HomeMy WebLinkAbout93-11-5031299
ORDINANCE NO. 93-11-5031
AN ORDINANCE ABOLISHING AND RECREATING SECTION 7
AND AMENDING SECTION 10 OF CHAPTER 7 1/2, CABLE COMMUNICA-
TIONS, OF THE CODE OF ORDINANCES OF THE CITY OF PADUCAH,
KENTUCKY
WHEREAS, the City of Paducah desires to regulate
basic cable rates, in compliance with the Cable Television
Consumer Protection and Competition Act of 1992 ("Cable
Act") and the Rules of the Federal Communications Commission
("FCC")
BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. That Section 7, Subscriber rates,
charges and refunds, is hereby abolished and recreated to
read as follows:
"(a) Rates Subject to Local Regulation.
"Rates subject to regulation by the City include
rates for the basic cable television service plus the leased
equipment necessary for the rendition of basic service
(including converter boxes, remote control units, and
wiring) and installation and extra set charges.
"(b) Rate Changes and Discrimination.
11(1) Unless approved by the City and to the
extent consistent with federal law, no franchisee may in its
rates or charges, or in'the availability of the services or
facilities of its system, or in any other respect, make or
grant undue preferences or advantages to any subscriber or
potential subscriber to the system, including preferences
1' based on the geographic location of the subscriber, or to
any user or potential user of the system, nor subject any
such persons to any undue prejudice or any disadvantage.
Notwithstanding the foregoing, a franchisee may afford
reasonable discounts for senior citizens and other economi-
cally disadvantaged groups.
11(2) Rates may be changed by the franchisee
following a minimum 30 days prior notice to the City and the
subscribers.
"(c) Rate Regulation.
11(1) Upon certification of the City by the FCC to
institute rate regulation, the following procedures shall
apply to those rates that are subject to local regulation.
"a. When the City, on recommendation from
the Paducah Cable Communications Authority, desires to
initially review the basic service rates and other rates
subject to local regulation under federal law, it shall
notify the franchisee to file its schedule or rates with the
Paducah Cable Communications Authority within thirty (30)
days of the receipt of such notice, together with the data
and information necessary to determine whether the rates
meet the FCC rate standards. Such supporting information
shall include, at minimum, the completed worksheets of FCC
Form 393 and all relevant supporting information and notes.
"b. When the franchisee desires to increase
rates subsequent to the initial rate review, it shall submit
to the Paducah Cable Communications Authority the revised
rate schedule, together with data and supporting information
necessary to determine whether the new rates meet the FCC
rate standards. Before filing for such rate increases, the
franchisee shall give notice to its subscribers as required
herein, and by FCC rules.
300
"c. If the Paducah Cable Communications
Authority finds that the rates submitted by the franchisee
are consistent with FCC rate standards following the pro-
cedure specified below, it shall so notify the franchisee
within thirty (30) days of the filing of the rates, and any
rate increases will become effective on the 31st day after
their filing. If the Authority cannot find the rates are
reasonable under the FCC standards within the thirty (30)
day period, it shall so notify the franchisee and may issue
a brief order postponing the effectiveness of any rate
increases for up to an additional ninety (90) days; pro-
vided, however, if the franchisee is depending on a cost of
service study to demonstrate reasonableness, the Authority
may postpone the effectiveness of any rate increase for up
to an additional 150 days.
"(2) Members of the public and other interested
parties may file written comments with the Paducah Cable
Communications Authority within fourteen (14) days of the
date a franchisee files its rates for initial review or for
review of a rate increase. The Authority shall schedule a
public hearing on rates before it for review following
appropriate advance announcement to the public and the
franchisee. The hearing may be before the Mayor and Board
of Commissioners, or it may delegate the Authority to take
public testimony and report to the Mayor and Board of Commis-
sioners. Whenever the Mayor and Board of Commissioners
disapprove rates or rate increases, in whole or in part, or
approve rates over the objections of interested parties,
they shall do so by written order explaining their reasons
and provide public notice thereof.
