HomeMy WebLinkAboutORD 1994-011 ORDINANCE NO. 94-11
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AMENDING THE CODE OF
ORDINANCES CHAPTER 25 UTILITIES AND SERVICES BY
THE ADDITION OF A NEW ARTICLE VI ENTITLED CABLE
TELEVISION RATE REGULATIONS; PROVIDING FOR THE
REGULATION OF RATES CHARGED BY CABLE TELEVISION
OPERATORS WITHIN THE CITY OF GRAPEVINE, TEXAS
FOR THE BASIC SERVICE TIER AND RELATED EQUIPMENT
AND INSTALLATION CHARGES, IN ACCORDANCE WITH
THE CABLE TELEVISION CONSUMER PROTECTION AND
COMPETITION ACT OF 1992, PUBLIC LAW NO. 102-385;
PROVIDING DEFINITIONS; REQUIRING NOTICE OF BASIC
TIER AVAILABILITY; REQUIRING CERTAIN INFORMATION
ON CABLE MONTHLY BILLS; PROHIBITING NEGATIVE
OPTION BILLING; PROVIDING FORMULA FOR
CALCULATION OF BASIC SERVICE TIER RATES AND
EQUIPMENT AND INSTALLATION CHARGES; PROVIDING
FOR COST ACCOUNTING AND COST ALLOCATION
REQUIREMENTS; PROVIDING FOR PASS-THROUGH OF
COSTS OF SATISFYING FRANCHISE REQUIREMENTS;
PROVIDING GUIDELINES FOR CERTAIN CUSTOMER
CHARGES; REQUIRING NOTICE OF PROPOSED RATE
INCREASES; PROVIDING FOR REVIEW OF BASIC CABLE
SERVICE AND EQUIPMENT RATES; PROVIDING
PROTECTION FOR PROPRIETARY INFORMATION;
PLACING BURDEN OF PROOF ON THE CABLE OPERATOR;
PROVIDING FOR WRITTEN DECISION BY THE CITY;
PROVIDING FOR POSSIBLE RATE REDUCTIONS AND
REFUNDS; PROVIDING A SEVERABILITY CLAUSE;
DECLARING AN EMERGENCY AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the Cable Television Consumer Protection and Competition Act of
� 1992, Public Law No. 102-385 ("Cable Act of 1992") became law on October 5,
1992; and
WHEREAS, the Cable Act of 1992 provides that municipalities may regulate the
rates charged by cable operators for the basic service tier and related equipment
charges to subscribers within the corporate limits of the municipality if the operator
is not subject to effective competition; and
�, ::� WHEREAS, the City of Grapevine, in accordance with the Cable Act of 1992
and regulations adopted thereunder by the Federal Communications Commission (the
"FCC"), filed the appropriate documents with the FCC to obtain certification to
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regulate the basic service tier rates and related equipment and installation charges of
all cable operators within the City; and
,,,�, WHEREAS, in order to be able to regulate the basic service tier rates and related
equipment and installation charges, it is necessary for the City to adopt the following
regulations in conformance with the regulations of the FCC; and
WHEREAS, it is the intent of the City to regulate cable TV operators within the
City to the full extent authorized by the Cable Act of 1992.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1 . That the Grapevine Code of Ordinances is hereby amended by
amending Chapter 25 Utilities and Services by the addition of a new Article VI entitled
Cable Television Rate Regulations to read as shown on Exhibit "A", attached hereto
and made a part hereof.
Section 2. If any section, article, paragraph, sentence, clause, phrase or word
in this ordinance, or application thereto, any person or circumstance is held invalid or
"` " unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this ordinance; and the City Council hereby
� � declares it would have passed such remaining portions of the ordinance despite such
invalidity, which remaining portions shall remain in full force and effect.
Section 3. The fact that the present ordinances and regulations of the City of
Grapevine do not adequately provide for cable rate regulation within the corporate
limits of the City of Grapevine and the present ordinances and regulations of the City
of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals,
peace and general welfare of the public creates an emergency which requires that this
ordinance become effective from and after the date of its passage, and it is
accordingly so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 1 st of February , 1994.
APPROVED:
�
'�. Ted R. Ware
Mayor Pro Tem
ORD. NO. gq-�� 2
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ATTEST:
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Lin Huff
City Secretary
APPROVED AS TO FORM:
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John F. Boyle, Jr.
