Chapter 5.40
REGULATION OF BASIC SERVICE RATES OF THE CABLE FRANCHISE
Sections:
5.40.010 Definitions of generally applicable terms.
5.40.020 Designation of staff contact.
5.40.030 Adoption of FCC regulations.
5.40.040 Rates subject to regulations.
5.40.050 Initial application.
5.40.060 Future rate increases.
5.40.070 Rate decisions.
5.40.080 Notification of decision.
5.40.090 Notification of filing and hearing.
5.40.100 Hearing procedure—Benchmark rate.
5.40.110 Notice and hearing procedures—Cost of service showing.
5.40.120 Refunds.
5.40.140 Appeals.
5.40.010 Definitions of generally applicable terms.
“Benchmark rate” means a target (benchmark) rate established by the FCC and currently applicable to a franchise operating in the city.
“Company” means any individual company or company holding a franchise for the operation of a cable television system within the city limits.
“Equipment” is defined to include converter boxes, remote control units, connections for additional outlets and cable home wiring.
“FCC” means the Federal Communications Commission.
“FCC regulation” means any duly established federal regulation covering the activities of a cable television franchise and its relation with the city. Such term shall include at a minimum the final rules promulgated as MM Docket 92-266, FCC 93-177 codified as 47 CFR Section 76.900 through 76.985 as the same exist or are hereinafter amended.
“Franchise” means all ordinances, regulations, laws and franchise documents governing the activities of a company authorized by the city to provide cable television services in the city. (Ord. 788 § 1 (part), 1994)
5.40.020 Designation of staff contact.
In accordance with the FCC rate regulations, the mayor has designated the city administrator as the appropriate staff person to execute on behalf of the city and file with the FCC such certification forms or other instruments that are now or may hereafter be required pursuant to the FCC regulations in order to enable the city to regulate basic service rates and other related charges. (Ord. 788 § 1 (part), 1994)
5.40.030 Adoption of FCC regulations.
The regulation of basic service rates and charges of the company shall be undertaken in accordance with adopted FCC rate regulations as the same exist or are hereafter amended. Such regulations are generally codified at 47 Code Federal Register Section 76.900 through 76.985. In the event of conflict between any city procedure or these ordinances and the regulations, such regulations shall control. (Ord. 788 § 1 (part), 1994)
5.40.040 Rates subject to regulations.
The city council has been certified to regulate basic service rates which include the rate for service for the provision of all local broadcast signals as well as the public, educational and governmental access channels required pursuant to FCC regulation and any other programming services that the company chooses to include in its basic service rate along with:
A. All equipment and installation used to receive basic service, even if that equipment is also used to receive other regulated and/or unregulated services;
B. The installation and monthly use of connections for additional receivers. (Ord. 788 § 1 (part), 1994)
5.40.050 Initial application.
Following the written notice provided to the company, the cable operator shall have thirty days after receipt of such notice to file its rate justification with the franchising authority on FCC Form 393. The initial rate schedule shown on Form 393 shall be considered by the city council within thirty days after receipt of the form. The council may make a rate determination or issue a brief order within the thirty-day period notifying the company that the city council requires additional time to make a rate decision. If the city council requires additional time to make its rate decision, it may have up to ninety additional days to review a rate request based upon FCC benchmark regulation and up to one hundred and fifty additional days to review a cost-of-service showing. (Ord. 788 § 1 (part), 1994)
5.40.060 Future rate increases.
Future requests for rate increases shall be considered in a timely fashion in accordance with FCC regulation. (Ord. 788 § 1 (part), 1994)
5.40.070 Rate decisions.
If the city council determines that any proposed rate is unreasonable, it may:
A. Order a reduction in such rate or rates;
B. Prescribe a reasonable rate;
C. Order a rate refund; or
D. Impose fines or monetary forfeiture to the extent permitted under state law.
Such decisions shall be based solely on the record before the city council. (Ord. 788 § 1 (part), 1994)
