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CC Resolution No. 1275 2460 RESOLUTION NO. 1275 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS AMENDING RESOLUTION NO. 6909, SECTION 4 "REVIEW OF REQUEST FOR INCREASE IN BASIC CABLE RATES" OF THE CITY OF BAYTOWN, PRESCRIBING REGULATIONS FOR RATES CHARGED TO CABLE TELEVISION SUBSCRIBERS FOR THE BASIC SERVICE TIER; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ********************************************************************************* WHEREAS, the Federal Communications Commission ("FCC") has issued rules pursuant to the Cable Television Consumer Protection and Competition Act ("1992 Cable Act"), implementing the regulation of cable television subscriber rates; and WHEREAS, the FCC adopted a new optional rate adjustment methodology where cable operators make only annual rate changes to their Basic Service Tier and the Cable Programming Service Tier; and WHEREAS, the annual adjustment regulations command a different review period for a Franchising Authority to review a cable operator's submission and eliminates the need for accounting orders;NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That Section 4 "Review of Request for Increase in Basic Cable Rates" of Resolution No. 6909 passed by the City Council of the City of Baytown,Texas,on January 26, 1994, is hereby amended to read as follows: SECTION 4. REVIEW OF REQUEST FOR AN ADJUSTMENT OF BASIC CABLE RATES (A) Notice A cable operator in the city who wishes to increase the rates for the basic service tier or associated equipment under the quarterly rate adjustment system shall file a request with the city and notify all subscribers at least thirty (30) days before the cable operator desires the increase to take effect. A cable operator in the city who wishes to increase the rates for the basic service tier or associated equipment under the annual rate adjustment system shall file a request with the city and notify all subscribers at least ninety (90)days before the cable operator desires the increase to take effect. The notices specified herein may not be given more often than annually and until at least one (1) year after the determination of the initial basic cable rates or fifteen (15) months from the effective date hereof, whichever is sooner. However, under the annual rate adjustment system, the cable operator shall be permitted to make rate adjustments for the addition of channels to the basic service tier that the cable operator is required by federal or local law to carry, i.e., new must- 2461 carry, local origination, public, education, and governmental access and leased access channels. (B) Expedited Determination and Public Hearing for Quarterly Rate Adjustment Submissions. (1) If the City Council is able to expeditiously determine that the cable operator's rate increase request for basic cable service is within the FCC's reasonable rate standard, as determined by the applicable price cap, the City Council shall: (a) hold a public hearing at which interested persons may express their views; and (b) act to approve the rate increase with thirty (30) days from the date the cable operator filed its request with the city. (2) If the City Council takes no action within thirty (30) days, in the case of the benchmark or cost-of-service submission from the date the cable operator filed its request with the city,the proposed rates will go into effect. (C) Extended Review Period for Quarterly Rate Adjustment Submissions. (1) If the City Council is unable to determine whether the rate increase is 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, by adoption of a formal resolution, invoking the following additional periods of time, as applicable to make a final determination: (a) ninety (90) days if the City Council needs more time to ensure that the requested increase is within the FCC's reasonable rate standard as determined by the applicable price cap; and (b) one hundred fifty (150) days if the cable operator has submitted a cost-of- service showing seeking to justify a rate increase above the applicable price cap. (2) The proposed rate increase is tolled during the extended review period. (3) If the City Council has not made a decision within the ninety (90) or one hundred fifty(150) day period,the City Council shall issue a brief written order at the end of the period requesting the cable operator to keep accurate account of all amounts received by reason of the proposed rate increase and on whose behalf the amounts are paid. 2 2462 (4) During the extended review period and before taking action on the requested rate increase, the City Council shall hold at least one public hearing at which interested persons may express their views and record objections. (a) An interested person who wishes to make an objection to the proposed rate increase may request the City Clerk to record the objection during the public hearing or may submit the objection in writing anytime before the decision resolution is adopted. (b) In order for an objection to be made part of the record, the objector must provide the City Clerk with the objector's name and address. (5) 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. (D) Review Period for Annual Rate Adjustment Submissions. The review period for annual rate adjustments is ninety(90)days from the date the cable operator filed its request with the city. However, should the cable operator who has submitted proposed rates under the annual rate adjustment system later wish to make a rate adjustment for non-external costs associated with the addition of new channels to the basic service tier that the cable