HomeMy WebLinkAbout~Master - Regulating Community Antenna Television Systems {4F
;( ORDINANCE NO. 2435 .
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H AN ORDINANCE REGULATING THE ESTABLISHMENT, CONSTRUCTION, OPERATION ,
;( AND MAINTENANCE OF COMMMUNITY ANTENNA TELEVISION SYSTEMS IN THE
CITY OF MIES, IOWA.
±i Section 1. Be it ordained by the City Council for the
1City of Ames , Iowa, that Chapter 36 of the Municipal Code of the
�iCity of Ames be amended by adding thereto a new article as follows
ARTICLE XI
COMMUNITY ANTENNA TELEVISION SYSTEMS
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Section 36-11001 - Definitions.
For i� i
For the purpose of this Article, the following terms , 4
'4phrase6 , words , and their derivations shall have the meaning given )
herein. When not inconsistent with the context, words used in theE
present tense include the future, words in the plural number in-
�iclude the singular number , and words in the singular number includ
�Ithe plural number. The word ' shal=_' is always mandatory and not
merely directory.
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I (1) ' City' is the City of Ames , Iowa.
(2) ' Council ' is the City Council of Ames , Iowa. i
(3) ' Community Antenna Television System' , ' CATV' , or
I - System' means a system of coaxial cables or other electrical
; conductors and equipment used or to be used primarily to receive {
! television or radio signals directly or indirectly off the air
land to transmit them via cable to subscribers for a fixed or
Ivariable fee, including the receip-'z, transmission, and distribution
1of voices , sound, signals , pictures , visual images , or any other
(, type of closed circuit transmission by means of electrical im-
tl pulses.
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1corporation,
i (4) 'Person' is any person, firm, partnership, associati n,
company or organization of any kind.
(5) ' Grantee' is any person granted a franchise in acc-
fordance with the provisions of this Article.
(6) 'Local Gross Revenues ' include only those gross rev-
+ enues of the Grantee attributable to users within the City includ-
If
; ing , but not limited to, monthly subscriber revenue, advertising
; revenue which originates or terminates locally , and any new local j
Iservices provided by Grantee on said CATV system, provided, how- I
fever, that revenue resulting from installation and relocation i
; charges shall not be deemed ' local gross revenues' for the purpose ]
(yof computing any franchise fee pursuant to this Article. ' Local
! Gross Revenues ' shall not include proceeds from any service, insta. i-
. ation, facilities or signal carriage which may originate or terminate
1� outside the State of Iowa.
(7) ' User' is any person who buys any of the Grantee' s
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channels for broadcasting or originating programs.
1i1 (8) ' Subscriber ' is a person who pays a fee to, or pur- �•
1! chases equipment from a grantee fcr the purpose of receiving trans-
missions carried by a CATV system.
(9) ' Franchise' is the non-exclusive authorization to
i erect, install, construct, reconstruct, replace, remove, repair,
maintain and operate in or upon, under , above, across and from the
j streets , avenues, highways , sidewE_lks , bridges and other public
ways , easements, and rights-of-way, as now existing and all ex-
!¢!i tensions thereof and additions thereto, in and belonging to the
i� City (hereinafter sometimes called 'municipal properties ' ) , all
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! necessary poles , wires , cables , coaxial cables, transformers
11amplifiers , underground conduits , manholes and other television
�� and/or radio conductors and fixtures for the sole purpose of the
] maintenance and operation in the City of a CATV system for the
lorigination, interception, sale and distribution of television
, and radio signals , all in strict accordance with the laws , ordi-
nances and regulations of the United States of America, the State
�jof Iowa, and the City , as now existing or hereafter adopted or
(I' amended, subject to the reservation in the City of the right to
;! grant a similar or same use, simultaneously, to any other person;
Band, subject at all times to all lawful exercise of the police
I power of the City of Ames and to such reasonable regulations as they
J! City and/or the Council shall hereinafter provide, and compliance
with all applicable state and federal regulations ; and, including
by way of specification but not limitation, a rule prohibiting the ,
ruse of the City streets or alleys for the installation of addition-f
�; al poles or underground cable, and may include regulations re-
�; quiring all or part of said transmission system to be installed
and maintained underground.
1 Section 36-11002 - Franchise Required for CATV System.
No person shall establish and operate a CATV system withi
lithe City except upon obtaining the grant of a franchise as defined?
(rand provided for in this Article. A franchise may be obtained by
{ making an application to the City Council in the form and manner
O provided for by this Article and if: the Council approves the
'! franchise applied for, the Council shall order that the matter of
!, the franchise be submitted to the vote of the electorate as requir d
�'• by Section 386. 3 , Code of Iowa 1971; or , the person seeking to
, obtain a franchise may proceed by petition of the property owners !
( of each voting precinct as is also provided for by Section 386. 3 ,
? Code of Iowa 1971 , but in either event the grantee of the franchise
and the system established shall be subject to all rules and re-
gulations provided for in this Article. !
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Section 36-11003 - Term of Franchise.
