Chapter 5.15
CABLE TELEVISION SERVICE REGULATION
Sections:
5.15.020 Regulation consistent with federal law.
5.15.040 Initial review of basic cable rates.
5.15.050 Review of request for increase in basic service rates and charges.
5.15.060 Automatic rate adjustments.
5.15.010 Purpose.
The city of Port Townsend has determined that it is in the public interest to become a certified franchising authority for the benefit of its citizens, under the authority of the 1992 Cable Act. (Ord. 2378 § 1, 1993).
5.15.020 Regulation consistent with federal law.
A. The city will follow the FCC rate regulations consistent with the Cable Act of 1992, as presently constituted or as may be subsequently amended, in its regulation of the basic service rates and charges of Summit Communications, Inc., and any other cable television system operating in the city, notwithstanding any different or inconsistent provisions in the applicable franchise agreement(s).
B. The mayor or his or her designee is authorized to execute on behalf of the city and file with the FCC such certification forms or other instruments as have been, are now or may hereafter be required by the FCC rate regulations to enable the city to regulate basic service rates and charges. (Ord. 2378 § 1, 1993).
5.15.030 Definitions.
The city adopts the definitions of terms as set forth in the 1992 Cable Act and FCC rate regulations by reference, as now constituted or hereafter amended, except it adds the following definition:
“Cable operator” means any person or group of persons:
1. Who provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such cable system; or
2. Who otherwise controls or is responsible for, through any arrangement, the management and operation of such a cable system.
In this chapter, Summit Communications, Inc., and all other cable television franchise holders operating in the city in the future, shall be collectively referred to as “the cable operator,” unless specifically stated otherwise. (Ord. 2378 § 1, 1993).
5.15.040 Initial review of basic cable rates.
A. Notice. Upon the adoption of the ordinance codified in this chapter and the certification of the city by the FCC, the city shall immediately notify the cable operator by certified mail, return receipt requested, that the city intends to regulate subscriber rates charged for the basic service tier and charges as authorized by the Cable Act of 1992.
B. Cable Operator Response. Within 30 days of receiving notice from the city, the cable operator shall file with the city its current rates for basic service and charges and any supporting material concerning the reasonableness of its rates, in accordance with the FCC rate regulations.
C. Expedited Determination and Public Hearing.
1. Unless it elects to proceed under subsection D of this section, the city shall hold a public hearing within 30 days of the city’s receipt of the request for rate review of basic service and charges, at which interested persons may testify and/or shall allow interested persons to submit written comments to the city clerk-treasurer prior to the scheduled hearing.
2. Public notice of the hearing will be given by advertisement once in the official newspaper of the city. The city may give notice of the public hearing on the basic service rates and charges prior to actual receipt of the cable operator’s rate schedule in order to meet the 30-day deadline of subsection C.1 of this section.
3. If the city council takes no action within 30 days from the date the cable operator filed its basic service rates and charges with the city, and has not availed itself of the additional 90 or 150 days permitted in subsection D of this section, the proposed rates will continue in effect.
D. Extended Review Period.
1. If the city council is unable to determine whether the rates in issue 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 shall, within 30 days from the date the cable operator filed its basic service rates and charges with the city, issue a brief order notifying the cable operator that it is invoking the following additional periods of time to make a final determination:
a. Ninety 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 days if the cable operator has submitted a cost-of-service showing seeking to justify a rate above the applicable benchmark.
2. During the extended review period and before taking action on the proposed rate, the city council shall hold at least one public hearing, at which interested persons may express their views by testifying at the hearing, or by submitting written comments to the city clerk-treasurer prior to the scheduled hearing. Public notice of the hearing will be given by advertisement once in the official newspaper of the city.
3. If the city council has taken no action within the 90-day or 150-day period, then the proposed rates will go into effect, or existing rates will remain in effect, subject to refunds in accordance with the FCC rate regulations if the city subsequently issues a written decision disapproving any portion of such rates. To preserve its right to make a subsequent decision ordering refunds, the city must issue a brief written order by the expiration of the 90-day or 150-day period directing the cable operator to keep records of all amounts received by reason of the proposed rates and the identity of the subscriber accounts on whose behalf such amounts were paid.
E. Benchmark Analysis. If the cable operator submits its current basic 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 service rates and charges shall be established in accordance with the FCC rate regulations.
F. Cost-of-Service Showings. If the cable operator does not wish to reduce the rates to the permitted level, it shall have the opportunity to submit a cost-of-service showing in an attempt to justify an initial basic service rate above the FCC’s reasonable rate standard. The city council will review a cost-of-service submission pursuant to FCC standards for cost-of-service review, and may approve initial basic service rates above the benchmark or prescribe new basic service rates in accordance with the FCC regulations.
G. Decision.
1. After completion of its review of the cable operator’s proposed rates, the city council shall adopt its decision by formal resolution, with reasons stated, if it:
a. Disapproves an initial rate request for basic service or for associated equipment, installation and services, in whole or in part;
b. Disapproves a request for a rate increase, in whole or in part; or
c. Approves a request for a rate increase, in whole or in part, over the objections of interested parties.
The city shall give public notice of the written decision and the text of any written decision released to the public. A formal resolution may be adopted, but is not required, for approval of an unopposed existing or proposed rate for basic service rates and charges.
2. In accordance with the 1992 Cable Act and FCC rate regulations, if the city council determines that the proposed rates are unreasonable, it may:
a. Order rate reductions;
b. Prescribe a reasonable rate;
c. Order a rate refund; or
d. Impose fines or monetary forfeitures as permitted under state or local law.
H. Appeal. The city council’s decision concerning rates for the basic service rates and charges may be appealed to the FCC in accordance with applicable federal regulations. (Ord. 2378 § 1, 1993).
5.15.050 Review of request for increase in basic service rates and charges.
A. Notice. A cable operator who wishes to increase the rates for the basic service or associated equipment shall file a request with the city and notify all subscribers at least 30 days before the cable operator desires the increase to take effect. This notice may not be given more often than annually and not until at least one year after the determination of the initial basic service rates and charges.
B. Expedited Determination, Extended Review Period and Public Hearings.
1. The time limits and public notice and hearing provisions for initial and extended review as set forth in PTMC 5.15.040 will apply to any request for increase in basic service rates and charges are incorporated by reference, except that if the city council is unable to make a final determination concerning a requested rate increase within the extended time period, the cable operator may put the increase into effect, subject to subsequent refund if the city council later issues a decision disapproving any portion of the increase.
2. The city shall review the request for a rate increase in accordance with the FCC rate regulations. (Ord. 2378 § 1, 1993).
5.15.060 Automatic rate adjustments.
A. Annual Inflation Adjustment. The cable operator may make an annual inflation adjustment of its capped base, per-channel rate for basic cable service to reflect certain external cost factors to the extent allowed by the 1992 Cable Act and the FCC rate regulations.
B. Notification and Review. The cable operator shall notify the city at least 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 30 days of receiving notice of the increase, the increase may go into effect. (Ord. 2378 § 1, 1993).
5.15.070 Enforcement.
A. Refunds. The city may order the cable operator to refund to subscribers a portion of the previously paid rates under the following circumstances:
1. A portion of the previously paid rates have been determined to be in excess of the permitted basic service tier charge or above the actual cost of equipment; or
2. The cable operator has failed to comply with a valid rate order issued by the city.
B. Fines. If the cable operator fails to comply with a rate decision or refund order, the cable operator shall be subject to a fine of $500.00 for each day the cable operator fails to comply. (Ord. 2378 § 1, 1993).