City Attorney
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ORD. N0. 94-11 3
EXHIBIT_' a . TO �'� Q�' ��
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Chapter 25
�- - UTILITIES AND SERVICES
ARTICLE VI. CABLE TELEVISION RATE REGULATIONS
DIVISION 1 . GENERAL PROVISIONS
Sec. 25-150. Cable television rate regulations.
The following regulations are hereby adopted and shall be known as the Cable
Television Rate Regulations for the City of Grapevine, Texas.
Sec. 25-151. Definitions.
Unless otherwise apparent, the following definitions shall apply in this article:
Affiliated programmer: An affiliated programmer is a programmer with an
� ownership interest of 5 percent (5%) or more, including general partnership interest,
direct ownership interests, and stock interests in a corporation or other entity where
such stockholders are officers or directors or who directly or indirectly own 5 percent
or more of the outstanding stock, whether voting or nonvoting. Such interests include
limited partnership interests of 5 percent (5%) or greater.
Basic service tier: The basic service tier shall, at a minimum, include all signals
of local domestic television broadcast stations as defined by the FCC provided to any
subscriber (except a signal secondarily transmitted by satellite carrier beyond the local
service area of such station, regardless of how such signat is ultimately received by
the cable systeml, any public educational, and governmental programming required
by the franchise to be carried on the basic tier, and any additional video programming
signals or service added to the basic tier by the cable operator.
Cable operator or operator: Cable operator means any person or group of
persons:
(1) Who provides cable service, video signal transmission, video services or
any other multi-channel video programming distributor over a cable
system within the City under a franchise, permit, license or any other
authorization issued by the City, and who 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,
�' 'v the management and operation of such a cable system.
EXHIBIT� TO �� Q����
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' Cab/e programming service: Cable programming service includes any video
programming provided over a cable system, regardless of service tier, including
installation of rental of equipment used for the receipt of such video programming,
` other than:
(1) Video programming carried on the basic service tier as defined in this
section;
(2) Video programming offered on a pay-per-channel or pay-per-program
basis; or
(3) A combination of multiple channels of pay-per-channel or pay-per-
program video programming offered on a multiplexed or time-shifted
basis so long as the combined service:
(a) Consists of commonly-identified video programming; and
(b) Is not bundled with any regulated tier or service
Cable system: Cable system means a facility, utilizing right-of-way, easement
or other public ways within the City of Grapevine, consisting of a set of closed
transmission paths and associated signal generation, reception, and control equipment
that is designed to provide cable service which includes video programming and which
is provided to multiple subscribers within a community.
City: The City of Grapevine, Texas.
Commission or FCC: The Federal Communications Commission.
Sec. 25-152 Information to be provided by cable operator on monthly subscriber bills.
A cable operator must provide the following information to subscribers on
monthly bills:
(1) A statement substantially the same as the following:
The basic service tier rates and retated equipment and related equipment
and installation charges are regulated by the City pursuant to FCC
regulations.
If you have questions or comments, regarding basic service tiers rates,
'�`'" call or write the City of Grapevine at:
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EXHIBIT � TO ��`�� ���(�
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:x° - City of Grapevine
Internal Services Department
P.O. Box 95104
Grapevine, Texas 76099
(817) 481-0402
i2) The FCC community unit identifier for the cable system.
Sec. 25-153. Negative option billing.
A cable operator shall not charge a subscriber for any service or equipment that
the subscriber has not affirmatively requested by name. This provision, however,
shall not preclude the addition or deletion of a specific program from a service
offering, the addition or deletion of specific channels from an existing tier of service,
or the restructuring or division of existing tiers of service that do not result in a
fundamental change in the nature of an existing service or tier of service, provided
that such change is otherwise consistent with applicable regulations. A subscriber's
failure to refuse a cable operator's proposal to p�ovide such service or equipment is
not an affirmative request for service or equipment. A subscriber's affirmative request
for service or equipment may be made orally or in writing.
Sec. 25-154. Rates for the basic service tier.
A. Basic service tier rates. Basic service tier rates are subject to regulation by the
City in order to assure that they are in compliance with the requirements of 47 U.S.C.
