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HomeMy WebLinkAbout1978-03-14 CorrespondenceMILFWI ILMw BY JORM MICROLAB LLUAR RAPIOZ) AHD JLC `i�/�L LLL' C1✓ ' to .N w�xc� ` z� gnu acrd TV, a v�a� -* /o' �c L' l� ` f oy✓ tie red c. �G L�o s. �P �lv�u all rJu f ' Al) a� a uJ Al MICROI ILI4EO DY i JORM MICR4�LA6 frpAu VAt'INS . '��5 Id01!IfS qoz�-t gnu, MlukUiILM.0 BY JOkM MICkOLAB Mr. Neal Berlin 3305 Arbor Drive Iowa City, Iowa 52240 Dear Mr. Berlin: CLOAk kAP W'-� AND jL COPY February 28, 1978 606 Westgate, #31 Iowa City, Iowa 52240 I'm in total agreement with you and the City Council on the cable television situation. I myself know little of cable TV and would like full facts on the issue before voting. I feel you and the City Council are showing thoughtful consideration in taking the time to present all the facts. As for Eastern Cablevision, I don't see the use of a lawsuit to them when we have never voted to accept them in the first place. There are other franchises to consider when Iowa City is ready. Thank you for your time. (signed) Mary Hauser Il, I I F II II I 111LkUFILALU by JORM 141CROLAB March 22, 1978 Ms. Mary Hauser 606 Westgate, #31 Iowa City, Iowa 52240 Dear Ms. Hauser: • LEUAti RAPIUJ ANU UL's At its regular meeting of March 14, 1978, the City Council received and placed on file your letter concerning cable television for Iowa City. Your favorable comments concerning the manner in which this subject is being handled are certainly appreciated. Thank you for taking time to write. Sincerely yours. Heal G. Berlin City Manager Is cc: City Clerk �.' MICRorILl4Co BY JORM MICR6LAB f I'oAn unr�m. �q5 mnm(,,, y es- o-ilu:i, 1L.AL.0 BY JOR14 111CRULAB Mayor Robert Vevera Iowa City Civic Center 410 East Washington Iowa City, Iowa 52240 Dear Sir, I LUAit i2Ai io' ANU OL� 'ice• �- 1101 Essex Street Iowa City, Iowa 52240 5 March 1978 I was pleased to learn that there is dialogue among City Council members about on -street parking --actually it is on - street garaging: Such parking makes it hazardous for city drivers on any street at any time of year. Winter's elements only intensify the situation. Out where we live - Essex is a one -block, one -ended street north of Wayne Avenue and just west of Village Green in south- east Iowa City-- cars park along the north half of Wayne right up to corners and even around the curve into the Village. We Essex Street drivers have to exit driving blind, because we just aren't equipped with x-ray vision to see through parked cars! But do our.Wayne Avenue neighbors ever give a thoupht to that? Apparently not. When Wayne had "NO PARKING" while Muscatine was being re- surfaced, all the Wayne Avenuers near Essex parked on both sides of our small street so we, living at the north end, could hardly get home. I don't expect the City Council to have a cure for Sel- fishness, but I do hope it can do something before one of us Essex Streeters is clobbered fatally, since cars block our vision both east and west, and few cars come out of Villape Green at a safe speed, considering our visibility situation. I'd appreciate ,your looking into this bug -a -boo. cc to Neal Berlin Very truly, (Mrs. Forrest Hickman) J,oLkD U MAR 71978 ABBIE STOLFUS CITY CLERK MICROF ILVILI) 6Y DORM MICRIILAB MR 1'11Uk Uf IL&U BY JDRM MICRULAB • CEUAR RAVIU'� AND uL:, :4�. �- • �+•^ CITY OF IOWA CITY CIVIC CEMER 410 E WASHINGION Si IOWA CITY; I' :M ' )' ('�19) X418 00 March 22, 1978 Vivian E. Hickman 1101 Essex Street Iowa City, Iowa 52240 Dear Mrs. Hickman: Thank you for your letter concerning the parking situation along Wayne Avenue adjacent to Essex Street. This letter has been sent to Jim Brachtel, the City's Traffic Engineer, to investigate the situation and take action if appropriate. If for some reason our investigation should indicate that parking prohibitions may not resolve the situation we will be in contact with you. inc rely, ,;0� Neal G. Berlin City Manager NGB/jp cc: Jim Brachtel U-A",Q �- oFtLMED BY JORM MICR(�LAB MAR 9ao111', . ')FS 1101!V iM MILkOFILMLD BY JURM MICROLAB March 3, 1978 City Council City of Iowa City 410 E. Washington St. Iowa City, Iowa 52240 Dear Council Members: CLUAR RAHIUS ANU UL' We are enclosing for your review a copy of our response to a request to remove parking from one side of Diana Street. A copy of Mr. Erachtel's letter to us is also enclosed. Please look into the matter of enforcement of the ordinances we have and consider making an ordinance to prohibit parking of over- size vehicles on our city streets. Any help that you can give us will be appreciated. Si erely,. �.�,� 1 f lJo ti -A DJC-�w� i Paul J. & inifred Holland 1105 Diana Street Iowa City, Iowa 52240 5.. wlCRunuam By i JORM MICR+LAB rrOAn PATTY nrS ?inI'Vr i h'87 M;t,itUi ILMLU BY JURM MICRULAb March 3, 1978 Mr. James Brachtel Traffic Engineer City of Iowa City 410 E. Washington St. Iowa City, IA 52240 Dear Mr. Brachtel: CLUAk I<APIJJ AND JL'� Your letter of February 17 to us about parking on only one side of Diana Street brings a negative response from us. Our answer is: No, we do not wish to have parking prohibited on one side of our street. It would create a hazardous situation in that, since the street is not cut through between the 1000 and 1100 blocks, we would have a two -block lineup of cars. The street is narrow and on a hill, and it would make it extremely dangerous, not only for drivers, but for those of us who ride the bus and must walk in the street. The sidewalk is not extended into the 1000 block on our side of the street. lie believe you should look a little harder into this matter before sticking up unattractive "No Parking" signs in our front yards. You will discover that parking is the end result, not the cause of the problem. The problem is in the 1000 block of Diana Street. Housing on this part of the street is being misued, according to City Ordinance, Chapter 8:10.7, R1A and RIB Zone Use Regulations. This section limits single-family dwellings to not more than two persons who are not members of the family. This is not the case in some units of that block. Therefore, it is our contention that disallowing parking on one side of the street will only force these people to park in our neighborhood. After 22 years of making payments on the property and living here, we would not like to suddenly have all the parking taken over by tenants from the next block. If the city refuses to enforce its code on housing, then at least keep the problem in the next block and not make it ours. There is also a business being run from a home in the 1000 block. Last summer we had a problem with people from the 1000 block, and the City was very insensitive to our feelings. On several occasions we had to look at and smell the odor of an eight -horse trailer attached to a truck in front of our home. The smell was not very pleasant, and the vehicle was very dangerous to maneuver around for us, visitors, and others using the street. tisT 141CRorrtia11) By JORM MICR6LAB rrnnP aria', . r MnPlrs Miuo(Ui ILMLU by JORM I.IICKULAd CLUAiI kAPiJi A;10 L)L, We called the Police Department and were told that there was nothing for- bidding parking of this kind of vehicle. They would chalk it, but it would have the same time limit for street parking as cars. It seems to me this type of vehicle should not beap rked on a residential street. And, this isn't the first time that the City has been insensitive to us. In fact, the City on at least two occasions in the past has failed to enforce ordinances already on the books. For instance, we worked for 13 years to have the screening ordinance enforced. New business has been growing behind our home in an area that was nothing more than a cornfield when we first built this house. What followed were some very unsightly lots. On the books, however, was an ordinance clearly calling for screening us from the sight. But the City didn't enforce this, then decreed that it was unenforceable, and made a new one that wasn't enforced. Why? And, Mr. Brachtel, there is a noise ordinance in this city which still is often neglected. Too often we are disturbed from our sleep by hollering youths who frequent the taverns that have sprung up in this area, the sound of squeeling tires, and the roar of motorcycles at 2 A.M. There also are times when semi -truck's pull into the business area in the wee hours to unload their cargo. Have you ever tried to sleep in the summer time over the sound of a semi -truck's engine and the sound of heavy cartons hitting the loading dock? We were forced to install air conditioning to shut out some of the noise. _ Our question, in closing, is why make these ordinances at all if the City doesn't care to enforce them? It would seem to us that we have lost the battle in the area behind our home. Please help us make life a little easier on the front side. Enforce your housing ordinance and do not create new problems for us by removing parking from one side of our street. Thank you. Sincerely, Paul J. & Winifred Holland 1105 Diana Street Iowa City, Iowa 52240 cc: Iowa City Council 1 Id ICNOfILFICa BY JORM MICRbLAB rf MP V,trly' of°, 14n PICS NiuiUi ILNLU by JORM MICRULAb • CLDAk RAVIUS HIIJ UL�"..�_ , CITY OF IOWA CITY CIN IC CENTER 410 E \MNSHINGTON ST IOWA CI1�; IOh/A 52240 (31C) 3.541 180D February 17, 1978 Dear Resident: Recently the City has received a request to remove parking from one side of Diana Street between Kirkwood Avenue and Keokuk Court. This letter and the enclosed postcard are an attempt to learn of your opinion. If you wish to have parking prohibited on one side of Diana Street, please answer yes to question number one. Regardless of your answer to question number one, please answer question number two indicating which side you would prefer to have "no parking". It would be appreciated if these cards could be mailed to the City by March 8, 1978. A small portion of the card has been reserved for your comments. Should you have additional comments or questions regarding this matter please do not hesitate to contact me at 354-1800 ext. 271. Your cooperation will be greatly appreciated. Respectfully, James Drachtel Traffic Engineer- JD/,Jp ~; ^ _IdICRW W -TO BY JORM MICR6LA6 rNIAP PUT` . 'F" MOPP'l 1-4g7 m iL,,fui iLMLD BY JORM MICROLAB • CLDAR RAPluS AND uL.. CITY OF IOWA CITY CIVIC CENTER 410 E. WASHINGTON Sl. IOWA CITv IOWA 52240 (319) 354.180D May 3, 1978 Mr. and Mrs. Paul J. Holland 1105 Diana Street Iowa City, Iowa 52240 Dear Mr. and Mrs. Holland; Sometime ago you wrote a letter to Mr. Jim Brachtel with copies to the City Council concerning problems you are encountering in your neighborhood. Since that time I believe you received a letter from the Inspection Services indicating they had investigated some of the matters which you raised. There are ordinances governing the other problems which you presented in your letter, such as the parking of commercial vehicles on the street and noise from defective automobiles. If you continue to have problems of this nature, please call me or the Police Department and we will be glad to investigate. Sincere yours, Neal G. Berlin City Manager is .T I41CRBflu4[D By I JORM MICR#LA6 rtDAD 0APID9 nf5 MINIS /-/ F7 !L.i'iLu by JURM MICROLAb LLUM kAf'iuo iiia . city of Iowa cry ME61 ORANUUM DATE: March 10, 1978 TO: City Council FROM: City Manager A*t - RE: Cable Television Enclosed are several items of background information on cable television which may be of interest to the City Council. 1. Discussion outline from Cable Television Information Center 2. Recent Developments in Cable Television Regulation from Cable Television Information Center 3. Wall Street Journal article of February 27, 1978 4. Final report of CATV Committee of June 26, 1975 5. Comments relating to University 6. Utilization of a local government access channel in Iowa City 7. Broadband Telecommunications Franchise Enabling Ordinance, City of Madison, Wisconsin B. Suggested Provisions for Ordinance for Private Franchise of CATV (Iowa City Cable TV Committee) A comparison of the Cox proposal (previously received by the City Council) and the Madison ordinance is very interesting. There are several areas in the Cox proposal which deserve particular attention. For example: Under System Summary the statement is, "Free monthly service will be provided to all (underline added by writer of this memo) schools, qualified non-profit orga miations and public buildings." However, Page 6 seems to limit free service "....to any municipal buildings owned and operated by the City and to any public or parochial elementary or secondary school." Again, under the System Summary the statement is, "The entire city-wide communi- cations system will be completed within 24 months of receipt of necessary clear- ances." In addition, Pertinent Features of the Proposed Iowa City Cable Communications Regulatory Ordinance states, "Cable television system serving entire city will be completed within two years of receiving federal approvals." The actual ordinance which Cox proposes, however, states, "The Company shall .....reasonably make cable services available to all residents of the City.... within three (3) years after receiving above federal approvals." Certainly these two examples seem to indicate a need for comprehensive review of detailed proposals from all interested companies. cc: John Hayek Harold Horn, Cable Television Information Center so3 _ T MIC.Rnl ILMID By JORM MICRI�LAB MiLIWI iLilul BY JORM MICROLAB CLOAK RANIu:, Ail11 .)L� >i�, IL December 1977 Recent Developments in Cable Television Regulation FRANCHISING The Federal Communications Commission recently deleted its local franchising requirements. The deleted provisions had required public hearings before awarding a franchise, a maximum franchise term of 15 schedule, and a local complaint procedure. years, a specific construction The commission has retained the franchise standards as non -mandatory guidelines. Report and Order in Docket 21002, FCC 77-530, mimeo no. 70786 (Released Sept. 30, 1977). Under the commission's new rules, cable operators must still submit franchises with their CAC applications as evidence of local authority to .operate. Under the previous rules, cable systems operating pursuant to franchises which did not comply with the FCC's franchise standards were required to submit consistent franchises to the commission by March 31, 1977. Now, however, there are no franchise standards with which to comply (except fee limitations, discussed below). Therefore, there is now no requirement to amend and submit franchises to the commission before their natural expiration dates; systems operating under existing franchises must submit renewed franchises when the existing ones expire. Cable operators with systems cur- rently operating who have never had to file their franchises with the FCC now must file franchises by March 31, 1978. Operators who have been granted per- petual franchises appear to be home free unless the franchising authority takes extraordinary action to revoke the franchise or renegotiate its terms. Cable Television Information Cantor, The Urban Institute, 2100 M Street, N.W., Washington, D. C. 20037 2021872.8808 5 ' MICIt01'IL141D BY 1 JORM MICR¢LAB CrOV PAVIP' • nr� ,.Inl4f5 1,11�,(UriL4L0 by JORM MICRULAb -2- FRANCHISE FEES • LLOAr� kAPiiU ANU OLS The 3-5°% franchise fee limit reexamined by the FCC in its franchising inquiry has been retained, although the fee may now be based upon gross revenues, which can include income from pay cable, advertising, and leased access. Several cable companies and the National Cable Television Associa- tion have asked the FCC to reconsider this part of the franchising decision. For those franchises granted prior to March 31, 1972, franchise fees in excess of the 3-5% limitation are grandfathered for 15 years from the origin- al grant or upon expiration of the franchise, whichever occurs first. Thus, if a 20 year franchise calling for a 7% fee was awarded in 1970, the city may continue to collect the 7% fee until 1985. There is some evidence suggesting that the commission will henceforth be more lenient in permitting fees in excess of 3% to fund access programs. Of primary concern to the commission is that there be sufficient safeguards against government censorship, a problem which the commission feels is in- herent in government funding of public access facilities. As long as ade- quate safeguards against government censorship are present (e.g., establish- ing an independent non-government committee to oversee the access program as was done in Madison, Wisconsin), well reasoned access programs funded through franchise fee revenues are likely to be permitted. CHANNEL CAPACITY AND ACCESS The FCC's channel capacity and access requirements were substantially amended last year. Report and Order in Docket 20508, 59 F.C.C. 2d 294, reconsideration denied, 62 F.C.C. 2d 399 (1976). The requirements are now based upon the number of subscribers which the system serves rather than the system's location within a major television market. All systems which serve 3500 subscribers must comply with the FCC's channel capacity and access requirements. With respect to systems serving fewer than 3500 subscribers, local authorities may mandate capacity and access obligations ' MICR01lWIN BY i JORM MICR+LA9 prOAp PUT)' • 75 4101445 M:t,,Wi iLALu by JORM MILROLAB -3- A LLUAK RAPIu3 AIIU as long as they do not exceed the federal standards. The federal rules require new systems to provide twenty channel capacity and four designated access channels. Existing systems must rebuild to meet these requirements no later than 1986. In the meantime, if systems do not have sufficient channel capacity to provide four designated access channels, they may fulfill their access obligations by providing one channel for com- posite access use. Assuming a system has the capacity, additional access channels must be provided when sufficient demand exists. The commission's channel expansion formula provides that a new access channel must be made available whenever the existing access channel(s) are in use 80 percent of the weekdays for 80 percent of the time during any consecutive three hour period for six con- secutive weeks. However, the rule further explains that under no circum- stances will use of the channel expansion formula require a system operator to install set converters. The FCC also contends that local governments may not require that converters be installed. Local governments which desire channel capacity and access facilities in excess of the FCC's requirements must petition the FCC and make a special showing as to the need for these additional requirements. The petition should indicate the system's proposed capability and should ex- plain why this capability is necessary to meet the demonstrated need within the community. Second, estimations must be made of the expense of such additional requirements plus explanations of how these expenses will con- tribute to the quality of the system. Finally, the franchising authority must demonstrate that these additional expenses will not impair the financial viability of the cable system. It has become apparent from subsequent commission action that the burden on the franchising authority to justify additional services is substantial. See Comcast Cable of Paducah, FCC 76-526, 59 F.C.C. 2d 1075, reconsideration denied, FCC 76-965, 61 F.C.C. 2d 487 (1976). A potentially better, but as yet untested, approach to gaining approval of specific access requirements is to submit to the FCC a signed statement by the franchisee that said franchisee has agreed tc the access provisions and has voluntarily offered to provide such services. The commission has stated that no FCC rule or regulation would prohibit a cable operator from voluntarily MICRorn.Mrn By JORM MICR(PLAS rrnM oAvin- . 11F1 iinj,jrS r`;it,tW; 1LALU 8Y JORM MICRULAb -4- s providing services in excess of commission requirements as long as suck, commitments are made in a "genuinely voluntary atmosphere." Reconsideration in Docket 20508 at para. 8. PROGRA1,114ING CONTENT CONTROL Last summer the commission clarified its access rules to specify that cable operators have an affirmative duty to keep certain types of programming, e.g., lottery information, and obscenity, off the access channels. In the case of obscene programming, the rules contemplated pre-screening of access programming by the system operator to determine whether the programming was obscene according to community standards. The United States Court of Appeals for the D.C. Circuit has recently stayed the application of the rule as it relates to obscenity and has remanded the case to the FCC. The court found the rule to be in conflict with the First Amendment. POLE ATTACHMENTS The commission has concluded that it presently has no jurisdiction over pole attachment agreements. Roth the Senate and the House of Representatives are considering pole attachments only when state or local regulators fail to assert jurisdiction. This position is supported by both NCTA and the National Association of Regulatory Utilities Commissioners. The Senate bill also gives the FCC forfeiture authority over cable systems. COMUNICATIONS ACT REWRITE The House Communications Subcommittee is currently working on the first major overhaul of the Communications Act since it was written in 1934. Sub- committee Chairman, Lionel Van Deerlin hopes to get the bill before the House of Representatives by the end of next year. The Subcommittee is wrestling with the problem of how to deal with cable television in the rewrite. An option paper on cable, written by the -i MICROFILM 6Y JORM MICR¢LA9 CfPAP DAP!m. . '1(S Mn!`1CS MiiLkUi ILMLU BY JURM 141CRULAB - 5 - LLUAt< kAPluS ANU uL /...�.,, Subcommittee staff, asks whether cable is a distribution service more akin to 11 common carrier or a program service, or some combination of both. One option for cable television calls for a period of experimentation which would allow cable to operate free from federal regulation. Other questions Presented are whether cable companies should be limited to distribution functions and foreclosed from programming, and what roles the various levels of government should play in regulating cable television. There is no word yet on which way the Subcommittee is leaning on these issues. CABLE DEFINITION DECISION -- first Report and Order in Docket 20561, FCC 77-205, 63 F.C.C. 2d 956 (1977). Cable systems are now defined on a headend, technical entity basis, as Opposed to the previous definition based upon communities served. This means that a system serving four communities from the sameheadend needs to provide only one set of access facilities instead of four. Signal car- riage, however, is still based upon the location of each community served. A new classification of systems was also created in this decision. Systems serving fewer than 500 subscribers are now exempt from distant signal limitations, certification requirements, and public record require- ments. The commission is currently considering raising the cutoff for reduced regulation to 1000 subscribers. SIGNAL CARRIAGE ISSUES 1. Cable systems may now carry distant specialty stations without restriction. A specialty station is defined as a commercial broad- cast station that carries foreign language, religious, and/or automated programming during one-third of its broadcast hours and one-third of its weekly prime -time hours. 2. Cable systems may now carry any UHF television stations which place predicted Grade B contours over the system community. MICR01l LMID BY ' JORM MICR6LA9 011P nOPi °. ^f5 Po�I4L5 MiLfWl ii -MLU BY JOkM MICkOLAH -6- LtuAH Mrluj Hllil uL Formerly, there were situations where a cable operator was not permitted to carry a particular UHF station, even though it placed a predicted Grade B contour over the cable community. This recent change allows the carriage of Grade B UHF stations in addition to the number of distant stations otherwise permitted. 3. Formerly, the commission required receive -only satellite earth stations to be 10 meters in diameter and, therefore, such "dishes" were quite expensive (in the range of $90,000). Now the commission permits smaller, 4.5 meter dishes; this has brought the cost down to the point where many cable operators can justify installing them in order to receive the Home Box Office pay service and one or more distant television stations. This has led to a surge in pay cable distribution by 1180, and has also resulted in nationwide carriage of several broadcast stations, most notably WTCG, channel 17, Atlanta. Of course, the deletion of the leapfrogging rules also contributed to the rise in satellite distribution of broadcast signals. 4. The United States Court of Appeals for the District of Columbia Circuit recently struck down the FCC's rules dealing with pay cable programming restrictions. home Box Office v. F.C.C., No. 75-1280, _ F. 2d _ (1977). The rules generally limited the availability of certain types of programming, most notably feature-length movies and sporting events, for pay cable distribution. The Court struck down the rules after finding that the commission had no justification for imposing them. The case was appealed by the FCC, but the Supreme Court subsequently decided not to review the decision thus leaving the Court of Appeals' opinion intact. S. The new copyright law, for the first time, imposes copyright liability on the cable television industry. Copyright fees are based upon a complex formula which takes into account the system's annual sub- scriber revenues and the amount of non -network distant programming that system imports. Although the new copyright bill establishes MICBOI ILI.110 BY JORM MICR#LAB fcnpu 1401715 1.11u<UI IL LU By JORM MICROLAB LLUAK kAV'IJ:, ANL) LJLI .'!�-.,L. ...°.� -7- the principle of copyright liability for cable system operators, the rates imposed should prove to be minimal. 6. An inquiry has been initiated concerning the economic relationships between television broadcast stations and cable television (Docket 21284). According to the FCC, the purpose of the inquiry is to gather data that can be used as a basis for the FCC's continuing reassessment of its cable policies and rules. The four major subject areas of the inquiry include demand and cost factors in cable growth, the extent of local audience fragmentation due to cable television, the relationship between a broadcast station's audience and its revenues, and the extent to which reductions in broadcast revenues might adversely impact upon a local broadcast station's ability to serve the public. 7. The FCC recently initiated a rulemaking (Docket 21472) proceeding looking into the problem of "saturated" cable systems. "Saturation" occurs when a system with limited channel capacity is located in an area with more "must carry" broadcast signals than the system can accommodate. The commission is considering several solutions to this problem. One proposed solution calls for ranking must carry signals; another proposal would require system channel expansion unless the operator could demonstrate financial inability to rebuild. 5' J ROI ILMED BY JORM MICR¢LAB MAP PAPPI,, . ❑fc. MPIf5 I 'I, I ,L•h,; bis JURm MIU00-Au FCC Dealt Loss On Cable TV Access Channels Appeals Co1ut li finds Agency Exceeded Its Jurisdiction 1n '76 Mandatory Rules Ra a WALL arRRRr JOURNAL eta/1 RePOrkr ST. LOUIS—The Federal Communlea- tions Commission can't require moble televi- sion operators to set aside channels for ac- cess by the public, the federal court M W peals here ruled. The three-judge panel Bald that the FCC exceeded Its jurisdiction with its mandatory access rules In 1978. ' ' In Washington, a spokesman for the FCC declines to comment on the opinion. He said the commission hadn't yet had a chance to review It. Among other things, the FCC regulations called for cable Tv operators with 8,500 or more subscribers to designate four channels for public access, educational access, local government access and leased access. At least one public access channel was to be supplied without charge. Educational and local government access channels would be without charge for the first five years. FCC Rules The FCC rules called for access provided on a "first-come nondiscriminatory basis," but prohibited "the transmission of lottery information, obscene or Indecent matter, and commercial and polldeat advertising." Otherwise, cable operators didn't have any control over program content. Cable operators were to supply MWP ment and faculties for local production add were allowed "a reasonable charge" for production costs for live studio programs longer than five minutes. Midwest Video Corp. challenged the regu- lations, charging that they were beyond the FCC's jurisdiction, violated Ne freeVWb clause of the First Amendment and the due process clause of the Fifth Amendment. Another plaintiff was the American Civil Liberties Union, which dldn't chally the FOGS jurisdiction but objected that the reg• ulations had been softened. In an 81 -page optalm. Judge Howard T. markey, chief judge of the U.S. Cart of Customs and Patent Appeals and who was designated to hear the case at the Sl. Louis appeals court, said that the commission's charter, the Communications Act of 19M, doesn't grant any specific authority, over cable systems. LLOiiii ifr{t',,), rN;W „L� THE WALL STRhci JOURNAL, Mnnday. Feb. 27, 1978 Not "ReLsombly Ancillary" Moreover, the appeals court ruled that the regulations aren't "reasonably anti - IM" to the FCC's responsibilities for regu- lation of broadcast television. Objectives sited by the FCC In Its brief were "Increasing the number of outlets for community selMxprssion and augmasfiq the public's choice of programs and lyes d services." Judge Markey observed that "doubtless 'increasing outlets' and 'augmenting choices' are laudable, prafsevstls ,r W ds, slrable actions." Nonetheless, be nt'NsMI "the question before us Isn't the sincerity of the commission or the glorious nature of Its objectives. The sole gMdOn Is whether compelling cable systems to build and dedi- cate facilities to essentially free public use was within the commisslon's jurisdiction." Rather than protecting the right to speak, the FCC "has embarked, with positive com- mands, on a crusade to create a public right to use cable faculties." the court said. "We deal here with the Federal Communications Commission, not the federal Mt Amend• ment commission." and can find nothing giving the FCC "an affirmative duty or power to advance First Amendment goals by Its own tour de force, through getting everyone on cable television or otherwise." Judge Markey said that since the FCC exceeded Its Jurisdiction, the court didn't have to rest Its decision on constitutional grounds. Editorial Process Even so, he argued that the "govern- mental Interference with the editorial pro- cess raises a serious First Amendment Is- sue." Judge Markey said that the access regulations "strip from cable operators, on far of their channels, all rights of material selection, editorial Judgment and discretion enjoyed by other private communications media, and even by the'semlpublic' broad- cast media." Judge Markey also observed that Kid. west Video "argues persuasively" that the "access rules cowdrute a takly of private property without jug cornpetragllah mod deny cable owners an oppormmlty to earn a fair rate of return," thus violating the FIM Amendment's due process clause. A one -paragraph concurring opinion was written by former Judge William H. Webs- ter, recently sworn In as director of the Red• eral Bureau of Investigation. Judge Webster agreed that the access rules "are outside the statutory jurisdiction conferred on the PCC„ He added that although he generally agreed with Judge Markey's "extensive and well -reasoned analysis of the constitutional questions." he refrained from joining It be. cause disposing of the case on the jurledlc- tional bass made It unnecessary to consider the ronstltutlorW issues. ;IILlt01 11.1,11.1) 8Y Jo RM MICR6LA13 htlu<Ut ILALu BY JURM 141CkOLAb UtUAk W'Iu� AND uL CABLE TELEVISION INFORMATION CENTER March 13, 1978 DISCUSSION OUTLINE PUBLIC POLICY ISSUES PERTAINING .TO CABLE TELEVISION FOR THE CITY OF IOWA CITY, IOWA This outline has been prepared as an aid to discussions with the city officials of Iowa City as they determine public policies that are to Center. re- flected in a forthcoming Request for Proposals being prepared Y t In order that applicants for the city's franchise may understand the terms and conditions for providing cable television service, a policy state- nl,!nt and specific application forms should be included in the proposal documents. The statement should reflect all ground rules for making appli- cation, negotiable and non-negotiable features, and criteria for evaluation of proposals. Decisions need to be made on the following subjects: (Items deemed by the city to be so important to be designated as manda- tory or non-negotiable should be identified.) (1) Determine length of franchise term --10-15 years. Discuss importance, need for regulatory flexibility. (2) Singlsideremore thaniple one franchises tooserveethleecity con - entire community? (7) Exclusive vs. nonexclusive franchise. (A decision on this matter also relates to decision on Item No. 2.) (4) Determine what, if any, areas of city are to be initially excluded from service. (May need to establish a criteria for inclusion or exclusion such as including in initial service area all census tracts with average density of or more dwelling units per linear street mile.) (5) Line Extension Policy --If some areas of city are not to be initinll.y served, or future expansion of city to include new subdivisions is contemplated, city may want to consider establishing ground rules. This matter, however, could be left as a bid item for each applicant to state its preferred policy. 5"03 ti I T I41CROF WIED BY i JORM MICR6LA6 r r Mir 11nrl m;u(UriLP1cU BY JURM MICROLAB - 2 - LLUAK RAVIU; ANU (6) Determine under what conditions and specifications that underground plant will be required (trunk, feeder and drop lines). This decision ff prior to should be quantified by city reflectathe economicpimpactlsolicitatn of decision inso that each app its financial projections. (7) Requirement of a minimum level of system design. EXAMPLE: 35 channel (initially activated7) capacity?) Single trunk cable (shadow trunk --op Single feeder cable Subscriber set converter Two-way capability One master headend and as many area hubs as are necessary to effectively serve initial service area Transportation system (system for interconnecting area hubs or other points of origination with master headend (8) Consider encouragement of design flexibility toward immediate, eventual or experimental development of broadband communication uses --central computer, two-way traffic, digital information, monitorinnetwork g systems as fire, burglary, emergency, etc.,-- of shadow trunk. (9) Channel uses --While FCC regulates use of broadcast channels, it is important to review variety of programming being offered across the country on other cable systems. Must Carry Signals (1) Channel 2 (CBS) Cedar Rapids (2) Channel 7 (NBC) Cedar Rapids (3) Channel 9 (ABC) Cedar Rapids (4) Channel 4 (CBS) Davenport (5) Channel 6 (NBC) Davenport (6) Channel 12 (PBS) Iowa City May Carry Signals �.; (7) Anindependent station may be imported from anywhere ious, spanish-speaking, (8) Anyy (religious, number of "specialty" g etc.) stations (9) Local origination, live and taped (10) 24 hour weather (11) 24 hour sports, local news (character generator) (12) Stock market (character generator) (13) Educational access (often more than one channel) (14) Local government access (15) Public access (available to any citizen or group) (16) Pay television channel (17) Leased access (often several channels available for lease) (18) University access .v+ IdICRUFILFICe RY JORM MICR4�LAB frPM oar!n. . qfq 'gVjr' I•i:u Ui ILMLO 8Y JURM MICRULAb -3- LLUAt kAPIOS ANU IL, :'�1. ,L , .. (19) Shopping guide/want ads (20) programming guide (21) Movie or syndicated program channel, i.e., children's channel (22) Religious programming (10) Define minimum level of local origination facilities: Minimum size studio, color cameras, color videotape machines, color film chains, control room, air conditioning, studio lighting, nature of local programming, mobile van --fully equipped for remote programming. Require data on staffing and budgeting to examine level of commitment. (11) Define access channel programming facilities and assistance required to be supplied by successful applicant. (12) Discuss municipal uses, near term and future. Institutional network concept Local government programming What public buildings to receive free connections? (13) Discuss services to schools and educational institutions. Existing and proposed uses of audio -video services. University programming. (14) Emergency alert capability. (15) Standby power. (16) Technical standards--Discues FCC preemption and importance of adopt- ing performance testing procedures. (17) Local office facilities --Hours of availability, complaint handling procedures. (18) Franchise fee—Federal limitations, 3-5 percent of gross revenues. Also discuss lump sum feature for recovery of consulting costs. (19) Subscriber rates --Discuss approval process, minimum financial infor- mation requirements. (20) D{scuss construction timing and scheduling. (21) Discuss current developments in Pay -TV and use of earth satellites and their impact on cable marketing --also court decisions and FCC preemption. (22) Discuss financial pro forma requirements. How information is utilized in evaluation of proposals, determining financial viability, realism of subscriber penetration levels and forecasts, and future use in judging actual performance against proposal. JORM MICR4PLAB FFIAQ ;APPI, . "r, '1019(5 i(UriLMiU by JORM 141CROLAB - 4 - (23) Discuss ordinance provisions. �LUAK RAeij� ANU UL a_ Cable Communications Commission Need for penalty provisions use of security fund in addition to or in lieu of performance bond. Procedure for rate review and regulation (discuss marketplace and staged regulatory process). Need for specificnp nual financial and operating information. Performance evaluation procedures --every 3-5 years. Complaint procedures Employment requirements Franchise renewal procedures Transfer of ownership Continuity of service (24) Discuss possible special conditions. (25) Discuss proposal selection procedures. Filing fee --refundable? Require use of official forms (no exceptions). Include draft of proposed franchise ordinance in bid documents. (Discuss importance of document.) Require all applicants to use uniform basic demographic data pro- vided by city: population --current and trends, dwelling units, street mileage, etc. Require complete ownership disclosure. Discuss preference items, priorities and other criteria to be usea in selection process. Note: The following are examples we have utilized that may be desired by Iowa City. SystemDesign--Preference will be given an installation plan that will provide flexibility needed to adjust to new devel- opments, establish quality maintenance practices, and provide marketable services that would be available to subscribers and the community immediately and in the future. Rate Schedule --Preference may be given to applicants with the most reasonable installation and subscriber rate schedule that is at the same time justified in the financial pro forma state- ments by use of realistic levels of penetration. Such prefer- ence will only be given if guarantee is made that changes in rates will not be requested for a period of three years from the date of providing initial service. Financial Viability --Preference will be given to applicants presenting evidence of financial resources that assure company's ability to complete entire initial service area within five years of receiving required governmental franchise approvals. MICRO[ I LI410 OY ' JORM MICROLAB CrpAD VnT` -'. . 'V Y101'I[S MIu<W IL4LU By JOKM MICROLAB - 5 - CLOAK kArlUb AND oL. 'i�•;.�-. Demonstrated Experience in Operating a CATV System --Preference will be given to applicants that can give evidence of providing sufficient, satisfactory, and dependable services to other com- munities and a management background that gives evidence of excellent construction practices, ability to meet deadlines, good planning and marketing practices. Services and Technical Standards—Applicants proposing services and technical standards exceeding the minimum required in the attached ordinance will be given added weight in the evaluation if those services and standards are guaranteed, and are within the financial capability of the system as shown by pro forma statement, and are also within the guidelines of acceptability as defined by FCC's description of extra service packages (Clari- fication Paras. 108-118). Discuss procedural questions regarding referendum hearings, applicant presentations, public involvement, supplemental reports, cross exam- ination. i 14ICROI IUIED BY JORM MICR4�LAB (MAP vAVIn, . lr. MOirir pliu<Ur ILMLO BY JORM MICROLAB • LLUA,t RAP IU_� AND LiL, (IV .:1L �• /�/// � � •� 'r� V GMC C410EWAS1pN0 I0N Si IOWA CIN IOWA5]]IU�#1 3 19 3NI 1p '1t .A101 June 26, 1975 II/,u uur,lul o�n wtxnr: r.'I I. PmUt r(unr p.vN51w c.rol e.nan � nn![wens Members of the CATV Committee: Please find enclosed the following information: 1. Approved minutes of the June 2, 1975, meeting. 2. Final Report to the City Council. 3. Proposed Broadband Communication Commission Ordinance. 4. Appendices - suggestions submitted by Committee members. If you have suggestions or comments on the enclosed material, please contact Bob or me before July 9, 1975. If there are no problems with the docents, they will be sent to the Council by mid-July. Sincerely, William J. Neppl Administrative Assistant Office of the City Manager WJN#mbm ;41CR01 1010 OY 1 JORM MIC RWL A B frPhn pnr m . 