§ 1005. Automatic rate adjustments.

A.

Annual inflation adjustment. In accordance with FCC regulations, the Cable Operator may adjust its capped base per Channel rate for the Basic Cable Service Tier annually by the final Gross National Product Price Index.

B.

Other external costs.

1.

FCC regulations allow the Cable Operator to increase its Basic Cable Service Rates automatically to reflect certain external cost factors to the extent that the increase in cost of those factors exceeds the Gross National Product Price Index. These factors include retransmission consent fees, programming costs, state and local taxes applicable to the provision of cable television service and costs of permit or franchise requirements. The total cost of an increase in a permit or franchise fee may be automatically added to the permitted per Channel charge for the Basic Cable Service Tier, without regard to its relation to the Gross National Product Price Index.

2.

For all categories of external costs other than retransmission consent and permit or franchise fees, the starting date for measuring changes in external costs for which the basic service per Channel rate may be adjusted shall be the date on which the Basic Cable Service Tier becomes subject to regulation or February 28, 1994, whichever occurs first. The permitted per channel charge may not be adjusted for costs of retransmission consent fees or changes in those fees incurred before October 6, 1994.

C.

Notification and review. The Cable Operator shall notify the City at least thirty (30) days in advance of a rate increase based on automatic adjustment items. The City shall review the increase to determine whether the item or items qualify as automatic adjustments. If the City makes no objection within thirty (30) days of receiving notice of the increase, the increase may go into effect.

(Ord. No. 18125)