HomeMy WebLinkAbout1995-10-10 Public hearingOctober 5, 1995
RICE, WILLIAMS ASSOCIATES
Mr. Drew Shaffer
Broadband Telecommunications Specialist
City of Iowa City
410 East Washington Street
Iowa City, IA 52240
Dear Drew,
I
~"" )
It was a pleasure to work with yon, Dale Helling, and Anne Burnside on the cable
television renewal negotiations. All of you should be congratulated for your excellent work on
behalf of Iowa City residents. The contract will serve local residents well as the information
highway evolves.
The cable television system will be rebuilt to a capacity of 550 MHz within two years.
This will allow up to 80 analog channels and potentially hundreds more as digital technology
becomes available. The system is spaced to allow upgrade to a 750 MHz system (100 analog
channels). Of special significance in this area is that the fiber-to-the-feeder system will
incorporate state-of-the-an telecommunications design; with fiber optic nodes serving 600 homes
or less. The small size of the fiber optic nodes will allow the system to provide a wide range
of future services. Activating upstream capacity is the key to providing future interactive
services to subscribers. The Franchise requires the Company to activate upstream capacity from
each fiber node upon sixty day notice from the City.
To ensure excellent picture quality, the City has retained the right in the Franchise to
review the system design prior to construction. This will enable the City to review system maps
to determine if the design meets the specifications in the Franchise.
The keys to implementing the widely-discussed digital services is ensuring that the service
is offered in a specific municipality and that the subscriber has access to a digital converter.
After the rebuild, the Company is committed to provide digital converters in Iowa City within
a year of this service being offered in any other city of similar size in the State of Iowa.
Other top-notch features of the Agreement include:
Substantial regulatory oversight, including the ability to assess liquidated damages
for non-compliance with material terms and conditions of the Ordinance and
Franchise.
601Pennsyl~n,a Avenue. NXV
Suit900
Washington, DC 20004
Phone:{202}737-2400
774-C Walker Road, P.O Box 765
Great Falls, VA 22066
Phone: (703) 757-0570
Fax: (703) 757-0573
Mr. Drew Shaffer
October 5, 1995
Page 2
The ability to take advantage of changes in Federal law that are advantageous to
the City, including any increases above the 5 % franchise fee that may be allowed
by law.
Approximately one million dollars over the term of the Franchise for equipment,
facilities, and/or support for public, educational, government, and community
access programming. Such funds will be treated as external costs, pursuant to
FCC rules.
Approximately $1.8 million dollars over the term of the Franchise for the support
of public and community access. This is based on a year one payment of
$149,554.66 which will be increased annually in accordance with increases in the
Consumer Price Index. These funds will be paid by the Company and will not
be treated as external costs.
The equipment necessary for closed-circuit programming and 185 converters will
be provided to allow the schools and the City to provide training classes,
telecourses, and other video programming to the schools and public buildings on
a closed-circuit basis.
Option for the City to utilize upstream bandwidth from the home based upon a
favorable rate.
Consumer service standards with specific corrective action to be taken if
standards are not met.
A settlement amount of $200,000 to be provided to the City to settle any and all
claims under the present Ordinance. Such amount will be paid by the Company.
Continuation of the 8% senior citizen discount.
ten-year tenn.
This Franchise Agreement is a considerable achievement for a City of your size. The
state-of-the-art technical features of the system, the amount of funds specified for public benefits,
and the overall regulatory structure are outstanding nationwide. This is a result of good
negotiations and a process that was extremely thorough. including subscribers and the many
groups in Iowa City which do an excellent job of programming or providing programming for
Mr. Drew Shaffer
October 5, 1995
Page 3
the access channels. Iowa City's renewal process, which included a community and consumer
needs assessmere, technical analysis, a detailed request for proposal, and a process for public
input, is a model of how to be well prepared for negotiations and meet all of the responsibilities
the Cable Act places on municipalities.
(.~m~.~re~y~
Jean Rice
Partner
JR/ires
City of Iowa City
MEMORANDUM
Date:
September 29, 1995
From:
Re:
City Council
Dale Helling, Assistant City Manager
Cable Franchise Renewal
Your October 1 O, 1995, meeting agenda will include setting two public hearings on October
24, 1995, one for a proposed renewed cable television franchise agreement and one for a
franchise enabling ordinance. These are based on the completion of negotiations with
Cablevision VII Inc. (TCI), holders of the Iowa City franchise, which expired in April 1994 and
has been extended since that time pending completion of renewal negotiations.
The proposed agreement and ordinance are comprehensive in nature and copies will be
forwarded to you and made available for public inspection in the near future. We will use the
various media available to inform the public of the proposed agreement, the public hearing,
and to encourage public response.
Many issues were raised and discussed during our negotiations over the past 18 months. In
many cases, such as the rate regulation issue, franchising authorities are severely restricted
regarding what they can require. Our negotiations took place in the shadow of a pending
controversial telecommunications reform bill which the federal legislature has wrestled with
over the past two years. The resulting uncertainties for the future had a negative impact on
our progress. Nonetheless, I believe we have come up with a proposed package which will
serve the interests of the City and its citizen subscribers.
Major provisions of the proposed agreement include a ten-year, non-exclusive franchise and
a rebuild of the Iowa City system, to be completed within two years, which will incorporate
state-of-the-art fiber optics technology and will provide a 78-channel (550 MHz) capacity
upgradable to an approximate 100-channel (750 MHz) capacity. The company has indicated
that a number of these additional channels will be activated upon completion of the rebuild.
Also included in the agreement are consumer service and density requirements which meet
or exceed FCC standards; signal quality and technical standards consistent with current
industry standards; six channels reserved for local access (currently there are five) and the
designation of two additional channels if needed in the future; continuation of funding for
public access under the current formula; up to 50¢ per month additional funding for local
access (primarily community programming) which would be a direct pass-through to
subscribers; reserved capacity for City upstream use on a fee basis (i.e. water meter reading);
subscriber information requirements; continuation of the 5% franchise fee; and liquidated
damages for continuous violation of provisions of the franchise. See the attached chart for
more detailed information and comparisons.
Federal law places cities at a disadvantage in franchise renewals. We in Iowa City are
certainly aware of that. '1 hroughout the renewal process the cable company made it clear
that in certain matters they were only willing to give what the law required, i,e. basic rate
regulation. Thus, there are a number of things not included in this agreement which we would
all have liked to see. Most notable is the lack of an institutional network for governmental
use. Similarly, the City insisted on certain provisions which the law clearly allows but which
the company would have preferred not be included. Overall, I am convinced that this
proposed agreement is more desirable than what we might have achieved if we had stayed
with the formal renewal process instead of agreeing to negotiate informally.
There are two additional matters which the cable company has agreed to via separate letter
of commitment, First is a continuation of the 8% senior citizen discount currently provided.
Second is a payment of 9200,000 in settlement of any and all claims by the City under the
previous ordinance,
Drew Shaffer, Anne Burnside and I are all available to answer your questions, either now or
after you have reviewed copies of the agreement and the ordinance. Jean Rice from Rice,
Willlares Associates, our consultant, will be present at the public hearing as well. Please let
me know if you wish anything further.
cc: Broadband Telecommunications Commission
PRESENT STATUS
Programming
· 35 video channels
e 1 PaY per view channel
DMX audio
Local Access
· One channel each for Public
Access, Government, Libran/,
Education, U of I
· Approximately $ 149,000/year
with CPI escalator for Public
Access operational expenses
· Additional channel trigger with
high use (not met)
Subscriber Policies
· Repair calls same-day service 7
days/week if notified before 2
p.m.