'K �. !4I1I!7ft M:u,w 01 iL>h.0 BY JOkM MIOkOLAb Iowa City CATV Committee Meeting June 2, 1975 3:30 P.M. Davis Building Conference Room Members Present: Welsh Cordier Eakin Ehninger Hubbard Russell Members Absent: Prediger Staff Present: Neppl Hayek The Iowa City CATV Committee held a special meeting to discuss future courses of action for Cable TV in Iowa City. Chairperson Bob Welsh outlined three direc- tions the Committee could possibly take: (1). Submit a final report to the City Council. (2). Further study Cable TV in Iowa City. (3). Take no action. Chairperson Welsh outlined the City Attorney's memorandum regarding legal questions raised by the CATV Committee. The memo received from the City Attorney's office stated that if a report in given, a referendum must be held. It was indicated that the petitioners could withdraw their petitions by writing a letter to the Council indicating such. It was also stated that the petitions are still valid. Chairperson Welsh has contacted the two valid petitioners several times in the past months to find out their interest in pursuing Cable TV in Iowa City. Neither petitioner has indicated an interest in withdrawing their petitions, although neither seems to be interested in a referendum at this time. Chairperson Welsh reported he has indicated to the petitioners his feeling that theta is no need to further develop a franchising ordinance now if a franchise is not going to be granted at this time. A proposed report to the City Council was handed out for discussion. Both the proposed private and public franchise ordinances drafted by the Committee included five member bodies, however, each had different responsibilities. Sandra Eskin suggested putting together an enabling ordinance that would set forth standards and conditions regardless if there was to be a public or private franchise. If a franchise showed interest in constructing a broad -band communications system in Iowa City, a review of the application would be possible using established standards. Ownership would not need to be identified as either public or private. The possi- bility of a five member broad -band co®unications board to be established to work on an enabling ordinance was discussed. Also, possible task areae were identified which included the followings (1). Assist the City Council in analyzing their choice of potential franchises. (2). Do research. (3). Participate as necessary in carrying out its functions. !-01001 1 LMLO 13Y JORM MICR6LA9 h;iu<UriLAt.0 BY JORM 141CROLAB towa City CATV Coamittee Meeting June 2, 1.975 3:30 P.M. Ilivis Building Conference Room Wage 7. LLUAr RAeiu�) ANO u�� �•�= "` 'Ilse relationship of t.hc ho;ud to the Council nod the (letineation of respun- ::ihilities of the hoard to the Council was further discussed. The CATV Culmiittee then decided that the fnllowing reconanendations be i.ncLuded .in a report to the City Council: (I). That the City CuunciL appoint a broadband communications board of five persons to continue to advise the Council and the citizenry on CMV. It was a[so recommended that two or three of the present Committee members be appointed to the board. Such a hoard could continue to function under either public or private ownership. (2). That the City Council take whatever legal steps necessary to deal with the petitioners. If the Council decides to have a referendum this fall, it is recommended that it include not only the two petitioners, but all interested parties. (3). It is further recommended that should the City Council decide to hold n refer- endum, it mike clear to the petitioners and all others listed in the referendum, that if the citizens approved granting a franchise at this point in history, the City would then proceed to establish a procedure for submitting proposals in light of the need of the City and the state of the art, including PCC rc;,u lati.ons, and that a franchise would be granted only if the Council was convinced that such would be in the hest interest of the entire commmity. It was decided that the Committee would meet in two weeks to discuss t.h'-' respon- sibi.lities and duties of the broad -band conanunications board. The next meeting will be June 16, 1975, at 3:30 P.M. in the Mavis Building Conference Room. It(Issel.l moved, F.hninger seconded the above motions. They were all unanimous. i I4ICROIILMED By JORM MIC R6L A 9 UnAn PAIT" . 'YS VnIVf` MiLifUi iLbiLu by JOR11 MiCULAb LEUNH MPio. Alib 1JL REPORT TO THE CITY COUNCIL The Iowa City CATV Committee in accordance with the responsibilities assigned to it, submits the following report to the City Council. We have chosen at this time not to submit a lengthy retort, but rather to rall the Council's attention to the fact that we have dealt with issues such as: the purpose of Cable, whether or not Iowa City should have Cable, the type of ownership and system design. In addition, we have in draft form the proposals for ordinances for public and private ownership. All of the information has been previously for- warded to the Council. At this point in history, our recommendations are as follows: (1). That the City Council adopt an ordinance establishing a broad -band communica- tions commission. This commission consisting of five persons to continue to advise the Council and the citizenry on CATV. (See attachment regarding respon- sibilities and duties of commission). We recommend that two or three of the individuals serving on the broad -band communications commission be from the present CATV Committee. It is our intent that this Commission should continue to function after a system has been selected, recognizing its functions will vary with the form of ownership. (2). That the City Council take whatever legal steps necessary to deal with the petitioners. If it is decided that a referendum is to be held this fall, we recommend that it include not only the two petitioners, but all interested parties. (3) We further recommend that should the City Council decide to hold a referendum, it make clear to the petitioners and to all others listed on the referendum, that if the citizens approve granting a franchise at this point in history, the City would then proceed to establish a procedure for submitting proposals in light of the needs of the City and the state of the art, including FCC regu- lations, and that a franchise would be granted only if the Council were con- vinced that such would be in the best interest of the entire community. June 26, 1975 Iowa City CATV Committee IdKM IL11LB BY JORM MICR+LAO (INP VV `V Niu;WI'iLi'1Lu BY JUkM MILkULAb (LUAH ;(Arius ANu June 26, 1975 Draft for a Broadband communication commission Chapter Iowa City Broadband Communication Commission Sections: 1 - Establishment 2 - Membership 3 - Terme 4 - Duties 1 - Establishment. There is hereby established a Broadband Communication Commission for the City of Iowa City, Iowa. 2 - Membership. The Broadband Communication Commission shall consist of five members appointed by the City Council. The Chairperson of the Broadband Communication Commission shall be appointed by the City Council for a one year term. If for any reason a position on the Broadband Communication Commission becomes vacant, the City Council shall appoint an individual to fill the unexpired term. No person or employee with ownership interest shall serve on the Commission. The City Manager or his/her representative shall serve as ex -officio member of the Commission. All members of the Commission shall be qualified electors of the City of Iowa City and shall serve as members of the Commission without compensation. 3 - Terms. The term of office of each member or commissioner appointed by the City Council shall be five years, staggered terms; of those members appointed on , one shall be appointed for five years, one shall be appointed for four years, one shall be appointed for three years, one shall be appointed for two years, and one shall be appointed for one year. 4 - Duties. The following duties are outlined for the Broadband Communication Commission prior to the granting of a franchise for the construction and operation of a Broadband Communication System in Iowa City, Iowa: a. To advise the Council on all matters relating to Broadband Communication, CATV, Cable and such other systems as may be developed that would provide a community communication system. RICR01 IL141D BY ' JORM M;CRbLAB rrnn„ „ar�� ��r�'4o�•ir� Niu<lL iLA c by JURM MICkULAG LtUAr, kAV1LJ5 AHO L)L, ''•�.��.. b. To give attention to the legislature procedures, including the develop- ment and continual updating of an enabling ordinance. C. To maintain a knowledge of current development in Broadband Communications. d. To solicit, review, and recommend any and all proposals received for the construction and operation of a Broadband Communication System. 'e. To serve as a watchdog to federal and state legislation to assure protec- tion of the City's interest in telecommunications and to review local action for concurrence with the proposed telecommunications system. f. To coordinate with the area beyond the City of Iowa City and the University of Iowa in the development of a Broadband Communication System. g. To serve as the City's liason on all matters relating to a referendum for a Broadband Communication System. h. To prepare a Broadband Communication franchise ordinance for Iowa City, in conjunction with the operator, specific to the system proposal accepted. J. To submit budget requests as necessary. j. To keep the citizenry of Iowa City informed and to enlist and to encourage. citizen input. k. To annually transmit to the City Council a report of its activities and recommendations for the development and operation of a Broadband Communication System. 1. To perform such other duties as may be assigned by the City Council of Iowa City, Iowa. M1CROI ILMLD BY 1 JORM MICROLAB ff npl: 1`:v !n� X11 c. '10 RI(`• MIL,RW ILMLD BY JORM M1CkOLAB CEDAR ROWS AND ULS 'i��,a •-•^ l Fli Li(Ui ILMLU BY DORM MICROLAB LLUAR kAP1u5 AND L)L� '�•'� • June 3, 1975 WAW: 1{0: CnIdoll;lon for Broadband COMMuni0ationa Brard im:�lnd lal;� ly , ,;;;,,blish/a five somber 11rondJnad Comsmlic•1ti.)IIS Ilyard whLOh will advise LI-, City Council ,.a pr•O+dures far any rof'orenda, sorve, cta};gored torus, bo aatntive of these eugmeats of the oemmunity t• be served by a system, and, In kh9 naso of a pasitive vola in a rofinendu:m , bo charred vrfth d= eeusultiag a.id advising the Caunoil on the nagetimblo end nam -me otiable elements of any frh.m:tise. Sino• this would be a eentinuin3 Hoard, it would ser7e the role of intermediary between 'tho granter and the grantee should a franohiso be granted. Flo Both ~� Id ICROFILMCO BY I JORM MICR6LAB CFOAR PAN"' .'rt5'401'IFC 1.11,<Oi iLNLtj BY JORM 141CROLAB iS1Cr3 ltIlL.%d Name: Iowa City Broadband Communications Board Composition: The Board shall consist of five residents of the city appointed by the Mayor with the approval of the City Council. Each member shall serve a term of five years; provided, however, that appointment to the first Board shall be for 1,2,3,4, and 5 years respec - tively. Any vacancy shall be filled by the City Council for the remainder of the term. The Cl.ty Manager, or his authorized representative shall serve as an ex -officio member of the Board. The Mayor with the approval of the City Council shall name a chairperson. Duties: 1) To advise the council on all matters relating to Broadband Communications, CATV, cable and such other systems as may be developed that would provide a community communications system. 2) To give attention to the legislative procedures, including the development abd continual updating of an enabling ordinance. 3) Togyt•a,3 u-ttention to establishing a procedure for securing and evaluating any and all proposals received for the construction and operation of a broadband communication system and to give attention to matters relating to supervision and enforcement. 4) To keep informed on the development of broadband communications. To receive such publications, attend such conferences and conduct such research as will be helpful 5) To submit an annual report to the City Council 6) To encourage the development of Broadband Communications in the community and to develop interrelationships with the University, the Iowa City School District, neighboring communities and county. 7) To submit budget requests, as needs arise. 8) To keep the citizenry informed and to enlist and encourage citizen lmput. 9) And such other duties as may be assigned by the Council. It Is understood that all matters relating to Broadband Communications shall be referred to this Board and that the Board shall make reports and recommendations to the Council. It is understood that the staff shall work with the Board on all matters relating to Broadband Communications , through the City Manager or his authorized representative. -- 111CRn11u111) By DORM MICR46LA13 rr�AP h.1h�n'. Iti L(:W iLML.0 BY DORM MICROLAb LLUAii kAV i J; AAO L)L , rr L16/1 %_-CA UI J -A - AN ORDINANCE t,I cnr.Ite an .Iowa City C.Iblc COMMUnication Commi.c:sion , I. IuNA CITY CALLS COMMUNICATIOM COMMISSION ESTALLISHED. A. Iowa City Cable Cnrtununication Commission Listablished. There: is established an Iowa City Cable Communication Commission, composed of five (5) citizens, appointed by the City Council, for a term of five (5) years; ex- cept the first appointees shall be appointed for 1, 2, 3, 4, and 5-year'tr_rms and, thereafter, each for a term of five (5) years. 1. No employee or person with ownership interest in a cable television franchise shall be eligible for membership on the Commission. 2. It is recommended that all members of the Commis- sion also be subscribers to the Cable Communication System. 3. The City Manaqer, or his authorized representative, shall serve as an ex officio member of the Commis- sion. 4.. At least two (2) weeks before any citizens are appointed to the Iowa City Cable Communication com- mission, written applications from interested r_iri.- zens who are willinq and able to serve on said Com- mission shall be accepted. The City Council shall. consider the applications submitted by citizens as well as other citizens as -may come to the attention of the City Council as being qualified and every effort shall be made to make said Commission as broadly representative of the citizens of Iowa City as possible. D. Commission Functions. 1. Prior to the granting of a franchise for the con- struction and..operation of a cable communication system in T.owa City. a. Prepare a "Cable Communication Franchise Enabling Ordinance" for Iowa City. b. Maintain a knowledge of current developments in cable communications. c. Solicit, review and provide recommendations to the City Council for the selection of an operator for the cable communication system, 141 UimrI LMLn or JORM MICR6LA6 c�an�; • "� . Mn nn °. M.ucUI iLAi.0 6Y JORM I.11BOLA6 -2- LtJAt kAj1j, iUlU JL� -.. 2. Following the granting of the franchise to con- struct and operate a cable communication system in Iowa City. a. Advise the Council on matters which might constitute grounds for revocation of the permit in accordance with the cable communi- cation ordinance. b. Resolve disagreements among grantee and public and private users of the System; such decisions of the Commission shall be appealable to the City Council. c. Advise the Council on the regulation of rates in accordance with the cable communication ordinance. d. Determine general policy relating to the service provided subscribers and the operation and use of access channels, with a view to maximizing the diversity of programs and services to subscribers. e. Encourage use of access channels among the widest rage of institutions, groups and indi- viduals within the City. f. Submit an annual report to the City Council, including, but not limited to, the total number of hours of utilization of access channels, a review of any plans submitted during the year by the franchisee for development of new servi- ces, and hourly subtotals for various programming categories. The annual report shall include the following programming categories. (1) Local educational uses, including libraries, public and private schools, and the Uni- versity of Iowa. (2) Public access for local programming under public control. (3) Local government access (including fire, police, City Council meetings, public hearings, burglar alarms, and public announcements). (4) Channel time use for lease for Pay TV. (5) Channel time use for lease for business uses, including telemetry of information. (6) Information retrieval and professional communication. MICRO[ WILD BY ' JORM MICR46LA13 i t'Au c.V I -r . "u', 10!T' �1:�dUr;L)Ilu by JURM 141LRULAb -3- LLDAId RAS;✓`, alJ ✓L_ g. Cooperate with other systems, and supervise? I.n tr9rconnP.0 tion of systems. h. Audit :111 f.rarnchirree records r!qui.red by the: Cablc communication ordinance, and, in the Commission's discretion, rucquire the preparation and fLlLnq of information additional to that required therein. i. Conduct evaluations of the system at .Least every three (.3) years, with the grantee, and pursuant thereto, make recommendations to the Council for amendments to the cable communic•:1- t.ion ordiance or any franchise agreements. j. To act on behalf or as the designee of the City Council in all renegotiations and pursuant thereto, make recommendations to the Council for amendments to the cable communication ordi- nance or any franchise agreements. k. Employ, as necessary, the servicesof a technical consultant, to assist in the analysis of any matter relative to the cable communications system. 1. Act on behalf or as designee of City Council for the purpose of proposing requlationj and arbitration procedures as deemed necessary by City Council, and/or to provide any other service to City Council that may be reasonably required by City Council under the authority of the cable communications ordinance. m. Develop and publish within six (G) months of the date of award of the initial franchise, and amend as necessary from time to time, a cable communication system rules and procedures manual to define the Commission's functions and responsi- bilities, and to adopt rules and procedures .in relation thereto. Upon publication of said manual, and upon any amendments thereto, the Commission shall submit the same to City Council for approval. n. Submit a budget request to the City to cover expenses incurred in respect of performance of functions provided by the cable communications ordinance. This request may include funds to be used for the development of use of access channels, including production qrants to users and the purchase and maintenace of equipment not required to be provided by the franchisee, and funds to be used as per diem expenses and .such salaries for Commission members as may be pre- scribed from time to time by ordinance. o. Such other duties as the City Council may assign to the Cable Communications Commission. ,7 ,aintoltuar.n BY JORM MICR4,LAB rr Pnp vn, �r�,err '.701'1!' Ni�uKlt !L:1i.0 BY JURI1 t-01CNULAB LLUAIt iiAe1J,j A;IJ ,L June 10, 1975 Sandra C. Eakin Suggestions for formation of an Iowa City Telecommunications Commission by the City of Iowa City. The Mayor's Cable Committee requests that the City Council form a permanent Iowa City Cable Telecommunications Commission. Proposed Functions. The Commission should be empowered to begin immediately to serve, the City Council members by developing a Telecommunications Enab ling Ordinance, and by researching and advising the City Council on telecommunication matters The Commission should serve to "watch -dog" Federal and State legislation to assure pro- tection of the City's interest in telecommunication and to review local actions for concurrence with the proposed telecommunications system. (For example - review and recommend to the proposed Landlord -Tenant ordinance inclusion of a provision of right -of -access of cable to tenants requesting such service.) The Commission should maintain a collection of current reports and journals, etc. on cable uses, studies and information for the City to draw on In order to be knowledgeable of current telecommunication developments. The Commission should participate in national and local meetings and workshops on telecommunica- tions applications and in turn serve to educate the citizens on telecommuni- cation potentials. After the creation of a cable telecommunications system the Commission should serve as the local regulatory body Proposed Membership. The City Council shall appoint the five member Commission, each member being a resident of Iowa City. Each member shall serve a term of five years; provided however, that appointments to the first Commission shall be for 1, 2 3, 4 and 5 years respectively Any vacancy In the office shall be filled by the City Council for the remainder of the unexpired term. No person with ownership interest i•ncauuuaro or JORM MICR6LA6 ��pnc �.,,,,r) ,r, •in! -if bii�KU1 ILALu by JURI4 141CkOLAb GLUM( {(AVIJJ AHU 0L 2. in a cable television franchise (or employee thereof) granted pursuant of the actions of this Commission shall be eligible for membership on the Commission. The City Manager, or his authorized representative shall serve as an ex -officio member of the Commission Specific Tasks. 1.The first order of business should be to draw -up for approval bythe City Council a Cable Telecommunications Enabling Ordinance from the Mayor's Cable Committee's work on cable ordinances. This ordinance would set out basic requirements for a cable system, empower a regulatory body and allow for a city telecom- munications officer. This differs from the presently proposed public and private ownership models In that it distinguishes those provisions that directly relate to specific franchising negotiations and those that safeguard the right of the city to pursue an adequate cable system in terms of governmental framework and basic system design such as assurance of access channels, protection of privacy, city wide coverage. etc. This enabling ordinance would allow the city to consider any applicant (whether public, private, consortium, subscriber co-operative, etc. ) as viable for the franchise as log as the applicant is willing to meet the qualifications of service delivery and coverage as stated in the enabling ordinance. A specific franchise agreement should be drawn up between the local governmental unit and the franchisee at the time of the contract. 2. Co-ordinate the City's telecommunication policy with that of nearby communities, county or regional communication systems and with State or regional interconnections. I4ICR0IILM[D By ' JORM MICR6LA9 ff pqo IrnPio . 'AC 10PIF'. r1ILcUI iLALu BY JUM MICkULAu 3. 3. Solicit, review and advise the City on qualifications of any potential franchisees in terms of their ability to meet the guidelines of the Enabling Ordinance, 4 Oversee and provide information for franchise referendum. should one occur. 5. Develop a Franchising Ordinance between the City and the franchisee. 8. Administer the City's responsibility as franchiser and perform other duties as may be reasonably required by the Enabling or FranchIs Ing Ordinances such as: a. Resolving disagreements or arbitrating between i franchisee and users of the system; such decisions of the Commission shall be appealable to the City Council. b. Review and audit the franchisee's records. c. Conduct an evaluation of the cable system d. Recommend to the Council amendments or pro- pose regualtions to the Telecommunication Enabling or Francising Ordinances, e. Initiate and review regulation of rates 7. Serve to facilitate and encourage use of the access channels by the widest range of institutions and individuals. 8. Determine general policy relating to service provided subscribers. 9. Submit a budget request to the City to cover expenses incurred In respect to performance of functions. This request may include funds to be used for development of use of access channels Including production grants to users and purchase and maintenance of equipment. MICRO[ IL14C0 By JORM MICR4ILAB f I';IAp pIanI Ir5 I",iLuli ILALIJ Bi JONM [IICkOLAu (,CUAI< RANIJ� A;4J JL., . to. Employe as necessary services of a technical consultant, to assist in analysis of any matter relative to the Enabling or Franchising Ordinances. 11. Develop and publish within six months of the date of award of the initial franchise, and amend as necessary from time to time, a cable communication system rules and procedures manual to define the Commission's functions and responsibilities, and to adopt rules and procedures in relation thereto. Procedures and amendments shall be submitted to the City Council for approval. 12. Submitan anual report to the City Council. Specific Research and Analysis. 1. Cost -benefit systems analysis. More thought should be given to how to maximize community welfare and how to achieve specific Information and communication functions, and how to assure the long term positive effect of communication technology particularly within the attitude of a regional approach to communication This includes an analysis of municipal and civic functions that can be aided by cable telecommunication; cost -benefit analysis of comparisons of cable -assisted delivery of service v. conventional modes of delivery. Included in the costa must be value of social benefits and social costa, and analysis of negative consequences of cable technology. 2. Relation to region. The essence of the regional approach is that communication and information needs and opportunities do not necessarily coincide with the municipal limits. The franchising authority, contrary to our assumed interpretation, may be any level of 13 MICROP ILI4LO By r JORM MICR6LAB 4. f-!,u,Wr L;'ILO by JOkt4 t11CROLAb LLUA:< kAriu:, A;+u 5 of government empowered to act In behalf of its citizens. The Mayor's Cable Committee discussed early on the importance of interconnect and the lack of viability of several separate systems In the Iowa City -Johnson County region. It is imparative that the City not proceed independently and that the City should investigate the following alternative courses: a. City taking the lead in interconnection within the County or region. b. City participation in joint powers agreement C. County serving as franchise authority, or a joint City/ County venture. d. Encouraging State districting of cable areas. 3. Ownership and funding. New avenues of cable system funding should be investigated. Major institutional users such as banks and the university computer system could be owner -members along with different local and regional governments who would jointly build and maintain the cable system and agree to lease a certain number of channels for their own purposes in a point-to-point dedicated cable network Or perhaps, shared ownership of a cable system between local governmental units and private entreprenures dividing services and costa between social service and entertainment functions. Or, spreading out initial expenses by staged construction schedule for introduction of specific service benefits related to number of subscribers or proportion of return to franchisee. 4. Technology changes. Basic changes in available technology have moved the telecommunications picture from 'blue sky" to reality - particularly in the area of satellite/cable technology. These communication satellites relay messages and programming over broad multi -state S 141CROI ILMEII RY JORM MICROLAB r! nnu i 9P � m, . '); . '101'V MiL,iWf iL L,L) BY JORM 141CRULAO UuAt< ilAfiU'� ANN ULA 6. regions without regard to municiple boundaries. Cable systems can pickup satellite signals and transfer them to many local households by way of ground stations(saucer) already being Installed in our region A satellite can work in conjunction with any terrestrial communication network - cable, microwave link or telephone. The widespread applications of video discs and cartridges have already changed the attitude of educational institutions toward cable. 5. Legislation/ regulation. There is a need for communities to 'watch -dog" and offer comment on proposed FCC re-evaluation of rules, and on Congressional, White House and State regulatory actions Unless we are on record with the FCC as having interest in discussing these matters by August 1975 - we will be excluded from further testifying. FCC is currently requesting pre -comments on proposed declaratory rulings having to do with a. Modification of network programing exclusivity b. Restrictions on importation of sports broadcasts Into home areas. c. Terms on which cable system should be authorized to carry radio signals. d. Whether franchise fee can be used to support public access. And most importantly e. Pending re -regulation of the 1972 Report and Order - whoes five-year status will expire March 1977 Particular proposals at this time include - removing require- ment for provision of access channels when there has been no demonstrated showing that there will be substantial use and changing ground rules as to ' T_MICRO[ ILI410 RY ' JORM MICR6LA9 frnpu rrtrlw n(S 101'IfS Nl U(Ui 101LU BY JORM I.1ICRULAB • LWAR kAYlu� AND Ou 7. whether old grandfathered systems should have to meet updating of channels and provisions by the 1977 required date. In Congress, beside the pending copyright policy legislation. there are a number of bills pending Involving regulation of cable television. Federal -State -Local considerations, cable pay-TV and rural funding of cable systems. The White House Office of Telecommunications has proposed extensive legislation changing theFcc's role in relation to cable television and limiting the FCC'B involvement to exclude areas of cable television operation not involving carriage of broadcast signals. i tdlf.ReflU•iED BY DORM MICR�LAB MAP • PFS IOIBFt 1•Ii.,r.Ui iLALJ by JUHN NICQLAb LLUAr< RAY r J� hilU 0L '• - UTILIZATION Or A LOCTOn0Vr.RN TENT ACCESS CIIANNE.1 IN W In compiling the information for this report, staffible embers of ses of a local the City were contacted for the�neralideas list of possible uses was government access channel. A 6to - given to them during the course enerateof mideasafornusing ravcable xamPles of what could be done and to g what follows, channel in their particular department or capacity. in this report is a listing of possible o ssibleuses In uthevantou, departments and areas of city government. te suggestions given by department and staff personsIncludeadditional uses pertinent to the Iowa City with other . These municipal uses were found in resource material dealing cities' uses and experience with a local cable channel. Generally, there are four major areas of use for a local enoveal rn- ment access channel. These include information Lo theimprovement public, education concerning local government action, of services to the and details of unitheamunicipal governmentuse bthe City s administering the day-to-day The City Attorney's Office offered the following list of possible topics for the presentation of information to the public: a, criminal justice administration b, consumer protection c. bicycle regulations d, explanation of procedures and enforcement concerning parking tickets e. procedures explanationiofomagistrate lved in acourt ll acourt system f. exp g. various legal system changes h. laws regulating pets I. changes involved in water billing j, minimum housing code enforcements k. explanation of traffic violations 1. local standards on obscenity M. city liabilities (sidewalks, etc•)water, etc.) n, pollution ordinances (noise, air, o. those activities for which licenses are required (signs, liquor, dancing, etc.) p, zoning requirements �1 MICR01-ILMID By DORM MIC R�LAB frpnp pert q' . "I1 "111•111 Nt ufWr 1L LU by JURM I.1ICRULAb -2- l.r_UAt< kAYIJ: v.Lc During the course of the research, from thin ofl'lce, it was polnted out that problems may occur with the, dlsseminnl.lun of lnformatton. The question raised was whether some, of the tnl'urnlat:lon given to the public could be interrupted an advice rather than general .information. This gray area concerning information and advice needs to be clarified. The City Clerk's Office submitted the following suggested uses: a. 1.5 minute wrap-up of City news the day after Council meetings b. Council meetings c. public hearings, especially controversial issues d. .public meetings e. visits to public buildings, parks, etc. f. ombudsman to answer citizen complaints g. presentations of proposed capital improvement programs More refined equipment would allow for the following uses: a. administrative offices could display pages of records for viewers (two-way hook-up) b. voting in elections (two-way hook-up) c. electric, gas, and water meter readings (two-way hook-up) Some of the following suggestions from the Department of Community Development may overlap with suggestions from the City Attorney's Office. In instances such as this, a combination of effort could be appropriate. a. planning and zoning commission meetings b. presentation of staff plans c. explanation of work involved with planning staff d. informational. sessions for the public and interest groups concerning various ordinances (signs, etc.) e, instructional programs for electrical and contracting individuals f. explanation of the housing program g. programs concerning the elderly (what they could expect, what the program can supply them) h. social security and its application to housing I. solicitation of comments from citizens J. rights of tenants and landlords k. procedures prior to adoption of ordinances 1 . _i i IdICA01 ILI4E0 6Y JORM MICRbLAS rrppo I: AI"". ^IC '10I 7f5 ISi u<Ui iLMLU By JOkt•1 MICkOLAB -3- I.LUNN li.{ IUj AHU Jc� •' The office of Community fielations main use or a local government access channel. would involve the dIsseminatIon of all news ILems related to City matters. 'Phis could be done by means of a dally program and the use of npectnl programming when necessary. Many of the items not concerned with a particular department of the Ctty but of general informational use to the public would be sent through this office as a mattor of routine. Communcations with the Department of Employee Relations indicates R wide range of uses for a local government access channel. a. program on municipal ,Job opportunities Explanation and information concerning: a. the development of personnel plans, policies and programs for the City b. recruitment, selection and classification for job positions c. management, development and training d. performance appraisal e. employer—employee relations f. grievances g. negotiations h. benefit programs 1. personnel safety J. workmen's compensation k, communication with employees More refined equipment would allow for: a. maintenance of central personnel records Many of the items listed could serve as educational material for the information and use of local personnel manager. The Iowa City Public Library has a wealth of information and resources available to the general public. A list of uses follows: a. children's story hours (several times weekly) b, special children's summer programs (bike repair, rock collecting, paper folding, etc.) c. puppet shows (once a month) d. film programs, both adult and children's (at least on a weekly basis) e. Sunday concert and drama programs (monthly during the winter months) .' Idl Clmf ILMCD BY JORM MICR6LAB -4- N,i 1,KUt iLALU BY JORM MICROLAB LLUAR RAI'1UJ Allo OL, GI f. meeting:: of' community groups usinf; the I,Ibrary meetInF, rooms, such as: 1. legislators - constituents meettrlgs 2. Kirkwnod adult educal:i.on clasner., .Including their mini -courses on pre -retirement, cake decorating, etc. and even possibly adult basic education skill. courses 3. county extension short courses (baby-nitting clinics, commodity futures investment session,, textile courses, consumer information, etc.) 4. Regional Planning Commission meetings 5. League of Women Voters, >ierra Club meetings 6, tax return preparation assistance from VITA volunteers g. reference service ( an hour each day when answers to phoned in questions from patrons could be put on the screen, i.e., maps, graphs, or an article from an encyclopedia, a product evaluation from Consumer Reports or a list of addresses from a business directory). h. book review programs which could include interviews with local authors 1. stories or books read al.oud for the visually handicapped j, recordings from the Library collection played with a record jacket used as a graphic signal; these could include both musical and spoken work records including the readings of plays or foreign language records k. community calendar: announcements of current community cultural. and civic events compiled from the many announcements and brochures received regularly by the Library. 1, craft demonstrations combined with related Library materials (macrame, etc.); also "instant craft" demonstrations for children M. videotapes suitable for broadcast which could be made available to the public as the Library does now for books, films, and records n. reading readiness programs for pre-schoolers The Department of Parks and Recreations submitted the following suggested uses: a. cablecasting of municipal cultural and recreational events b. agricultural, garden and related information c. Little League, Women's League, Babe Ruth playoff games d. handicrafts and other skill instruction courses could be made available to the private homes of shut-ins and handicapped persons MICRO[ ILMO 6y ' JORM MICROLAB I$DAV Vac"' N NMI -V, P11wwr iLI4Lu BY JOkM MlCkOLAB LEDAk I(API J A IU 1)_� -5- More refined equipment would allow for: a. two-way cable could expand the senior citizens program b. closed circuit television within the recreation center, schools, and swimming pools to provide surveillance (privacy must be maintained) Public Safety is an area of municipal usage which must be approached carefully, especially with matters relating to surveillance. The following were suggested uses and topics: a. emergency alerts (tornadoes, lost children, etc.) b. rape education c. wanted bulletins, license plates d. photographs of fugitives, missing persons, etc. e. daily communications f. transmission of orders g. public safety education fire prevention data for general public first aid courses for general public how to extinguish simple fires what happens before and after a fire in the firehouse use of fire equipment More refined equipment would allow for: a. surveillance (traffic intersections, businesses, etc.) b. fire and burglar alarm systems Uses involved with the Department of Public Works will require very refined video and monitoring equipment. The following are possible uses concerning this department: a. utilities monitoring and control (reading meters) b. pollution monitoring (sensor devices on smokestacks, etc.) c. sanitation monitoring (The censor devices required for this type of monitoring, as of yet, have not been refined for practical use. However, once available, many present day problems could be alleviated in the public works area with the use of such monitoring devices). The Office of Urban Renewal could use the channel as an educational device to update the community on the status of urban renewal. The following are possible areas of use: a. public presentation of the current urban renewal proposal b. public hearings involved with urban renewal c. rehabilitation program contrasting before and after effects of urban renewal d. phase by phase approval coverage I41Cf101 IL141D OY DORM MICRmLAB ffaA� Paan• •iii ^01'lff '•1: �, I;ur;LAhu 8P JORM I•IICHULAu -G- LLL)AI( kiirlU, ,;JL) 1L., The above cnilection nl' unen 1.;! Junt the beginning of a mult:ip c number of pnnoibilitten far nn lawn (;lt•y local hovernment ar,r.c^s channel. A:: City nfflclnlo heaome familiar with the channel anenl it,potential, more uner; will unclnuhtedl.y be generated. oxperlenee with and unlimited exposure to the SY:Item will greatly ;lirl all local goverment personnel in maximizing the full potential. of the channel. (1f:e of the local government access channel will be largely determined by the type and amount of equipment available to the City personnel. More refined equipment will allow for greater and more diversified Limited maintainected, can only atcertain lamount ities aof output nd eb,y�the loas cal t algovernment. ocal must givennattention . 1Taken ginto nfactors e consideration must betheprogram expenditures necessary to maintain the channel. This will most probably require a staff person to set up the channel and the pro- gramming. This position can be filled by a part-time employee or possibly by a person working for the City now. The amount of o be work done.inStaffdcan only be cost will directlyereflecteworkunt of done. programming Other than the regular equipment required for cablecasting, costa may range up to $5,000. Equipment such as modulators and trunk line ties may be installed by and at the expense of the system operaroucin thee programming tmay alsoof vbeineeded.on This can tion ibeedone nt ninpvariousg ways. Either a studio complex costing $50,000 ori up could be built or investment in some remote equipment, costing about the same, could be made. Another alternative would be to buy a pair of port-a-pak units at $1,700 each. This would facilitate black e. Super andM white programs and be very mobile and easy sound to film with capability tive. The equipment totaketanother hepicture andrecordttheasound wouldcbet for approximately $250• To put on the cable, the one-time cost would ternati be approximately $1,200. The materials used for thnsonareusableve would cost in the vicinity of $1 per minute, being material. Other considerations in the cost of production will be additional tape expense 2and to dothe and materials work,graphic work. A staff person might beable Programming can be very expensive business. The items prevl.ouBly having are bpubliccosts. appealldeveloplocal theregovernment possibilitying thatideas having g neral city programming could be be contracted over to the System management, ' }IILROI IL14CD BY ' JORM MICR<�LAB . I'll ln;511. MILAUiiLMLu BY JORM 141CkOLAB • CLUAif kAVlu� AHU if this should happen, costs would decrease for the City programming. This situation would be more likely to occur under private franchise cablecasting. This report is a basic introduction to the potential of a local government access channel in Iowa City. As indicated previously, familiarity with and understanding of the Cable System will greatly facilitate its maximum utilization. Costs are directly related to the utilization and philosophy of the channel. Together, these factors will dictate the direction of local government and its relationship with a Cable System. 5 YI•—�-- MICROFILMED BY DORM MICR+LAB Cc PAP POPI9'. . n(5 MOIVfS Mliu,Wl iLMLL) by JORM MICkOLAb LLUAIi kAPiJw ANO ��� '•�• To: Members of the City Council of Iowa City (Tentative) In response to your request to consider the ways in which The Uni- versity of Iowa: might be associated with a cable television system operated under a franchise from the City of Iowa City, the matter has been reviewed by a special ad hoc Committee on Broadband Communications, the Council on Teaching, the Research Council, the Collegiate Deans, and the office of Facilities and Space Utilization. We believe that CATV holds great promise as an educational tool, and that the early involvement of the University in identifying distribution points is highly desirable in order to take advantage of the system. Moreover, as a producer as well as a consumer of programs, the University is in a position to increase the range of programs and extend new educational opportunities to the larger comnuni.ty. To this end, we recommend a continuing cooperation between the franchisee and the University in determining the cable drop points as well as program content. At the present time, the University recommends the inclusion of the following provisions in the ordinance authorizing a non-exclusive CAN franchise in the City of Iowa City: 1. Franchisee will install two high-quality transmission cables from the head -end of the local cable system to a University control point designated by the University. 