Ordinance No. 0765 12-06-1982• •i 111 r. • �' : • 1
AN �2DIN�1N(E ESfABLLSHIi� �IAPTER 406 FI��ITLED "CABLE
COMMUNICATION RATES AND RATE CHANGE PROCEDURES'
PLTRSTlANP 'i0 1�iE QTY OF FRII�_F'�' CABLE OOMMUNICATIONS
FRAN(iiLSE O�tDII1At�]CE.
, PRFAMRT.F.
The City of Fridley does ordain that it is in the
public interest to set forth the applicable rates for
cable carnnunications service and to prescribe a rate
change procedure affording the public reasonable
notioe and an opport�ity to be heard,
406.01. C�M3�tAi� PIbWISIONS
1. Short Title,
�is Ordinance shall be known and may be cited as the "Fridley Cable
C.CINfILII1lCdtlOflS Rdt2 �IC�lI1dI1Ce.�
i. D2f 1711t10ILS.
Words used herein shall be defined in accordance with the provisions of
Section 405.03 of the City of Fridley Cable Communications Franchise
Ordinance.
3. u�,iation of Rates; EEfective Date.
No charge shall be made or imposed by the Grantee for any cable
� cmmminications service sub�ect to regulations by the City, except in
accordance with tl�e provisions of this Ordinance and the provisions of the
City of EYidley Cable Communications FYanchise Ordinance.
' �is Ordinance shall be in effect, after passage and publication, as of
tl�e �te the City of Fridley Cable Communications Franchise Ordinance
becanes effective; and shall renain in effect until amended or superseded
in accor�nce with the provisions set forth herein.
4. Captions.
Section captions or headings are intended solely to facilitate reading and
reference to the provisions of this Fzanchise Ordinance and shall not
affect the meaning or interpretati on of any provision.
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5. Severability.
If any section, subsection, sentence, clause, phrase or portion of this
Rate Otdinance is, for any reason, held imralid ot �mconstitutional by an
wurt or acYninistrative agency of competent jutisdiction, such portion
shall be deaned a separate, distinct and independent provision and such
holding shall not affect the validity of the renaining portions thereof.
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1. Rates and Uther (harges.
A. Rates and charges charged by Grantee for monthly service and
installation and other char9es hereunder shall be uniform, fair and
reasorrzble.
B. The initial rate for basic servioe shall not exceed the following:
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First TV outlet-monthly charge
-installation
Additional outlets with identical
servioe, each-monthly charge
-installation
$ 8.00
525.00
$ 1.50
$10.00
C. �e initial rates foz preni�an services shall be as follaas:
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PL0i11171R SetV1C2�edC�]
Additional outlets, each-monthly chazge
-installation
(service addition)
$10.�0
$ 3.50
$10.00 tmximtnn
Servioe in City shall oonsist of basic service plus one (1) or more
preniwn services as selected by subscriber.
At the present time, the federal government does not allow City to
zegulate the tates fot pr�nium services. In the event that this
policy is changed, Grantee's provision of preni�nn services shall be
subject to City's rate regulataon authority. In any event, no rate
change for any preniian service shall be effective unless Grantee gives
at least thirty (30) days advance notice of the increase to all
su6scribers and Grantor.
(1) �he other initial rates shall be as follows:
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Reconnection
Converter rental (for a video
cassette recorder)
Gavermnent and educational facilities
(monthly basic servioe only)
Senior citizen discount (available to
those 65 or older who are heads of
households)
Lock-out boxes (one time only purchase)
S15.Q0
S 2.50
No 4�arge
258 w�
Basic service
835.00
(2) Grantee reserves the riqht to wllect a refundable deposit
on ariy and all converters.
D. Notwithstanding the previous paragraph, Grantee may offer both its
initial and additional installation services to subscriber at
imiformly applied reduoed rates.