The franchise and the rights , privileges , and authority
1jthereby granted, subject to the provisions of this Article, shall
take effect and be in force from and after final approval thereof
Iiby vote of the electorate, as provided by law, and shall continue
in force and effect for a term of not more than 15 years , provided;
�ithat within 30 days after the date of voter approval of the fran-
chise , the grantee shall : I
i (a) File with the City Clerk its unconditional acceptance
{ of the Franchise and promise to corzply with and abide by all the
provisions , terms , and conditions, of this Article, and pay the fee
provided in Section 36-11016 hereof. Such acceptance and promise
shall be in writing duly executed and sworn to , by or on behalf of,
the Grantee before a Notary Public or other officer authorized by
law to administer oaths ;
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(b) File with the City the bonds and insurance provided
for herein which shall be approved by the City Attorney. Should
1 the grantee fail to comply with the above terms of this subsection]
{ within 30 days after voter approval , it shall acquire no rights ,
privileges , or authority under said franchise whatever.
Section 36-11004 - Rates �3nd Charges .
(1) The rates and charger for television and radio sig-
nals distributed hereunder shall be fair and reasonable and no
I,. higher than necessary to meet all costs of service (assuming eff-
icient 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) .
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(2) The City Council shall have the power , authority and
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right to cause the Grantee ' s rates and charges to conform to the
provisions of subsection 36-11004 (3) and (6) 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 increased
rates and charges will not conform to the said subsection 36-11004
(3) and (6) .
(3) A Grantee ' s 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 i
(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) .
(4) The City Council shall cause the Grantee ' s rates and
,charges to conform to the provisions of subsection ( 3) hereof,
and for this purpose the Council shall 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 (3) .
(5) However, no action shall be taken by the City Council
with respect to the Grantee ' s rates under this section until the i
Grantee has been given reasonable notice thereof and an opportunity
( to be heard by the Council with regard thereto .
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{ (6) The following maximum rates and charges are hereby
authorized for service under a Franchise and shall not be increased)
�by a Grantee without prior approval by the City Council :
(A) Standard Rates and Charges :
(1) Installation Charges :
(a) Initial tap-in and connection charges
f (TV and/or radio , residential or commercial)
f� $20 . 00
(b) Additional installation up to a total of four
at same location, each $5 .00
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i (c) Additional installation, five or more at same)
location: cost plus 10o j
(d) Disconnecting service - No Charge
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(e) Each repositioning at same location
�I ( ' relocation' ) : actual cost plus 100
If (2) Monthly Rates :
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} (a) First TV and `l'V and radio outlet, residential)
or commercial - $5 . 00
j (b) Additional TV and TV and radio outlets ,
each $1 . 50
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4 E} (c) Additional radio outlets , each $1 . 00
h� (B) Hotels , Motels , Rest Homes and Hospitals containing
not less than ten (10) rental units to which service
is provided:
(1) Cost of installation plus 100 . No charge for
disconnecting service
(2) Monthly Rates : $1 . 50 per TV and TV and radio
outlet
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(C) Multiple Dwelling Units (contained within one struc- !1
ture or a group of st=ructures located in one complex)
where all service billed to one customer : f
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(1) Cost of installation plus 10%
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��{ (2) Monthly Rates :
#f Monthly Charge per TV
+► Number of Dwelling Units Served and TV and Radio Outlet i
yUp to 5 Each dwelling unit shall
have same monthly rates
I� as provided in Section
' 36-11004 (6) (A)
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6 through 49 $3 . 50
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Ij 50 through 99 $3 . 00
100 and over $2. 50
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(7) A Grantee shall be permitted to require advance pay- 1
ilment for installation fees and for one (1) month' s advance service
ilfee. The Grantee shall require no other deposit, advance payment,
or penalty from any subscriber or potential subscriber without
approval of the Council. III
(8) A Grantee shall receive no consideration whatsoever
from its subscribers for or in connection with its service to its
subscribers other than in accordance with this section, without
approval of the Council.
(9) If , in the future, the State of Iowa or the United
States Government or any regulatory agency thereof regulates the
j! rates of a Grantee for the service regulated by this Article, this )
f( section shall be of no effect during such regulations to the extent
of any conflict therewith. 14
(10) A Grantee shall install and maintain, an adequate
switching device to allow the subscriber to choose between cable j
rand non-cable reception.
(11) A Grantee shall not , as to rates , charges , services ,
i+ facilities , rules , regulations or in any other respect, make or
ligrant any improper preference or advantage to any person nor
subject any person to any improper prejudice or disadvantage;
iprovided, however , this shall not be deemed to prohibit the
lestablishment of a graduated scale of charges and classified rate i
schedules to which any customer coming within such classification
} shall be entitled. i
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' Section 36-11005 - Flow-through of Refunds.
(1) If during the term of a franchise a Grantee receives (
refunds of any payments made for television or radio signals , it f
` shall , without delay , notify the City Council , suggest a plan for
l� flow-through of the refunds to its subscribers , and retain such
refunds pending order of the Council. After considering the plan I
submitted by the Grantee, the Council shall order the flow-through
Iiof the refunds to the Grantee ' s subscribers in a fair and equitabl
l l manner.
(2) If a Grantee receiver refunds of any payments made
l for television or radio signals , it= shall, without delay , notify
lithe City Council , suggest a plan for flow-through of the refunds
Ito its subscribers , retain the refunds pending order of the Council
and flow-through such refunds in accordance with the order of the j
Council.