2. Franchisee will completely wire the campus with a two -cable basic loop that, with the addition of head -end equipment at University expense at a later date, can provide the University with a campus system. MICROF ILHLm By DORM MICR(�LAB CVDP,,P VI:IV .'SII '4nfnf" M IL,Wr ILML.0 By DORM MICROLAB • CLOAtf kAV W� t iku OL 3. franchisee will install drops to the following buildings: Ita:;lc Science, Ihirge Iidll, Chemistry -Botany, Clapp Recital Hall, Couununications Center, Currier Hall, Daum House, Dental Sciences Building, East Hall, Engineering, English -Philosophy, Field House, General Hospital, Gilmore Hall, Hancher Auditorium, Health Sciences Library, Hillcrest, Jessup Hall, Kinnick Stadium, Law Center, Library, Lindquist Center for Measurement (Computer Center), Macbride Hall, MacLean Hall, Museum of Art, Nursing, Old Armory (TV Center), Phillips Hall, Physical Plant Offices, Physics Building, Quadrangle, Recreation Building, Rienow Hall, Schaeffer Hall, Slater Hall, South Quadrangle, Stanley Hall, Union (Iowa Memorial), Veterans Administration Hospital, Wendell Johnson Speech and Hearing Center, Zoology, Women's Gym, Trowbridge Hall, Calvin Hall, North Hall, Art Building, Pharmacy Building, Medical Laboratories,'Parklawn, Hawkeye Court, Hawkeye Drive Apartments. 4. The drops in the University buildings listed below shall be capable of origination when the City system becomes active two ways or when head -end equipment is installed at the Uni- versity control point. The University system, when active two ways, shall consist of the same number of channels as the City system but no less than three return channels. Initially, at least the following buildings should have origination capa- bility: Basic Science Building, Clapp Recital (fall, Communica- tions Center, Dental Service Building, East Hall, Field House, N I MICROI WILD By JORM MICR�LAB NUPtoriD, •'rt5'd01'1(C 0 u;uriL4Lu BY JURM MICkULAB 1,LUAH kAi w, AIIJ JL _ 3 General Iln:,plLrl, Ilancher Auditorium, Health Science Library, Jessup Hall, Kinnick Stadium, Law Center, Library, Lindquist Center for Measurement (Computer Center), Museum of Art, Nursing, Old Armory (TV Center), Old Capitol, Physical Plant, Recrea- tion Building, Union, University Theater, Veterans Administra- tion Hospital, and the Wendell Johnson Speech and Hearing Clinic. 5. The franchisee shall install the drops to the buildings desig- nated in 3 and 4 above at no cost to the University. 6. The franchisee shall install the necessary directional taps and amplifiers in the drops and feeder lines for the buildings designated in 4 above at no cost to the University, 7. The franchisee shall install drops and, where required, direc- tional taps and amplifiers to all University buildings constructed during the duration -of the franchise as requested by the Uni- versity. Such drops, directional taps and amplifiers shall be installed and maintained at no cost to the University and within sixty days of completion of construction of such build- ings. 8. The franchisee shall install drops and, where required, direc- tional taps and amplifiers to any building specified by the University, but. not provided for in items 3, 4, and 7, instal- lation thereof to be at cost (labor and material) plus ten percent. Franchisee will provide maintenance and use of such added outlets without charge for the duration of the franchise. Idl CR01 I LIdCe BY JORM MICR46LAB N iL,iWl iLMLJ 8Y JURM MICRULA8 LCUAK '�NLIw A:lu 4 9, If any bulldings on Lhe lis Ls in 3 and 4 above cannot be equipped with drops or activated by the franchisee as specified herein, the University reserves the right to recommend which buildings are to be included. 10. The franchisee shall install CATV outlets to University class- rooms and offices upon request by a designated University of- ficial, at cost (labor and material) plus ten percent, for Uni- versity use of these outlets without charge for duration of the franchise. 11. Campus system will carry all video or•audio signals, or both signals, carried on the city system. Upon the installation of head -end equipment at the University control point, however, the remainder of the channel capacity will be available for University use at no charge. 12. Minimum service on the system will include at least five F14 stations from outside this market and a minimum of three short- waie stations. 13. Franchisee will provide a minimum of three educational channels • on the general city system for unrestricted use by the University. 14. Franchisee will supply a direct line from the Johnson County Courthouse to the College of Law. Payment of costs for instal- lation of terminal equipment will be a •negotiable item. 15. Franchisee will supply terminals to all rooms in dormitories and apartments in married housing units. Whether the franchisee or the University will pay for terminal equipment and bulk -rate I I41CR01"ILMED BY i l DORM MICR6LAB ff pN� n,trl n. . �f°. •.f01 H(S I•Ii L,Wi iLili.0 by JORM MICkOLAb LLOAR RNPIu',j Ai1J c 5 MICROFILMED By JORM MICR�LAB MAIL P.v.lm . 'll tMnl'IE° suh!;crlpLlon 1'1'1', for L11C approximately 3,400 units will be negoLIaIiIc ILlnms. 16. franchisee will build color TV origination facility within walk- ing distance of the campus. The University will have access to this facility for teaching purposes approximately eighteen hours per week at no charge for either facility or equipment; exact times are to be determined jointly between the University and the franchisee. Faculty -supervised student use of equip- ment will be permitted. 17. All cable installed on the campus shall be buried, with the University retaining the option to require supervision of the trenching by the Physical Plant. 18. Franchisee or contractor will maintain appropriate liability insurance to cover accidents during construction. 19. All maintenance of the on -campus distribution system to be done by franchisee at no cost to the University. 20. r All technical specifications for the campus system will equal . or exceed those of the general City system; franchisee will maintain system to same standard required in City system. 21. Any.controversy or disagreement between the University and the franchisee, arising out of the above provisions shall be submitted to arbitration, which shall be conducted in accordance with the rules, then obtaining, of the American Arbitration Associa- tion. Judgment on the award rendered may be entered in any Court having jurisdiction thereof. MICROFILMED By JORM MICR�LAB MAIL P.v.lm . 'll tMnl'IE° hiit,iWI IL LU BY JORM MIGROLAB • LEDAR RAP AND L)L, '1 6 Our final cummunt Cuncur•ns tho continuing plans and development of an operating nutwork. We hope it will be possible for University repre- sentatives to have the opportunity for additional comment concerning edu- I-IiLKW iLh1LJ BY JUKM 1.11Ck(1LAB JLJAI< I<AI'IJj AfIO JL� '��• - Ccc ( %_lit (G48� 2 66 CHAPTER 36 BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLINC.ORDINANCE Adopted September 10, 1874 Published by direction of the Common Council of the ity of Madison in accordance with Section 66.035, Wisconsin Statutes. (Cr, by Ord. 4727, 0-23-74) This ordinance was prepared through the efforts of the Mayor's Ad Hoc Committee on Coaxial Cable Communications composed of the following: Aldermen Mayor Paul R. Soglin (as Alderman) Alderman Eugene Parks Alderman Loren M. Thorson Alderman Roger, Steven Citizens Mr. James Boll, Chairman s(repla (ned r73) eplaced Boll) Mr. William R. Walker, Chairman Mr. Lawrence W. Lichty, Secretary Mrs. Carolyn Cliver Mre. Ruth Harris Mrs. Phyllis Hinickle Mr. Anthony J. Parrish Mr, Robert Pepper Mr. Theodore J. Schneyer Mre, JoAnn Six Mrs. Merry Sue Smollar Mr. Carson E. Young .~� — t41—Mf ILMID By DORM MICR(�LA© rrDnr a.vI"' . IF '.MI'IF' I•IlutWi iL14LU By JORI4 141CROLAB lxUAtf RAVIu�- A!JU JLC CHAPTER 36 BROADBAND TELECOMMUNICATIONS FRANCHISE. ENA13LING ORDINANCE Section 36.01 Short Title. 36.02 Definitions. 36,03 Broadband Telecommunications Regulatory Board Established. 36.04 Cable Television Program Advisory Council Established. 36.05 Office of Broadband Telecommunications Established. 36.06 The Broadband Telecommunications Franchise. 36.07 Significance of Franchise. 36.08 Operation of Franchise. 36.09 Rights Reserved to the City. 36.10 Applications for Franchise. 36.11 Acceptance and Effective Date of Franchise. 36.12 Termination of Franchise. 36.13 Regulatory Jurisdiction and Procedures. 36.14 Reports and Records of the Grantee. 36.15 Franchise Payment. 36.16 Liability and Indemnification. 36.17 Bonds. 36.13 Fees, Rates and Charges. 36.19 Education and Governmental Connection to the Broadband TelecommunicR- tions Network. 36.20 Extension of Network. 36.21 Time for Performance. 36.22 Network Description. 36.23 Network Technical Requirements. 36.24 Performance Measurements. 36.25 Channels to be Provided. 36.26 Service Standards. 36.27 Construction Standards. 36.28 Conditions of Street Occupancy. 36.29 Interconnection. 36.30 Unauthorized Connections or Modifications. 36.31 Preferential or Discriminatory Practices Prohibited. 36.32 Subscriber Privacy. 36.33 Ordinances Repealed. 36.34 Publication Costs. 36.35 Separability. 36-1 . � T AICROI ILMED BY JORM MICR46LAB ',I, %U:,L-.0 br Jl)ktl 1-Ukl1LAd I,LJW', tiAl'JJ :i�i,J ,L. Sec. 36.01 IIIIOADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE 36.01 SHORT TITLE. This ordinance shall be known and may be cited as the "Broadband Telecommuni- cations Franchise Enabling Ordinance". 36.02 DEFINITIONS. For the purpose of this ordinance the following terms, phrases and words and their derivations shall have the meaning specified herein. When not inconsistent with the context, words used In the present tense include the future and words in the singular number include words in the plural number. Additional Service shall mean a subscriber service provided by the Grantee for _w_h_1_cH a special charge is made based on program or service content, time or spectrum space usage. A.C. - abbreviation for alternating current. Annual Gross Subscriber Revenues shall mean all revenues received by the Grantee, lte a f111;ttes oz su ei far as from and In connection with the operation of the Broadband Telecommunications Network in the City of Madison, Wisconsin as that term is defined by the FCC or a court of competent jurisdiction, and shall include if so authoritatively determined, revenues from all sources Including without llmitatlon revenues from advertising, channel leasing, data transmission and per program charges, in addition to the subscribers' regular monthly payments, AGC (Automatic Gain Control - an electronic circuit which automatically increases or decreases, wlthln Tits range, the gain of an amplifier in order to maintain a stable or fixed output level. Sometimes called ALC or AVC. ASC (Automatic Sloe or Tilt Control) - an electronic circuit or therms evjce t at compensates or c angel Tin cable or amplifier characteristics caused by temperature variations. Basic Service shall mean all, subscriber services provided by the Grantee, Including the delivery of broadcast signals and programming originated over the cable system, covered by the regular monthly charge paid by all subscribers. Broadband Tel ecomaluntcations Network shall mean any network of ca Won- optical, electrical, or electronic equipment, including cable television systams , used for the purpose of transmission of electrical impulses of television, radio and other intelligences, either analog or digital for sale or use by the inhabitants of the City. Channel chitnn Ts on wis e te aaon signals from separate sources st total number f may lbesdelivered downstream simultaneously to every subscriber In the network. The network may have additional channel capacity for specialized or discrete purposes, `.)jt the technical performance specified shall not be materially degraded thereby. Cable TelevisionCtiannol - a frequency band 6 MHz in width within which a standard to ev a on rasdcast signal is delivered by cable to a subsriber terminal (except that Class 111 6 IV cable television channels as defined by the FCC may be either wider or narrower than this standard) , Channel Frequency Response - within a cable television channel, the relationship as measured at a subscriber terminal between amplitude and frequency of a constant -amplitude input signal at all specified frequencies within each channel. 36-2 —'MI(IMnl.lar) or DORM MICR6LAB I•liuwi IL. -IL,) by JORM I•liCkOLA6 BROADBAND TELECOMMUNICATIONS FRANCHISE. ENABLING ORDINANCE id Wii< tfA 1', J� ,ii,J .,L Sec. 36.62 C� shall mean the. City of Madison, its officers and employees unless otherwige specifically designated, the area within the territorial city limits of the City as dofined and mapped in Chaptor 15 (Aldnrmanic Districts and Wards) of the Madison General Ordinances, and such territory presently outside the City limits over which the City may assume Jurisdiction or control by virtue of annexation. Class 1 Cable Television Channel - a signaling path provided by a cable televie on system to relay to su scrimsterminals television broadcast programs that are received off -the -air or are obtained by microwave or by direct connection to a television broadcast station. Class 11 Cable 'I'elevision Channel - a signaling path provided by a cable televis on system to de iver to su scriber terminale television signals that are intended for reception by a television broadcast receiver without the use of an auxiliary decoding device and which signals are not involved in a broadcast transmission path. Clave III Cable Television Channel - a signaling path provided by a cable televis on system to o ver to ou a CrIUUI terminale signals that are intended for reception by equipment other than a television broadcast receiver or by a television broadcast receiver only when used with auxiliary decoding equipment. Class IV Cable Television Channel - a signaling path provided by a cable television system to transmit signals of any type from a subscriber terminal to another point in the cable television system. Commence 0 eratlon. Operation will be considered to have commenced when su tient distrlbudon facillues have been installed so as to permit the offering of "full network services" to at least twority-five percent (25%) of the dwelling unite located within the designated "service area", Council shall mean the Common Council of the City of Madison and any legally appointed or elected successor or agency. Data Grade shall mean coded transmissions primarily digital In nature. aF - the level in the network expressed in db's above or below a power corresponding to a root mean square voltage of one millivolt across seventy-five (75) ohms. Discrete Cable Television Channel - a signaling path provided by a cable televie on system to transln t e gna s o any type to specified subscriber terminale within the cable television system. Downstream - the direction of transmission over the BTN from the "head end" or "hub" to a subscriber's terminal. Dual Cable System shall mean a Broadband Telecommunications Network design technology that includes the total duplication of all trunk cables, distribution Cables, and may include the total duplication of the associated electronic equipment when the transmission of more than the twelve (12) standard VHF channels of telovtsion Information is required for delivery to subscribers without the use of a TV set convertor. FCC shall mean the Federal Communications Commission and any legally appointed or elected successor. Franchise Payment shall include all charges imposed for a franchise whether the object a regu at on, revenue or ono -time reimbursement of costs incurred by the City In the award of this franchise. Full Network Service shall mean all "basic services" and "additional services" offnro y t e rantee. 36-3 M I C.MIt IL141: 17 BY JORM MICR46LAE3 ,,,,;01 ;LUJ by JUkM I.11CkULA6 Sec: 36.02 BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Grantee means all persons including, but not limited to, subsidiaries, parents, or affil atl to companies, associations or organizations having any rights, powers, privileges, duties, liabilities or obligations, under this ordinance, and under the franchise ordinance, collectively called the "Franchise", and also includes all persona having or claiming tiny title to or interest in the system, whether by reason of the franchise itself directly or by interest In a subsidiary, parent, or affiliate company, association or organization or by any subcontract, transfer, assignment, mortgage security agreement, management agreement, or operating agreement, or whether otherwise arising or created. Head End shall mean the land, electronic processing equipment, antennae, I tower,building and other appurtenances normally associated with and located at the starting point of a Broadband Telecommunications Network, excluding the studio. Iiub Configuration a BTN design technology wherein all transmission paths either originate or terminate at a central location within the community. Local Distribution Center shall mean a facility within the community remote from but connects to the u which distributes signals from the "hub" to a specified area in the Broadband Telecommunications Network. Local Distribution System - that portion of the network that originates from a "local distribution center opposed to the "hut)". MMMT is permissive. Network Noise - that combination of undesired and fluctuating disturbances within a ca a to evislon channel, exclusive of undesired signals of discrete frequency which degrade the reproduction of the desired signal and which are due to modulation processes, thermal effects and other noise -producing effects, not including hum. Network noise is specified in terms of its rms voltage or its mean power level as measured in a 4 MHz band above the lower channel boundary of a Broadband Telecom- munications Network. Physical Mile of Plant shall mean messenger strand as measured from pole to pole withoutto ink g into consideration sag or downguye, and for buried plant, actual trench feet, Reasonable Notice shall mean the provision of notice of contemplated action delivered at leastforty-eight (46) hours prior to such action. R.M.S. Root- Mean -Sq usre- the effective value of an alternating current waveform which wou deb numerically equal to energy to a constant direct current. Sale shall include any sale, exchange, barter or offer for sale. Service Area - that geographical area within the incorporated limits of the: City. Shadow Cable shall mean a condition of an additional cable without duplicated electronic equipment and without additional distribution cable required to activate and place it into service. Shall and Must - each is mandatory. State shall mean the State of Wisconsin. Meet shall include all streets, roadways, highways, avenues, lanes, alleys, courts, places, squares, curbs, sidewalks, easements, rights-of-way or other public ways in the City which have been or may hereafter be dedicated and open to public use, or such other public property so designated by law. Studio shall mean the land, electronic processing equipment, towers, building, camerae, fights and other appurtenances normally associated with and located at thn Grantee's local origination and/or public access pointe of a Broadband Telecommuni- catlons Network, excluding the head end. :16-4 41CR01 IOU) By DORM MICROLAB ,,')Ao . ,I' !O -V �-;, gun,L'IL J BY JOW MILkOLAu BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE I,LJA(< iii\r i.).; A6il1 �L Sec. 36.03 Subscriber shall mean any person, firm, company, corporation or associa otTnreceiving either "basic service" or "additional service" from the Grantee under the schedule chargee filed with and approved by the City. Subscriber Terminal - the Broadband Telecommunications Network's 75 ohm ce a term na tow ich the subscriber's equipment is connected. Separate terminals may be provided for delivery of cable television signals, FM broadcast, or other signals of differing classifications. Substantial! Com !sled -operation will be considered substantially completed when suf tient distribution facilities have been installed so as to permit the offering of "full network service" to at least ninety percent (80%) of the dwelling units in the service area to which access Is legally and reasonably available. Terminal Isolation - at any subscriber terminal, the attenuation between that term na an any of er subscriber terminal in that network. Upstream - the direction of transmission over the BTN from a subscriber terminal tot the network's "head end" or "hub's. Video Grade shall mean transmission primarily analog in nature including the picture p ase of a television broadcast. Visual Signal Level - the rms voltage produced by the visual signal during t e tranem es ono synchronizing pulses. 36.03 BROADBAND TELECOMMUNICATIONS REGULATORY BOARD ESTABLISHED. (1) Broadband Telecommunications Regulatory Board Establinhari Board, composed of seven (7) citizens apiWMayor.r to the approval of the Common Council, forpaterm of three (3) years; ject except the first appointees shall be appointed two (2) for a term of one (1) year; two (2) for a term of two (2) years; and three (3) for a term of three (3) years; and thereafter each for a term of three (3) years. The Director of Broadband Telecommunications shall serve as a nonvoting member of the Regulatory Board. It Is reoommended . that a majority of the members be subscribers to the system at the time of their appointment. At least two (2) weeks before any citizens are appointed to the Broadband Telecommunications Regulatory Board, written applications from Interested citizens who are willing and able to serve on said Board shall be accepted. The Mayor shall consider the applications submitted by citizens as well as other citizens ae may come to the attention of the Mayor as being qualified and every effort shall be made to make said Board as broadly representative of the citizens of Madison as possible. (2) Powers and Uutlos of the Its ulator Board. The duties of the Regulatory oar in ad ton tot ose set ort n ect on 36.13, shall be as follows: (a) Resolving disputes or disagreements between subscribers and the Grantee after Investigation should the subscriber and the Grantee not first be able to resolve their dispute or disagreerhent, based on the report and recommendations of the Director of Broadband Telecommunications. (b) Reviewing and auditing reports submitted to the City as required by Section 36.08 and Section 36.14, and such other correspondence as submitted to the City concerning the operation of the Broadband Telecommunications Network so as to insure that the necessary reports are completed and fulfilled pursuant to the terms of the ordinance. 36-5 I4ICROI ]OLD BY JORM MICR6LAE1 N;uz n uv JOkt4 FUCkuLAb Sec. 36.03(2)(c) I LJA;< i'Mr ,J- rk;,'J ..L., BROADBAND TELECOMMUNICATIONS FRANCHISE. ENABLING ORDINANCE (c) Work with thu public and thn madla to assure that all records, rules and charges pertlnont to the Broadband Telecommunications Network In tho City of Madison are made available for inspection at reasonable hours upon reasonable notice. (d) Confer with the Grantee and advise on the interconnection of the City's cable system with other cable and communication systems. (e) Solicit, review and provide recommendations to the Common Council for selection of applicants for franchise under the provisions of Sections 36.10 and 36.11 . (f) Initiate inquiries, receive requests for review of rates charged by the Grantee, and provide recommendation on such actions to the Common Council. (g) Establish and administer sanctions as authorized by the Common Council to insure compliance with this ordinance. (h) Such other duties as the Common Council may assign to the Broadband Telecommunications Regulatory Board. The findings of the Board shall be final, subject to written appeal to the Common Council. The decision of the Common Council shall be final. (3) The Board shall adopt such rules and regulations as are necessary to insure that due notice is given to all parties concerning any hearing on any complaints to said Board and the hearings are held promptly in accordance with reasonable notice to all parties. The Board shall also have such powers to include the election of its own officers. 36.04 CABLE TELEVISION PROGRAM ADVISORY COUNCIL ESTABLISHED. (1) Establishment of Cable Tole vlsion Pro ram Advisor Council. There a seta e a a a e e ev a on rogram v sory ouncil consisting of fifteen (15) persons with three (3) members each representing the public, educational and governmental users and six (6) persons chosen at large to be representative of the community; all fifteen (15) to be appointed by the Mayor subject to the approval of the Common Council. The first appointments shall be five (5) for a one (1) year term; five (5) for a two (2) year term and five (5) for a three (3) year term; and thereafter all appointments 'shall be for three (3) year terms. It is recommended that each group of five (5) initial appointments be representative of the four categories described - three (3) from the users and two (2) persona at large. At least two (2) weeks before any persona are appointed to the Cable Television Program Advisory Council, written applications from Interested persons who are willing and able to serve on said Council shall be requested. Such applications shall clearly indicate the category that a person would be representing. In making recommonda- tions for said Board, the Mayor shall consider the applications submitted by persons as well as ouch other persons as may come to the attention of the Mayor as being qualified. (2) AdvisoryCounc�il Duties. The Coble Television Program Advisory L�ounc sll hall perform the following functions: (a) To make recommendations to the Grantee of the Broadband Telecommunications Network and to the educational and governmental users of the educational and governmental access channels. 36-6 w1CROIILM19 BY DORM MICR6LAB �•�:�,�•;J� jL:44u by JOk14 I•IILkOLAb BROADBAND TELE COmMUNI CATIONS FRANCHISE ENABLING ORDINANCE �L1%riid I<Ar,J� �ulU vL: Sec. 36.04(2) (b) (b) To insure that the Grantee makas the public access channel available to all residents of the City on a nondiscriminatory basis. (c) To assure that the operation of the public access channel be free of program censorship and control. (d) To perform such other duties and functions relative to the public access channel as may be appropriate. (e) To make recommendations to the Grantee on the procedural aspects of the public access channel. (3) Advisory Council Rules and Procedures. The Advisory Council shall have the authority to submit proposed rules and regulations for the conduct of Its business to the Mayor and Council for approval, and upon approval, shall have the right to hold hearings and make recommendations to the Grantee of the Broadband Telecommunications Network and to the educational and governmental communities on the coordination of the educational and government access channels. All such actions shall only be advisory. 36.05 OFFICE OF BROADBAND TELECOMMUNICATIONS ESTABLISHED. (1) Establishment of Broadband Telecommunlcatione Office. There is HereDy created an office of Broadbanda ecommun cat ons within the Department of Administration for the purpose of exercising the City's continuing regulatory jurisdiction over any franchise granted by the City of Madison for the operation of a Broadband Telecommunications Network. (2) Director of Broadband Telecommunlcatione, The Office of Broadband Te ecommun cat one a hall menage anddirected by a Director of Broadband Telecommunications who shall be appointed by the Mayor, subject to the approval of the Common Council, and he shall hold this office under civil service. (3) Responsibilities of the Director. The Director of Broadband Telecommunl cations shell be charged with the responsibilities of representing the City of Madison in the following matters: (a) Receive and investigate such complaints, disputes or disagreements as may be directed or referred to the City of Madison, between subscribers and Grantees of a Broadband Telecommunications Network and other distribution systems Interconnected with the Broadband Telecommunications Network, not first able to resolve their differences. (b) Report his recommendations upon complaints, disputes or disagree- ments after Investigation, to the Broadband Telecommunications Regulatory Board for the issuance of finding. (c) Review and audit reports, records, communications and Grantee regulations submitted to the City of Madison and conducting such Inspections of the system as may be necessary in support of such review as provided for in the City of Madison Broadband Telecommunications Franchise Enabling Ordinance. (d) The Director shall work with the public and the media to assure that all tariffs, rates, charges and rules pertinent to the operation of the Broadband Tolocommunlcatlons Network in the City of Madison are made available for Inspection by the public at reasonahlo hours and upon reasonable request. 36-7 ' —��� dI CkUI ILIdCU (i l' JORM MICR6LAB rrN,•,, I•;,,,<w ;L.-!;,; by JOHN (IlCkULAu Soc. 38.05(3)(0) BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE (e) The Director shall confer and coordinate with the Grantee on the interconnections of the City's Broadband Telecommunications Network with other similar networks. (f) The Director shall be a nonvoting member of the Broadband Telecommunications Regulatory Board. (g) Such other duties, including administration services as the Common Council and Regulatory Board may assign to the Office of Broadband Telecommunications and are necessary to faci the functions of the Office of Broadband Telecommunicationelitate and the Broadband Telecommunications Regulatory Board. (h) The Director shall facilitate the operation of the Program Advisory Council. nts All departments government (4) RRalatonsicoopeo Dee to w Dcof Broadband Telecommunications to the end that he may discharge his duties and responsibilities as te contemplated by this ordinance. Departments are directed to coopere. fully with the Director of Broadband Telecommunications in this purpose (a) All City departments shall make available all such information pertaining to the Broadband Telecommunications Network as may be (b) The Directiorof BrTelecommunications. Broadband Telecommunications shall keep the City department heads informed on matters pertaining to the (c) Broadband The City Attorney or Telecommunications operation. his assistant shall provide i legal counsel to the Director of Broadband Telecommunications. 36.06 THE BROADBAND TELECOMMUNICATIONS FRANCHISE. (1) Franchise Reuirod. No person, firm, company, corporation or associ- a-t-io-n--sFaITEnstruct, install, maintain or operate within any public street in the City, or within any other public property of the City, any equipment or facilities for the distribution of television signals or radio signals or other intelligences either analog or digital over a Broadband Telecommunications Network to any subscriber unless a franchise authorizing the use of the streets or properties or areae has first been obtained pursuant to the provisions of this ordinance, and unless such franchise is In full force and effect. (2) Review ofualiHcations. Specific permission to operate a Broadband underT-eTe-c—ommun'lcatloFs Network may beg anted by the Comm nCouncil provisions ordinance f the City to any Grantee after a review of the legal, character, financial, technical qualifications and the adequacy and feasibility of the Grantee's constructions arrangements and after the Common Council has approved the Grantee's qualifications as a part of a public proceeding affording due process. (3) Duration aFranchise. iietthe Grantee of the aeer acceptance, ne rqrednsuranc,he fanchise shall take as provided in Section 36.11 and shall continue in full force and effect for a term of fifteen (15) years. 38-8 - (dl Caul ILMEJ BY JORM MICRmLA6 nV,[ •I: -,ah iL4i l: by JURM MI OWLAo LLU{11� Khr„)� ,Y„u .,L, • - . BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Sec. 36.06(4) (4)nguiuonnfal f r inchise Review. a On or about the flith and tenth anniversaries of the effective data of the franchise, the Gity will schodule a public meeting or meetings with the Grantee to review the franchise performance, plans and prospects. The City may require tho Grnntoe to make available specified records, documents, and Infnrmatlon for this purpose, and may inquire in particular whether the Grantee is supplying a level and variety of services equivalent to those being generally offered at that time in the industry in comparable market situations. (b) The City shall first confer with the Grantee regarding modifications in the franchise which might impose additional obligations on the Grantee, and the Grantee may in turn seek to negotiate relaxations in any requirements previously imposed on it which are subsequently shown to be impractical. (c) Within thirty (30) days of the conclusions of such negotiations, the City may direct the Grantee to show cause why specified terms and conditions should not be Incorporated into the franchise and the Grantee may similarly file with the City a written request that specified obligations of its franchise be removed or relaxed. Implementation of such requests shall correspond as nearly as possible with the procedures set forth in Section 36.13 (3) . The Council will order changes in the franchised rights and obligations of the Grantee only if It finds from all available evidence that such changes will not impair the economic viability of the system or degrade the attractiveness of the system's service to present and potential subscribers. (5) Review of Franchise Prior to Expiration. (a u is Mee n to be Scheduled. At least six (0) months prior to t e exp ration o t e rano t se, the City shall schedule a public me or meetings with the Grantee to review the performance f Grantee, Including the results of the previous franchise reviews. The City may require the Grantee to make available specified records, documents and Information for this purpose, end may inquire in particular whether the Grantee is supplying a level and variety of services equivalent to those being generally offered et thnt time 1n the industry in comparable market situations. (b) Deemination on Reissue. The Cityia thin thirty 0t ays cnc uslono sec meetlns, provide determination whether a Broadband Telecommunications Network franchise or franchises will be reissued. In making said decision the City shall consider the technical, financial and programming performance of the franchise holder and specifically', with relation to any and all applications, promises or agreements made or entered Into by the franchise holder and its performance of said applications, promisee or agreements. in the event the City determines not to reissue the franchise or franchises for reasons other than a material breach of the franchise or for causes unrelated to the performance thereunder, it shall be so stated for purposes of Section 30,12 (3) . 36-9 MIfilm IW1 l) 6Y JORM MICRmLAEI Si,�itJr ;LJw IsY JUkM MICkULNb ILJhit :',M" "J„ Sac. 36.07 BROADBAND TELECOMMUNICATIONS FRANCHISE MAKING ORDINANCE. The Clty shall establish public proceedings leading to a final decision and such public proceedings shall include but not be limited to a public hearing providing opportunity for the public and applicants) for the relesued franchise to appear. 36.07 SIGNIFICANCE OF FRANCHISE. (1) Franchise Nonexcl. Any franchise granted hereunder by the City of Madison aha 1 not be oxcluslve and the City reserves the right to grant a similar franchise to any person, firm, company, corporation or association at any time. (2) Franchise Amendable. The scope of any franchise granted hereunder SE -a be deemed amendable from time to time to allow the Grantee to Innovate and implement new services and developments; provided, however, that no such services or developments be Implemented without the expressed prior approval of the Common Council. (3) Privile es Must be Specified. No privilege or exemption shall be n erre rom the grant ng--oTany franchise unless it is specifically prescribed. Nothing In this ordinance shell be deemed to require the granting of a franchise when In the opinion of the Council It would not be in the public interest to do so. (4) Authorl!y Granted. Any franchise granted hereunder shall give to t e Grantee the r ght and privilege to construct, erect, operate, modify and maintain, in, upon, along, above, over and under streets, as defined In Section 36.02 herein, which have been or may hereafter be dedicated and open to public use in the City, towers, antennas, Poles, cables, electronic equipment, and other network appurtenances necessary for the operation of a Broadband Telecommunications Network in the City; subject to the requirements of Section 38.28 of this ordinance. (5) Consent Prior to Transfer of Franchise. Any franchise granted hereunder SI:a e a pr age to e e or t isineftt of the public by the Grantee. Said franchise cannot In any event, be sold, transferred, leased, assigned or disposed of in whole or part, either by forced or voluntary sale, merger, consolidation, mortgage, trust, receivership or any other means without the prior consent of the City expressed by a Council resolution and then only under such conditions as the Council may establish. Such consent shall not be withheld by the City without showing of cause. (8) Consent Prior to Chan a of Control. Prior approval of the Common ouncl aha be req re whero ownership or control of more than five percent (54) of the voting stock of Grantee is acquired by a person or group of persons acting in concert, none of whom already owns or controls five percent (5%) or more of such right of control, singly or collectively. Transfer from a subsidiary to a parent corporation or vice -versa shall not be considered as a change of control. Prior approval of the Common Council shall also be required for all changes in ownership or control by a person or group of persons acting in concert, who already own or control five percent (54) or more of such right of control, singly or collectively. (7) Norge a or Pled a of Network. Nothing In this ordinance shall e eeo o mad to pro 1b�fhe mortgago or the pledge of the network or 36-10 MILROI ILIII .II ©1' JORM MICROLAS 15.�rtU� IL'Ii.J M JUkt4 MICkULAu • I.LJnrt <; l IJ., „�iU . BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Sec. 36,07(0) any part thereof. Howevur, any such mortgage or pledge shall be subject to and subordinate to the right of the City under this franchise or applicable laws. (8) Previous Ri his Abandoned. A franchise granted hereunder shall Fe—in leu o any an a 1 nt er rights, privileges, powers, immunities, and authorities owned, possessed, controlled, or exercisable by a Grantee or any successor pertaining to the construction, operation, or maintenance of a cable communications system In the City. The acceptance of a franchise shall operate, as between Grantee and the City, as an abandonment of any and all of such rights, privileges, powers, immunities, and authorities within the City. All construction, operation and maintenance by the Grantee of any cable system in the City shall be under the franchise and not under any other right, privilege, Power. Immunity, or authority. (9) Sub ect to Other Regulatory A encies Rules and Regulations. The Grantee snail at all times during the 1 e o any rano fermi a granted hereunder be subject to all lawful exercitie of the police power by the City and other duly authorized regulatory State and Federal bodies and shall comply with any and all ordinances which the City has adopted or shall adopt applying to the public generally and to other Grantees. (10) Compliance to Laws, Rules and Regulations. In the event any valid law, rule or regulation oT�ny govern ng aut ority or agency having jurisdiction , Including but not limited to, the Federal Communications Commission, contravenes the provisions of this ordinance subsequent to its adoption; then the provisions hereof shall be superseded by any such valid law, rule or regulation to the extent that the provisions hereof are in conflict and contrary to any such law, rule or regulation. (11) Pole Use Areem ml Required. Any franchise granted hereunder s e not re Seve tha Grantee of any obligation involved in obtaining Pole- or conduit -use agreements from the gas, electric and the telephone companies, or others maintaining poles or conduits in the streets of the City, whenever the Grantee finds it necessary to make use of said poles or conduits. (12) No Ri h, of Pro PartV. Anything contained herein to the contrary notwit tstanding. the award of any franchise hereunder shall not Impart to the Grantee any right of property in or on City -owned property. (13) Franchise Bindfn . Anything contained herein to the contrary notwith- standing, all provisions of this ordinance and any franchise granted hereto shall be binding upon the Grantee, its successors, lessees, or assignees. 36.06 OPERATION OF FRANCHISE. (1) 0 ere ions to be In Accordance With Rules. The Grantee shall malntaln an operate to roe an Te ecommun cat one Network In accordance with the rules and regulations of the Federal Communications Commission, the State of Wisconsin and/or the City as are incorporated herein or may be promulgated. (2) Interruption of Service; Notification. The Grantee, whenever it rs necessary to nterrupt service over the Broadband Telecommunications 30 - 11 IMHIF ILNtD BY, JORM MICROLA13 _;,.w, ;J•I, a by JUHl4 t,11CRULAd Sec. 38.08(3) (3) (41 (5) (6) (7) ,, 0A,l i:H l",J� A.(u ,1L BROADBAND TELECOMMUNICATIONS FRANCHISE. ENABLING ORDINANCE. Network fur the purpose of notwork maintenance, alteration or repair, shall do so at such time as will cause tho ]asst amount of Inconvenience to the subscribers, and unloss such interruption In unforeseen and immediately necessary, the Grantee shall give reasonable notice thereof to the affected subscribers. Studios, Office and Phono for Complaints. The Grantee shall maintain an office, production studio, and public access production facilities within the City limits which shall be open during all normal business hours, have a listed local telephone number, and be so operated that complaints and requests for repairs or adjustments may he received at any time. Service Records Maintained. The Grantee shall at all times make and keep at an office maintained y the Grantee In the City of Madison, a list of all complaints and interruptions or degradation of service received or experienced during the term of franchise. The records maintained above shall also include complaint response time and service restoral period and shall be continuously open to inspection, examination or audit by any duly authorized representative of the City. Grantee Rules and Regulations. