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BILL NO. 93-167
SPONSORED BY COUNCILMAN Benton and Bertel
' ORDINANCE NO. 12040
AN ORDINANCE OF THE CITY OF JEFFERSON; PRESCRIBING REGULATIONS
FOR RATES CHARGED TO CABLE TELEVISION SUBSCRIBERS FOR THE BASIC
SERVICE TIER; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE; PROVIDING
A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Federal Communications Commission "FCC") has issued rules
pursuant to the Cable Television Consumer Protection and Competition Act, Pub.L.No.
102-385 (1992) ("1992 Cable Act"), implementing the regulation of cable television
subscriber rates; and
WHEREAS, these rules allocate the regulation of rates for the basic service tier
and associated equipment rates to local franchising authorities and require local
authorities to become certified and adopt their own regulations governing the process
of rate regulation; and
WHEREAS, the City of Jefferson franchises cable television service for the
benefit of its citizens; and
WHEREAS, the City has submitted its application for certification to the FCC and
it is expedient to adopt the required regulations now, in order to implement regulations,
at the earliest possible date to obtain the most competitive rates for the City's cable
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ratepayers;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF JEFFERSON:
SECTION 1. DEFINITIONS
In this Ordinance:
BASIC CABLE RATES means the monthly charges for a subscription to the
basic service tier and the associated equipment.
BASIC SERVICE TIER means a separately available service tier to which
subscription is required for access to any other tier of service, including as a minimum,
but not limited to, all must-carry signals, all PEG channels, and all domestic television
signals other than superstations.
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STATE OF MISSOURI )
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COUNTY OF C o (e )
On this day of 1994, before me personally appeared
••`;���; � `'� �p��<<f ,to me personally known, who being by me
duly sworn, did say that he is the President of Jefferson City Jaycees, Inc., a Missouri Corporation,
eratlen;-and that the said
instrument was signed tnd-sealed in behalf of said Corporation by authority of its Board of Directors.
And the said 7� ` Q,,,k<< , �,, �� i acknowledges said
instrument to be the free act and deed of said Corporation.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in
y the County and State aforesaid,the day and year first above written.
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STATE nF MISSOURI )
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COUNTY OF COLE )
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z' On this day of A�� 1 , 1994,before me personally appeared Louise
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Gardner,Mayor of the City of Jefferson,Missouri;known to me to be the person who executed the
N, within instrument in behalf of the City of Jefferson, Missouri, and acknowledged to me that she
t executed the same for the purposes therein stated.
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IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in
the County and State aforesaid,the day and year first above written.
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` 1,&Expires: - _ Notary Public
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BILL NO. 93-167
r SPONSORED BY COUNCILMAN Benton and Bertel
ORDINANCE NO. 12010
r AN ORDINANCE OF THE CITY OF JEFFERSON; PRESCRIBING REGULATIONS
FOR RATES CHARGED TO CABLE TELEVISION SUBSCRIBERS FOR THE BASIC
SERVICE TIER; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE; PROVIDING
A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Federal Communications Commission "FCC") has issued rules
pursuant to the Cable Television Consumer Protection and Competition Act, Pub.L.No.
102-385 (1992) ("1992 Cable Act"), implementing the regulation of cable television
subscriber rates; and
WHEREAS, these rules allocate the regulation of rates for the basic service tier
'r and associated equipment rates to local franchising authorities and require local
authorities to become certified and adopt their own regulations governing the process
of rate regulation; and
K WHEREAS, the City of Jefferson franchises cable television service for the
benefit of its citizens; and
WHEREAS, the City has submitted its application for certification to the FCC and
it is expedient to adopt the required regulations now, in order to implement regulations,
i.. at the earliest possible date to obtain the most competitive rates for the City's cable
. ratepayers;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF JEFFERSON:
SECTION I. DEFINITIONS
In this Ordinance:
BASIC CABLE RATES means the monthly charges for a subscription to the
basic service tier and the associated equipment.
BASIC SERVICE TIER means a separately available service tier to which
subscription is required for access to any other tier of service, including as a minimum,
but not limited to, all must-carry signals, all PEG channels, and all domestic television
signals other than superstations.
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BENCHMARK means a per channel rate of charge for cable service an
associated equipment which the FCC has determined is reasonable.
CABLE ACT OF 1992 means the Cable Television Consumer Protection and
Competition Act of 1992.