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Section Subscriber i 36-11006 - Sbier Refunds
.b Refds on Termination of
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( Service.
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If any subscriber of a Grantee of less than three years
terminates service because of a Grantee' s failure to render servic
'! to such subscriber of a type and quality required by this Article
or if service to a subscriber of less than three years is termi-
nated without good cause (failure to pay for service for more than
i' three months shall be conclusively deemed to constitute ' good !
(► cause' ) or because the Grantee ceases to operate the CATV business
I1for any reason, except expiration of this franchise, the Grantee
`ishall refund to such subscriber an amount equal to the initial
tap-in and connection charges paid by him divided by 12 and
multiplied by a number equal to 12 minus the number of months
1 the subscriber has been on the system.
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Section 36-11007 - Faithful Performance Bond, Insurance
} and Indemnification Required.
f (1) A Grantee shall , concurrently with its acceptance ofl
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Ila franchise, file with the City Clerk and at all times thereafter
► maintain in full force and effect I-or the term of the franchise
or any renewal thereof, at Grantee ' s sole expense, a corporate
Isurety bond in a responsible company licensed to do business in
! Iowa, in the amount of ($500 , 000 . 00) renewable annually, and
11conditioned upon the faithful performance of Grantee and compli-
lance by Grantee with all provision: of this Article and upon
further condition that in the event Grantee shall fail to comply
with any one or more of the provisions of this Article, there
shall be recoverable jointly and severally from the principal and
11indemnification,
surety of such bond any damages or loss suffered by the City as
� a result thereof , including the fu__l amount of any compensation,
or cost of remova__ or abandonment of any property
jlof the Grantee, plus a reasonable allowance for attorneys ' fees
Il.iand costs , up to the full amount of the bond , said condition to
! be a continuing obligation for the duration of the franchise and
( any renewal thereof and thereafter until the Grantee has liquidate
hall of its obligations with the City that may have arisen from the
! acceptance of the franchise or renewal by the Grantee or from its
�lexercise of any privilege or right granted. The bond shall provide
that at least 30 days prior written notice of intention not to
renew, cancellation, or material change, be given to the City by
filing the same with the City Clerk. Notwithstanding the above
provisions of this subsection, the City Council may in its sole
i} discretion waive said bond or reduce the required amount thereof
f after three years of operation of CATV under a franchise, by the
Grantee, which the City Council shall find to have been satisfacto y.
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(2) Non-Waiver. Neither the provisions of this section,
! nor any bonds accepted by the City pursuant hereto, nor any damage
,' recovered by the City thereunder , shall be construed to excuse
unfaithful performance by a Grantee or limit the liability of the
; Grantee under a franchise for damages , either to the full amount
of the bond, or otherwise.
�l (3) Liability and Indemnification of City. Grantee shall
;l indemnify and hold the City of Ames harmless at all times during
�i the term of a franchise and it will pay all damages and penalties
I� which the City may be legally required to pay as a result of
!� granting a franchise. Such damages and penalties shall include,
but not be limited to, damages arising out of copyright infringe-
; ments and other damages arising out of the installation, operation
or maintenance of the CATV system, whether or not any act or
omission complained of is authorized, allowed , or prohibited by
ICI this Article.
Il A Grantee shall, at all times during the term of its
i� franchise, carry and require their contractors to carry :
j (a) Insurance in such forms and in such companies as shad
I be approved by the City Council to protect the City and Grantee
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from and against any and all claims , injury or damage to persons orj
property, both real and personal, caused by the construction, II
' erection, operation and maintenance of any structure, equipment,
1or appliance. The amount of such insurance shall be not less than
$500 , 000. 00 as to any one person and $1 , 000 , 000. 00 as to any one
ioccurrence for injury or death to persons and $250 , 000. 00 for
damages to property.
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j (b) Workmen' s Compensation Insurance as provided by the
laws of the State of Iowa as amended.
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(c) Automobile Insurance with limits of not less than
1 $500 , 000. 00/$1 , 000, 000. 00 of public! liability coverage and auto-
mobile property damage insurance with a limit of not less than
( $500, 000. 00 covering all automotivE! equipment.
4� All of said insurance coverage shall provide a ten (10)
Ilday notice to the City Clerk in thE� event of material alteration o
cancellation of any coverage afforc.ed in said policies prior to the
�idate said material alteration or cancellation shall become effec-
tive.
Copies of all insurance policies required hereunder shall
!! be furnished to and filed with the City Clerk prior to the commence-
ment of operations or the expiration of prior policies , as the case
fmay be.
A Grantee shall pay all rE�asonable expenses incurred by
the City in defending itself with regard to all damages , penalties or
Mother claims resulting from the acts of a Grantee , its assigns ,
{ employees , agents , invitees or othE!r persons . Said expenses shall
�iinclude all out-of-pocket expenses such as attorneys ' fees , and
Ishall include the value of any service rendered by the City Attorn y
�lor any other officers or employees of the City. I'
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(� Section 36-11008 - Number of Channels. i
I The Grantee ' s distribution system shall be capable of
�ilcarrying at least twenty television channels .
{ Section 36-11009 - Use of Channels .
(a) A Grantee may sell or use for program origination al]
Ichannels except those which he must carry under FCC regulations .