· Refund for 24 hr. outage
· Office hours 8-6 M-F, 9-5 Sat.;
hours not set in franchise; after
hour calls handled in Des Moines
· installation in 7 days; TCI policy,
not set in franchise
· Senior citizen discount of 10%
CITY'S REQUEST
Programming
{City may not require specific cable channels)
· Interest expressed in 20 additional channels based on consumer
input
· A la carte channels to be offered
· Company to conduct consumer survey to ascertain
programming interests
· Access channels free for cost of installation
Local Access
· PATV requested $441,650 for equipment, $391,000 per year
for operational expenses, larger facility, additional staff
· Libran/requested $65,500 for equipment, additional staff,
interconnection with Weeg, ICN and Internet
· Gov. requested $587,500 for equipment, larger facility,
additional channel for 4 IntoVision systems dispersed around
city, additional staff, kiosks
· Schools requested $55,900 for video equipment, 3 channels
{Schools, U of I, reserve), additional staff
School Services
· $50,000 contribution to Project SchoolNet
· Pilot Internet Project
· Bandwidth and equipment for two-way data
· Access to the Internet
Access to all channels and materials in TCI Education Project
e Connection of Hills and Penn Elementary Schools
® Fiber optic cable to each school
· Additional classroom wiring
Subscriber Policy
· Repair calls answered in two hour windows on weekdays and
Saturdays
e 24 hour refund for every 4 hour outage
Specific remedies if FCC standards for customer service not
met
· Office hours set in franchise
· Installation within seven days of request
· Three payment stations throughout City in addition to main
office
· Installation of TDD machine at office
· Senior Citizen discounts of 12%
PROPOSED FRANCHISE
Programming
· Minimum of 4 new channels activated upon rebuild
· Part-time channels to become full-time upon rebuild
· Company to conduct consumer survey to ascertain
prograrnmin9 interests
· New programming to include categorles indicated by City
Local Access
e S960,000, or an average of $,50 per month, passed through
to subscribers for the life of the franchise for all access
channels and Community Programming
e $149,000/year with CPI escalator for public access
operational expenses
Additional, separate channel for government channel°s
lnfoVislon
· Additional channel reserved for community programming
· Trigger mechanism for additional local access channels upon
high use.
e Optical transmission equipment
School Services
Services and equipment bundled into $.50 pass-through
Subscriber Policy
o Repair calls in two hour windows on weekdays and
Saturdays; calls prior to arrival
o 24 hour refund for every 18 hour outage
o Business hours 8-6 M-F, 9-5 Sat.; Service hours 8-5 M-S,
On call 24 hrs. 7 days per week
o Specific remedies if FCC standards for customer service not
met
o Three payment stations throughout City in addition to main
office
o Installation of TDD machine at office
o Installation within seven days of request
o Senior citizen discount {Side Letter of Commitment)
PRESENT STATUS
Service Area
· New contiguous areas within 6
months
· New non-contiguous with 20
potential subscriptions per mile
within 6 months
· Within City and within 200 ft. of
system in 30 days
· Beyond 200 ft. of system based
on cost-sharing with subscriber
institutional Network
· 10 activated sites
System Design
· 350 MHZ, 35 channel capacity
· Not upgradeable
· No upstream subscriber capability
· 15 years old. diminished reliability
· Audio only emergency alert
MiscelIaneous
e 5% franchise fee
· No fines for violations
CITY'S REQUEST
Service Area
All areas within City boundaries
Institutional Network
· Fiber optic design capable of passing 100 Mbps
e Miramum of 6 optic fibers to each site
· All existing sites connected immediately
· 37 additional sites connected in phases
· Interconnection to Iowa Communications Network
System Design
Rebuilt 750 MHz, 1 O0 channel capacity
· Fiber-based system
· Less than 1200 subscribers per node
2-way capacity on subscriber system
· Reserved upstream capacity for City use
e Improved and enlarged headend
Enhanced emergency alert utilizing text crawl
· State-of-the-art new technology introduction
Switching capacity to enable Coralvilla to cable cast only to
Coralvilla
· Interconnection with surrounding communities, Iowa
Communications Network (ICN}, franchisee's regional service
area
· Back-up power throughout system, 20,000 watts standby at
headend
Miscellaneous
e 5% franchise fee
· Test equipment kept in Iowa City
· Fines for noncompliance $100-$600 depending on violation
PROPOSED FRANCHISE
Service Area
All areas within City boundaries with conditions listed below
Showers Addition and Camp Cardinal Road served when City
services extended
New residences within 6 months if underground. three
months if aerial
New areas served at regular installation rate if 20 dwellings
per cable plant mile, installation cost based on cost-sharing
formula if less than 20
City Block 81 served when easements available
Old Capitol Center served at time of rebuild
Commercial/industrial service based on cost sharing formula .
o None
Institutional Network
System Design
Upgraded 550 MHz, 78 channel capacity spaced to
accommodate 750 MHz upgrade. 100 channels
Hybrid fiber-coax architecture
600 subscribers per node
2-way capacity; 5-40MHZ upstream activated from each
node
City given option to use upstream capacity at lowest
commercial or subsidiary rate
Emergency alert to include text crawl within five years if
equipment costs less than $15,000 and upgraded
throughout franchise term to meet FCC guidelines
Switching capacity to enable Coralvilla to cable cast only to
Coralvilla
Area interconnection capability with surrounding
communities
20,000 watts standby power at headend; 2.5 hour standby
power at aft optical nodes
Rebuild complete within 2 years
Miscellaneous
5% franchise fee
Test equipment available to Iowa City within 24 hours
Fines for noncompliance (~150-$250
Parental control devices available upon request
FRANCHISE AGREEMENT
BETWEEN
THE CITY OF IOWA CITY, IOWA,
A MUNICIPAL CORPORATION,
CABLEVISION VII, INC.
AN IOWA CORPORATION
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
XIX.
XX.
XXI.
TABLE OF CONTENTS
NONEXCLUSIVE FRANCHISE ........
GRANTED TO CABLEVISION VII, INC..
RIGHT OF CITY TO ISSUE FRANCHISE
TERM .................
FRANCHISE NONEXCLUSIVE.
DEFINITIONS ............
SERVICE AREA ...........
SYSTEM AND CAPACITY ....
CONSTRUCTION .........
SYSTEM SERVICES AFTER REBUILD
ACCESS CHANNELS, EQUIPMENT, FACILITIES, AND
SERVICES ......................................
INTERCONNECTION ...............................
SUBSCRIBER INFORMATION AND POLICY ................
NON-DISCRiMINATION .............................
RATES ............................
FRANCHISE RENEWAL ................
POLICE POWERS ...................
FRANCHISE FEE AND PERFORMANCE BOND.
REGULATION ......................
REMEDIES ........................
COOPERATION ......................
1
1
2
2
2
2
3
8
9
10
12
13
15
............ 15
........... 15
............ 16
........... 16
............ 16
............ 17
........... 18
XXIL
XXIII.
XXIV.
XXV,
XXVL
XXVIL
XXVIII.
XXVIX,
WAIVEit .............
CUMULATIVE PROVISION.
NO LIABILITY ........
NOTICES ...........
CAPTIONS ..........
NO JOINT VENTURE. ..
ENTIRE AGREEMENT. ..
SEVERABILITY .......
18
18
18
19
19
19
19
19
APPENDICES
A System Design Specifications
B Drop Technical Parameters
C Delivery System Equipment List
D Converter Specifications
E Test Equipment
F Preventative Maintenance Program
G Design Standards
H Franchisee's Construction Manual
Permit and Construction Process
J Cutover Process
K Programming During Rebuild Period
L Programming Categories After Rebuild
M Free Drop Locations
N Position of Access Channels During and After Rebuild
O Access Publicity
P Business and Repair Hours
ii
BROADBAND TELECOM MUNICATIONS
FRANCHISE AGREEMENT
NONEXCLUSIVE FRANCHISE.