§ 543, also known as the "Cable Television Consumer Protection and Competition Act
of 1992" or the "1992 Cable Act." Rates that are demonstrated, in accordance with
this ordinance, not to exceed the "Initial Permitted Per Channel Charge" or the
"Subsequent Permitted Per Channel Charge" as described below, or the equipment
charges as specified in Section 25-155, will be accepted as in compliance. The
maximum monthly charge per subscriber for the basic service tier offered by a cable
operator shall consist of a permitted per channel charge multiplied by the number of
channels on the tire, plus a charge for franchise fees. The maximum monthly charges
for the basic service tier shall not include any charges for equipment or installations.
Charges for equipment and installations are to be calculated separately pursuant to
Section 25-155 of this ordinance.
B. Initial permitted per channel charge.
(1) For purposes of this section, the initial date of regulation for the basic
�'°ry service tier shall be the date on which the City gives written notice to
the cable operator that:
'��"' a. The City has been certified by the Commission to regulate rates
for the basic service tier; and
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° b. This ordinance has been adopted by the City.
(2) For purposes of this section, rates "in effect on the initial date of
� ~ regulation" or "in effective on September 30, 1992," shall be defined as
the rates charged to subscribers for service received on that respective
date.
(3) The permitted per channel charge on the initial date of regulation shall
be, at the election of the cable operator, either:
a. A charge determined pursuant to a cost-of-service proceeding; or
b. The charge specified in subparagraphs 1 , 2, or 3 of this
paragraph, as applicable:
1 . If the operator's per channel charge for the basic service
tier and equipment in effect on the date of initial regulation
is equal to or below the benchmark per channel charge, as
adjusted forward for inflation from September 30, 1992, to
the date of initial regulation, then the permitted per channel
charge shall be the per channel charge in effect on the date
of initial regulation, when calculating the permitted per
channel charge after taking out any equipment charges.
2. If:
(i) The operator's per channel charge for the basic
service tier and equipment in effect on the date of
initial regulation is above the benchmark per channel
charge, as adjusted forward for inflation from
September 30, 1992, until the initial date of
regulation, and;
(ii) The operator's per channel charge for basic service
tier and equipment in effect on September 30, 1992,
was above the benchmark per channel charge, is
nine-tenths of the per channel charge in effect on
September 30, 1992, but no lower than the
benchmark per channel charge, additionally adjusted
for inflation from September 30, 1992, to the initial
date of regulation, for equipment and for any
changes in the number of channels offered on the
° ar basic service tiers.
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3. If:
(i) The operator's per channei charge for the basic
t service tier and equipment in effect on the date of
initial regulation is above the benchmark per channel
charge, as adjusted forward for inflation from
September 30, 1992, until the initial date of
regulation, and;
(ii) The operator's per channel charge for the basic
service tier and equipment in effect on September
30, 1992, was below the benchmark per channel
charge, then the permitted per channel charge is the
benchmark rate per channel adjusted for inflation
from September 30, 1992, to the initial date of
regulation, for equipment, and for any changes in the
number of channels offered on the basic service tier.
C. Subsequent permitted per channel charge. After the initial date of regulation, the
permitted channel charge for the basic service tier shall be, at the election of the cable
operator, either:
(1) A per channel rate determined pursuant to a cost-of-service showing, or:
(2) The prior permitted per channel charge previously approved by the City,
adjusted for inflation and exte�nal costs in accordance with the price cap
requirements set fo�th in paragraph D of this section.
D. Price cap requirements.
(1 ) Inflation adjustments. Permitted per channel charges for the basic
service tier may be adjusted periodically on account of inflation.
Adjustments to permitted per channel charges on account of inflation
shall be based on changes in the Gross National Product Price Index
("GNP-PI") published by the Bureau of Economic Analysis of the United
States Department of Commerce.
(2) External costs. Permitted per channel charges for the basic service tier
may also be adjusted for changes in external costs measured on a per
channel per subscriber basis. To the extent external cost increases are
greater or less than the GNP-PI for the relevant period, the per channel
charge will be adjusted accordingly. Per channel charges may not be
� ° increased if external costs other than franchise fees increase at a rate
less than inflation. Permitted per channel charges also shall be decreased
on account of external costs to the extent such cost decrease from
�'� previous levels.
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°° a. Categories. External costs shali consist of costs in the following
categories:
� W 1 . State and local taxes applicable to provision of cable
television service;
2. Franchise fees;
3. Costs of complying with franchise requirements, including
costs of providing public, educational, and governmental
access channels as required by the City.