E. I�sed access channels shall be made available on a fiist come,
first served basis. Grantee shall make available both playback
equipment and cablecasting technicians needed for the playback of
progr�ns. Rates for studio usage will be determined on a case-by-case
basis and will be established by wnsidering such factors as personnel
iequiranents, hours of studio time requized, staging, ptop and
�,;paient requiranents. In any event, leased acoess channels shall be
made �„tably available to all at imiformly applied rates.
F, Service requests for maintenance or re�ir of the Sj�stem shall be
pezformed at no chazge to a subscribei. Grantee reserves the zight to
assess an appropriate charge for damage to System caused by a
subscriher. �e cost of time and material for repair and replacement
shall constitute appropriate charges.
406,03 LINE ExPFNSION.
1. Line E�Ctensions.
A. Installation charges as set forth in Section 406.02(1) of this
Ordinance shall apply in all areas whexe density is fozty (40) homes
per mile or hic�er.
B. Grantee will extend service, upon request, to
densities are laver than fotty f40) homes per mile at
additional cost per installation:
areas where
the following
t�e11
���G
Density
Per Mile
30 - 39
20 - 29
Additional Cost
Per Installation
530.00
550.00
C, Areas where there are nineteen (19l or less hanes per mile will be
sezved on a cost-sharing basis bets�ee� the S�stan and the svbscribers
on a graduatfi�, basis as follows:
Peroentage of Cost
Density Cost Paid By Cost Paid By
Per Nhle Grantee Suhscriber
15 -19
10 - 14
9 or fewer
508
308
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508
708
time and materials
D. 7.here will be no free installation period in these areas.
406.04. RATE C9ANGE5
1. Rate Q�anges.
A change in any regulatable rate as set forth in Section 406.02(1)(B) and
(D), when not inwnsistent with applirable requirenents of the FCC, the
Board, or other lawful authority, �y be initiated by Grantee. Any such
rate chan9e shall be subject to apprwal by City in accordance with the
prwisions of this section and the following paca�gaphs:
A. No rate change may be made without approval of four (4)
affirmative votes of tl�e City Co�cil of City.
B. No rate change shall be apprwed that would result in different
rates or charges for servioe to similarly situated subsctibers in the
rate territory.
C. No rate or charge change will be approved unless all of the
standards and prer�,;sites for review have been met and complied with
and determinations have been made, all pursuant to this section.
D. Zhe standards for reviewing a proposed rate change will include at
least the follaaing, except when the change is required of Grantee by
federal or state action or unless further review is not deemed
necessary by City.
(1) The ability of Grantee to render System services and to
derive a reasonable profit therefrom under the existing rate
schedule and proposed tate schedule;
(2) A fair rate of retuzn on net imiestinents;
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(3) A fair rate of return with respect to investments having
similar risks to that of prwiding cable oamnuucations servioes;
(4) The extent to which Grantee has a�ered to the terms of this
Franchise and the cost of ac�ering thereto;
(5) Capital expenditures made by Grantee;
(6) Grantee's a�erence to the terms of the Franchise with
respect to ca�rtnuiity progr�mning requirenent;�.
� (7) In any proceeding, City may consider the extent to which
payment or compensation is reasonably made to parent or an
affiliated interest for any services rendered or property or
service furnished. In such proceedings, any payment made by
Grantee to �r�t based upon allocations of corporate resources
in accordanoe with FCC Fotm 326 shall be deemed zeasonable.
Grantee shall provide FCC Fozm 326 notwithstanding federal
r�,;renents, Other payments shall be 7ustified by Grantee with
an itemized statement. If Grantee fails to �ustify other
payments, City may disallaa those �yments in whole or in �rt if
City fincls t1�at said psyments did not reasonably relate to the
service rendered or property furnished by the parent or
affiliate;
(8) Such other factors as City �y deen relevant.
E. �e procedures to be followed in changing a rate or charge shall
incluc� at least the follaaing:
(1) An application fot a zate change will be suUmitted to City
and a copy filed with Board.
(2) The application shall be supported by statistical and other
proof indicatang that the existing rate or charge is inadeguate
� and that the proposed increases ate required to enable the
Grantee to render service to fulfill its obligations under this
Franchise and to derive a reaso�ble profit therefran.
