HomeMy WebLinkAbout~Master - Regulating Cable Television Services ORDINANCE NO. 2661
AN ORDINANCE TO AMEND THE MUNICIPAL CODE
OF THE CITY OF AMES, IOWA BY REPEALING
ARTICLE XI OF CHAPTER 36 , CONSISTING OF
SECTIONS 36-11001 THROUGH AND INCLUSIVE
OF SECTION 36-11028 ; AND, ENACTING A NEW
ARTICLE XI OF CHAPTER 36 , TO CONSIST OF
NEW SECTIONS 36-11001 THROUGH AND INCLU-
SIVE OF SECTION 36-11027 FOR THE PURPOSE
OF REVISING THE REGULATIONS AND POLICIES
PERTAINING TO CABLE TELEVISION SERVICES
IN THE CITY OF AMES; REPEALING ALL
ORDINANCES OR PARTS OF ORDINANCE IN CON-
FLICT HEREWITH TO THE EXTENT OF SUCH CON-
FLICT IF ANY; PROVIDING A PENALTY; AND,
ESTABLISHING AN EFFECTIVE DATE
BE IT ORDAINED, by the City Council for the City
of Ames , Iowa:
Section One. The Municipal Code of the City of
Ames shall be and is hereby amended by repealing Article XI
of Chapter 36 , consisting of sections 36-11001 through and
inclusive of section 36-11028 ; and, enacting a new Article
XI of Chapter 36 , to consist of new sections 36-11001 through
36-11027 as follows :
"Article XI . Cable Television Services
Sec. 36-11001 . Definitions .
For the purpose of this article, the following
terms , phrases , words, and their derivations shall
have the meaning given herein. When not inconsis-
tent with the context, words used in the present
tense include the future, words in the plural
number include the singular number, and words in
the singular number include the plural number.
The word ' shall ' is always mandatory and not
merely directory.
(1) City is the City of Ames , Iowa.
(2) Council is the City Council of Ames , Iowa.
(3) Person is any person, firm, partnership,
association, corporation, company or
organization of any kind.
(4) Grantee is any person granted a franchise
in accordance with the provisions of this
article.
(5) Local gross revenues include all revenues
derived from a franchisee' s activities
within the City of Ames , including revenues
from advertising, except only the grantee ' s
portion of pay channel revenue will be
included.
(6) User is any person who buys any of the
grantee' s channels for broadcasting or
originating programs .
(7) Subscriber is a person who pays a fee to,
or purchases equipment from a grantee for
the purpose of receiving transmissions
carried by a cable television system.
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,.
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(8) Franchise is the non-exclusive
authorization to erect, install , con-
struct, reconstruct, replace, remove,
repair , maintain and operate in or upon,
under, above, across and from the streets,
avenues , highways , sidewalks , bridges
and other public ways , easements , and
rights-of-way, as now existing and all
extensions thereof and additions thereto,
in and belonging to the city (hereinafter
sometimes called 'municipal properties ' ) ,
all necessary poles , wires , cables ,
coaxial cables , transformers , amplifiers,
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 cable television system for the origina-
tion, interception, sale and distribution
of television and radio signals , all in
strict accordance with the laws , ordinances
and regulations of the United States of
America, the State of Iowa, and the city,
as now existing or hereafter adopted or
amended, subject to the reservation in
the city of the right to grant a similar
or same use, simultaneously, to any other
person; and, subject at all times to all
lawful exercise of the police power of
the City of Ames and to such reasonable
regulations as the city and/or the coun-
cil shall hereinafter provide, and com-
pliance with all applicable state and
federal regulations ; and, including by
way of specification but not limitation,
a rule prohibiting the use of the city
streets or alleys for the installation
of additional poles or underground cable,
and may include regulations requiring
all or part of said transmission system
to be installed and maintained under-
ground.
Sec. 36-11002 . Franchise required for cable television
system.
No person shall establish and operate a cable tele-
vision system within the city except upon obtaining
the grant of a franchise as defined and provided for
in this article. A franchise may be obtained by
making an application to the city council in the
form and manner 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 re-
quired by the laws of the State of Iowa; or, the
person seeking to obtain a franchise may p by
petition as is also provided for by the laws of the
State Code of Iowa, but in either event the grantee
of the franchise and the system established shall
be subject to all rules and regulations provided
- . for in this article.
Sec. 36-11003 . Term of franchise.