4. Retransmission consent fees (increases shall only be
permitted in accordance with federal law and no increase
in charges shall be considered until October 6, 1994,); and
5. Programming costs as permitted by federal law.
b. The permitted per channel charge for the basic service tier shall be
adjusted on account of programming cost and retransmission
consent fees only for programming or broadcast signals offered on
,� that tier.
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c. The permitted per channel charge shall not be adjusted for costs
of retransmission consent fees or changes in those fees incurred
prior to October 6, 1994. Thus, external treatment for
retransmission consent costs will commence only after October 6,
1994, and the permitted pass-throughs will be limited to the new
or additional fees beyond those already in effect October 6, 1994.
d. The starting date for adjustments on account of external costs for
the basic service tier shall be the initial date of regulation occurs
on or after 180 days from September 1, 1993.
e. Changes in franchise fees shall not result in an adjustment to
permitted per channel charges, but rather shall be calculated
separately as part of the maximum monthly charge per subscriber
for the basic service tier.
f. Adjustments to permitted per channel charges on account of
increases in costs or programming obtained from affiliated
programmers shall be the lesser of actual increases or the previous
�"� permitted rate level increased by the amount of inflation.
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� - g. Adjustments to permitted per channel charges on account of
increases in costs of programming shall be further adjusted to
reflect any revenues received by the operator from the
� � programmer.
Sec. 25-155. Rates for equipment and installation used to receive the basic service
tier.
A. Scope. The equipment regulated under this section consists of all equipment in
a subscriber's location that is used to receive the basic service tier, regardless of
whether such equipment is additionally used to �eceive other tiers of regulated
programming service and/or unregulated service. Such equipment shall include, but
is not limited to:
{1) Convertor boxes;
(2) Remote control units;
(3) Connections for additional television receivers; and
(4) Other cable home wiring.
Subscriber charges for such equipment shall not exceed charges based
* on actual costs in accordance with the requirements set forth below.
B. Unbundling. A cable operator shall establish rates for remote control units,
convertor boxes, other customer equipment, installation, and additional connections
separate from rates for basic service tier. In addition, the rates for such equipment and
installation shall be unbundled one from the other.
C. Equipment basket. A cable operator shall establish an Equipment Basket, which
will include all costs associated with providing customer equipment and installation
under this section. Equipment Basket costs shall be limited to the direct and indirect
material and labor costs of providing , leasing, installing, repairing and servicing
customer equipment, as determined in accordance with the cost accounting and cost
allocation requirements of Section 25-156. The Equipment Basket shall not include
general administrative overhead including general marketing expenses. The Equipment
Basket may include a reasonable profit.
D. Hourly service charge. A cable operator shall establish charges for equipment and
installation using the Hourly Service Charge ("HSC") methodology. The HSC shall
^��"�� equal the operator's annual Equipment Basket costs, excluding the purchase cost of
customer equipment, divided by the total person hours involved in installing, repairing,
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and servicing customer equipment during the same period.
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� - The purchase cost of customer equipment shall include the cable operator's
invoice price plus all other costs incurred with respect to the equipment until the time
it is provided to the customer. The HSC calculated according to the following
� �° formula:
HSC = EB - CE
H
EB = annual Equipment Basket Cost;
CE = annual purchase cost of all customer
equipment; and
H = person hours involved in installing and
repairing equipment per year.
E. Installation charges. Installation charges shall be either:
(1 ) The HSC multiplied by the actual time spent on each individual
installation; or
� (2) The HSC multiplied by the average time spent on a specific type of
installation.
�` Under this option, there will be several averages: one for unwired,
another for prewired installations, one for installation of additional
connections at the time of initial installation, and one for installation of
additional connections after initial service installation. The operator may
develop over-average installation rates, such as one for installations
involving extra long drops.
F. Remote charges. Monthly charges for rental of a remote control unit shall consist
of the average annual unit purchase cost of the type of remote Ieased, including
acquisition price and incidental costs such as sales tax, financing and storage up to
the time it is provided to the customer, added to the product of the HSC times the
average number of hours annually repairing or servicing a remote, divided by 12 to
determine the monthly lease rate for a remote according to the following formula:
Monthly Charge = UCE + (HSC X HR)
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HR = average hours repaired per year; and
�� UCE = average annual unit cost of remote.
