Sec. 430.063. - Procedure for rate adjustment and hearing.
To the extent that the procedure for regulation of a rate or charge is not governed by federal or state regulations, the procedure set forth in this section shall apply.
(a) An application for change in a rate or charge, or approval of a schedule of rates and charges shall be filed in accordance with procedures established in this section. The application shall be supported by statistical and other proof indicating that the existing rate is inadequate and unreasonable and that the proposed changes therein are required to enable the company to render service to fulfill its obligations under this chapter and to derive a reasonable profit therefrom. The application shall also include a statement of facts, opinions, substantiating documents and exhibits supporting the change requested. Notwithstanding the above, the specification of procedures in this ordinance does not prohibit the city and a company from agreeing to a different procedure for reviewing a particular rate.
(b) The company's petition for a rate change shall include the following financial reports which shall reflect the operations of the Saint Paul system only:
(1) Balance sheet;
(2) Income statement;
(3) Statement of sources and applications of funds;
(4) Detailed supporting schedules of expenses, income, assets and other items as may be required; and
(5) Statement of current and projected subscribers and penetration.
(c) The company shall answer all city requests for information.
(d) The company's accounting records applicable to the cable system shall be available for inspection by the city at all reasonable times. The city shall have access to records of financial transactions for the purpose of verifying burden rates or other indirect costs prorated to the Saint Paul operation. The documents listed above shall include sufficient detail and/or footnotes as may be necessary to provide the city with the information needed to make accurate determinations as to the financial condition of the system. All financial statements shall be certified as accurate by an officer of the company. The company shall bear the burden of demonstrating the justness, reasonableness and accuracy of the costs.
(e) The city may investigate any rate or charge of the company at any time except as state or federal law otherwise provides, and may require the company to justify any rate subject to investigation. If, after investigating the rate, the city determines the rate is not just and reasonable, it may establish the appropriate rate. The city may order refunds of excess amounts collected from subscribers.
(f) The council shall consider the following factors in approving or disapproving a rate or charge, and may consider such other factors relevant to the establishment of a rate:
(1) The ability of the company to render system services and to derive a reasonable profit therefrom under the existing rate schedule and under the proposed rate schedule;
(2) The revenues and profits derived from system services;
(3) The efficiency of the company;
(4) The quality of the service offered by the company;
(5) The costs incurred by the company;
(6) The original cost of the system less depreciation;
(7) A fair rate of return with respect to the cost of borrowing and the rates of return on investments having similar risks to that of cable communications;
(8) The extent to which the company has adhered to the terms of this agreement;
(9) Fairness to city residents, subscribers and users;
(10) Capital expenditures by the company in providing updated technology and services to subscribers; and
(11) Such other factors as council is required to consider.
(g) The council will not consider any valuation based upon the franchise right or the company's goodwill. Neither the value of the franchise nor the value of the company's goodwill shall be amortized as an expense nor shall a return be paid on them. Furthermore, the council will not consider any rate change application based, in whole or in part, on increased cable system value due to any type of transfer or sale.
(h) Upon receipt of a request for changes in rates under this section, the city shall have thirty (30) days within which to determine whether it wishes to review more fully the request for changes. In the event that the city takes no action within thirty (30) days, the company may file in the office of the city clerk and the office of cable communications a new or amended rates schedule which shall be effective and may be charged on the tenth day (or such later date that the company shall designate on its filing) after its filing and shall continue in effect until approved or denied by resolution or until deemed approved consistent with the charter.
(Ord. No. 17364, § 16, 6-17-86; C.F. No. 93-1829, § 2, 3-30-94; C.F. No. 98-277, § 1, 4-29-98)