HomeMy WebLinkAboutA001 - Council Action Form dated February 13, 1990 ITEM 6-,
DATE February 13, 1990
COUNCIL ACTION FORM
SUBJECT: FRANCHISE RENEWAL WITH HERITAGE CABLEVISION FOR CABLE
OPERATOR PRIVILEGES WITHIN THE CITY OF AMES
BACKGROUND:
Chapter 25 of the Municipal Code governs the authorization of any company or
individual to operate a cable television franchise within the City of Ames, Iowa.
Since 1978, Heritage Cablevision has operated a system in Ames under this
ordinance. The current agreement with Heritage is due to expire in 1993, at
the end of a 15-year granting period.
For the past twelve to eighteen months, it has been the contention of the City
that Heritage has not complied with Section 25.11(3) of the ordinance which
involves the grantee's responsibility to "establish and maintain a local studio
and remote production facilities. . .as shall be necessary and proper to support
local origination of programs for transmission over the system with access to the
public. . . ." In short, a public access studio.
It was Heritage's desire that a new franchise agreement be negotiated in
connection with the studio. The City agreed to enter into franchise renewal
negotiations provided that the City's franchise fee be raised from 3 o to 5% of
Heritage's local gross revenues, along with several other considerations. The
franchise funds support the operations of Channels 32 and 33.
'The attached franchise language reflects a new agreement with Heritage and a
:revised Chapter 25 for a 15-year period. Heritage is entering into a lease with
U.S. West for studio space in the building across the street to the south of the
new City Hall. Heritage will also provide $60,000 for studio equipment purchase
on a one-time basis. In addition, the City will receive a 5% franchise payment.
These are the main changes from the present franchise. Other changes involve
timing of payments, tree trimming, and administrative matters. The Ames
Schools and Iowa State are each guaranteed at least one channel.
ALTERNATIVES:
1L. Approve the attached franchise renewal agreement with Heritage Cablevision
and the revision to Chapter 25 of the Municipal Code.
2. Reject the attached franchise documents, and authorize City staff to file a
municipal infraction to enforce the current agreement.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that City Council adopt Alterna-
tive #1 and approve the 15-year cable franchise agreement.
COUNCIL ACTION•