§ 90-31. Procedures governing filing and implementation of rates and resolution of rate issues; notice of rate change.

(a)

The following procedures shall govern the filing and implementation of rates by any franchised cable operator and the consideration and resolution of rate issues by the city:

(1)

Except as federal law specifically otherwise provides, no rate, including a new rate or a change in rate, may go into effect without the prior approval of the city. If a franchised cable operator believes that a rate is not subject to the city's jurisdiction, it must inform the city before the rate goes into effect. The city can investigate rates and set appropriate rates at any time. Rates charged by franchised cable operators which are subject to regulation by the city shall be reasonable.

(2)

Except as federal law specifically otherwise provides, prior to implementing any rate increase, including the rate increase scheduled to go into effect on January 1, 1993, a franchised cable operator must submit data sufficient to show that any rate increase is justified. A reduction in services is an increase in rates.

(3)

If a franchised cable operator intends to take advantage of any provision in the Federal Communications Commission ("FCC") Rules which require the city to presume the reasonableness of increases in basic cable cost factors in the city, that operator shall provide documents sufficient to prove that the increase will in fact result in increased charges to it and does not improperly allocate costs to the cable system in the city. It shall also provide a chart showing the amount of all increases and decreases in costs for all basic cable cost factors itemized in the FCC Rules. The chart shall state the previous annual cost for each item, the actual cost after the increase (or decrease) and the amount of increase (or decrease). Where an increase in programming costs is claimed, contracts showing the increase must be provided. Where an increase is the result of an increase in charges among companies directly or indirectly controlled by that operator or its affiliate, that operator shall provide documents showing that the increase was reasonable.

(4)

A franchised cable operator must provide other information requested by the city manager in connection with an investigation of its rates. The city manager can set deadlines for submission of the information requested or required in this section.

(5)

The city will consider the following in establishing rates or determining whether a rate is reasonable:

a.

Has the franchised cable operator supported any increase in regulated rates? If not, the presumption will be that no increase is justified.

b.

Is there any reason why regulated rates should not be reduced?

c.

Is there any justification on the record for an increase in rates above last year's rate? The city will consider, for example, whether the franchised cable operator has invested substantial amounts into improving service within the city over the last year.

d.

What rates are charged in other comparable communities, in communities with governmentally-owned cable systems and in communities where cable systems are subject to competition from other cable companies?

e.

Are there any factors which would justify a higher rate in the city, or a lower rate in the city, than is charged in comparable communities (for example, is the franchised cable operator's service in the city poor or good)?

(6)

The city may approve or disapprove a proposed rate or may establish rates consistent with the franchise and federal law. The city will consider issues, follow procedures and issue a final written decision as required by FCC Rules.

(b)

As a matter of general consumer protection, and so that the other purposes of this section may be achieved, a cable operator must provide subscribers and the city at least 30 days' notice prior to implementing any change in rates. The notice must fully and accurately describe the proposed rate change. If an operator in any respect alters a rate change after notice has been given, it must issue a new notice prior to implementing the change.

(Code 1971, § 10.2-36)