The franchise and the rights, privileges, and authority
thereby granted, subject to the provisions of this
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article, shall take effect and be in force from and
after final approval thereof by vote of the elec-
torate, as provided by law, and shall continue in
force and effect for a team of not more than fif-
teen (15) years, provided that within thirty (30)
days after the date of voter approval of the fran-
chise, the grantee shall:
(1) File with the City Clerk its unconditional
acceptance of the franchise and promise to
comply with and abide by all the provisions,
terms, and conditions , of this article,
and pay the fee provided in section 36-11015
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;
(2) File with the city the bonds and insurance
provided for herein which shall be approved
by the city attorney . Should the grantee
fail to comply with the above terms of
this subsection within thirty (30) days
after voter approval, it shall acquire
no rights , privileges , or authority under
said franchise whatever.
Sec. 36-11004 . Rates and charges .
(1) 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 manage-
ment) , including a fair return on the
original cost, less depreciation, of the
properties devoted to such service (with-
out regard to any subsequent sale or trans-
fer price or cost of such properties) .
(2) The City Council shall have the power,
authority and :right to cause the grantee ' s
rates and charges to conform to the pro-
visions 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 pro-
posed increased rates and charges will not
conform to the said subsection 36-11004 (3)
and (6) . Grantee shall not increase rates
except as is provided for in subsection 12
unless grantee has applied to and received
the approval of the City Council for such
rate increase .
(3) A grantee ' s rates and charges to its sub-
scribers 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 depre-
ciation, of its properties devoted to such
service (without regard to any subsequent
sale or transfer price or cost of such
properties)
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(4) The City Council shall cause the grantee ' s
rates and charges to conform to the pro-
visions 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 grantee ,
has been given reasonable notice thereof
and an opportunity to be heard by the
council with regard thereto.
(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 connec-
tion charges (TV and/or
radio, residential or com-
mercial) $20 . 00
(b) Additional installation up
to a total of four at same
location, each $5 . 00
(c) Additional installation,
five or more at same loca-
tion: direct cost of necessary
labor and materials plus 10%
(d) Disconnecting service --
No charge
(e) Each repositioning at same
location ( ' relocation' ) :
direct cost of necessary
labor and materials plus 10%
(2) Monthly rates :
(a) First TV and TV and radio
outlet, residential or
commercial -- $8 . 00 unless
convertor purchased by
subscriber, then $6 . 50
(b) Additional TV and TV and
radio outlets, each $2 . 50
unless convertor purchased
by subscriber, then $1 , 00
(c) Additional radio outlets ,
each $1 . 00
(B) Hotels, motels, rest homes and hos-
pitals containing not less than ten
(10) rental units to which service
is provided:
(1) Direct cost of labor and material
necessary for installation plus
100 . No charge for disconnecting
service.
(2) Monthly rates : $2 . 50 per TV and
TV and radio outlet unless con-
vertor purchased by subscriber,
then $1 . 00 .
(C) Multiple dwelling units (contained
within one structure or a group of
structures located in one complex
where all service billed to one
customer:
(1) Direct cost of labor and materials
necessary for installation plus 100
(2) Monthly rates :
Number of Monthly Charge per
Dwelling TV and TV and Radio
Units Served Outlet
Up to 5 Each dwelling unit
shall have same monthly
rates as provided in
Section 36-11004 (6) (A)
6 through 49 $4 . 50, unless convertor
purchased by subscriber,
then $3 . 50
50 through 99 $3. 00
100 and over $2 . 50
A deposit not to exceed $25 . 00 may be required
if the subscriber does not purchase the convertor.
(7) A grantee shall be permitted to require
advance payment for installation fees and
for two (2) month ' s advance service fee.
(8) A grantee shall receive no consideration
whatsoever from its subscribers for or in
connection with its service to its sub-
scribers 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 regu-
latory agency hereof regulates the rates
of a grantee f r the service regulated by
this article , this section shall be of no
effect during such regulations to the
extent of any conflict therewith.
(10) A grantee shall install and maintain, at
the request and expense of the subscriber,
an adequate switching device to allow the
subscriber to choose between cable and
non-cable reception.
(11) A grantee shall not, as to rates , charges ,
services, facilities, rules , regulations
or in any other respect make or grant any
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improper preference or advantage to any
person nor subject any person to any im-
proper prejudice or disadvantage; pro-
vided, however, this shall not be deemed
to prohibit the establishment of a gra-
duated scale of charges and classified
rate schedules to which any customer
coming within such classification shall
be entitled.
