Sec. 10-120. - Background and purpose.
Sec. 10-121. - Full regulatory power reserved.
Sec. 10-122. - Procedures for implementing regulation of basic cable service.
Sec. 10-123. - Consultant and costs.
Sec. 10-124. - Application of the requirements of the article.
Secs. 10-125—10-129. - Reserved.
Sec. 10-120. - Background and purpose.
(a)
On the nineteenth day of November, 1979, the town council of Chapel Hill, North Carolina ("council") passed and adopted Ordinance No. 79-O-66 granting to Village Cable Inc. the nonexclusive right to construct, own, and operate a cable television system in the town. The franchise is now held by Time-Warner Cable, L.P. ("grantee").
(b)
The Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act") was enacted on October 5, 1992, and became effective on December 4, 1992. The 1992 Cable Act amends the Cable Communications Policy Act of 1984 and, in particular, Section 623 (47 U.S.C. 543) governing the regulation of rates charged by cable television operators.
(c)
On April 1, 1993, the Federal Communications Commission ("FCC") adopted rate regulations pursuant to the 1992 Cable Act. These FCC rate regulations were released May 3, 1993, and became effective September 1, 1993.
(d)
Pursuant to 47 C.F.R. Part 76.900, Subpart N, Section 76.910, on the first day of September, 1993, the town submitted FCC Form 328, Certification for Local Franchising Authorities, to the FCC via registered mail, return receipt requested. Pursuant to Section 76.910, the date on the return receipt, September 3, 1993, is to be considered the date filed. A copy of FCC Form 328 was also served on grantee on September 1, 1993, the same day it was submitted to the FCC.
(e)
Pursuant to Section 76.910, the town's certification becomes effective thirty (30) days after the date filed.
(f)
In adopting this article, the town reviewed applicable FCC regulations governing the basic service tier and provided a reasonable opportunity for consideration of the views of interested parties.
(g)
This article will govern the procedures to be undertaken by the town for the regulation of grantee's cable television rates pursuant to the 1992 Cable Act and the regulations of the FCC.
(Ord. No. 93-10-25/O-1; Ord. No. 96-6-24/O-5.2, § 2)
Sec. 10-121. - Full regulatory power reserved.
All rates and charges for basic cable service and any other cable programming services, as defined by the 1992 Cable Act and applicable FCC regulations, shall, to the extent permissible, be subject to regulation by the town in a manner provided by this article. This article shall apply to all cable television system operators in the town. The grantee and/or any other operator of a cable television system operating in the town shall be subject to the rate regulation provisions provided for herein, and those of the FCC at 47 C.F.R., Part 76.900, Subpart N.
The town reserves the right to amend this article from time to time consistent with the requirements of the FCC, and state and federal law.
(Ord. No. 93-10-25/O-1; Ord. No. 96-6-24/O-5.2, § 2)
Sec. 10-122. - Procedures for implementing regulation of basic cable service.
(a)
The council hereby adopts and shall follow the rules relating to cable rate regulation promulgated by the FCC at 47 C.F.R., Part 76.900, Subpart N.
(b)
Upon adoption of this article, the town manager will send to grantee and each operator of a cable television system in the town, via certified mail, return receipt requested, a written notice, which shall include a copy of this article and the completed FCC Form 328.
(c)
Within thirty (30) days after receipt of the notice referenced in subsection (b) above, grantee and any other cable television operator shall have thirty (30) days to respond with rate and benchmark information utilizing FCC Form 393, Determination of Maximum Initial Permitted Rates For Regulated Cable Services and Actual Cost of Equipment.
(1)
If the initial rates and/or any subsequent rate increases are within the FCC standards, the rates will be effective thirty (30) days after submission.
(2)
If the council is unable to determine whether the rate in issue is within the FCC's standards, based on the material before it, or if the grantee or any other cable operator has submitted a cost-of-service showing seeking to justify a rate above the FCC's reasonable rate level, the town may take an additional period of time to make a final determination and toll the effective date of the proposed rates for a commensurate period.
a.
The council may take an additional ninety (90) days if it needs more time to ensure that a rate is within the FCC's rate standards.
b.
The council may take an additional one hundred fifty (150) days to evaluate a cost-of-service showing seeking to justify a rate above the reasonable rate level.
c.
The council must issue a brief written decision regarding its invocation of the additional time period.
(3)
If no action is taken within the above referenced time periods, the proposed rates will go into effect, subject to subsequent refund orders if the council later issues a decision disapproving any portion of the proposed rates.
(4)
In all cases, the council will issue a written decision to approve the rate schedule, disapprove the rate schedule or continue for review.
(5)
If rates are in excess of the FCC's standards, the rates may be reduced by the town pursuant to applicable FCC regulations.
(d)
After the initial rate schedule procedures are followed, as described in section, grantee and/or any other cable operator shall, in conjunction with each change in the rates and charges applicable to basic cable service, conform to the standards of the FCC. Before any rate change is effective, grantee and/or any other cable operator shall notify the town manager of its requested rate change by giving the town manager thirty (30) days advance written notice before the change is effective and by providing the town with its rates and applicable information pursuant to FCC regulations.
(e)
To the extent specifically permitted by federal law and applicable FCC rules, grantee and/or any other cable operator shall be permitted to appeal to the FCC for a review of the decision of the town.
(Ord. No. 93-10-25/O-1; Ord. No. 96-6-24/O-5.2, § 2)
Sec. 10-123. - Consultant and costs.
(a)
The town may utilize a rate consultant to advise it on proposed rate changes and to assist it in the procedures and the standards for review adopted by the FCC. A rate consultant may be any person who has sufficient background and experience, in the sole opinion of the town, to properly evaluate and analyze rates and charges.
(b)
All costs for the review of initial rates or rate changes shall be paid by the cable operator upon demand of the town, unless contrary to applicable rules of the FCC governing these procedures or unless otherwise specifically preempted by state or federal law. The costs shall include, but not be limited to, rate consultants, attorney's fees and the reasonable value of services (as determined by the town) rendered by the town or any town employees, agents or representatives of the town.
(Ord. No. 93-10-25/O-1; Ord. No. 96-6-24/O-5.2, § 2)
Sec. 10-124. - Application of the requirements of the article.
The requirements described in this article are applicable to the grantee and all operators of cable television systems within the town subject to rate regulation according to the 1992 Cable Act and applicable FCC rules.
(Ord. No. 93-10-25/O-1; Ord. No. 96-6-24/O-5.2, § 2)