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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City of Fridley Cable Communications Franchise Ordinance becanes effective; and shall renain in effect until amended or superseded in accor�nce with the provisions set forth herein. 4.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. � �. � � y / •1 � V 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. � 1. 1 • ?. • �� 1 I�1' M• .•, 7ti 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: - - «�.r�- 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: -n �u : • - 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: 1 � � � �i �J � • _�,_• _ 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 0� 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; , � � (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; � .� � 1 eJ� � ,� C: N (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 i � 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 : �`� oZ`i � �.�� Cn. ^� $zAV�'r c. n�u�r� - ci� Q+IIix Public Heacing: � First Reading: Second Reading: Publish: 2/2/10/4 � Nwanber 15, 1982 Novanber 22, 1982 December 6, 1982 Dece�nber 8, 1982 V V � Y `�'- � WILLIAM J. �E - MAYOR ,� v