, The fees charged for use of such channels are to be set by the
�lGrantee for all but the public broadcast channels hereinafter
{!{ described.
(b) Advertising is allowed on the non-public broadcast
Hchannels ; provided, however, that Grantee shall not permit advert-
Rising for any candidate for any local political office or for any
'Iparty sponsoring such candidates to be carried on its channels
{, unless any other candidate for said office or any bona fide party , j
Ilas determined by the Council , interpreting all relevant FCC rules
jj and guidelines , or a party itself in case other parties so ad- i
Ivertise , be provided with comparable advertising time. The !
Council may, by regulation, specify the offices and parties covered
i1comparable hereunder and may specify what shall constitute the provision of
time.
(c) Grantee is prohibited from censoring any program `
which is cablecast; Grantee is expressly granted immunity from
�; any liability which might otherwise arise out of its failure to
Ij censor any program pursuant to this subsection.
I( Section 36-11010 - Access Channels .
A Grantee shall provide access channels , subject to
the regulations of the Federal Communications Commission, as
follows :
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(a) One specially designated, non-commercial public
access channel available on a first:-come, non-discriminatory
basis.
(b) One specially designated channel for use by the
Ames Community School District.
(c) One specially designated channel for use by the
City pursuant to the policies and directions of the City Council.
Section 36-11011 - Public Service Installations .
# (1) A Grantee shall, without charge for installation,
11maintenance, or service, make single installations of its standards
!� community antenna service facilitiE�s at each fire and police station,
i public and accredited private schools within the City that is not
more than two hundred (200) feet from Grantee' s existing service
facilities . A Grantee shall , without charge for installation, main-
tenance , or service, make single installations of its standard
Jcommunity antenna services to the City Hall and Public Library.
[ Five (5) such installations shall be provided to buildings for
liIowa State University. Such installations shall be made at such
�ireasonable locations as shall be rE�quested by the respective units ;
J� of government or educational institutions . Any charge for relocation
{� of such installations shall, however , be charged at actual costs .
If said facility is to be installed more than two hundred (200) felt
i( from Grantee ' s existing service facilities , any additional cost in
lcurred by the Grantee in making the installation shall be charged
at not more than cost plus 100. Additional installations at the
same location shall be made at cost:: plus 10o and the monthly rates
ifor such additional installations shall be not more than otherwise
provided.
(2) A Grantee shall establish and maintain a local studio
having such video tape and local production facilities as shall bej
l!Cnecessary and proper to support local origination of programs for
f� transmission over the system with Eiccess to the public through
( private and public organizations and bodies on a first come , first !
( serve basis subject to the regulations of the Federal Communications
Commission and the provisions of this Article.
(3) A Grantee shall establish and maintain within the City
lof Ames a local business office, which office shall be open for bu -
� iness between the hours of 8 : 00 a.m. and 5 : 00 p.m. , Monday through
Friday , except on holidays , and said office shall be appropriately
staffed to receive and answer all ;subscriber complaints . Grantee
shall make a monthly report to the City Council of all consumer
complainer , and the action taken to remedy the complaints . This
report shall state the names and addresses of the complaintants ,
the date the complaint was received, the nature of the complaint,
and the specific action taken to remedy each complaint.
i Section 36-11012 - Changes in Federal or State Regulation .
!(! A Franchise will be granted subject to the right of the
City or the Grantee to renegotiate the terms of the franchise at
any time after the effective date of the franchise upon thirty (30)1
' days ' notice if Federal or State regulations substantially alter I
ithe service, fees , costs , conditions or standards upon which the
; CATV system is to operate. If negotiations do not produce a
mutually satisfactory result, either party may require that an
arbitrator be chosen to resolve any differences , which arbitrator
shall be selected from a list provided by the American Arbitration '
{ Association if the parties do not agree upon another individual .
! Any arbitration award shall be enforceable in the appropriate
District Court. Nothing contained in this Section shall be
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11construed to prohibit the City from exercising its power and right
,!Ito amend this Article unilaterally .
Section 36-11013 - Other Business Activities .
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',, (1) Neither a Grantee nor any shareholder of a Grantee shall
engage in the business of selling , :repairing or installing televi-
sion receivers , radio receivers , or accessories for such receivers
within the City of Ames during the term of a franchise, and the
Grantee shall not allow any of its shareholders owning 25% or more �
of its stock to so engage in any such business except upon applica-!
,Rion to and approval by the Council; provided, however , that i
1inothing herein shall be deemed to prohibit a Grantee, at customer ' s
;request and without payment, from examining and adjusting a
customer ' s receiver set to determine whether reception difficulties+
'originate in said set or in Grantee ' s cable television system.
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i� (2) A franchise authorizes only the operation of a CATV i
system as provided for herein , and does not take the place of any
other franchise , contract, license or permit which the Council may
lawfully require of a Grantee .
(3) Prohibition of Pay TV. A Grantee is specifically
barred from originating or transmit.ing any television signals for
which an extra charge is made, except upon application to and
}approval by the Council. ,
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Section 36-11014 - Construction Standards and Requirements .