A. This section grants a ten-year nonexclusive Franchise to operate a cable
television system to Cablevision VII, Inc. (hereinafter referred to as Franchisee). The
Franchise granted shall, as set forth below, be subject to the provisions of the
Broadband Telecommunications Enabling Ordinance and this Franchise Agreement,
B. Subject to Section 626 of the Cable Television Consumer Protection and
Competition Act of 1992, as amended, the City Council reserves the right to refuse
to select a Franchise holder if such refusal is subsequently deemed to be in the public
interest.
C. If the terms and conditions specified in this Franchise conflict or modify the
Ordinance, the provisions of the Ordinance shall apply.
GRANTED TO CABLEVISION VII, INC.
A. Purpose. The purpose of this section is to award a Franchise, for a cable
television system to Cablevision VII, Inc. Cablevision. VII will endeavor to provide top
quality c~ble service.
B. Enactment. Franchisee is hereby granted a nonexclusive Franchise to
operate a cable television system within the City in accordance with the Ordinance
of this title, which establishes standards, regulations and procedures for the granting
of a cable television Franchise, this Franchise and the rules anc~ regulations adopted
by the Iowa City Broadband Telecommunications Commission, all Ordinances of the
City and all applicable rules and regulations of the Federal Communications
Commission and the State.
C. Effective Date. This Franchise shall not become finally effective until the
Franchisee files an acceptance in writing with the City of Iowa City. The Franchisee
shall have up to sixty (60) days from the date the franchise is signed by the Mayor
to provide such written acceptance. Immediately upon the taking effect of this
Franchise Agreement, the prior franchise granted to Cablevision VII, Inc. shall be
superseded and of no further force and effect; provided, however, vested rights
relating to billings and the City's rights to accrued franchise fees shall not be affected
thereby,
1
D. Use of Public Ways. For the purpose of operating and maintaining a cable
television system in the City, Franchisee may erect, in, over, under, or upon, across,
and along the public streets, alleys, and ways within the City such wires, cables, fiber
optics, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances,
pedestals, attachments, and other property and equipment as are necessary and
appurtenant to the operation of the cable television system in the City and in
accordance with this Franchise and the Ordinance.
III.
RIGHT OF CITY TO ISSUE FRANCHISE.
Franchisee acknowledges and accepts the legal right of the City to issue this
Franchise.
IV. TERM.
The term of the Franchise shall be for a period of ten (10) years from the
effective date, unless sooner terminated as provided in the Ordinance, at which time
it shall expire and be of no further force and effect.
FRANCHISE NONEXCLUSIVE.
Consistent with the requirements of the Ordinance, this Franchise shall not be
construed as any limitation upon the right of the City to grant to other persons rights,
privileges, or authorities similar to the rights, privileges, and authorities herein set
forth, in the same or other streets, alleys, or other public ways or public places. The
City specifically reserves the right to grant at any time during the term of this
Franchise or renewal thereof, if any, such additional Franchises for a cable
communications system as it deems appropriate. In the event the Franchising
Authority enters into a franchise with any other person or entity other than the
Franchisee to enter into the City's streets and public ways for the purpose of
constructing or operating a cable television system to any part of the service area, the
material provisions thereof shall be reasonably comparable to those contained herein,
taking into account the size and population of the franchised area, including but not
limited to, franchise fee, external costs, access fees, if applicable, design, term,
density requirements and system capacity requirements.
VI. DEFINITIONS.
All definitions set forth in the Ordinance pertain to this Franchise and shall be
relevant to the purposes and meaning of this Franchise.
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VII.
SERVICE AREA.
A. Service to all Residents. Franchisee shall offer cable television residences
service to all areas of the City which are in the corporate limits of the City of Iowa
City and that meet the density requirements under paragraph B of this section, on the
effective date of this Franchise. The Franchisee shall provide cable service to Old
Capitol Center at the time of the rebuild pursuant to Section VIII herein. The
Franchisee shall make reasonable efforts to obtain easements necessary to serve
Block 81 and shall provide cable service to Block 81 at the time all necessary
easements are available, but no sooner than at the completion of the rebuild pursuant
to Section VIII herein. The Showers Addition and/or Camp Cardinal Road shall be
served within six (6) months of when the City extends City services and requests
services to the Showers Addition and/or Camp Cardinal Road respectively.
B. New Residential Construction. Franchisee shall extend service to all new
residences in all unwired developments within six months of a request of a subscriber
in an area to be served by underground construction and within three months of a
request of a subscriber for areas to be served aerially, whenever density of at least
twenty (20) residential dwelling units per cable plant mile; as measured from the
existing facilities of Franchisee's cable system in the franchise area. For purposes of
this section, density per cable mile shall be computed by dividing the number of
residential dwelling units in the area by the length, in miles or fractions thereof, of the
total length of aerial or underground cable necessary to make service available to the
residential dwelling units in such area in accordance with Franchisee's system design
parameters. The cable length. shall be measured from the nearest point on the then-
existing ~ystem. The total cable length shall exclude the drop cable necessary to
serve individual subscriber premises.
C. Contribution-in-aid. If an area does not meet the required number of
residential dwelling units per cable mile, Franchisee shall bear its pro-rata share of the
current construction costs based upon the actual number of residential dwelling units
per mile. For example, if there are 5 residential dwelling units in a residentially zoned
area, the Franchisee's share would be 5/20ths or ~A of the construction cost. The
remaining construction costs shall be borne on a pro-rata basis by each cable
television subscriber. After completion of the project, should additional subscribers
request and receive cable television service, the pro-rata shares shall be recalculated.
Any new subscriber shall pay the new pro-rata share and all prior contributing
subscribers shall receive appropriate refunds. In any event, at the end of two (2)
years from the completion of residential construction in the area, the subscribers shall
no longer be eligible for refunds, and any amounts paid in construction costs will be
credited to the plant account of Franchisee,
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D. Service Area. The service area of Franchisee shall be the entire corporate
boundaries of the City of Iowa City and include any areas annexed to the City in the
future,
E. Commercial Service. Franchisee shall, upon request, make service available
to all commercial/industrial establishments served aerially which are located within
125 feet of the system at Franchisee's standard installation rate expense. For
commercial/industrial establishments served underground or for aerial extensions
beyond 125 feet, Franchisee shall, upon request,make service available on the basis
of a capital contribution in aid of construction, including cost of material, labor, and
easements. For the purpose of determining the amount of capital contribution in aid
of construction to be borne by the Franchisee and the commercial/industrial
establishments in the area in which service may be expanded, the Franchisee will
contribute an amount equal to the construction and other costs per mile, multiplied
by a fraction whose numerator equals the actual number of commercial/industrial
establishments per 1320 cable-bearing strand feet of its trunks or distribution cable,
and whose denominator equals eight (8) commercial/industrial establishments,
Commercial/industrial establishments who request service hereunder will bear the
remainder of the construction and other costs on a pro-rata basis. The Franchisee
may require that the payment .of the capital contribution in aid of construction be
borne by such potential commercial/industrial establishments be paid in advance.
F. HoUse Moving. Franchisee shall, upon the request of the City, move and
replace its facilities to accommodate house moves conducted on behalf of the City,
at a time and materials cost to the City. Wherever feasible, the City shall use its best
efforts t~ ensure that house moves follow the same or similar path.
SYSTEM AND CAPACITY.