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonable and necessary to enable the Grantee to exercise its rights and perform its obligations under this ordinance and any franchise granted hereunder. (a) Rules to be in Conformance With Other Regulations. None of such rules, regulations, terms end conditions promulgated under Subsection (5) above shall be in conflict with the provisions hereof or the laws of the State, or the Rules and Regulations of the Federal Communications Commission, or any rules and regulations promulgated by the City in the exercise of their regulatory authority granted hereunder. (b) All Rules to be Filed With Ctt . Two (2) copies of all rules, rogulations, terms and conditions promu gated under Subsection (5) above, together with any amendments, additions or deletions thereto, shall be kept currently on file with the City Clerk and another copy thereof shall be maintained for public inspection during normal business hours at Grantee's office in the City; no such rules, regulations, terms, conditions, or amendments, additions or deletions thereto shall take effect unless and until so filed and maintained. Subscribers' Antennas. The Grantee shall not require the removal, or offer to remove or provide any inducements for removal of any potential or existing subscriber's antenna as a condition of provision of service. Sale or Service of Television Receivers. Neither the Grantee during the period of the franchise nor any n is afMisted, subsidiary, parent organizations, officers or directors or stockholders holding five percent (59) or more of outstanding stock of the Grantee, shall within the corporate limits of the City or within ton (10) miles In any direction, directly or Indirectly, engage In the retail sale, renting, leasing, or repairing of radio or television receivers or thelr appurtenances, nor shall they require any, subscriber to utilize the services of any specific television/radio service business for the repair or maintenance of the subscriber's receivers, either radio or television, 36 -- 12 1•IICROI IL1110 By JORM MICR6LAB !-;,�,yJ, ;L;,iLo bt JORM MILRULAb BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE LLJA,< kikl'IJI ,;iw oL Sec. 36.08(6) (8) Antenna Switch, The Grantoo, upon request from any subscriber, e a insta ata reasonable charge therefore, a switching device so as to permit a subscriber to continue to utilize his own television antannn as he chooses. 36.09 RIGHTS RESFRVED TO '1111" CI'T'Y. (1) RI ht of Amendmont Rasorved to City. The City may from time to me, ac to, mo I y or de ete prav along of this ordinance as it shall deem necessary in the exercise of its regulatory powers provided that such additions or revisions are reasonable and do not place an undue financial burden on the Grantee. Such additions or revisions shall be made only after a public hearing for which the Grantee shall have received written notice at least thirty (30) days prior to such hearing. (2) No Impairment mf City's Rights. Nothing herein shall be deemed ar construe to lmp> fr or affect, in any way to any extent, the right of the City to acquire the property of the Grantee through the exercise of the right of eminent domain, at a fair and just value, which shall not Include any amount for the franchise itself or for any of the rights or privileges granted, and nothing shall bI: construed to contract away or to modify or abridge, either for a term or in perpetuity, the City's right to eminent domain. (3) Grantee A roes to Cit 's Ri hte. The Citv reserves every right W power w e s requ re to a reserved or provided by an ordinanre.. of the City, and the Grantee by its acceptance of the franchise, agrees to be bound thereby and to comply with any action or requirements of the City in its exorcise of such rights or powers which have been or will be enacted or established. (4) Clt 's R1 ht of Intervention. The City shall have the right to intervene an t to rantee SpeCIZICalLy agrees by its acceptance of the franchise not to oppose Such intervention by the City In any suit or proceeding to which the Grantee is a party. (5) Powers of the Cid. Neither the granting of any franchise nor any provision governing the franchise shall constitute a waiver or bar to the exercise of any governmental right or power of the City. (6) Cit 's Transfer of Functions. Any right or power in, or duty imposed upon any elected official, o mer, employee, department, or board of the City shall be subject to transfer by the City to any other elected official, officer, employee, department or board, (7) CIt 's Ri ht of Inspection. The City reserves the right during the e o any ranch se granted hereunder, to inspect and supervise all construction or installation work performed subject to the provisions of this ordinance and to perform network measurements to Insure compliance with the terms of the ordinance. (8) City's Right_of_Acquisition. Upon expiration of the term of the franchise, or rovocnt on, OF other termination as provided by law, or upon receipt of application for approval of an assignment of the franchise or upon change of defacto control, the City shall have a right to purchase the Broadband Telecommunications Network as set forth in Section 36.12 (3) herein. (9) City's R1Rht of Network Installation, Tho City reservee the right during the life of any franchise granted hereunder, to install and 36-13 MICROI ILeLn By JORM MICR6LAE1 W)AI f.,�161;L.'4. by JURM MICkULAL) ILW{„( 1 i;O' 101 rblJ v_ Sec. :)6.10 IIROADHAND TELECO"UNICATIONS FRANCHISE ENABLING ORDINANCE maintain free of charge upon or in the poles and conduits of the Grantee any wire and pole fixtures necessary for municipal networks on the condition thnt such Installation and maintenance thereof does not interfere with the operation of the Grantee. 36.10 APPLICATIONS FOR FRANCHISE. Applications for a franchise hereunder shall be filed with the City Clerk or his appointee, In accordance with the filing Instructions promulgated by the City and shall contain the following written information and provisions: (1) Proposal Hond and F111ng_Fea. Provision of the Proposal Bond as requ—rreenn Saction an.ii(1) and payment of a nonrefundable filing fee to the City of two hundred fifty dollars ($250) which sum shall be due and payable concurrently with the request for application Information. (2) Name and Address of A22licant. 'rhe name and business address oothe applicant, date of application and signature of applicant or appropriate corporate officer(s) . (3) Descri tion of Proposed Operation. A general description of the app tcant's proposed operation, including but not limited to: business hours; operating staff; maintenance procedures beyond those required in the ordinance; management and marketing staff complement and procedures; and, If available, the rules of operation for public access. (4) Si nal Carriage. A statement of the television and radio services to a provi e , including both off -the -air and locally originated signals. (5) S ectal Services. A statement setting forth a description of the automated of the sorvTcesion to be maderavailableosedbby the Grawell an antee fort the public, municipal,aind faces educational channels required to be made available by the provisions of this ordinance and the Federal Communications Commission. (6) Pro rammin Assistance. A statement establishing any additional un ing, acilltiea—eq ment, or personnel beyond those required elsewhere to be designatedto effect and promote local programming ing will be development. It is understood that the foregoavailable without charge to all on a fair and nondiscriminatory basiss annddmmay be used by the Grantee as well. Such funding and services will be contingent upon a special showing, where required, that the proposed uses are consistent with the regulatory program of the FCC. (7) Schedule of Charges. A statement of the applicant's proposed Schedule o C targea es set orth by the provision of Section 36.10 hereunder. (6) of therippliccantn11 any, i eluding the names aA statement nd addrthe esses ssesof itorganization officers and directors and the number of shares held by each officer and director. (9) outst�ng she slatemeof pplicanl s stock t identifying the number Including a of list oauthorized f nd the names and current addresses of its shareholders holding five percent (5%) or more of applicant's outstanding stock. (lo) Intra -Company Relationships. A statement describing all intra -company relationships of the applicant, including parent, subsidiary or affiliated companies. 36 - 14 - ;dICUI ILMI) By JORM MICROLAS by JURM MlLkULAo ILJhd VIM' 111- ""j . BROADBAND TELECOMMUNICATIONS Sec. 36.10(11) FRANCHISE ENABLING ORDINANCE (1l)A ruumonts and Undorstanding_y. A statement setting forth all agreomonts and un erstandings, whether written or oral, existing between the applicant and any other parson, firm, group or corporation with respect to any franchise awarded hureundor and thu conduct of the operation thereof existing at the time of proposal submittal. (12) Financial Statement. If applicant is a corporation, audited financial statements or t e two (2) previous fiscal years. If applicant Is a partnership, copies of the "U. S. Partnership Return of Income" (IRS Form 1065) for the two (2) previous fiscal years. If applicant is a sole proprietorship, copies of the "U.S. Individual Income Tax Return" (IRS Farm 1040) for the two (2) previous fiscal years. (13) Financial Projection. A ten (10) year operations proforma which shall include the initial and continuing plant investment, annual profit and loss statements detailing income and expenses, annual balance sheets, and annual levels of subscriber penetration. Costs and revenues anticipated for voluntary services shall, if presented, be incorporated in the proforma as required in this ordinance, but shell be separately identified in the proforma. (14) Financial Support. Suitable written evidence from a recognized financing institution, addressed both to the applicant and to the City, advising that the applicant's financial ability and planned operation have been analyzed by the institution and that the financing institution is prepared to make the required funds available to applicant if it is awarded a franchise. If the planned operation is to be internally financed, a board resolution shall be supplied authorizing the obtainment and expenditure of such funds as are required to construct , install and operate the Broadband Telecommunications Network contemplated heroundor. (15) Technical Description. A technical description of the type of system proposed y the app (cant,including but not limited to, system configuration (I.e. hub, dual cable) , system capacity, two-way capability. (16) Technical Statement. A statement from the applicant's senior technical staff member or consultant advising that he has reviewed the Network Description, the Network Technical Standards, Performance Measurements, Channels to be Provided, Service Standards, Construction Standards and Conditions of Street Occupancy as set forth in or required by Sections 36,22, 30.23, 36.24, 36. 25, 36 .26. 36.27, and 36.20, respectively, hereunder and that the applicant's planned network and operations thereof will meet all the require- ments set forth therein. (]71 Existln Franchisee. A statement of existing franchises held by the applicant Indicating w ,no the franchises were issued and when the systems were constructed and the present state (a) of the systema) In each respective governmental unit, together with the name and address and phone number of a responsible governmental official knowladgenhlo of the applicant. (1 It) Convictions, A statement as to whether the applicant or any of its officers or rectors or holders of five percent (5%) or more of its voting stock has in the past ton (10) years boon convicted of or has chargee pending for any crime other than n routine traffic offense and the disposition of each such case. (19) 07orstln Ex orlonce. A statement detailing the prior cable television oxporlonce o t e app idant nc u ing that of the applicant's officers, management and staff to be associated with the proposed operation. 36-15 AILIILII IL11LU B JORM MICR46LAB ,, )M1r , I, .Irl,.,,, IL-4; GY Joktl I1ICk1JLAn Sec. 36.10(20) I.LJWN k< i'tJa 11;10 JL_. BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE (20) Franchise Renewal Information. If an application is for renewal of a franchise, the proposT of must Include, in addition to the information required in Subsections (1) through (18) above: (a) A summary of the technical, financial and programming history of the network since the granting of the original franchise. (b) A statement and timetable that outlines all proposed changes, expansion or improvements in the system as to services, program- ming or technical specifications during the forthcoming five (5) year review period. (21) Additional Requirements. The application for franchise shall respond specgena nonce, to Subaectione (1) through (16) of this section and shall be bound separately from any additional information proffered by the applicant. Twenty-five (25) copies of the application shall be supplied to the City. Supplementary, additional or other information that the applicant deems reasonable for consideration may be submitted at the same time as its application, but must be separately bound and submitted in the above number of copies. The City may, at its discretion, consider such additional information as part of the application. (22) Supplementation to Applications. The City reserves the right to require such supplementary, additional or other information that the City deems reasonably necessary for its determinations. Such modifications, deletions, additions or amendments to the application shall be considered only if specifically requested by the City. 36.11 ACCEPTANCE AND EFFECTIVE DATE OF FRANCHISE. (1) Franchise Accetanto Procedures. Any franchise awarded hereunder anT t e rig pr vleges and uutnority granted theraby shall take effect and be in force from and after the thirtieth (30th) day following the award thereof, provided that within thirty (30) days from the day of such award the Grantee shall file with the City the following: (a) A notarized statement by the Grantee of unconditional acceptance of the franchise and (b) A certificate of insurance as set forth In Section 30.16 (6) herein and (c) A performance bond in the penal sum of one million dollars (51,000,000) as set forth in Section 36.17(2) herein and (d) Reimbursement to the City for the costs of publication of this ordinance, (e) Written notification of the Grantee's location and address for mail and official notifications from the City. 12, Forfeiture o[ Pro coal Bond. Should the Grantee fall to comply with ubsaction 1) s ova t s e acquire no rights, privileges or authority under this ordinance whatever, and the amount of the Proposal Bond or certified check in lieu thereof, submitted with its application shall be forfeited in full to the City as liquidated damages. (3) Grantee to Have no Recourse. The Grantee 'shall have no recourse whatsoever against the City or any lose, coot, expense or damage arising out of any provision or requirement of this ordinance or its regulation or from the City's exercise of Its authority to grant additional franchises hereunder. This shall not include negligent acts of the 36-16 111[201 I1.I1ED BY JORM MICR6LAEI IL."1,.,; by JURM I'11CRULAO • LLUiu< kdY l,» '"' �'— . . BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Sec. 36.11(4) City, its agents or employees which are performed outside the regulatory or franchise awarding authority hereunder. (4) Acceptance of Power and Authority of City. The Grantee expressly acknowledges that in accepting any tranchise awarded hereunder. it has relied upon Its own investigation and understanding of the power and authority of the City to grant this franchise, (5) Inducements Not Offered. The Grantee by acceptance of any franchise awarded hereunder acknowledges that it has not been induced to enter into this franchise by any understanding or promise or other statement, whether verbal or written, by or on behalf of the City concerning any term or condition of.thi i franchise that is not included in this ordinance. (6) Grantee Accepts 'Perms of Franchise. The Grantee acknowledges by the acceptance of this ordinance and the franchise ordinance that it has carefully read its terms and conditions and it is willing to and does accept all the obligations of such terms and conditions and further agrees that it will not, prior to substantial completion of the system, set up as against the City the claim that any provision of this ordinance as adopted, and any franchise granted hereunder to unreasonable, arbitrary, invalid or void. (7) Incor oration of Pro osals. The Grantee, by the acceptance of any ranchise awarded hereunder, agrees that the matters contained In the Grantee's application for franchise and as stated in oral presentation, except as inconsistent with the FCC Rules and Regulations, law or ordinance, shall be incorporated Into the franchise as though set out verbatim. 36.12 TERMINATION OF FRANCHISE. (1) Grounds for Revocation. The City reserves the right to revoke any franchise and rescind—Ki rights and privileges associated with the franchise in the following circumstances: (a) If the Grantee should default in the performance of any of It obligations under the franchise, and fails to cure the default within thirty (30) days after receipt of written notice of the default from the City. (b) If the Grantee should fail to provide or maintain in full force and effect, the performance bond and liability and indemnification coverages as required in Sections 36.17 and 38,16, respectively. (c) If a petition is filed by or against the Grantee under the Bankruptcy Act, or any other insolvency or creditors' rights law, State or Federal, and the Grantee shall fail to have it dismissed. (d) If a receiver, trustee or liquidator of the Grantee is applied for or appointed for all or part of its assets, (e) If the Grantee makes an assignment for the benefit of creditors. (f) If any court of competent jurisdiction, the FCC, or any State regulatory body by rules, decision, or other action determines that any material provision of the franchise documents, including this ordinance, is invalid or unenforceable. (g) If the Grantee should violate any orders or ruling of any regulatory body having jurisdiction over the Grantee unless the Grantee 36-17 dIG201 ILIdf.D BY JORM MICRQLAB .-r,u; ,L•L„ 15 JURM MILROLAui , LUI,;' r,w ,J., ,,,., Sec. 38.12 (1) (h) BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE is lawfully contesting the legality or applicability of such order or ruling. (h) If the Grantee fails to receive the necessary FCC or State certification unless such cause is directly attributable to an action or condition imposed by the City. (2) Procedure Prior to Revoca[lon. Upon the occurrences of any of the events anumerated In Subsection (1) of this section, the Common Council may, after hearing, upon thirty (30) days written notice to the Grantee citing the reasons alleged to constitute cause for revocation, set a reasonable time in which the Grantee must remedy the cause. If, during the thirty (30) day period, the cause shall be cured to the satisfaction of the City, the City may declare the notice to be null and void. If the Grantee fails to remedy the cause within the time specified, the Council may revoke the franchise. In any event, before a franchise may be terminated, the Grantee must be provided with an opportunity to be heard before the Common Council. (3) Purchase of System by Cid. If the City determines not to reissue the franchise or reasons other than a material breach of the franchise or reasons unrelated to the performance of the franchise holder or upon receipt of an application for assignment of the franchise, or upon change of defacto control, the Grantee shall first offer the Broadband Telecommunications Network for sale to the City at a fair and just market value, which value shall include the fair market value of the system as a going concern including the franchise itself and the rights and privileges granted by the City. When a franchise is revoked pursuant to this auction or expires and is not renewed because of a material breach of the franchise, the Grantee shall first offer the Broadband 'ralecommunIcations Network for sale to the City at a fair and lust market value, which value shall not include any value for the franchise -tself or for any of the rights or privileges granted by the City. In the event the determination of fair market value cannot be negotiated or determined, said value shall be determined by an Impartial arbitration procedure pursuant to Chapter 288, Wisconsin Statutes, wherein the Grantee and the City shall each choose an arbitrator and the arbitrators chosen shall choose the third and the valuation determined by said arbitrators shall be considered the fair market value at which the system will be offered to the City. The determination of the value of the system shall be decreased by the amount of any damages sustained by the City In connection with revocation or expiration, including without limitation, payment made by the City to another person or entity to operate the Broadband Telecommunications Network for a temporary period after revocation. The cost of the arbitration procedure shall be shared equally by the City and Grantee. The City shall have ninety (80) days to exercise the right of first refusal to purchase the Network, said ninety (80) days commencing on the day the fair market value of the system is determined either through negotiation or the arbitration procedure. If the City does not exercise its option to purchase, and the Network is not sold to another operation who has obtained a franchise from the City in a reasonable period of time, the Grantee, upon request by the City, shall promptly remove all its plant, structures and equipment; provided, however, that in the event the City deteYmines not to exercise Its right of first refusal it shall not unreasonably refuse to renew or grant a cable television franchise during a reasonable interim period. While 38-18 :1106111u411) sr DORM MICROLAEI I f ,Aa . I ,IC1"�I' ,.., %j; IL,%o BY JOHM III LkOLAD BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE LLUr1,< ii,tPlw 16L .1� Sec. 36.]2(4) transfer of the system anti franchise is being negotiated, arranged or ordered the Grantee may be required to continue service to the public unless for reasons beyond the control of the Grantee said operation will be economically unfeasible to the Grantee. (4) Restoration of Pro art . In removing its plant, structures and equipment, t e Nantes s a re i at Its own expense, any excavation that shall be made by it and shall leave all public ways and places in as good condition as that prevailing prior to the company's removal of its equipment and appliances, without affecting the electric or telephone cables, wires, or attachments. The City shall inspect and approve the condition of the public ways and public planes and cables, wires, attachments and poles after removal. Liability Insurance and indemnity provided in Section 36.16 and the performance bond in Section 38.17 shall continue in full force and effect during the period of removal. (5) Restoration b Cit Reimbursement of Coate. In the event of a failure by the Grantee to camp ete any work requ red by Subsection (4) above or any work required by City law or ordinance within the time established and to the satisfaction of the City, the City may cause such work to be done and the Grantee shall reimburse the City the costs thereof within thirty (30) days after receipt of an itemized list of such costs or the City may recover such costs as provided in Section 36.17 (2) . (6) Lesser Sanctions. Nothing shall prohibit the City, in its rules and regu at one, Nom imposing lesser sanctions or censures than revocation for violations of provisions of this ordinance including the shortening of the franchise period for substantial and repeated violations. (7)Expiration; Extended Operation. Upon the expiration of a franchise, I CT may, may, y resolution,ts own motion or request of the Grantee, require the Grantee to operate the franchise for an extended period of time not to exceed six (6) months from the date of any such resolution. All provisions of the franchise shall continue to apply to operations during an extension period, The City shall serve written notice at the Grantee's business office of intent to extend under this section at least thirty (30) days prior to expiration of the original franchise or any extensions thereof, 36.13 REGULATORY JURISDICTION AND PROCEDURES. (1) Continuin Re ulator Jurisdiction. The City shall have continuing regu story Jure ct on and supervision over the operation of any franchise granted hereunder and may from time to time adopt such reasonable rules and regulations as It may deem necessary for the conduct of the business contemplated thei sunder. (2) Broadband Telecommunlcatlons Re ulator Board. The continuing regu story Jurisdiction o the City aha a exercised by a City department and/or agency and/or through a Broadband Telecommunications Regulatory Board, that the City may establish. The Board, department or agency established or appointed to exercise the City's continuing regulatory Jurisdiction shell have the following responsibilities and duties and such other responsibilities and duties that the Common Council may assign to It: (a) Resolving disputes or disagreements between subscribers and the Grantee after Investigation, should the subscriber and the Granton not first be able to resolve their dispute or disagreement, Said (Incisions or findings may be appealed, as set forth in Section 36.13(3), 36-18 ?IIf.IIUi ILII[!) BY JORM MICROLA6 in,.01 r.l, :.uIiL-�!u BY JUI(t'11.11LkULAu LLu/,« i(t,rw, „" Ser.. 36.13(2) (b) BROADBAND 'TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE (b) Reviewing and auditing all reports and filings submitted to the City as required hereunder and such other correspondence as may be submitted to the City concerning the operation of the Broadband Telecommunications Network. Review the rules and regulations set by the Grantee under the provisions of Section 36.08 herein. (c) Assuring that all tariffs, rates and rules pertinent to the operation of the Broadband Telecommunications Network in the City of Madison are made available for inspection by the public at reasonable hours and upon reasonable request. (d) Conferring and coordinating with the Grantee on the interconnection of the City's Broadband Telecommunications Network with other similar networks. (e) Reviewing rates and recommending any rate changes to the Common Council as provided in Section 36.18 of this ordinance, (f) Allocating funds it deems necessary to assist production and programming on the public access channels. (3) uulletor Procedures. Va Hroa anTelecommunications Regulatory Board shall first consider any inquiry or proceeding requiring Common Council action to be taken In regard to the Broadband Telecommunications Network or franchise, whether upon application or request by the Grantee or any other party or on its own motion and shall submit such consideration, together with the Board's recommendation, to the Common Council within sixty (60) days of the receipt of such request unless such time shall be extended by agreement between the Board and the requesting party. Any action by the Common Council on any Board recommendation shall be taken only after thirty (30) days notice of said proposed action, inquiry, or proceeding Is published in the official newspaper having general circulation and a copy of said notice Is served upon the Grantee. The Grantee shall have an opportunity to respond at the hearing and/or In writing. Members of the public shall have an opportunity to respond or comment In writing on the proposed action and appear at said proceeding or hearing, however, such hearing or proceeding shall be set no later than ninety (90) days after notice to the Grantee and the Common Council shall act upon this proceeding within one hundred eighty (160) clays of the notice of hearing unless such time Is extended by agreement between the City and the Grantee. (h) The public notice required by this section shall state clearly the action or proposed anion to be taken, the time provided for response, Including response by the public, the parson or persona In authority to whom such responses shall be addressed and such other procedures as may be specified by the Common Council, If a hearing 1s to be held, the public notice shall give the date, location and time of such hearing. The Grantee Is a necessary party to any hearing conducted in regard to its operation. (4) Failure to Enforce Provisions. The Grantee shall not be excused from complying with any of the terms an con itions of the franchise by any failure of the City upon one or more occasions to insist upon or to seek compliance with any such terms or conditions. (5) Contravention of Provisions. The cost of any successful litigation incurred y the City to on orce prov sfons of this ordinance or of the franchise ordinance, 36 - 20 II CROI I L I IFI1 IIY JORM MICR46LAE3 ;L.'hu by JURP1 t41CkULAii BROADBAND TELECONIMLIN ICA '1'IUIJS FRANCHISE ENABLING ORDINANCE i,LJi.,` "Hii�., Sec. 36.14 or in rolation to it franchise shall bu ruimburued to the City by the Grantee. Such costs shall Include filing fees, costs of depositions, discovery, and oxpert witnesses, all other expenses of suit, and e reasonable attorney's fee. 36.14 REPORTS AND RECORDS OF THE GRANTEE. (1) Annual Financial ,11%or�a Required. Thu grantee shall file annually w th t e City C or k odor Man Eras (3) months after the end of his fiscal year during which Ice accepted a franchise hereunder and within three (3) months after the and of each subsequent fiscal year, two (2) copies of: (a) The report to his stockholders; (b) An income statement identifying revenues, expenses and Income applicable to his operations under said franchise during the fiscal year or fraction thereof and; (c) A listing of his properties devoted to network operations together with an itemization of his investment in each of such properties on the basis of original cost, lase depreciation. These reports shall include a balance sheet, listing of substantial liabilities and financing arrangements and such other reasonable information as the City may request, and shall be certified by a Certified Public Accountant. (2) Annual Facilities Retort Required. The Grantee shall file annually wit 1 the C ty C er c not later than throe (3) months after the and of his fiscal your during which ho accepted it franchise hereunder and within three (3) months after the and of ouch subsequent fiscal year, two (2) copies of a total facilities report setting forth the total physical miles of plant Installed or In operation during the fiscal year and a map showing the location of sante. (3) Annual Service Record Report Required. The Grantee shall, If requested y the City, file annus y w t t o ty , ark not later than three (3) months after the and of his fiscal year during which he accepted a, franchise hereunder and within three (3) months after the end of each subsequent fiscal year, two (2) copies of a list of all trouble complaints and network "downtime" received or experienced during the fiscal year. All such submitted data shall also include complaint disposition and response time. For the purposes of this provision, certified copies of a "complaint" logbook reflecting all such incidents will suffice.. Also, if requested by the City, uncertified additions to the annual complaint log shall be supplied in two (2) copies to the City at Intervals of not more than ninety (90) days following the filing of the annual report. (4) Annual Measurements Report Required. The Grantee shall file annually with the City er not start en t reo (3) months after the and of his fiscal year during which he accepted a franchise hereunder and within three (3) months after the and of each subsequent fiscal year two (2) copies of a report on the network's technical measurements, as sot forth In Section 36,24 herein. (5) Annual Operations Reports Re uired. The Grantee shall file annually with t e City C er not "ter t entree (3) months after the and of his fiscal year during which he accepted a franchise hereunder and within three (3) months aftor the end of each subsequent fiscal yeer two (2) copies of the following supplemental information: 36-21 61KR111 II.IdtO BY JORM MICROLAB 61:ut01 :L'h.L, by jURM I.1ICkOLAii Sec. 36.14(5)(a) (6) ( 7 1 (8) (9) 110) I,LJAIrt BROADBAND 'TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE (a) If a nonpublic corporation, a list of all current shareholders and bondholders both of record or beneficial. If a public corporation, a list of all shareholders who Individually or as a concerted group hold five percent (5%) or more of the voting stork of the corporation. (b) A current list of all Grantee's officers and directors including addresses and telephone numbers. (c) Copies of all pertinent agreements or contracts, Including pole -use agreements, entered into by the Grantee during the fiscal year in the conduct of its business under a franchise granted hereunder. (d) The names and both business and residential addressee and phone numbers of the Broadband Telecommunications Network resident manager and engineer. (a) Two (2) copies of all typos of subscriber agreements. Copies of individual subscribers' agreements Bra not to be filed with the City. (f) Copies of all rules and regulations promulgated by the Grantee during the fiscal year in the conduct of his business In accordance with the provisions of Section 36.08 hereunder. (g) A copy of the annual reports) of the parent firm (a) which own an interest of more than five percent (5%) or more of the voting stock of the Grantee; and such other annual report(s) of subsidiaries or divisions of the parent firm (a) as the City deems necessary. nfffoI(MU n r Certificate of Com liance. The Grantee shall give formal cs to t e City that t s seeking a Certificate of Compliance from the Federnl Communications Commisalon. Within five (5) calendar days upon filing such a request with the Federal Communications Commission, the Grantee shell file two (2) copies of Its application for cortlflcatlon with the City Clerk. Public Avallabili!X_of Boports. Such reports as required under this ordinance must be available to the public In the office of the City Clerk, during normal business hours. Subscribers shall be notified of the availability of ouch reports in ways approved by the Broadband Telecommunications Regulatory Board. Correspondence. The Grantee shall simultaneously file with the City Clerk a copy oTeach petition, application and communications transmitted by the Grantee to, or received by the Grantee from, any Federal, State or other regulatory commissions or agencies having competent Jurisdiction to regulate and pertaining to the operations of any Broadband Telecommunications Network authorized hereunder. Clty 'a Access to Records. (a) TF - e C ty reserves the right during the life of any franchise granted hereunder to have access at all normal business hours and upon the giving of reasonable notice, to the Grantee's contracts, engineering plane, accounting, financial data, and eervice records relating to the property and the operations of the Grantee and to all other records •required to be kept hereunder. Nothing contained herein shall prevent the Grantee from enjoining the City from reviewing documents relating to proprietary Interests not related to its operation under this ordinance in the City's regulatory program. (b) Records of subscriber lists and statistical data not otherwise required by this ordinance shall be made available only upon a ruling by a judge of competent jurisdiction that such records are material to the City's regulatory program. Subscriber A reament. The form of Grimm's agreements with Its subscribers shall be sub ect tc t e approvnl of the Common Council and two (2) copies of all types of agronmanto used by the Grantee shall be filed and maintained with the City Clerk. 36 - 22 ;aiotni niatn nv DORM MICR4d)LAB I M . ^, c +101'P r.,;�,.,Lj, ,L1!, by JURM t-ULRULAb 1, L'WA I< k;;r. J� „SIJ "t.., BROADBAND TELECOMMUNICATIONS Sec. 36.15 FRANCHISE ENABLING ORDINANCE 38.15 FRANCHISE PAYMENT. (1) F1119Fee. Applicants for a franchise hereunder shall pay n nonrefundable (ifing Tee to the City of two hundred fifty dollars ($250) which sum shall be duo and payable concurrently with the request for the proposal information. (2) Franchising Compensation. Grantees of a franchise hereunder shall prov de an Initial payment to the City In an amount equal to the direct costs of granting the franchise not to exceed ten thousand dollars ($10,000) , which sum shall be due and payable concurrently with the Grantee's acceptance of the franchise, to offset the City's costs in the franchise awarding process. (3) Annual Franchise Payment. Grantees of a franchise hereunder shall pay to the City an annual loe in an amount equal to three percent (3%) of the "annual gross subscriber revenues", Be defined herein, in lieu of all other City's permits and fees, to be utilized by the City to offset its regulatory and administrative coats hereunder. This payment shall be in addition to any other payment owed to the City by the Grantee and shall not be construed as payment in lieu of municipal property taxes or other State, County, or local taxes. (4) Method of Com utetion; Interest. T a es taxes or other taxes levied directly on a per -subscription basis and colloctsd by the Grantee shall be deducted from the local annual gross subscriber rovenuaa before computation of sums due the City is made. Payments due the City under the provisions of Subsection (3) above shall be computed annually as of December 31 for the preceding year and shall be paid gimulta- neously with the filing of annual reports required in Section 36,14 at the office of the City Clark during his regular business hours. The payment period shall commence as of the effective date of the franchise. The City shall be furnished a statement with each payment, by a Certified Public Accountant, reflecting the total amounts of annual gross subscriber revenues, and the above charges, deductions and computations, for the annual payment period covered by the payment. (b) In the event that any payment is not made as required, interest on the amount due, as determined from the annual groes subscriber revenues as computed by a Certified Public Accountant, shall accrue from the data of the required submittal at an annual rate of twelve percent (12%) . The percentages designated In this section may be amended no more than once each year by the Common Council, consistent with increased costa for municipal facilities and supervision and applicable rules of other regulatory agencies. (5) RI hie of RecOm utadon. No acceptance of any payment by the City s a e construe as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable as a franchise fee under this ordinance or for the performance of any other obligation of the Grantee. 36 23 -- nir.iwfWILDDv JORM MICRbLAR P�1,..xui ,L:uJ by JURh I-1 ILkULAb Sec. 36.16 I, L JN,< i<,,Y',J� ,tiiU uL.. 13ROADBAND TELECOMMUNICATIONS FRANCHISE. ENABLING ORDINANCE 36.16 LIABILITY AND INDEIVINIFICA'110N. (1) Indemnification_ of Franchise. It shall be expressly understood and agreed by and between the City and tiny Grantee hereunder that the Grantee shall nave the City harmless from all lose sustained by the City on account of any suit, judgment, execution, claim or demand which the City may legally be required to pay as a result of the enactment of this ordinance and the award of a franchise thereunder, except as such suit, judgment, execution, claim or demand may arise from the process or action of selection of a Grantee or Grantees for award of a franchise as provided heroin. (2) Indemnification of City Franchise Operation. It shall be expressly understood and agreed by and between the City and any Grantee hereunder that the Grantee shall save, the City and its agents and employees harmless from and against all claims, damages, losses, and expenses, including attorney's fees sustained by the City on account of any suit, judgment, execution, claim or demand whatsoever arising out of but not limited to copyright infringements and all other damages arising out of the installation, operation or maintenance of the Broadband Telecommunications Network authorized herein, whether or not any act or omission complainer) of is authorized, allowed or prohibited by this ordinance and any franchise granted hereunder. This provision shall not apply to acts of the City, its agents or employees. (3) Reimbursement of Costs. The Grantee shall pay and by his nrceptance of any f rant ise gram hereunder agrees that it will pay all expenses Incurred by ilio City in defending itself with regard to all damages and penalties mentioned in Subsnctions (1) and (2) above, except as such expenses may arise from the process (es above) . These expenses shall include all out-of-pocket expenses, such as consultants or attorney fees, and shall also include the reasonable value of any servicesrendered by the City Attorney or his staff or any other employee of the City. (4) Public Liabillt Insurance. The Grantee shall maintain and by his acceptance o any rant se granted hereunder agrees that he will maintain throughout the term of the franchise, any extensions thereto, or as required in Section 36.12(4) herein, a general comprehensive liability insurance policy naming as the additional insured the City, Its officers, boards, commissions, agents and employees, in a company approved by the City Risk Manager and in a form satisfactory to the City Risk Manager, protecting the City and all persons against liability for loss or damage for personal injury, death or property damage, occasioned by the operations of Grantee under any franchise granted hereunder, in the amounts of: (a) Five hundred thousand dollars ($500,000) for bodily injury or death to any one person, within the limit, however, of one million dollars ($1,000,000) for bodily injury or death resulting from any one accident, and (b) Five hundred thousand dollars ($500,000) for property damage resulting from any one accident. (5) Notice of Cancellation or Reduction of Coverage. The Insurance poll ci-oa m�e above shall conte n an endorsement stating that the policies are extended to cover the liability assumed by the Grantee 36 - 24 }IICR01 ILI410 By JORM MICROLAS ,nn •t;LIWI iL14Lu BY J01M 1.11CRULAB k11tOADBANU FRANCHISE (6) (7) 'I'k?I,LiCUtdMI RJl(7p.'ly(i:Jb ENABLING ORDINANCE LLUAr< kiir'id, AfiU UL.. •. Soc. 36.16(61 the under the thnruboy iln+dur;lr+ied+andxxglreedlthat thistpolicfoyllowinp, Cndnr' may not bo canceR(.d aur the amount of coverage thereni ru laced until thirty (30) dt+Ys t+ftor rocoipt by tile e City Risk Managnr by registered mail of two (2) cop a written notice of such intent to cancel or reduce the coverage.oliries Evidence of in, Filed With Cit Risk Manager. All pnf of insuranc(:,fr i+ms('(shslllhn filoid maintained wievidth ence the City ++,ir' of required I Risk Manager during the term of any franchise granted heroun er, or any renewal thereof. Nu Waiv,:r of Perfonnanre Bond. City purs uant ualnt hereto, nor lany demetrdina l,,,a nor any Ine+irtnrn ;'crnpted � the City { be cong rued p+ncovore(I by Chethe til t Grautuou rdor, shall llabilitytof the tGrantee efundlt++1 rforo vin er any franchise Issued hereunder or for damages, either to the full amount of the bond or otherwise. ;10.17 BONDS . l r+ (1) Proposal yo_nd, teach applicant for a franchise hereunder shall suMmt a proposal bond in a form acceptable to the City Risk ManagerOor Insuranu certified check; nrI b to Utth+ that trisa o eho City i3r of n anamount mbf Deposit twenty" Cnrporation. payable five thousand dollars ($25,000). taill , and by his acceptance (2) Performance Bond. The h�7� teo s all nleg nthat he will maintain through o any ranchise q f or the term of the franchise., or as telthful performanceextension ny renewal or bond runnings required in Section 30.12(4) Manager. in the penal to the Clty, with at least two on gd end sufficient sureties or other financial guaranties approved by the City Risk Manag sura total of ono million dollars ($1,000,000) conditioned upon the with eny law, nrdintuu:" faithful pnrfermance of the Grantee and upon the further condition ihi+I in too event the Grantne shall fail to comply or rogulation governing the franchise, theca shall be recoverablany e al damegaand lot;,, vra) furod byfront +ills City pas and result includingof the uthe full amount of rely compensation, indemnification, or cost of removal nr ab, of any property of the G' full plus a reasonable tollowan+:" for attorney's fees and costs, up to the full amount of the bond. Thr: bond shall remain the, following endorsement: It is hereby understood and agreed that this bond may not e canclled nor the on not untill thirtye(30) days after treceipt by tile stated tile City Risk Manager of Madison, 14isconsln by registered mail of two (2) copies of a written notice of such intent to cancel or not renew. applicant fall or refuse to accept (3) Forfeit of Pro csal Bond. Should the a —ane so rereun er or fail or refuse to furnish the Performance Bond as set forth herein within thirty (30) days after written notification of the toward of a h•snchlse by the City, said applicant will ho r.orn 11tia�t' l In have nbnndoouul ilio proposal In(I the Clty shall enforce the p P Uond in acrordi+nee with its loans or retain the proceads of the rertifie,l 0loc t . :16-25 Ia1f.Rn1 ILFlra 9Y DORM MICROLA13 rI PAp n.tr..,.S •.