as may be required; and
(f) Statement of current and projected subscribers and penetration.
(6) The company’s accounting records applicable to the system shall be available for inspection by the city at all reasonable times. The city shall have access to records of financial transactions for the purpose of verifying burden rates or other indirect costs prorated to the Schuyler operation. The documents listed above shall include sufficient detail and/or footnotes as may be necessary to provide the city 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 company.
(1972 Code, § 10-734) (Ord. 638, passed 4-15-1980; Ord. 710, passed 8-16-1983)