§ 33. Rates.

(a)

The rates and charges for television and radio signals distributed hereunder shall be fair and reasonable and no higher than necessary to meet all costs of service (assuming efficient and economical management), including a fair return on the original cost, less depreciation, of the properties devoted to such service (without regard to any subsequent sale or transfer price or cost of such properties).

(b)

The city council shall have the power, authority and right to cause the grantee's rates and charges to conform to the provisions of subsection (a) hereof, and for this purpose, it may deny increases or order reductions in such rates and charges when it determines that in the absence of such action on its part, the grantee's rates and charges or proposed increases in rates and charges will not conform to the said subsection (a).

(c)

By its acceptance of this franchise the grantee specifically grants and agrees that its rates and charges to its subscribers for television and radio signals shall be fair and reasonable and no higher than necessary to meet all its necessary costs of service (assuming efficient and [economical] management), including a fair return on the original cost, less depreciation, of its properties devoted to such service (without regard to any subsequent sale or transfer price or cost of such properties).

(d)

By its acceptance of this franchise the grantee further specifically grants and agrees that the city shall have the power, authority and right to cause the grantee's rates and charges to conform to the provisions of subsection (c) hereof, and for this purpose the council may deny increases or order reductions in such rates and charges when it determines that in the absence of such action on its part, the grantee's rates and charges or proposed increased rates and charges will not conform to the said subsection (c).

(e)

However, no action shall be taken by the city council with respect to the grantee's rates under this section until the grantee has been given reasonable notice thereof and an opportunity to be heard by the council with regard thereto.

(f)

The following rates and charges are hereby authorized for service under this franchise and shall not be changed by the grantee without prior approval by the city council:

(1)

Initial tap-in and connection charges: Residential—first set, ten dollars ($10.00), each additional set, seven dollars and fifty cents ($7.50); monthly charge—eight dollars ($8.00) first set, one dollar and fifty cents ($1.50) each additional set.

(2)

Motels—installation charge, fifty dollars ($50.00) (provided motel has existing wiring). If the motel does not have an existing system, thirty dollars ($30.00) per room installation charge; monthly charge—One dollar ($1.00) per room.

(3)

The service shall be monthly and a subscriber may discontinue at the end of any month without further obligation.

(g)

The grantee shall receive no consideration whatsoever for or in connection with its service to its subscribers other than in accordance with this section.

(h)

If in the future, the federal government and the State of Alabama [regulate] the rates of the grantee for the service provided for in this franchise, this section shall be of no effect during such state [sic] regulations to the extent of any conflict therewith.

(Ord. No. 298, § 4, 7-7-80)