+rel H(`. Fi i,.KlL IL.,4LU BY JURM 1•i1CkULA6 Sec. 36.17(4) I.LWir< kAr"Ji A�IU BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE•. (4) Return of Pro Iosal Itund. piupuaul lioncis or certified chocks received ------ -- Fn lieu theieof from appllcamts whose proposals are not accepted by the City shall bo returned to the applicant as Boon as the proposnl is rejected. (5) Bond Evidence to I)e Filed With City . 'I,wo (2) copies of all bonds ororcertMid copies llleroof Zif wrltton evidence of payment of required premium, shall be filed and maintained with the City Risk Manager during the term of any franchise granted hereunder, or any renewal thereof. 36.16 FEES, RACES AND CfIARG1iS. (1) Charges for Servicl:s. All tbo following chargee for services shall e su erl to Common t.uun;11 approval, in accordance with the schedule Of charges contained in tho Grantoa's application for franchise, which schedule is Incorporated barein by roforenco, and any modifications to such schodulo that may result from it review requested by the City on its own motion or at the request of the Grantee. The chargee shall be in actor dance, with the requirements set forth in Subdivisions (a) through (r.l of this Subsection. (a) Basic Services Charges. The Grantee may metro a charge to subscribria, private or commercial, for instillation and connection and reconnection to its Broadband Telecommunications Network and a fixed monthly charge for "basic aervlce" within the moaning of Section 36.02 of this ordinance. (b) Buried Service Chaff, hi thu event thus a subscriber zoquout, ami tried soivlcr, drop to his resddonco, tho Grantee shall bury such drop upon the payment of such fea (s) that havo boon approved by the, Common (:ouncll. (c) Unusual Connections Charges. The Grantee may make a charge rosu-bscrlbers To—r nl—Bt➢aUon and connection to Its network in addition to those rhargos sot forth In Subdivision (n) above, where unusual circumstancos exist, such as remote or relatively inaccessible subscriber locations, or for an antenna switching devico. 121 Notification of Chargan. The Grautao may establish charges for its Fiervicas not specifted in Subsoction (1) above, however, all such chargss, Including but not limited to additional service, leased channel, disrrote channol, production and advertising rates, and the charge to all uBers of the access channids for reasonable production and origination costs, shall be.. made public, and two (2) copies of the schedule of charges, h5 originhlly established and thereafter modified, shall be filed with the City Clerk. (3) All Rates to be Fair and Reasonable. All chargee set by the Grantee or services shall be fair and reasonable and calculated to offset all necessary costs for provision of the service, including a fair rate of return on its investment devoted thereto under officlont and occnomlr;al management. (a) No Considerations Beyond Schedule. The Grantee shall recelve no cons ora on �tatsonvaoT or in connection with a service to Its subscribors other than what may have been filed with and/or approved by the City In accordunce with this section. .i6 26 B1amI leant By JORM MICROLAei NNV? . ,.r": :'101':1°. t•;;,,,J1 1L':Lu 11 JUKM MICkOLAu HIiIMAUISANU 'I'I:LE(A )MMIMICA fIWI.}, FRANCHISE ENABLING ORDINANCE IL OilI< Kir'I J- ,IA0 vL Soc. 36.16(;1) (b) (b) Da welts on Advuncu I'uplaauta Lu be Approved. The Grantee shall rete ve riip�t opo�t, iidvonce payment or penalty from any subscriber or potential subscriber other than those ostabllshed In the schedulo of chargas provlously filed with and/or approved by the Common Council (r.) Purchaee of Convertor or Switch. In the event that a set convertor or coaxial switch or of ur nppurtonant device Is required to permit subsrr1her6 to tocolvo "full network service", the Grantee shall givo the subscriber the optiun of purchasing the convertor at a reasonable cost at the time of Initial Installation thereof, or of purchasing said convertor switch or ether appurtenant device at the then prevailing local installment plan interest rate. The Grantee hereby agrees to allow the subscriber to provide a convertor, switch, or other appurtnnant device at Its subscriber terminal, provided that such device meets with the approval of the Granteo. Such approval shall not be withhold If it Is shown that such device does not Interfere with the operation of the Broadband Telecommunications Network. If the subscriber elects not to purchase or provide said convertor, switch or other appurte- nant device, the Grantee may make an additional charge for the rental of such convertor, switch or other appurtenant device providing that the additional charge Is In accordance with the schedule of charges container( in the Grnntoe's application for a franchise hereunder or hereafter filed with and approved by the City. (d) Subscriber Refunds, if any subscriber of the Grantee of lase than thirtydays torminatos servico duo to: 1. Granton's failure to render service to such subscriber of a type and quality provided for herein; 2. If service to a subscriber is terminated by the Grantee without good cause; or 3. If the Grantee ceasos to operate the Broadband Telecommunications Network authorized herein for any reason except termination or expiration of a franchise granted hereunder; the Grantee shall refund to such subscriber an amount equal to the Installation and connection charge paid by such subscriber In eccordanro with the then existing schedule of charges. Under the terms of this subsection the Grantee shall not be required to refund the monthly charge except as he may express a willingness to do so. (e) Transfer Within Service Area. The Grantee, in the event a valid subscriber shall (peas er hie residence within the service area of the Grantee, shall reconnect such subscriber's new residence without imposition of the installation charge. The Grantee of a franehlso awarded hereunder. In the event a nonsubscrlber transfers his residence Into a vacated promisee previously connected or prewired to the network, may charge such nonsuhscriber all applicable fees an set forth In this anctlon herein If such nonsubscrlber requests connection to the network, Acca nee of 'It" Authority to Regulate Rates. The Grantee shall ngroo, and 1te acco tanto oma franchise, specifically agrees to be subject to the City, or other regulatory bodies, having competent jurisdiction to Rx just, reasonable and compensatory rates. 36 27 F11CROI IL11I.D By JORM MICRmLAB '4:utifl ;L.;� J uY JOW1 611LkOLNu LLJAH 1(Al'J� .�;'J Sur.. 36.10(5) BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE (5) Fiatea Sub act to Other Re ulellons. The Grantee 1n submitting its request o(r approve o o a raise or any aubeoquent rates shall do eo for all services to be performed to er for subscribers described In Subsection (1) . If FCC Rules and Regulations, or any other applicable laws or regulations, shall subsequently determine that the City of Madison has jurisdiction over other services or service to be offered or performed, said rates shell be subject to approval by the City at that time. (e) se or renewal therof Reduction018 of Fees, the Grantee receives refunds, oriif the coat of operation to the Grantee is reduced as a result of an order of any regulatory body having competent jursidlction; the Grantee shall pass on to its subscribers on a prorated basis any such savings or reduced costa on a basis to be determined by the Common Council. (7) Itate Chan a Procedures. a or an an ap re�increase inllateeese rates ..Grantee rcharges until tweshall notnty-fourl(24) months have expired from the time the Grantee has been determined to have commenced operation or from date franchise is granted, whichever is later, except to seek relief from the imposition of any Federal, State or local taxes, copyright or other legally imposed fees not contemplated In the original rate determinations. (b) Limitation on Application for increase 1n Rates. The Grantee shall not a more than one app cat on or an ncrones In fees, rates or charges during any calendar year except to seek relief from the Imposition of Federal, State or local taxes, copyrights or other legally imposed fees not comtemplated in the most recent rate determination, (r.) Review of Rates. The Broadband Telecommunications Regulatory BoarU may review the Grantee's schedule of fees, rates or charges upon application by the Grantee as herein provided, or at any time on Its own motion. The Regulatory Board shall submit such schedule and any contemplated modifications thereof, together with its recommends - tions, to the Common Council. The Common Council may reduce, or increase such fees, rates or charges by a resolution adopted for the purpose, and no change In the Grantee's schedule of fees, rates or chargee shall be effective without the prior action of the Regulatory Board and the Common Council as exprom-ed in ouch a resolution. No such resolution shall be adopted without prior public notice and opportunity for all Interested members of the public, including the Grantee, to be heard, subject to the procedures set forth in Section 38.13(3) hereof. No change in rates shall take affect until thirty (30) days after the approval of the rates by the Common Council. (d) Doctunentatton of Re nest for Increase. Any Increase requests, in a tlon to of er ectorodescriboa indescribe this section, shall be supported by a showing of increased caste for the existing services or proposed services, and shall be filed in two (2) copies with the City Clerk. If a Grantee requests a change. It shall present in detail in writing the statistical basis, in addition to other requirements as set out in this section, for the proposed fee change at least ninety (00) days prior to the proposed effective date. 30-28 JORM MICR6LA13 F -I. ,0011L:4iJ by JUHh1 t -1I CRULAb BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE I.LJArt <AV -IJ.. A:iU vL Sec. 38.18(7)(x) (a) Records to be Made Available. In addition, for the purpose of determining the reasons ass of Grantee fees, rates, or charges, all such information, in accordance with the provisions of Section 36.14 (8) , shall be made available to the City. (f) Notification of Chanes In Re ulato Fees. The Grantee shall provide written nota ca on to _eCommon Council of any changes received in regulatory fees payable by it to any other agency having regulatory jurisdiction over the Grantee. 36.10 EDUCATION AND GOVERNMENTAL CONNECTION TO THE BROADBAND COMMUNI- CATIONS NETWORK. The Grantee shall provide upon request within the City one connection and monthly service for "basic service" to such public, parochial and nonprofit private schools, City buildings and agency locations as the City may hereafter designate, provided that such designated locations ere within three hundred (300) feet of any network cable route. The rates for this installation and monthly service shall be designated by the Grantee in its proposal. The Grantee may charge for any excess footage on the basis of time and material for any such locations beyond the three hundred (300) foot limitation if such connection is designated by the City. The City reserves the right at its expense to extend service to as many areae within such schools, buildings and agencies as it deems desirable without payment of any additional fee to Grantee. All such extensions, however, shall be accomplished in such a way so as not to interfere with the operation of the Broadband Telecommunica- tions Network. 36.20 EXTENSION OF NETWORK. (1) Network Extension AcrossCit Boundaries. Before any subscriber located in a community other than the C ty of Madison is allowed to connect to the Broadband Telecommunications Network, the Grantee shall be capable of furnishing service to a "substantially completed" system for Madison residents unless a waiver of this section has been granted by the Common Council of Madison. A written waiver request must be made thirty (30) days before, requesting an appearance before the Common Council. Such waiver request shall clearly state the potential impact of such occurrence on the operations and finances of the Grantee, the coats of such an extension and who is to bear such costa, and any anticipated Interconnection with such institutions, se defined In Section 38,18, within the area to be served by such network extension, If permission is granted by other Jurisdictions the Grantee shall be required to extend the network or cooperate with other Grantees in those Jurisdictions to provide service to institutions listed in Section 36.22 of this ordinance. (2) Extension of Network Within C1 Boundaries. a) Con tions o Re ufred Extens on. a Grantee shall at Its expense extend is Broadband a ecommunications Network so as to provide full network service to all residents of: 36 - 28 _. :11Caoi nwro BY JORM MICROLAB F.I,L."oto by JORI'11-11 LkULA" Sec. 36.20(2)(a)1. i LUAI; MAI 10� ";"' ..L: TELECOMMUNICATIONS BROADBAND FRANCHISE ENABLING ORDINANCE 1. Newly annexed areas of the City not then served by a Broadband Telecommunications Network, or 2. New housing areas developed withinmitts and three hundred limits, or S. Any resident dwelling within the City (300) feet of existing network. Grantee shall file with the Clark (b) Extension P al1cx. The e o its extension policy for potential subscribers two cop dwelling beyond three hundred (300) feet from the nearest point of the be approved by the Citynetwork but in andthe City e Granteets. shalluch not policy must u app permitted make, or refuse to make, any extension except as p by this approved policy. 36.21 TIME FOR PERFORMANCE. (1) Permit A lication. It is hereby deemed oeeible to public citizens within e system a extends as rapidly of as the effective date of a franchise the City. Within ninety(60) day ro date authorities granted hereunder, the Grantee shall applications necessith the ary to comply and utilities all initial papers and Ute a 1lcetioa for franchise with the terms of this ordinance, including pP and any additions or amendments thereto and shall thereafter dill gently rr pursue all such applications • the tee has diligently d lig nth rPneceseary the acquisition of necessary pole attachment coneasements, and where such necessary contracts have not been executed or easements obtained after a reasonable period mefetance as e rmined m insure by the City, the City may at its discretion, provide the extension of the system to all citizens . (2) Commencement of Construction. cettiSc one onhundred the G antee shall initiate ys o t e e act ve ate o construction and installation of the Broadband Telecommunications Network. Such construction and installation shall be pursued with reasonable diligence. ty_ (3) Commencement of O oration. Within twen four (24) months o e e act ve ate o CC car carton, the Grantee shell "commnae operation" within the meaning set forth in Section 96.02 of this orde Y ��) months (4) Substantial Coro lotion of Ccert cai on, the Grantee shaII have "eubatan- o t so ec ve ate o tially completed" construction of the "se vice area" within the meaning set forth in Section 36.02 of this ordinance. (5) Provision of Basicca on,Ce a Grantoe shaall(have placed in use sufficient to i ce811) month@ of the effective percent dteMbution facilltiee so as to offer basic service to one hundred p (1003) of the dwelling units in the service area, to which access is legally and reasonably available. (6) Dela a end Extension of Tgima• The cod faith toepertorm any in its discretion required e me or rntee, act n n g hereunder. The time for y performance ll be extended or excused, which Grantee demonstrates to the case may be, for an period during to the satisfaction of the Common Council that Grantee is being subjected 36 - 30 ;116401 WILD BY JORM MICROLAB f•li �. 'C'11U by JUkl4 I•IICkULAu BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Sec. 36.21(8)(a) to delay or interruption due to any of the following circumstances if reasonably beyond its control: (a) Necessary utility rearrangements, pole change -outs or obtainment of easement rights (b) Governmental or regulatory restrictions (c) Labor strikes (d) Lock outs (a) War (f) National emergencies (g) Fire (h) Acts of God. 36.22 NETWORK DESCRIPTION. (1) System Bandwidth Capability. The Grantee shall install a "dual cable network", each cable having a minimum initial forward bandwidth capability from 50 to 270 MHz and a minimum reverse bandwidth capability of 5 to 30 MHz. Whenever a reverse or feedback circuit is routed from a subscriber's promises, it shall be connected so as to permit subscriber notification and subscriber controlled deactivation. At the option of the Grantee, the second cable may be a "shadow cable". As total bidirectional capacity is of a great deal of interest to the City, applicants for a franchise hereunder may propose greeter channel capacities and more sophisticated two way capabilities than the minimums set forth herein. However, such proposal shall describe the particular community needs to be served thereby and shall detail, as part of the financial projection and support required In Section 36.10 (19) , the associated costa and revenues. (2) S stem Confi uration. The Grantee shall design and construct the networ n a uconfiguration" with a minimum of four (4) "local distribution centers" and "local distribution system" served in this manner shall be capable of offering "full network service" to all its subscribers. (3) Public Service and Education Discrete Carnia a Ca acl . The Grantee shall design and construct the networ so as to pro a thin the system bandwidth capability specified in Subsection (1) above, a minimum of seven (7) "downstream" and five (5) "upstream" "discrete cable television channels", meeting all applicable specifications set forth for the Broadband Telecommunications Network In Sections 36,21, 38.23 and 36.24 herein. The Grantee shall describe the public and educational services to be provided thereby and shall describe the particular community needs to be served thereby and shall detail, as part of the financial projection and support required in Section 36.10 (13) , the associated costs and revenues. The Grantee shall, if requested by the City, conduct a technical and economic feasibility study of the interconnection, for discrete carriage capability, of the "local distribution systems". The study shall be presented to the City, and in the event that the study shows such interconnection to be feasible, the Grantee shall, if so instructed by the City, accomplish said interconnection. In the event that the study indicates technical feasibility only, the City may elect, but 38-31 MI(JR01 101.0 By JORM MICR6LA6 6C �nUi ,LY;;.0 6Y JUKM h11 LkULAD • LLJil;< rri J� MliLl - ,-.. ,. Sec. 36.22(3) (a) BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE at its sole discretion, to arrange for compensation to be paid to the Grantee, in an amount sufficient to assure an economic "break even" by the Grantee and so order the interconnection. In the event that the study fails to show technical feasibility the Grantee shall have no further responsibility for accomplishing said interconnection until such time as improvements in technology permit such Interconnection. These discrete carriage capabilities shall be provided, in addition to the requirements of Section 36.19, to such locations as are herein or may be designated by the City: (a) The University of Wisconsin, Madison (b) City -County Building, three locations, one being the Council Chambers (c) All public, parochial and nonprofit private schools (d) , The,maln branch of the public library (e) The main office of the Board of Education and (f) Grantee's television facility for program insertion Into the total communications network. Each of the locations above designated shall be interconnected with each other location as they may be established in a common "local distribution system", 36.23 NETWORK TECHNICAL REQUIREMENTS. (1) General Requirements. Each Broadband Telecommunications Network must be so designed, installed and operated as to most the following general requirements: (a) Capable of continuous twenty-four (24) hour dally operation; (b) Capable of operating over an outdoor temperature range of -40 degrees Fahrenheit to +140 degrees Fahrenheit without catastrophic failure or irreversible performance changes over variations in supply voltages from 105 to 130 volts AC; (c) Capable of meeting all specifications set forth herein over an outdoor temperature range of -10 degrees Fahrenheit to +100 degrees Fahrenheit over variations in supply voltages from 105 to 130 volts AC; (d) Operated in such a manner as to avoid causing interference with reception of off -the -air signals by nonsubscribers to the cable system; (e) Designed, installed and operated so as to comply with all applicable rules and regulations promulgated by the Federal Communications Commission; (f) Designed, Installed and operated so as to assure the delivery to all subscribers of standard color and monochrome signals on the FCC -designated Class I cable television channels without noticeable picture degradation or visible evidence of color distortion or other forma of interference directly attributable to the performance of the Broadband Telecommunications Network. (2) Class I Channel Performance Re uirements. The following requirements apply to system performance on the FCC -designated Class I cable television channels as measured at any subscriber terminal with a matched termination: 36 - 32 MICiun ILME 'I By 1 DORM MICR6LA9 frnhr : i. , , "i ,. in 1,;i i By JUHt4 IIILkULAu 'Iwi,it il,l, „i., ""' "L_ BROADBAND TELECOMMUNICATIONS Sec. 36.23 (2) (a) FRANCHISE ENABLING ORDINANCE (a) The signal level as measured at the visual carrier frequency for each cable television channel shall not be lees than 1,000 UV (microvolts) across a 75 ohm terminating impedance. The aural carrier level shall be maintained between 13 and 17 decibels below its associated visual carrier level. (b) The visual carrier signal level on each television channel shall be maintained within: 1. Twelve (12) decibels above its minimum value; and 2. Three (3) decibels of the signal level of any visual carrier within six (6) MHz nominal frequency separation; and 3. Twelve (12) decibels of the visual carrier signal level on any other cable television channel. (c) Broadband Telecommunications Network frequency response as measured at any subscriber terminal shall not vary by more than + two (2) db over the six (6) MHz bandwidth of any VHF television channel or correspon- ding portion of the FM or midband frequency spectrums. (d) The corrected ratio of visual signal level to system noise shall not be lees than forty-two (42) decibels. This requirement is applicable only to the following signals: 1. Each off -air signal carried by a Broadband Telecommunications Network serving subscribers within the Grade B contour for that signal; or 2. Each off -air signal which is first picked up within its Grade B contour; or 3. Each off -air signal which is received by the cable system vie microwave or other similar form of transmission. visual carrier (e) he cable systeim input to any subscon as measured at riber ber terminal shall not not db (as defined by NCTA Standard 002.0267) measured at approximately +70 degrees Fahrenheit. (f) The ratio of visual carrier signal level to the RMS amplitude of any coherent disturbances ouch as intermodulation products, system generated or induced cochannel signals or discrete frequency interferring signals shall not be less than forty-six (46) decibels except for officially assigned offset carriers for which It shall not be less than thirty-six (36) decibels, (g) The terminal isolation between subscribers shall not be Is than twenty ) decibels subscriber shall not be lessisolationt that the than eighteen (S6) decibele of decibels. one (h) The m from BtTelecommunica ions Network Input to any subscriberion as measured over the usable bandwidtth rc db nd terminal shall not exceed three percent (34) . The percent of hum modulation to defined as the ratio expressed in percent of the average level of the detected signal to one-half (i) the indicated peak AC hum. (i) Radiation limits set forth in Parlt 76, Secevision tion 76.806 (a)m shall s in accordance with he(12) of the FCC Rules and Regulations. (3) Standards Modified Where Necessary. Notwithstanding the fact that the networ may e n compliance with all the standards set forth herein, the City may require a higher level of performance in any area to resolve signal quality or interference problems. 36 - 33 ___. airaui ivat.n or DORM MICROLAB , , y,o _ . i , Sec. 38.23(4) ,L.'ILU by JUHIh1 I-0ICkULAD • �c�r..', ri„i ��� ..I✓ „�_ BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE (4) specifications oons or FCCG, r"uBOu esnal Channels to gneted C ase I be ,an mitt c annals shall be submitted by the Grantee to and approved by the City as the use of these channels is implemented. (5) Interconnection With Redistribution S stems. A Grantee shall not nterconnect with any et ut on or re etr button system that does not meet or exceed the technical standards of any system operated under this ordinance. 36.24 PERFORMANCE MEASUREMENTS. (I) General per ormaon of the niu ce criteriatset forth hes. Test r ein shall be in accordancedures used In ce with good engineering practice. The test procedures specified in Subsection (2) of this section are designed as a guide and should be made under conditions which reflect system performance during normal system operations. As there is more than one technically acceptable method for performing many of the measurements, the technique and equipment utilized in each case If different from those set forth below shall be fully described in the annual certificate filed with the City. (2) Measurements Procedures. All measurements shall be made from t o ea en ' o t e Broadband Telecommunications Network to at least three (3) subscriber locations in each "local distribution system" , at least two (2) of which shall be "worst case" locations (system extremities) . Measurements shall be made at 75 ohms with the loss of the set transformer indicated where applicable for each test location. The measurements are to be made as follows: (a) th a calibrated signal general r, variableeattenuat nts may be and aaifrequency selective voltmeter (if an accurately calibrated field strength meter is used for the measurements, its date of calibration shall be indicated on the technical measurement certificate filed with the City) . All television signals except or ALC, AGC, or ASC pilot carriers may be disconnected during this test. With all automatic gain control amplifiers in the section under teat set to their normal operating mode, the signal generator shall be connected to the input of the Broadband Telecommunications Network and set for a CW signal at the desired frequency and at the level normally present at that frequency and location, With the meter and variable attenuator connected in series to the subscriber terminal under test, the signal level shall be measured and recorded. Measurement shall then be made in a similar manner for all video carrier frequencies an the network at the levels normally carried on the network. (b) Network signal-to-noise measurements may be made in accordance with NCTA Standard 005.0869 or with a calibrated signal generator and frequency selective voltmeter connected as described in Subdivision (a) above. The signal generator shall be tuned, in turn, to the visual carrier frequency of each FCC -designated Class I cable television channel and the signal level at the subscriber 36 - 34 T Air"uiivar.::nv DORM MICR(OLAEI ''„,I..i,, by JUktl IdICkULAU ILUAI( lL+' 101 '"L 1L , r BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Sec. 38.24(2)(c) terminal recorded. The motor should then be tuned to a frequency 2.5 MHz above the visual carrier frequency of each channel described above and with the signal generator disabled, the Indicated noise level recorded and corrected by an appropriate factor representing the ratio of 4 MHz to the noise bandwidth of the frequency selective voltmeter. (c) The network cross -modulation measurement shall be performed in accordance with NCTA Standard 002.0287. (d) The amplitude of the discrete frequency interferences within a cable television channel may be determined with a frequency selective voltmeter, calibrated for adequate accuracy. (e) The terminal isolation between any two subscriber terminals may be measured by applying a signal of predetermined amplitude from a signal generator to one terminal in the reverse direction and measuring the amplitude of that signal at the other terminal with a frequency selective voltmeter. (f) The system hum modulation may be measured at each visual carrier frequency on the system using a calibrated signal generator, a detector and an oscilloscope. The signal generator shall be connected, and the level and frequency set at a predetermined mode with all other channels set at their normal levels. With the detector and oscilloscope connected to the subscriber terminal, the average level of the detected signal and the peak -to -peak AC hum will be indicated on the oscilloscope. The percent of hum modulation for this purpose is defined as the ratio, expressed in percent, of the average level of the detected signal to one- half (}) the indicated peak -to -peak AC hum. (g) Radiation measurements shall be made in accordance with the procedures established in Part 78, Section 78.608(b) (1) - (b) (5) of the FCC Rules and Regulations. (3) Additional Tests andIna action. The City reserves the right to: a eq re a one taste at specific terminal locations and (b) Conduct its own inspections of the Broadband Telecommunications Network on its own motion at any time during normal business hours with reasonable advance notice. (4) Re ort of Measurements Combined. To the extent that the report M measurements as required above may be combined with any reports of measurements required by the FCC or other regulatory agencies, the City shall accept such combined reports, provided that all standards and measurements herein or hereafter established by the City are satisfied. 36.25 CHANNELS TO BE PROVIDED. (1) Public Access Channel, The Grantee shall provide at least one dedicated. noncommercial public access channel, associated production equipment and necessary staff production assistance to bo made available for the first five (5) minutes of live production to the public at no charge on a first come - first served nondiscriminatory basis. Hours of availability for use of such channel shall be specified in the application for franchise. As the total number of public access channels is of 36 - 35 I41CR01101h) BY JORM MICRQLA6 ...„i; .i..:� 6Y JUKI•I MI(RULAu Sec. 36.25(2) BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE a great deal of interest to the City, applicants for a franchise hereunder may propose a greater number of such channels than the minimum eat forth herein. However, such proposal shall describe the particular community needs anticipated to be served thereby and shall detail, as pert of the financial projection and support required In Section 36.10(13) , the associate costs and revenues. The Grantee shall regularly make information available to the public on the availability of the access channels. (2) Education and Government Access Channels. The Grantee shall in addition to Subsection a ova proa two a tional channels, one for educational use and one for governmental use. For the first five (5) years from the date these channels are made available there shall be no charge made to their users by the Grantee, and thereafter at no charge unless specifically prohibited by FCC Regulations or, If not permitted, in accordance with the schedule of charges filed and maintained with the City Clerk and approved by the Common Council. As both educational and municipal channel availability and the free use of associated production equipment is of a great deal of interest to the City, applicants for a franchise hereunder may indicate a greater number of dedicated channels or free usage for this purpose than the minimums set forth, however such proposal shall describe the particular community needs anticipated to be served thereby and shell detail, as part of the financial projection and support required in Section 36.10(13) , the associate coats and revenues. If the FCC fails to approve said additional dedicated channels, or usage, such failure shall not be construed to eliminate the provisions herein requiring the filing with the City of rates for lease of said channels for municipal and educational purposes. (3) Production Costs on Access Channels. The Grantee shall not be responsible ort the production costs of programs prepared for transmission (other than for brief live studio presentations not exceeding five (5) minutes) over the channels as set forth In Subsection (1) above other than as the Grantee may elect to do so. A schedule of rates for production and origination chargee shall be filed with the City Clerk. (4) Television Broadcast Signal Carriage. The Grantee shall carry those television broadcast signals w c are TFaccor7lance with Part 76, Section 76.63 of the FCC Rules and Regulations. The provision of additional television broadcast signals as provided for in Part 76, Section 70,63(a) shall also be required, The City is also interested in at least one additional television station broadcasting predominately in a non-English language. (5) FM Signal Carrie. In addition to the television signals set forth In Subsection above the Grantee shall carry as a minimum the FM radio stations whose normal broadcast ranges fall within the City limits. If the Grantee elects to carry any AM station, all AM stations licensed to cities within Dane County must therefore be carried. (6) Time and Weather Programming. The Grantee shall provide time and weather programm ng. (7) Local Origination Channel. The Grantee shall provide at least one channel fully devoted to focal origination programming. The Grantee shall, in determining the use of this channel, consider any recommendations of the Cable Television Program Advisory Council. 36 - 36 ----wn:uoi ivato nti JORM MICROLO.B ...r,0❑ .L.:;, by JURM NILk(JLMD , w, :ba :w "i,, . BROADBAND TELECOMMUNICATIONS Sec. 38.25(8) FRANCHISE ENABLING ORDINANCE (8) Emmnc Alert Override. The Grantee shall incorporate into its ac esthe capability for an emergency override audio alert whereby a designee of the City, in times of crisis, may introduce an audio message on all Broadband Telecommunications Network appropriate channels simultaneously. The Grantee shall provide, in a location to be designated by the City, all equipment necessary for use of the emergency alert system. 36.26 SERVICE STANDARDS. (1) Service Res ones and Rebate. The Grantee shall provide "same ay service response, seven (7) days a week for all complaints and requests for repairs or adjustments received prior to 2:00 p.m. each day. In no event shall the response time for calls received subsequent to 2: 00 p.m. exceed twenty-seven (27) hours. Upon failing to correct total lose of customer service within twenty-seven (27) hours, the Grantee shall credit one -thirtieth (1/30) of the monthly charge for "basic service" to each subscriber for each twenty-four (24) hours following report of lose of service to the Grantee. (2) Service Interru tions and Notification. The Grantee, whenever it e necessary to nterrupt service over the Broadband Telecommunications Net%tork for the purpose of network maintenance, alteration or repair, she] I do so at such time as will cause the least amount of inconvenience to his subscribers, and unless such interruption is unforeseen and immediately necessary, he shall give reasonable notice thereof to the affected subscribers. (3) U radio of Facilities, E ui ment and Service. The Grantee shall upgre a is aEilities, equipment and service as subscribers' demands dictate so that its network to as advanced as the current state of technology with Held -proven equipment will allow. 36.27 CONSTRUCTION STANDARDS. (1) Com liance With Safety Codes. All construction practices shall be n accorance wit all applicable sections of the Occupational Safety and Health Act of 1070 and any amendments thereto as well as all State and local codes where applicable. (2) Comliance With Electrical Codes. All installation of electronic equipment e a e o a permanent nature, durable and installed in accordance with the applicable sections of the current edition of the National Electric Safety Code and all State and local codes where applicable. (3) Antennae and Towers. Antenna supporting structures (towers) shall Wdesigned for the proper loading zone as specified in Blech nica Industry Association's R.S.-22A Specifications. (4) Compliance Wlth Aviation Requuemente. Antenna supporting structures (towers) ehalfba pe me g to , erected and maintained in accordance with all applicable rules and regulations of the Federal Aeronautical Agency, the State Aeronautics Board governing the erection and operation of supporting structures or television towers, and all other applicable local or State codes and regulations. 36 - 37 4I044 ILMLO By JORM MICR6LAB T ,P,:, , q .-.,fl"Il c Sec. 36.26 w .L'.,, LSY JUV biICkULAu �LJWr rov, , BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE 36.28 CONDITIONS OF STREET OCCUPANCY. (1) A rova1 of Pro osed Construction. A Grantee shall first obtain Ma approve o t a ty pr or to commencing construction on the streets, alleys, public grounds or places of the City. Applications for approval of construction shall be in a form provided by the City. (2) Excavation Permits. A Grantee shall not open or disturb the surface of any street, side -walk, driveway, or public place for any purpose without first having obtained a permit to do so in the manner provided by ordinance. (3) Chan as Re wired b Public im rovements. A Grantee shall, at to expense, protect, support, tempore y sconnect, relocate in the same street or other public place, or remove from the street or other public place, any property of the Grantee when required by the Qity by reason of traffic conditions, public safety, street vacation, street construction, change or establishment of street grade, installation of sewers, drains, water pipes, City -owned power or signal lines, and tracts or any other type of structure or improvement by public agencies. (4) Useof Exietin Poles or Conduits. Nothing in this ordinance or any rant se granted hereunder, shall authorize the Grantee to erect and maintain in the City, new poles where existing poles are servicing the area. The Grantee shall require permission from the City before erecting any new poles, underground conduit or appurtenances where none exist at the time the Grantee seeks to install his network. (5) Facilities not to be Hazardous or Interfere, All wires, conduits, cables and other property and facilities of the Grantee shall be so located, constructed, installed and maintained as not to endanger or unnecessarily interfere with the usual and customary trade, traffic and travel upon the streets and public places of the City, The Grantee shall keep and maintain all its property in good condition, order and repair. The City reserves the right hereunder to inspect and examine at any reasonable time and upon reasonable notice the property owned or used, in part or in whole by the Grantee. The Grantee shall keep accurate maps and records of all its facilities and furnish copies of such maps and records as requested by the City under Section 38.14 herein. A Grantee shall not place poles or other equipment where they will interfere with the rights or reasonable convenience of adjoining property owners, or with any gas, electric,,or telephone fixtures or with any water hydrants or mains. All poles or other fixtures placed In a street shall be placed in the right-of-way between the roadway and the property, as specified by the City. (6) Method of Installation. All wires, cables, amplifiers and other property shall cEietructed and installed in an orderly and workmanlike manner. All cables and wires shall be installed parallel with existing telephone and electric wires whenever possible. Multiple cable oonfigurn- tions shall be arranged in parallel and bundled, with due respect for 36 - 36 —��;dILRUf ILId(U {3Y DORM MICR*LAB I._.i„l .L'L- by JURM MILkOLIiu • IL01W, i111 11�. "'L' _._ - BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Sec, 38.28(7) engineering and safety considerations. All installations shall be underground In those areas of the City where public utilities providing either telephone or electric service are underground at the time of installation. In areas where both telephone and electric utility facilities are aboveground at the time of installation, the Grantee may install its service aboveground provided that at such time as those facilities are required to be placed underground by the City or are placed underground, the Grantee shall likewise place it services underground without additional cost to the City or to the residents of the City other than as may be granted under the provisions of Section 38.18. (7) Protection of Facilities. Nothing contained in this section shall relieve any person, company or corporation from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while perform- ing any work connected with grading, regrading, or changing the line of any street or public place or with the construction or reconetruction of any sewer or water system. (8) Notice of Cit Improvements. The City shall give the Grantee reasonable no ce o p ane or street improvements where paving or resurfacing of e permanent nature is involved. The notice shall contain the nature and character of the improvements, the streets upon which the improvements are to be made, the extent of the improvements and the work schedule for the project. The notice shall give the Grantee sufficient time to make any additions, alterations, or repairs to its facilities as it deems necessary in advance of the actual commencement of the work, so as to permit the Grantee to maintain continuity of service. (9) Requests for Removal or Change. The Grantee shall, on the request of any persono n�l3 ng a-uIlding moving permit, temporarily raise or lower its wires to permit the moving of said building. