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1977-12-20 Correspondence
from the deeke of the CITY CLERKS OFFICE 9 • MEARDON, SUEPPEL, DOWNER & HAYES WILLIAM L.MEAROON LAWYERS TELEPHONE WILLIAM i.SUEPPEL 122 SOUTH LINN STREET 338-9222 ROBERT N. DOWNER JAMES P. HAYES IOWA CITY, IOWA 52240 AREA CODE 319 JAMES D. MCCARRAGHER THOMAS J.CILEK MARK T. HAMER THOMAS D.HOBART 1977 MARGARET T. LAINSON December 20, City Clerk Civic Center Iowa City, Iowa 52240 Re: Petition for Cable Television Franchise Vote Dear Abbe: Attached are approximately 1320 signatures on a Petition for Cable Television Franchise Vote. This matter will be brought about during special business at the City Council Meeting this evening. With kindest personal regards, I am JPH: je Very truly yours es P. Hayes � d E D OEC2 01977 ABBIE STOLFUS CITY CLERK zz 7 0 -1- I. WHAT IS CABLE TELEVISION? 0 It is exactly that, television brought to the set on a special wire. An antenna is no longer necessary with cable. The cable brings a whole new world of television entertainment to the set. Additional programming from distant cities is made possible. Instead of three to four channels to choose from, all twelve or more are presenting some kind of programming. Cost to consumer is about $7.50 per month around the country. A premium channel for an additional cost of about $8.50 brings in special entertainment via satellite from New York City to the earth station located in town. This service, probably Home Box Office, brings in eight first -run movies per month (two per week), uninterrupted by commercials and are the latest movies from Hollywood. It brings in many other special events not seen on television. A special religious channel from Atlanta will be available, along with stock ticket -tape quotations, weather, and local public use channel. New channels are constantly being offered via satellite. New stations are being announced frequently. II. HOW CABLE TV WORKS: A. A master receiving tower, equipped with sophisticated highgain antennaes and a satellite earth station pick up TV signals either off the air, by micro -wave relay or via satellite. 0 0 -2- B. Signals are amplified and transmitted through a special cable throughout the City. C. Cable utilizes existing utility poles. In those new areas where utilities are buried, the cable goes through the same conduit as other utilities. D. Every block amplifiers strengthen signals to insure bright, powerful, studio -clear reception in the home. E. Signals are fed into the homes on one single small wire. Beautiful, bright, clear colors all the time result on the home screen. There are no more TV ghosts distorted by images or weird and rolling lines. Most interference is a memory. III. WHO IS 14AKING THIS APPLICATION? EXPERIENCE DATES TO 1962 - SERVES OVER 476,000 SUBSCRIBERS Cox Cable Communications, Inc. is the major shareholder of Eastern Iowa Cablevision, Inc. Cox Cable Communications, Inc. is a wholly-owned subsidiary of Cox Broadcasting Corporation, a major group broadcaster. Cox's CATV experience dates to 1962. Included among the cable television facilities owned and operated by Cox Cable are the nation's oldest system in Astoria, Oregon, founded in 1948, and the nation's largest in metropolitan San Diego, California, serving over 143,000 subscribers. Cox Cable is in forty-one communities, including Davenport, Bettendorf, Moline, and recently Cedar Rapids, and election set in Marion. GROWTH 0 0 -3- In 1972, Cox Cable began an extensive cable system development program in "Top 100" markets. Since that time, the Company has constructed 3,700 miles of now cable plant passing over 350,000 homes. Two new major market systems in Spokane, Washington and Roanoke, Virginia opened for service in November, 1976. All new systems are built by the Company's own construction division, Cox Cable Development Company. PAY TV OPERATIONS Cox Cable became the first major cable television company to enter the pay television field when it leased a channel for that purpose in 1972. Since that time, the Company has implemented pay service in 19 of its CATV systems. These systems utilize either Home Box Office pro- gramming or Cox Cable's own Home Theatre format. AN INDUSTRY LEADER Cox Cable is generally considered by financial analysts to be one of the best managed companies in the CATV industry. Its performance record over the years tends to bear this out. Revenues, earnings, and subscriber growth have consistently outpaced industry averages. FINANCIAL STRENGTH For the year 1976, Cox Cable generated revenues of $37,845,501, a 29 percent increase over 1975. Net income totaled $3,714,423, a 30 percent gain over the previous year. With projected 1977 revenues in excess of $46 million and internally generated cash flow in excess of $16 0 0 -4- million, Cox Cable has the financial capability to successfully finance, build and operate the lONJOW system. COX BROADCASTING SYSTEM Cox Cable's parent company, Cox Broadcasting Corporation, is a major group broadcaster which owns and operates five VHF television stations and five AM and six Fid radio stations. Cox Broadcasting also is engaged in television and radio sales representation, business publishing, motion picture production, and automobile auction services. In 1976 Cox Broadcasting had revenues of $130 million and net income of over $19 million. 1977 revenues are projected to be $185 million and net income in excess of $24 million. SUMMARY Cox Cable's 15 years of experience in cable television has given the Company a high degree of expertise in major market system construction and operation, programming, and innovative technical appli- cation of cable's potential. Carefully planned expansion, fiscal inte- grity and subscriber acceptance has brought about uninterrupted growth and a solid financial record. All of this is important to the Council because it means experience and expertise. Cox is a national company with substantial commitment to the communication industry. IV. THE MERITS OF A SPECIAL ELECTION: Applicant has today filed formal request of the City to set a 0 0 -5- date for a special election on cable television. A. Iowa is the only state in the United States which requires an election by the voters. B. For the City Council an election is beneficial because it removes the Council from the uncomfortable position of forcing cable on the community by its own motion, without knowing thr sentiments of the community. C. And, Applicant considers an election a beneficial market- ing survey, as there is no better expression of the consumer's interest. D. The election places the burden where it belongs, squarely on the shoulders of the citizen to determine the question. For this reason most City Councils have welcomed the require- ment of a vote. V. THE IOWA LAW: A. There are two methods of setting an election date according to Chapter 364.2(4b): (1) City Council may set an election date on its own HE motion; (2) The City Council MUST set a special election date if the Applicant files a Petition. (i) The Petition must be as defined in Iowa Code Section 362.4 which states such a Petition is valid if signed by 10 percent of those who voted at the last regular City election. 0 0 -6- "362.4. . The Petition is vatid i 6 ei gned by etigibte efec.tou 06 the City equat in nwnbeh to 10 percent 06 .the persona who voted at the twat paeceding Aegutai City etection . . ." (ii) To be an eligible elector for the purposes of signing the Petition, they need not be registered voters. "39.3(1) . . . 'Etigibte etectoA' meant a person who pos6esses att o6 the quati6ications neeessaay to entitle him to AegisteA to vote, whetheA oA not he is so %eg.i.steAed. . ." So the City Council may set an election date on its own motion, but must set an election date if a Petition is filed as noted above. "364.2 - Sub -section 4a . . . A City may gaant to any pen.6on a 6Aanehi.6e to erect . . . eabte tetev.i,aion . . within .the City boa a teAm o6 not moAe than twenty-6ive (25) years. . . Sub-eection 4b . No such OAdinance shaft become e66ective unteas appaoved at an eteetion. The pAoposat may be submitted by the Counait on its own motion to the vote&z at ony City eteetion. Upon Aeceipt o6 a vakid Petition as de6.ined in 362.4 Aeque6tiuig a paopoa eb su6—inci ted to .the voteAs, the Counci.t ahatt submit the paoposat at the next AegutaA City eteetcon oA at a apec.ia.0 etecti.on ea.t.ted 604 that purpose pAioA to the next %egutoA City eteettion. 16 a mafoA,ity 06 those voting appAove the paoposat, the City may p weeed as pAoposed." So, upon the filing of a Petition, the date must be set and there is no discretion in the matter on the part of the City. We are filing such a Petition today. The Council may not turn the matter over to a Commission for study or evaluate the merits of cable television as to whether it should or should not be in the City. The law forecloses those evasions.* The filing of the Petition activates the duty of the Council to set the 0 0 election date. No other issues are relevant. A leading Iowa case is Lame v. Kramer, 145 N.W. 24 591 (1966). The Court there held that after the filing of the Petition: " The Mayor's functions did riot embrace a discretion." The Court in the Lame case cited with approval lowa Public Ser- vice v. Tourgee, 222 N.W. at 884, which held upon said filing of a Petition: . A mandatory and non -discretionary duty, enforceable by a mandamus, devolves upon the Mayor to call the election and make the submission. * "The Mayor has no discretion in the matter. He must act. Without any evasion, it was his express statutory duty, as defined in (statute) to submit said question to a vote. Moreover, that official, in refusing so to do, omitted to perform an act which the law enforces as a duty resulting from an office." B. Once the voters have approved the prospective cable ordinance, the City is then vested with power to grant it by Section 364.2(4a). The duty to set an election date promptly is clear. As noted, most Councils welcome this law as removing a burden from the Council and placing it on the people. VI. MAJORITY VOTE OF THE ELECTORATE REQUIRED: A cable franchise only becomes effective when approved at an election. Section 364.2(4b) requires only a majority of those voting. 11I6 a ma4o&itif o6 thoae votZig approve .the paopoaaf, .the City may pnoce as prtopoaed." See also, Abbot v. Iowa City, ?77 N.W. 4.i1. 0 0 10 The franchise submitted is only one page long and is on file with the City Clerk. VII. COST OF ELECTION: The cost of the election must be borne by the Applicant. It would be fair for the City in this case to require the posting of a certified bank draft with the City Clerk of this City to be held in escrow. Said check is attached hereto. The County Auditor has estimated the cost of a special election, and that cost is set forth in his letter marked Exhibit "A" herein. VIII. REGULATORY ORDINANCE: Regulations of the City must be enacted, too. This Ordinance will be submitted soon. The modern approach to cable franchise submission is to separate the enabling franchise itself from the regulations. The regulatory ordinance is passed by the City Council and can be amended from time to time as the City Council deems necessary to impose new regulations or otherwise. The regulations must, however, be approved by the Federal Communications Commission. IX. COUNTY AUDITOR: The Auditor is now the Commissioner of Elections. The statute grants him some. discretion in the date of the special election for orderly administration of his office as Commissioner of Elections. X. DATE REQUESTED: Applicant is asking that the City Council set the special to to election date on the 24th day of Januar, 1978. A letter from the County Auditor approving that date is attached hereto and marked Exhibit "A". A proposed Resolution for setting the special election date is presented with this filing containing the necessary legal inclusions and the Notice to the Auditor. All other legal proceedings have been completed and will be submitted on a timely basis to the Auditor as required to set up the special election. XI. EASTERN IOWA NETWORK Cox is in full operation in Davenport with 12,000 subscribers. It has just won in Cedar Rapids. An Eastern Iowa Network is under study by Cox which would join cities on its cable. Iowa City is the geographic and cultural center of the area. We foresee Iowa City as cable cultural and entertainment hub of the system, with all the activities that originate here. Channels will be reserved for this system. XII. TIMELINESS OF THIS APPLICATION: After the election and the adoption by the Council of the Regulatory Ordinance, the matters must be cleared by the FCC and a certi- ficate issued before construction of the cable can begin. Cox has just accomplished this in Cedar Rapids. It is believed that Iowa City could be taken through the FCC in concert with Cedar Rapids and done much more -10- (4uickly It the eleitlur, here 14 hold ij1 L)11, tly. The t 11%truction Savings and innovattun� perniitIt'd by tunstrutting sin:ultaneuusly ar-e great and are advmltages that revert to the consumer. therefore, this applitaLlon is timely, and delays will harm the system. CUNCLUSION: Cable television is a substantial amenity for this community. It will increase the quality of life and tie the City into the over- expanding cable coumunication field. Cable will bring icbs to the com- munity and involve considerable expenditures in construction and mainte- nance. Sixty communities in Iowa have cable, or construction is pending. Four thousand cities in the United States have cable. In Iowa cable has been approved in Des Moines, Davenport, Ottumwa, Burlington, Fort Dodge, Mason City, Cedar Rapids, Dubuque, Spencer, and many smaller towns. It is time for this City to enjoy this new entertainment vista. Cox Cable's background and experience, its performance record and financial capability assure the same success as in the company's forty-one other communities. Considering all of these positive points, Cox is well qualified to bring quality cable communication to this City. 24, 1978. We ask that the Council set the special election date on January BY EASTERN I011A CABLEVISION JOHN J. MURRAY Attorney Lom sL kci i johns --n counly nudilor commissioner of elections C6 voter rc�inlralion chief clerk. jim 8roff deputies: helen murray linda lanocnbcrg don rile, 0 MEMO To: Honorable Mayor and Council Members: From: County Commissioner of Elections 0 Re: Jim Hayes request for Franchise Election Information According to Section 47.6 of the 1977 Code of Iowa, 30 days notice is required from you, should you decide to submit a Franchise Election question to the public at a special election. Upon receipt of such notice, I am required to approve the proposed date unless it con- flicts with another election. The cose of a special election in Iowa City would be approximately $3500, based on the assumption that one machine and three elections workers per precinct would be used. Secion 364.2 states that ine person requesting the franchise shall pay the costs incurred in holding the election. However, the city is liable for the cost of the election if the county is unable to recover the payment from the petitioner. For that reason, I would recommend that you require the petitioner to post a bond in excess of the estimated costs, $5000 for instance, if you approve the proposal. Although there are no legal requirements of this nature, it does protect the city and has been done in similar situations, such as the recent Franchise Election in Cedar Rapids. The January 24, 1978 date suggested by Mr. Hayes pre- sents no particular problem to my office. Tom Slockett Johnson County Auditor and Commissioner of Elections 417 & clinlon • iovra ciLy. iowa 52240 • 319- 335-5.128 �� V: } it! �x '.;f.owd��5ti+ l•iJ`e ! ,.J`,; -rt L! )';'. �;. F'; '�:: . ,.., ,::.0 n - ,. °`iP y 4w r l L !�} 1 7. � y y �=. r'1�y,r �t! � � L, rm , t � r % ! C ( i ^ ! 1 , �� tc r i 11 I S�'r�i4 1 �l7,i'�tt.� � wv � i w.> !. i �. u t �.:; ,y � _ 1 w c e 4.,; x i y . i t..:- �. .. ^� �yy(ry(�..'y .DIYY" 1 y J P �I:: � : r y6� Y$J"44 rAl% � �y� � ifi 5 �..� y sr " .� w x r i "�V�,rs C {�1 i4 !� _ I K 4t F{/, r. H lI � ^[ y5d '� yl � F���vV.�1.�iY�/[:r l 1 i4 (- J 1 } v. � 11 .. �! .�. 