(12) Grantee may, once each year, increase the
rates for basic monthly cable television
service in a percentage amount of the pre-
vious rates not to exceed the percentage
increase in the Consumer Price Index as
determined by the Bureau of Labor Statis-
tics for the previous year. Notice of
such a proposed rate increase must be
given in writing to each subscriber not
less than thirty days nor more than ninety
days before the effective date of the
proposed increase. Such an increase will
not be subject to City Council review and
authorization unless at least five percent
of the subscribers petition the City
Council for review, alleging that the
proposed rate increase is excessive and
unjustifiable under the standards for
rates set by the provisions of this chap-
ter. When such a petition is received
the City Council shall forthwith set a
date for a public hearing wherein all
interested parties may present evidence
and be heard on the matter of the pro-
posed rate increase. Notice of the date,
time and place of the hearing shall be
given by publication at least once in a
newspaper of general circulation in the
city . The publication of notice shall
occur not less than four nor more than
twenty days prior to the date of hearing.
Sec. 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
shall , without delay, notify the City
Council, suggest a plan for flow-through
of the refunds to its subscribers , and
retain such re unds pending order of the
council . Al considering the plan
submitted by the grantee, the council
shall order the flow-through of the re-
funds to the grantee ' s subscribers in a
fair and equitable manner.
(2) If a grantee receives refunds of any pay-
ments made for television or radio signals,
it shall, without delay, notify the City
Council, suggest a plan for flow-through
of the refunds to its subscribers, retain
the refunds pending order of the council
and flow-through such refunds in accor-
dance with the order of the council.
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Sec. 36-11006 . Subscriber refunds on termination
of service.
If any subscriber of a grantee of less than three
(3) years terminates service because of a grantee ' s
failure to render service to such subscriber of a
type and quality required by this article or if
service to a subscriber of less than three (3)
years is terminated without good cause (failure to
pay for service for more than three (3) months
shall be conclusively deemed to constitute ' good
cause ' ) or because the grantee ceases to operate
the cable television service for any reason, ex-
cept expiration of this franchise, the grantee
shall refund to such subscriber an amount equal
to the initial tap-in and connection charges paid
by him divided by twelve (12) and multiplied by a
number equal to twelve (12) minus the number- of
months the subscriber has been on the system.
Sec. 36-11007 . Faithful performance bond, insurance
and indemnification required.
(1) A grantee shall, concurrently with its
acceptance of a franchise, file with the
City Clerk and at all times thereafter
maintain in full force and effect for the
term of the franchise or any renewal there-
of, at grantee ' s sole expense a corporate
surety bond in a responsible company
licensed to do business in Iowa, :Ln the
amount of fifty thousand dollars ( $50, 000)
renewable annually, and conditioned upon
the faithful performance of grantee and
compliance by grantee with all provisions
of this article and upon further condition
that in the event grantee shall fail to
comply with any one or more of the provi-
sions of this article , there shall be
recoverable jointly and severally from the
principal and surety of such bond any
damages or loss suffered by the city as
a result thereof, including the full
amount of any compensation, indemnifica-
tion, or cost of removal or abandonment
of any property of the grantee , plus a
reasonable allowance for attorneys ' fees
and costs, up to the full amount of the
bond, said condition to be a continuing
obligation for the duration of the fran-
chise and any renewal thereof and there-
after until the grantee has liquidated all
of its obligations with the city that may
have arisen from the acceptance of the
franchise or renewal by the grantee or
from its exercise of any privilege or
right granted. The bond shall provide
that at least thirty (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 discretion waive
said bond or reduce the required amount
thereof after three (3) years of operation
of cable television under a franchise, by
the grantee, which the City Council shall
find to have been satisfactory .
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(2) Non-waiver. Neither the provisions of
this section, nor any bonds accepted by
the City pursuant thereto, nor any damage
recovered by the city thereunder, shall
be construed to excuse unfaithful per-
formance 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.
(3) Liability and indemnification of city.
Grantee shall indemnify and hold the City
of Ames harmless at all times during the
term of a franchise and it will pay all
damages and penalties 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 copy-
right infringements and other damages
arising out of the installation, opera-
tion, or maintenance of the cable tele-
vision system, whether or not any act
cr omission complained of is authorized,
allowed, or prohibited by this article.
A. grantee shall , at all times during the
term of its franchise , carry and require
their contractors to carry:
(A) Insurance in such forms and in such
companies as shall be approved by
the City Council to protect the City
and grantee from and against any and
all claims , injury or damage to
persons or property, both real and
personal, caused by the construction,
erection, operation and maintenance
of any structure, equipment, or
appliance. The amount of such in-
surance shall be not less than five
hundred thousand dollars ($500 , 000)
as to any one person and one million
dollars ($1, 000 , 000) as to any one
occurrence for injury or death to
persons and two hundred fifty thou-
sand dollars ($250, 000) for damages
to property.
(B) Workmen ' s compensation insurance as
provided by the laws of the State of
Iowa as amended.