Separate charges shall be established for each
'"�"' significantly different type of remote control
unit.
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G. Other equipment charges. The monthly charges for rental of converter boxes and
other customer equipment shall be calculated in the same manner as for remote
control units. Separate charges shall be established for each significantly different
�°� type of convertor box and each significantly different type of other customer
equipment.
H. Additional connection charges. The costs of installation and monthly use of
additional connections shall be recovered as charges associated with the installation
and equipment cost categories, and at rate levels determined by the actual cost
methodology presented in the foregoing paragraphs E, F, and G of this section. An
operator may recover additional programming costs and the costs of signal boosters
on the customers premises, if any, associated with the additional connection as a
separate monthly unbundled charge for additional connections.
I. Charges for equipment sotd. A cable operator may sell customer premises
equipment to a subscriber. The equipment price shall recover the operator's cost of
the equipment, including costs associated with storing and preparing the equipment
for sale up to the time it is sold to the customer, plus a reasonable profit. An operator
may sell service contracts for the maintenance and repair of equipment sold to
subscribers. The charge for a service contract shall be the HSC times the estimated
average number of hours for maintenance and repair over the life of the equipment.
J. Promotions. A cable operator may offer equipment or installation at charges below
those determined under paragraphs E through G of this section, as long as those
offerings are reasonable in scope in relation to the operator's overall offerings in the
Equipment Basket and not unreasonably discriminatory. Operators may not recover
the cost of a promotional offering by increasing charges for other Equipment Basket
elements, or by increasing programming service rates above the maximum monthly
charge per subscriber prescribed by this ordinance. As part of a general cost-of-
service showing, an operator may include the cost of promotions in its general system
overhead costs.
K. Franchise fees. Equipment charges may include a properly allocated portion of
franchise fees paid to the City.
Sec. 25-156. Cost accounting and cost allocation requirements.
A. Applicability. The requirements of this section are applicable for purposes of rate
adjustments on account of external costs and for cost-of-service showings.
B. Generally accepted accounting principles. Cable operators shall maintain their
�°�� accounts in accordance with generally accepted accounting principles, except as
otherwise directed by the City.
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� C. Accounts required. Cable operators shall maintain accounts in a manner that wili
enable identification of appropriate costs and application of the City's cost assignment
and allocation procedures, to cost categories necessary for rate adjustments due to
�rt • changes in external costs and for cost-of-service showings. Such categories shall be
sufficiently detailed and supported to permit verification and audit against the
company's accounting records.
D. Accounting level. Except to the extent indicated below, cable operators shall
aggregate expenses and revenues at either the franchise, system, regional, or
company level in a manner consistent with practices of the operator as of April
3,1992. However, in all events, cable operators shall identify at the franchise level
their costs of franchise requirements, franchise fees, local taxes, and local
programming.
E. Cost allocation requirements.
(1) For purposes of establishing expenses at the franchise level, cable
operators shall allocate expenses and revenues aggregated at higher
levels to the franchise level based on the ratio of the totai number of
subscribers served at the franchise level to the total number of
subscribers served at the higher level.
, (2) Except to the extent indicated below,all categories of costs allocated to,
or identified at, the franchise level shall be allocated to the basic service
` tier based on the ratio of channels in the basic tier to the total number
of channels offered in the franchise area, including non-regulated and
leased commercial access channels. These costs shall be allocated to
each tier of cable programming services based on the ratio of channels
in that tier to the total number of channels offered in the franchise area.
(3) Costs of programming and retransmission consent fees, however,
shall be allocated only to the tier on which the programming or
broadcast signal at issue is offered.
(4) Costs of franchise fees shall be allocated among equipment and
installations, program service tiers and subscribers in a manner that is
most consistent with the methodology of assessment of franchise fees
by the City.
(5) Cost of public, educational, and governmental access channels carried
on the basic tier shall be directly assigned to the basic tier where
possible.
F. Common costs. Expenses which cannot be assigned to any single expense or
service category shall be described as common costs. Common costs shall be
""�' allocated to expense categories as follows:
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�-� (1 ) Wherever possible, common costs are to be aliocated to service cost
categories based on direct analysis of the origin of the costs themselves.
�}F� (2) When direct analysis is not possible , common costs shall, if possible, be
allocated to the service costs categories based on an indirect, cost-
causative linkage to other costs directly assigned or allocated to the
service cost category.