A. System. The parties understand and agree that Franchisee shall construct
a cable system which delivers cable television signals processed at 550 MHz (78
channels) utilizing a fiber to the node design or better. The system will be spaced to
accommodate 750 MHz in the future. The rebuilt system will use all new fiber optics,
and electronic and passive devices. The system will be designed so that there are no
more than five (5) amplifiers in cascade. Fiber optic receiver nodes located throughout
the plant will divide the distribution of cable signals to 600 homes per fiber node or
less. Further, Franchisee will activate 5-40 MHz upstream from each fiber node, as
needed upon sixty days notice from the City and upon the completion of the rebuild.
Costs for such upstream activation will be treated in the same manner as other rebuild
costs. The system shall be designed and constructed in accordance with the design
specifications in Appendix A, attached hereto and incorporated by reference. The
system shall be operated in accordance with performance standards which meet or
exceed FCC regulations.
4
B. ConstrGction Timetable. The rebuild shall be completed within two (2)
years of the effective date of this Franchise. Two months prior to the initiation of
construction of the rebuild, Franchisee shall provide a neighborhood construction
schedule which details the timeframe for construction in each neighborhood and area
of the City.
C. Construction Oversight. Franchisee will inspect 100% of all fiber and
coaxial cable to insure that it meets the specifications of the Ordinance and this
Franchise. After the audit of subscriber drops as specified in Section E. below,
Franchisee will inspect 35% of the subscriber drops. The Franchisee shall designate
an employee to act as a company representative by responding to public service
complaints on a daily basis during the rebuild and provide the City with the person's
name and telephone number.
D. Compliance with Applicable Law. In constructing, operating and
maintaining the system, Franchisee shall at all times comply with the Ordinance and
all applicable laws and regulations.
E. Drop Audit. Two years after the completion of the rebuild, Franchisee shall
have audited and tested ninety-five (95) percent of the subscriber drops in the City
and all drops not meeting the standards of the National Electric Code or the te{chnical
parameters in Appendix B, attached hereto and incorporated by reference, shall be
replaced when'found to be substandard. The system shall be designed to allow each
subscriber drop to provide service to four (4) television outlets.
F.- Equipment Quality. Equipment used for the distribution system, headend
and reception facilities shall be of good and durable quality and be serviced and
repaired on a regular basis and shall at all times be of equal or better quality than the
equipment listed in Appendix C, attached hereto and incorporated by reference.
G. Converters. Franchisee shall provide, for current replacement needs, a
converter equal or better than the Converter specified in Appendix D, attached hereto
and incorporated by reference. After the rebuild is complete and up to one year after
digital converters are offered by TCI within the State of Iowa to a system of similar
size or smaller, excluding experimental and demonstration projects, Franchisee shall
make a digital converter available to all subscribers requesting the digital level of
service. Such digital converters shall comply with the then national standards for
digital technology and shall provide state-of-the-art features equal to those being
introduced during the same year in other systems owned by TCI. All programming
services exclusively offering adult rated programming shall provide picture and audio
scrambling of services not purchased by a specific subscriber. Franchisee shall
maintain its trap system until the introduction of the converters described above and
be available thereafter, as needed, for subscribers not utilizing converters. The City
Council may, in its discretion, extend the time for the Franchisee, acting in good faith,
5
to provide digital converters. The timeframe for providing digital converters shall be
extended for any period during which the Franchisee demonstrates to the satisfaction
of the City that the Franchisee is being subjected to delay due to circumstances
reasonably beyond its control, such as acts of God and labor strikes.
H. Upstream Capacity for City Use. Franchisee shall reserve and give the City
the option to use the up and downstream capacity on the cable system not to exceed
one-half (~) MHz in either direction, to allow the City to collect data and other signals
from subscriber homes or City sites for non-commercial governmental and educational
purposes only. Franchisee shall cooperate with the City on pilot projects and City-
wide implementation, including but not limited to, City installation and use of
equipment which utilizes a larger amount of bandwidth than described above, if
necessary, so long as the actual bandwidth utilized by the City is the same or less
than that described above. Franchisee shall allow the City to co-locate necessary
equipment on the cable system provided said equipment does not interfere with the
system's integrity. The Franchisee shall provide such capacity to the City at a rate
which, at a maximum, shall be equal to the lowest rate provided to any commercial
customer or subsidiary company. Ongoing maintenance charges will be at cost and
at the City's option, such cost will be paid by the City or a third party.
I. Emergency Alert. Franchisee shall continue to provide an all-channel audio-
only emergency alert system for use by the City. Emergency messages can be
initiated from 'any touch-tone phone with an access code. Franchisee agrees to
upgrade the emergency alert system at the Franchisee's own cost, by providing a text
crawl on the picture on all channels within five years of the effective date of this
Franchise, providing such equipment is available at a reasonable cost, which shall not
exceed 915,000. The emergency alert service shall be upgraded throughout the
Franchise term as set forth in FCC rules, regulations, or guidelines. The Franchisee
shall not be held responsible for any failure of the emergency alert system to operate
during any emergency.
J. Test Equipment. Throughout the term of the Franchise, Franchisee shall
have accessible to Iowa City within a 24-hour period, test equipment equal to or
better than that specified in Appendix E, attached hereto and incorporated by
reference.
K. Ongoing Preventive Maintenance.
preventive maintenance program specified in
incorporated by reference.
Franchisee will comply with the
Appendix F, attached hereto and
L. Interference on Channels 12 and 19. After the rebuild, Franchisee will not
use Channel 19 for video, but for alphanumeric purposes, to avoid interference from
radio/pagers. Franchisee will use its best efforts during the rebuild to minimize
interference on Channel 12. Franchisee will relocate Channel 12 (Fox) or Channel 13
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(IPTV) to avoid off-air interference by the end of the rebuild. Franchisee will use its
best efforts to locate IPTV on Channel 12, and if possible maintain that channel
location. During the term of the Franchise, Franchisee will provide notice to
consumers, on how interference problems experienced by customers on specific
channels can be alleviated, through TV ads and billing messages mailed to
subscribers.
M. Satellite Earth Station. The system configuration shall include earth
stations which shall ensure the ability to receive signals from operational
communications satellites that predominately carry programming services available to
cable systems throughout the life of the Franchise.
N. Standby Power. Franchisee shall provide 20,000 Watt standby
power-generating capacity at the headend. Franchisee shall maintain standby power
system supplies, rated for at least two and one-half (2.5) hours duration at all optical
node locations in the distribution network.
O. Parental Control Devices. Franchisee shall provide to subscribers, upon
request, parental control devices that allow any channel or channels to be locked out.
Such devices shall block both the video and the audio portion of such channels to the
extent that both are unintelligible. The cost to subscribers for parental control devices
is subject to FCC regulation.
P. Performance Testing. Franchisee shall perform all system tests and
maintenance procedures as required by and in accordance with: the FCC; Franchise;
OrdinanCe; Franchisee's standards of good operating practice; and the National Cable
Television Association's test procedure guidelines.
Q. Technical Standards. The cable communications system permitted to be
operated hereunder shall be installed and operated in conformance with the Ordinance,
this Franchise, and FCC rules and regulations. Any FCC technical standards or
guidelines related to the cable communications system and facilities shall be deemed
to be regulations under this Franchise. At such time as the FCC does not regulate
technical standards, Franchisee will continue to comply with the FCC standards which
were in effect on the effective date of this Franchise.
R. Employee Identification. Franchisee shall provide a standard identification
document to all employees, including employees of subcontractors, who will be in
contact with the public. Such documents shall include a telephone number that can
be used to verify identification. In addition, Franchisee shall use its best efforts to
clearly identify all field personnel, vehicles, and other major equipment that are
operating under the authority of Franchisee.
S. Stereo. Upon completion of the rebuild, the system will have the capability
and shall provide Broadcast Television Systems Committee (BTSC) stereo signals.
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IX.
CONSTRUCTION.