(C) Automobile insurance with limits of
not less than five hundred thousand
dollars/one million dollars ($500 ,000/
$1, 000 , 000) of public liability
coverage and automobile property
damage insurance with a limit of not
less than five hundred thousand
dollars ($500 , 000) covering all auto-
motive equipment.
All of said insurance coverage shall provide
a ten (10) day notice to the City Clerk in
t'ze event of material alteration or cancel-
lation of any coverage afforded in said
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policies prior to the date said material
alteration or cancellation shall become
effective.
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 may be . ._ _. _ .
A grantee shall pay all reasonable expenses
incurred by the city in defending itself
with regard to all damages, penalties or
other claims resulting from the acts of a
grantee, its assigns, employees, agents,
invitees or other persons . Said expenses
shall include all out-of-pocket expenses
such as attorneys ' fees, and shall include;
the value of any service rendered by the,.
city attorney or any other officers or
employees of the city .
Sec. 36-11008 . Number of channels .
The grantee ' s distribution system shall be capable
of carrying at least thirty-five (35) television
channels .
Sec. 36-11009 . Use of channels .
(1) A grantee may sell or use for program ori-
gination all channels except those which
he must carry under FCC regulations . The
fees charged for use of such channels are
to be set by the grantee for all but the
public broadcast channels hereinafter
described.
(2) Initially, a grantee shall provide, as an
additional service, such of the areas FM
radio signals as are permitted by the
Federal Communications Commission.
(3) Advertising conforming to FCC guidelines ,
is allowed on the non-public broadcast
channels; provided, however, that grantee
shall not permit advertising for any can-
didate for any local political office or
for any party sponsoring such candidates
to be carried on its channels unless any
other candidate for said office or any
bona fide party, as determined by the
council, interpreting all relevant FCC
rules and guidelines , or a party itself
in case other parties so advertise, be
provided with comparable advertising time .
! regulation, specify
The council may, by g
the offices and parties covered hereunder
and may specify what shall constitute the
provision of comparable time .
(4) Grantee is prohibited from censoring any
program which is cablecast; grantee is
expressly granted immunity from any lia-
bility which might otherwise arise out of
its failure to censor any program pursuant
to this subsection.
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Sec. 36-11010 . Access channels .
A Aran tee shall provide access channels, subject to
the regulations of the Federal Co-pninunications
Commission, as follows :
(1) One specially designated, non-commercial
public access channel available on a
first come, non-discriminatory basis .
(2) One specially designated channel for use
by the Ames Community School District,
and additional channels when requested
by the school board.
(3) One specially designated channel for
use by the city pursuant to the policies
and directions of the city council .
(4) Five specially designated channels for
Iowa State University.
Sec. 36-11011 . Public Service Installations .
(1) A grantee shall, without charge for in-
stallation, maintenance , or service, make
single installations of its standard cable
television service .facilities with one con-
vertor at each of the following locations
in the City:
(A) City Administration Building
(B) Fire Station
(C) Police Station
(D) Public Library
(E) All public school buildings of the
Ames Community School District
(F) All accredited private schools for
elementary and secondary education
but not to include day care centers
and nursery schools
In addition, the grantee shall install a
public school studio modulator in the Ames
Senior High School complete with a return
cable from the High School to the cable
television head-end studio facility.
(2) A grantee shall without charge for instal-
lation, maintenance, or service, make single
installation of its standard cable televi-
sion service facilities with one convertor
at each of five reasonable and appropriate
locations for Iowa State University.
(3) A grantee shall establish and maintain a
local studio, and remote production faci-
lities , having such video tape and local
production facilities as shall be necessary
and proper to support local origination
of programs for transmission over the
system with access 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.
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(4) A grantee shall establish and maintain
within the City of Ames a local business ,
office, which office shall be open for . '
business 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 re-
ceive and answer all subscriber com-
plaints . Grantee shall make a monthly,
report to the City Council of all con-'I
sumer complaints , and the action taken
to remedy the complaints . This report
shall state the names and addresses of
the complainants , the date the com-
plaint was received, the nature of the
complaint, and the specific action taken
to remedy each complaint.
Sec. 36-11012 . Other business activities .
(1) Neither a grantee nor any shareholder
of a grantee shall engage in the busi-
ness of selling , repairing or install-
ing television receivers, radio re-
ceivers , or accessories for such re-
ceivers within the City of Ames during
the term of a franchise, and the gran-
tee shall not allow any of its share-
holders owning twenty-five per cent
(25%) or more of its stock to so engage
in any such husiness except upon appli-
cation to and approval by the council;
provided, however , that nothing here-
in shall be deemed to prohibit a gran-
tee, 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 tele-
vision system.
(2) A franchise authorizes only the operation
of a cable television 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.
