§ 1002. Initial review of basic cable service rates.

A.

Notice. Upon the effective date of the Ordinance adopting this Chapter and certification of the City by the FCC to regulate Basic Cable Service Rates, the City shall immediately notify any Cable Operator in the City, by certified mail, return receipt requested, that the City intends to regulate Basic Cable Service Rates as authorized by the Cable Act.

B.

Cable operator response. Within thirty (30) days of receiving notice from the City a Cable Operator shall file with the City its current Basic Cable Service Rates and any supporting material concerning the reasonableness of those rates.

C.

Expedited determination and public hearing.

1.

If the City Council is able to determine that the Cable Operator's Basic Cable Service Rates are within the FCC's Reasonable Rate Standard, as determined by the applicable Benchmark, the City Council shall:

a.

Hold a public hearing at which interested persons may express their views; and

b.

Act to approve the current Basic Cable Service Rates within thirty (30) days from the date the Cable Operator filed its Basic Cable Service Rates with the City.

2.

If the City Council takes no action within thirty (30) days from the date the Cable Operator filed its Basic Cable Service Rates with the City, the current rates shall continue in effect.

D.

Extended review period.

1.

If the City Council is unable to determine within thirty (30) days from the date the Cable Operator filed its Basic Cable Service Rates with the City whether the Cable Operator's Basic Cable Service Rates are within the FCC's Reasonable Rate Standard based on the material before it, or if the Cable Operator submits a Cost-of-Service Showing, the City Council may, by adoption of a formal resolution, invoke the following additional periods of time, as applicable, to make a final determination:

a.

Ninety (90) days, if the City Council needs more time to ensure that a rate is within the FCC's Reasonable Rate Standard; or

b.

One hundred fifty (150) days, if the Cable Operator has submitted a Cost-of-Service Showing seeking to justify a rate above the applicable Benchmark.

2.

If the City Council has not made a decision within the ninety (90) or one hundred fifty (150) day period, the City Council shall issue a brief written order at the end of the period requesting the Cable Operator to keep accurate account of all amounts received by reason of the rate and on whose behalf the amounts are paid.

E.

Public Hearing. Before taking action on the current Basic Cable Service Rate, the City Council shall hold at least one (1) public hearing at which interested persons may express their views and record objections.

F.

Objections. An interested person who wishes to make an objection to the current Basic Cable Service Rate may request the Council Secretary record the objection during the public hearing or may submit the objection in writing anytime before the decision resolution is adopted. In order for an objection to be made part of the record, the objector shall provide the Council Secretary with the objector's name and address.

G.

Benchmark analysis. If a Cable Operator submits its current Basic Cable Service Rate schedule as being in compliance with the FCC's Reasonable Rate Standard, the City Council shall review the rates using the Benchmark analysis, in accordance with the standard form authorized by the FCC. Based on the City Council's findings, the Initial Basic Cable Service Rates shall be established as follows:

1.

If the current Basic Cable Service Rates are equal to or below the Benchmark, those rates shall become the Initial Basic Cable Service Rates and the Cable Operator's rates shall be capped at that level.

2.

If the current Basic Cable Service Rates exceed the Benchmark, the rates shall be the greater of the Cable Operator's per Channel rate on September 30, 1992, reduced by ten percent (10%), or the applicable Benchmark, adjusted for inflation and any change in the number of Channels occurring between September 30, 1992, and the initial date of regulation.

3.

If the current Basic Cable Service Rates exceed the Benchmark, but the Cable Operator's per Channel rate was below the Benchmark on September 30, 1992, the Initial Basic Cable Service Rate shall be the Benchmark, adjusted for inflation.

H.

Cost-of-service showings. If a Cable Operator does not wish to reduce the rates to the permitted level, the Cable Operator shall have the opportunity to submit a Cost-of-Service Showing in an attempt to justify an Initial Basic Cable Service Rates above the FCC's Reasonable Rate Standard. The City Council shall review a Cost-of-Service submission pursuant to FCC standards for review. The City Council may approve Initial Basic Cable Service Rates above the Benchmark if the Cable Operator makes the necessary showing; however, a Cost-of-Service determination resulting in rates below the Benchmark or below the Cable Operator's September 30, 1992, rates minus ten percent (10%), shall prescribe the Cable Operator's new rates.

I.

Decision.

1.

By formal resolution. After completion of its review of the Cable Operator's current rates, the City Council shall adopt its decision by formal resolution. The decision shall include one (1) of the following:

a.

If the proposal is within the FCC's Reasonable Rate Standard or is justified by a Cost-of-Service analysis, the City Council shall approve the Initial Basic Cable Service Rates proposed by the Cable Operator; or

b.

If the proposal is not within the FCC's Reasonable Rate Standard and the Cost-of-Service analysis, if any, does not justify the current rates, the City Council shall establish Initial Basic Cable Service Rates that are within the FCC's Reasonable Rate Standard or that are justified by a Cost-of-Service analysis.

2.

Rollbacks and refunds. If the City Council determines that the current Basic Cable Service Rates, as submitted, exceed the Reasonable Rate Standard or that the Cable Operator's Cost-of-Service Showing justifies lower rates, the City Council may order the rates reduced in accordance with subsection G. or H. above, as applicable. In addition, the City Council may order the Cable Operator to pay to subscribers refunds of the excessive portion of the rates, with interest (computed at applicable rates published by the Internal Revenue Service for tax refunds and additional tax payments), retroactive to September 1, 1993. The method for paying any refund and the interest rate shall be in accordance with FCC regulations as directed in the City Council's decision resolution.

3.

Statement of reasons for decision and public notice. If current Basic Cable Service Rates of a Cable Operator are disapproved in whole or in part, or if there were objections made by other parties to the current rates, the resolution shall state the reasons for the decision and the City Council shall give public notice of its decision by publication of the Council's resolution, once, in a newspaper of general circulation within the corporate limits of the City.

J.

Appeal. The City Council's decision concerning rates for the Basic Cable Service Tier or associated equipment, may be appealed to the FCC in accordance with applicable federal regulations.

(Ord. No. 18125)