�t (1) All of the Grantee ' s plant and equipment, including but
not limited to the antenna site , head-end and distribution system,
Rowers , house connections , structures , poles , wire , cable, coaxial
I.cable , fixtures and appurtenances s?1all be installed, located,
erected, constructed, reconstructed , replaced, removed, repaired,
,imaintained and operated in accordance with good engineering
jfpractices , will be performed by experienced pole-line construction
Hcrews and so as not to endanger or .interfere with the safety of any
i!persons or property , or to interfere with improvements the munici-
pality may deem proper to make , or to interfere in any manner with
Ithe rights of any property owner, or to unnecessarily hinder or
11obstruct pedestrian or vehicular traffic on the municipal properties.
lFurther , all such plant and equipment and all construction shall
eet all relevant specifications of the Federal Communications
,commission.
(2) Any opening or obstructions in or disturbance of the
streets , public ways or other municipal properties made by a
Grantee in the exercise of its rights under a franchise shall be
!guarded and protected at all times by the placement of adequate
'barriers , fences or boardings , the bounds of which during periods
of dusk and darkness shall be clearly designated by adequate
warning lights , all by Grantee at its expense . In case of any
,physical disturbance or damage to any streets , public ways , or
!!other municipal properties occurring in the course of erection, `
Iinstallation, construction, reconstruction, replacement, removal ,
irepair, maintenance or operation, t:ne Grantee shall promptly re- i
,pair such disturbance and damage at its own expense and in a I
,manner approved by the City.
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(3) A Grantee shall , at its expense , protect, support,
,11temporarily disconnect, relocate in the same street or other public
,iplace or municipal property or remove from the street or other
}!public place or municipal property any property of Grantee when
required by the City Council or its designee by reason of traffic
conditions , public safety , street vacation, freeway and street
construction, change or establishment of street grade , installation
of sewers , drains , water pipes , power lines , signal lines , and
tracks , or any other type of structures or improvements by public
agencies .
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( 4) A Grantee shall, on the request of any private party
' holding an appropriate permit issued by the City , temporarily
raise or lower its lines to permit the moving of any building or
other structure, and the actual expense of the same shall be paid
by the party requesting the same.
(5) Upon failure of a Grantee to commence, pursue, or
complete any work required by law or by the provisions of this
franchise to be done in any street or other public place or
municipal property within the time prescribed, and to the satis-
faction of the City Council or its designee, the City Council or f
its designee may , at its option, cause such work to be done and
the Grantee shall pay to the City the cost thereof in the itemized ,
amounts reported by the City Council or its designee to the Grantee;
within thirty (30) days after receipt of such itemized report.
Section 36-11015 - Removal of Facilities Upon Request.
;;i Upon termination of service to any subscriber, a Grantee
shall promptly remove all its facilities and equipment from the
I1premises of such subscriber upon his written request.
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f� Section 36-11016 - Franchise Fee .
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i (1) During the term of a franchise, a Grantee shall pay to
IIthe City a sum of money equal to five percent (50) of the annual
local gross revenues accruing from services rendered to its sub-
scribers within the City . Installation charges and charges for
service relocations shall not be included as a part of local gross
service revenue. Sales tax or other taxes levied directly on a
,,per subscription basis and collected by a Grantee shall be deducted
'!from the local gross service revenues before computation of sums
;due the City is made . Payments due the City under this Article
shall be computed twice each year, -as of June 30 and December 31 ,
lIfor the preceding six months period and shall be paid on or before
IIthe sixtieth calendar day from and .including each said computation
(date at the Finance Office of the City during their regular business
hours . If the City Finance Office :is closed on said sixtieth day ,
;(then payment may be made during their regular business hours on
!the next following day on which the office is open for business .
,The City shall be furnished a statement with each payment, certi-
`jfied as correct by Grantee and prepared by a Certified Public
Accountant, reflecting the total amount of service revenues , and
�Ithe above charges , deductions and computations , for the six months
, payment period covered by the payment.
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(2) The City shall have the right to inspect at all times
i! during business hours a Grantee ' s records of or pertaining to the
local gross service revenues from which its franchise payments are
;computed and the right of audit and recomputation of any and all
,'amounts paid under a franchise. No acceptance of any payment shall
be construed as a release or as an accord and satisfaction of any
claim the City may have for further or additional sums payable
under a franchise or for the performance of any other obligation
11thereunder. li
Section 36-11017 - Use , Erection, Location, and Disposition
Hof Poles and Equipment. I
�i (1) A Grantee may lease, rent, or in any other manner by
,'mutual agreement obtain the use of towers , poles , lines , cables
and other equipment and facilities from the City of Ames Electric
Utility and Northwestern Bell Telephone Company and use such towers,
poles , lines , cables and other equipment and facilities for the
purpose of a CATV system, subject to all existing and future laws ,
ordinances and regulations of the City , the State of Iowa ar-o the
United States of America. The poles used by a Grantee ' s distribu-
'ition system shall be those erected and maintained by the City of
i�Ames Electric Utility and Northwestern Bell Telephone Company,
hen and where practicable , provided mutually satisfactory rental
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J agreements can be entered into with said parties . All holders of
1public franchises and rights within the corporate limits of the {
;' City will cooperate with a Grantee to allow Grantee usage of their !
}; poles and pole line facilities whenever possible so that the numbe�
l, of new or additional poles installed within the City may be mini-
!mined.