Sec. 36-11013 . Construction standards and requirements .
(1) All of the grantee ' s plant and equipment,
including but not limited to the antenna
site, head-end and distribution system,
towers , house connections , structures,
poles , wire, cable, coaxial cable, fix-
tures and appurtenances shall be installed,
located, erected, constructed, recon-
structed, replaced, removed, repaired,
maintained and operated in accordance
with good engineering practices, will be
performed by experienced pole-line con-
struction crews and so as not to endanger
_ . or interfere with the safety of any per-
sons or property, or to interfere with
improvements the municipality may deem
proper to make, or to interfere in any
manner with the rights of any property
owner , or to unnecessarily hinder or
obstruct pedestrian or vehicular traffic
on the municipal properties . Further,
all such plant and equipment and all
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construction shall meet all relevant
specifications of the Federal Communica-
tions Commission.
(2) Any opening or obstructions in or dis-
turbance 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 hoard-
ings , 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, installation,
construction, reconstruction, replacement,
removal, repair, maintenance or opera-
tion, the grantee shall promptly repair
such disturbance and damage at its own
expense and in a manner approved by the
city .
(3) A grantee shall, at its expense, protect,
support, temporarily disconnect, relocate
in the same street or other public place
or municipal property or remove from the
streets or other public place or munici-
pal property any property of grantee
when required by the City Council or
its designee by reason of traffic condi-
tions , public safety, street vacation,
freeway and street construction, change
or establishment of street grade, instal-
lation of sewers , drains, water pipes,
power lines , signal lines , and tracks ,
or any other type of structures or im-
provements by public agencies .
(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- struc-
ture, and the actual expense of the
same shall be paid by the party request-
ing the same.
(5) Upon failure of a grantee to commence,
pursue, or complete any work required by
law or by the provisions of this fran-
chise to be done in any street or other
public place or municipal property with-
in the time prescribed, and to the
satisfaction of the City Council or its
designee, the City Council or its desig-
nee 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.
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Sec. 36-11014 . Removal of facilities upon request.
Upon termination of service to any subscriber, a
grantee shall promptly remove all its facilities
and equipment from the premises of such subscriber
upon his written request.
Sec. 36-11015 . Franchise fee .
(1) During the term of a franchise a grantee r .
shall pay to the city a sum of money equal
to three per cent (30) of the annual
local gross revenues accruing from ser-
vices rendered within the city. Sales tax
or other taxes levied directly on a per
subscriber basis and collected by a
grantee shall not be included in compu-
tation of sums due the city . Payments
due the city under this article! shall be
computed twice each year, as of: June 30
and December 31 , for the preceding six
(6) months period and shall be paid on
or before the sixtieth calendar day from
and including each said computation date
at the finance office of the city during
its regular business hours . If the city
finance office is closed on said sixtieth
day, then payment may be made during its
regular business hours on the next follow-
ing day on which the office is open for
business . The city shall be furnished a
statement with each payment, certified as
correct by grantee and prepared by a
certified public accountant, reflecting
the total amount of service revenues, and
the above charges , deductions and compu-
tations , for the six (6) months payment
period covered by the payment.
(2) The City shall have the right to inspect
at all times during business hours a gran-
tee ' s records of or pertaining to the
local gross service revenue 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 pay-
able under a franchise or for the perfor-
mance of any other obligation thereunder .
(3) Revenues derived from the franchise fee
will be utilized solely for regulation and
improvement of cable television service
and programming within the city of Ames .
Sec. 36-11016 . Use, erection, location, and dispo-
sition of poles and equipment .
(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 cable
television system, subject to all existing
and future laws, ordinances and regulations
of the city, and State of Iowa and the
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United States of America. The poles
used by a grantee ' s distribution system
shall be those erected and maintained
by the City of Ames Electric Utility
and Northwestern Bell Telephone Company,
when and where practicable, provided
mutually satisfactory rental agreements
can be entered into with said parties.
All holders of public 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 number of new or additional poles
installed within the city may be minimized.
(2) A grantee shall have the right to erect,
install and maintain its own towers , poles,
guys , anchors , underground conduits and
manholes , as may be necessary for the pro-
per construction and maintenance of the
antenna site, head-end and distribution
system, provided that towers, poles , guys,
anchors, underground conduits and manholes
placed on municipal properties shall have
their location and construction approved
in advance by resolutions 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.
(3) A grantee shall have the right to establish
terms , 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 to charge a fair rental for
attachment space or spaces occupied by the
said equipment and plant 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
attachments , including any necessary re-
arrangement of a grantee ' s equipment and
plant to provide room for city attachments .