(3) When neither direct nor indirect measures of cost allocation can be
found, common costs shall be allocated to each service cost category
based on the ratio of all costs directly assigned and attributed to a
service cost category over total costs directly assignable and
attributable.
G. Unrelated expenses and revenues. Cable operators shall exclude from cost
categories used to develop rates for the provision of basic service tier and equipment,
any direct or indirect expenses and revenues not related to the provision of such
services. Common costs of providing basic service tier and equipment, and unrelated
activities shall be allocated between them in accordance with paragraph F of this
section.
H. Part-time channels. In situations where a single channel is divided on a part-time
basis and is used to deliver service associated with different tiers or with pay per
channel or pay per view service, a reasonable and documented allocation of that
channel between service shall be required along with the associated revenues and
costs.
Sec. 25-157. Costs of franchise requirements.
A. The costs of satisfying franchise requirements to support public, educational, and
governmental channels shall consist of the sum of:
(1 ) All per channel costs for the number of channets used to meet franchise
requirements for public, educational, and governmental channels;
(2) Any direct costs of ineeting such franchise requirements; and
(3) A reasonable allocation of general and administrative overhead.
6. The costs of satisfying any other requirement under the franchise shall consist of
the direct and indirect costs, including a reasonable allocation of general and
� administrative overhead.
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Sec. 25-158. Charges for customer changes.
A. This section shali govern charges for any changes in service tiers or equipment
provided to the subscriber that are initiated at the request of a subscriber after initial
service installation.
B. The charge for customer changes in service tiers effected solely by coded entry
on a computer terminal or by other similarly simple methods shall be a nominal
amount, not exceeding actual costs, as defined in paragraph C of this section.
C. The charge for customer changes in service tiers or equipment that involve more
than coded entry on a computer or other similarly simple method shall be based on
actual cost. The actual cost charge shall be either the HSC, as defined in Section
25-155 of this ordinance, multiplied by the number of person hours needed to
implement the change, or the HSC multiplied by the average number of person hours
involved in implementing customer changes.
D. A cable operator may establish a higher charge for changes effected solely by
coded entry on a computer terminal, or by other similarly simple methods, subject to
approval by the City, for a subscriber changing service tiers more than two times in
a 12-month period, except for such changes ordered in response to a change in price
or channel line-up. If a cable system adopts such an increased charge, the cable
system must notify all subscribers in writing that they may be subject to such a
charge for changing service tiers more than the specified number of times in any 12-
' month period.
E. Downgrade charges that are the same as, or lower than, upgrade charges are
evidence of the reasonable of such downgrade charges.
DIVISION 2. - REGULATORY PROVISIONS
Sec. 25-159. Notification of proposed rate increase.
A. A cable operator shall provide written notice to a subscriber of any increase in the
price to be charged for the basic service tier or associated equipment at lease 30 days
before any proposed increase is effective. The notice shall include a provision stating
that protests to such prices may be filed with the City at the Internal Services
Department, P.O. Box 95104, Grapevine, Texas 76099. The notice shall also include
a statement that such protests, in order to be effective,must be filed with the City no
later than 21 days after the notice is received by the subscriber.
�°°M B. In addition to the notice required in paragraph A, the cable operator shall give the
City a minimum of 30 days advance written notification of any changes in rates for
cable programming service or associated equipment.
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�:. .. Sec. 25-160. Initiation of review of basic cable service and equipment rates.
A cable operator shail file its schedule of rates for the basic service tier and
�r�-.� associated equipment with the City within 30 days of receiving written notification
from the City that the City has been certified by the Commission to regulate rates for
the basic service tier, or by November 15, 1993, whichever is later.
Sec. 25-161. City review of basic cable rates and equipment costs.
A. After a cable operator has submitted to the City for review its existing rates for
the basic service tier and associated equipment costs, or a proposed increase in these
rates (including increases in the baseline channel charge that results from reductions
in the number of channels in a tier), the existing rates will remain in effect or the
proposed rates will become effective after 30 days from the date of submission to the
City. Provided, however, that the City may toll this 30-day deadline for an additional
time by issuing a brief written order as described in paragraph D within 30 days of the
rate submission explaining that it needs additional time to review the rates. The City
may, at any time, require the cable operator to produce or provide access to additional
information, including proprietary information, that the City deems necessary in order
to make a rate determination. All necessary information must be either provided or
access to the information provided at the time the submission is made. If the City
deems additional information is necessary, the Cable Operator shall provide the
information requested by the City within 10 working days. If proprietary information
` is provided, the provisions of Section 25-162 hereof will apply to such information.