(3) The application shall inclu�, upon request of City, current
information and financial information with at least the
follaaing:
(a) Halance sheet;
(b) Incane statenent;
(c) Statanent of sources and applications of funds;
(d) Detailed supporting schedules of e�enses, income,
assets and other itens as may be r�,;red by City;
(e) Statenent of current and projected subscribers;
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(f) A current list of rates and charges of Grantee
applicable to its Systems, or owned or operated by its
par�t corporation or other subsidiaries or affiliates of
its par�t corporation;
(g) A current list of rates and charges for other systems
in the seven (7) oo�ty metropolitan ara3.
(4) The application shall include, upon request oP City,
explanatory material detailing the me#hods for determining debt
and ea,�ty portions of ti�e halanoe sheet; the basis for interest
expet�se; depreciation methods; the methods for any corporate �
wezhead allocations; and the basis for taxes, including any
ittvesbnent tax credits.
(5) City will notify the Grantee and the Board and schedule a
public hearing on the request not less than twenty (20) days nor
more than forty (40) days from the date of receipt of the
application, if the application contains all information
requested pursuant to Section 406.04(1)(E) subdivisions 3 and 4
above, Grantee will notify the public through providing notice
for one (1) week, each day between 7:00 p.m. and 9:00 p.m. oai two
f2) channels of the day, plaoe and time of the hearings. City
will publish notice not less than twenty (20) days prior to
hearing in its official news�nper.
(6) After closing the public hearing, City will have sixty (60)
days within which to make its determi.nation. Any approved change
in rates or charges shall becoane effective upon the date the rate
change is granted ty City.
(7) If City fails to act upon the requested change of rates ot
chacges within the sixty (60) day petiodr the requested change of
rates or charges shall become effective. City may appeal
pursuant to the then applicable procedures of the Board.
F, City may utilize a rate consultant to advise it on proposed rate
changes and to assist in maintaining uniform rates within the rate
territory. �e expenses of a rate consultant shall be borne by the
Grantee if :
(1) 'Zi�e proposed increase would result in a rate thirty percent
(30�) highet than the median rate fot service defined as basic
service for the seven (7) wunty metropolitan are�; and
(2) City and Grantee mutua7.ly agree upon the rate consultant to
be retained. Consent shall not be imreasonataly withheld by either
party.
In all other events, the expense of a rate consultant shall be borne
� City.
G. F�ccept as prwided belar� City shall bear all costs for review of
an application for a rate or charge change. In the event the proposed
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rate or c�azge change will result in a rate or charge thirty percent
(308) higher than the median rate for that service defined as basic
service in the seven (7) county metropolitan azea, all expenses
incurred 1� City in reviewing and processing the application shall be
borne by Grantee. The cost shall include, but not be limited to,
attorneys' fees and the reasonahle value of service (as determined by
City) rendered by City or any of the City's employees, agents or
r�resentatives, City shall notify Grantee of any consultants, othez
than rate consultants, to be anployed, the purpose of such employment
and the anticipated costs. Nothing herein sha11 precluc� either psrty
fran recovering its e�enses through litiqa tion _�f a contested rate
change proceeding.
H. City shall have the power and right to suYmit to arbitration the
fixing of any rates or charges to be made by Grantee.
I. Any time limit may be waived only if City and Grantee consent.
PASSID AND ADOFPID BY '1HE CITY Ql[TNCIL OF ZHE CITY OF �Tnr.F't' 7.iiLS 6�3 DAY
OF DEC�T7BER, 19ffi.
AT1gS'P :
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$zAV�'r c. n�u�r� - ci� Q+IIix
Public Heacing:
� First Reading:
Second Reading:
Publish:
2/2/10/4
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Nwanber 15, 1982
Novanber 22, 1982
December 6, 1982
Dece�nber 8, 1982
V V � Y `�'- �
WILLIAM J. �E - MAYOR
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