Upon expiration, termination, or revoca-
tion of a franchise, or should a grantee
wish otherwise to dispose of any of its
poles being used by the city, the city
shall have the first right and option to
purchase them in place for their fair
value based on reproduction cost less de-
preciation. Upon expiration, termination
or revocation of a franchise, title to
all of a grantee ' s underground conduits
and manholes shall pass to the city, un-
less otherwise agreed by the grantee and
the city in writing.
(4) In those areas and portions of the city
where transmission or distribution facili-
ties of both the public utility providing
telephone service and the utility providing
electric service are underground or here-
after may be placed underground, then a
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grantee shall likewise construct, operate
and maintain all of its transmission and
distribution facilities underground to the
maximum extent that then existing techno-
logy permits and 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 and codes . If
and when necessary, amplifiers and/or
transformers in a grantee ' s transmission
and distribution lines may be in appro-
priate housings upon the surface of the
ground. Said housing, and the location
and construction of all work required by
or pursuant to this section shall be
approved in advance by the bodies , per-
sons and manner set forth in section
36-11017 (2) .
(5) The grantee may use without charge, any
City owned pole used for the sole purpose
of providing cable television service in-
stallations at sites that qualify for in-
stallation without charge.
Sec. 36-11017 . Receivership, foreclosure, etc.
A franchise granted to a grantee shall at the option of
the city council cease and terminate one hundred twenty
(120) days after the appointment of a receiver or re-
ceivers or trustee or trustees to take over and conduct
the business of the grantee , whether in a receivership,
reorganization, bankruptcy or other action or proceed-
ings unless such receivership, or trusteeship, shall
have been vacated prior to the expiration of said one
hundred twenty (120) days, or unless :
(1) 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 re-
ceivers or trustees within said one hun-
dred twenty (120) days shall have reme-
died all defaults under said franchise; and
(2) 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 , where-
by such receivers or trustees assume and
agree to be bound by each and every term,
provision and limitation of this article
and the franchise hereunder granted.
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 at such sale, in
which event the franchise granted and all rights and
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 and in the manner in
this article provided; and (b) unless such successful
bidder shall have covenanted and agreed with the city
to accept said franchise and be bound by all the terms
and conditions of this article.
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Sec. 36-11018 . Change of control of grantee.
Prior approval of the City Council shall be required
where ownership or control of more than twenty-five
per cent (250) of the theretofore outstanding voting ,....
stock of a grantee is acquired by a person or group
of persons acting in concert, one of whom already
own or control twenty-five per cent (250) or more
of such stock, singularly or collectively . Any
such acquisition occurring in violation of this pro-
vision shall also constitute a breach of the fran-
chise agreement, and shall cause the franchise to
be voidable .
Sec . 36-11019 . Filings and communications with
regulatory agencies .
Copies of all petitions , applications and communi-
cations submitted by a grantee to the Federal Communi-
cations Commission, Securities and Exchange Commission,
or any other federal or state regulatory commission
or agency having jurisdiction in respect to any matters
affecting cable television operations authorized pur-
suant to this article , shall also be submitted simul-
taneously to the City Council .
Sec . 36-11020 . 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 successor or equivalent to adopt,
in addition to the provisions contained
herein and in existing applicable ordinances ,
such additional regulations as it shall
find necessary in the exercise of the
police power .
(3) The city, through its designated repre-
sentatives , shall be permitted to inspect
the books , records, maps, plans , income
tax returns, and other like materials of
a grantee at any time during normal
business hours .
(4) The city, through its appropriately
designated departments , shall have the
right , during the life of a franchise,
to install and maintain free of charge
upon the poles of a grantee any wire
and pole fixtures, on the condition that
such wire and pole fixtures do not inter-
fere with the cable television operations
of the grantee.
(5) The city, through its appropriately de-
signated representatives , shall have the
right to supervise all construction or
installation work performed subject to the
Provisions of a franchise and make such
inspections as it shall find necessary
to insure compliance with the terms of a
franchise and other pertinent provisions
of law, the cost of such inspection to be
paid by the grantee.
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(6) At the expiration of the term for which
a franchise is granted or upon the ter-
mination and cancellation as provided
therein, the city shall have the right
to require a grantee to remove at its
own expense any and all portions of the
cable television system from the public
ways within the city. A grantee shall
furnish evidence upon the installation
of the system of insurance or a per-
formance bond with securities to guaran-
tee removal of said cable television
system in the amount of fifty thousand
($50, 000 . 00) .
(7) A grantee shall not oppose intervention
by the city in any suit or proceeding to
which the grantee is a party .
Sec. 36-1.1021. Forfeiture of franchise .