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''.. i S . w HIGHLIGHTS •- Operating revenues rocorded a growth of 96 over the past hve years—to 5130.090.075—show- ing an 100/.' increase for 1976 Net income increased 1427;, over the past five years—to $19.758.960—posting a 389, increase for 1976 Annual gains in both operating revenues and net income were reported over the past five years Net income per common share has increased 140% over the past five years—reaching $3.36 per share in 1976. Tb:s represents an annual compounded growth rate of over 19% Return on shareholders' equity averaged 14% for the 5 -year period. with 1976 at 16%. Since Cox became a publicly -held company in 1964, earnings paid out in dividends ranged from 15% to 26% annually. Dividends paid have increased the past four consecutive years, with per share annual dividends rising from 300 to 550 effective with the quarterly dividend payment in October 1976. Shareholders' equity increased to $121,631,490, a 16% increase for 1976, and a 93% increase for the five-year period. Long-term notes payable decreased to 525.380.135 at the end of 1976. The ratio of long-term notes payable to total notes and equity was 17%. _ _ _ . o/ TO OUR SHAR OLDERS, EMPLOYEES, AND CUSTOMERS For the year 1976 flnanC6it instills well exceeded not only 19/5 but also our own forecasts made before the year began A Surprising demand for ddveitising time developed late in 1975 and the momentum carried forward into the first quarter of 1976. with broadcast advertising yarns of 24% being reported. Stations react to demand wilt) higher rates. at the same time advertisers increase their budgets and start buying earlier. Adding to the surge in demand was the summer Olympics, as well as the Bicen- tennial programming throughout the year. We hope television viewers would agree as to the general excellence of the Bicenten- nial programming in a year when our country needed an uplift in spirit. Broadcasting business continued to post strong year-to-year gains as the overall economy headed upward from the reces- sion. Political advertising added to the demand as the year progressed. All in all. the 28% increase in broadcast revenues for the year placed your Company on a new plateau of earnings on which we will con- tinue to build. Other divisions of the Company made important contributions to our earnings expansion. particularly the auto auction division, which had a strong first half of the year. Auction activity began to level off in the third quarter, beginning to reflect the lower levels of new car production for the past two years, as well as the effect of more stringent enforcement of the Federal Odom- eter Law. Somewhat slower annual growth is anticipated for 1977. The publishing division began a turn- around from the poor year experienced in 1975, when the electronics industry, in which we publish, was hard hit by the reces- sion. Management changes and a slowly strengthening market for electronics adver- tising in 1976 resulted in the beginning of the turn -around, which should continue at a faster pace in 1977. The program production division's record for 1976 was well below the previous year's results, reflecting the unpredictability of acceptance of new movies. Products re- leased in prior years were the mainstay of the division's operations, while "Special Delivery;' released during the year, proved unsuccessful. Production schedules call for two or three new features to be produced in 1977, with "Final Chapter Walking Tall;' on which filming already has been com- pleted, to be released in June. Cox Cable Communications posted another substantial increase in its operating results, with a growth in basic CATV sub- (0 Mr. Chambers: Mr. K01and scribers of 10.4% and the emerging of pay cable and MDS (Multipoint Distribution Service) as significant operating functions of that company. Expansion in newly fran- chised areas, including Roanoke and the Tidewater area of Virginia, plus increased acceptance of pay cable service give promise for a continuing favorable earnings trend. During 1976, Cox Data Services' develop- ment of its two major product lines—mini- computer systems for broadcasting stations and batch processing using a central data base for cable TV systems—resulted in a deficit from operations. We are hopeful that this is an investment which will begin to pay off in 1977. A number of topics involving the broadcast industry were highlighted during the year. One major topic was the subject of violence in TV programming. Another was the prob- lem of unsupported advertising claims in commercials, as well as the subtle topic of commercials being in good taste. All of our stations are members of the National Asso- ciation of Broadcasters Code, which sets forth guidelines in both areas. We have representation on that Code Board, and its activities are further highlighted in the broadcasting section of this report. Another broadcasting area under intense discussion during the year was the expansion of network news shows in the early evening from 1/2 hour to 1 hour, or possibly 45 minutes. While as a company we favor ex- pansion of network news, it was our position that such expansion should be hooted to the time presently being programmed by the network, and should not further encroach on the time programmed locally by our stations. Late in the year all three networks shelved clans for expansion of network news into local time periods. The year brought forth a new copyright law under which cable television will be required to pay a small percentage of its revenues for programs brought in from distant cities. We had long advocated that reasonable copyright fees were in order. Also, late in the year, the Supreme Court overturned the fee system of the Federal Communications Commission under which stations licensed by the FCC paid annual license fees, as well as transfer fees, upon acquisition or disposition of a station. Your Company has filed refund claims for fees already paid. In March, 1976, a petition to deny the renewal of our licenses to operate WSB TV - AM -FM in Atlanta was filed with the Federal Communications Commission. Based on the long record of service to the public by all three stations, we believe that the licenses will be renewed in due course. During the year we completed a study of the future of FM radio broadcasting and concluded that the prospects for that medium are indeed bright. As a result, we recently have announced acquisitions, subject to FCC approval, of FM stations in Baltimore, at a price of $3.9 million cash, and Philadelphia, at a price of $4.2 million On February 23,1977 the Board of Directors of Cox Broadcasting announced that an agreement in principle had been reached with representatives of Cox Cable Communications, Inc. on a proposal to merge the two companies. Under the proposal, stockholders of Cox Cable would receive S10.83 in cash and.43 of a share of Cox Broadcasting Corporation common stock for each share of Cox Cable Communications stock field. Based on Cox Broadcasting's closing price of 530.63 on Tuesday, February 22,1977, the total value to be received for each share of Cox Cable would be $24. On February 25,1977, Cox Cable announced that its Board of Directors had approved the agreement in principle for the merger. cash, this brings us to our limit of seven FM stations allowed by FCC rules In accordance with our policy of main- taining a reasonable payout of earnings, in September the Board approved an increase in the quarterly dividend rate to 131„ cents per share, effective with the payment made October 151h. In June. we were pleased to welcome Mr. Ben Love as a director of the Company. Mr. Love is chairman of Texas Commerce Bancshares in Houston At year end. Mr. Ernie Adams retired as Vice President, Engineering, after having completed 42 years of service. In this report last year, we detailed the results of a study entitled "Cox Looks at the Future;' which indicated that the next 10 years look encouraging for both the TV and cable industries. This year just ended began to bear out those predictions, and we are confident that 1977 will continue this favorable trend. A big thank you to our stockholders, our employes, and our friends for your support in 1976. ROBERT W. CHAMBERS Chairman of the Board CLIFFORD M. KIRTLAND. JR. President and Chief Executive Officer The proposal is subject to approval of a definitive mergeragreement by directors and shareholders of both companies. For the merger to be approved, a favorable vote by a majority of the Cox Cable shares voted by stockholders other than Cox Broadcasting Corporation would be necessary. Cox Broadcasting presently owns 56% of the shares of Cox Cable. Cox Broadcast- ing shares are traded on the New York Stock Exchange and Cox Cable on the American Stock Exchange. Cox Broadcasting's annual meeting of shareholders—previously announced for March 16,1977—was postponed. Share- holders will receive notices of the re- scheduled meeting, expected to be held late in the second quarter. 4 1976 HIGHLIGHTS For The Year Revenues . Income Before Taxes Income Taxes... . Income of Consolidated Companies Share of Net Income of Cox Cable Communications. Inc.. . Net Income ....................... Net Income Per Common Share....... . Depreciation and Amortization......... Al End of Year Net Current Assets ................... Long -Term Notes Payable. . .. ........ Shareholders' Equity .................. Number of Common Shares Outstanding % Increase 1976 1975 (Decrease) S 130,050,075 s 1 10.246.028 18'% 36,843,765 26,278,902 40 19,170,000 13.576.000 41 17,673,765 12.702,902 39 2,085,195 1,601,588 30 19,758,960 14,304.490 38 $3.36 $2.45 37 4,309,528 3,814,006 13 S 29,335,744 $ 20,254,418 45 25,380,135 28,002,828 (9) 121, 631, 49 0 104,451.967 16 5,875,062 5,857,178 Quarterly Comparison (dollars in thousands except per share amounts) REVENUES INCOME TAXES NET INCOME PER SHARE 1976 1975 1976 1975 1976 1975 1976 1975 First Quarter...... $ 27.642 $ 22,825 S 3.095 $ 1,985 S 3.224 $ 2,192 S .55 S .38 Second Quarter... 37.250 30,292 6.757 4,571 6.815 4,560 1.16 .78 Third Quarter..... 30.131 26,670 3,704 2,902 4,124 3,157 .70 .54 Fourth Quarter.... 35.067 30,459 5,614 4,118 5,596 4,395 .95 .75 Total ............. S130.090 $110,246 $19,170 $13,576 $19,759 $14,304 $3.36 $2.45 t 6 x BROADCASTING For broadcasting. 1976 was the best year The special report on FM radio which con - in history financially—both for the industry cludes this section shows that medium to be and our Company. Industry projections for healthy and growing. while AM radio con - the upcoming year are that revenues and tinues to be vital. profits will again increase but not at the Yet critics are numerous. particularly same levels of the banner year of 1976. concerning programming and advertising. Among the factors influencing the There are a number of social factors which industry's and our optimism for 1977 are: the are a base from which critics and activists economy is expected to remain stable ... launch their programs for change—faclors networks report their advertising space is which broadcasters use as irWicalors of virtually sold for the first three quarters . audienceswants and needs Among these TV and radio are getting a larger percentage are: of major retailers' advertising budgets than The growth of minorities and increasing in recent years newspaper rates are awareness of ethnic backgrounds; escalating sharply at the same time stations • The ascending level of education. which is are increasingly using electronic cameras' influencing a new morality and set of polit- and other techniques to lower the cost of ical values; television commercial production. • Increasing sophistication among the The vitality of broadcast advertising is public about law and government regulation; f that television viewing • Rapid growth of critics, particularly linking '. based on the act t 9 and radio listening are at all -lime highs. programming and the behavior of young More than 200 million Americansispend people. more time with radio and TV than any other The bulk of the criticism is aimed at ' form of daily activity except sleeping and television. which. ironically, leads to some working. In fact: of time spent with all media ' positive conclusions. Television is the most (newspapers.' magazines. movies and others), highly visible of all media. and. as such. is 88% is devoted to television and radio. the choice target of criticism. The fact that Television is the= 1 news medium and, people are concerned demonstrates the with the expansion of news programming importance of TV in their lives. and technical capabilities should remain so. I Jf i rw �' ^4 i a it i a rl WAY mum FOR woRo rvcaury rwmurmrmuamnus. sonar 1 r is 1 itI r 7 Research shows that television viewing comply with the internal policies established will continue to rise, and broadcasters want by Cox Broadcasting Corporation. the medium to represent high standards The Board of Directors of the Code and ideals. The tremendous impact of Authority of the National Association of broadcasting has created a deep concern Broadcasters is comprised of representa- among not only special interest groups bul tives of each of the networks, as well as also many parents, the government, social independent and network affiliated stations. and behavioral scientists, advertisers, and The Television Board was established in others. 1952, and the Radio Code Board dates to This concern has resulted in Cox Broad- 1937. A Cox Broadcasting executive is one f casting's making a self-imposed commitment of nine members of the Television Board, to provide responsible broadcast services— while a second one represents the Company 11 Radio Board. . especially as applied 10 programs that deal on the -member with controversial issues and with the whole The Code Boards not only provide a range of inter -personal relationships. system of self-regulation for the industry, but Cox Broadcasting has a special depart- also offer an additional channel through ment, Broadcast Standards and Practices. which the audience, advertiser, producer which works with each of our stations in and broadcaster can express their sugges- �.r determining the acceptabilityof program tions and criticisms. Any individual or and commercial material scheduled to be group representative can appear before the broadcast.rBroadcast Standards and Prac- board. Hundreds of subjects are presented tices is involved in a constant evaluation of to the board in person or in writing in rela- material that goes on the air to besure it tion to the standards set for advertising and meets the standards Iset by the Radio and programming. Television Codes of the National Association Cox Broadcasting constantly evaluates of Broadcasters, to which we subscribe, and. the tastes, needs, and desires of its audience _ by Federal Communications Commission to provide a basis for determining future) regulations. direction. New programming farms are u= In addition to these standards set up by developing. and the trend is for more long- 'events, industry groups, all broadcast material must form specials, sports, special and mini-series (such as "Best Sellers"), as well as more made -for -television' movies. This change will aitract top actors;, writers, and r producers, who have previously been unwill- ing to commit to long seasons. Acceptance of the mini-series has made it possible for -! television to buy the rights to books and; therefore, compete with theatrical producers tr for these rights. t I � � 'r... _ I It_ 31 1 } II , �a1p t 1. 1111, t$ f a f Z R b, b qx , 8 # • There will be continuing interest in news increased. over 1975. the amount Of time devoted to news Programming. and information Management of all Cox At each Cox television station, over the stations know that for then stations to excel. their news operations must be superior, past Iwo years. we have asked our audience Each stations goal is to be the best news how we can improve our news service. Our broadcaster in the market through strong research looks beyond the surface of pro - communication. good journalism and leader- gram cosmeticsWhen a Cox newscaster . ship in using the industry's technical goes into a home on television or radio, we want our hosts to have confidence in that advances. A recent report by the Federal Con nnuni Iteto feel they want to invite him or r back cations Commission Shows that as a group. Our stations are continuing to build up Cox television stations devote more time to continuity and professionalism in their news local news during prime lime hours (6-1.1 staffs which strengthens their programs. p.m.) than 12 of 13 other major group Our news staffs spend considerable time broadcasters. finding out what is happening in the nation During 1976 we continued to demonstrate news commitment and innovation. WSOC and the world what competition is affect doing, ..what changes affect their news. Radio (Charlotte) changed to an all -news approach. At our stations we communicate. formal. and audience reception has been not just report. rewarding. KTVU (TV—San Francisco- Rese, rch helps keep us in touch with Oakland): one of the nations leading inde- pendents, expanded primetime news to audiencesneeds and preferences. as well as makes LIS seven nights a week. a creditable move for a station not affiliated with a network. Cox stations �se wara i indepeOf Out �denllconsu tiing WHIO-TV (Dayton) introduced its own com- service. in addition to the Company's own puterized election to local viewers. research department. Research shows which a service WSB-TV (Atlanta) has offered for topics are of particular concern, and our staffs use that information to make news several elections: WSB Radio in lud 36 more valuable to the people we reach. news and public service awards, including four national honors. And all Cox stations �h ALLNEWS ALLTHE TIME 4r wll t r i�il'I�q ,t I 9 Broadcast stations have a big voice in the stations can expand their production of local community. Our stations' news departments commercials, helping boost the growth of actively are working to make their commu. retail advertising, nities better. One example is WSB-TV's Broadcasting is a competitive business "Operation Education" a year-long campaign by any measurement. The networks' ratings to improve public education-one of Atlanta's race this year demonstrates that fact, with top three problems, according to community ABC getting into the #1 position after being ascertainments: In Charlotte. WSOC-TV ;r3 for years. We feel there are three fine jarred some viewers with a mini-documentary networks that will be changing positions about transvestite clubs in the city, one of frequently and with close ratings numbers. many subjects that have impact on the That factor—plus the good balance that j quality of life. exists between network and station pro- In 1976, Cox TV stations averaged more gramming-means that network positions than90 hours a month devoted to locally- will not necessarily have a negative effect produced programming (entertainment. on our stations. Three of our TV stations are children's, public affairs, news and others), NBC affiliates (Atlanta, Pittsburgh and of which more than 55 hours were news- Charlotte); the Dayton station is CBS, and oriented. our independent station serves Oakland- Television and radio news is going to San Francisco. benefit from technology that is moving We believe strongly that the success of •rs toward miniaturization and improved quality. our stations is in direct ratio to the stations' Video tape isexpectedtosurpass film for tele- constructive involvement in their commu- vision production, and cameras are getting nities and to their ability to adapt to and +. smaller but better. However, 16mm film still capitalize on changing life styles. With the will have an important role in Cox TV stations' positions we've established in our markets, operations for the foreseeable future. as well as our alertness to changing publics, The use of videotape generally results in we are confident of a solid future in broad- lower cost of production, equipment, pro- casting. cessing and storage; among other aspects of^ xt telecasting. A major benefit will be that Ah S � L r t r I 11 r t 10 COX LOOKS AT'rM RADIO: PAST, PRES T AND FUTURE t t In the fall of 1976. Cox released a com- in Philadelphia. Both are subject to approval by the Federal Communications Commission. prehensive study entitled COX LOOKS AT The COX LOOKS AT FM RADIO study was 4 FM RADIO: PAST, PRESENT AND FUTURE. prompted by an earlier report, COX LOOKS The report concludes that, after much delay T THE FUTURE. The 1975 study—which A r over the years. FM now is ready to approach ected the next 10 years for advertising, t its rightful place as a mature member of the pro 1 .broadcasting industry. broadcasting and cable television—had ° Specifically. FM stations as a group will some intriguing results concerning FM radio. ' equator exceed the cash flow of all AM' COX LOOKS AT FM RADIO ascertains the stations by 1981, based on the significant current state of the FM portion of the radio i rise in FM's share of audience. In fact, in industry o t evaluates the major factors k terms of growth over the next five years, leading to the development a is as and a FM radio far will exceed any other form of projects future trends. Emphasis was put mass communications, according to the on the top 4G markets, and the study in- t I report. cluded some analysis of the total radio Cox is well positioned to participate in industry. June, 1976 we acquired Research, which took eight months to FM's growth; In Ju KOST-FM, Los Angeles, from McLendon complete, was conducted by the corporate development and research departments of Pacific Corporation for $2 2 million in cash Cox Broadcasting: A pioneer in applying and notes: WLIF, the FM facility we agreed computer technology to our industry, Cox I in December to acquire, is Baltimore's #1 used the resources of a subsidiary, Cox FM statioh'and the #2 station overall in i Data Services, to prepare projections. audience ratings. according to Arbitron Radio's latest report: October -November For copies of COX LOOKS AT FM RADIO 1 1976. The'same report, shows that WWSH, or COX LOOKS AT THE FUTURE, contact { which we agreed early in 1977 to purchase, the communications department at Carpo- < ill ° is the $1 FM station and the 43 station overall rate headquarters. k ALL FM STATIONS: NET REVENUES (Millions) l . 