§ 111.09  RATES, FRANCHISE, AND FILING FEES.
   (A)   Initial rates for basic subscriber service.  The grantee's initial rates for basic subscriber service shall conform to the format outlined in Appendix B and will be those as proposed in the request for proposal and accepted by the city.
   (B)   Changes in rates for basic subscriber service.  These rates shall be subject to modification only by the Council and only in accordance with the following procedures:
      (1)   The grantee may petition the Council for a change in rates by filing a revised rate schedule in the form of Appendix B, including its justification for this proposed new schedule.
      (2)   Within 10 days of notification by the Council of the place and time established for a hearing on that petition, the grantee shall notify its subscribers of the same by announcement on at least 2 channels of its system, between the hours of 7:00 a.m. and 9:00 p.m., for 5 consecutive days.  Following all proper notice, but in no event later than 90 days from the date of that 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 the performance of this chapter, the grantee's services, and the proposed new rates.
      (3)   Within 90 days after hearing, the 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.
      (4)   If the Council fails to act within 6 months of the date of the grantee's petition pursuant to division (1) above, 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 those provisional rates and shall be obliged for a period of up to 6 months thereafter to refund the amount by which those provisional rates exceed the rates ultimately established by the Council.  On request by the Council, the grantee shall provide a bond or other reasonable surety in an amount not to exceed the previously existing rates to ensure that possible refunds due under this division shall be promptly made.
      (5)   The criteria for the 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 a fair return on all invested capital, all assuming efficient and economical management.  The Council and the grantee both recognize that appropriate models and methods for rate regulation of cable are in an evolutionary period and intend that the Council should be guided by the body of law and precedents which will be developing over time.  Until more precise standards are thereby developed and absent special showings to the contrary, the Council and the grantee agree that rate changes not exceeding changes from the date hereof in any, some, or all of the indicators appearing below, shall be considered fair and reasonable provided that the grantee shall have made a reasonably adequate showing of the applicability of that indicator to the rate issue at hand.
         (a)   The Handy-Whitman Cost Index of Total Distribution Plant now listed on Line No. 38, for the North Central Region, which includes Ohio.
         (b)   The arithmetic average of monthly, single-family subscriber rates for the Ohio Cable Television Systems.
         (c)   Any other reputable index or indicator generally recognized as being apposite to cable television rates.
   (C)   Rates for other than basic subscriber service.  At least 90 days in advance of the offering of any services or equipment other than basic subscriber service, the grantee shall file with the Council a schedule of the rates and charges and the rules relating to such other services and equipment and shall not alter the same on less than 90 days' notice and only in accordance with the then applicable rules and regulations of the FCC and other agencies of competent jurisdiction.  If, at any time, applicable federal or state law would permit Council regulation of those rates in accordance with the procedures in division (B), such regulation shall be authorized hereunder.
   (D)   All 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 like category or class.  Nothing in the foregoing shall be deemed to prevent the grantee from establishing the following:
      (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 a bona fide credit problem;
      (3)   Special schedules of rates and charges for service to premises in annexed areas not meeting the density standards established in § 111.06, provided that the same are not inconsistent with applicable FCC rules and regulations; or
      (4)   Separate rates for commercial and noncommercial users of access channels.
   (E)   Free connection.  The grantee shall furnish, without charge, 1 connection for each existing public building, as listed on Appendix A; provided that such public buildings are located within areas served by the system and shall furnish, without charge, regular service for such connections so long as such system remains in operation in the area.  This provision also applies to any future public building constructed or purchased in the franchise area.  Any school, so listed, or added, may install at its expense, but not to exceed the grantee's actual cost for such installation, such additional connections for classroom purposes as it desires, provided that such connections shall not interfere with the operation of the system, and such additional connections also shall be without charge for regular service.
   (F)   Disconnection.  Except as otherwise provided by the Council, there shall be no charge for the disconnection of any installation or outlet.  If any 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, provided, however, that such disconnection shall not be effected until 45 days after the due date of that delinquent fee or charge and shall include 5 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 payment of a reconnection charge, the grantee shall promptly reinstate the subscriber's cable service.
   (G)   Franchise fee.
      (1)   As consideration for the franchise granted herein, the grantee shall pay to the city, as a minimum, an amount equal to 3% of the grantee's gross annual receipts.
      (2)   In the event that the law, in the future, permits some larger basis for computing this fee, this Council shall, at its election, be entitled to collect additional monies upon 60 days' prior written notice to the grantee.
      (3)   The Council shall utilize franchise fees as necessary, to defray the costs of local regulation of the grantee, to support the development of the access channels and generally to encourage development of the system.
      (4)   Payments due under this provision shall be payable twice each calendar year on a schedule to be determined by the City Manager.  Each such payment shall be accompanied by a report, certified by an officer of the grantee, showing the basis for the computation thereof.
      (5)   No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, and all amounts paid shall be subject to audit and recomputation by the Council for a period of 1 year after receipt thereof.  In the event that recomputation results in additional fees owed, such amount shall be subject to a 10% per annum interest charge.
      (6)   Nothing in this section shall be interpreted as relieving the grantee of its liability for other properly applicable local taxes.
   (H)   Franchise award fee.  There shall be imposed a 1 time franchise award fee to be paid to the city by the grantee within 45 days of official notification that a franchise has been awarded.  This fee is intended to defray the clerical, printing, consulting, legal, and other costs associated with the awarding of a franchise under the authority of this chapter.  The amount of the fee is established as $5,000, or the actual costs of these services, as determined by the city, whichever amount is less.
(1974 Code, § 111.09)  (Ord. 38-79, passed 7-16-1979)