A. System Design Review. The City shall have the authority to review the
technical design plans of the system to ensure that the system design meets the
requirements of this Franchise, the Ordinance, as well as applicable portions of the
City Code governing construction within public rights-of-way and applicable portions
of the design standards included in Appendix G, attached hereto and incorporated by
reference. Franchisee shall provide the following design information: engineering
design maps; key for design maps; system level design information (e.g., block
diagram of headend, satellite or off-air studies, power supply map); test plan for the
existing coaxial cable to be used in the system; and contact engineer who will be
available to discuss project details. On a case by case basis, Franchisee may use
existing coexial cable which meets manufacturer specifications. Franchisee shall
preform end of the line test to ensure that the coaxial cable plant tested performs
according to manufacturer specifications. In cases where the cable does not meet
such specifications, Franchisee shall replace the cable and shall use its best efforts to
minimize disruption to effected subscribers. The City shall protect the proprietary
system design information submitted by Franchisee. The Franchisee shall send the
design information to the location specified by the City as such maps are available to
the Franchisee. Franchisee's regional engineer will review the design with City
designated persons.
B. Construction Manual. Franchisee shall construct the system in accordance
with Franchisee's construction manual. See Appendix H, attached hereto and
incorporated by reference. The Franchisee shall follow the permitting process as
specified-in Appendix I, attached hereto and incorporated by reference.
C. Underground Construction. Franchisee shall participate in and use Iowa
One Call and ensure that cable is buried at a depth of twelve inches (12"). Temporary
drops will be buried within one month of installation, weather permitting.
D. Consumer Compatibility. Franchisee shall comply with FCC consumer
compatibility rules and guidelines and will use its best efforts to provide subscriber
friendly technology. The basic tier of service shall be offered in a format compatible
with FCC regulations.
E. Conversion. Subscribers shall not be charged by Franchisee for conversion
from the existing system to the new system. In the event that special additional or
customized equipment is requested by any subscriber or is required to provide such
service to any subscriber, Franchisee may charge the subscriber for such equipment.
So that customers will experience the least possible interruption of service, Franchisee
shall perform the cutover to the new system as specified in Appendix J, attached
hereto and incorporated by reference. Franchisee will notify subscribers and the
public in general of the cutover, using a combination of at least two of the following:
8
bill stuffers; direct mail; news releases; radio announcements; CSR training; and
community bulletin board announcements. Internal wiring shall comply with the Iowa
City Electrical Code.
SYSTEM SERVICES AFTER REBUILD.
A. Initial residential subscriber services. During the rebuild period, Franchisee
shall initially provide the same or similar programming as provided in Appendix K,
attached hereto and incorporated by reference.
B. Additional Services, Upon completion of the rebuild, Franchisee shall
provide a minimum of four new services and a good mix of entertainment and
information programming generally available to the cable television industry, taking
into account the needs and interests of the population of the City of Iowa City. At
a minimum, the system shall provide the broad categories of programming specified
in Appendix L, attached hereto and incorporated by reference. Prior to selecting all
the new services to be offered after the rebuild, Franchisee shall conduct a
statistically valid consumer market survey by telephone of 200 randomly selected
homes to assess what new programming consumers are most interested in receiving,
in addition to those specified in Appendix L. Franchisee shall use its best efforts to
provide the programming that had the highest degree of community interest and that
would serve the community interests indicated in their own survey and in the
consumer market survey conducted on behalf of the City during the renewal process.
The results of the consumer market survey will be provided to the City within thirty
(30) day~ of completion.
C. Leased Access Channels. Franchisee shall offer leased access channels at
such terms and conditions and rates as may be negotiated with each lessee subject
to the requirements of Section 612 of the Cable Act,
D. Cable Drops and Monthly Service. Franchisee shall provide one free cable
drop and free, basic and tier services, excluding premium services, audio services,
pay-per-view, etc., to locations already provided with free drops, locations listed in
Appendix M, attached hereto and incorporated by reference, and at any other public
buildings designated by the City. All non-premium programming and closed-circuit
training programming shall be transmitted to all of these locations on the cable
system, free of charge.
E. Institutional Channels. If allowed by Federal law and regulation, the
government and educational access channels shall be provided with the capability to
transmit for closed-cir~:uit institutional programming. The Franchisee shall provide an
appropriate device for the reception of scrambled institutional programming offered
over the subscriber network on the scrambled government and educational access
9
channels to all local government and educational locations receiving free drops and
service. The necessary headend equipment for modulation, scrambling, and
cablecasting of the closed-circuit signals shall be provided by the Franchisee.
Franchisee shall provide channel scrambling as requested by the City and educational
institutions on the scrambled government and educational access channels.
F. Closed Captioning. Franchisee shall pass through all closed-circuit signals
received by the system for the hearing impaired, Closed-caption devices will be
provided for sale and installation by Franchisee.
G. Interactive Services. Franchisee will offer X'Press*IX*Change services,
(one per school) provided that these services remain available to the Franchisee, and
a guide to each school free of charge when such guides are available for Franchisee.
XI.
ACCESS CHANNELS, EQUIPMENT, FACILITIES, AND SERVICES.
In order to develop and promote public, educational, and government access
programming for the system's access channels, Franchisee hereby agrees to provide
the following:
A. Access Channels. During the rebuild, Franchisee shall maintain the number
and position of the access channels as shown in Appendix N, attached hereto and
incorporated by reference. Prior to the first subscriber being cut-over to the rebuilt
system, Franchisee shall provide the following number of dedicated access channels:
three (3Ychannels for government access; two (2) channels for educational access;
and one (1) channel for public access. The Franchisee, shall use its best efforts to
maintain the cable channel position of the access channels in existence on the
effective date of this Franchise. After the rebuild and upon the City's request,
Franchisee shall activate the following additional access channels on the basic tier;
one (1) channel for community programming and/or access and one (1) channel for
educational access. After the rebuild and upon the request of the City, whenever any
public access channels as set forth in this section shows documented proof of
performance that they are in use 80% of the cablecast week for any 6 week
consecutive timeframe, given at least 8 hours per day, 7 days per week cablecast
schedule, with at least 80% (of the time the channel is programmed), unduplicated
locally originated programming, the Franchisee shall make such additional access
channel(s) available as necessary for access use within 6 months of receipt of request
by the City. The City agrees to share the above listed access channels with other
communities served by the same headend on a switched basis. Franchisee shall
provide automatic switching from a site selected by the City for any switching needed
by the City to allow City programming to be viewed within the City while other
communities may be viewing other governmental programs. Other communities, such
as Coralville, served by the same headend shall have remote switching capability to
10
allow programming to be viewed within their respective municipalities while Iowa City
programming continues to be viewed within the City of Iowa City.
If Franchisee expands bandwidth, the City reserves ten percent of the
bandwidth for public, educational and government access use up to 100 analog
channels. Such bandwidth will be made available within six (6) months of a request
by the City. The City shall make such request when the governmental, educational,
and/or public access entities have demonstrated to the City that such additional
capacity is needed and usage meets the formula for bandwidth activation specified
above.
Such additional capacity shall be dedicated for the type of access specified
by the City. All active access channels shall be placed on the basic tier of service,
unless both parties mutually agree otherwise.