1 (2) A Grantee shall have the right to erect, install and
,!maintain its own towers , poles , guys , anchors , underground conduit
Hand manholes , as may be necessary for the proper construction and
1maintenance of the antenna site, head-end and distribution system, )
jprovided that towers , poles , guys , anchors , underground conduits
1and manholes placed on municipal properties shall have their loca� tion and construction approved in advance by resolution of the
( City Council or in writing by such City body or official as the
`., City Council may from time to time by resolution designate , or its
! designee in writing. In cases of conflict, preference shall be
{ given more essential utilities and services such as water, power ,
( steam, telephone , sanitary sewer and storm sewer.
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.1 (3) A Grantee shall have the right to establish terms , f
! conditions , and specifications governing the form, type , size,
!quantity and location of equipment and plant of others on its poles!,
` and shall have the further right tc charge a fair rental for
ilattachment space or spaces occupied by the said equipment and plan '
�!of others , except that no rent shall be paid by the City for its
,, attachments to a Grantee ' s poles . The City shall pay any costs
(! incurred by a Grantee in providing space for the City ' s attach-
ments , including any necessary rearrangement of a Grantee' s equip-
'�ment and plant to provide room for City attachments . Upon
j!expiration, termination, or revocation of a franchise , or should a
''Grantee wish otherwise to dispose of any of its poles being used
I;by the City , the City shall have the first right and option to
!purchase them in place for their fair value based on reproduction
�1cost less depreciation. Upon expiration, termination or revocation,
of a franchise , title to all of a Grantee ' s underground conduits
and manholes shall pass to the City , unless otherwise agreed by
the Grantee and the City in writincr.
!! (4) In those areas and portions of the City where trans-
mission or distribution facilities of either or both the public
�,utility providing telephone service and the utility providing
jelectric service are underground or hereafter may be placed under-
;ground, then a Grantee shall likewise construct , operate and main-
� tain all of its transmission and distribution facilities under-
jground to the maximum extent that then existing technology permits
((land in conformance with the National Electrical Safety Code, the
;,!Bureau of Standards handbook number 130 , and Telephone Systems
!;Practices governing joint attachments practices , as well as in
conformance with all applicable state and municipal ordinances
hand codes . If and when necessary, amplifiers and/or transformers
! in a Grantee ' s transmission and distribution lines may be in
!; appropriate housings upon the surface of the ground. Said housings,
jand the location and construction of all work required by or
�Ipursuant to this section shall be approved in advance by the
;!bodies , persons and manner set for-_h in Section 36-11017 (2) .
Section 36-11018 - Transfer of Franchise.
A Grantee shall not transfer a franchise to another person
,without prior approval of the City by ordinance .
t11 Section 36-11019 - Receivership , Foreclosure , etc.
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j� A franchise granted to a Grantee shall at the option of the
lCity Council cease and terminate one-hundred twenty (120) days
f, after the appointment of a receiver or receivers or trustee or
!; trustees to take over and conduct the business of the Grantee ,
Hwhether in a receivership, reorganization, bankruptcy or other
action or proceeding unless such receivership , or trusteeship ,
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;Ftwent (120) days , or unless :
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(a) Such receivers or trustees shall have, within one-
hundred twenty (120) days after their election or appointment,
( fully complied with all the terms and provisions of the franchise
and the receivers or trustees within said one-hundred twenty (120)
Sdays shall have remedied all defaults under said franchise; and
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�i (b) Such receivers or trustees shall , within said one-
hundred. twenty (120) days , execute an agreement duly approved by
the Court having jurisdiction in the premises , whereby such
receivers or trustees assume and agree to be bound by each and
every term, provision and limitation of this Article and the j
�� franchise hereunder granted.
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{I In the case of a foreclosure or other judicial sale of the
plant property and equipment of a Grantee, or any part thereof,
including or excluding the franchise, the City Council may serve
notice of termination upon the Grantee and the successful bidder
lat such sale, in which event the franchise granted and all rights
land privileges of the Grantee shall cease and terminate thirty
{ (30) days after service of such notice, unless : (a) the City `
. Council shall have consented to the transfer of the franchise, as )
,land in the manner in this Article provided; and (b) unless such
IIsuccessful bidder shall have coveeated and agreed with the City to j
; accept said franchise and be bound by all the terms and conditions
of this Article. i
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I Section 36-11020 - Change of Control of Grantee.
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Prior approval of the City Council shall be required where
ownership or control of more than 250 of the theretofore outstand-
Ung voting stock of a Grantee is acquired by a person or group of
persons acting in concert, one of whom already own or control 250
jor more of such stock, singularly or collectively. Any such
;acquisition occurring in violation of this provision shall also
( constitute a breach of the franchise agreement , and shall cause
the franchise to be voidable.
Section 36-11021 - Filings and Communications with Regulato
'Agencies .
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I Copies of all petitions , applications and communications
11submitted by a Grantee to the Federal Communications Commission ,
I(Securities and Exchange Commission , or any other federal or state
iregulatory commission or agency having jurisdiction in respect to
lany matters affecting CATV operations authorized pursuant to this
JArticle , shall also be submitted simultaneously to the City Council .
Section 36-11022 - City Rights .
(1) A franchise is specifically subject to all applicable
,.provisions of the ordinances of this City .