39379 I �. $ 564.2 1 $ 310.4 i $151.9 ' $67.4 II t i' 1969 1972 1975 1978 1981 ii LL FM STATIONS: CASH FLOW Millions A (Millions) .Income alter taxes plus depreciation and amortization t $87.1 $47.3 'r I $22.2 t $ 7.8 $1.9 ?j 1969 1972 1975 197 , !+! i1 8 1981 r. rrr OBILE AUCTION Cox Broadcasting was attracted to the wholesale auto auction business in 1968 because it is service-oriented ... has good growth and profit potential ... and has the ability to expand geographically. The sig- 1 nificance of these factors was demonstrated i in 1976 as auto auctions—the primary com- ponent of om-ponentof the services division—again made a substantial contribution to consolidated 1 revenues and pre-tax earnings. I> Four Cox auctions added an additional selling lane to their facilities during 1976, and the Company expanded the division in ! March with the opening of our 14th auction. located in the huge Los Angeles market. �j Our auctions provide facilities and services f I ' through which dealers and other wholesalers buy and sell used cars to balance their �) inventories and to respond quickly tochang- I Ing market conditions. Auction revenues it are derived from fees'collected for register - Ing each car for a sale. for selling a car and ` for carrying out procedures involved in transferring car ownership. Much of the growth in this division in 1976 came from increases in fees charged by the auctions and the two California h' h'oined the Cox group in auctions w is 1 mid -1975 and early 1976. Automobile auctions are an integral part The strength of our auctions' success depends on numerous factors, including 12— OBILE AUCTION Cox Broadcasting was attracted to the wholesale auto auction business in 1968 because it is service-oriented ... has good growth and profit potential ... and has the ability to expand geographically. The sig- 1 nificance of these factors was demonstrated i in 1976 as auto auctions—the primary com- ponent of om-ponentof the services division—again made a substantial contribution to consolidated 1 revenues and pre-tax earnings. I> Four Cox auctions added an additional selling lane to their facilities during 1976, and the Company expanded the division in ! March with the opening of our 14th auction. located in the huge Los Angeles market. �j Our auctions provide facilities and services f I ' through which dealers and other wholesalers buy and sell used cars to balance their �) inventories and to respond quickly tochang- I Ing market conditions. Auction revenues it are derived from fees'collected for register - Ing each car for a sale. for selling a car and ` for carrying out procedures involved in transferring car ownership. Much of the growth in this division in 1976 came from increases in fees charged by the auctions and the two California h' h'oined the Cox group in auctions w is 1 mid -1975 and early 1976. Automobile auctions are an integral part The strength of our auctions' success depends on numerous factors, including of the complex structure of automotive k-igeneral economic conditions, the total num- marketing, and we have confidence in the bar of cars on the roan, number of new cars.' long-range viability of the business: There approximately 200 auctions in the United I sold and legislation affecting the automobile industry, among others. The rate of growth are States, handling nearly 2.5 million used { j appears to have temporarily leveled off from cars annually: New car production for 1977 ',compared f recent years', because fewer new cars manu• is projected at 10.5 million.with 8 million in 1975, providing an expanded factured and sold the past two years, in ! i addition Co stricter enforcement of the used car market in subsequent years. We will I Federal Odometer Law, have resulted in a I I continue to seek acquisitions to expand this I{ smaller wholesale used car market. division. BUSINESS PUBLISHING The theme in business publishing for the administrative services field, and mer - 1976 was "rebuilding" as the division began chandisers of various electronics products, to come out of a severe slump the year respectively -were introduced in 1975. I before: The most beneficial factor in the Travel Master, which made its debut in 1976 modest turnaround was the firming up of the as a service primarily for travel agents, is a electronics industry as the, general economy' directory of hotels, motels and resorts world - improved, which stimulated advertising for wide. Among Travel Master's many features is our major publications. In addition, improve-' the Mobil Travel Guide, well known rating ment of certain electronics publications system of travel facilities. ` editorially and graphically, as well as the Over the past decade, the division has strengthening of their sales forces, made us benefited from, its mix of publications. Over - stronger competitors: all, in 1976, publications other than those in We nurtured several new publications the electronics field had a good year, with during 1976, which reduce earnings as they some showing significant increases. establish themselves in the market place, As we look ahead; we will continue to but which also offer potential for success. search out specialized publications in non - Lens, Corporate Systems and Electronics consumer areas, as we feel the business Retailing—serving photographers, readers in publications industry has a healthy future. I 13 MUM ON PICTURE PRODU6 N After riding a crest of four hit movies in over the lite of a film ... our movies are five years, the program production division well -produced at low-to-medium budgets of had a substantial reduction in profits in 1976. $1%:-3 million .., under the BCP banner, A new movie released during the year, we have partners who share the costs ... "Special Delivery^ did poorly at the box and we control the marketing function, office, at the same time income from pre- which is critical to a movie's success. vious years' successes was thinning out. In mid -1977 we will release the third in Movie production is our most unpre- our series of movies on Buford Pusser, r diclable business, since predetermining the legendary lawman from Tennessee. "Walk - tastes of the movie -going public -most of ing Tall" and the sequel were substantial whom are 15-25 years old—carries a high hits, and we feel "Final Chapter Walking degree of risk. Tall" will have the same appeal. BCP expects Curbing the risks are these factors: there to get two other movies underway during ,i are enough markets (television being one) 1977. for us to expect to get an investment back DATA PROCESSING SERVICES " Cox Data Services continued development presently is providing data service for in 1976 of its total in-house minicomputer 800,000 subscriber accounts for major cable Ii " system, which performs numerous business companies, including Cox Cable Communi- j functions for a television station. Staff has cations. In 1977, the operation is introducing been added and reorganized where neces- its new computerized billing and accounting r sary to increase customer support and services for cable television. The cable l jI servicing. Although our customer list was industry is growing so fast and becoming so expanded during the year, we considered diversified that computerized record keeping it prudent to limit our marketing 'effort until and management information` has to become further development took place. more sophisticated as customers'needsgrow. In addition to the system for TV. Cox Data i CABLE TELEVISION Cox Cable Communications, Inc., a 56 ` per cent -owned affiliate, extended its con- Cox Cable Communications, Inc. sistent recordof success— underscoring our Subscribers— December 31 ij belief that both cable television and broad - Wholly -owned casting can be economicallypiable and 'I complementary. We consider it a technolog- Partially -owned Ma ical advance that needs to find its rightful posit ion amo g n the media. Cable is an ' extension of a compatible list of communica- 76 tion'services, and we intend to keep a high profile in cable television. arrr, The record to'date indicates its potential. 75 Cox Cable again achieved record revenues "!fr and earnings in 1976, and the company's goal of a minimum 15 percent annual growth rate in earnings continues to be 74 " t realistic. Our affiliate serves more than 427,000 subscribers through 39 systems in r {; 17, states and Denmark, making it one of the cable television companies. nation's largest ca p 73 :. �. Ff it, 72 200 250 300 350 400 450 500 Thousands yy�� 14 FINANCIALS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation Intangible Assets Intangible assets represent the cost of I' The consolidated financial statements include the accounts of Cox Broadcasting purchased businesses in excess of the Corporation and all subsidiaries except Cox values ascribed to the net tangible assets Cable Communications, Inc. The operations received. Network affiliation contracts, FCC. of purchased businesses are included from licenses, and goodwill acquired in business the effective dates oi acquisition. combinations initiated prior to November 1970 are not amortized; such intangible Unconsolidated Subsidiary_ assets acquired in business combinations The investment in Cox Cable Communica- initiated after October 1970 are amortized tions, Inc., 56% owned, is stated at equity ', by the straight-line method over 40 years. in the underlying net assets, and the Leaseholds, subscription lists, and employ - I Company's share of the annual earnings ofment and other contracts are amortized by that subsidiary is included in net income. '< the straight-line method over 2 to 17 years. The Company expects the subsidiary's retained earnings to be reinvested indef- initely;'accordingly, no related deferred Pension Costs Current and prior service cost accrued income taxes have been provided. under the noncontributory pension plan is being funded'. Effective January 1,1976 Broadcast Program Rights the prior service cost amortization period > Rights to programs available for broadcast Was increased from 20 years to 40 years. are initially recorded at the ami^^l^ ' license fees'payable ung Investment Tax Credits Invstment tax credits are accounted for i agreements and arF expense general' hPflow through" method. Under this i' usage. The poi' d federal'income tax expense is', balance expF din the period investment tax credits i� •', expense in I ted in the financial statements. as a turret• ging Revenue it 11! ified as nr� sting revenue is recorded after program' ldvertising agency commissions'. II tion of W les representative and staff sales a Feature �s are included in selling expense. Reven jalue of barter and trade -out are recon �s is included in broadcasting r , expenses. nd broadcasting expense. These { amortizeo' ons represent advertising time based upo , . ged for program material, mer estimated lG Ise, or services. { primary and se amortized cost o, ome Per Share ,c Net income per common share is oom- f to pr ,� puled by dividing net income, reduced by asset. dividends on special preferred stock, by the Plant and Equipment weighted average of common shares out- i Plant and equipment are stated at cost less standing during each year. The potentially I depreciation. Depreciation is provided using dilutive effect of stock options outstanding P principally the straight-line method at rates— is not significant.' , based upon estimated useful livesbf 20to ,I� til 33 years for buildings, 5 to 20 years for broadcasting and other equipment, and 10 — to 20 years for land improvements: I�y � is a 14 FINANCIALS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation Intangible Assets The consolidated financial statements Intangible assets represent the cost of include the accounts of Cox Broadcasting purchased businesses in excess of the Corporation and all subsidiaries except Cox values ascribed to the net tangible assets Cable Communications, Inc. The operations received. Network affiliation contracts, FCC of purchased businesses are included from licenses, and goodwill acquired in business the effective dates of acquisition. combinations initiated prior to November t 1970 are not amortized; such intangible Unconsolidated Subsidiary assets acquired in business combinations The investment in Cox Cable Communica- initiated after October 1970 are amortized tions. Inc.. 56% owned, is stated at equity by the straight -fine method over 40 years. -, in the underlying net assets, and the Leaseholds, subscription lists, and employ - Company's share of the annual earnings of ment and other contracts are amortized by that subsidiary is included in net income. the straight-line method overt to 17 years. The Company expects the subsidiary's retained earnings to be reinvested indef- Pension Costs . initely; accordingly, no related deferred Current and prior service cost accrued • income taxes have been provided. under the noncontributory pension plan is Broadcast Program Rights being funded. Effective January 1,1976 the prior service cost amortization period Rights to programs available for broadcast was increased from 20 years to 40 years. are initially recorded at the amounts of total license fees payable under the license Investment Tax Credits ' agreements and are charged to operating Investment tax credits are accounted for i expense generally on the basis of program by the "flow through" method. Under this %i usage. The portion of the unamortized method federal income lax expense is'. j balance expected to be charged to operating reduced in the period investment tax credits expense in the succeeding year is classified are reported in the financial statements. x as a current asset, with the remainder class- Broadcasting Revenue ified as noncurrent. The liability for broadcast! program rights is not discounted for imputa- Broadcasting revenue is recorded after tion of interest since the effect is not material. deducting advertising agency commissions. National sales representative and staff sales Feature Film Productions commissions are included in selling expense. Revenues from feature film productions The fair value of barter and trade -out are recorded after deducting distributors' transactions is included in broadcasting expenses. The production cost of films is revenue and broadcasting expense. These amortized by charges to operating expense ; transactions represent advertising time based upon the ratio of income earned to : exchanged for program' material, mer-. j estimated total income to be earned from chandise', or services. primary and secondary markets. The un - Income Per Share amortized cost of completed films allocable jj to primary markets is classified as a'current Net income per common share is com- ". asset. putedby dividing net income, reduced by dividends on special preferred stock, by the Plant and Equipment weighted average of common shares out - Plant and equipment are staled at cost less standing during each year. The potentially depreciation. Depreciation is provided using dilutive effect of stock options outstanding ' principally, the straight-line method at rates is not significant. { based upon estimated useful lives of 20 to 33 years for buildings 5 to 20 years for 1; broadcasting and other equipment, and 10 til to 20 years for land improvements. ,t i r CONSOLtATED STATEMENT OF WCOME Cox Broadcashrnq Cutimiahun arnt Subsidiaries For The Year:, Ended December 31 1976 and 1975 1976 1975 Revenues 7— Operating $ I JO 090.015 $110.246,028 Interest and other 1.,.73470 1.456.577 Total 131 a63 545 111,704.60 Expenses Operating 49 187,481 47,259.640 Selling, general and administrative 39 077,532 32,220.226 Depreciation and amortization... 4309,528 3,814,006 Interest... 1,917.998 2,034,185 Federal and state income taxes.. ... 19.170,000 13,576,000 Other........ 327,241 97.646 99.001,703 Total... _ 113.989.780 Income of Consolidated Companies .................... 17,673,765 12,702,902 Share of net income of Cox Cable Communications, Inc... 2 085.195 1.601.588 Net income ........................................ $ 19,758.960 S 14.304.490 Per Weighted Average Common Share Outstanding - 5,865,000 shares in 1976 and 5,829,000 in 1975........ $3_36 $2_45 See summery of accounting policies and notes to financial statements. 16 CO OLI DATED BALANCE SAEET December 31.1976 and 1975 1976 1975 Assets Current Assets Cash and certificates of deposit....... $ 6 193 862 $ 4,842.431 Marketable securities—at cost which approximates market 14,699.762 6,123,106 Accounts and notes receivable—less allowances of $897,345 in 1976 and $794.765 in 1975.... 