CABLE OPERATOR means any person or group of persons:
(A) Who provide cable serve over a cable system and directly or
through one or more affiliates owns a significant interest in such a
cable system; or
(B) Who otherwise controls or is responsible for, through any
arrangement, the management and operation of such a cable
system.
CHANNEL means a unit of cable service identified and selected by a channel
number or similar designation.
COST OF SERVICE SHOWING means a filing in which the cable operator
attempts to show that the benchmark rate or the price cap is not sufficient to allow the
cable operator to fully recover the costs of providing the basic service tier and to
continue to attract capital.
FCC means the Federal Communications Commission.
INITIAL BASIC CABLE RATES means the rates that the cable operator is
charging for the basic service tier, including charges of associated equipment, at the
time the City notifies the cable operator of the City's qualification and intent to regulate
A basic cable rates.
MUST-CARRY SIGNAL means the signal of any local broadcast station (except
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superstations which is required to be carried on the basic sery ice tier.
PEG CHANNEL means the channel capacity designated for public, educational,
or governmental use, and facilities and equipment for the use of that channel capacity.
PRICE CAP means the ceiling set by the FCC on future increases in basic cable
rates regulated by the City, based on a formula using the GNP fixed weight price index,
reflecting general increases in the cost of doing business and changes in overall
inflation.
REASONABLE RATE STANDARD means a per channel rate that is at, or below,
the benchmark or price. cap level.
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,:. SUPERSTATION means any non-local broadcast signal secondarily transmitted
'r by satellite.
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§ECTION 2. INITIAL. REVIEW OF BASIC CABLE RATES
(a) Notice. Upon the adoption of this Ordinance and the certification of the City
�. by the FCC, the City shall immediately notify all cable operators in the City, by certified
mail, return receipt requested, that the City intends to regulate subscriber rates
charged for the basic service tier and associated equipment as authorized by the Cable
Act of 1992.
(b) Cable Operator Response. Within thirty (30) days of receiving notice from
the City, a cable operator may file with the City its current rates for the basic service tier
'F and associated equipment and any supporting material concerning the reasonableness
of its rates.
(c) Expedited Determination and Public Hearing.
(1) If the City Council is able to expeditiously determine that the cable
El. operator's rates for the basic service tier and associated equipment are within the
FCC's reasonable rate standard, as determined by the applicable benchmark, the City
Council shall:
(A) Hold a public hearing at which interested persons may
express their views; and
(B) Act to provide the rates within thirty (30) days from the
date the cable operator filed its basic cable rates with the City.
(2) If the City Council takes no action within thirty (30) days from the date
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the cable operator filed its basic cable rates with the City, the proposed rates will
continue in effect.
(d) Extended Review Period.
(1) If the City Council is unable to determine whether the rates in issue
are 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 shall, within thirty (30) days
from the date the cable operator tiled its basic cable rates with the City and by adoption
of a formal resolution, invoke 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 a rate is within the FCC's reasonable rate standard; or
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�y��. - Av }"y+nt,C�+ af:^;},j �< r`k,v2�� p{1�°(Tt.G4`5'�'' Y�Y� `7:f t�14+mot•.^ 'x°�'7f�'` :e•}�1 1 MCS+r:7e'7'E'F,..G.fra ry+W;•'•r'- ..�'.(B) One Hundred Fifty (150) days if the cable operator has
submitted a cost-of-service showing seeking to justify a rate above the
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applicable licable benchmark.
(2) If the City 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
d ^:4 end of the period requesting the cable operator to keep accurate account of all
amounts received by reason of the proposed rate and on whose behalf the amounts are
paid.
(e) Public Hearing. During the extended review period and before taking action
on the proposed rate, the City Council shall hold at least one public hearing at which
$> interested persons may express their views and record objections.
(f) Qbiections. An interested person who wishes to make an objection to the
j proposed initial basic rate may request the City Secretary to record the objection during
the public hearing or may submit the objection in writing anytime before the decision
:- resolution is adopted. In order for an objection to be made part of the record, the
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objector must provide the City Secretary with the objector's name and address.
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(g) Benchmark Analysis. If a cable operator submits its current basic cable rate
schedule as being y
r gin compliance with the FCC's reasonable rate standard the City Council shall review the rates using the benchmark analysis in accordance with the
standard form authorized by the FCC. Based on the City Councils findings, the initial
basic cable rates shalt be established as follows:
(1) If the current basic cable rates are below the benchmark, those rates
a shall become the initial basic cable rates and the cable operator's rates will be capped
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b :. at that level.