#�# (2) The right is reserved to the City Council or its
fjsuccessor or equivalent to adopt, in addition to the provisions
11contained herein and in existing applicable ordinances , such
11additional regulations as it shall find necessary in the exercise
of the police power.
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(3) The City, through its designated representatives , shall
be permitted to inspect the books , records , maps , plans , income tax(
returns , and other like materials of a Grantee at any time during
I►normal business hours .
1 (4) The City, through its appropriately designated depart-
(ments , shall have the right, during the life of a franchise, to `
install and maintain free of charge upon the poles of a Grantee i
,any wire and pole fixtures , on the condition that such wire and
(pole fixtrues do not interfere with the CATV operations of the
((Grantee .
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(5) The City, through its appropriately designated rep-
resentatives , shall have the right to supervise all construction
,ior installation work performed subject to the provisions of a
` franchise and make such inspections as it shall find necessary to
unsure compliance with the terms of a franchise and other perti-
nent provisions of law, the cost of such inspection to be paid by
the Grantee .
(6) At the expiration of the term for which a franchise is �
granted or upon the termination and cancellation as provided i
11therein , the City shall have the right to require a Grantee to
remove at its own expense any and all portions of the CATV system
from the public ways within the City . A Grantee shall furnish
lievidence upon the installation of the system of insurance or a
!, performance bond with securities to guarantee removal of said CATVI
( system in the amount of $150 ,000 . 00 .
(7) A Grantee shall not oppose intervention by the City in
any suit or proceeding to which the Grantee is a party.
it Section 36-11023 - Forfeiture of Franchise. !
If� (1) The City shall terminate and cancel a franchise and all'
`frights and privileges of the Grantee thereunder in the event that f lithe Grantee :
)� (a) Substantially violates any provision of this Article
for any rule , order, or determination of the City Council made
#+ pursuant to this Article where such violation shall remain uncured ;
``! for a period of thirty (30) days subsequent to receipt by Grantee
{lof written notice of said violation; '
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(� (b) Attempts to dispose of any of the facilities or
� property of its CATV business to prevent the City from purchasing
1same , as provided for herein;
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(c) Attempts to evade any of the provisions of this Article
Hi or practices any fraud or deceit upon the City; or
(d) Fails to commence providing service to subscribers
Ilas provided in Section 36-11024 .
(2) Such termination and cancellation shall be by ordinance
1duly adopted after sixty (60) days ' notice to the Grantee and
shall in no way affect any of the C'ity ' s rights under this Article
! or any provisions of law. In the Event that such termination and
! cancellation depends upon a finding of fact, such finding of fact
iias made by an arbitrator selected in accordance with the procedures
Ilset forth in Section 36-11012 of this Article shall be conclusive; !
liprovided, however, that before a franchise may be terminated and
I1cancelled under this section , the Grantee must be provided with an
ijopportunity to be heard before the City Council .
y� Section 36-11024 - Service .
(1) A Grantee shall diligently apply for all necessary
tlpermits and authorizations required in the conduct of its business ,
hand shall diligently pursue the acquisition thereof , including
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( pole attachment contracts from Northwestern Bell Telephone Company
11and Ames Municipal Electric Utility, any necessary authorizations
;; from the Federal Aviation Agency to construct such receiving
Iiantenna towers as may be required , and any necessary authorizations,
for waivers from the Federal Communications Commission, and Grantee
! shall notify the Ames City Council in writing immediately when
;; such permit , authorization, contract and waiver are obtained.
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II (2) A Grantee shall commence construction of its CATV
fSystem within two ( 2) months of receiving permission from the
•; Federal Communications Commission to bring into the City on its
:; CATV system two (2) or more distant television signals which are
! disseminated to the general public without charge by broadcasting
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jistations licensed by the Federal Communications Commission, which
''signals could not ordinarily be received within the City by normal
antenna. Grantee shall commence providing service to subscribers
, no later than three (3) months after commencement of construction.
$? (3) A Grantee shall extend its CATV system and service to
''all areas of the City within one (1) year after receiving permis-
sion from the Federal. Communications Commission and to newly
annexed areas as rapidly as possible .
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(4) Maps , Plats , and Reports . A Grantee shall file with
the City Engineer true and accurate maps or plats of all existing
and proposed installations .
(5) A Grantee shall file annually with the City Clerk not
(later than sixty (60) days after the end of the Grantee ' s fiscal
,year, a copy of its report to its stockholders (if it prepares suchl
!,a report) , an income statement applicable to its operations during
.the preceding twelve (12) months period, a balance sheet, and a
statement of its properties devoted to CATV operations , by cate-
gories , giving its investment in such properties on the basis of
original cost, less applicable depreciation. These reports shall
be prepared or approved by a Certified Public Accountant and there
shall be submitted along with them such other reasonable informa-
tion as the City Council shall request with respect to a Grantee ' s
;;properties and expenses related to its CATV operations within the
�?Ci ty .
1 (6) A Grantee shall keep on file with the City Clerk a
`licurrent list of its ,�hareholders and bondholders .
f Provisions .
Section 36-11025 - Miscellaneous Prov
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(1 (1) A Grantee shall not be relieved of its obligation to
comply promptly with any of the provisions of this Article by any
failure of the City to enforce prompt compliance.