B. Upon receipt by the City, the cable operator's submittal shall be available for public
inspection and copying. Comments on the submittal by interested persons may be
submitted in writing or orally at a City Council meeting held at any time during the
initial 30-day review period. Written comments shall be addressed to Director of
Internal Services, City of Grapevine, P.O. Box 95104, Grapevine, Texas 76099, and
must be received prior to the end of the 30-day review period, but in order to be most
effective, written comments need to be received by the City 21 days after the
operator's submittal is filed with the City.
C. If a cable operator submits a proposed rate increase for review that appears to
exceed the presumptively reasonable level and does not include a cost-of-service
showing to justify the rate, the City will permit the cable operator to this deficiency
and submit a cost-of-service showing.
D. If the City is unable to determine, based upon the material submitted by the cable
operator, that the existing or proposed rates are within the permitted basic service tier
�� charge or actual cost of equipment as defined in Sections 25-154 and 25-155 hereof,
o� if a cable operator has submitted a cost-of-service showing pursuant to Sections
25-156 and 25-163 hereof, seeking to justify a rate above the basic service tier
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charge as defined in Sections 25-154 and 25-155 hereof, the City may toil the 30-day
deadline in paragraph A of this section to request and/or consider additional
information or to consider the comments from interested parties as follows:
(1) For an additional 90 days in cases not involving cost-of-service
showings; or
(2) For an additional 150 days in cases involving cost-of-service showings.
The order tolling the effective date of the proposed rate shall explain why the
City could not make the necessary determination, and it shall also provide the cable
operator an opportunity to cure any deficiencies in its original filing. During the
additional time periods provided in this paragraph, comments from interested persons
may be submitted in writing, as provided in paragraph B of this section, or orally
during at least one City Council meeting during the period of abatement.
E. If the City has availed itself of the additional 90 or 150 days permitted in
paragraph C of this section, and has taken no action within these additional time
periods, then the proposed rates will go into effect at such times, subject to refunds
if the City subsequently issues a written decision disapproving any portion of such
rates. Provided, however, that in order to order refunds, the City must have issued
a brief written order to the cable operator by the end of the 90 or 150-day period
permitted in paragraph C of this section directing the operator to keep an accurate
account of all amounts received by reason of the rate in issue and on whose behalf
such amounts were paid.
Sec. 25-162. Proprietary information.
A. If the City has required the cable operator to produce proprietary information under
the provisions of this ordinance, the cable operator may submit therewith a request
that such information not be made routinely available for public inspection. A copy
of the request shall be attached to and shall cover all of the materials to which it
applies and all copies of those materials. If feasible, the materials to which the
request applies shall be physically separated from any materials to which the request
does not apply. If this is not feasible, the portion of the materials to which the
request applies shall be identified.
B. Each such request shall contain a statement of the reasons for withholding the
materials from inspection and of the facts upon which those reasons are based. If the
request is that the materials be withheld from inspection for a limited period of time,
� that period shall be specified.
C. Verbal requests which do not comply with the requirements of paragraphs A and
'��' B of this section will not be considered.
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��,:, D. Upon receipt of a request in compliance with paragraphs A and B, the City will not
grant routine public access to the materials unless the provisions of E and F of this
section are met. A letter to that effect will be placed in a public file in lieu of the
�:,,,., materials withheld from public inspection.
E. Provided, however, if a written request for the materials is received by the City
pursuant to the Open Records Act, Chapter 552, Texas Government Code, the City
will notify the person providing the materials of the request for the materials. If the
person providing the materials requests the City to do so, the City will request an
opinion from the Texas Attorney General, pursuant to the Open Records Act,
regarding the public availability of the materials. If the person providing the materials
does not request the City to request an opinion from the Texas Attorney General, the
City may, at its option, either request such an opinion or provide the materials to the
public.