20 262 291 19.133.776 Broadcast program rights ............................. 6.110.050 5.724,428 Feature film productions ................. _ .... 2.065.325 2.996,684 Other .............. 4,483,711 3,843,931 Total current assets. ............. 53.815.006 42,664,356 Plant and Equipment ................................. 38.750.248 37,355.909 Intangible Assets .......... .......................... 56.999.215 56,019,260 Investment in Cox Cable Communications, Inc........... 15,294,405 14,202.972 Broadcast Program Rights. 5.500.232 5,692.002 Feature Film Productions ............................. 1.819.357 1,132,873 Other Assets ....................................... 2,747.66 1,875,03 Total ............................................... S174 926.131 $158942,41 Liabilities Current Liabilities Notes payable due within one year ..................... $ 2.453,664 $ 2,413,255 Accounts payable and accrued liabilities ................ 9,609 691 9,021,892 Federal income tax .................................. 5.682.444 4,532,510 Liability for broadcast program rights ................... 4.387.325 4,460,895 Dividends payable ................................... 807.821 658,933 Deferred income .................................... 1 538,11 1,322.45 Total current liabilities ................................ 24.479.262 22,409,938 Long -Term Notes Payable ............................ 25,380.135 28,002,828 Liability for Broadcast Program Rights .................. 2,691,937 2,954,859 Other Liabilities ..................................... 743.307 1,122,818 Shareholders' Equity Special preferred stock .............................. 1,000.000 1,000,000 Common stock ...................................... 5.875,062 5,857,411 Additional paid -in capital ............................. 17,446.887 17,072,348 Retained earnings ................................... 97,309.541 80,524,337 Cost of 233 common shares held in treasury ............. (2.129 104.451.967 Sharehold e rs' equity ................................. 121 631.490 $158 942.410 Total ............................................... $174,926,131 Soo summary or accounting policies and not os to llnanclnl statements. CONSOLIDATED STATEMENT OF SHARE LDERS' EQUITY Cox Broadcasting Col poration and Subsidiaries For The Years Ended December 31.1976 and 1975 Balance at January 1,1975..... . Net income .................. Sale of 51,000 shares of common stock under stock option plans (including 43,300 shares from treasury)....... . Cash dividends: Special preferred stock ($40 a share) .............. Common stock ($.41 / a share) Other (including 1 common share contributed).......... . Balance at December 31,1975 . . Net income .................. Sale of 17,884 shares of common stock under stock option plan (including 233 shares from treasury) ................... Cash dividends: Special preferred stock ($40 a share) .............. Common stock ($.50 a share) . Other ........................ Balance at December 31,1976 . . $1,000.000 $5.849.711 Common Special Additional Stock Preferred Common Paid•in Retained Held In Stock Stock Capital Earnings Treasury $1,000.000 $5.849.711 $16.906,281 868,917,880 $967,707 14,304,490 7.700 79,388 (249,757) (965,597 (40,000) (2,408,276) 84.679 19 1,000,000 5.857.411 17,072,348 80,524,337 2,129 19,758,960 17.651 268.350 (2.129 (40,000) (2,933,756) 106.189 $1.000.000 $5,875,06 517 446.887 $97,309.541 S Nil Soo summary of accounting policies and notes to financial statements. 17 la CON SO16ED STATEMENT OF HANGES IN FINANCIAL POSITION Iot lPitt yuarsEndedDuct, ill hur31 10It) and 1075 1976 1975 Source of Working Capital Ineuma of consolldatud companies $1 1613 765 $12.702,902 Expenses not requiring working capital Depreciation and amortization 4 309 528 3.814,006 Other items—not 1a0 12 1) 396.331 16,913,239 Working capital provided by operatcolr, : 1 .903 166 Disposals of plant and equipment. 1219.864 637,648 Decrease In noncurrent broadcast program rights 191.170 463,605 Common stock sold . ........ 288.130 802,928 Reduction of note from Cox Cable Communications, Inc_ 1 000.000 Long-term notes issued.. ....... 1,922.000 90.288 18.907.708 Total. M 524920 Application of Working Capital Additions to plantand equipment .............. ......... 6.168.343 7,444,918 Decrease in long-term liability for broadcast program rights . 262.922 674,030 Paymentof dividends ................................. 2.973.756 2,448,276 Reduction of long-term notes ........................... 4,544,693 1,906,808 Increase in noncurrent feature film productions........... 686,484 442,204 Additions to intangible assets ........................... 2.098,901 300,910 Other—net.......................................... 708.495 1,234,351 14.451.497 Total ................................................ 17.443,594 $ 4,456.211 Increase in Working Capital ............................ $ 9.081,326 Components of Increase In Working Capital Cash and marketable securities ......................... $ 9,928,087 $ 3,248,027 Accounts and notes receivable ......................... 1,128,515 2,317,220 Broadcast program rights .............................. 385,622 (80,786) Feature film productions ............................... (931,359) (739,524) Notes payable due within one year ...................... (40,409) 765,200 Accounts payable and accrued liabilities ................. (587,999) (1,434,702) Federal income tax ................................... (1,149,934) (201,513) Liability for broadcast program rights .................... 73,570 658,878 Deferred income ..................................... (215.664) 70,874 Other—net.......................................... 490,897 (147.463) S 4.456.211 Increase in Working Capital ............................ $ 9.081.326 Sea summery of accounting policies and notes to tinanclaIsla to mon Is. NOTES TO CCMSOLIDATED FINANCIAL STAB TEMENTS is Cox Broadcasting Corporation and Subsidiaries 1. Acquisitions In June 1976 the Company purchased the operating assets of FM radio station KOST in Los Angeles for approximately $2.200.000. of which $2.087.000 was allocated to intan- gible assets and the remainder principally to plant and equipment. During 1975 the Com- pany acquired an automobile auction in California for $100,000 in cash. The opera- tions of these purchased businesses were not significant in relation to the consolidated results of operations. The Company also purchased portions of the minority interests of certain subsidiaries during 1975 for $161,000, substantially all of which was allocated to intangible assets. 2. Investment in Cox Cable Communications, Inc. 1976 1975 Investment at January 1.. $14.202972 $12.601.384 Share of net income ...... 2.085 195 1.601.588 Share of increase in paid -in capital......... 6,238 Reduction of note receivable ............ 11.000 0001 Investment at December 31 $15.294405 514,202.972 The Company's investment includes a note receivable for $2,092.500 at December 31, 1976 and 53,092.500 at December 31,1975. The note bears interest at Y4 % above the prime rate, and is subordinated to the bank indebtedness of the subsidiary. Repayments of the note are limited to $1,000,000 on December 31,1977 and $1,092,500 on De- cember 31,1978. The financial position of Cox Cable Com- munications. Inc. and its subsidiaries at December 31,1976 and 1975 and the results of their operations for the years then ended are summarized as follows: The Company s cumulative share of undistributed earnings was $7.776.310 at December 31,1976 and 55.691.115 at December 31.1975 3. Broadcast Program Rights Beginning in 1976 program rights acquired and related liabilities incurred under broad- cast license agreements are reported for programs available for broadcast at the balance sheet date. Previously, rights and liabilities were reported for all executed contracts. The 1975 financial statements have been reclassified for comparative purposes. Commitments under executed contracts for programs not currently available for broadcast were $6,614,000 at December 31,1976 and $8.713,000 at De- cember 31.1975. 4. Plant and Equipment 1976 1975 Working capital. 5 12 529 $ 1.241,911 Plant and equipment.. 46.298.396 39.169,261 Intangible assets 16.423.374 17,046,303 Investment in Anton Petersen A/S 1237014 1.234.514 Other assets........ _ 2466.765 2.299,712 Total ................... 66.438.098 60,991.701 Long-term liabilities ..... 42 (396897 41,222y7G Net assets 5235412n1 $19769.525 Operating revenues .... 537.845_601 §29.307,44 Operating expenses...... 27.758.209 21,263.657 Interest 2 952.736 2.502,380 Income lazes. 3463.000 2.819,000 Other—not :1'166; __5127.3961 Total... a.1 IJ I bib 26.457.641 Net income 5 3.714.423 5 2,849 801 The Company s cumulative share of undistributed earnings was $7.776.310 at December 31,1976 and 55.691.115 at December 31.1975 3. Broadcast Program Rights Beginning in 1976 program rights acquired and related liabilities incurred under broad- cast license agreements are reported for programs available for broadcast at the balance sheet date. Previously, rights and liabilities were reported for all executed contracts. The 1975 financial statements have been reclassified for comparative purposes. Commitments under executed contracts for programs not currently available for broadcast were $6,614,000 at December 31,1976 and $8.713,000 at De- cember 31.1975. 4. Plant and Equipment Depreciation expense was $3,613,717 for 1976 and $3.034,010 for 1975. 5. Intangible Assets Network affiliation contracts. FCC licenses, and goodwill arising from acquisitions: Prior to November 1970, at crit .............. After October 1970, at cost less amortization. Leaseholds, subscription lists, and employment and other contracts—al cost less amortization ToInl. .. ........ ...... 1976 1975 $38.866201 $38,866,201 17.611.029 16,009,495 521 98_5 1,143.564 556999,215 $56.019,260 Amortization expense was $695,811 for 1976 and $779,996 for 1975. 1976 1975 Land and land improvements,....._. 510,79095t 5 9.917.686 Buildings. . .......... . 19.041.778 18.466.689 Broadcasting and other equipment............ 36,303.626 33.281,246 Total ................... 66.136.355 61.665.621 Less depreciation........ 27,386,10 _.7 24.309.712 Plant and equipment—net 538.750.246 $37,355.909 Depreciation expense was $3,613,717 for 1976 and $3.034,010 for 1975. 5. Intangible Assets Network affiliation contracts. FCC licenses, and goodwill arising from acquisitions: Prior to November 1970, at crit .............. After October 1970, at cost less amortization. Leaseholds, subscription lists, and employment and other contracts—al cost less amortization ToInl. .. ........ ...... 1976 1975 $38.866201 $38,866,201 17.611.029 16,009,495 521 98_5 1,143.564 556999,215 $56.019,260 Amortization expense was $695,811 for 1976 and $779,996 for 1975. 20 NOTES TO C SOLI DATED FINANCIA STATEMENTS 6. Long -Term Notes Payable The note agreement with an insurance company provides, among other things. that: (a) Minimum annual payments muf,t be made of $2,000.000 in 1977 and $2.310,000 each year from 1978 to 1987. (b) The Company may declare dividends or make other distributions on its stock, purchase or redeem its stock, or make loans and investments in excess of $1,000,000 only from 70% of consoli- dated earnings since January 1.1971 (less certain deductions) plus $2,000,000. Consolidated retained earnings not restricted under these provisions were approximately $36,300.000 at December 31,1976. (c) The companies must maintain not less than $12,000,000 of consolidated working capital, as defined by the agreement; such defined working capital at December 31,1976 was approximately $36,990,000. 7. Stock Option and Incentive Compensation Plans The Company has reserved 112,716 shares of its common stock for options granted under Qualified Stock Option Plan II, and has reserved an additional 14,060 shares for options the Board of Directors is authorized to grant. Options are granted at prices equal to the fair market value of the stock on the dates of grant; the total option price of all shares reserved for options outstanding at December 31,1976 is $1,862,203 ($10.13 to $24.88 a share). Options generally are exercisable from the dates of grant at the rate of 20% a year on a cumulative basis, and all options expire five years from the dates of grant. At December 31,1976 options for 49,620 shares are exercisable at a total option price of $899,340 ($10.13 to $24.88 a share); at Deconlbel 31 1975 options lot 40.652 shares were exercisable at a total option price of $744 225 ($10 13 to $24 88 a share) Transactions In Stock options are sun, manzed as follows'. 1976 1975 Payable to an mva.nl,.,• 1975 Genpan, it $1J i(hl,i. ,. 527 nan (10P Payable to ulhws li '„ to ler615p<I 4.1 300 front lrea5wy, 132.800) � 18.2001 8"., due in msl Ilnv.nb to 2.280111 5340, Outstanding at December 31 19d5 I h•lu nru 108145 Mortga9os 5':'l. to 8'. '., (17.884) Terminated dile In instalments to outstanding at December 31 11_716 1990 1.10 1.h, 894.083 Tolal 525380135 $28.002.828 The note agreement with an insurance company provides, among other things. that: (a) Minimum annual payments muf,t be made of $2,000.000 in 1977 and $2.310,000 each year from 1978 to 1987. (b) The Company may declare dividends or make other distributions on its stock, purchase or redeem its stock, or make loans and investments in excess of $1,000,000 only from 70% of consoli- dated earnings since January 1.1971 (less certain deductions) plus $2,000,000. Consolidated retained earnings not restricted under these provisions were approximately $36,300.000 at December 31,1976. (c) The companies must maintain not less than $12,000,000 of consolidated working capital, as defined by the agreement; such defined working capital at December 31,1976 was approximately $36,990,000. 7. Stock Option and Incentive Compensation Plans The Company has reserved 112,716 shares of its common stock for options granted under Qualified Stock Option Plan II, and has reserved an additional 14,060 shares for options the Board of Directors is authorized to grant. Options are granted at prices equal to the fair market value of the stock on the dates of grant; the total option price of all shares reserved for options outstanding at December 31,1976 is $1,862,203 ($10.13 to $24.88 a share). Options generally are exercisable from the dates of grant at the rate of 20% a year on a cumulative basis, and all options expire five years from the dates of grant. At December 31,1976 options for 49,620 shares are exercisable at a total option price of $899,340 ($10.13 to $24.88 a share); at Deconlbel 31 1975 options lot 40.652 shares were exercisable at a total option price of $744 225 ($10 13 to $24 88 a share) Transactions In Stock options are sun, manzed as follows'. The Company has an incentive compensa- tion plan for key employees selected by a committee of the Board of Directors. Awards are based upon the average return on invested assets, in excess of established criteria, during award periods of three years each. Payments may be made in cash or common stock of the Company, at the dis- cretion of the Committee; the Company has reserved 50,000 shares of its common stock for this purpose. Provisions for incentive compensation were 5736,000 in 1976 and $316,000 in 1975. 8. Capital Stock The Company is authorized to issue 20,000,000 shares of $1 par value common stock; 5,875,062 shares were issued at December 31,1976 and 5,857,411 shares at December 31,1975. All authorized shares (1,000) of the $1,000 par value, 4% cumulative special preferred stock are outstanding and are held by the principal common shareholders (the "Cox Family'). The special preferred share- holders have the right to elect a majority of the Board of Directors and are entitled to one vote per share with the common share- holders on all matters other than the election of directors. All voting rights of the special preferred stock terminale at such time as the Cox Family owns less than 40% of the issued and outstanding common stock, is outvoted on any matter submitted to the shareholders, or transfers the special preferred stock. The Number o1 Snares Plan II Plan 1 1975 0ut5t.m,Lng al January 1 164 560 33S40 Graelcu 45.260 ler615p<I 4.1 300 front lrea5wy, 132.800) � 18.2001 Terminated4( 2.280111 5340, Outstanding at December 31 134.760 N4 1976 Exercised 1233 from treasury) (17.884) Terminated (4,16 1 outstanding at December 31 11_716 Available for grant at December 31, 1976 14_060 The Company has an incentive compensa- tion plan for key employees selected by a committee of the Board of Directors. Awards are based upon the average return on invested assets, in excess of established criteria, during award periods of three years each. Payments may be made in cash or common stock of the Company, at the dis- cretion of the Committee; the Company has reserved 50,000 shares of its common stock for this purpose. Provisions for incentive compensation were 5736,000 in 1976 and $316,000 in 1975. 8. Capital Stock The Company is authorized to issue 20,000,000 shares of $1 par value common stock; 5,875,062 shares were issued at December 31,1976 and 5,857,411 shares at December 31,1975. All authorized shares (1,000) of the $1,000 par value, 4% cumulative special preferred stock are outstanding and are held by the principal common shareholders (the "Cox Family'). The special preferred share- holders have the right to elect a majority of the Board of Directors and are entitled to one vote per share with the common share- holders on all matters other than the election of directors. All voting rights of the special preferred stock terminale at such time as the Cox Family owns less than 40% of the issued and outstanding common stock, is outvoted on any matter submitted to the shareholders, or transfers the special preferred stock. The NOTES TO Cin SOLIDATED FINANCIAL STATEMENTS dividend rate mcro.Ises to 6 in Decumbut 1977 The Company IS ilullIOnled to issue 1.000.000 shares of $1 par value preferred stock. no shares of this class have been issued 9. Employee Retirement Plan The Company and its subsidiaries have a noncontributory pension plan for their employees. The total pension expense for 1976 was $1.100.000. which included $463.301 amortization of prior service cost, as compared with $490.750 and $34,752, respectively, for 1975. The Company chose not to fund approximately $413,000 in 1975 for 20 -year amortization of prior service cost, The change from 20 -year to 40 -year amorti- zation of prior service cost effective January 1,1976 decreased 1976 pension cost about $168,000. Other changes in actuarial as- sumptions in 1976 and 1975 did not signifi- cantly affect annual pension cost. On January 1,1975 the Plan was amended to integrate Plan benefits with social security benefits; this change did not significantly increase 1975 pension cost. On January 1, 1976 the Company amended the vesting provisions under the Plan to comply with the requirements of the Employee Retirement Income Security Act of 1974; this change increased 1976 pension cost about $158,000. As a result of the amended vesting pro- visions, vested benefits exceeded Plan assets by approximately $2,194,000 at January 1, 1976, the date of latest actuarial valuation. 