(2) A Grantee shall have no recourse whatsoever against the
1;City or its officers , boards , commissions , agents or employees for
1any loss , cost, expense or damage arising out of any provision or
lrequirement of a franchise or because of its enforcement.
ii (3) A Grantee shall maintain a force of one or more
!'resident agents or employees at all times and shall have sufficient!
�iemployees to provide safe , adequate and prompt service for its
R acilities .
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ll (4) Emergency Use of Facilities . In the case of any
;emergency or disaster, a Grantee shall, upon request of the City
1Manager of the City of Ames , or of his designated agent, make
;.available its facilities to the City of Ames for emergency use for
±'the duration of such emergency or disaster.
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(5) Emergency Alert. The system will be engineered to
}provide an Audio Alert System. This system would allow certain
;;authorized officials to automatically override the ' audio' signal
lion all channels and transmit and report emergency information. In
lthe event of any such use by the City , the City will hold harmless
111and indemnify the Grantee from any damages or penalties resulting
l;from the use of this service . i
f (6) Safety Requirements . A Grantee shall at all times
!;employ ordinary care and shall install and maintain in use commonly
:accepted methods and devices preventing failures and accidents
;which are likely to cause damage , injury or nuisance to the public . (
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(7) New Developments . It shall be the policy of the City
,�to liberally amend this Article , whenever necessary to enable a
1,',Grantee to take advantage of any developments in the field of
(!transmission of television and radio signals which will afford it
{;an opportunity to more effectively , efficiently , or economically
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. serve its customers ; provided, however, that this section shall no�
be construed to require the City to make any amendment or to
; prohibit it from unilaterally changing its policies as stated
�1herein.
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it (8) If, in the future, a Grantee adds additional services
'Ito its CATV service , then in that event said service and the rate
� to be charged shall first be approved by the City Council .
(9) Necessity of Franchise . No person shall own or
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operate a community antenna television system in the City of Ames
except by franchise issued by the City granting such power to any
such Grantee. In the event litigation is required to enforce said franchise,franchise, Grantee shall pay legal expenses incurred by the '
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Section 36-11026 - Franchise Application Procedure .
The following requirements and procedures shall be met by
any person seeking to establish and operate a CATV system in the
City of Ames :
(1) Delivery to the City Clerk of a certified check in
' such amount as the City Clerk shall determine as necessary to pay
Tall costs to the City of the election to obtain voter approval of
lithe franchise . This requirement shall apply with respect to
elections ordered by the Mayor after petition, therefore , by 25
!of the property owners of each voting precinct, and to elections
` ordered by the City Council following approval by the Council of
an application for franchise.
�( (2) A person seeking approval of a franchise by the City
'!Council shall make such description..., in writing, of his proposed
(system, the service to be provided, and the timetable projected
( for completion as the applicant shall deem to be in his own best
jinterest.
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I (3) Any applicant for a Cou.ncil approved franchise shall
,present a financial statement prepared by a Certified Public
Accountant, and a statement by a C .P.A. that the person making
lapplication for the franchise has projected cost of constructing
; the system and that the applicant appears financially capable of !
Omeeting such costs .
(4) The person seeking a franchise shall , before the �
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Ielection for voter approval is held, execute a franchise agreement
Zwith the City of Ames , contingent on voter approval of the franchise4
(( which agreement shall incorporate all provisions of this Article as
flfully operative terms of the agreement, and including an agreement
iwith respect to rental of the city ' s transmission line poles and
other municipal properties ; and, obtain Council approval of such
(other contracts , leases , licenses and permits as the Council shall `
'determine to be necessary and propE!r for the protection of the
public interest.
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I! Section 36-11027 - Separability.
�j (1) If any section, subsection , sentence, clause, phrase ,
for portion of this Article is for any reason held invalid or un- I
iconstitutional by any court of competent jurisdiction, such
�iportion shall be deemed a separate , distinct, and independent
+provision and such holding shall not affect the validity of the
( remaining portions hereof.
(2) This Article is a general regulatory measure of the I(
( City of Ames , not a grant of franchise to any particular person ,
I and this Article shall not cease to be effective upon expiration
1jof any franchise or change in the _dentity of a Grantee .
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Section 36-11028 - Penalty .
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The doing of any act prohibited by this Article, or the
omission or failure to perform any act or duty required by this
Article is punishable as provided by Section 1-1007 Municipal Codej
City of Ames , and shall also be grounds for revocation and
itermination of a franchise .
Section 2 . All ordinances and parts of ordinances in
conflict herewith are hereby repealed. 1
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Section 3. This ordinance i3 in full force and effect
�1from and after its passage and publication as provided by law.
Passed this 27th day of February 19 73 .
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'Mary E . aul , City Clerk Stuart N. SrHth, Mayor
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1st read ' - -r reading - 1-23 73 Koerber Pounds
Ayes : Huston, Pounds, Nelson, Koerber, Maxwell. Nays : None.
1iAbsent: Calhoun
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112nd reading - 2-6-73 Koerber-Huston
Ayes : Koerber, Calhoun, Huston, Nelson, Maxwell. Nays : None .
Absent: Pounds .
3rd reading - 2-27-73 Maxwell-Koerber
Ayes : Maxwell, Huston, Nelson, Pounds, Koerber, Calhoun
Nays : None .
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