F. If the Texas Attorney General issues an opinion or letter ruling requiring the City
to make the materials available to the public, the materials will be made available for
public inspection unless the operator takes timely steps to appeal the Texas Attorney
General ruling or opinion and stays the effect of said ruling or opinion. In that case,
the City will abide by the order of the Court in regard to whether or not the
documents may be released.
G. If no request for confidentiality is submitted, the City assumes no obligation to
consider the need for non-disclosure.
Sec. 25-163. Burden of proof.
A. A cable operator has the burden of proving that its existing or proposed rates for
basic service and associated equipment comply with 78 U.S.C. § 543, and Sections
25-154 and 25-155 hereof.
B. For an existing or a proposed rate for basic service tier or associated equipment
that is within the permitted tier charge and actual cost of equipment as set forth in
Sections 25-154 and 25-155, the cable operator must submit the appropriate FCC
form to the City.
C. For an existing or a proposed rate for basic service tier that exceeds the permitted
tier charge as set forth in Sections 25-154 and 25-155 he�eof, the cable operator
must submit to the City a cost-of-service showing to justify the proposed rates. The
cost-of-service showing must in conformance with Accounting and Cost Allocation
Requirements as adopted and amended by the Commission for cable system
�� . operators.
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Sec. 25-164. Written decision.
A. The City shall issue a written decision in a rate making proceeding whenever it
disapproves an initial rate for the basic service tier or associated equipment in whole
or in part, disapproves a request for a rate increase in whole or in part, or approves
a request for an increase in whole or in part over the objections of interested parties.
The City is not required to issue a written decision that approves an unopposed
existing or proposed rate for the basic service tier or associated equipment.
B. Public notice shall be given of any written decision required in paragraph A of this
section, by making the contents of any written decision available to the public, and
by publication of the decision one time in the official newspaper of the City.
Sec. 25-165. Reduction of rates; prescription of rates.
A. The City may order a cable operator to implement a prospective reduction in basic
service tier or associated equipment rates where necessary to bring rates into
compliance with the standards set forth in Sections 25-154 and 25-155 hereof.
B. The City may prescribe a reasonable rate for the basic service tier or associated
equipment after it determines that a proposed rate is unreasonable.
Sec. 25-166. Refunds.
A. The City may order a cable operator to refund to subscribers that portion of
previously paid rates determined by the City to be in excess of the permitted tier
charge or above the actual cost of equipment, uniess the operator has submitted a
cost-of-service showing which justifies the rate charged as reasonable. Before
ordering a cable operator to refund previously paid rates to subscribers, the City shall
give the operator notice and opportunity to comment. The operator's opportunity to
comment upon the proposed refunds may be at any meeting of the City Council during
the City's period of review of the operator's rates. If the City has extended its review
period under Section 25-161 , and has issued an accounting order under Section
25-161 E, then the operator, prior to refunds being ordered, may request an
opportunity to appear before the City Council to comment upon the proposed refunds.
B. An operator's liability for refunds is limited to a one-year period, except that an
operator that fails to comply with a valid rate order issued by the City shall be liable
for refunds commencing from the effective date of such order until such time as it
complies with such order.
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� _ C. The refund period shall run as follows:
(1) From the date the operator implements a prospective rate reduction back
�„ � in time to September 1 , 1993, or one year, whichever is shorter.
(2) From the date the City issues an accounting order pursuant to Section
25-161 D hereof, and ending on the date the operator implements a
prospective rate reduction ordered by the City or one year, whichever is
shorter.
D. The cable operator, in its discretion, may implement a refund in the following
manner:
(1) By returning overcharges to those subscribers who actually paid the
overcharges, either through direct payment or as a specifically identified
credit to those subscribers' bills; or
(2) By means of a prospective percentage reduction in the rates for the basic
service tier or associated equipment to cover the cumulative overcharge.
This shall be reflected as a specifically identified, one-time credit on
prospective bills to the class of subscribers that currently subscribe to
�} ` the cable system.
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Sec. 25-167. Governing law; venue.
All obligations of the parties hereunder are performable in Tarrant County,
Texas. In the event that any proceeding is brought to enforce the terms of this
ordinance, the same shall be brought in Tarrant County, Texas.
Sec. 25-168. Compliance with Open Meetings Act.
It is hereby officially found and determined that the meeting at which this article
is passed is open to the public as required by law and that public notice of the time,
place, and purpose of said meeting was given as required, in accordance with Chapter
551, Texas Government Code.
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