operator is required by federal or local law to carry and unknown at the time of the annual submission,the review period for the same shall be sixty(60) days from the date the cable operator filed its request with the city. (1) During the review period and before taking action on the requested rate adjustment, the City Council shall hold at least one public hearing at which interested persons may express their views and record objections. (a) An interested person who wishes to make an objection to the proposed rate increase may request the City Clerk to record the objection during the public hearing or may submit the objection in writing anytime before the decision resolution is adopted. (b) In order for an objection to be made part of the record, the objector must provide the City Clerk with the objector's name and address. (2) If the City Council is unable to make a final determination concerning a requested rate adjustment within the specified review period, the cable operator may put the adjusted rates into effect, subject to subsequent refund if the City Council later issues a decision disapproving any portion of the increase. 3 2464 (a) the City Council was unable to make a decision within the applicable time period as described in paragraph (C) or(D) above; (b) the cable operator implemented the rate increase at the end of the extended review period; and (c) the City Council determines that the rate increase, as submitted, exceeds the applicable price cap or that the cable operator failed to justify the rate increase by a cost-of-service showing, and the City Council disapproves any portion of the rate increase. (2) The method of paying any refund and the interest rate will be in accordance with FCC regulations as directed in the City Council's decision resolution. (K) Anneal. The City Council's decision concerning rates for the basic service tier or associated equipment may be appealed to the FCC in accordance with applicable federal regulations. Section 2: All resolutions or parts of resolutions inconsistent with the terms of this resolution are hereby repealed;provided,however,that such repeal shall be only to the extent of such inconsistency and in all other respects this resolution shall be cumulative of other resolutions regulating and governing the subject matter covered by this resolution. Section 3: If any provision, section, exception, subsection, paragraph, sentence, clause or phrase of this resolution or the application of same to any person or the set of circumstances, shall for any reason be held unconstitutional, void or invalid, such invalidity shall not affect the validity of the remaining provisions of this resolution or their application to other persons or sets of circumstances and to this end all provisions of this resolution are declared to be severable. Section 4: This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED,READ and PASSED by the affirmative vote of the City Council of the City of Baytown this I lth day of April, 1996. PETE C. ALFA O, Mayor 5 2463 (3) The City Council may act to approve the rate increase within the above-specified review period. (4) If the cable operator inquires as to whether the city intends to issue a rate order after the ninety(90) day review period,the city must notify the cable operator of its intent in this regard within fifteen (15)days of the cable operator's request or the city will have lost its ability to order a refund or a prospective rate reduction. (5) If the proposed rate goes into effect before the city issues its rate order, the city will have twelve (12) months from the date the operator filed for the rate adjustment to issue its rate order. (E) Price Cap Analysis. If a cable operator presents its request of a rate increase as being in compliance with the FCC's price cap,the City Council shall review the rate using the price cap analysis in accordance with the standard form authorized by the FCC. Based on the City Council's findings, the basic cable rates shall be established as follows: (1) If the proposed basic cable rate increase is within the price cap established by the FCC, the proposed rates shall become the new basic cable rates. (2) If the proposed basic cable rate increase exceeds the price cap established by the FCC, the City Council shall disapprove the proposed rate increase and order an increase that is in compliance with the price cap. (F) Cost-of-service Showings. If a cable operator submits a cost-of-service showing in an attempt to justify a rate increase above the price cap, the City Council will review the submission pursuant to the FCC standards for rate increases above the price cap if the cable operator makes the necessary showing; however, a cost-of-service determination resulting in a rate below the price cap or below the cable operator's then current rate will prescribe the cable operator's new rate. (G) Decision. The City Council's decision concerning the requested rate increase shall be adopted by formal resolution. If a rate increase proposed by a cable operator is disapproved in whole or in part, or if objections were made by other parties to the proposed rate increase, the resolution must state the reasons for the decision. Objections may be made at the public hearing by a person requesting the City Clerk to record the objection or may be submitted in writing at any time before the decision resolution is adopted. (H) Refunds. (1) The City Council may order refunds of subscribers' rate payments with interest if: 4 2465 ATTEST: Z-"4 ao EILEEN P. HALL, City Clerk APPROVED AS TO FORM: JCAACIO RAMIREZ, SR. ity Attomey c:klh I4\council\resolution\cablereg.res 6