5.40.080 Notification of decision.
The city council’s decision shall be in writing mailed to the company and interested party who has filed a written objection and shall be posted and otherwise made available to the public through the office of the city clerk whenever the city council:
A. Disapproves an initial rate for basic service or for related equipment or installation of services;
B. Disapproves a request for a rate increase; or
C. Approves a request for an increase over the objections of an interested party.
A written decision shall not be required for approval of an unopposed existing or proposed rate for basic service or equipment. (Ord. 788 § 1 (part), 1994)
5.40.090 Notification of filing and hearing.
Upon receipt of a request for establishment of initial rate, benchmark rate, or future rate increases, the city clerk shall notify the city council of the request. The council shall set a public hearing on the request to be held at least thirty days from the date the council acts to set the hearing. The city clerk shall cause notice of the filing and the upcoming hearing to be published in the city’s official newspaper at least twenty days prior to the hearing. Copies of the filing shall be maintained in the office of the city clerk. Any interested party may file a written objection to the proposed increase, provided such written objections shall be filed in the office of the city clerk ten calendar days prior to the date set for hearing and the notice of the hearing shall so state. In addition to the hearing notice to be published by the city clerk, the company shall also provide a notification of the pending rate increase request on its public access or other channel devoted to public notification. (Ord. 788 § 1 (part), 1994)
5.40.100 Hearing procedure—Benchmark rate.
Whenever the company shall propose adoption of an initial rate, benchmark rate or future rate increases, the following procedures shall apply to the public hearing:
A. Formal rules of evidence shall not apply to the public hearing and it shall be conducted in accordance with normal council hearing procedures. Council shall afford the company and all interested persons a reasonable opportunity to be heard.
B. If the cable company has submitted a rate schedule based on benchmark formulas and calculations, the city council may not prescribe a rate lower than that permitted in the FCC Benchmark Rate Tables or more than ten percent less than the cable company’s September 30, 1992 per channel rate, whichever is higher.
C. The cable company shall first make its presentation, followed by the presentation of the city staff entering its analysis and recommendations, if any. Then all interested parties who have filed an objection to the rate increase shall be heard. Finally, members of the public shall be heard. The staff should be given a brief opportunity to respond and the company may conclude with rebuttal, addressing new information raised by the staff, interested parties or the public. The mayor shall set reasonable time limits for the presentation of the respective parties; provided, that the time established for individual public comments may be limited to three minutes per person. (Ord. 788 § 1 (part), 1994)
5.40.110 Notice and hearing procedures—Cost of service showing.
The general hearing procedures outlined in Section 5.40.100 shall apply to an application by the company for a basic service rate above the benchmark rate; provided, that:
A. The company shall submit a cost-of-service showing prepared in accordance with FCC regulations sufficient to support a finding that the rates are reasonable. It shall make ten copies available in conjunction with its initial application for public inspection and use at the hearing.
B. If the cable company submits a cost-of-service showing, that showing supersedes any benchmark/rollback provisions established by the FCC. The city council may prescribe whatever rate it finds justified by the cost-of-service showing, utilizing generally accepted accounting principles, utility rate regulation principles, and the review of criteria in 47 CFR Section 76.922 to 76.925 as the same exist or are hereafter amended, even if that rate is below the system’s benchmark and more than ten percent below the system’s September 30, 1992 rates. (Ord. 788 § 1 (part), 1994)
5.40.120 Refunds.
The city may order the company to refund to subscribers that portion of previously paid rates determined to be unreasonable. However, the company’s liability for refunds is generally limited to a one-year period and shall not go beyond September 1, 1993, the effective date of the FCC rules. (Ord. 788 § 1 (part), 1994)
5.40.140 Appeals.
An appeal from any order or decision of the city council regarding any rate increase shall be solely to the FCC pursuant to 47 CFR Section 76.944 as the same exists or is hereafter amended. Such appeal shall be filed within thirty days. Appeals from other decisions of the city council regarding the franchise shall be filed in the Snohomish County superior court within ten business days of the date notice of decision is issued. Nothing herein shall be interpreted to limit the right of any citizen or the city to file a complaint with the FCC regarding any company activity in accordance with 47 CFR Section 76.953 et seq. (Ord. 788 § 1 (part), 1994)