"(d) Remedies.
"Whenever the Mayor and Board of Commis-
sioners disapprove a schedule of rates upon initial review
or subsequent rate increases, they may employ any
combination of the following remedies:
11(1) A prospective reduction in rates may be
ordered consistent with FCC rate standards or the results of
a cost of service study.
"(2) New rates may be prescribed by the City,
upon recommendation of the Paducah Cable Communications
Authority, to bring rates found to be unreasonable into
compliance with FCC rate standards or a cost of service
study.
"(3) Upon recommendation of the Paducah Cable
Communications Authority, the City may, consistent with
subsection (4) below, order the franchisee to refund to
subscribers an amount by which rates are found to be un-
reasonable under any of the following circumstances:
"a. As part of the initial review of rates
"b. When the franchisee has failed to comply
with a rate decision and has continued to charge unreason-
able rates; or
"c. Where the City has tolled a prospective
rate increase for 90 to 150 additional days (as applicable)
and the rate increase later found to be unreasonable has
gone into effect.
"(4) When refunds may become applicable under
subsection (d) (3) above, the City shall issue a brief order
when the tolled rates go into effect directing the fran-
chisee to keep accurate account of all amounts paid by
individual subscribers relative to the rates in question (an
"accounting order"). The period for which refunds may be
301
ordered shall not exceed one year or extend back in time
before September 1, 1993, whichever period is less. Before
ordering a refund, the City must give the franchisee prior
notice and an opportunity to make a presentation, either
orally in a hearing context or by paper filings. Refunds
shall include interest computed at the rate used by the
Internal Revenue Service for refunds and additional tax
payments. Normally, refunds shall be made to individual
subscribers that paid the unreasonable charges. However,
where no accounting order has been issued or the franchisee
can demonstrate that such specific refunds will entail undue
burden compared with the amount of the refund, the City may
authorize a one-time credit to all subscribers of the class
that paid the unreasonable rates.
"(e) Conflicts and Interpretations.
"If any provision in this section shall be
determined to be in conflict with a rule, regulation, policy
or order of the FCC, then in that circumstance the FCC
requirement shall take precedence over the requirement of
this section. If any requirement of this section shall have
ambiguity in interpretation or in applicability, it shall be
interpreted in a way that is consistent with FCC rules,
requirements and opinions.
SECTION 2. That Section 10, Paducah Cable
Communications Authority, is hereby amended by creating
subsection (c) (18) to read as follows:
18 In connection with the City's regulation of
cable rates under Section 7 above, the Cable Authority shall
be delegated the authority to perform the following
functions:
"a. To give notices to the franchisee on behalf
of the City concerning rate regulation and receive all
notices and filings from the franchisee relative to such
regulation.
"b. Analyze the data submitted by the franchisee
in support of rates, seek additional information from the
franchisee as necessary, and, where appropriate, issue
orders tolling the effectiveness of rate increases and/or
imposing an accounting order."
"c. Schedule and conduct public hearings relative_
to an initial review of rates subject to City regulation,
and subsequent changes to such rates, and receive comments
thereto. both written and oral.
"d. Make recommendations to the Mayor and Board
of Commissioners for final City action concerning an initial
review of rates or subsequent rate changes, including the
drafting of a recommended decision relevant to such final
action, as appropriate.
".e. Perform all administrative tasks concerning
rate regulation and take all actions on behalf of the City
relevant thereto other than final action on the approval or
1 of rates
tion of remedies.
"f. Provide general advice to the Mavor and Board
of Commissioners relative to rate regulation and the
procedures related to such regulation."
SECTION 3. This ordinance shall be read on two
separate days and will become effective upon publication
pursuant to KRS Chapter 424.
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302
ATTEST:
CiieClerk
Introduced by the Board of Commissioners October 26, 1993
Adopted by the Board of Commissioners November 9, 1993
Recorded by Lenita Smith, City Clerk, November 9, 1993
Published by The Paducah Sun �)'a71. t-1, !q q3
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