B. Access Equipment, Support, and Facilities. The Franchisee shall provide
the City with funds in monthly payments for equipment, facilities, and ongoing
support for public, educational, governmental access, and community access
programming, in an amount not to exceed the equivalent of fifty (50) cents per
subscriber per month for the entire term of this Franchise. The City shall provide
written notice to the Franchisee of the initial amount to be passed through and any
changes in the amount thereafter, Both parties agree that all such funds will not be
deducted from'the franchise fee. The City agrees that all amounts paid by Franchisee
pursuant to this section may be added to the price of cable services and collected
from Franchisee's subscribers as "external costs" as such term is used in 47 C.F.R.
on the effective date of this Franchise. In addition, all amounts paid under this section
may be separately stated on subscriber's bills as permitted in 47 C.F.R. 76.985. Such
payments will be made by the Franchisee to the City on a monthly basis
C. Access Services. Franchisee agrees to continue to provide to the non-
profit corporation designated by the City and/or other entities designated by the City,
including the City itself, to carry out the day-to-day operations of public access and
community programming, annual payments based on $149,554.66 annual payment
in year one of the Franchise term. Said amount shall be increased successively
thereafter annually for inflation for the term of the Franchise. Both parties agree that
all said funds for access services will not be deducted from the franchise fee and
agree that only the annual inflation adjustments may be passed through to subscribers
and may be separately stated on subscriber's bills. This is in addition to the amount
specified in paragraph B above. All inflation adjustments shall be based upon the
annual CPI-PI published by the U.S. Department of Commerce. All annual payments
shall be due January 1 st of each year.
D. Publicity, Franchisee agrees to provide the publicity services as specified
in Appendix O, attached hereto and incorporated by reference.
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E. Optical Transmission Equipment. The Franchisee agrees to provide one
digital, optical transmission package. The Franchisee agrees to connect the optical
equipment using coaxial cable or fiber optics with the Library, the Senior Center,
Civic Center, and a school site(including but not limited to the permanent access
channel(s), the library channel, the public access channel, the government channel,
the community programming channel and the educational access channel).
F. Closed Circuit Operations. Franchisee shall provide, free of charge, an
appropriate device for the reception of scrambled institutional programming offered
over the subscriber network to schools and government buildings receiving free drops
and service. The necessary headend equipment for modulation, scrambling, and
cablecasting of the closed-circuit signals on the educational, and government access
channels, shall also be provided. Franchisee shall provide channel scrambling as
requested by government and educational access channel operators. Franchisee shall
provide the City and schools with 185 converters and scrambling devices, free of
charge, within one hundred twenty (120) days of the completion of the rebuild.
G. Signal Quality. Franchisee shall assure that the access channel delivery
system from the Civic Center and all other origination points specified herein meet the
same technical standards as the remainder of the system as set forth in Section VIII
herein.
H. Treatment. The Franchisee will confer with the City on the content and
format of any separate line item on the monthly bill related to local programming,
I.' Origination Sites. The Franchisee shall maintain and/or replace and
maintain throughout the franchise term, the active origination lines from the locations
from which local programming can be originated on the effective date of this
Franchise to the Franchisee's headend.
XII,
INTERCONNECTION.
A. Interconnection. Franchisee's system design shall allow originating
institution's signals (public, educational, and governmental channels) to be made
available in contiguous communities which are served by the Iowa City headend. If
legal and technically feasible, Franchisee agrees to allow interconnection with
communities not served by the Iowa City headend provided, however, that such
communities, the City, and/or a third party, supply and bear the cost for the
interconnect to Franchisee's headend or locations on the system easiest to reach
and/or at the least cost, related to access programming origination distribution.
Access to TCI's headend and equipment will be limited to TCI personnel, Such
personnel shall supervise any activity with regard to this Section.
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B. University Cooperation. The Franchisee shall use its best efforts to
accommodate the talecommunications needs of the University, its staff, and students.
In the event the University proposes a joint venture or other proposal for services, the
Company shall review the proposal and respond within ninety (90) days of receipt.
XIII.
SUBSCRIBER INFORMATION AND POLICY.
A. Subscriber Information. At the time an installation or service agreement
is to be signed or at the time Franchisee solicits residents, Franchisee shall furnish to
each subscriber a simple, but thorough written explanation of all services offered; the
fees, charges, terms and conditions of such services; information regarding billing and
service calls; complaints; information regarding the availability of parental control
devices; and a complete statement of the subscriber's right to privacy in conformance
with 47 U.S. Section 631, as it may be amended. Thereafter, Franchisee shall
provide subscribers with privacy information and other information, as required by
FCC regulations, as amended. Such subscriber information shall be filed with the City
concurrent with distribution to subscribers.
B. Business Offices and Personnel. Franchisee shall establish and maintain
a business office within the City which shall, at a minimum, be open to receive
payments and subscriber equipment for the hours specified in the Appendix P,
attached hereto and incorporated by reference. Franchisee shall also provide
personnel, telephone service, including a locally listed telephone number, and other
equipment, as needed within the area, to ensure timely, efficient and effective service
to consumers and for the purpose of receiving inquiries, requests and complaints
concerning all aspects of the construction, installation, operation, and maintenance
of the system and for the payment of subscribers' service charges.
C. Subscriber Complaints. Pursuant to the Ordinance, Franchisee shall
promptly respond to and resolve all subscriber complaints. However, nothing herein
shall require Franchisee to maintain or repair any equipment not provided by it.
D. Major Outages. Franchisee shall maintain records of all major outages
defined as a discontinuation of cable service from one or more fiber nodes in the City
of Iowa City. Such records shall indicate the estimated number of subscribers
affected, the date and time of first notification or of Franchisee knowledge of the
outage, the date and time service was restored, the cause of the outage and a
description of the corrective action taken. Such records shall be available to the City
during normal business hours upon reasonable prior notice and retained in Franchisee's
files for not less than five (5) years. Upon written request of the City, a statistical
summary of such records shall be prepared by Franchisee and submitted to the City
annually.
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E. Customer Handbook. Franchisee shall provide written customer policies
or a handbook to all new subscribers and, thereafter, upon request. Franchisee's
written customer policies or handbook shall, at a minimum, comply with all notice
requirements in the Ordinance and those promulgated by the FCC. If Franchisee's
operating rules are changed subscribers shall be notified in a timely manner. Rate and
consumer complaint information will be distributed annually to subscribers.
Franchisee shall file a consumer handbook with the City annually.
F. FCC Standards. Franchisee shall meet the FCC's Standards for Customer
Service. If Franchisee does not meet the busy standards in two (2) consecutive
quarters the Franchisee shall add a minimum of one telephone line or make other
changes in order to satisfy the telephone busy standards. Franchisee shall provide to
the City annual management data, including data from any service centers used by
the Franchisee related to compliance with the FCC's Standards for Customer Service.
At such time as Franchisee does not meet the FCC and/or the Ordinance requirements
for repair for one quarter, Franchisee shall take corrective action to ensure that such
standards are met during the next quarter. At such time as the FCC no longer
promulgates Consumer Service Standards the FCC standards in effect on the effective
date of this Franchise will be in force.
G. Downgrades. Subscribers shall have the right to have cable service
downgraded in accordance with FCC rules. No charge shall be made for
disconnection 'of basic service. The billing for such service will be effective
immediately and such disconnection or downgrade shall be made as soon as
practicable. A refund of unused service charges shall be paid to the customer within
forty-fiv~ (45) days from the date of termination of service.
H. Outages. Franchisee, upon subscriber request, shall creditthe subscriber's
account for verifiable outages of eighteen (18) hours or more for the levels of service
affected by such outages. The Franchisee shall provide written notice to subscribers
quarterly of the availability of credits for outages.
I. Subscriber Contracts. All contracts between Franchisee and their
subscribers shall be in compliance with the Ordinance and this Franchise. Franchisee
shall file a copy of the Franchisee's subscriber contract with the City annually.
J. Negative Option Billing. Franchisee shall comply with Federal law regarding
negative option billing.
K. Payment Stations. Throughout the term of the Franchise, Franchisee shall
maintain, at a minimum, three payment sites in addition to the Franchisee's office.