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the Grantee shall have the authority to require such payment in advance. The Grantee shall be given not less than ten (10) working days notice of any move contemplated to arrange for temporary wire changes. (10) Aulli t to Trim Trees. The Grantee shall have the authority to trim trees upon an over sang ng streets, alleys, sidewalks, and other public places of the City so as to prevent the branches of such trees from coming in contact with the wires and cables of the company. All trimming is to be done under the supervision and direction of the City after the explicit, prior written notification and approval of the City and at the expense of the Grantee. The Grantee may contract for such services, however, any firm or individual so retained shall receive City approval prior to commencing such activity. (11) Restoration or Reimbursement. In the event of disturbance of any street or private property by the rantee, It shall, at its own expense and in a manner approved by the City and the owner, replace and restore such street or private property in as good a condition as before the work causing such disturbance was done. In the event the Grantee fails to perform such replacement or restoration the City or the owner shall have the right to do so at the sole expense of the Grantee. Payment to the City or owner for such replacement or restoration shall be immediate, upon demand, by the Grantee. All requests for replacement or restoring of such streets or private property as may have been disturbed must be in writing to the Grantee. 38 - 39 - ;ncai�iiii•nonr DORM MICR6LAF3 by JOV 1-11LR0LAb Sec. 36.26 (12) ,,LULrc i?A, ,J.. BROADBAND TELECOMMUNICATIONS FRANCHISE ENABUNG ORDINANCE (12) Office and Records in City. The Grantee shall at all times make and eep at an o plane and records showing the exact ce maintaino❑ by the Grantee in the City, full and complete location of all Broadband Telecommuni- cations Network equipment installed or in use in the streets and other public places of the City. The Grantee shall furnish the City a current maor set of maps. drawn to scale, showing all ;tions Network equipment installed and in place in streets reetsd other public places of the City. (13) Emer enc Removal of Plant. If, at any time, in case of fire or disaster In t e City, it a all ecome necessary in the reasonablejudgment liencee, of the City to cut or move any of the wires, cables, amp PP or appurtenances thereto of the Grantee, such cutting or moving may be done and any repairs rendered necessary thereby shall be made by the Grantee, at its sole expense provided that such repairs are not necessitated by negligent act of the City, in which case, coat for repairs shall be borne by the City. (14) Alternate Routin of Plant in the event the Cit for any reaued use of a street son, the Grantee will e en a to t o rant;; y Y Y make every reasonable effort to provide service over alternate routes. 36.28 INTERCONNECTION. (1) No Prohibition of Interconnection. Nothing in this ordinance shall e construe eo ae to pro t t e Grantee from interconnecting its network with other similar contiguous networks either in the City otheror in pp counties of Section38 20 aPPly. However, any revenues derived tht as the e efromne Y• shall be equitably allocated in the calculation of "annual gross subscriber revenues" as set forth in Section 36.15 herein. (2) Stud Re uired for interconnection. The Grantee shall, if requested Vv --t e ty, con uct a ec c en economic feasibility study of any interconnection requested by the City. The study shall be presented to the City, and in the event that the study shows such interconnection to be feasible, the Grantee shall, if so instructed by the City, accomplish said interconnection. In the event that the study indicates technical feasibility only, the City may elect, but at its sole discretion, to arrange for compensation to be paid to the Grantee, in amount stti'IIcisnt to assure an economic "break even" by the Grantee and so order the interconnection. In the event that the study fails to show technical feasibility the Grantee shall have no furtherresponsibility br accomplish- ing said interconnection until such time as improvements in technology permit such interconnection. 36.30 UNAUTHORIZED CONNECTIONS OR MODIFICATIONS. (1) Unauthorized Connections Prohibited. It shall be unlawful for any zm, person, group, company, corporation or governmental body or agency, without the expressed consent of the Grantee, to make anductively connection, v electro ically or otherwise, with or to any segmentpically, ot in 36 - 40 --- Id I UMI ILLILI7 M DORM MICROLA6 by jUkM MICkULtio BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE L Ldh-< \IU'. J, rl;", vL Sec. 38.30(2) a franchised Broadband Telecommunications Network for any purpose whatsoever, except as provided in Section 38.18 herein. (2) Removal or Destruction Prohibited. It shall be unlawful for any firm, person, group, company, corporation, or government body or agency to wilfully Interfere, tamper, remove, obstruct or damage any part, segment or content of a franchised Broadband Telecommunications Network for any purpose whatsoever. (3) Violation. Any firm, person, group, company, corporation, or governmen- ts coy or agency convicted of a violation of this section shall for each offense, forfeit a sum of not less than one hundred dollars ($100) nor more than five hundred dollars ($500) together with costs of such prosecution. Violation of this section shall be considered a separate offense for each twenty-four (24) hour period the violation continues following notification or discovery. 38.31 PREFERENTIAL OR DISCRIMINATORY PRACTICES PROHIBITED. (1) Affirmative Action Pro ram. The Grantee shall establish an Affirmative cHonon grogram w ch shall be a positive program designed to ensure that a good faith effort will be made to employ applicants from all segmenta of the community regardless of race, color, marital status, religion, age, handicap or national origin. The Affirmative Action Program shall be prepared pursuant to the guidelines established by the Affirmative Action Ordinance, Section 3.58 of the Madison General Ordinances. The Grantee shall establish and maintain a nondiscriminatory policy program providing that no individual shell be discriminated against with respect to compensation, terms, conditions, or other privileges of employment because of race, color, marital statue, religion, sex, national origin, handicap or age. The Grantee shall establish an Affirmative Action Program to be placed on file with the City prior to the commencement of construction. (2) Services to be Equally Available. The Grantee shall not refuse cable television service to any person or organization who requests such service for lawful purpose, nor shall a company refuse any person or organization the right to cablecast pursuant to provisions of this ordinance. The company shall not, as to rates, charges, service facilities, rules, regulations or in any other respect, make or grant any unreasonable preference or advantage, nor subject any person to any prejudice or disadvantage. The company shall take affirmative steps to disseminate the information concerning the availability of Its services to all minority and female groups and other under -represented groups. This provision shell not be deemed to prohibit promotional campaigns to stimulate subscription to the system or other legitimate uses thereof; nor shall it be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification@ shall be entitled, provided such schedules have been filed with and approved by the City as provided In Section 38.18. 38 - 41 --._>n (Y( 11 I L III n B DORM MICRmLAB ,�:<u, ,�.•1w BY JURM 1-11CkULHu .+.+L Sec. 36.31(3) BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE (3) Fairness of Acceselbllit . The entire system of the Grantee shall e operate in a manner consistent with the principle of fairness and equal accessibility of its facilities, equipment, channels, studios, and other services to all citizens, businesses, public agencies, or other entities having a legitimate use for the system; and no one shall be arbitrarily excluded from its use; allocation of use of said facilities shall be made according to the rules or decisions or regulatory agencies affecting the same, and where such rules or decisions are not effective to resolve a dispute between conflicting users or potential users, the matter shall be submitted for resolution by the Broadband Telecommuni- cations Network Regulatory Board. 36.32 SUBSCRIBER PRIVACY. (1) Use of Data From Subscriber. A Grantee, City or any person shall not, in a on to the requirements of Section 38,22(1), initiate or use any form, procedure or device for procuring information or data from cable subscribers' terminale by use of the cable system, without Prior written valid authorization from each subscriber so effected. Valid authorization shall mean written approval from the subscriber for a period of time not to exceed one (1) year and shall not have been obtained from the subscriber as a condition of service. Further, it shall be unlawful for a Grantee, without such authorization, to activate and/or utilize any "Class IV Cable Television Channel" in any manner from the subscribers' premises. In any case the subscriber shall retain the right to deactivate his terminal. (2) Subscriber Data. The City, or a Grantee, or any person shall not, w out pr or written valid authorization from each subscriber no affected, provide any data identifying or designating subscribers. Any data so authorized will be made available to the authorising subscriber in understandable fashion. (3) Subscriber A reements. Any agreement or contract such avis necessary For —Section -98 , 2 and (2) above shall not be part of any other contract or agreement and shall not be a condition of subscribing to the system, 38.33 ORDINANCES REPEALED. Should any other ordinance or part thereof be in conflict with the provisions of this ordinance, this ordinance shall prevail insofar as it applies to a Broadband Telecommunications franchise. In addition, this ordinance shall not operate to supersede Section 10.055 of the Madison General Ordinances and the franchise granted thereunder until such time that franchise is terminated. 36.34 PUBLICATION COSTS. The Grantee shall assume the coat of publication of the franchise ordinance as such publication is required by law. A bill for the publication costs shall be presented to the Grantee by the City upon the Grantee's tiling of acceptance and shall be paid at that time. 36-42 •.. :1CIRM II 1f, l) 6Y JORM MICROLAB MloWil Li, U BY JORM MICROLAB BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE Sec. 38.35 38.35 SEPARABILITY. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such section, subsection, sentence, clause, phrase or word shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions hereof. 38 - 43 MICRO[ ILMID 6Y JORM MICR6LAS r r n A P PAP I1). 9r°. iinpif rtiu(Ui-iLbii.0 by JORM MICkULAb LLUAk kAPLUS AND ULA terry or rnoouo•i, wrsconsm AN ORDINANCE No4, 1975 P rc,ei i led......_..............vember.......................�:Q.i.eGn Referred to.. �•••••• rn amend subsections (1) and (3) of Section 36.30 i V .. 1 .9]C ILcPmrcd ISack.................................S..J.La..-!... of the P7idison Ceneral Ordinances to clarify placed provisions pertaining, to unauthorized connections Adopted ......�....•••.••••On File ..............._.. or modifications to the Broadband Telecommsncations Rules SubPcnded................... Network. ............................ _... Re-Rdo red to .... at"Z................................ PublicHearing..................................................... Ordinance No.7.�.��./.. AN ORDINANCE sa.2 7 Pile Number ............. -.5* y Clity Attorney (Request of Broadband Telecommunications Regulatory Board) The Caroron Council of the City of Madison do ordain as follows: Subsection (1) of Section 36.30 of the Madison General Ordinances -is amended to read as follows: (1) Unauthorized Connections Prohibited. It shall be unlawful for any firm, person, group, ccmoany, corporation or goverrjrantal body or agency, without the expressed consent of the Grantee, to crake or possess any connection, extension, or division, whether physically, �y acoustically, inductively, electron_cally or otherwise, with or to 1 any segment of a franchised Broadband Telecemnunications Iletwork for any purpose whatsoever, except as provided in Section 36.19 herein. Subsection (3) of Section 36.30 of the Madison General ordinances is amended to read as follows: (3) Yi4,Idfi6/1 Penalty. Any firm, person, group, campany, corporation, or government body or agency convicted of a violation of this section shall for each offense, forfeit a sum of not less than one hundred ($100) nor more than five hundred dollars ($500) together with costs of such prose- cution. Yi4Trlti2fi/4,P/tMiE/EE�ti�t/EtihiZ/1SE/✓�rSEi2�tFE/d/EJ¢zrrLt.� ' �PPL•d,d,�/PJ,zs/FAtl4/thEEf�JPdJif/(2ND/V�dsSt/$�r�idd/t11�/xri�Idtid:h/��rhfiAdEE I fdTZd�,dis4�/A�fifiE6ti�fi/mz~/diEtr�si@t�! 1 l • Jin . til Drafted by: James M. Voss, Assistant City Attorney 141CRoi ILMID By JORM MICR6LA6 M)AP DIT )1 'T!'Ire M!1 .,<Ur ILMLU BY JURM 141CRULAB LtDA,f RAPiuj Ai1U uL, w: IL City of Mad;,on, Wisconsin AN ORDINANCE rn aurcnd .'iub;.rcr ion (2) of Sent tun 36.17 Of the. Madison Crneral Ordin:mcen Lo revlse the per- fnrmanco bund regniroments the Lelecommunic;rtions I'ranchisu hold,:r must mecL APR 81975 Metered to ..................... Itcpuncd Back ................ .............................. Placed Aopts•d .................. V ......... Oil Filc ................... holt•% Snsircnded..... 1,11.141 ....................................... L� Rc•It t•Irt red to ...................................................... Public Bearing ...................:................................... AN ORDINANCE Ordinance File No...(, Qy� J Number. aga— .......`... By Mayor Paul R. Soglin %'%S Thu Common Council of the City of Madison does ordain as follows: Subsection (2) of Section 36.17 of the Madison General Ordinances is amended to read as follows: (2) Perfnrmnncr Bond. The Grantee shall maintain, and by his acceptance of any franchise granted hereunder agrees that Ise will maintain through the germ or the franchise, or any renewal or extension thereof or ns ruguired in Secti.on 36,12(4), a fAlfNldl performance bond running to the City, wll:h at 1r.a:;C N6 onp good and suffir.ie.nt EsW.Hii surety_ or other financial. guarantles approved by the City Risk Manager, in tlu• penal. suns total of Jn(If Ji1111Js( I1.011GAd 181ldtAW(N'AN1 three hundred thousa dollar,(,Si7O0,O0�,conditioned upon the fAfltifdl perfonnance of the Grantee and upon the further condition that in the event the Grantee :.hall fail U, comply with any law, ordinance or regulation governing the franchise, there shall be -recoverable jointly and severally Crom Ute principal and surety of the bond, any damages or loss suffered by the City as n result, including the full amount of any compensation, indemnification, or cost of removalor abandonment of Any property of the Gr:uttee, pins a reasonable allowance for attorney's fees and costs, up to 1110 full amount of the bond.• The bond shall contain the following endorsement: It is hereby understood and agreed that this bond nav nut be cancelled nor the intention not to renew ba stated until thirty (30) clays after receipt by•Lhe City Risk Manager of lladisnn, Wisconsin by registered snail of two (2) copies of a written notice of such intent to cancel or not renew. MICRUILMED By ' JORM MICR46LAB frDui' vnrin• 'lf �, I,01'mS t•11CROFILMED BY JORM141CROLAB CEDAR RAPIDS AND UES !•1UINL�, ,Ula„ Cily of mcid' ,n, Wlaous!n APR AN Oliblt`I/ SC(' I" t••pr I ..•..1 i r. cuLdi• i hr,ren'd.....APR.....A 197.5............................. S 1!qua tion./i t � , :11 1. 11 "t. i 1 ' 11 M.!! ah- .. .;�•�rtoo 7 of tl it +.,.+, tl I..r 71nd1 nnu G. uornl Itc!rucd. lir................ ........... I. nnliu:un•�a'tn i•I.ui' li::uta,tri•liravlsioli'1 tcyoi:'cd Lrunit.•dltacl:..... ' I ..... ......... . t.eJerounnuoit.0]Ill Ir.nt•hilm ItoJd.:r I'hrtd j AJaplcd.. ..........✓.....1..Oil File ......... :. P nln Jmpended........v ........... .......... ` .Ill, k, loIEd Ur .i...... ...... .......... ........'. I'u6hr, llr:aul6 ......... AN -ORDINANCE .Ordinance No �q�{,,3. i I , File plumbs I ,By lt:.ty•t I'.mJ Jl. '�u!'.lfti ��i%'%S I ;In• Co�iuhnu C�'miri.l of IIb: Cloy of fladison does ordain as follows: Fubdi'i1;:lorl (n).. aid.(b) of SubsecLion../r• or Section 36.1.6 of the Madison o I,t, l:r•:Ll r.t ..•: is hr.rrby repealed and rucreated to read as follows: "!n) nn. wilrtoll Jail u.s (+1,000,000) for persona.igjury or death i r'esilll tel; t tole ntv mm occurrence, and nv :Lill'ars ($ 500, 000) [or, property damage till; Ir.n.l anv nn•.:.. occurreneC.".` nm J6.16 of tile IIaJ>:.un Genet al Ordinances is hereby .nncu.lml to (/I l;r ll` r l f I ll�nliuu, ItunJ. CclUlot' tlu: pruvJslons of this o dlnvlcr. I mgr .rl%!n:Urdil r acrtpled by .the City, pursuant ht rein. ear any damtfry a•rtt•rr•d Icy Lit, lily thereunder, ::hall be, com;trur•d td excuse fdl�liidl -tra'f al-.,:rtr•.Ibv lh�• frrantvo or .iml �• i. 1 L Lho Li•lli'1' f 9 • I i. tt Ll.(- Grmttno under u.y I 11 II au:J lit.reunder or for dauvigesi either to the Lul.l •ux'tuU of HIV boml Or otherwise. pj f j s t p I 141CRoriLMED BY �t JORM MICRILAB ! CS MOINES CI'DAR P.ArIDS •D f•110R0iILA U BY JORM MICROLAB LEDAR k0ius Ai1D UL 9l Suggested Provisions for Ordinance a �' for Private Franchise of CATV C,r, Cnl. 1. it, Jr ... ... Nr•� I. SHORT TITLE, II. PURPOSE OF ORDINANCE, NATURE OF GRANT, JURISDICTIONAL BASIS FOR LOCAL FRANCHISING AUTHORITY'S POWER. A. General Statement of Purpose. B. Nature of Grant. To grant to the corporation hereinafter named a permit for use of p0%lic right-of-ways for the purpose of construction, maintaining and operating a cable communications system in the City of Iowa City, Iowa. C. Jurisdictional Basis. 11 (The pertinent sections of federal, state and local laws.) 2. (Referendum - Concurrent Action, the vote of one body of citizens or council shall not be binding.) 3. All actions of the Bouncil to insure quality service are authori- zed unless specifically limited by law. III. DEFINITIONS (This section to include all items usually included, plus any deemed by the City Attorney to be appropriate. Appendix A lists some usual defini- tions from various sources). 4 � F MICROFILM BY - i JORM MICR LAB M9AN VAN D' nF514014fS !1IuWi i1_!iu hY JOHM MICRULAb LLUAk kNrlu, A;W OL IV. IOWA CITY CABLE COMMUNICATIONS COMMISSION, A. Commission Established. Before any permit is granted, there shall be appointed a Commission, to be known as the Iowa City Cable Communications Commission. B. Commission Composition. The Commission shall consist of five residents of the city appointed by the City Council. Each member shall serve a term of five years) provided, however, that appointments to the first Commission shall be for 1, 2, 3, 4, and 5 -year terms respectively. Any vacancy in the office shall be filled by the City Council for the re- mainder of the term. No employee or person with ownership interest in a cable television franchise granted pursuant to this ordinance shall be eligible for membership on the commission. The City Manager, or his authorized representative, shall serve as an ex -officio member of the Commission. C. Commission Functions. The Commission, in addition to functions provided elsewhere in this ordinance, shall have the following functions: 1. Advise the Council on applications for permit. 2. Advise the Council on matters which might constitute grounds for revocation of the permit in accordance with this ordinance. 3. Resolve disagreements among grantee and public and private users of the System; such decisions of the commission shall be appealable to the City Council. 4. Advise the Council on the regulation of rates in accordance with this ordinance. 5. Coordinate the grantee's advisory consultant services to facilitate government, educational, community group and individual use of the public channels and 10 insure the co-ordination of the private franchise and the Iowa City Corporation for Public Cablecasting. 6. Determine general policy relating to the service provided subscribers and the operation and use of access channels, with a view to maxi- lei, axi- mizing the diversity of programs and services to subscribers. 7. Encourage use, through the Public Cablecasting Corporation, of access channels among the widest range of institutions, groups and individ- uals within the City. S. submit an annual report to the City Council, including, but not limited to, the total number of hours of utilization of access channels, a review of any plans submitted during the year by the franchisee for development of new services, and hourly subtotals for various programming categories. The annual report shall include the following programming categories: a. Local educational uses including libraries, public and private schools, and the University of Iowa. o-ncmoi ivaro or JoRM MICRbLAB r r1An u,1r"> , .41)j -H, 1'11udh 1LALL) BY JORM MICROLAu LLUAr( RAPIUJ A;w JL.. ..••. b. Public access for local programming under public control. C. Local Government Access (including fire, police, City Council meetings, public hearings, burglar alarms, and public announce- ments). d. Channel time use for lease for pay Tv. e. Channel time use for lease for business uses, including telemetry of information. f. Information retrieval and professional communication. 9. Cooperate with ocher systema, and supervise interconnection of systems. 10. Maintain a knowledge of current developments in cable communications. 11. Submit a budget request to the City to cover expenses incurred in respect of performance of functions provided by this ordinance. This request may include funds to be used for the development of the use of access channels, including production grants to users and the purchase and maintenance of equipment not required to be provided by the permit, and funds to be used as per diem expenses and such salaries for Commission members as may be prescribed from time to time by ordinance. 12. Audit all franchisee records required by this ordinance, and, in the Commission's discretion, require the preparation and filing of information additional to that required herein. 13. Conduct evaluations of the System at least every three (3) years, with the grantee, and pursuant thereto, make recommendations to the Council for amendments to this ordinance or any franchise agreement. 14. To act on behalf or as the designee of the City Council in all renegotiations and pursuant thereto, make recommendations to the Council for amendments to this ordinance or any franchise agreements. 15. Employ, as necessary, the services of a technical consultant, to �( ass e n the analysis of any matter relative to the Cable Communi- cations System. 16. Act on behalf or as the designee of City Council for the purpose of proposing regulations and arbitration procedures as deemed necessary by City Council, and/or An provide any other service to City Council that may be reasonably required by City Council under the authority of this ordinance. 17. Develop and publish within six (6) months of the date of award of the initial permit hereunder, and amend as necessary from time to time, a cable communication system rules and procedures manual to define the Commission's functions and responsibilities, and on adopt rules and procedures in relation thereto. Upon publication of said manual, and upon any amendments thereto, the Commission shall submit the same to City Council for approval. 1WR0f ILI-010 BY JORM MICRf1/LAB f111Ap 111 r[ Vin l'!f5 V. Moi ,I,Ur !LPiL.J by JURM MlCkULAB LLJA 1< ifAl iJj IU�J IOWA CITY CORPORATION FOR PUBLIC CABLECASTING. A. Corporation Authorized. The City Council shall cause to be established a non-profit corporation designating all subscribers as stockholders, with all stock held in trust by the Board of Directors. B. Board of Directors of Corporation. The Board of Directors shall be com- posed of five (5) members, with staggered terms, to be elected by the subscribers from among persona nominated: five by grantee, five by grantor, plus nominations from subscribers. Those receiving the most votes are to be elected. Election every two years. The Chairperson is to be elected by the Board of Directorej 2 year term, repeatable. C. Corporation's Functions. The Corporation, in addition to functions pro- vided elsewhere in this ordinance, shall have the following functions and authority. 1. Shall lease from grantee for duration of franchise all required access channels. 2. Shall be responsible for scheduling of public access channel(s). 3. Shall coordinate scheduling of a. Local government access channel(s) b. Local educational channel(s). 4. May lease additional channels and operate any channel on behalf of lessee. 5. May accept responsibilities for scheduling of any additional channels and may charge fee for such services. 6. Shall be responsible for encouraging, promoting, and assisting in production of programming on public access channel(s). 7. May assist to any degree with programming on a. Local government channel(s) b. Local educational channel(s) C. Any other channel(s) by mutual agreement (1) May charge fee for such service. B. Shall establish and enforce fairness rules a. Equal time b. First come/first served C. Encourage all aides in issues to present case d. Comply with applicable regulations. 9. Shall establish program to inform and teach potential users a. Hold formal and/or informal classes in equipment use (1) Offer "hands on" experience (2) Work with local schools, recreation center, community groups, etc., for programs in equipment use -0ICROf ILVIf.O By JORM MICROLAB M!LtWi 1L4LU by JORM MlCkOLAb LEDAk kArli» A11D JL� . b. Hold formal/informal classes, workshops, etc., on effec- tive communications via cable TV (1) Offer practical experience (2) Work with local schools, civic groups, religious groups, recreation center, etc., for effective programs in effective cable communications C. Establish a pool of trained persons to assist in production, programming and training in cablecasting. 10. May secure funds a. Engage in fund raising activities and acknowledge contribu- tions b. Charge fees where allowable and advisable C. The grantee to contribute an amount or a of gross revenues, whichever is greater, as annual operating expenses to provide access cablecasting for all subscribers. The amount renego- tiable during life of franchise each even numbered year d. Seek grants-in-aid or agency to assist Is. Accept commissions from any person, group, g cY in programming or establish training programs in equipment use, cable communications, or other cable uses and functions. 11. Shall establish and maintain a budget for distribution of funds a. Funds from grantee as agreed b. Funds solicited from under :77 ..C.10 above. 12. Shall have complete control over use and schedul of Lequireall access facilities and have first call on any equipment d for immediate use by grantee. 13. Shall establish and maintain equipment pool a. Portapack or like equipment dedicated for access use by grantee (1) Maintenance funded by grantee b. Equipment given or loaned by local government or educational authorities C. Equipment given or loaned by others d. Equipment purchased by ICCPC a. Equipment owned by grantee and not in use (1) Maintenance responsibility of grantee. 14. Shall schedule and distribute for use all equipment within its control a. observe rules of nondiscriminatory first come/first served use of public access b. Coordinate use between local, educational and governmental agencies C. insofar as possible, consistent with fairness policies, encourage broad community use and diversity of points of view. 15. Shall perform such other duties that will further public cablecasting as are consistent with the above listing of responsibilities. ralciionuarn or JORM MICR6LA6 rfDAP VAr!m of �, 'd0i9C5 IU'!LU BY JURM MICRULAh VI. GRANT AND LENGTH OF PERMIT, I,LUAI< kAi'iJ iii ill iiL - A. Grant. The Grantor hereby grants to (name of company) a non-exclusive, revocable permit to construct, operate, maintain, and reconstruct a Cable Communications System within the City of Iowa City, Iowa. Said permit shall constitute both a right and an obligation to provide the services of a Cable Communications Syscam as required by the provisions of this permit. B. Use of Public Streets and Right -of -Ways. For the purpose of operating -7 and maintaining a Cable Communications System in the City, the Grantee AIy' may erect, install, construct, repair, replace, reconstruct, and retain in, on, over, under, upon, across, and along the public streets and corigh*of-waywithin les, conductors, nduits,, vaults• e manholes,amplifie s,City such wappliances, pedestals, attaches, ments, and other property and equipment as are necessary and appurtenant to the operation of the Cable Communications System in accord with the standards and procedures of the City of Iowa City. C. Duration. The term of this permit, and all rights, privileges, obliga- tions, and restrictions pertaining thereto, shall be (number of years - subject to negotiation) from the effective date of the permit, unless terminated sooner as hereinafter provided. D. Provision of Service Mandatory. Except where specifically stated other- wise in this permit, the Grantee shall arrange to provide all feasible services requested by potential users of said services to the extent that the users are willing to pay the fair and established rates for said services. '� n�=atrhes been eetab34shed fo�a��TY -the procedures -eabHshed-in-t ct -«Chy�got-,i MKIZ01104LD 6Y JORM MICROLAB NI ,Wt 1L;4Lu by JORM M(GROLAb LLUNi< i<AY IJP VII. EXPIRATION +�..�••^" A. Expij ram Upon expiration of the initial term of this permit, e Grantor shall have the right, at its election, to: 1, renew or extend the permit, p, invite additional proposals, or 3 purchase the system. red into by itethatnthe Grantor shall havecondition right tocexercise cthese eoptions- B. Renawnl or Extension. This permit may be renewed or extended by the Grantor, upon applies and of the Grantee, in accordance with the then Granting rules of the FCC and applicable law. 1. Nothing in this Provielon shall be construed to require such renewal or extension. Z. A renewal may be granted not more than two Years prior to the expiration of any existing terms• reach an accord on the renewal or extension of this permit, Grantee are unable 3. In the event that the Grantor and the o the Grantor may elect to invite open additional proposals for the operation of one or more cable communications systems in ths City' Such system or Systema may either replace the to system operated by the current Grantee or beas thedcasenmay be. the System operated by the current Grantee, nation of the fact that a great many technical, financial, marketing, and legal uncertainties are C. Rene otiation Provisions. In recognition regulatory. acts of cable cor�unications at the present time, eesociated with all asp .leads for the maximum feasible degree the intent of the Grantpe�ttthroughout the term OWl the the scheduled of flexibility in this P this flexibility principal means for accomplishingthis a means of cooperatively renegotiation sessionsprovided for inserve action. It is cooperatively herene- that such renegotiationFurthermore, working out solutions to problems that e.088 - If the Grantee regulatoryhas t gotiation sessions shall be two-way enetration, or some major developed which has negatively affected the achieved the projected subscriber p raffecteimarilY to or technical problem heman, the session shall be devoted pr the other cash flow of the Sy parties. If, working out solutions actionrate has been bettered, or hand, the projected subscriber p then the session shall services, new sources of revtnouioherin9Ganbecriberarates, developing devoted primarily or both. renegotiation I ho 1, The Grantee and the Grantnhreeyea arsld scheduled Allsuchrenegotiation sessions in April, every Danced in a newspaper sessions shall be open to the Public and (1G) days to the first s prior of general circulation at least ten ay each session and thereafter at least two (2) days before each session. IdiCROr WILD By JORM MICRmLAB hL uNi iL:•iLL) by JORM MICROLAii LLJAI< RAi'iJ, r{iIJ vL. - 2. Special renegotiation sessions may be held at any time during the term of the permit, provided that both the Grantee and the Grantor shall mutually agree on the time, the place, and the topics to be negotiated. All such renegotiation sessions shall be open to the public and announced in a newspaper of general circulation at least ten (10) days prior to the first session and thereafter at least two (2) days before each session. 3. The following topics shall be discussed at every scheduled renego- tiation session: a. service rate structures, b. free and discounted services, C. application of new technologies, d. system performance, e. services provided, f. programming offered, g. customer complaints, h. privacy and human rights, and i. amendments to this permit. During the month of January preceding the scheduled renegotiation sessions, both parties shall publicly specify topics to be dis- cussed. Topics, in addition to those listed, may be added if agreed upon by both parties. Members of the general public may add topics either by working through the negotiating parties, or by pre- senting a petition. If such a petition bears the valid signatures of one hundred (100) or more qualified electors of the city and Service Area, the proposed topic or topics shall be added to the list of topics to be discussed at the renegotiation session. 4. The Grantee shall provide the Annual Report for the year just completed, containing full cash flow information, as detailed in the section entitled "Reports", no later than the month of March. Supplemental financial information regarding the operations of the Grantee in the City shall be promptly supplied by the Grantee upon the request of the Grantor. The basis for renegotiation shall be the comparison between the required initial projected cost and revenue estimates, attached hereto as Attachment A and made a part hereof, and the actual financial condition of the Grantee. S. Any matter which is disputed during a renegotiation session may be submitted to fact finding or isdiation, at the election of one of the parties, as provided in the section entitled "Resolution of Disputes". 6. Should a dispute arise over whether the financial condition of the Grantee, as reported pursuant to the section of this permit entitled "Resolution of Disputes", is in accordance with generally accepted accounting practices and principles as practiced in the cable TV industry, such dispute shall be submitted to fact finding or mediation, as provided in the section entitled "Resolution of Disputes". T- PI If. ROI I LIdL II BY JoRM MICR4�LA9 (�'!1AP nA! M ,WI!L;4Lu by JURM MIMLAb lkUAR i1APiuo ANO uL.. �• � 7. The Grantor, at its election and in cooperation with the Grantee, may utilize the services of a consultant to gain additional infor- mation for use during the renegotiation sessions. The fees of such consultant shall be borne equally by both the Grantee and the Grantor, as provided in the section entitled "Costs of Consul- tant". D. Revocation. The Grantor reserves the right ^ o revP)j thio -permit, and all rights and privileges pertaining thereto, to the event that: 1. the Grantee violates any provision of this permit except where such violation is immaterial, without fault, or through excusable neglect; or, 2. the Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt; or, 3. the Grantee intentionally evades any of the material provisions of this permit, or is found to have practiced any fraud or deceit upon the Grantor. Prior to any revocation proceedings under this section, the Grantee shall be given sixty (60) days notice in writing, which notice shall state with particularity the grounds upon which the Grantor relies. If, at the end of the sixty (60) day period, the Grantee has not cured the matter which provides grounds for revocation, the parties shall thereafter proceed to submit the matter to arbitra- tion in accordance with the procedures in the section of this permit entitled "Resolution of Disputes". 4. The Grantor shall have the right to revoke this permit one hundred and twenty (120) days after the appointment of a receiver, or trustee, to take over and conduct the business of the Grantee, whether in receivership, reorganization, bankruptcy, or other action or preceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred and twenty (120) days, or unless: a. within one hundred and twenty (120) days after his election or appointment, such receiver or trustee shall have fully complied with all the provisions of this permit and remedied all defaults thereunder; and, b. such receiver or trustee, within said one hundred and twenty (120) days, shall have executed an agreement, duly approved by the court having jurisdiction in the premises, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this permit. I41CIM IL1410 0Y JORM MIC R(�LAB C1,Ap ,,1m. . ')rC 7011115 VIII 1-;: <ur1LA U by JORM MICkOLAB TRANSFER AND ASSESSMENT OF PERMIT. LLUNi< i<AriJ� ANN JL A. Non -transferable. This permit shall not be transferred or assigned, either in whole or in part, or leased, sublet, or mortgaged in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in anv person, except (name of company) or any subsidiary thereof, either by act of the Grantee or by operation of law, without the consent of the Grantor. The granting, giving, or waiving of any one or more of such consents shall not render unnecessary any subsequent consent. B. Change in Control. The Grantee shall promptly notify the Grantor of any actual or proposed change in, or transfer of, or acquisition by, any other party of control of the Grantee. Every change, transfer or acquisition of control of the Grantee with respect to which the consent of the Grantor is required, pursuant to the section of this permit entitled "Permit Non -Transferable", shall make this permit subject to revocation unless and until the Grantor shall have consented thereto. For the purpose of determining whether it will consent to such change, transfer, or acquisition of control, the Grantor may inquire into the qualifications of the prospective controlling party, and the Grantee shall assist the Grantor in any such inquiry. If the Grantor does not schedule a hearing on the matter within sixty (60) days after notice of the change or proposed change and the filing of a petition requesting its consent, the Grantor shall be deemed to have consented. In the event that the Grantor adopts a resolution denying its consent, and such change, transfer, or acquisition of control has been affected, the Grantor may revoke this permit unless control of the Grantee is restored to its status prior to the change, or to a status acceptable to the Grantor. Nothing in this section shall be deemed to prohibit a mortgage or pledge of the Cable Communications System, or any part thereof, for financing purposes or otherwise. Any such mortgage, pledge, or lease shall be subject and subordinate to the rights of the Grantor under this permit or applicable law. or C. Foreclosure. Upon the foreclosure 4PE other judicial sale of all or a substantial part of the System, or upon the termination of any lease covering all or a substantial part of the System, the Grantee shall notify the Grantor of such fact, and such notification shall be treated as a notification that a change in control of the Grantee has taken place, and the provisions of the section of this permit entitled "Change in Control" shall apply. _T- 1-I1CM11LMED BY JORM MICROLAB m; LIWr1LALu By JURM 141LROLAS Ix SYSTEM DESIGN. LLUAit i(Ai'IU� ANIJ IL A. Basic Design and Channel Capacity: 1. The grantee shall construct a dual active/inactive trunk, single feeder, home converter distribution system or equivalent capacity. 2. A hub system with centrally located studios for local orgination and access cablecasting or a system of equivalent capacity. The system shall be constructed in such a way as to provide maximum flexibility, and to service the University of Iowa and other municipalities„when deemed advisable and economically feasible. and Iells The system shall be constructed in such a way that it is possible to distribute programming to subscribers connected to one of the systems main trunks without distributing it to subscribers on the other trunks and in such a way as to allow simultaneous cablecasting of different programs when demand warrants. 3. The system shall have an immediate capacity of 26-30 channels to subscribers; some closed-circuit; two way; with an expanded capacity to 30 channels to subscribers; 4 channel return closed-circuit; two way and up to 16 channels of point-to-point communications each way. 4. The system shall be designed and constructed with the capacity for remote orgination from selected points throughout the system. All initial points and additional points shall be approved by the Commission and shall be a matter for negotiation. 