10. Federal Income Tax Agreement has been reached with Internal Revenue Service on substantially all assess- ments proposed for years prior to 1972, and preliminary reports have been received on examinations of returns filed for 1972 and 1973. Management is of the opinion that the settlement of all proposed assessments will not have a material effect on the consolidated financial statements. Investment tax credits for 1976 and 1975 were $434,000 and $471,000. The Company is seeking federal income tax refunds relating to investment tax credits on motion picture production costs of prior years; the amounts of any refunds which ultimately may be received is not presently determinable. 11. Commitments and Contingencies In 19751he Federal Communications Commission 4doptod rules proscribing the conunun ownership of newspaper, television. radio and CATV properties in the same market areas Although the rules include grandfather provisions which would permit continuing ownership and operation of the Company's existing cross -owned broadcast- ing properties in Atlanta. Dayton. and Miami. they may apply prospectively to future license transfer applications and changes in ownership of the Company.These FCC rules were appealed, and on March 1.1977 a United States Court of Appeals handed down a decision which would require divestiture of existing newspaper/ broadcasting cross - ownership interests unless continued cross - ownership could be demonstrated clearly to be in the public interest.The Company expects further court appeals of this decision and, ultimately, further proceedings before the FCC. During 1976 a petition to deny renewal of the Company's Atlanta television and radio licenses was filed with the FCC by the American Civil Liberties Union of Georgia and the Atlanta Branch of the National Association for the Advancement of Colored People, alleging undue concentration of ownership and control of the mass media and certain unfair practices by the Cox Family interests in the Atlanta market. The Company is vigorously opposing this petition. With respect to these proceedings and other potential litigation challenging cross - ownership of communications media or the Company's broadcast licenses, management and counsel (1) expect no material adverse effects for the foreseeable future, (2) believe that any rearrangement, sale, or exchange of the Company's ownership or broadcast holdings that might ultimately be required could be accomplished without material adverse effect. (3) cannot, consider- ing the uncertainty created by the recent Court of Appeals decision, provide assur- ances as to the long-term effect on the operations of the Company. The Company and certain of its subsidiaries are defendants in other pending or threat- ened legal proceedings. No material liabilities or losses are expected to arise therefrom. The Company has agreed, subject to FCC approval, to purchase FM radio station WLIF 21 NOTES TO CONSOLI DATED FINANCIAL S 22 STATEMENTS in Baltimore for $3.900.000 and Ffvi radio station WWSH 1n Philadelphia for $4.200.000 12. Interim Financial Information (Unaudited) Quarterly operating results for 1976 are summarized as follows (amounts In thousands, except for net income per com- mon share): Quarter E oder? Mauch 31 June 70 Sept 30 Dec. 3f Operating Revenues 521642 $37.250 530,131 $35.067 Income Irom Operations 6.156 13.115 7.583 10.661 Net Income 3.224 6.815 4.124 5.596 Per common share S55 s 1 16 $ 70 $ 95 13. Proposed Merger With Cox Cable Communications, Inc. On February 23,1977 the Company reached agreement in principle with rep - Auditors' Report tusentalives of Cox Cable Communications, Inc On. proposal to InV10e the twocom- pan es in a transaction to be accounted for as a purchase of the 44", minority interest Under the proposal, stockholders of Cox Cable Communications Inc would receive $10.83 In cash and 43 of a share of Cox Broadcasting Corporation common stock for each share of Cox Cable Communications. Inc common stock held Based on the clos- ing market price for Cox Broadcasting Corporation common stock of $30.63 on Tuesday. February 22.1977, the total value to be received for each share of Cox Cable Communications. Inc. would be $24.00.The proposal is subject to approval of a definitive merger agreement by directors and share- holders of both companies. HASKINS & SELLS 35+u:0n13 sreccr nw cnnvrcc couuc .ccomrt<.n ATLANTA 30303 Cox Broadcasting Corporation, Its Directors and Shareholders: We have examined the consolidated balance sheet of Cox Broad- casting Corporation and subsidiaries as of December 31,1976 and 1975 and the related consolidated statements of income, shareholders equity, and changes in financial position for the years then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we con- sidered necessary in the circumstances. In our opinion, the accompanying consolidated statements present fairly the financial position of Cox Broadcasting Corporation and sub- sidiaries at December 31,1976 and 1975 and the results of their operations and the changes in their financial position for the years then ended, in conformity with generally accepted accounting princi- ples applied on a consistent basis. January 31,1977 (March 1.1977 as to Notes 11 and 13) FIii NCINL DATA BY DIVISI7N 23 For The Year Ended December 31 (Thousands of Dollars) 1976 1975 1974 1973 1972 Broadcasting Revenues. .. ...... S 87 965 S 68,656 $ 63.708 $57.237 848,945 Income Before IncomeTaxes ... 29 304 17.637 16.282 14,638 14,259 - Publishing Revenues ......................... 17.019 15.189 15.662 13.888 11,998 Income Before Income Taxes......... 1.441 1,200 3,119 2,740 2,276 Program Production Revenues ......................... 4.486 9,629 6,266 7.362 4,673 Income Before IncomeTaxes....... . 342 1,967 870 778 764 Services Automobile Auction Revenues....... 18.078 15,745 14,012 11,447 11,138 Income Before IncomeTaxes...... ... 6,530 5,889 4,246 2,532 2,089 ` Data Processing and Other Revenues . 2.542 1,027 759 682 527 Income Before IncomeTaxes......... (773) (414) (195) (187) (428) Consolidated Revenues ......................... 130.090 110,246 100,407 90,616 77,281 Income Before IncomeTaxes......... 36.844 26,279 24,322 20,501 18,960 ' Share of Net Income of Cox Cable Communications, Inc.. . . . . . ....... 2.085 1,601 1,192 1,055 952 A copy of the Corporation's 1976 Annual Report on Form 10-K filed wilh the Securities and Exchange Commission is available upon written request to the Corporate Secretary. 24 - 10 YEAR SUMMARY For The Year Ended December 31 (Thousands of dollars, except per share amounts) 1976 1975 1974 Operating Revenues....... . . $130090 5110.246 $100,407 Operating.Selling, General and Administrative Expenses 88.265 79.480 71,202 Income Before Income Taxes.... .. 36.844 26.279 24,322 !ncomeTaxes.................. . .. . _ . _ . _ 19.170 13.576 12,778 Income of Consolidated Companies... .. ... .. 11,674 12,703 11.544 Share of Net Income of Cox Cable Communications, Inc 2085 1,601 1,192 Net Income ...................................... +9.759 14,304 12.736 Net Income Per Common Share ..................... $3.36 $2.45 $2.18 Depreciation and Amortization ................. .... 4.310 3,814 3,929 Interest Expense ............................ ..... 1.918 2,034 2,281 Other Income—Net........................ ... ... 1,247 1,361 1.327 Dividends Per Common Share ...................... S.50 S.41% $.36% At December 31 Net Current Assets ................................ 29.336 20,254 15,502 Plant and Equipment ............................... 38.750 37,356 33,228 Long -Term Notes Payable .......................... 25.380 28,003 29,819 Shareholders'Equity .............................. 121,631 104,452 91,708 Number of Common Shares Outstanding ............. 5,875,062 5,857,178 5,806,179 Management Discussion and Analysis of 1976 and 1975 Operating Results 1976 Results Compared With 1975 Operating revenues increased 18% in 1976 compared with 1975. Contributing to the increase were: 1. Strong demand for broadcast advertising resulting from a rebounding economy and influenced by the Olympics, Bicentennial programming and the Presidential election. 2. Selected price increases in the broadcast and auto auction divisions. 3. Increased demand for space advertising in electronic publications after a severe slump in 1975. 4. Increased sales of mini -computers by the services division. 5. Addition of two auto auctions, one in mid - 1975 and one early in 1976. An offsetting factor was substantially lower revenues of the program production division due to two hit movies in 1975 while a new motion picture, "Special Delivery;' released in 1976 was unsuccessful at the box office. Operating expenses increased 11% in 1976 compared to 1975. Contributing to the in- crease were: 1. Comparatively normal increases in labor costs and the costs of materials and supplies. 2. Sales and certain other operating costs, including royalties paid for music use, associated with the increase in revenues, particularly in the broadcast division. 3. Expenses attributable to expanded opera- tions of the auto auction division. 4. Cost of sales and sales costs associated with the increased revenues from mini- computers. 5. An increase in advertising and promotion by the Company's broadcasting stations and new business publications. Lower costs associated with motion pictures were an offset. E . *__0__ 25 1973 $90,616 1972 $77,281 1971 $66,213 1970 $64.096 1969 $61,071 1968 $51,368 1967 $45,190 64,377 53,347 45,768 44,719 41,864 33.010 27,742 20.501 18,960 15,813 14,947 14,849 14,783 13,829 10,921 9,810 8,379 7,988 8,483 8,597 7,057 9,580 9.150 7,434 6,959 ?66 6,166 6,772 1,055 952 719 677 736 669 373 10,635 10,102 8,153 7,636 7,102 6,855 7,145 $1.82 $1.73 $1.40 $1.32 $1.23 $1.19 $1.23 4,383 3,836 3,496 3,351 3,088 2,373 2,121 1,976 1,606 1,623 1,825 1,977 1,785 1,745 621 468 487 744 707 583 247 $.35 $.30 $.30 $.30 $.26/ $.25 $.25 16,780 14,544 10, 596 10, 877 10, 670 11, 234 12,637 30,063 26,332 24,808 24,481 20,774 19,230 16,201 31,531 22,496 23,971 25,941 27,128 30,219 29,524 80,693 71,874 62,873 55,726 49,838 43,996 33,961 5,831,179 15,826.379 5,827,000 5,789,000 5,789,000 5,767,000 5,788,362 1975 Results Compared With 1974 Operating revenues increased 10% in 1975 compared with 1974. Strong national spot television revenue increases reported for the third and fourth quarters in the broad- casting division; the success of the motion pictures "Part II -Walking Tall" and "The Reincarnation of Peter Proud and increases in cars registered and sold through the auto auctions were the significant factors con- tributing to the increase in 1975 operating revenues. Lower advertising revenues for Electronic Products Magazine caused by the economic slump of the electronics industry and a decrease in photographic book sales partially offset the revenue gains of other operations. Operating expenses increased 12% in 1975 compared with 1974. Increases experienced in the broadcasting, publishing and auto auction divisions were normal and antici- pated. Costs associated with the motion pictures "Part II -Walking Tall" and "The Reincarnation of Peter Proud" represented 43% of the total expense increase. Depreciation and Amortization Depreciation expense increased in 1976 due principally to electronic news equip- ment put into service during 1975 and 1976, new building additions at two stations and the Anaheim auction facilities purchased early in 1976. Interest Expense Payments of notes which matured early in 1976 and 1975 and a prepayment in October 1976 of $2,000,000 on the note payable to an insurance company accounted for lower interest expense for 1976 and 1975. Income Taxes The increase in the Company's income taxes is due to the growth of operating profits as described above. The effective income tax rates for 1974 through 1976 computed on income before income taxes after eliminating nondeductible amortiza- tion of certain intangible assets varied less than 1% from year to year. :d LINES OF BUSINESS Cox ©road C.lshllg (.UIpJI .Ile ul lash Is engaged. eitherduoCII} In nu,l„III 'Id bsniialy Corporations. In bro.Idc.hfinq Vo%ioons Publishing motion picture prod,u tion opo(atlon of automobile ,ioCbons untl data processing services Through C1� Cable Communications Inc i Cox Cable .a 56 per cent -owned unconsnhd.ded subsidiary COX is engaged m the oper.dwn df Com- nulmtyantenna television CATV ayslenib Broadcasting COX owns five television stations live standard (AM) radio stations and five fre- quency modulation (FM) radio stations. All of COX's television stations are Very High Frequency (VHF). as opposed to Ultra High Frequency (UHF) With the exception of one television station. each of COX s television and radio stations is affiliated with a network. COX's television and radio broadcasting operations are subject to the jurisdichon of the Federal Communications Commission (FCC) under the Communications Act of 1934. as amended. COXalsoowns television and radio national sales representative firms. which sell time for national spot advertising. The firms' clients include COX television and radio stations as well as a limited number of tele- vision and radio stations owned by others. Business Publishing COX publishes various types of printed materials which are designed to be of interest h p1`l NI If" Il IIII ill 1•, .II II .. nLAI 11 "), , . Ilhl eg11ip11L41! 114!.1'. ,r ul.l t.`. 1:.! 1'.' Irll Ilool C.ov'-wi'l 141' d..,l�_R dl .ln�! ltllu0.nlr.r; 11111 eiltliplllerll l ollu%neo rn:l . n. �1%"J a aornoblle ptu In'l ud..� In.11n Irl Automobile Auctions COX operah`n I.I. ILII. 114 bdl•.nu.tll ms whlCh plovldt' 1•II dd - 11111 •servicer Ihlnugh wnich auloolobi6•n1.n111Llr lin`• , nl•wand used aulonwutlr .nil( nvllal and Icasin l conapann•r r.In I4ry and sell aulumu- biles ua order In requl.n` ,Inst Ise l: ut<:1! IhI•u mventorios Data Processing Services Cox Dala Service" wtivull`s r.nmputer software packages and uIhr`r (Lata processing services to the broadrasllnq and cable television Irtduslnes Motion Picture Production COX produces motion pictures for theatrical and television exhibition which are dis- Inbuled or syndicated through distribution companies. CATV COX owns 56 per cent of the stock of Cox Cable. which as of December 31.1976. operated 39 CATV systems having approxi- mately 427.000 subscribers COX accounts for its investment in Cox Cable on the equity basis, The CATV business is subject to regulation by the FCC. STOCK PRICE RANGE 1976 QUARTER HIGH LOW 1975 HIGH LOW FIRST $36% "i $28% $19% $109 SECOND 373; 303; 26% 18/ THIRD 37% 33% 26% 1BY, FOURTH 3436 27% 29!1 20% DIVIDENDS PAID QUARTER 1976 1975 FIRST $.11% $.10 SECOND .11/ .10 THIRD 11% .10 FOURTH .13% .10 YEAR $.47% $,40 Stock traded on the New York Stock Exchange r 27 DI RECTORY Board of Directors J Leonard Reinsch Committees Robert W Chambers Chairman of the Board. of the Board Chairman of the Board Cox Cable Communications' Executive ve Committee veAnthony.C c. (cable television) Clifford M Kirtland. Jr Garner irman President and Carl J Reith Anne Cox Chambers Chief Executive Officer President, President, Oxford Industries Clifford M Kirtland, Jr. (apparel manufacturers) Ben F Love Ivan Allen. Jr. Frites Seetigson J Leonard Reinsch hairman of the Board. Ivan Allen Company (retail OOwn er a Owner a and Operator of Audit Committee office products) Carl J. Reith, chairman Barbara Cox Anthony Corporate Staff Ivan Allen, Jr. Director, Cox Enterprises. Robert W. Chambers Inc. (newspaper publishing) Clifford M, Kirtland Jr President and Committee on Executive Garner Anthony Chief Executive Officer Compensation Chairman of the Board. Cox Stanley G Mouse J. Leonard Reinsch. Enterprises. Inc. Group Vice President chairman Anne Cox Chambers Ivan Alien. Jr. Director. Cox Enterprises. E. William Bohn Robert W. Chambers Inc. Vice President and Clifford M. Kirtland. Jr. Assistant Secretary Carl J. Reith Howard S. Kniffin H. Stewart Corbett. Jr. General Partner. Lazard Vice President and Registrar Freres & Co. (investment Assistant Treasurer Morgan Guaranty Trust bankers) Thomas J. Frawley Company of New York Ben F. Love Vice President Chairman and Transfer Agent Chief Executive Officer Raymond J. Tucker The Chase Manhattan Bank Texas Commerce Secretary and Treasurer Bancshares, Inc. Alan D. Chunka General Counsel John H. Magoon, Jr. Cont;ollerand Dow. Lohnes &Albertson President and Director, Assistant Treasurer Hawaiian Airlines, Inc. Marjorie A. Neuhoff Independent Auditors (commercial airline) Assistant Secretary Haskins & Sells Mr. Chambers Mr. Kirtland Mr. Allen Mrs. Anthony Mr. Anthony Mrs. Chambers tLiza 1J \, Mr. Kniffin Mr, Love Mr,Magoon Mr. Reinsch Mr. Reith Mr. Seelitison ... .....:.: , 28 DIRECTORY Broadcasting DIVISIOn J. Lee Morris Pricing Reports United Cost Service General Manager Elmo Ellis WSOC AM-FM. Charlotte Black Book Used Car Guide Vice President- Black Book Used Truck General Manager John D. Furman, Jr. Guide WSB AM-FM, Atlanta Assistant Secretary; Industrial Machinery News Director of Broadcast Floor Covering Weekly Don Elliot Heald Standards Amphoto (Photographic Vice President- Atlanta Publications) General Manager Retirement Advisory WSB-TV, Atlanta TeleRep, Inc. Services Freeman R. Jones New York City Vice President- Alfred M. Masini Services Division General Manager President Manheim Services WSOC-TV. CharlotteThe Christal Company Corporation Ronald L. Kempff New York City Manheim. Pennsylvania Vice President- Robert J. Duffy Warren Young General Manager President President WHIO AM-FM, Dayton Program Production Auctions: Michael S. Kievman Division Vice President -Programming Manheim, Pennsylvania Atlanta