§ 86.473. Initial review of basic cable rates.

(a)

Notice. Upon the effective date of the ordinance from which this article derives and the certification of the city by the FCC, the city will notify all cable operators in the city by certified mail, return receipt requested, that the city intends to regulate basic cable rates as authorized by the cable act.

(b)

Cable operator response. Within 30 days of receiving notice from the city, a cable operator shall file with the city its current rate for the basic service tier and associated equipment and any supporting material concerning the reasonableness of its rate.

(c)

Expedited determination and public hearing.

(1)

If the city council is able to expeditiously determine that the cable operator's basic cable rate is within the reasonable rate standard, as determined by the applicable benchmark, the city council will:

a.

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

b.

Act to approve the rate within 30 days from the date the cable operator filed its basic cable rate with the city.

(2)

If the city council takes no action within 30 days from the date the cable operator filed its basic cable rate with the city, the proposed rate will continue in effect.

(d)

Extended review period.

(1)

If the city council is unable to determine whether the rate in issue is within the reasonable rate standard based on the material before it, or if the cable operator submits a cost-of-service showing, the city council will adopt a resolution within 30 days from the date the cable operator filed its basic cable rate with the city invoking the following additional periods of time, as applicable, to make a final determination:

a.

Ninety days if the city council needs more time to ensure that a rate is within the reasonable rate standard; or

b.

One hundred fifty 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 90- or 150-day period, the city council will adopt a resolution at the end of the period requesting the cable operator to keep accurate account of all amounts received because of the proposed rate and on whose behalf the amounts are paid.

(e)

Public hearing. During the extended review period and before taking action on the proposed rate, the city council will hold at least one 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 proposed initial basic cable rate may present it verbally during the public hearing or may submit the objection in writing anytime before the end of the public hearing. In order for a verbal objection to be included in the minutes of the public hearing, the objector must provide the objector's name and address.

(g)

Benchmark analysis. If a cable operator submits its current basic cable rate as being in compliance with the reasonable rate standard, the city council will review the rate 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 rate shall be established as follows:

(1)

If the current basic cable rate is below the benchmark, that rate shall become the initial cable rate and the cable operator's rate will be capped at that level.

(2)

If the current basic cable rate exceeds the benchmark, the rate shall be the greater of the cable operator's per-channel rate on September 30, 1992, reduced by ten percent, 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 rate exceeds the benchmark, but the cable operator's per-channel rate was below the benchmark on September 30, 1992, the initial basic cable rate shall be the benchmark, adjusted for inflation.

(h)

Cost-of-service showings. If a cable operator does not wish to reduce the rate to the permitted level, the cable operator may submit a cost-of-service showing in an attempt to justify an initial basic cable rate above the reasonable rate standard. The city council will review a cost-of-service submission pursuant to FCC standards for cost-of-service review. The city council may approve an initial basic cable rate above the benchmark if the cable operator makes the necessary showing; however, a cost-of-service determination resulting in a rate below the benchmark or below the cable operator's September 30, 1992, rate minus ten percent, will prescribe the cable operator's new rate.

(i)

Decision.

(1)

Resolution. After completion of its review of the cable operator's proposed rates, the city council will adopt its decision by resolution. The decision will include one of the following:

a.

If the proposal is within the reasonable rate standard or is justified by a cost-of-service analysis, the city council will approve the initial basic cable rate proposed by the cable operator; or

b.

If the proposal is not within the reasonable rate standard and the cost-of-service analysis, if any, does not justify the proposed rates, the city council will establish an initial basic cable rate that is within the reasonable rate standard or that is justified by a cost-of-service analysis.

(2)

Rollbacks and refunds. If the city council determines that the initial basic cable rate as submitted exceeds the reasonable rate standard or that the cable operator's cost-of-service showing justifies a lower rate, the city council may order the rates reduced in accordance with subsection (g) or (h) of this section, as applicable. In addition, the city council may order the cable operator to pay refunds to subscribers of the excessive portion of the rate 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 will 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 the rate proposed by a cable operator is disapproved in whole or in part or if there were objections made by other parties to the proposed rate, the resolution must state the reasons for the decision. The city secretary will give public notice of the decision by publishing the caption of the resolution once in a newspaper of general circulation in the city.

(j)

Appeal. The city council's decision concerning a basic cable rate may be appealed to the FCC in accordance with applicable federal regulations.

(Code 1970, § 23-36)