5. The system shall be designed and constructed so as to provide for an audio override of all audio channels during emergencies. An emergency power source shall be provided by the Grantee at the head end of the system. 6. The system shall be designed and constructed in such a manner to pre- vent or dets" invasion of privacy. 7. The system shall provide for dedicated cables to subscribers willing to pay the fair and established rates for such a service. If no such rates exist when such a service is requested, the procedures established in the section on rates shall apply. 8. The system shall be designed, constructed and maintained in accord with the standards herein set forth, and such additional standards as are adopted under the provisions contained herein. B. Territory, The Grantee shall design and construct the Cable Communica- tions system in such a manner as to pass by and provide adequate tap -off facilities for every single-family dwelling unit, multiple -family dwelling unit, agency, and business establishment in the City where the average density is at least thirty (30) dwelling units and/or business establish- ments per linear mile of proposed trunk and feeder cable route measured from the boundaries of the City. All school buildings housing students shall be connected without charge for initial installation, where such RI LR01 I LI -ILD 6Y JORM MICR6La9 rrDnr pnrlm. SIS 'AfI I!II` Ni ;LALu hY JURM MICkULAu LLDAk jZA Y'i�'i buildings lie within 200 feet of a proposed cable route. Other school buildings shall be connected at a cost of time and materials only. All such construction shall be accomplished by C. Interconnection. 1. As technically and economically feasible, the Grantee shall provide interconnection facilities to interconnect the Cable Communications System with any or all other Cable Communications Systems in adja- cent territory, or elsewhere, upon the directive of the Grantor. Such interconnection facilities may be effected by direct cable connection, microwave link, satellite, or other appropriate method. Such interconnection facilities may be required for one, several, or all channels of the System. Upon receiving such directive, the Grantee shall not unreasonably impede interconnection if other systems express a willingness to share the costs of such interconnection. 2. Upon receiving the directive of the Grantor to interconnect, the Grantee shall immediately initiate negotiations with the other affected system or systems in order that costs may be shared equally for both construction and operation of the interconnection link. 3. The Grantee shall not be unreasonably required to interconnect by the Grantor. 4. The Grantee shall cooperate with any interconnection corporation, regional interconnection authority, or County or State regulatory agency which may be hereafter established for the purpose of regu- lating, facilitating, financing, or otherwise providing for the interconnection of Cable Communications Systems beyond the boun- daries of individual political jurisdictions. 5. Should a dispute arise over any matter regarding interconnection the dispute may be resolved by arbitration, at the election of either party, in accordance with the section of this permit entitled "Resolution of Disputes". 6. The Grantee shall design the system to permit the isolation of "interest subcommunities" scattered throughout the System. Such isolation shall be accomplished by adapting converters to permit selective distribution of specialized communications channels. Head end equipment to permit this service shall be installed by the Grantee at cost to either the subscribers or the programmers. D. State -of -the -Art. As technically and economically feasible, the Grantee shall undertake any construction and installation as may be necessary to keep pace with the latest developments in the state-of-the-art, whether with respect to increasing channel capacity, furnishing improved conver- ters, instituting two-way services, or otherwise. Should the Grantee be unable to comply due to technical or economic feasibility, the Iowa City Cable Communications Commission can grant an exemption. IdMRUI ILHEO BY DORM MICR6LAB M;L1W( iL41.L) by J'JRM MICkOLAb �tilA ld idA i'iU� i1iiU Ulm ... �. ••., CONSTRUCTION. A. Construction Schedule. H. Undergrounding. The system shall be constructed underground wherever economically feasible. 1. The Grantee shall initially place all lines and cables under- ground where.all lines of the electric and telephone companies are initially underground. In all cases where adequate space exists to permit the Grantee to feasibly share existing under- ground facilities with the electric and telephone companies, such companies and the Grantee shall negotiate to share the facilities at reasonable cost. 2. On a cost -shared basis, the Grantee shall place existing aerial lines and cables underground in areae where the electric and telephone companies place all their plant underground during the term of the permit. 3. All new lines and cable shall be placed underground by the Grantee, in areas where allelectric and telephone lines are underground. In all cases where adequate space exists to permit the Grantee to feasibly share existing underground facilities with the electric and telephone companies, such companies and the Grantor shall negotiate to share the facilities at reasonable cost. 4. The Grantor shall assist the Grantee in all possible ways to con- clude successful negotiations with the electric and telephone com- panies as such negotiations become necessary for this purpose. C. Safety and Damage Requirements. The Grantee's transmission and distri- bution system, poles, wires, and appurtenances shall be located, erected and maintained so as not to endanger or interfere with the lives of persons, or to interfere with improvements the City may deem proper to make, or to hinder or obstruct the free use of the streets, alleys, bridges, or other public property. Removal of poles or equipment when necessary to avoid such interference will be at the company's expense. 1. The Grantee shall, at all times, employ ordinary care and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likly to cause damage, injury, or nuisance to the public or to employees of the Grantee. 2. The Grantee shall install and maintain its wires, cables, fixtures, and other equipment in accordance with the requirements of the Electrical Code of the Grantor, and in such manner that they will not interfere with any installations of the Grantor or any public utility. 3. All lines, equipment, and connections in, over, under, and upon the streets and public ways in the City wherever situated or located, shall at all times be kept and maintained in a safe and suitable condition, and in good order and repair. MIC.Nnn LMLD By JORM MICR(ILAB W; uiUi iLi4i.O BY JURM MICkULAB CtUHt< RNYiW AIIu tet.. �-•�� ��" D. Erection of Poles Prohibited. The Grantee shall not erect, for any reason, any pole on or along any street or public way of the City, except as may be reasonably required or necessary to fill small gaps in the existing aerial utility systems, and only with the advance written approval of the Grantor. (Nothing in this provision shall be construed to prohibit the use of existing poles, provided what satin- Cayeye factory use agreements are entered into between the Grantee and the owners of said poles. The Grantor shall assist the Grantee, in all possible ways, in arranging the necessary pole use agreements.) E. Use of Streets, Pole Attachments. 1. All transmission and distribution structures, lines and equipment erected by the System within the City shall be so located as to cause minimum interference with the proper use of streets, alleys I and other public ways and places, and to cause minimum interference I with the rights and reasonable convenience of property owners who join any of the said street, alleys or other public ways and places. 2. In case of disturbance of any street, sidewalk, alley, public way or paved area, the System shall, at its own cost and expense and in a manner approved by the City, replace and restore such street, sidewalk, alley, public way or paved area in as good a condition as before the work involving ouch disturbance was done. 3. If at any time during the period of the franchise the City shall lawfully elect to alter or change the grade of any street, sidewalk, alley or other public way, the System, upon reasonable notice by the City shall remove, relay and relocate its poles, wires, cables, underground conduits, manholes and other fixtures at its own expense. 4. Any poles or other fixtures placed in any public way by the System shall be placed in such manner as to comply with all requirements of the City. 5. The System shall, on the request of any person holding a building moving permit issued by the City, temporarily raise or lower its wires to permit the moving of buildings. The expense of such tem- porary removal or raising or lowering of wires shall be paid by the person requesting the same, and the System shall have the authority to require such payment in advance. The System shall be given not lees than forty-eight (48) hours advance notice to arrange for such temporary wire changes. 6. The System shall have the authority to trim trees upon and over- hanging streets, alleys, sidewalks and public ways and places of the City so as to prevent the branches of such trees from coming in contact with the wires and cables of the System, except that at the option of the City, such trimming may be done by it or under its supervision and direction at the expense of the System. 7. In all sections of the City where the cables, wires or other like facilities of public utilities are placed underground, the System shall place its cables, wires or other like facilities underground cover to the maximum extent that existing technology reasonably permits the System to do so. 8. The System shall provide plans and specifications for all construc- tion withinOty, streets, alleys or other public ways and places to the +:sG'aiyat—.i=e iier�a-awa :re£fie for bheir review at least 30 days prior to start of construction. The approval of both MUM wain Be JORM MICROLAB rmN; . "',, 1•IiL1%OJ iLMLU BY JORM MICROLAB CLUAit i<AF1Lt AhJ UL� departments shall be necessary before construction commences. This provision shall apply to each construction sequence if the construc- tion is accomplished in phases. 9. No poles or other wire -holding structures shall be erected by the System without pp" Y prior approval of the with regard to location, height, type and any other pertinent aspect. However, no location of any pole or wire -holding structure of the Syst;a shall be a vested interest and such poles or structures shall be removed or modified by the System at its own expense whenever the Beard -determines that the public convenience would be enhanced thereby."r°meR. 10. Where poles or other wire -holding structures already existing for use in serving the City are available for use by the System, but.it does not make arrangement for such use, the `•Beard- may require the System to use su,;h poles and structures if it determines that the public convenience would be enhanced thereby and the terms of the use available to the System are just and reasonable. 11. Where the City or a public utility serving the City desires to make use of the poles or other wire -holding structures of the System,, .. •, but agreement therefore with the System cannot be reached, the -Board may require the System to.permit such use for such consideration and upon such terms as.the Bessd shall determine to be just and reason- able, if the Deafr2 determines that the use would enhance the public convenience and would not unduly interfere with the System's opera- tions. F. Repair of Streets and Public Ways. Any and all streets and public ways which are disturbed or damaged during the construction, operation, main- tenance, or reconstruction of the Cable Communications System, shall be promptly repaired by the Grantee, at its expense, and to the satisfaction of the Grantor. G. Construction Standards. The Grantee shall strictly adhere to all Building and Zoning codes currently or hereafter in force in the City. The Grantee shall arrange its lines, cables, and other appurtenances, on both public and private property, in such a manner as to cause no unreasonable inter- ference with the use of said public or private property by any person. In the event of such interference, the Grantor may require the removal of the Grantee's lines, cables, and appurtenances from the property in question. Prat. Yttuc'et+ —.j .! iF:. re—:t qh, Crn. C... 0, .. �I t.4..d: ., nr""L •t .r : 1,..1 ., , H. Revocation.-Priorte-the-granting-of-thir Emit -klae-eommiasion_shed-l- have adopted construction-standards-in-sword-viththe stat-of;e-art. Failure to construct the System according to design standards shall be cause for revoking the permit. eta re. t',. r'• e I. Annual Inspection. The Commission shall secure an annual inspection of the System to assure compliance with high standards. MILROI ILMID RY ' JORM MICR46LAS fr 9qn 1+: ^: �� •���. '101'115 Miu<Ur iLA.0 by JOkM MICROLAB xi SERVICES TO BE PROVIDED. A. Basic Subscriber Service. The Grantee shall provide all subscribers who request Basic Subscriber Service with that service at the fair and established rates as provided for in Section 9tq'SY' The Basic Subscriber Service shall include: 1. In accordance with FCC Regulations a minimum of: - Three network off -the -air signals. (Ex: Channels 2, 7, and 9) - Two duplicate off -the -air signals. (Ex: Channels 4 and 6) - One educational off -the -air signal. (Ex: Channel 12) - Two independent off -the -air signals. (Ex: from one or both of the two closest such markets in Minneapolis, Chicago and/or St. Louis) - A free educational channel, a governmental channel and a public access channel for cablecasting. - One local origination channel. - Such other channels as possible. (Ex: Channels 5 and S) 2. Additional educational, governmental and public access channels when a viable plan for their use is presented. 3. Subject to permission of the licensed operator of Channel 12, additional off -the -air educational channels. (Ex: Minneapolis, Chicago and/or St. Louie) 4. FM Signals. a. There shall be no maximum number of FM signals which may be carried by the system. b. Minimum Signals - The following signals shall be the minimums carried by the System: (1) Any stations licensed for broadcast within the communi- ties which serve the System with primary TV signals and which are affiliated with National Public Radio, or are non-commercial or educational stations. (2) In addition, It least one station from each community which suppliel TV signal shall be carried. C. So long as there is requested use, the System shall maintain one FM signal as a local access facility, for use by the public, local government and educational authority, under the same general rules as apply to access cablecasting. d. So long as economically feasible, the System shall maintain one FM signal of general listening music without commercial interruptions. e. Insofar as possible, the signals carried shall be selected as to provide as broad a variety of programming as possible. i 141CR011L14L11 BY DORM MICRbLAB 1Q0 Pnrll' . "F1 1401N1 Vl i t, i<Ur iLMLJ by JUNM MICkOLA6 LL,)An RAPWl HIiU JL.. ',,. •• f. All of the above notwithstanding, no off -the -air signal need be carried which in not sufficient in strength at the System head -end to provide adequate signal strength. g. Minimum facilities shall consist of: (1) Studio (not necessarily separate from TV studio). (2) Sufficient microphones for cablecast of up to and including small groups (approximately 6 people). (3) Equipment for receiving and cablecasting telephone calls. (4) Equipment for playing all coamlonly current prerecorded materials over the cable. 5. The University of Iowa a minimum of three channels, if requested, subject to a satisfactory arrangement. 6. A combination or separate channel(s) for weather, stock informa- tion and news. 7. Transmission of foreign stations when economically feasible. B. Local Origination Channel. The Grantee shall operate a high-quality, professionally staffed, studio for the purpose of providing cablecast programming of a local nature, as well as selected sports and cultural events of interest to Iowa City citizens. The emphasis for this channel shall be on providing high-quality programming that is unavailable to Iowa City viewers on broadcast television channels. This channel may be supported by advertising spots at natural station breaks, as provided by the FCC. C. Local Government Access Channel. The Grantee shall provide a channel for the use of the Grantor at no charge to the Grantor, as provided by the FCC. D. Educational Access Channels. The Grantee shall provide a channel for the use of the local educational institutions at no charge to those institu- tions, as provided by the FCC. In addition, the Grantee shall provide, on an experimental basis, three 43) private channels for the use of the University of Iowa. Said channels may be utilized by the Iowa City Public Schools at all times when the channels are not in use by the University of Iowa. if the University of Iowa is not using each of the three (3) channels at least two (2) hours per day, five (5) days per week by the first scheduled renegotiation session, the channels shall revert to the full control of the Grantee at the end of the fifth (5th) year of this permit. During the experimental period prior to the first renegotiation session, the Grantee shall make no charge for these channels. The Grantee shall make every effort during this period to provide advice and technical expertise to the Iowa City Public Schools to aid in the utilization of these channels. E. Public Access Channel. The Grantee shall make one channel available to the public as required by the FCC. Said channel shall be governed by a strong and independent group of citizens, as provided in section V., Iowa City Corporation for Public Cablecasting. The Grantee shall make a studio and production equipment available for programmers of this channel. ' 1,1KRUIILMED By 1 JORM MICR( LAB ,I1AV P)l II . ^II .-MI'Ir'. N•U,wriLMw By JURM MILkULAB LLUAK kArij, AiW �L, . F. Leased Access Channels. The Grantee shall make all of the ramaininer unused channels available for lease, on a first-come, first-served basis, at fair and published rates, as provided in the section entitled "Regulation of Rates". Residents of Iowa City shall be given preference in the use of these channels. G. Additional Access Channels. Whenever any or all of the access channels of one type, except the Public Access channel, are in use during eighty percent (806) of the weekdays (Monday through Friday) for eighty per- cent (806) of the time during any consecutive three-hour period for six (6) consecutive weeks, the Grantee shall make an additional access channel of that type available within six (6) months. The Grantee may make 4e such additional charges as may be permi"A E-2 this 9-904pe, an well tted by the FCC. H. Additional Services. The Grantee shall make such additional Eadie, services available as are requested by subscribers and programmers who are willing to pay the fair and established rates for such services, provided that such services are feasible. -Ef-ne _such+ rales ev{al 'hsdanrh a service,/ _ _ established -in the section of-this_psrymLt_aaUtjaA "Changesi�� shall apply. The Grantee -shall �derLake.to apply"*nr a�.snrt o£--Compliaaoe-at-wa l - flazait_thdi eia1On. &-a apeoifio .additional-eerv4gs._ I. Digital Signals. The Grantee shall provide, as an additional service, an interactive computer information transfer network at such time as subscribers are identified and suitable contracts are negotiated. J. Fixed Studio Facilities. The Grantee shall make available at least one fixed studio facility for the Local Origination channel and at least one fixed studio facility for the Public Access channel. K. Mobile Production Facility. The Grantee shall have available one mobile production facility (van) for the Local Origination channel. Said mobile production facility shall be made available to public and educational groups at the discretion of the Grantee. L. Programming. The Grantee shall provide high-quality programming on the Local Origination channel and during the blackout periods on im- ported channels, as economically feasible. To the greatest extent possible, such programming shall be either locally produced or selected from video tapes produced by the PBS, NIT, BBC, CBC, NHK, and other sources of cultural and educational programming. At least fifty percent (506) of such programming shall be locally produced. ,ginml cc. M. Specialized Services. In any cable system the frenehiee must obtain a permit from the cable commission to provide a discreet service that will not be available to all subscribers. All requests shall demonstrate that the services are in the public interest and will not affect the system's ability to deliver services to other users and subscribers. I416MI KITED or JORM MICR6LA6 P11L, t(Ul !LMLO BY JURM MILRULAB • LLUAk RAPm AIIU OLI L- N. Switching Device. The Grantee shall provide on request and without additional charge a switching device allowing a subscriber to use his own television antenna as he chooses. The Grantee shall not be permitted to require the removal, nor offer to remove any existing antenna as a condition of providing cable services. 0. Continuity of Service Mandatory. It shall be the right of all subscribers to receive all available services insofar as their financial and other obligations to the Grantee are honored. In the event that the Grantee elects to overbuild, rebuild, modify, or sell the System, or the Grantor revokes or fails to renew this permit, or the Grantor elects to purchase the System, the Grantee shall do everything in its power to ensure that all subscribers receive continuous, uninterrupted service regardless of the circumstances. In the event of purchase by the Grantor, or a change of Grantee, the current Grantee shall cooperate with the City, or with a representative appointed by the Grantor to operate the System for a temporary period, in maintaining continuity of service to all subscribers. 9 141CROFILMED By JORM MICRbLAB rmnu e,��^"' nr�, ianr+rc MiwtUriLi4LU BY JORM MICROLAB XII LLUAR RAPiU�) At)U ULA �U: L_, RATES. A. Intent. It is the intent of the Grantor to gradually reduce the rates for Basic Subscriber Service during the term of this permit to the extent that such reductions are financially feasible and fair to all parties. Such reductions shall be discussed at every renegotiation session provided for in this permit. Such reductions shall be authorized as additional sources of revenue, such as Leased Channel fees, Pay Television fees, and Digital Service fees, amount to increasingly larger portions of the total revenues of the Grantee and as the capital invest- ment is amortized. B. Charges Permitted and Regulated. The Grantee may make such charges for services provided to subscribers as are permitted by this permit or by subsequent approval of the Grantor, expressed by resolution. The Grantee shall receive no remuneration whatsoever from its subscribers for or in connection with any service provided to subscribers without approval of the Grantor, expressed by resolution. New services are encouraged and reasonable charges for such new services shall not be unreasonably limited or denied. The Grantor shall maintain the right to establish, review or modify rates for all services. C. Schedule of Rates. 1. The initial schedule of rates to be utilized by the Grantee shall be a maximum of: a. Monthly Subscriber Rates: First Outlet - $5.00 per month Second Outlet - $1.00 per month b. Installation Charge: First - $15.00 Others - $2.50 C. Re -connect Charge: First - $10.00 Others - free (unless moved) d. Rates for multiple apartmentE,hotels, motels and non -residences: 1 - $5.00 Next 9 - $3.75 Next 10 - $2.50 All over 20 - $2.00 All over 100 - By negotiation Additional outlets in a single apartment - $1.00. The above rates apply only where all outlets are on the same premises, under one ownership and with billing to one customer. 2. All rates shall be published and non-discriminatory. Nothing in this provision shall be construed to prohibit the reduction or waiving of charges in conjunction with promotional campaigns for the purpose of attracting subscribers, nor shall this provision be interpreted to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any subscriber or programmer included within a particular classification shall be entitled. I4ICUI-ILITI) OY ' JORM MICR+LAB rrpAP VAI'! " - ?1 1'd0I'V9 4L uwi �LALi by JOkN MlCkOLAb LLJAI< D. Changes in Rates. Changes in rates for Basic Subscriber service shall be authorized by the Grantor only after consideration at the scheduled renegotiation sessions provided for in the section of this permit entitled "Renegotiation Provisions". - ne nerea s ` -`-a for_the-fiT,s - soo--yaars.-Ghangaa--in -- ��•-•-___, 6eavieer or for--naw-eesvicoa-maybe- authorized -on iy^-after-a-scheduled or -special _xaaagntiat-ien-eeealeer, Such changes in rates shall be adopted by the Grantor, by written resolution, only after a public hearing which shall be announced by written notice published in a newspaper of general cir- culation at least ten (10) days before the date of the hearing. A request for a change in rates may be initiated by either the Grantee or the Grantor. Surh request shall be a matter of public record and shall be accompanied by written justification for the change. E. Adiustments in Rates for Low Income. The Grantee may with concurrence from the Commission provide lower rates for residents of city housing programs and/or low income and/or elderly persons; in light of its economic feasibility and the desire for high penetration. F. Special Rates for Non-profit Corporations. For the purpose of identi- fying interest in additional channel utilization, for a period of time up to the first renegotiation session, any Iowa non-profit corporation, or group of non-profit corporations, that can demonstrate support by petition signed by no fewer than fifteen percent (15%) of the qualified electors of the City shall, within two (2) months after the validation of said petition, be provided the use of one channel, or a portion of a channel, at the annual rate of one dollar ($1.00) per year. Said non-profit corporation shall reimburse the Grantee for the actual expense of time and materials required to make the channel available. Said non-profit corporation shall demonstrate initially and on a contin- uing basis that the channel will be programmed by said corporation for a minimum of twenty one (21) hours per week, of which a minimum of four- teen (14) hours shall be locally produced. If the number of hours of programming falls below two (2) hours in any one day, the Corporation for Public Cablecasting shall notify the non-profit corporation that it has not met the required minimum number of programming hours. The third such notification in any thirty -day period shall constitute a revocation of the authorization for said non-profit corporation to use the channel at the discounted rate. Unused portions of the channel may be utilized by the Grantee for such purposes as it deems appropriate. No commercial advertising shall be permitted the non-profit corporation in connection with its programing pursuant to this section. G. Advance Charges and Deposits. 1. The Grantee may require subscribers to pay for each month of basic service in advance at the beginning of each month. No other advance payment or deposit of any kind shall be required by the Grantee for Basic Subscriber Service. No deposit or advance payment of any kind shall be charged for the provision of any converter without prior approval of the Grantor. Additional advance payments may be made available, as an option, by the Grantee to subscribers. Nothing in this provision shall be con- strued to prohibit charges for initial installation and reconnec- tion. MKIWI IU4110 By JoRM MICR6LAB N; iWI ILISLu BY JURM 1-11CkULA6 LLUAI< kAr 1 U ;1;111 JL.. 2. The Grantee shall apply the policies set forth in the pre- ceding section with regard to advance charges and deposits for PM, AM, and short wave services. 3. The Grantee may make available or require advance charges or deposits for various Additional Services, --`-- sholl h veauthorised-s etion-o Permitted-and-Ra92a3ated".._ H. Installation and Reconnection. Except as otherwise provided elsewhere in this permit, the Grantee may make a charge to subscribers for the installation of service outlets and for the reconnection of service outlets. The rates for such connection or reconnection shall be author- ized by the Grantor as provided in the section entitled "Charges Per- mitted and Regulated". The reconnection fee may include unpaid charges owed by the subscriber. The Grantee may waive all or a portion of such charges for connection or reconnection, as provided in the section entitled "Schedule of Rates". I. Disconnection. There shall be no charge for disconnection of any installation or outlet. If any subscriber fails to pay a properly due monthly subscriber fee, or any other properly due fee or charge, the Grantee may disconnect the subscriber's service outlet. Such disconnection shall not be effected until sixty (60) days after the due date of said delinquent fee or charge, or until ten (10) days after adequate written notice of. the intent to disconnect has been delivered to the subscriber in question. After disconnection, upon payment of the delinquent fee or charge and the payment of a reconnection charge, the Grantee shallpromptly reinstate the subscriber's cable service. J. Refunds to Subscribers and Programmers. 1. If the Grantee fails to provide any material service requested by a subscriber or programmer, the Grantee shall, after adequate notification and being afforded the opportunity to provide the service, promptly refund all deposits or advance charges paid for the service in question by said subscriber or programmer. 2. If any subscriber terminates any monthly service during the first twelve (12) months of said service because of the failure of the Grantee to render the service in accordance with the standards set forth in this permit, the Grantee shall refund to such sub- scriber an amount equal to the installation or reconnection charges paid by the subscriber multiplied by the fraction of the twelve (12) month period for which the dubscriber will not be receiving service. In the event that said subscriber has made an annual payment in advance, a similar portion of said payment shall be refunded by the Grantee. Disputes arising from the enforcement of this provision shall be resolved as provided in the section of this perndt entitled "Maintenance and Complaints". 3. If any subscriber terminates, for personal reasons, any monthly service prior to the end of a prepaid period, a prorata portion of any prepaid subscriber service fee, using the number of days as a basis, shall be refunded to the subscriber by the Grantee. I4KNI ILI.11D BY JORM MICR(�LAB MILKUiILMiU BY JORM MICkOLAB • CEDAX kAFIu.) AND A, K. Free Service Outlets. The Grantee may provide free service outlets for public buildings and school buildings in the City. L. Free Connections to the System. The Grantee shall provide one free connection to the system for the studios of each of the following agencies% city of Iowa City, the Iowa City Public School System, the University of Iowa, and other appropriate educational institutions and non-profit corporations as determined by the Commission. MlutWi ILF1Lu by JORM MICROLAB CEOAt< RAFWS A110 A XIII. TECHNICAL STANDARDS. A. Performance Standards. The Grantee shall construct, operate, maintain, and reconstruct the System in accordance with the most recent technical performance standards of the FCC or those adopted by the Commission, and made a part hereof, whichever are the more stringent. B. Performance Teets. The Grantee shall conduct various performance tests annually, quarterly, and on a daily basis. The exact nature of these teats, as well as rules, regulations, and procedures therefore, shall be, worked out by the Commission. C. Adoption. Prior to the granting of this permit the Commission shall have adopted technical standards, rules, regulations and procedures. D. Updating of Standards. The Cosmission shall update the technical standards to conform to the "highest state-of-the-art" in the field of cable conmuni- !-I!L, l 1C'iLu by JORM 141CkOLAB I.LUAtf IiAY 1 Jj A;iO ULA .., .. . XIV. OPERATIONAL AND MAINTENANCE PROVISIONS. A. Maintenance and Complaints. 1. The Grantee shall put, keep, and maintain all parts of the Cable Communications system in good condition throughout the entire period of this permit. 2. The Grantee shall render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the system. 3. The Grantee shall maintain an office in the City, which shall be open during all usual business hours, have a publicly listed tele- phone, and be so operated that complaints and requests for repairs or adjustments may be received on a 24-hour basis. 4. The Grantee shall maintain a repair and troubleshooting force capable of responding to subscriber complaints or requests for service within 24 hours after receipt of the complaint or request. No charge shall be made to the subscriber for this service. 5. The Grantor shall ensure that all subscribers, programmers, and members of the general public have recourse to a satisfactory hearing of any complaints, where there is evidence that the Grantee has not settled the complaint to the satisfaction of the person initiating the complaint. The Commission shall work closely with the Grantor, the Grantee, and members of the public, to establish procedures for handling and settling complaints. The Commission shall adopt prior to the granting of a permit a set of rules, regulations, and proce- dures concerning the handling and Battling of complaints. h LoPy i{ t4c L or.. Plo�ni' �<o[r.IgYrt ar[ 7r V<_'�•+ m.l Su'n t: i�N<v3 n! r:,..• e3 'nre ' B. Communications with Regulatory Agencies. Copies of all petitions, appli- cations, communications, and reports submitted by the Grantee to the Federal Communications Commission, Securities and Exchange Commission, or any other Federal or State regulatory commission or agency having jurisdiction in respect to any matters affecting cable communications operations authorized pursuant to this permit, shall also be submitted simultaneously to the Commission. C. Reports. 1. Annual Report. No later than March 31 of each year, the Grantee shall present a written report to the Grantor which shall include: (1) A summary of the previous year's activities, (2) a summary of complaints received and handled, (3) a reprint of the grantee's initial projected cost and revenue estimates, (4) a current financial statement for all years since the beginning of the permit, in the same format as the initial projected cost and revenue estimates, (5) a detailed explanation of the differences between the initial estimates and the current financial statement, (6) a revised set of cost and revenue estimates for the ten (10) years following the year reported on in the Annual Report, and (7) such other topics as the Commission may direct. The Annual Report shall be presented at a public hearing, to be held no earlier than ten (10) days T • :41CROIILIIED By JORM MICR.6LA9 rronn p:,r� � 'nn19f `. 1'I:LI(UFILMLLj BY JORM 141CkOLAB T • LLUAH RAPIUu AND UL V.nL.. .•, following submission of the report, at which hearing the Grantee shall summarize the contents of the report, and the Grantor and members of the general public may comment thereon. 2. General Reports. The Grantee shall prepare and furnish to the Grantor, at the times and in the form prescribed by the Cormission, such reports with respect to its operation, affairs, transactions, or property, as'may be reasonably necessary to appropriate to the per- formance of any of the rights, functions or duties of the Grantor in connection with this permit. D. Receiver Sales and Service Prohibited. The Grantee shall not engage in the business of selling, servicing, installing, or leasing television or radio receivers, nor will the Grantee engage directly or indirectly in the referral to any individual or business. 141Cnnnu•un By DORM MICR+LAB r�UN; Vnvl P`. p(S 51011![5 N,;LIWl L4i.0 (sY JURM MlCkOLAu LLUhl< kAriJ, ,ihu XV FINANCIAL AND INSURANCE PROVISIONS. A. Payment to the Grantor. 1. As compensation for the permit granted herein and in consideration of permission to use the streets and public ways of the City and the Service Area for the construction, operation, maintenance, and recon- struction, of a Cable Communications System within the City, the Grantee shall pay to the Grantor an annual amount equal to three percent (38) of the Grantee's gross annual subscriber revenues from all sources attributable to the operations of the Grantee within the City. In the event that the FCC, in the future, permits total gross annual revenues from all sources to become the basis for com- puting this fee, such basis shall automatically be utilized herein. All funds received pursuant to this subsection shall be deposited into the General Fund of the Grantor. 2. The City shall utilize these funds for the eahaneement-arra regulation of the System, -thb- •sidiaation-of low and modsrnta-income-cubacribasa.-or-sthet werth7l -pxog�ma.anaociatad-with-the-3pstem:-4t-is Undosatood-that-€unda- from additional-servicer-ean-a-lae ba--ue«3•to-auPpork the&s-acti-VL- {-ia�7{Ia G•rt a{ Crntn11#.Ts a.'A ,rc.fJ; disF.itf wl-,11 Yti"la it+� totPt. 3. Payments due the Grantor under this provision shall be computed quar- terly, for the preceding quarter, as of March 31, June 30, September 30, and December 31. Each quarterly payment shall be due and payable no later than thirty (30) days after the dates listed in the previous sentence. Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be required by the Grantor. 4. No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the Grantor may have for further or additional sums payable under the provisions of this permit. All amounts paid shall be subject to audit and recom- putation by the Grantor. S. No payment shall be considered a tax. 6. If payment is not sufficient to cover the regulatory cost of the Grantor, the Grantee shall pay such additional amounts as necessary to cover the regulatory cost. B. Payment to Support the Public Access Channel. In consideration of the tremendous opportunity for community expression and service provided by the Public Access channel, and in recognition of the need to provide a measure of financial independence for that channel, the Grantee shall pay into an account established by or in favor of the Iowa City Public Cablecasting Corporation, hereinafter established and defined, an annual amount equal to of the Grantee's gross annual subscriber revenues from all sources attributable to the operations of the Grantee within the City or an amount of , whichever is greater. The rules for computation, reporting, and audit established in the provision entitled "Payment to the Grantor" shall apply to this payment in support of the public access channel. :41(:R01 ILMLD BY JORM MICRbLAB MiI(UIiLALU BY JORM MILWLAb E E. • LtUF�i< i<ANIJ:, ,{Nil �L� ...�-.. •. Additional Public Access Channel Support. It is the intent of the Grantor that the Iowa City Public Cablecasting Corporation derive a portion of its financial support directly from the citizens of Iowa City. To this end the Directors of the Corporation may utilize any means of attracting citizen support deemed advisable by the Directors. The Directors may also apply for and expend any funds received from gr,,,nts from F,%,leral, State, or private funding agencies. The Council shall provide initial funding in support of the Public Access channel, as authorized hereinafter, and the Council shall duly consider any requests for additional funding support which the Directors may make from time to time. Such requests shall be reviewed by the Council in conjunction with the stated intent of the Council to preserve the independence of the Public Access channel. Security Deposit. Upon the effective date of this permit, the Grantee shall deposit into a bank account, established by the Grantor for that purpose, the amount of three thousand five hundred dollars ($3,500) in cash. Said amount shall remain on deposit throughout the construction period, shall draw interest at the current rate paid by the Bank, and shall be used to pay any fine levied by the Grantor during that period for failure by the Grantee to comply with any provisions of this permit, the Permit Agreement, or applicable law, as provided in the section entitled "Fines and Reim- bursements". Fines and Reimbursements. 1. During the Initial Construction Period, the Grantee shall be fined one hundred dollars ($100) per day for each day during which there occurs a violation by the Grantee of any provision of this permit, the Permit Agreement, or applicable law. 2. Such fines shall not be levied if the violation is the result of FCC delay in granting a Certificate of Compliance, an act of God, or any reasonably unforeseeable occurrence beyond the control of the Grantee. The Grantee shall promptly notify the Grantor upon becoming aware of any such problem. 3. Such fines shall be charged against the Security Deposit provided for herein, and amounts sufficient to pay all fines shall be with- drawn by the Grantor from the account established for the Security Deposit. 4. Said withdrawals shall be effected only after the Grantee has been notified for five (5) consecutive days of one or more violations without satisfying the Grantor that a significant effort is being made to rectify the problem. Upon the fiftk (5th) consecutive day of such notification, or upon the following business day, as the case may be, the Grantor shall effect the withdrawal of all fines, retroactive to the first consecutive day of notification, and the Grantor shall notify the Grantee of the withdrawal. If the problem is rectified, or the Grantee shows proof that the problem is the result of some cause beyond its control, prior to the fiftH (5th) consecutive day, then the Grantor shall not collect any fine for such violation. M ICROI ILMU) By JORM MICROLn6 IdiLifM iL?1L.o BY JURI1 MICkULAu JLDAI( kAI'101 JL -• - 5. Once the Grantor has withdrawn any amount from the Security Deposit, such amount shall not be refunded to the Grantee. 