BCP, Inc. Bordentown, New Jersey Hollywood. California Fredericksburg, Virginia Jack P. McCarthy Charles A. Pratt Kansas City. Missouri Vice President President Indianapolis, Indiana General Manager Lakeland, Florida Weneral , Dayton Publishing Division Atlanta. Georgia William A. Schwartz High Point, North Carolina Vice President- United Technical Pittsburgh, Pennsylvania General Manager Publications, Inc. Milwaukee, Wisconsin KTVU-TV, San Francisco- Garden City, New York Dallas, Texas Oakland Arthur I. Rabb Orlando, Florida President Fresno, California Leonard Swanson Vice President- Robert J. Males Anaheim, California General Manager Executive Vice President Cox Data Services, Inc. WIIC-TV, Pittsburgh and Treasurer Atlanta, Georgia Robert W. Wehrman Publications: James A. Landon Vice President-Engineering Electronic Engineers Master Executive Vice President Atlanta Electronic Products James W. Wesley, Jr. Electronics Retailing Cox Cable Communications, Inc. Vice President- IC Update Master General Manager Off-the-Shell Catalog 9 Atlanta. Georgia KFI/KOST-FM, Los Angeles Office Products News J. Leonard Reinsch Office World News Chairman Joseph F. Abernathy Corporate Systems General Manager LENS Henry W. Harris WIODIWAIA-FM, Miami Travel Master President r BACRGROUHD ANU EXPERIENCE OF COX CABLE COMMUNICATIONS, INC. EXPERIENCE DATES TO 1962 Cox Cable Communications, Inc. is a wholly-owned subsidiary of Cox Broadcasting Corporation, a major group broadcaster. Cox's CATV experience dates to 1962 with the acquisition of the Lewistown, Pennsylvania cable television system. A conservative approach based on sound business principles has been the cornerstone of Cox Cable's development policy. Coupled with innovative marketing techniques, it has enabled the Company in the past nine years to increase by 6198 the number of cable television subscribers it serves. SERVES OVER 483,000 SUBSCRIBERS Since 1968, when the Company began a major expansion program, Cox Cable has grown from 12 majority-owned cable systems with approximately 78,000 subscribers to 40 operating systems serving over 483,000 customers in 17 states. Included among the cable television facilities owned and operated by Cox Cable are the nation's oldest system in Astoria, Oregon, founded in 1948, and the nation's largest in metropolitan San Diego, California, serving over 143,000 subscribers. GROWTH In 1972, Cox Cable began an extensive cable system development program in "Top 100" markets. Since that time, the Company has constructed 3,700 miles of new cable plant passing over 350,000 homes. Two new major market systems in Spokane, Washington and Roanoke, Virginia opened for service in November, 1976. All new systems are built by the Company's own construction division, Cox Cable Development Company. lJ 'IV OPLRA'I'1ONS Cox Cable became the II, �.l major Cable Lel evision company Io enter Lhc l.ay television field when iL leased a channel for that purlrose in 1972. Since that time, the Company has implemented pay service in 19 of its CATV systems. These systems utilize either Home Dox Office programming or Cox Cable's own Home Theatre format. Nine Company systems receive the pay TV signal via satellite earth station. The Company is also extremely active in the still experimental field of motion picture distribution via multipoint distribution service (MDS). Three Cox Cable MDS systems providing pay television service to apartment residents are now in early operational stages in Atlanta, Indiana- polis, and Minneapolis. Currently, over 81,000 customers subscribe to the optional cable/MDS pay TV service. AN INDUSTRY LEADER Cox Cable is generally considered by financial analysts to be one of the best managed companies in the CATV industry. Its performance record over the years tends to bear this out. Revenues, earnings, and subscriber growth have consis- tently outpaced industry averages. FINANCIAL STRE14GTII Fqr the year 1976, Cox Cable generated revenues of $37,045,501, a 29 percent increase over 1975. Net income totaled $3,714,423, a 30 percent gain over the previous year. With projected 1977 revenues in excess of $46 million and internally generated cash flow in excess of $16 million, Cox Cable has the financial capability to successfully finance, build, and operate major market cable television systems. 0 Cox BRonucnsTlrc C01WoRATION 0 Cox Cable's parent comi.any, cox Broadcast ing Corporation, is a major group broadcaster which owns and operates five VuF television stations and five I'M and six FM radio stations. Cox Broadcasting also is engaged in television and radio sales representation, business publishing, motion picture production, and automobile auction services. In 1976, Cox Broadcasting had revenues of $130 million and net income of over $19 million. 1977 revenues are projected to be $185 million and net income in excess of $24 million. Cox Cable Development Company Cox Cable Development Company, a division of Cox Cable, is responsible for construction and early operation of all new Company systems. This division . maintains a permanent staff of experts in system design and construction. This concept of new system construction under experienced, full-time personnel makes cost efficiencies and a rapid construction schedule possible and provides a high degree of quality control. since 1972, when FCC regulations permitted cable's expansion into the nation's top -100 markets, Cox Cable Development Company has built new cable television systems it. more major market cities than any other cable company. Mission Cable's miles of cable plant Son Diego, total over 2,000, 1,300 of which were California constructed in the 3 -year period, 1972 - Market #51 1975. With 146,894 subscribers, Mission is the nation's largest cable television system. Moline, Ill./ Passing 61,000 homes, the 589 -mile Davenport, Iowa Quint Cities system was completed in 1974. Market #60 11 Cox Calle Uevulopment Company (coonl.'d) Saginaw, Michigan Market 1161 Hartford, Conn. Suburbs Market 419 Roanoke, Virginia Market #70 Spokane, Washington Market #76 Norfolk, Portsmouth, Virginia Beach, Virginia Market #44 SUMMARY J Phis 410 -mile system passing approximately 37,000 homes, was completed in ).974. The 327 -mile Hartford system serving 4 suburban cemnunities w•as completed in 1976. Begun in June, 1976, presently under construction. 381 miles of plant will be active December 31, 1977. System construction began March, 1976. Total 520 -mile system passing 60,000 homes will be completed by the end of 1977. 140 miles of plant- will be active by December 31, 1977. When completed, system will pass approximately 175,000 homes. Cox Cable's 15 years of experience in cable television has given the Company a high degree of expertise in major market system construction and operation, programming, and innovative technical application of: cable's potential. Carefully planned expansion., fiscal integrity and subscriber acceptance has brought about uninterrupted growth and a solid financial record. 0 � ,• CA IH J: 1'uMMUN 11, 11• I 1 IN: 1, IN''. • SYt;TVM:; IHFOI(MA'I•IUN • SYS'1'I•:M :;II IC:I 'R I BER5 Sail Dieg0, Calilr.lnla 1.11"89.1 Santa Barbara, Calltornia 42,711 Moline, Illinuir; Davenport, Iowa 22,354 Macon, Georgia 21,098 Bakersfield, California 15,543 Hartford, Connecticut 12,907 Spokane, Washington 12,677 Lubbocl-, Texas 11,955 Eureka, California 11,949 Warner Robins, Georgia 11,855 Saginaw, Michigan 11,788 North Adams, Massachusetts 11,665 Burlington, Vermont 11,630 Aberdeen, Washington 11,493 Myrtle Beach, South Carolina 10,921 Ocala, Florida 10,561 Rutland, Vermont 8,104 Marquette, Michigan 7,405 Lewistown, Pennsylvania 7,249 Peru, Indiana 6,978 Atlanta, Georgia 6,828 Roanoke, Virginia 5,577 Ishpeming, Michigan 5,483 Astoria, Oregon 5,194 The Dalles, Oregon 5,003 Lock Haven, Pennsylvania 4,900 Porterville, California 4,788 Sebring/Avon Park, Florida 4,433 Pensacola, Florida 4,239 Columbus, Indiana 4,186 Montpelier, Vermont 3,958 Wabash, Indiana 3,748 Saranac Lake/Lake Placid, Now York 3,380 Seaside, Oregon 2,732 Tyrone, Pennsylvania 2,699 Long Beach, Washington 2,327 _ Owosso, Michigan 2,126 Robinson, Illinois 1,914 Tupper Lake, New York 1,520 Munising, Michigan 891 TOTAL 483,663 November, 1977 LII I �4 5I'UhANL.IINl11U6 • All 1M1 �1 II 'I �' Isla J1 NOW H. YuM1uA, MAYO, M ...... I J. leem,d MAW, Pro 7'. J. M. Lao 0 ad... 1,. CY L. Go.ghly w.,n. G.1h6. Lm-, F. "Lm" Chau AWII,n M. Sbmm. May 2, 1977 Mr. William A. Pitney Cox Cable Communications 53 Perimeter Center S. Suite 300 Atlanta, GA Dear Mr. Pitney: Just three years ago, the summer of 1974, Spokane was considering applicants for our cable television franchise. It occurred to me last week (after reading of your plans for the final phase of construction) that much progress has been made in this short period of time. Cox Cable Television of Spokane has done a remarkable job of meeting the objectives outlined in what was admittedly a very demanding franchise. In fact, your entire Spokane operation is deserving of commendation --your building, your vehicles, and certainly your personnel. Spokane now has an excellent cable television system, made possible to a great degree by the positive approach of the Cox people. It has been a rewarding experience to have been part of this. Sincerely yours, 9 ' y7i , ��2L¢n2) 191J 1 Jack M. O'Brien, Jr. Councilman U I t vl NUKANL. Nr\11 IINki I I .1I11M_II 1 � A I Office of the City Manager May 4, 1977 Mr. William A. Pitney Cox Cable Communications 53 Perimeter Center East Suite 300 Atlanta, Georgia Dear Mr. Pitney: During the cable television franchising process in 1974, Spokane received proposals from four of the top cable companies in the country. We performed what we felt was a very detailed analysis of the competing proposals and evaluated each one in the areas of: 1) System Design; 2) Financial Status; 3) Management and Willing- ness to Work with the City; and 4) Track Record in Other Cities. In each of these four categories, Cox was rated number one and was subsequently awarded the franchise. We have now had the opportunity to observe Cox at close range while system development is occurring, and are very pleased to note that they are performing every bit as well as we had hoped. Cox is constructing a first class system, is meeting a very tight con- struction schedule, is very responsive to customer complaints, and has provided considerable assistance to the City in getting its "local government channel" off the ground. Their excellent record in Spokane is due to both an outstanding local manager, Mr. Roger Pierce, and excellent support from the home offices in Atlanta. In summary, we are very pleased with the performance to date of Cox Cable and are looking forward to a continuation of the fine working relationship which we have experienced thus far. Sincerely, F. Sylvin Fulwiler City Manager sTATi, Or Cc�NNisCTiCUT r /`/71.177/;, C t,vTN0 1. At /Tlo/;/r I -J J1sm:OP1i(rBuu.mN, Ilni�rruHu.Cussi.rn�-ri�..��; April 20, 1977 lir, William A. Pitney Vice !'resident - Development Cox Cable Communications 53 Perimeter Center :last Atlanta, Georgia 30346 Dear Ir. Pitney: Greater Hartford CATV, Inc., a subsidiary of Cox Cable Co,vunications, has been operating in the Greater Hartford area for the past three or four years. We have found the operation of this company to be conducted in a very professional manner, its service to be of a hi,h caliber, and its management a credit to the local community. Our engineeram; department, which investigates customer complaints, reports that complaints against the company have been minimal. tete feel you are to be congraLulated on the fine staff you have comprising the management of your local subsidiary. Very truly yours, rdorin L. liitchcll Director of Utilities Accounting and Finance GLI4:CJD:jc cc: Rr. Vincent A. Ring BEFORE THE HONORABLE CITY COUNCIL OF THE CITY OF 101 -IA CITY, IOWA IN THE MATTER OF: EASTERN IOWA CABLEVISIOR, INC. ,APPLICATION TO CITY COUNCIL FRANCHISE ORDINANCE. CONES NOW Eastern Iowa Cablevision, Inc. and hereby makes appli- cation to the Honorable City Council of Iowa City, Iowa as follows: 1. Eastern Iowa Cablevision, Inc. is an Iowa corporation. 2.. The said company seeks a franchise to construct, erect, maintain and operate a cable television system in the City of Iowa City. 3. That the governing statute (Section 364.1 of the 1977 Code of Iowa) states that no such franchise ordinance shall become effective unless approved at an election. Sub -section 4(b) thereof states that the City Coun- cil shall submit the proposal at the next regular City election or at a special election called for that purpose upon the receipt of a valid petition as defined in Section 362.4 of the Code of Iowa. 4. That said Petition containing signatures as required by 362.4 is either in the process of being secured at this filing, or is being filed herewith. 5. That accordingly, your Petitioner asks that upon the filing of said petition in accordance with Section 362.4 of the Code of Iowa, that the City Council submit for approval of the voters of Iowa City, Iowa, the attached. franchise marked Exhibit "A" and made a part hereof_ and take all other necessary steps to perfect same by a special election set for said purpose. WHEREFORE, your Petitioner asks that said franchise be submitted to the voters of Iowa City for their approval as aforesaid. EASTERN IOWA CABLEVISION, INC. 4.Zs 7 0 0 ORDINANCE N0, AN ORDINANCE TO GRANT EASTERN IOWA CAHLEVISION, IN(., A (.oRPORA1ION twGANlt10 AND EXISTING UNDER THE LAWS OF THE STATE Of IOWA, 11% 'diCCESSIIRS ANO THE NON-EXCLUSIVE RIGHTS, PRIVILEGES AND AUTHORIII to r.uN-)TRU(T, urli,All, MAINTAIN, REPAIR, REPLACE, RENEW, RECONSTRUCT, AND RIMOVI A CAIUI Il U VISION SYSTEM ACROSS PUBLIC PROPERTY IN THE CITY LIMITS luR A IIRM Of 10 111N (Ih) YEARS. BE IT ORDAINED by the City Council of the City of lowa Cily, John- son County, Iowa: 1. Grant to Franchise. A non-exclusive right is hereby granted to Eastern Iowa CaT evision, Inc., its successors and assigns, to establish, construct, operate, maintain, repair, replace, renew, reconstruct, and remove a cable television system across public property in the City limits for a term of fifteen (15) years, in accordance with the laws and regulations of the United States of America and the State of Iotra and the Ordinances and regulations of the City of Iowa City, Iowa, including the non-exclusive right, privilege, and authority: a. to sell and supply audio and video communication service to persons within the City; b. to use public property within the City; C. to engage in such further activities within the City as may now or hereinafter be consistent with the generally accepted principles applicable to the operation of a cable television system. 2. Effective Date of Franchise. The franchise shall become effec- tive from and after the effective date of this Ordinance and compliance by Eastern Iowa Cablevision, Inc. with Federal Communications Commission rules and regulations. 3. Eastern Iowa Cablevision, Inc. shall not assign or transfer any right granted under this Ordinance to any other person, company, or cor- poration without prior consent of the City Council, which consent shall not be unreasonably withheld, provided that the company shall have the right to assign the provisions of this Ordinance to a corporation to be formed and controlled by it, without prior consent of the City. 4. Should any section, clause or provision of this Ordinance be declared invalid by a Court of record, the same shall not affect the validity of the Ordinance as a whole or any part thereunder other than the part so de- clared invalid. 5. All Ordinances or parts thereof in conflict with the terms of this Ordinance are hereby repealed, provided, however, that such repeal shall only be to the extent of such conflict. This Ordinance shall be in full force and effect from and after its adoption and approval by the electors, City of Iowa City, Iowa, and its written • -2- a.ceptance by Eastern Iowa Cablevision, Inc. of Cedar Rapids, Iowa (an Iowa corporation). ATTEST: CITY LIERK I4AYOR 0 0 RL SIP ISI 10% CAlI INk. `JY( IA! I IIY I LLLT ION wi Inl IiAIItIt 01 Gloi%II'a. A LABLI ItLIVIS10% 1NAli1_oI%I 10 1A1�II1,1N IOWA CAli tlau,1ON, INC. wit IRIAs, Eastern Iow,l Cab It is lot,, In,. hd� made app) 1, ati on for a cable television sySteni Iran1-111se In the Litt' of low.] City, low'l; and WHLRLAS, said LdsLern Iowa Lablevislun, Inc. has filed with the City Clerk of lows City a PeliLion as del lood III So tion 362.4 of the 1977 Code of Iowa asking that a proposal for a cable television franchise grant to said company be submitted to the voters of Iowa City at the next special City election for approval, and WHEREAS, the said City Council is bound by law to submit the pro- posed Ordinance to the voters as required by Section 364.2(4) of the 1977 Code of Iowa upon filing of proper petitions as defined in Chapter 362.4 of the 1977 Code of Iowa, and WHEREAS, the City Council of Iowa City has examined said Petition on file and determines that it meets the requirements of 362.4 in all respects and is in good order, and WHEREAS, this City Council does now receive and consider for pas- sage Ordinance No. , entitled: "AN ORDINANCE TO GRANT EASTERN IOWA CABLEVISION INC., A CORPORATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF IOWA, ITS SUCCESSORS AND ASSIGNS, THE NON- EXCLUSIVE RIGHTS, PRIVILEGES AND AUTHORITY TO CONSTRUCT, OPERATE, MAINTAIN, REPAIR, REPLACE, RENEW, RECONSTRUCT, Ai4D REMOVE A CABLE TELEVISION SYSTEM ACROSS PUBLIC PROP- ERTY IN THE CITY LIMITS FOR A TERM OF FIFTEEN (15) YEARS." and WHEREAS, under the laws of the State of Iowa as aforesaid, any cable television system franchise granted by the City to be effective, must first be submitted to and approved by a majority of the legal electors voting thereon at a general or special election; and WHEREAS, it is now the intent and desire of the City Council to submit the question of granting a cable television system franchise to Eastern Iowa Cablevision, Inc., to the legal electors of this City at a special election for that purpose. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: II Section 1. That there shall be submitted to the qualified electors of said City, at a special election to be held on the .