HomeMy WebLinkAboutA001 - cover letter for ordinance CITT Ii
INEIS
50010
515/232-6210
March 18, 1982
Pat Brown, Chairperson
And Members of the
Ames Cable Television Commission
Dear Ms. Brown and Commission Members :
With this find the ordinance drafted with the Commission
at its March 17 meeting. The changes in the rate structure
also reflect the previously authorized rate increase filed
by the franchisee and approved by the City Council.
Very truly yours, •
�7
John R. Klaus
City Attorney
Encl .
cc J. Elwell
G. Bicknese
•
PQ�d�
To: Mayor and Members of City Council
ROM: City Manager' s Office �++
DATEs March 19, 1982
SUBJECT: Cable Television Franchise
With this agenda is a proposed ordinance and recommendation from the Cable TV
Commission to relax certain standards in the television franchise Ordinance.
The City Manager's Office has a number of concerns regarding that recommendation
and the purpose of this memorandum is to address those concerns.
The City Manager's Office would recommend that the City Council separate the
issues regarding service within the community. We would recommend that, should
the Council give consideration to the Cable Commission's recommendation, the
Council consider the downtown area in one action, and then consider whether or
not isolated pockets or uneconomical areas should be served within the terms
of the franchise granted by the voters.
The downtown area in the City of Ames does present a unique problem in that
all of the utilities in the downtown area are underground. There is no conduit
available that is already buried for the installation of the cable, and
installation would be costly. This office has not seen any estimates as to
the exact cost of said installation. Even though the company was fully aware
of the under-round installation at the time it made a presentation to obtain a
franchise, and even though it is the feeling of the City Manager's Office that
this area should not be waived, the downtown area, nonetheless, provides at
least a very weak justification for some kind of waiver from the Council .
The second portion of the Heritage proposal provides a system whereby
uneconomical pockets need not be served. Such a procedure is contrary to good
municipal policy. In every franchise case there are instances where some areas
are more expensive to serve than others. Heritage Cablevision was aware of these
areas prior to obtaining the franchise.
The City Manager's Office will be happy to make inquiry of other cities to
determine whether or not pockets of inconvenience are permitted waivers in
other cities, and if so, under what circumstances are they permitted. In
the meantime, the City Manager's Office recommends that the Ordinance be rejected.
It should also be pointed out that the Ordinance provides a substantial increase
in the rates to large multiple dwelling units. At the present time units numbering
6 through 49 are presently at $4.50 per unit. The new proposal says they shall
be negotiated up to 65% of the single user rate.
The old Ordinance provides that 50 100 shall be $3.00 per unit, and that over
100 shall be $2.50 per unit. The new Ordinance contains a provision that 50 and
over units shall be negotiated up to 50% of the single user rate. The rates
which are quoted in this memo are based on the rates in the Code and those rates
have been increased approximately 12% since the Code was printed.
This office has not seen income projections and justification for this matter,
although it was covered by the Commission.
/acp