6. Within thirty (30) days after notice to it that any amount has been withdrawn from the Security Deposit, the Grantee shall show proof to the Grantor that an amount equal to the amount of the total with- drawal has been deposited into the bank account established for that purpose. F. Refund of Security Deposit. Upon final and satisfactory completion by the Grantee of all of the requirements of section X. entitled "Construc- tion" of this permit, the Grantor shall refund to the Grantee the entire current balance of the bank account established for the Security Deposit. Such refund shall include the original balance plus accumulated interest. G. Faithful Performance Bond. Upon the effective date of this permit, the Grantee shall furnish Proof of the posting of a faithful performance bond running to the Grantor, with good and sufficient surety approved by the Grantor, in the penal sum. of twenty-five thousand dollars ($25,000), conditioned that the Grantee shall well and truly observe, fulfill, and perform each term and condition of this permit and that in case of any breach of condition of the bond, the amount thereof rshall for a a recovdamagerable ffrom the principal and surety thereof by the ly observe suiting any and rovision of this permit. Such wbond shalell and l d the failure of the be main ainedby perform any p the Grantee throughout the term of this permit. Written evidence of payment of required premiums shall be filed and maintained with the City Manager H. Damages and Dafenee. 1. The Grantee shall pay all damages and penalties which the Grantor may legally be required to pay as a result of the exercise of this permit. These damages and penalties shall include, but shall not be limited to, damages arising out of copyright infringements, defama- tion, and all other damages arising out of the construction, operation, on of ons auSystem intenance or herein, tlwhether ior notthany Cacso tormissionicomplained of is authorized, allowed, or prohibited by this permit. 2. The Grantee shall pay all expenses incurred by the Grantor in defend- ing itself with regard to all damages and penalties mentioned in sec- tion 1. above. These expenses shall include all out-of-pocket expenses, such asattorney lees, and shall also includdttorneysthe asonahle value of any services rendered by the City atY bkekx assistants, or any employees of the City -or -6au+tY- by tor 3. tionGrantee the suubmissionlanddefensees incurred application for anCertiec- ficate of Compliance filed with the FCC by the Grantee. I. Liability and indemnification. m of this 1 liabilityeinsurance ainsuring the uGrantee with ghout the rregard to allmdamages mentioned in the section entitled "Damages and Defense" above, in alcaun aero BY JORM MICRmLAB w: !LMLL) by JORM MICkOLAB ( LU:U< RANiu; Ai1J the minimum amounts of: $300,000 for bodily injury or death to any one person, $5oo,000 for bodily injury or death resulting from any one accident, $300,000 for property damage resulting from any one accident, and in addition to the above stated minimum amounts, excessive liability coverage to a maximum amount of five (5) million dollars. 2. Upon the effective date of this permit, the Grantee shall furnish proof to the Grantor that a satisfactory insurance policy has been obtained. Said insurance policy shall be approved by the commission and such insurance policy, along with written evidence of payment of required premiums, shall be filed and maintained with the Commission. J. Coats of Consultant. As necessary to aid in the analysis of all matters relative to this permit, the Grantor, in cooperation with the Grantee, shall be entitled to employ the services of a consultant. All reasonable fees of the consultant incurred by the Grantor in this regard shall be equally borne by.the Grantee and the Grantor, regardless of the outcome of any specific otany researchnder consideration. Grantorhintco nectionthis withsection shall not apply right of the Grantor to purchase the System. K. Costs of Publication of Permit. The Grantee shall pay the costs of publication of this permit, as such publication is required by law. L, Initial Costs for Consultants. The cost to the City of Iowa City in relation to the study of a cable communication system and pursuant to the issuance of this permit shall be paid to the Grantor bythe Grantee. An exact accounting of the cost to be supplied to all app for the permit. M. Projected Cost and Revenue Estimates. The projected cost and revenue estimates presented by the Grantee are to be attached to this permit, and made a part hereof. Said estimates shall provide the initial and continuing basis for comparative financial information anthe d for judging for basis, financial health of the consideration ofatheedesireofrenegotiations. theGrantor on havexmental some assurance that negotiated commitments shall be met, the relative position of the projected programming expenditures shall be maintained until the first renegotiation session. At the first renegotiation session, the value, practicability, and desirability of this procedure shall be thoroughly reviewed by both the Grantee and the Grantor. MILR01 ILI410 By ' JORM MICR(PLAB ��IIAn crtl�n9fC V10I'i�S XVI �•ll,,�wl ;L� L1 by JUHM MICkULAb ILUAK Ar'IJJ AfW PURCHASE OF THE SYSTEM. ReVOC he A. Grantor Purchase of S stele Upon atooappropriateeventn. In the t provisions of this Grantor revoke: this permit, p permit, the Grantor shall have the right to purchase the Cable Communica- tions System at a price not to exceed its then book value (that is, original cost of property less accumulated depreciation). The cook rally value shall be determined by the Gprinci les.ntor in Undercnowith circumseances accepted appraisal and accounting p P privilege e shall any valuation be made for "good will" or any right de a granted by this permit. Should athe se ebethe resolved byarbitra- of the fair value of the System, dispute tion as provided in the section of this ordinance entitled "Resolution of Disputes". The r shall he B. Grantr rig tot Ppurchase ofurchase the CableUCommunications.System Gupon oexpiration voftthis enth year this permit, permit. The Grantor shall, during the fourte initiate procedures to determine the advisabilehould1theand eaGrantorithe decide to purchase of the System by to purchase the System, it shalthe°fairso avaluet a rofethetSystemCethe iorig nal fair value. In determining cost of all tangible and intangible property, as well as the salvage value, the book valve, the replacement cost, cash flow, and valuation made er ors may be considered. Under no circumstances shall any this permit. Should for "good will" or any right or privilege granted bythe a dispute arise over the determineasaprovided ir value of in the section the dispute shall be resolved by arbitration of this ordinance entitled "Resolution of Disputes". alue. The hall ve ir ket C Grantorase ot_by therstem Systemfor aforMarfairVmarket value attane time.haThe method for determining the fair value ofxtiie ratyot10 em shall be like section XV I.B. rant u se of S st D. Sale of System Mandatory. In the event that the Grantor elects to Pur - ...... e SysteM, or the permit is awarded to a new Grantee upon expirachase - tion of the term of this permit, the current Grantee, shallicablel sell theThe System to the Grantor or to the new Grantee, which! is app price for such sale shall be the fair value of the System, as defined in the section of this permit entitled "Granby f arbitration asystem n provided in Expiration". Disputes shall be resolved by the section entitled "Resolution of Disputes". ase of System Mandatory. In order to assure necessary or required E. purch investment in the System during the later years of the permit, and s of this permit are followed by provided that all terms and provision the Grantee throughout the term of the permit, and as feasible, the Grantor shall ensure that the System be purchased from the Grantee upon expiration of this permit. The purchaser shall be either the Grantor or a new Grantee. The purchase price shall be the fair value of the System, as defined in the section of this permit entitled "Grantor Purchase of System Upon Expiration". Disputes shall be resolved by arbitration as tion terms Of provided in the section entitled "Re Sven tthatfthisppermit ishrenew dor this section shall not apply in the extended for the current Grantee. IdICR0(I04C0 BY JORM MICROLA9 rr )AP I'M!)' . J, T)"11, XVII Miu<W iLALu BY JORM MICROLAB RIGHTS. L'LUAK kAeluj iti10 A Ri htsReserved to the Grantor. expiration of 1. Right to Purchase the System. Upon revocation or this permit, the Grantor shall have the right to purchase 'he System, Upon revocation, the purchase price shall be the cook the ase value, as defined in the on expiration, the 'Granpurchase tor hPrice asf System Upon Revocation". UP shall be the fair value, defined in the section entitle "Grantor Purchase of System Upon Expiration". The Grantee shall make it a condition of each contract entered into by it that the Grantor shall have the right to succeed to all privileges and obligations pertaining thereto. 2. Right of Inspection of Construction. The Grantor shall have the right to inspectall construction this permor ittand too make rsuch rin pec - subject to the p to ensure compliance with the tions as it shall find necessary terms of this permit and other pertinent provisions of law. t of 3, Right of intervention. The Grantor swhichhall hthe Grantee ave the his party, suit or proceeding the Grantor. and the in any oppose such intervention by and the Grantee shall not opp iration of the q. Right to Require Removal of Property. At the exp term for which this permit is granted, or upon its revocation or expiration, as provided for herein, the Grantor shall have the right to require the Grantee to remove, at its own expense, all portions of the Cable Communications System from all streets and public ways within the City. 5, The Right to Repeal• The right to repeal this permit for misuse, non-use, or the failure to comply with the provisions of this ordinance, or any other local, state, or federal laws, or FCC rules or regulations. 6 municipal services Municipal Uses- a right,torusessheieaalne4° ableaitems System for 7, Other Rights. The Grantor shall reserve all rights consistent with and all rights essential to conduct business and laws governing it care of all citizens. are for the intere g,Ri hts Reserved to the Grantee. Appeal to Grantor- Should the Granebecome disspertatisfied 1, Right any AppCommission sal the matter with any material decision or rulining ing Grantee may PP to cable communications matters, accept, reject, or modify the to the Grantor. Said Grantor may s dissatisfied such other remedies with decision of the Commiase8l, the Grantee may P dissatisfied r the bringing of action in any court of the results of such app as are available, including competent jurisdiction. III CROPI WED 6Y 1 JORM MICRbLAB �rnm, ?A1•�+�r� n4; utm iLALu by JORM 141CROLAb LtOAK kA iw Ali �� 2. Request for Service. Request for service by a subscriber shall be considered by the Grantee as a right to install cable, line, wire, amplifier, converter or other pieces of equipment at the requested property. 3. Other Rights. Other rights are a negotiable item. C. Rights of Individuals Protected. 1. Discriminatory Practices Prohibited. The Grantee shall not deny service, deny access, or otherwise discriminate against subscribers, programmers, or general citizens on the basis of race, color, religion, national origin, or sex. The Grantee shall strictly adhere to the equal employment opportunity requirements of the FCC, as expressed in Section 76.13 (a) (B) and 76.311 of Chapter 1 0£ Title 47 of the Code of Federal Regulations, which are attached hereto as Attachment and made a part hereof. The Grantee shall comply at all times with all other applicable Federal, State, City, and County laws, and all executive and administrative orders relating to non-discrimination. The Grantee shall make a positive effort to hire minority subcontrac- tors. -the reduo -- iUN-Mfth-�LOIDO t,iOnal ram - t for `6 provision -he prohfbi!-" �+ ti -. `a gra3wted- o'r or programer ..includAd :.t:_ Fk OlilaL-C1iG�;�c�v'--cishe!! be -entitled. 2. Cable Tapping Prohibited. Neither the Grantee, nor any other person, agency, or entity shall tap, or arrange for the tapping, of any cable, line, signal input device, or subscriber outlet or receiver for any purpose whatsoever. Violation shall be considered 3. Cable Monitoring Prohibited. Neither the Grantee, nor any other person, agency, or entity shall monitor, or arrange for the monitor- ing, of any cable, line, signal input device, or subscriber outlet or receiver for any purpose whatsoever, except cumulative analysis which shall be treated as public information, without the specific authorization of the Grantor, expressed by resolution, after a public hearing which shall be announced by written notice published in a newspaper of general circulation at least ten (10) days before the date of the hearing. violation shall be considered a 4. Privacy and Other Human Rights. The Grantee and the Grantor shall maintain constant vigilance with regard to possible abuses of the right of privacy or other human rights of any subscriber, programmer, or general citizen resulting from any device or signal associated with the Cable Communications System. The possibility of such abuse shall be discussed at every scheduled renegotiation session. Devices such as electronic locks, scramblers, warning lights, and others shall be provided by the Grantee as problems are identified, the technology becomes available, and reasonable financial arrangements can be made. The system shall be designed and constructed in such a manner as to prevent or detgr- invasion of privacy. Y � I41(:ROI ILK..) By 1 JORM MICRWLAB rrnnc q0IT' MiiwIWI iL?tw by JORM MICROLAb XVIII. RESOLUTION OF DISPUTES. A. Intent. It is the intent of the Grantor to provide for the orderly resolution of any controversy or dispute between the Grantee and the Grantor arising out of the enforcement or interpretation of any section • or provision of this permit, the Permit Agreement, or any rule, regula- tion, or procedure relating to cable communications matters. Fact _ finding and mediation shall be the means of resolving the great majority V of such controversies or disputes. Only those matters specifically �•-cI "'`� designated as arbitrable may be submitted to that process for binding resolution. None of these methods, however, shall be the first resort of the parties, but shall be undertaken only after reasonable time and full effort to reach agreement by negotiation. B. Fact Finding. Any controversy or dispute, upon the election of either the Grantee or the Grantor, shall be submitted to an expert individual acceptable to both parties for an investigation of the facts and a report thereof. Such fact finding shall be for the purpose of developing better information for the use of both parties and shall not be binding on either party. All fees or other expenses resulting from such fact finding shall be equally borne by both the Grantee and the Grantor. C. Mediation. Any controversy or dispute, upon the election of either the Grantee or the Grantor shall be submitted to an expert individual, accept- able to both the Grantee and the Grantor, for the purpose of facilitating discussion and receiving new perspectives on the issues and new proposals for compromise. Such mediation shall not be binding on either party. All fees or other expenses resulting from such mediation shall be equally borne by both the Grantee and the Grantor. D. Arbitration. Only those matters which are expressly arbitrable under the provisions of this permit may be submitted for arbitration. Such matters are disputes over: 1. the book value of the system, 2. the fair value of the system, 3. interconnection, and 4. revocation of this permit. Arbitrable matters may be submitted to a single expert individual, if both parties agree to do so. otherwise, arbitrable matters shall be submitted to a three-member expert panel. Arbitration shall be binding on both parties. Arbitrated matters shallbe held to have been adjudi- cated and settled, and not open, either directly or indirectly, for review, pursuant to the provisions of and the rules and procedures of the American Arbitration Association. All fees or other expenses resulting from such arbitration shall be paid by the Grantee and the Grantor as hereinafter provided. i MICROI 1010 By JORM MICR6LAB 'ILI.IIU� ILALU BY JORM MICkOLAB CtUAR RAPiuS ANU OL� i�..L. , • -•", E. Selection Procedures. 1. In the case of fact finding or mediation, both parties shall present a maximum total of three names for possible service as experts. If there is no agreement on any of the names, a judge of the District Court in and for Johnson County shall select a person to fulfill the function of expert. 2. In the case of arbitration, both parties shall agree upon the number of persons to serve on the arbitration panel. Such number shall be either one or three. If a single -member panel is agreed upon, both parties shall jointly name the person, utilizing the procedures established for fact finding and mediation. If a three-member panel is agreed upon, the membership shall be one person named by the Grantee, o,.a person named by the Grantor, and a third person named by both the Grantee and the Grantor acting jointly. Said third person shall serve as the presiding officer of the panel. If there is no agreement on the single arbitrator or the presiding officer of a three-member panel, the procedures established for fact finding and mediation shall be followed. F. Fees and Expenses. The fees of single experts and arbitrators shall be equally borne by the Grantee and the Grantor. The fee of an arbitrator who represents one of the parties shall be borne by that party. The fee of the presiding officer of an arbitration panel shall be equally borne by the Grantee and the Grantor. The expenses of fact finding and media- tion shall be equally borne by the Grantee and the Grantor. The expenses of arbitration shall be borne as determined by the arbitration panel in its award or finding, but in no event shall the Grantor be obligated for more than one-half the expenses. Tc MICRorlLMID BY i JORM MICR+LAB ffDAR unrin. of S. idn;ldit M1 L.iWW :L;!Lu by JORM I.IILROLAB LtOAIt t6d OL L-" XIX. MISCELLANEOUS PROVISIONS. A. Compliance with Laws. The Grantee shall comply with all Federal and State of Iowa laws, as well as all City and County ordinances, resolutions, rules, and regulations heretofore or hereafter adopted or established during the entire term of this permit. B. Separability. If any section of this permit is held to be invalid, such shall not affect the remaining sections of this permit. C. Captions. The captions to sections throughout this permit are intended solely to facilitate reading and reference to the sections and provisions of this permit. Such captions shall not affect the meaning or interpre- tation of this permit. D. No Recourse Against the Grantor. The Grantee shall have no recourse whatsoever against the Grantor or its officials, boards, commissions, agents, or employees for any loss, costs, expense, or damage arising out of any provision or requirement of this permit or because of the enforcement of this permit. E. Nonenforcement by the Grantor. The Grantee shall not be relieved of its obligation to comply with any of the provisions of this permit by reason of any failure of the Grantor to enforce prompt compliance. F. Permit Agreement. Upon the effective date of this permit, the Grantee shall present to the Grantor a signed and notarized agreement accepting the provisions of this permit. 1. The applicant awarded a permit by City Council Resolution shall execute a hermit agreement, agreeinq to the terms and provisions of the permit and R;quest'for Proposal_ In addition, the Grantee shall, within thirty days of the date of execution of the permit fl•`� agreement, submit his filing of an application for a Certificate of F.tir:•. Compliance with the Federal Communications Commission. Failure of the selected applicant to execute such an agreement within thirty days of the City's demand therefor, or failure to file an application for a Certificate of Compliance within the time herein required, shall be groundsfor immediate revocation of any rights the applicant may have in the permit and forfeiture of the applicant's bid bond. 2. In addition to those matters required elsewhere in this ordinance to be included in the Permit Agreement, it must contain the following expressed representations by Grantee that: a. It accepts and agrees to all of the provisions of this ordi- nance. b. The Applicant has read and examined this ordinance, accepts and agrees to all and agrees to seek from the FCC a Certifi- cate of Compliance which agrees in all parts with this. 3. The Permit Agreement shall contain such further conditions or pro- visions as may be included in the Request for Proposal and/or nego- tiated between the City and the Grantee, except that no such condi- tions or provisions shall be such as to conflict with any provisions of this ordinance or other law. In case of such conflict, or OHRO( ILI410 BY JoRM MICR(�LAB i'r 111l�.'1:'! • 1�. in I X11 � r4:.,?0Jt ;L:'4j by JORM HICkOLA6 ambiguity between any terms or provisions of the Permit Agree- ment and this ordinance, the words of this ordinance shall control. G. Dey-today Enforcement. The day-to-day enforcement of the provisions of this permit shall be the responsibility of the Commission. H. Rules Regulations, and Procedures. The Commission shall devise, pro- mulgate, and administer such reasonable rules, regulations, and proce- dures as may be required to implement the provisions of this permit, or any subsequent ordinance, ruling, contract, or agreement adopted or entered into by the Council with regard to cable communications. Such rules, regulations, and procedures shall be reasonable and confined to matters pertaining to the day-to-day enforcement of policies adopted by the Council. In the event that the Grantee becomes dissatisfied with any material rule, regulation, or procedure initiated by the Commission, the Grantee may exercise the right of appeal granted in the section of this permit entitled "Right of Appeal to Grantor". I.Employment Requirements. No Grantee shall discriminate on the basis of sex, race, national origin, religion, creed, or arrest or conviction records in hiring and promoting employees. The Grantee shall seek out and train employees so that minorities and women are represented in its employee work force. The Grantee shall file an affirmative action plan to this end annually with the Commission. This plan shall include a report of persons employed, together with their positions and salaries, by categories listed in the first sentence of this section. J. Amendments to Thie Permit. Amendments to this permit may be adopted by the Grantor after renegotiation sessions or at such times as may be mutually agreed upon by the Grantee and the Grantor. All amendments shall be adopted only after a public hearing which shall be announced by written notice published in a newspaper of general circulation at least ten (10) days before the date of hearing. K. Subsequent Action by State or Federal Agencies. Should the State of Iowa, the FCC, or any other agency of the Federal government subsequently require the Grantee to deliver any signals in addition to those required by this permit, or to perform or cease to perform any act which is consis- tent with any provisions of this permit, the Grantee shall so notify the Grantor. Upon receipt of such notification, the Grantor shall determine if a material provision of this permit is affected. Upon such determin- ation, the Grantor shall have the right to modify or amend any of the sections of this permit to such reasonable extent as may be necessary to carry out the full intent and purpose of this permit. In so doing, the requirements of the section entitled "Amendments to this Permit" shall be followed. L. Effective Date of Permit. The effective date of this permit shall be IdICROI 1LMHD BY JO RM MIC RQL A 0 N,k.,Wri LALu BY JukM 111CROLAb XX SELECTION PROCEDURE. ILUAt( kAVid, AIW OLA A. Application Form. The Commission shall develop• an application form for use by all persons and/or corporations interested in being granted a permit for the construction, maintenance and operation of a cable communications system in Iowa City, Iowa. B. Selection Criteria. The Commission shall review all applications according to a set of criteria, to be distributed with the afore- mentioned application form, and after evaluation of all factors make a recommendation to the City Council. C. Negotiable Items. Included in the application form will be negotiable items including but not limited to: 1. Length of permit (VI.C.). Maximum of 15 years. Preference for shorter term. 2. Remote orgination (IX.A.4.). Preference for creative proposals that reflect the needs of the total community. 3. Undergrounding (X.B.). Preference for undergrounding. 4. Preference to those with additional educational and service uses (section XI). 5. Schedule of Rates (XII.C). Preference for lower rates, with interest in lower rates for low income and elderly (XII.E.). 6. Free Service Outlets (XII.K.). Preference for applications that propose free service outlets, in exchange for educational programming that will benefit total community. 7. Municipal Use (XVII.A.6.). Preference for municipal uses that will benefit total community. 8. Rights of Grantee (XVII.B.3.). Additional requests will be given consideration. D. Concurrent Action. Applicants should be aware of the fact that Iowa law requires a referendum and requires that the citizens as well as the Council approvegrantinga permit for use of the righttof-ways for the purposes i9 a cable communications system prior to such a grant being made by the Council. Applicants should be aware of the fact that the vote in a referendum is not binding on the Council. T MICB0111.14CD BY ' JORM MICR16LAB C1 IMP NiunUr1LMLU by JORM MIUOLAB Changes in Public Franchise LLUAk I(At'IJJ A; IO JLC 0 0 Appendix A III.C. To read: Granting to the "Board" the right to use the rights-of- way on behalf of the City of Iowa City. IV.C. To read: To establish, revise and set rates for basic subscriber services. (Changes in rates.....etc.) V. To read: Purpose: To develop and to operate on behalf of the City of Iowa City a Cable Communications System...... . V.F. To read: To recommend changes in rates of basic subscriber services and establish all other rates consistent with the basic purposes of the cable communications system. V.I. Add: (Example: Iowa City Public Cablecasting Corporation). VI.A.2. Add: following "and areas" the phrase 1%in compliance with all laws and as deemed..." We may also wish to include an expandable defin- ition of service area (P. 63: Paragraph 63 of Clarifications of Rules). B.I. changed to be consistent with IX.B., in private provisions, plus the provision that all persons excluded need to be identified and noti- fied prior to public hearing on ordinance. (This would be consistent with proposed change Docket 20020). B.4.c. To read: Provisions to carry all signals allowable under FCC rules. (The FCC has preempted jurisdiction in this area: P.8.). I think a strong case could be made for three channels for the University of Iowa - if a planned use could be demonstrated that benefits the total system. A waiver would be necessary. (P. 25) B.4.d. After careful reading of the clarifications I think these provisions are reasonable. I do not think this is excessive amount of free equipment. (P. 17) B.4.d.6. (page 7) according to Mike Holland, an appendix - but not a part of ordinance. I suggest that this be included in our report as a recommended procedure. B.4.e.4. (page 8) change City Council to read "Board". 4.f.2. Add: This provision does not prohibit systemwide, non -individualized addressed "sweeps" or the acquisition of information for purposes of verifying system integrity, controlling return path transmissions or billing for pay services. (P. 23) B.6. (page 10) The FCC is considering the advisability of preempting the area of technical standards or imposing a moratorium on non -Federal standards. (Docket 20018) �`• Id I f.ROI ILidLD 6Y 1 JORM MICRmLAB I rMp ung^n' . 'rt°R019(c i MIL,kOrILALU BY JORM MICROLAB - 2- CEDAR RAPM AIJU uc %u:��_„ .�"• 7.b.8. (page 10) changed to read: study and establish. 7.e. (page 11) Docket 20024 suggests that a local official be designated and that all subscribers at time of hookup receive a card outlining complaint procedures. B.C. (page 13) to add: This could include a streamer on all channels for duration of emergency advising persona to turn to a designated channel. When you start referring to items such as vI.B.4.d.6. it becomes apparent that we need to sharpen our outline so as to make it easier to refer to suggestions. I will seek to work on this. Your suggestions would be helpful. MILRDEILMED BY - ' JORM MICR4�LA9 Mit,kUi il-MLL) BY JORM MICRULAB CEUAR RAP IL)� Ail U� Appendix B Changes Necessary in the Private Franchise II.C. Jurisdictional Basis - The Clarification of Rules makes it abundantly clear that the FCC can preempt jurisdictions on all matters relating to a cable communications system. IV.C.5.57. - Waiver would be needed for the Iowa City Corporation for Public Cablecasting. V. Iowa City Corporation for Public Cablecasting - There is a question as to whether or not this would-be acceptable to the FCC. It is consistent with Paragraph 16, the concept of pooled activities. It is consistent with Paragraph 17, requiring some facilities for access use and does not include an excess demand for free equipment. This section would likely require a waiver. We believe most operators would welcome this type of corporation and its assistance. V.C.10.c. 6 V.C.11.a. - These sections may need to be deleted. It is clear in Paragraph 30 that the operator is not expected to program the access channels. It is, however, reasonable to believe that the operator may contribute to the corporation for carrying out functions for which it is responsible; such as scheduling of public access, monitoring use of equipment and facilities, etc. IdICIVILMEO BY JORM MICR+LAB (FDAD VArin . pEC ROIWF4 Mli,korILMLU BY JORM MICROLAB • LEDAR RAViilS AND LJc� rw,:�.�, ..�+.• -2- VI.C. Duration - Present FCC rules limit the length of a franchise to a maximum of 15 years. The FCC is considering setting a 5 to 7 year minimum and a maximum period of up to 25 years. (Docket 20021). VI.D. Provision of Service Mandatory - Delete sentence beginning "If no rate has been..... . VII. Should read: Expiration Renewal Renegotiation and Revocation of Permit - The FCC is considering the advisability of adding specific rules regarding franchise expiration and cancellation. (Docket 20022). VII.D. Should read: Revocation - The Grantor reserves the right to revoke this permit, and all rights and privileges pertaining thereto as provided for in this permit or, in the event that: VIII. Transfer and Assessment of Permit - The FCC is considering the need for new regulations in the area of transfers of control of cable televi- sion franchises. (Docket 20023). VIII.D. Change in Control - The sentence beginning "if the Grantor does not schedule a hearing.....deamed to have consented" should be modified to require a public hearing in line with Paragraph 80. -T' I41CROFILMED BY i DORM MICR( LAB Cr,W: unrin' . ir5 iomrc, Jill I•tiwiUi ILi,iW by JORM Id1CROLAi CEDAR RAPIU'�, AND Ur_.. -3- IX.B. Territory - The FCC is considering establishing 'rules and regulations' relative to requiring additional assurances on the establishment of line extension provisions (Docket 20020). This section appears to be consistent with previous intent of the FCC. Total wiring of the City is desired. Persons excluded should be iden- tified and modified prior to public hearing. X.D. Erection of Poles Prohibited and X.E.7. are covered. X.E.B. - replace "Director of Public Works and Traffic" with "City Manager" X.E.9. - replace "Board" with "City Manager". X.E.10. - replace "Board" with "Commission". X.E.11. - replace "Board" with "Commission". X. G. Construction Standards - add the sentence "Prior to the granting of this permit the Commission shall have adopted construction standards in accord with the state-of-the-art". X.H. Revocation - delete first sentence. Should read "Failure to construct the System according to design and construction standards shall be cause for revoking the permit". I41CRnnu+m or 1 JORM MICR+LAB ff PAP. Vh rl^` �Ft n017ft htl, W ILIMLU BY JOkM MICROLAB CLDAH RAPIU� AND ut _q_ XI.A. Basic Subscriber Service - second sentence should read "The Basic Subscriber Service shall include all signals allowable under FCC rules". (Paragraph 8 makes it clear that the FCC has preempted jurisdiction in this area. Thus, subsections 1 through 7 would need to be deleted). XI.B. Local origination Channel - The FCC has not enforced the rule that all systems with over 3,500 subscribers should have a local origination channel. Since this is a desirable channel use it should be included. XI.D. Educational Access Channels - This section will need to be altered in light of the clarifications to make the providing of the channels to the University of Iowa conditioned upon the development and presentation to the FCC of a plan for the use of such that will benefit the total system. This will involve securing a waiver. h11Li(W ILHLU BY JUkM M[CkOLAB -5- LtUAk kAPlus AIIU )L X XI•H• Additional Services - delete "radio, digital, and other" and every- thing after the sentence beginning "If no such .'ate exists...... specific additional service". XI.I. Digital Signals - may need to be excluded. XI.M. Specialized Services - change "franchise" to "grantee". XI.O. Continuity of Service Mandatory - The FCC is considering specific rules regarding continuation of service (Docket 020020). This Provision appears to be consistent with proposed rules. Y MICROFILMED DY I JONM MICFIOLA13 rFoAP PAPT01, • 9F %101NE5 i MluiOlIL;'ILD BY DORM MICROLAB U DAR kAPIJS AND uL 10 XII. Rates B. Charges Permitted and Regulated - Needs to be changed. Para- graph 84 makes it clear that the Grantor rights, relating to rates, are limited to regular subscriber service. XII.D. Changes in Rates - delete sentences beginning "There shall be....... special renegotiation sessions". XII.F. Special Rates for Non -Profit Corporations - May need to be excluded, although Paragraph 35 allows for preferential rate structures for leased channels. XII.G.2. - In line with preemption of signal carriage, this could best be deleted. XII.G.3. - delete rest of sentence beginning "provide that the Grantor.....". XII.L. Free Connections to the System - It is the committee's feeling that W such provision would benefit the total system. This may, however, require a waiver. XIII. Technical Standards - The FCC is considering preempting the estab- lishment of technical standards or the imposition of a moratorium on non -Federal standards. (Docket #20018). 141 ROFILMED BY ' JORM MICR#LA9 f�9N� Pn r!n. i[C F1O 11if$ Mil,<01 iLALL) by DORM IIICROLAb • LLOAk kAPIuS AND JL, '1U.:� -7- XIV.A.3. - The FCC is considering requiring that the local official respon- sible for subscriber complaints be identified in the franchise (Docket #20024). This would mean the grantor would need to designate a person in addition to the grantee. M.A.S. - add the sentence: "A Copy of the complaint procedures is to be given to each subscriber at the time of hook-up". XV.A.1. - The fee can only be used for regulation functions. It is possible to serve a franchise fee 5%. This would require a waiver based on a proposed regulatory program. (Paragraph #93). XV.A.2. - should read: "The City shall utilize these funds for the regu- lation of the system. The cost of consultants and resolution of disputes shall be considered regulatory costs". XV.U. Payment to Support the Public Access Channel - This relates to Section V. Adjustments in this section would need to be made in light of the clarification of rules, which state the operator has no responsibility for programming of access channels. Any support would need to be related solely to responsibilities of the operator as defined by the FCC. XV.G. & XV.H. - delete references to "County Official" and "County". e. .rye t MICR0MMED 6Y DORM MICR6LA13 f�I1M n.�P I'�` • �f5 F10;9E5 I'iLRUI iLIIICU BY JORM MICROLAB LEUAR RAPiuU AND JLC r'iv .:�-. •�'•^ -B- XVI.E. Grantor Purchase of System Upon Expiration - If a 15 year permit, to be changed according to length of permit. XVII.A.6. - It would need to be demonstrated that this was of benefit to the i total system. In light of the clarification of rules this would likely not be allowed by the FCC in a private franchise. XVII.C.1. - delete sentence beginnings "Nothing in this provision " XVII.C.3. Cable Monitoring Prohibited - Such prohibition does not prohibit system- wide, non -individually addressed "sweeps" or the operator's acquisition of information for purposes of verifying system integrity controlling return path transmissions or billing for pay services (Paragraph 23). IdICRDfILIdED BY � i JORM MICR+LAB CfnAv . n(S'10mrf KIL[WiILMUU BY JORM MIGROLAB LLUAk RAP! , MU 1L -9- XIX.B. Separability - This is intended to cover possible legal loopholes. It is not the intent that the FCC issue a certificate of compliance if sections of this permit are deemed by the FCC to be invalid. It is not the intent to issue a permit unless the public interest is protected as determined solely by the grantor. XIX.K. Subsequent Action by State or Federal Agencies - The Grantor must be aware of the fact that the FCC has the power to preempt jurisdiction relating to a cable communications system once a permit has been granted and a certificate of compliance issued. XX. Selection Procedure andXX.c.l. - The FCC is considering (Docket #20019) rules in the area of public proceedings and qualifications for franchisees. XX.C.6. - See-VI.C. Subject to change (Docket #20021). XX.C.7. - Must be limited to those that benefit the total system. IdICROF ILI4CD BY ' JORM MICR6LAO f rpAP PALin'. IFS'.in!'I I -S 1-11u;01 1LALU by JUKM MICkULAb Additional Thoughts: LLUAK RAiJ� Alid ULA Appendix C I• The Clarification of Rules makes it abudantly clear that the FCC can Preempt jurisdiction on all matters relating to a cable communications system. Once a permit has been granted and a certificate of compliance obtained, the rules are subject to change by action of the FCC. it including renewal, cancellation, Standards, channel use, length of perm transfer, etc., are subject to action of the FCC. To me, this offers a strong case for municipal ownership. It is clear to me that this is not the intent of the clarifications, it is however an opinion that is reenforced over and over again as you note the changes to be made in the private franchise and as you realize that things could be changed by the FCC regardless of what is deemed in the best interest of the citizens of Iowa City. 2. If the Council concurs in our recommendation for municipal ownership then it seems to me that attention needs to be directed to take such steps as to make that posllble and feasible. Example: if there is specific legislation needed, to seek to get such enacted. 3. If the Council believes private ownership is the course to take, it would make sense to me to alter our recommendation relating to proceeding now, to a recommendation that we wait until the FCC has acted on the proposed rule changes and we know the practical implications of the clarification of rules. Q• Whichever course the city takes, it seems apparent to me that many changes in ordinance provisions will need to be made at the time of adoption in light of intensive legal work, and that it is not overly productive for us to spend a great deal of time on the ordinance provisions. In light of this, I trust that the review of the ordinance provisions will not become a time consuming task for our committee. I know the Mayor would like to receive our report in early September. Z trust that we can meet that deadline sharing with the Council the informa- tion we have gathered and our considered recommendations. 5. In light of your reactions to these materials and the ordinance provisions sent you, I will seek to draft a tentative report to the City Council and Place such in your hand prior to our next meeting. At that time we can then proceed as fast or as slow as you deem wise and according to any pro- cedure you wish to adopt. I personally, in light of the clarifications of rules, found my interest dragging. In light of the work done recently, I find myself convinced that we need to get things in shape for the Council at the earliest possible date. HICH01I U'CD B1 ' JORM MICR6LAB 14iLiWr iLAL.J 8Y JURM 141CkULAB LLUM kAViu; AND MAR 91978 ABBIE STOLFUS CITY CLERK `.,arch 9,1978 BRIGHT LIGHTA City Council box 848 Iowa cityIIowa 52240 Civic Center Iowa City, Iowa 5240 Dear Cuuncilors, Bril,ht Light Inc. is a video/tv production and distribution company deoply involved in new developments in communications technology, particularly communications satellites -- members of our company have an experiment approved by NASA -- and sophisticated cable systems such as the Columbus, Ohio, Qube system. de are affiliatedwith the National Federation of Local Cable Programmers (14FLCP), a non-profit educational and public access advocacy group. Their statement of purpose reads: Prompted by an increasing need to expand public access rights (e.g., Communication Act of 1934, CATV rulings and regulations), the NFLCP was organized in 1976 to help meet the communications needs of people on a local community level. The goals of the organization are to preserve, people's access rights, to improve access conditions, and to achieve active citizen participation in the media. To this end we aro committed to contacting and incorporating all those dedicated to the:ie principles on a non-discriminatory basis and to seeking out minority and other special interest groups whose communication needs might otherwise.be overlooked. We are pledged to uphold the inherent right of each citizen to information via all media. It is our hope to achieve these goals by serving as a center for the collection and dissemination of pertinent information; by engaging in advocacy efforts on local, regional, and national levels; and by providing support to those who seek to make information and media use more accessible to all people. It is our understanding that the Cable Television Information Center provides useful technical and legal consultation, but not s -o A/ MICRO[ ILMED 6Y ' JORM MICR40LAH rrp,Ar v.v in. . .i; . 6101'1[1. MkAUrILMLO BY JOkM MICRULAB LLUAk kAFLub ANO JLj IL�• •- extensive educational and public access law, technology and programming consultation. IIFLCP has distinguished achievements in these areas. We highly recommend the city council consider NFLCP as a consulting organization for educational and public access. Sue Buske, IJFLCP representative in Dubuque, will attend the informal city council meeting with members of Bright Light, March 13th. She will be available to answer questions then or could make a presentation at another informal session at the Council's convenience. Sincerely, Susan Paradise Presidunt, Bright Light Inc. MICROFILMED BY i JORM MICR¢LAB rrPAa PAS!!? • 9F5 6IDI;7E5 tl MAH 91978 V IALME STOLFUS CITY CLERK