__ day of 197_-_, the following question, to wit: i "Shall Ordinance No. granting to Eastern Iowa Cablevision, Inc., a franchise to operate a cable television system in the City of Iowa City, Iowa, for a period of fifteen (15) years be approved? Said Ordinance being words and figures as follows, to wit: r] ukulNAN(A NO, 1] AN URDINANCI 10 t,uANI IA,IIkN looA LANLIVIs We ' IN(., A CORPORAT I04 AND I X F SI Ml; UNPIN ittf t,4% RF Till STATE UI 104A, IIS SIFCCLSSURS AND ASSlidt`., lilt NON- LWUSFVE 10111II11, PRIVILEGES AND MFTHORIIY IU UIN�1RUCT, OPLIZATE, MAIN1AIh, RLPAIR, RLPLALL, RENIW, RHOWRUCI, AND REMOVE A CABII TLLLVISION SYSILM ACROSS P1114 IL HRoftklY IN THE CITY LIHITS FOR A TERM OF FIFTEEN (15) YEARS. BE IT ORDAINED by the City Council of the City of Iowa City, Johnson County, Iowa: I. Grant to Franchise. A non-exclusive right is hereby granted to 1EdsCE1Fn fovia Cablevision, Inc., its successors and assigns. to establish, construct. operate, maintain, repair, replace, renew, reconstruct, and remove a cable television system across public property in the City limits for a term of fifteen (15) years, in accordance with the laws and regulations of the United States of America and the State of Iowa and the Ordinances and regulations of the City of Iowa City, including the non-exclusive right, privilege and authority: a. to sell and supply audio and video communication service to persons within the City; b. to use public property within the City; I C. to engage in such further activities within the City as may now or hereinafter be consistent with the generally accepted principles applicable to the operation of a cable television system. 2. Effective Date of Franchise. The franchise shall become effective from and after the effective date of this Ordi- nance and compliance by Eastern Iowa Cablevision, Inc. with Federal Communications Commission rules and regulations. 3. Eastern Iowa Cablevision, Inc. shall not assign or transfer any right granted under this Ordinance to any other person, company, or corporation without prior consent of the City Council, which consent shall not be unreasonably withheld, pro- vided that the company shall have .the right to assign the provi- sions of this Ordinance to a corporation to be formed and con- trolled by it, without prior consent of the City. 4. Should any section, clause or provision of this Ordinance be declared invalid by a court of record, the same shall not affect the validity of the Ordinance as a whole or any part thereunder other than the part so declared invalid. 5. All Ordinances or parts thereof in conflict with the terms of this Ordinance are hereby repealed, provided, how- ever, that such repeal shall only be to the extent of such con- flict. Pi I III, Urd Ina II,v aUall Dr Ur toll tor,v and et ta,l IIoII and al Let' I I e adopt loll -old aiwl ov.,I by the alri Cui s, C1Iy of Iowa City, Iowa, curd Ile woollen aiceptanie by (astern Iowa Giblevisloll, lug, of Ceder 1t.pld%, Iowa, (:ll Iowa corporaLloll MIAMI ATTEST; CITY —CL�€RK------- — Section 2. That the voting place or places for said election, and the hours the polls shall be opened and closed shall be as set out in the "Notice of Special City Election", said Notice to be prepared and approved by the County Commissioner of Elections. Section 3. That the form of ballot to be used at said election shall be printed on colored paper other than white, substantially in the form set forth in the "Notice of Special City Election". If more than one public measure shall be submitted to the electors at the time of the said election, all such measures shall be printed upon one ballot. Section 4. That the Election Board for the voting precinct or precincts shall be appointed by the County Commissioner of Elections, not less than fifteen (15) days before the date of said election, a certified copy of which appointment shall be officially placed on file in the Office of the Clerk of said City. Section 5. That the Auditor of Johnson County, Iowa, being the County Commissioner of Elections, is hereby directed to publish the "Notice of Special City Election" once in the , a 11 legal newspaper, printed wholly in the English language, as defined by Section Ij 618.3 of the Code of Iowa, published in said City and of general circulation therein, said publication to be not less than four clear days nor more than twenty days prior to the date of said election. Section 6. That the County Commissioner of Elections, pursuant to Section '47.2, Code of Iowa, 1975, is requested to designate the Clerk of said City as a Deputy County Commissioner of Elections, if said Commissioner believes such designation will be in the best interest of said election, and said Clerk, if so designated, is hereby directed and authorized to assist the Commissioner in administering the election conducted by the Commissioner for said City. �I Section 7. That the County Commissioner of Elections shall cause to be prepared all such ballots and election registers and other supplies as may be necessary for the proper and legal conduct of said election and the Clerk of said City is hereby authorized and directed to cooperate with said '1 Commissioner of Elections and to do and prepare all of the necessary proceed- ! ings in order to make said election legal and valid. Section 8. That the Clerk is hereby directed to file a certi- fied copy of this Resolution in the Office of the County Commissioner of Elections, which filing shall also constitute the "written notice" to the E .4. n U County Collnis Loner of I-Icctinns of the cle,trun date required to be yiven by the governin,l budy under the provisions of ihapter 47 of the Code of Iowa. PA%.UO AND APPROVED this day of 1977, ATTEST: CT IY-C�ER CT 'AYOR 0 0 uRTlf 1CAll STATE OF IOWA : SS JOHNSON COUNTY: I, the undersigned City Clerk of Iowa City, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate re- cords of said Municipality showing proceedings of the Council, and the same is a true and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have riot been amended or rescinded in any way; that meetinq and all action thereat was duly and publicly held pursuant to the rules of the Council and the provisions of Chapter 28A, Code of Iowa, upon advance notice to the public and media as required by said law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and seal of said Municipality hereto affixed this day of (SEAL) I' A. D.. 197 . J I 1 1 1 a � I J I 1 1 a � I f i rr 1L J I i rr 1L -- 1965 -i i'- 7 IA03 ��1 l Diu � �� '1917 WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF TCWA elKj `i IOWA, HEREBY PETITION THE :rt�n C Ir CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF �dj E_IrY IOWA, HEREBY PETITION THE 7:�ALv-\ CITY CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO n u '� a 71 o ! WE, THE UNDEPSIGNED ELIGIBLE ELECTORS OF 71Ux % C,r� IOWA, HEREBY PETITION THE jC(k1p CIT�� CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. NAME ADDRESS - DATE. a ADDRESS - DATE. 117, �'✓L� 1., „ :. _h � • / �� as --_'1 -- _ �, e ✓,1e'C 1�. �DZW�1v J IC�6�V C�ti�i7la(1 ;> i n 1 U / lij ' %tea/.:i ,=.• -, " m - �. /�� .�,i - -- ,�� i iC .t 64 / 1 i1 PETITION FOR CABLE TELEVISION FRANCHISE VOTE q WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF Z OLOA C ""' IOWA, HEREBY PETITION THE CAVA cIIY CITY COUNCIL TO WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF .36COA i IOWA, HEREBY PETITION THE :DWA CC('-( CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE 'PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF :]=iwA C;1 TIr IOWA, HEREBY PETITION THE u CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION FRANCHISE TO THE 'PROPOSAL OF GRANTING A CABLE TELEVISION MOM AA� �, a PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF UOUoh, Clr4 IOWA, HEREBY PETITION THE SC(tp Cly CITY COUNCIL TO ?� SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THEPROPOSALOF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN 'IOWA CABLEVISION INC. NAME AD DRESS ---DATE e Z2- ^,705 'OC i -33 V CS -71 (� 75 P5 35y -%Z78 6 sus l.' Ic I -- r ' n' �---a, �G ��7D1%lJ�u..2- .� ,r. ice%/,a• - ------._._— --_ �/ i *_ ° 2 PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF C.'ry IOWA, HEREBY PETITION THE AWA CiH CITY COUNCIL TO G G SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO i PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF C.'ry IOWA, HEREBY PETITION THE AWA CiH CITY COUNCIL TO G G SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO PETITION FOR.CABLE TELEVISION FRANCHISE VOTE i : PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF UOWA Cf IOWA, HEREBY PETITION THE IDWA Cary CITY COUNCIL TO �. SUBMIT TO THE, VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISIO14 INC. NAME ADDRESS — DATE 1 — � — -- — Ij T u L 41 A IE Ar Ci r 1 A.2 31 EnuewL—r �- - I / I 11 LLL ,r 1 /rte PETITION FOR CABLE TELEVISION FRANCHISE VOTE i WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF az`wA ClrL( IOWA, HEREBY PETITION THE Ilk" C-(n CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF"GRANTING A CABLE TELEVISION FRANCHISE TO ...rmcnwi vnvn 0nnTM7TCTnM TNC_ - e • L�t :GrE' f • PETITION FOR CABLE TELEVISION FRANCHISE. VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF U94, Gli q IOWA, HEREBY PETITION THE [:LX0A CAl'Y CITY COUNCIL TO y SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. NAME _ ADDRESS - DATE 00 k sw , Dec. �''�'Y� • `�-�—� ��...�� > t )�� ��.,�:--,__ � l "fir '» ( it 6 /C' �, ,. ✓ -/l —� ' 7 ��'�.��1�_�Gl.:�.� I✓2 �/ 5� � L "� 9 ,�. til c, ck u L�t :GrE' f PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF -rocs vC IOWA, HEREBY PETITION THE ,::1t)(.UD (�,(Ty CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. v_c.L�1LC c r 5 8z" C�+lui i 1rJ_ 77 V _3a/7 JLt"< L •y7 i �) ' ��ui .✓/ all U PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS 7PAgTRRN OF IOWA, HEREBY PETITION THE Tc()Jn C,iYC( CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF _GRANTING A CABLE TELEVISION FRANCHISE TO IOWA CABLEVISION INC. 0 PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF -±c0.'vk cay IOWA, HEREBY PETITION THE MC�WQ (-'I-ry CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. NAME i.I Ao ,(1 � i .x--) f;p 1� I ADDRESS DATE zA�64 )s �An , LA /r, r 4o 20.j� PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF A etc/ IOWA, HEREBY PETITION THE j(jc,4 CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. NAME � /� ' , 12 d ADDRESS ___DATE/�/rs/ /3 i3 C d ADDRESS ___DATE/�/rs/ PETITION FOR CABLE TELEVISIONFRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF .ZCU)A r(T-(( IOWA, HEREBY PETITION THE �7L CATTY CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO rAgTARN.TOWA CABLEVISION INC. 0 PETITION FOR CABLE TELEVISION FRANCHISE VOTE THE UNDERSIGNED ELIGIBLE ELECTORS OF (1(tJA C Cr �-C IOWA, HEREBY PETITION THE TGcuh ccry CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF Z-CLV� �l7� IOWA, HEREBY PETITION THE TOIL 0QTy CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO ON FOR CABLE TELEVISION FRANCHISE VOTE PETITI WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF 71'LQ.'^ CITY IOWA, HEREBY PETITION THE 1CX AL1 C Cts CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO i PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF .LCLVA CtrY IOWA, HEREBY PETITION THE LCLOA C1 i CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISIO14 INC. n' ,. ,,1. _� PETITION FOR CABLE TELEVISION FRANCHISE VOTE WE, THE UNDERSIGNED ELIGIBLE ELECTORS OF ,1 -(;cob (41--[ IOWA, HEREBY PETITION THE'J�LLLlf\ C(r) CITY COUNCIL TO SUBMIT TO THE VOTERS OF SAID CITY AT A SPECIAL ELECTION THE PROPOSAL OF GRANTING A CABLE TELEVISION FRANCHISE TO EASTERN IOWA CABLEVISION INC. City of Iowa Cite MEMORANDUM DATE: December 1, 1977 10: `licki J. nrei, Deputy City Clerk %i,G/L/ / FROM: Lawrence II. Kinney, Fire 'IirshalrG r 4 RE; Fire Inspection, 010 S. Dubuque named St. Ilichael's 1. Two (2) illuminated exit signs shall be placed above exit door. 2. One (1) fire extinguisher Shall be provided in bar area. 3. Nr. Hanrahan has consented that these recommendations will be taken care of as soon as possible. 4. Otherwise this establishment will meet the fire regulations. 4:;k(oS City of Iowa Cit* MEMORANDUM To: ROBERT KEATING, FIRE CHIEF CATIE: DECEMBER 5th. 1977 FROM: VICKI J. BREI, DEPUTY CITY CLERK REi ST. MICHAEL'S, 800 S. DUBUQUE Attached you will find an Application for Transfer of Beer - Liquor License for Michael R. Hanrahan. He formerly had a business located at 114 Wright St. called Depot Lunch, but now wishes to move the business to 800 S. Dubuque and call it St. Michael's. In order for our office to approve this transfer, we will need to have the Fire Dept. inspect the new premises to insure that it meets all fire regulations. We would appreciate if you could do this at your earliest convenience and send us a written approval by form of memo. If you have any questions, please call. Thank you. ICI J),j), C-4 ANN& I Toi Mayor and City Council of Iowa City J1_FU� From: Mr. and Mrs. 'Willard R. Lane CiIY CLEPK Re: Attached Petitions We 'ask the City Council to give careful attention to the concerns and requests of the residents of the'Court/Muscatine area as stated in the petition herewith submitted. At first it was anticipated that the petition would be, circulated on a modest basis, mainly to those who had attended the public meeting on the Court/Muscatine bridge. We anticipated 30 to 40 signatures. However, ' people heard about the petition and asked for copies, so that they could isy circulate''them in their immediate neighborhoods. Thus signatures were obtained.We wnat'to emphasize that the expanded response was spontaneous and completely without formal organization. t Thus we believe that evidence of genuine concern is shown by people ` who are affected(by the proposed widening of Muscatine Avenue and by the ,continuing problems of Ralston Creed. ' We found in conversations that people are objecting to the use of 'residential streets for increasing..traffic flow and .that they fear the Ralston Creek issue is losing momentum. Evidence of concern:is emphasized by, page 91,which is a list of petitioners north of the College Street bridge: 7 We believe that with some organization we could have had many many more people sign. There are hundreds who fear that the planning for the future means that their homes will be sacrificed in the name of progress. FA planning with numerouspeople and governmental units to establish perimeter traffic and to establish means to control Ralston Creed. We humbly; petition the council not to plan us out of the future. You are our only hope. i, i. �1 Ci:l C`.7 L CiTY CLERK , A PETITION DEC 1 31977 D To: City Council of Iowa City A13DIE S TOL.FUS CITY CLvzRK Re: Court/Muscatine Bridge and related street construction As citizens of the Court/Muscatine area, we the undersigned wish to express our opinions and concerns in regard to the proposed reconstruction of the bridge at Court and Muscatine and the possible widening of Muscatine Avenue. We understand: and accept the need for the construction of a new bridge. We support the proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly favor leaving all approaches at the width they are now. There should be improved traffic control with provision for safe pedestrian crossing. We reject the argument that the street should be widened because of'a projection that in 20 years the vehiculartrafficwill increase 2.5 times over the present. We reject this because it doesnot takel'into account the development of improved mass transit and extreme' fuel' shortages ';which' will lead to use of smaller cars. We feel that mass transit should be supported. We reject the idea that people living on Muscatine today should bear the hard- ship.of'widened streets based on a,20 year,projection that we feel will never be real,ized.. We are opposed to an increased rate of traffic flow in this residential area.: Muscatine must be'crossed 'by many school children_ attending 'LongfellowSchool'. Seaton's'and Watt's grocery stores have many pedestrian customers. ^ Many are elderly. r, A wider street with cars moving at a more rapid rate would be detri- mental. Weare concerned with the increased danger of flooding that we feel will occur. as a result of the; proposed widening of the bridge or box', cul vert. - We urge the city staff and council to consider how this danger canlbe lessened for downstream „i !residents, especially those thatlwould be affected by water backing up behind the ' College Street bridge. We suggest, the building of levees and the clearing of'' E. obstructing brush, trees and debr.is. We realize that the anticipated building of a damson the south, fork of Ralston Creek will do ,much to alleviate flooding problems. However, since in allyprobability the Court/Muscatine bridge will be completed well in advance of the dam we are asking for interim', _ P � 9 Protection. ' ---- ---------- -- --- - ------------- ----------- ---------- 7 Name Address J o i 1331 � z. •r�nc.rr/� //P-c/C.'. ��i0 -'/LC hit..c:.wSJ i�...... �)r..., C' ' N l ./ O / GYrI t4"", L2LielJ [-C•{u� Tr o Ile) Y /� '( 1'.�{�(_�/,'�t.C! (i �. .L. � l) 10 �TSi I h .t tr 4��L•i.• / {r .{i -!L, J iF I ' _ To: City Council of Iowa City A PETITION ��,ro I II DEC -917 I� ,ABBE S i OL'FUS CITY CLERIC Re: Court/Muscatine Bridge and related street construction As citizens of the Court/Muscatine area, we the undersigned wish to express our opinions and concerns in regard to the proposed reconstruction of the bridge at Court and Muscatine and the possible widening of Muscatine Avenue. We understand and accept the need for the construction of a new bridge. We support the proposed box culvert rather than a bridge which would have the deck higher than the 'abutting property. We strongly favor leaving all approacnes at the width they are now. 