Such payment stations shall be open during normal business hours and be dispersed
throughout the City. Frenchisee will review the options for payment by telephone and
automatic withdrawals.
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L. TDD. Within 180 days of the effective date of this Franchise, Franchisee
shall install a TDD machine to receive consumer messages from the hearing impaired.
M. Repair Calls. Franchisee shall offer subscribers repair service appointments
in two hour windows. The Franchisee shall telephone the subscriber prior to arriving
for a repair call. Franchisee will conduct repair calls on weekdays and Saturdays.
N. Installation. Subscriber service shall be installed within seven days of a
request during normal operating conditions.
O. Administrative Fee and Disconnects. Administrative fees are charged on
any accounts which have not been paid prior to the next billing cycle. Disconnection
of accounts due to non-payment occurs no sooner than after 45 days of due date.
P. Subscriber Bill. Company shall include its name, address, and telephone
number on the subscriber bill and the portion of the bill retained by the subscriber.
XIV.
NON-DISCRIMINATION.
Franchisee agrees that it shall not discriminate in providing service to the public
nor against any employee or applicant for employment because of race, color, creed,
religion, sex, disability, national origin, age, sexual orientation, or marital status. In
the employment of persons, Franchisee shall fully comply with applicable local, state
and federal law, and shall take affirmative action to ensure that applicants are
employe~ and that employees are treated during employment without regard to their
race, color, creed, religion, sex, disability, national origin, age, sexual orientation, or
marital status.
XV. RATES.
The City shall have the ability to regulate rates in accordance with Federal law.
XVI.
FRANCHISE RENEWAL.
Subject to Section 626 of the Cable Television Consumer Protection and
Competition Act of 1992, as amended, this Franchise may be renewed by the City in
accordance with the Ordinance.
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XVII.
POLICE POWERS.
In accepting this Franchise, Franchisee acknowledges that its rights hereunder
are subject to the police powers of the City to adopt and enforce general Ordinances
necessary to the safety and welfare of the public and it agrees to comply with all
applicable general laws and Ordinances enacted by the City pursuant to such power.
XVIII. FRANCHISE FEE AND PERFORMANCE BOND.
A. Franchise Payments. Franchisee shall pay to the City a Franchise fee of
five (5%) percent of gross annual revenues orthe maximum amount permitted by law,
whichever is higher, during the period of its operation under the Franchise, pursuant
to the provisions of the Ordinance. Any increase in the franchise fee shall be
implemented as soon as practicable, but no longer than forty-five (45) days.
B. Bonds, Franchisee shall furnish a Gonstruction bond to City as specified
in the Ordinance during the construction of the rebuild. Franchisee shall furnish a
Letter of Credit of 875,000 which shall be replenished within ten (10) days of use by
the City as specified in the Ordinance to a total amount of 8500,000. Franchisee
shall provide such Letter of Credit to the City within sixty (60) days of the effective
date of this Franchise. The Letter of Credit should be maintained during the life of the
Franchise, to guarantee the faithful performance of all its obligations under this
Franchise and the Ordinance.
XIX. REGULATION.
A. The City shall exercise appropriate regulatory authority underthe provisions
of the Ordinance and this Franchise. Regulation may be exercised through any duly
designated City office or duly established Board or Commission or other body of the
City.
B. Franchisee, by accepting the rights hereby granted, agrees that it will
perform and keep all acts and obligations imposed, represented or promised by the
provisions of this Franchise, the Ordinance, and the renewal proposal.
C. The Franchisee agrees to indemnify the City and to hold the City harmless
from all claims against it by third parties arising out of its compliance with Section V
to the extent that such claims are not barred by Section 635A of the Cable Television
Consumer Protection and Competition Act of 1992 (Limitation of Franchise Authority
Liability), or i3y any other provision of law.
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XX. REMEDIES.
A. Schedule of Liquidated Damages. Because Franchisee's failure to comply
with certain material provisions of this Agreement and the Ordinance will result in
injury to the City or to subscribers, and because it will be difficult to estimate the
extent of such injury, the City and Franchisee hereby agree that the liquidated
damages and penalties stated in the Ordinance represent both parties' best estimate
of the damages resulting from the specified injury.
B. Violations, For the violation of any of the following, the City shall notify
Franchisee in writing of the violation. The City shall provide Franchisee with a
detailed written notice of any Franchise violation upon which it proposes to take
action, and there shall be a thirty (30) day period within which Franchisee may
demonstrate that a violation does not exist or cure an alleged violation or, if the
violation cannot be corrected in thirty (30) days, submit a plan satisfactory to the City
to correct the violation. If an alleged violation is proven to exist, and no cure or action
on a plan acceptable to the City has been received by the City within thirty (30) days,
such liquidated damages shall be chargeable to the Letter of Credit as set forth in the
Ordinance if not tendered by Franchisee within thirty (30) days. Franchisee may
petition the City Council for relief with just cause. The imposition of liquidated
damagesshall not preclude the City from exercising the other enforcement provisions
of the Ordinance, including revocation, or other statutory or judicially imposed
penalties. Liqdidated damages may be imposed as follows:
(1)
For failure to complete construction or extend service in
accordance with Franchise: ~250/day for each day the violation
continues;
(2)
For failure to comply with requirements for public, educational and
government access: ~150/day for each day the violation
continues;
(3)
For failure to submit reports, maintain records, provide documents
or information: 9150/day for each day the violation continues; and
(4)
For violation of customer service standards required by this
Franchise, the Ordinance, or by FCC regulation: $1 50/day per
standard violated.
(5)
For violation of the books and financial records provisions of this
Franchise and the Ordinance: up to ~150/day for each day the
violation continues.
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(6)
For violation of other material provisions of this Franchise or the
Ordinance: up to 9150/day for each day the violation continues.
XXI.
COOPERATION.
The parties recognize that it is within their mutual best interests for the cable
television system to be operated as efficiently as possible in accordance with the
requirements set forth in this Agreement. To achieve this, parties agree to cooperate
with each other in accordance with the terms and provisions of this Franchise. Should
either party believe that the other is not acting timely or reasonably within the
confines of applicable regulations and procedures in responding to a request for
action, that party shall notify the person or agents specified herein. The person or
agent thus notified will use its best effort to facilitate the particular action requested.
XXII. WAIVER.
The failure of the City at any time to require performance by Franchisee of any
provision hereof shall in no way affect the right of the City hereafter to enforce the
same. Nor shall the waiver by the City of any breach of any provision hereof be taken
to be a waiver of any succeeding breech of such provision, or as a waiver of the
provision itself:
XXIII. ' CUMULATIVE PROVISION.
The rights and remedies reserved to the City by this Franchise are cumulative
and shall be in addition to and not in derogation of any other rights or remedies which
the City may have with respect to the subject matter of this Franchise, and a waiver
thereof at any time shall have no effect on the enforcement of such rights or remedies
at a future time,
XXIV, NO LIABILITY.
Nothing herein shall be deemed to create civil liability by one party for the
action, omissions or negligence of the other party, or of a party's agents, employees,
officers or assigns. Each party shall be solely liable for claims against it by third
parties, whether arising under the Cable Television Consumer Protection and
Competition Act of 1992 or under any other provision of law.
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XXV. NOTICES.
All notices from TCI to the City pursuant to this Agreement shall be sent to the
following address for the conduct of matters related to the Franchise. All notices to
the City should be sent to: Cable Administrator, City of Iowa City, 410 East
Washington Street, Iowa City, Iowa 52244. All notices to TCI shall be sent to these
addresses: Cablevision VII, Inc., P.O. Box 4500, 546 Southgate Avenue, Iowa City,
Iowa, (31 9) 351-3984; TCI of Iowa, Inc., 2199 Ingersoll Avenue, Des Moines, Iowa
50312, (515) 246-2288; TCI Southeast, Inc., 2204 Lakeshore Drive, Ste. 325,
Birmingham, AL 35209-6732, (205) 871-0044.