(1) The city shall terminate and cancel a
franchise and all rights and privileges
of the grantee thereunder in the event
that the grantee :
(A) Substantially violates any provision
of this article or 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 sub-
sequent to receipt by grantee of
written notice of said violation;
(B) Attempts to dispose of any of the
facilities or property of its cable
television business to prevent the
city from purchasing same, as pro-
vided for herein;
(C) Attempts to evade any of the provi-
sions of this article or practices
any fraud or deceit upon the city; or
(D) Fails to commence providing service
to subscribers as provided in section
36-11024 .
(2) Such termination and cancellation shall be
by ordinance duly adopted after sixty (60)
days ' notice to the grantee and shall in
„y no way affect any of the city' s rights
under this article or any provisions of
law; provided, however, that before a
franchise may be terminated and cancelled
under this section, the grantee must be
provided with an opportunity to be heard
before the City Council .
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Sec. 36-11022 . Service.
(1) A grantee shall diligently apply for allf
necessary permits and authorizations re-:
quired in the conduct of its business ,
and shall diligently pursue the acquisition
thereof, including pole attachment con-
tracts from Northwestern Bell Telephone
CompanyCompany and Ames Municipal Electric Utility, `
any necessary authorizations from the
Federal Aviation Administration to construct `_.
such receiving antenna towers as may be
required, and any necessary authorizations,'
or 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.
(2) A grantee shall commence construction of
its cable television system within two (2)
months of receiving permission from the
Federal Communications Commission to bring
into the city on its cable television
system two (2) or more distant television
signals which are disseminated to the
General public without charge by broad-
casting stations licensed by the Federal
Communications Commission, which signals
could not ordinarily be received within
the city by normal antenna.
(3) A grantee shall extend its cable televi-
sion system and service to all areas of
the city within eighteen (18) months
after receiving permission from the
Federal Communications Commission and
to newly annexed areas as rapidly as
possible .
(4) Maps, plats, and reports . A grantee shall
file with the city engineer true and accu-
rate 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 such a report) , an income
kill O"i I Nostatement applicable to its operations
during the preceeding twelve (12) months
period, a balance sheet, and a statement
of its properties devoted to cable tele-
vision operations, by categories; 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
information as the city council shall re-
quest with respect to a grantee ' s pro-
perties and expenses related to its cable
television operations within the city.
w
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(6) A grantee shall keep on file with the city
clerk a current list of its shareholders ..
and bondholders .
Sec . 36-11023 . Miscellaneous provisions .
(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 whatso- . .
ever against the city or its officers,
boards , commissions , agents or employees
for any loss , cost, expense or damage
arising out of any provision or require-
ment of a franchise or because of its
enforcement.
(3) A grantee shall maintain a force of one
or more resident agents or employees at
all times and shall have sufficient em-
ployees to provide safe , adequate and
prompt service for its facilities .
(4) Emergency use of facilities . In the case
of any emergency or disaster, a grantee
shall, upon request of the city manager
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.
(5) Emergency alert. The system will be en-
gineered to provide an Audio Alert System.
This system would allow certain authorized
officials to automatically override the
"audio" signal on all channels and trans-
mit and report emergency information. In
the event of any such use by the city, the
city will hold harmless and indemnify the
grantee from any damages or penalties
resulting from the use of this service.
(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.
(7) New developments. It shall be the policy
of the city to liberally amend this article,
whenever necessary to enable a 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 serve its customers; pro-
vided, however, that this section shall
not be construed to require the city to
make any amendment or to prohibit it from
unilaterally changing its policies as
stated herein.
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(8) If in the future, a grantee adds additional
services to its cable television 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 operate a community antenna tele-
vision 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, grantee shall pay legal
expenses incurred by the city.
(10) Periodic Review. This chapter may be
amended by enactment of an ordinance by
the city council at any time. Any citi-
zen or group of citizens may present
proposals for amendment to the city
council at any time. However, not less
often than once every two years the Cable
Television Advisory Commission shall re-
view the provisions of this ordinance,
and make written recommendations to the
city council for enactment of any amend-
ments judged by the Commission to be
desirable .
Sec. 36-11024 . Franchise application procedure .
The following requirements and procedures shall be
met by any person seeking to establish and operate
a cable television 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 all
costs to the city of the election to ob-
tain voter approval of the franchise.
This requirement shall apply with respect
to elections ordered by the mayor after
petition, therefore, by twenty-five (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 de-
scription, 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 interest .
(3) Any applicant for a council approved fran-
chise shall present a financial statement
prepared by a certified public accountant,
and a statement by a C.P .A. that the per-
son making application for the franchise
has projected cost of constructing the
system and that the applicant appears
financially capable of meeting such costs .