(2) If the current basic cable rates exceed the benchmark, the rates shall
be greater than the cable operator's per channel rate on September 30, 1992, reduced
s' by ten percent (10%), or the applicable benchmark, adjusted for inflation and any
change in the number of channels occurring between September 30, 1992, and the
initial date of regulation.
(3) If the current basic cable rates exceed the benchmark, but the cable
operators per channel rate was below the benchmark on September 30, 1992, the
initial basic cable rate shall be the benchmark, adjusted for inflation.
(h) Cost-of-Service Showing. If a cable operator does not wish to reduce the
rates to the permitted level, the cable operator shall have the opportunity to submit a
cost-of-service showing in an attempt to justify an initial basic cable rates above the
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FCC's reasonable rate standard. The City Council will review a cost-of-service
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submission pursuant to FCC standards for cost-of-service review. The City Council
may approve initial basic cable rates above the benchmark if the cable operator makes
j the necessary showing; however, a cost-of-service determination resulting in rates
below the benchmark or below the cable operator's September 30, 1992, rates minus
ten percent (10%), will prescribe the cable operator's new rates.
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(i) Decision.
i, (1) By Formal Resolution. After completion of its review of the cable
operator's proposed rates, the City Council shall adopt its decision by formal resolution.
The decision shall include one of the following:
(A) If the proposal is within the FCC's reasonable rate
standard or is justified by a cost-of-service analysis, the City Council shall
approve the initial basic cable rates proposed by the cable operator; or
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(B) If the proposal is not within the FCC's reasonable rate
standard and the cost-of-service analysis, if any, does not justify the
proposed rates, the City Council shall establish initial basic cable rates
that are within the FCC's reasonable rate standard or that are justified by
a cost-of-service analysis.
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(2) Rollbacks and Refunds. If the City Council determines that the initial
basic cable rates as submitted exceed the reasonable rate standard or that the cable
operator's cost-of-service showing justifies lower rates, the City Council may order the
rates reduced in accordance with Paragraph (g) or (h) above, as applicable. In
addition, the City Council may order the cable operator to pay to subscribers, refunds
of the excessive portion of the rates with interest (computed at applicable rates
published by the Internal Revenue Service for tax refunds and additional tax
payments), retroactive to September 1, 1993. The method for paying for any refund
'R and the interest rate will be in accordance with FCC regulations as directed in the City
Council's decision resolution.
(3) Statement of Reasons for Decision and Public Notice. If rates
proposed by a cable operator are disapproved in whole or in part, or if there were
objections made by other parties to the proposed rates, the resolution must state the
reasons for the decision and the City Council must give public notice of its decision.
Public notice will be given by advertisement once in the official newspaper of the City.
(j) Appeal. The City Council's decision concerning rates for the basic service
tier or associated equipment, may be appealed to the FCC in accordance with
Ij applicable federal regulations.
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SECTION 3. REVIEW OR-REQUEST FOR INCREASE
IN 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 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. This notice may not be given more often than annually and not until at
lease one year after the determination of the initial basic cable rates.
(b) Expedited Determination and Public Hearing.
(1) If the City Council is able to expeditiously determine that the cable
operator's rate increased request for basic cable service is within the FCC's reasonable
rate sta
ndard, as determined by the applicable price cep, 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 within thirty (30) days
from the date the cable operator filed its request with the City.
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(2) If the City Council takes no action within thirty (30) days form the date
the cable operator filed its request with the City, the proposed rates will go into effect.
(c) Extended Review Period.
(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, involve the following additional periods of time, as applicable, to
make a find 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 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
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.,. 1., amounts received by reason of the proposed rate increase and on whose behalf the
amounts are paid.
(d) Public Hearing. 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.
' (e) Objections. An interested person who wishes to make an objection to the
proposed rate increase may request the City Secretary to record the objection during
the public hearing or may submit the objection in writing anytime before the decision
resolution is adopted. In order for an objection to be made part of the record, the
objector must provide the City Secretary with the objector's name and address.
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(f) Delayed Determination. 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.
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o (g) Price ;ag Analysis. If a cable operator presents its request for a rate
, :. increase as being in compliance with the FCC's price cap, the City Council shall review 3
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:
t , (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.
E (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
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and order an increase that is in compliance with the price cap.
(h) 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
shall review the submission pursuant to the FCC standards for cost-of-service review.
The City council may approve a rate increase 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
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the cable operator's new rate.
(i) Decision. The City Council's decision concerning the requested rate F
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
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Secretary to record the objection or may be submitted in writing at anytime before the
decision resolution is adopted.