'There should be improved traffic control with provision for safe pedestrian crossing. We reject the argument that the street should be widened because of a projection that in 20 years the vehicular traffic will increase 2.5 times over the present. We reject this because it does not take into account the development of improved mass transit and extreme fuel shortages which will lead to use of smaller cars. We feel that mass transit should be supported. We reject the idea that people living on,Muscatine today should bear the hard- ship ofwidenedstreets based on a:20 year projection that we feel will never - be realized.. We are opposed to an increased rate of traffic flow in this residential area. Muscatine' must ,be'crossed ,by many school children attending Longfellow School. Seaton's and Watt's grocery stores have many pedestrian customers. Many are elderly. ";A wider street with cars` moving.' at a more rapid rate would be detri mental. We are concerned with the increased danger of flooding that we feel will occur as a result of the proposed widening of the bridge or box culvert. We urgeI I I I I city staff and 'council to consider ho„ this danger can be lessened for downstream residents, especially those thatlwould be affected by water backing up behind the College Street bridge. We suggest the building of levees and the clearing of p; obstructing brush,` trees, and debris. -We:realize;that the anticipated building q of a dam'on the south fork of:Ralston,Creek will;do much to alleviate flooding; problems.! However, since in all probability the;Court/Muscatine bridge will be completed well in,advance of the dam,iwe are asking for interim protection. -- -------- - --- ---- ------- ------- ----------- ----- ------- �e Re V e rs c Name, Address 5id(Ei. ZAI 67,1 r , J' r ao i In o CSAy Q �J f" �A� (?cam 7 2 ti J27o Yz� .29 AA I .3-3 rr To: City Council :of Iowa City A PETITION 1] Dr 1 .77 i t)L;= US Re: Court/Muscatine Bridge and related street construction CITY CLEPZK As citizens of the Court/Muscatine area, we the undersigned wish to express our opinions and concerns in regard to the proposed reconstruction of the bridge at Court and Muscatine and the possible widening of Muscatine Avenue. We understand and accept the need for the construction of a new bridge. We support the proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly favor leaving all approaches at the width they are now. There should be improved traffic control with provision for safe pedestriancrossing. We reject the argument that the street should be widened because of a:projection that ;in 20 years the :vehicular traffic will 'increase 2.5 times over the present." We reject this because it does not take intolaccount the development of improved mass ,transit and'extreme fuel 'shortages which will lead to use of smaller cars. <We feel that mass',transit,should be supported. We reject the idea that people living on Muscatine today should bear the hard- shi'p of widened streets based on a 20 year' projection that we feel will never be 'realized.. We are opposed to an increased rate of traffic flow in this residential area. Muscatine'must be 'crossed; by many school children attending Longfellow' School.' Seaton's'and Watt's grocery', stores have many pedestrian customers. Many are elderly.,, A wider street with cars moving at a more rapid rate would be detri- mental. We are concerned with the increased danger of flooding that we feel will occur as a result of ,the proposed 'widening of the ,bridge or'box culvert. We urge the staff and council to consider how this danger can be lessened for downstream residents,especially those that would be affected by water backing 'up -behind the ' Co.ilege Street bridge. We .suggest the building of levees and the clearing of obstructing brush, trees and debris. :We realize that,the anticipated building) of a dam on the south fork of Ralston Creek will do much to alleviate flooding problems. '.However, since in all probability theCourt/Muscatine bridge will be p of the ',dam, we are', asking for interim protection completed well in advance ------------ - ------------------- ----------------------------- -- 5 e - - -, Verse Name „Y! Address S I n ^' I ,,,; ; 5Z � , ,✓ /.^a2r� /71 rri�/.r� � 11 rY 53 C llU V c I:3/ <� l ll f, V) �Ccram 56 tide Q 1 O'1 (51u'�cr�h ne_ As) 1567 J�fS '�C•G'�Y� c ; ?l '�//.i�- �f�' - /il�S��,L��.rt.,.�/�i(.;1� C'Z'�,�.P L 4,4 j DEC l 1917 LID A PETITION To: City Council of Iowa City CIT V CLEii< Re: Court/Muscatine Bridge and related street construction As citizens of the Court/Muscatine area, we the undersigned wish to express, our opinions and concerns in regard to the proposed reconstruction of the bridge at Court and Muscatine and the possible widening of Muscatine Avenue. We understand and accept ,the need for the construction of a new bridge.' We support the proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly favor leaving all approaches at the width they are now. There should be improved traffic control with provision for safe pedestrian crossi"ng. We reject the argument that the street should be widened because of'a projection that in 20 years the vehicular traffic will increase 2.5,times over `thepresent. We reject this because it does not take into account the development of improved mass transit and extreme fuel shortages which will ',lead to use of smaller cars. We feel that mass transit should be supported. We reject the idea that people living on Muscatine today should bear the hard ship of widened streets''based on a 20 year projection that we feel willnever', be 'realized.. We are opposed to an increased rate of traffic flow in this residential area. Muscatine must be crossed by many school children attending Longfellow School. Seaton's and Watt's grocery stores have many pedestrian customers. Many are elderly.- A wider street with cars moving at a more rapid .rate would be detri- mental. We are concerned with the increased danger of flooding that we feel will occur 4, as a result of the proposed widening of the bridge or box culvert. We urge, the city staff and council to consider how this danger can be lessened for downstream residents, especially those that would be affected by water backing up behind the College Street bridge. We suggest the building of levees and the clearing of obstructing brush ,'trees"and debris. -We realize that the anticipated building of.a dam on the 'south fork of Ralston Creek will do much to alleviate'flo;oding problems.' However; since in all probability the Court/Muscatine bridge will, be completed well in advance of the dam, we are asking for interim protection. S' e h'eVerse L/ lame Address S , %�� li1 ✓. ./, i♦ /, r��r /�-/ nrV(U?J /-'^Lt.r JT- go i rVI�. I, i it f. ! f'4 i N 1i I� i n i f I c I � I GN i f< k i i 7C 1, I I d" I r✓ I I r 1+ I I�S�h M PZ yd t -IIS i a J '`+roil ray y� � I I i Ic iy i•�I�i i:. "i it�l i rx to � ru i i II thf Li i.: i `i t ''4w: 0( n S^ n X, ' afi 1. I r4- A PETITION lJ DEC! To: City Council of Iowa City f1 u;::' .` ";=UZ� Re: Court/Muscatine Bridge and related street construction" As citizens of the Court/Muscatine area, we the undersigned wish to express our 'opinions and concerns in regard to the proposed reconstruction of the bridge at Court and Muscatine and the possible widening of Muscatine Avenue. We understand and accept the need for the construction of a new bridge. We support the proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly favor leaving all approaches at the width they are now. There' should be improved traffic control with provision for safe pedestrian crossing. We reject the argument that the street should be widened because of a projection that in 20 years the vehicular traffic will increase 2.5 times over the ,present. We reject this because it does not take into account the development of improved mass,transit.and extreme fuel shortages which will 'lead ,to use of smaller cars. We feel that mass transit should be supported. We reject'tne idea that people living on Muscatine today should bear the hard- ship of.widened'streets based on a`20 year projection that we feel will never be realized.. We are opposed to anincreased rate of traffic flow in this residential area. Mus caiine''must be crossed by many ',schoolchildren attending Longfellow School:: Seaton's and Watt"s' grocery' stores have many pedestrian customers. ;Many are elderly. 'A wider street with cars:moving at a 'more rapid rate would be detri mental. We are concerned with the increased danger of flooding that we feel will occur as,a result of the proposed.widening of the',bridge'or box culvert. We urge the ,I city staff and council to consider 'how this', danger can be lessened for downstream residents,, especially those; that would be affected by water backing up behind-jthe College -:Street bridge. We suggest',the building of levees and the clearing of',, ` obstructing brush trees and debris, We realize that the anticipated, building of'a dam on the south fork of Ralston Creek''1will do much to alleviate flooding problems. However, since in all probability the Court/Muscatine bridge will be completed well in advance of the dam, we are asking for interim protection. -- ------- - ----------- -- --------------------------------------------- - Name Address `p lyDz / , �l �. Z r� F , o/i .=- r , �q is i I DEC 1 3';777 A PETITION To: City Council of Iowa City f'V "' 1 '� -115 Cfi 1 C_ERi< Rei Court/Muscatine Bridge and related street construction As citizens of the Court/Muscatine area, we the undersigned wish to express our opinions and concerns in regard to the proposed reconstruction of the bridge at Court and, Muscatine and the possible widening of Muscatine Avenue. We understand and accept the need for the construction of a new bridge. We support the proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly. favor leaving all approaches at the width they are now. There should be improved traffic control with provision for safe pedestrian crossing. We reject the argument that: the street should be widened because of a projection that:in 20 years the vehicular traffic will increase 2.5 times over the present. We reject this because it does not take into account the development of improved mass transit and extreme fuel shortages, which will lead to use of smaller cars. We feel that mass transit should be supported. We reject the idea that people living on Muscatine today should bear the hard ship of widened streets based on a 20 year projectionthat we feel will never be realized.. We are opposed to an increased rate of traffic flow in this residential area. Seusca atotineamust;be crossed by many school children attending Longfellow School. Watt's grocery, stores have many pedestrian customers. Many are elderly. A wider street with cars moving at a more rapid rate would be detri- mental. We are concerned with the increased',danger of flooding that we feel will occur as a result of the proposed widening,of the bridge or box culvert. We urge the city staff and council toyconsider how this 'danger can be.lessened rfor downstream residents„ especially those that would be affected by water backing up behind the College Street bridge. We suggest the building of levees and the clearing of obstructing brush, trees and debris. We realize that the anticipated building of a dam on the south fork of Ralston Creek will do much to alleviate flooding problems.':However,lsince in all probability the Court/Muscatine bridge will be t: completed well in advance of the dam, we are asking ',for interim protection. --- --------------=-------------- - - ------- Name Address C/h �" 2 7OP, (J it ,?.�i�iyi tc� /ylClL/� c�.r.uCc il.�i ��i'1 t n(Rtr t n �l �% xn EL z%J l / h D LIL 26-z Ply �— ' /J (iturV k / qj / ..._ �ir.Fry.cesa- ^' ' / •Nto< 3 � / �![ ! -1 *-�-✓-�ti- �/� Avg � w� � t. To: Re A PETITION - City Council of Iowa City DEC1 -)77I '_ U S Ci i 'i CLEi:IC Court/Muscatine Bridge and related street construction As citizens of the Court/Muscatine area, we the undersigned wish to express our opinions and concerns in regard to the proposed reconstruction of the bridge at Court and Muscatine and the possible widening of Muscatine Avenue. We understand and „accept the need for the construction of a new bridge. We support the proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly favor leaving all approaches at the width they, are now. There should be improved traffic control with provision for safe' pedestrian crossing. We reject the argument that the street should be widened because of a'projection that in'20 years the vehicular traffic will increase 2.5 times over the present. We reject this because it`does not take:into account the development of,improved mass transit and extreme fuel shortages which will lead to,use of smaller cars. We feel that mass transit should' be supported. We reject the idea that people living on Muscatine today should bear the hard- ship of, widened streets based on'a 20 year projection that'we feel will never be 'realized: We are opposed to an increased rate of traffic flow in this residential area. Muscatine must be'crossed ,by,many school children attending Longfellow School.; ':Seaton's and Watt's, grocery stores have many pedestrian customers. Many are elderly. A wider streetwith cars moving ata more rapid rate would be detri- mental. We are concerned with the increased 'danger of flooding that we feel will occur as a result of the proposed 'widening of the bridge or box culvert. We urge the <; city staff and council to consider how this danger can be lessened for downstream residents, especially those that would be affected by water backing up behind the + College Street bridge. We suggest the building of levees and.the clearing of obstructing brush, trees and debris. 'We realize that the anticipated' building $ `i of a -dam on the south fork of Ralston Creek will do much to alleviate flooding `s.. problems. :However, since in all probability the Court/Muscatine bridge will be completed well in advance of the dam, we are. asking for interim protection. -- -------------------------------- ------------------- I ------------- -------- Mame ',. Address 217 2eeLty4,ftn1 l� .11114f 41 lt;�IA- (12 44, 11rL7. A PETITION DEC 1 3 X377 r n__. To: City Council of Iowa City ii Vic._ S I J LF U S CITY CLERK' Re: Court/Muscatine Bridge and related street construction As citizens of the Court/Muscatine area, we the undersigned wish to express our opinions and concerns in regard to the proposed reconstruction of the bridge at Court and Muscatine and the possible widening of Muscatine Avenue. We understand and accept the need for the construction of a new bridge. We support ,the proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly favor leaving all approaches at the width they are now. There should'be -improved traffic control, with provision for safe pedestrian crossing. We reject the argument that the street should be widened because of a'projection that in 20 years the vehicular traffic will increase 2.5 times over the present. 'We reject:this',because it does not take into account' the development of improved mass transit and extreme fuel shortages which will lead to use of smaller cars., i We feel that mass ,transit should be supported. We reject the idea;that'people living on Muscatine today should bear the hard ship of widened streets based on a 20 year projection that we feel will never':' be realized.. We are opposed to, -an increased rate of traffic flow in this residential area. `Muscatine must be crossed by many'school children attendingjLongfellow'School.!' S eaton's and Watts grocery stores''have'many pedestrian customers. Many are elderly. 'A wider street'with cars'moving;rat amore rapid rate would be detri- mental. We are concerned with the increased danger of floodingthat we feel will occur', .r. as a, result of the proposed widening of the `bridge or, blox culvert. We urge,the city staff and council to consider'. how this danger can be lessened for downstream residents, especially those that would be affected by water'; backing up behind the ; College Street bridge. We suggest the building of levees and 'the clearing of obstructing brush,. trees and debris. We realize that the anticipated building', of a dam on the south fork 'of,Ralston Creek will do much to.'�,alleviate.flood ing,.' ,r problems. However, since in all probability the Court/Muscatine bridge will be completed well in 'advance of the dam, we are 'asking .for interim protection. ------ -------- --- ---------------- -------------------- - ---- -- -;e-;s ; -- e /fie e- rs e �;: 1 Hamel > 1�' Address S i c(`o nON m 11 l l U C� A''' (/ �n' ��Q I n l l (iii c .• ..Wvl'`.._... J r'/ ' ,,. n 3 t r"Al,, , r , �.25 � / VV4'frG•J' ��4f:� G/,1 %Iii�� �/,,,c d ,L %( uL:i �'�/ `/l /(.L (I'/! !LIG r /2�r (z / Iln:i✓/ r / l.i,R,t�.(' A't:.. 'c-�a /.�(• Y :.�/!,.'R7rj -�ttG `.�1^�. A PETITION To: City Council of Iowa City i o_C i >. 7 7 ilJ ti fl.,i �_i v`J CITY CLERK Re: Court/Muscatine Bridge and related street construction As citizens of the Court/Muscatine area, we the undersigned wish to express our, opinions and concerns in regard to the proposed reconstruction of the A th ible widenin of Muscatine Avenue. bridge at Court and Muscatine an a Foss 9 We understand and accept the need for the construction of a new bridge. We support the, proposed box culvert rather than a bridge which would have the deck higher than the abutting property. We strongly favor leaving all approaches at the width they are now. There should be; improved traffic control with provision for safe pedestrian crossing. We reject the argument that the street should be widened because of a projection that in '20 years the vehicular traffic will increase 2.5 times over the present. We reject this because it does not take into account the development of improved mass transit and extreme fuel shortages which will lead to use of 'smaller cars. We feel :that mass transit should be, supported. We reject the idea that people living on Muscatine today should bear the hard- - ship of widened streets based on a'20 year, projection that we feel will never', be realized.. We are opposed to an increased rate of traffic flow in this residential area. Muscatine must be,c,rossed by many school children attending Longfellow School. Seaton's and Watt's grocery stores have many pedestrian customers. Many are elderly., A wider street with cars moving at a more rapid rate would be detri- mental. We are concerned with the increased danger of flooding that we feel will occur as a result of the !,proposed widening of the bridge or box cal vert. We urge the city staff and council to :consider how this danger can be,lessened for downstream residents* We suggest the building of levees and the clearing of °obstructing brush Jtrees and debris.We realize that the anticipated' building; of a dam on the south fork of Ralston Creek will do much to alleviate' flooding problems. However since in all probability the Court/Muscatine bridge will be completed well in advance of the dam, we are asking,for,interim,protection. `------------------=----------------- ---------,-----------------=----------- Name Address Q i y269