(4) The person seeking a franchise shall,
before the election for voter approval is
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held, execute a franchise agreement with
the City of Ames , contingent on voter
approval of the franchise, which agree-
ment shall incorporate all provisions of '-
this article as fully operative terms of
the agreement, and including an agree-
ment with 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 proper for the protec-
tion of the public interest .
Sec. 36-11025 . Cable Television Commission established;
powers and duties, method of appoint-
ment, qualifications , compensation,
term of members .
(1) There is hereby created and established
as an administrative agency of the City
of Ames , a five member Commission to be
entitled the Ames Cable Television Commission.
(2) The powers and duties of this commission
shall be as follows :
(A) To establish and promulgate such
rules for the implementation of the
provisions of this chapter as they
shall deem necessary or useful,
provided such rules shall not exceed
the scope of the provisions of
this chapter and shall not be in
conflict with any provision of this
chapter.
(B) From time to time as the commission
shall deem appropriate , but not less
often than once every two years , make
recommendations to the city council
for any amendments to this chapter
deemed by the commission to be
advisable .
(C) Ilake an annual report to the Ames
City Council on the status, progress
and development of cable television
service and programming in the City
of Ames .
(D) Prepare and submit to the City
Council for its consideration annually ,
a proposed program for regulation and
advancement of cable television ser-
vice and programming in the City of
Ames and a fiscal year budget for
such program, the total amount of
said budget not to exceed revenues
available to the City of Ames from
cable television franchise fees .
(3) Members of the Commission shall be appointed
by the mayor, subject to the approval of
the City Council , in accordance with such
other general procedures for appointments to
administrative agencies as have been
established by ordinances of the City of Ames .
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(4) Any adult resident of the City of Ames
shall be qualified for appointment to
the commission.
(5) The term of appointment shall be five
years beginning April 1 of the year in
which the appointment is made, provided,
however, that the first members of the
commission shall , by drawing of lots,
obtain terms of office of 1 year, 2 years ,
3 years, 4 years , and 5 years respectively.
If a position becomes vacant before ex-
piration of the term of office, the mayor,
in accordance with established procedures,
shall appoint a person to serve the balance
of the unexpired term. There shall be no
reappointments of the same person to a
second term except that a person appointed
to serve the balance of an unexpired term
may be appointed to one full term if such
appointment will not result in the same
person serving on the commission for more
than seven consecutive years .
(6) Members of the Commission shall serve
without compensation except that actual
expense incurred by a member in perfor-
mance of duties may be reimbursed in
accordance with such procedures as are
established by the Commission and the
Director of Finance for the City of Ames .
Sec. 36-11026 . Separability.
(1) If any section, subsection, sentence,
clause, phrase, or portion of this
article is for any reason held invalid
or unconstitutional by any court of
competent jurisdiction, such portion
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 City of Ames, not a grant
of franchise to any particular person,
and this article shall not cease to be
effective upon expiration of any fran-
chise or change in the identity of a
grantee .
Sec. 6-11027 . Penalty.
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 Code , City
of Ames , and shall also be grounds for revocation
and termination of a franchise. "
Section Two. Violation of the provisions of this
ordinance shall constitute a misdemeanor punishable by a
fine not to exceed one hundred dollars ($100) or by impri-
sonment for a period not to exceed thirty (30) days .
Section Three . All ordinances or parts of ordinances
in conflict herewith are hereby repealed to the extent of
such conflict if any.
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Section Four. This ordinance shall be in full
force and effect from and after its passage and publication
as required by law.
Passed this 5th day of July 1978.
Mary E. Paul , City Clerk Lee Fellinger, Mayor
1st Reading - 6/27/78
Curtis/Hammer
Voting aye: Atherly, Curtis, Hammer, Huston, Van Drie.
Voting nay: None. Absent: Shank.
2nd Reading - 7/5/78
Curtis/Van Drie
Voting aye: Atherly, Curtis, Hammer, Huston, Van Drie.
Voting nay: None. Absent: Shank.
To suspend the rules
Curtis/Hammer
Voting aye: Atherly, Curtis, Hammer, Huston, Van Drie.
Voting nay: None. Absent: Shank.
To put the ordinance upon its final passage and adoption
Curtis/Hammer
Voting aye: Atherly, Curtis , Hammer, Huston, Van Drie.
Voting nay: None. Absent: Shank.
Vetoes by the Mayor this 13th day of July, 1978.
Mary E. Paul ,,Al ty Clerk
Passed by the City Council over the Mayor's veto July 18, 1978.
Hammer/Curtis
Voting aye: Atherly, Curtis, Hammer, Huston, Van Drie.
Voting nay: None. Absent: Shank.
flary E. Paul ,Xity Clerk