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0) Re unds.
(1) The City Council may order refunds of subscribers' rate payments
with interest it
(A) The City council was unable to make a decision within
the extended time period as described in Paragraph (c) above; and
(B) The Cable operator implemented the rate increase at
the end of the extended review period; and
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(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 increased by acost-of-service showing, the City
Council disapproves any portion of the rate increase.
(2) The method of paying an refund and the interest rate will be in
t accordance with FCC regulations as directed in the City Council's decision resolution.
t' (k) Appeal. 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.
Ft. SECTION 4. CABLE OPERATOR INFORMATION
t (a) City May Reguire.
(1) In those cases when the cable operator has submitted initial rates or
' proposed an increase that exceeds the reasonable rate standard, the City Council may
require the . cable operator to produce information in addition to that submitted,
including proprietary information, if needed, to make a rate determination. In these
cases, a cable operator may request the information be kept confidential in accordance
with this section.
(2) In cases where initial or proposed rates comply with the reasonable
rate standard, the City Council may request additional information only in order to .
document that the cable operator's rates are in accord with the standard.
' {b) Request for Confidentiality.
(1) A cable operator submitting information to the City Council ,may
request in writing that the information not be made routinely available for public
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inspection.
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' inspection. A copy of the request shall be attached to and cover all of the information
f; and all copies of the information to which it applies.
(2) If feasible, the information to which the request applies shall be
physically separated from any information which the request does not apply. If this is
not feasible, the portion of the information to which the request applies shall be
identified.
(3) Each request shall contain a statement of the reasons for withholding
inspection and a statement of the facts upon which those reasons are based.
(4) Casual requests which do not comply with the requirements of this
subsection, shall not be considered.
(c) City Council Action. Requests which comply with the requirements of
Subsection (b), will be acted upon by the City Council. The City Council will grant the
request if the cable operator presents by a preponderance of the evidence, a case for
nondisclosure consistent with applicable federal regulations. If the request is granted,
the ruling will be placed in a public file in lieu of the information withheld from public
inspection. If the request doe snot present a case for nondisclosure and the City
Council denies the request, the City Council shall take one of the following actions:
(1) If the information has been submitted voluntarily without any direction
from the City, the cable operator may request the City return the information without
considering it. Ordinarily, the City will comply with this request. Only in the Unusual
instance that the public interest so requires, will the information be made available for
public inspection.
(2) If the information was required to be submitted by the City Council,
the information will be made available for public inspection.
(d) Appeal. If the City Council denies the request for confidentiality, the cable
operator may seek review of that decision from the FCC within five (5) working days of
the City Council's decision, and the release of the information will be stayed pending
review.
SECTION 5. AUTOMATIC RATE ADJUSTMENTS
(a) Annual Inflation Adiustment. In accordance with FCC regulations, the cable
operator may adjust its capped base per channel rate for the basic service tier annually
by the final GNP-PI index.
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(b) Other External Costs.
(1) The FCC regulations also allow the Gable operator to increase its rate
for the basic service tier automatically to reflect certain external cost factors to the
extent that the increased in cost of those factors exceeds the GNP-PI. These factors
include retransmission consent fees, programming costs, state and local taxes
applicable to the provision of cable television service, and costs of franchise
requirements. The total cost of an increase in a franchise fee may be automatically
added to the base per channel,rate, without regard to its relation to the GNP-PI.
(2) For all categories of external costs other than retransmission consent
and franchise fees, the starting date for measuring changes in external costs for which
' channel to may be adjusted will be the date on which the basic
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service tier becomes subject to regulation or May 15, 1994, whichever occurs first. The
permitted per channel charge may not be adjusted for costs of retransmission consent
<µ fees or changes in those fees incurred before October 6, 1994.
(c) Notification and Review. The cable operator shall notify the City at least
thirty (30) days in advance of a rate increased based on automatic adjustment items.
The City shall review the increase to determine whether the item or items qualify as
'! automatic adjustments. If the City makes no objection within thirty (30) days of
receiving notice of the increase, the increase may go into effect.
G SECTION 6. ENFORCEMENT
(a) Refunds. The City may order the cable operator to refund to subscribers a
rr portion of previously paid rates under the following circumstances:
x (1) A portion of the previously paid rates have been determined to be in
excess of the permitted tier charge or above the actual cost of equipment; or
(2) The cable operator has failed to comply with a valid rate order issued
by the City.
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