XXVI. CAPTIONS,
Captions to sections throughout this Franchise are solely to facilitate the
reading and reference to the sections and provisions of the Agreement, Such captions
shall not affect the meaning or interpretation of the Agreement.
XXVII. NO JOINT VENTURE.
Nothing herein shall be deemed to create a joint venture or principal-agent
relationship between the parties, and neither party is authorized to, nor shall either
party act toward third persons or the public, in any manner which would indicate any
such relationship with the other.
XXVIII. ENTIRE AGREEMENT.
This Agreement and all attachments hereto, and the Ordinance and all
attachments thereto, as incorporated herein, represent the entire understanding and
agreement between the parties hereto with respect to the subject matter hereof,
supersede all prior oral negotiations between the parties, and can be amended,
supplemented, modified, or changed only as provided in said Ordinance.
XXVIX. SEVERABILITY.
If any section, subsection, sentence, clause, phrase, or portion of this
Agreement is, for any reason, held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct, and
independent provision and such holding shall not affect the validity of the remaining
portions of this Agreement, except as provided for in the Ordinance.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
ATTEST:
CITY OF IOWA CITY, IOWA,
a municipal corporation
Witness Mayor
CABLEVISION VII, INC.
'Witness
Thomas R. Barberini
Vice President
Seal
Approved as to form and correctness.
City Attorney
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FRANCHISE APPENDICES
App. A p. 4, VIII.A.
App. B p. 5, VIII.E.
App. C p. 5, VIII.F.
App. D p. 5 VIII.G.
App. E p. 6, VIII.J.
App. F p. 6, VIII.K.
App. G p. 8, IX,A.
App. H p. 8, IX.B.
App. I p. 8, IX.B.
App. J p. 9, IX.E.
App. K p..9, X.A.
App. L p. 9, X.B.
App. M p. 9, X.D.
App. N p. 1 O, XI.A.
App. O p. 12, XI.D.
App. P p. 13, XIII.B.
System design specifications
Drop technical parameters
Delivery system equipment list
Converter specifications
Test equipment available to Iowa City within 24 hours
Preventive maintenance program
Design standards
Franchisee's construction manual
Permit and construction process
Cutover process
Programming during rebuild period
Programming categories after rebuild
Free drop locations
Position of access channels during and after rebuild
Access publicity
Business and repair hours
17
APPENDIX A
General System Design Specifications (550 MHZ)
Distribution - End of Line (77 ch.) NCTA standard methods:
Carrier/Noise
2nd order beats
Triple order beats
Cross modulation
Tap outputs 54 MHZ
Tap outputs 550 MHZ
49
51
51
51
8 db minimum
14 db minimum
Fiber Link (output as node):
Carrie~Noise
2nd order beats
3rd order beats
Cross modulation
51
58
63
63
Note: Performance shall not degrade by more than 2 db at temperature extremes within the
system,
Note:
These specifications may change based on technology changes as well as type of
active electronics being used.
APPENDIX B
Drop Technical Parameters
Times Fiber - 32360 V or its equivalent
APPENDIX C
S/A
System I 550 mhz
Regal Passives and taps 1 ghz
A.T. and T. Fiber various counts
Texcan pathmaker plus node
A.T. and T. Laser links
Times T-10 coax - where necessary
APPENDIX D
Converter Specifications
Regal RR 92 or its equivalent
APPENDIX E
Test Equipment
1. Tektronix Spectrum Analyzer Model//2710 (IOKHZ - 1.8GHZ)
2. Signal Analysis Meter - Wavetek 2000 capable of:
A. Signal levels
B, C/N ratios
C. Num in %
3. Trilithic Frequency Counter (TFC 450 MHZ)
4, Wavetek Model//1067 Bench Sweep
5. Tektronix Field Sweep System Model//2722/2721
6. Vitek Leakage Detector Model RDR-1
7. Comsonics Leakage Detector Sniffer I1 & IIl's
8. Tektroni~ Model 1730 Waveform Monitor
9. Tektronix Model 1503B TDR Cable Tester
10. Signal Generator Model MC-50
APPENDIX F
TCI of Eastern Iowa Leakage Monitoring PrOcedures
The Iowa City system is divided up into six leakage areas. Each area is assigned to one
technician. One day every week is set aside for each technician to perform leakage
monitoring and repair in their area. It is the technician's responsibility to make sure that his
or her entire area is covered and all detected leaks repaired each quarter.
APPENDIX G
DESIGN STANDARDS
EXCERPTED FROM THE IOWA CITY JOINT MUNICIPAL DESIGN STANDARDS
PART 6 - UTILITY WORK AND OTHER CONSTRUCTION
WITHIN PUBLIC RIGHT-OF-WAY
6. 01 PERMIT REQUIRED:
A right-of-way construction permit is required to work within the public rights-
of-way of Iowa City, Coralvilla and North Liberty. Permits may be obtained
from the City Engineer in Iowa City and CoraIville and from the Building Official
in North Liberty. Permits for utility work must be obtained by the owner of the
utility. A right-of-way construction permit is not required for sidewalk,
driveway, or mail box construction. See Parts 2 and 3 for the construction of
sidewalks and driveways and Section 6.03A for the construction of mailboxes.
6. 02 TRAFFIC CONTROL:
The permittee is responsible for all traffic control and work site safety, Traffic
control shall meet the standards for Work Zone Traffic Control as defined in the
current edition of the Manual on Uniform Traffic Control Devices for Streets and
Highways. A traffic control plan may be required by the City Engineer.
The permittee shall provide adequate lighted barricades and/or fencing to
protect pedestrians. All excavations shall be fenced when the contractor is not
at the site.
Cm
There may be situations where the traffic load or site conditions will allow only
a portion of the street to be closed at one time. On collector and arterial
streets, contractors may be required to bore and jack to place a new utility
beneath the street surface.
6. 03 MISCELLANEOUS CONSTRUCTION:
Mail Boxes - The base of all mail boxes shall be a minimum of 18 inches from
the edge of the pavement. Brick or other masonry support structures are not
allowed, Contact the local post office for current regulations regarding the
height and offset of the face of the box.
Retaining Walls - Private retaining walls are not allowed within the public right-
of-way without an agreement for temporary use of public right-of-way approved
by the City Council.
Cm
Monitoring Wells - Monitoring wells are allowed in the public right-of-way only
when it can be shown that the wells cannot be located on private property,
Monitoring wells are subject to special permit conditions.
6. 04 CLEAR ZONES:
On streets with curbs, the clear zone shall be 10' for four-lane facilities and 3'
for two-lane facilities. On streets without curbs, the clear zone shall be 10' for
two-lane and four-lane facilities.
Variances to clear zone requirements will be considered for overhead electrical
facilities where compliance will significantly impact existing trees. In no case
will a clear zone of less than 18 inches be allowed. A clear zone variance must
be approved by the City Engineer.
6. 05 EXCA VA TION AND BACKFILL:
Within public right-of-way, backfill shall consist of Class A crushed stone or
suitable job excavated material placed in one foot lifts compacted to 90%
Modified Proctor Density. If crushed stone is used, the top 12 inches of backfill
shall consist of suitable job excavated materials. Flowable mortar may be used
upon approval of mix design by the City Engineer. Sand backfill is not
permitted; however, sand may be used as utility bedding.
In all other areas backfill shall consist of suitable job excavated material placed
in one foot lifts and compacted to 85% Modified Proctor Density.
6.06 WORK AROUND TREES:
A. Use care to prevent work within the drip line of trees.
When work falls within the drip line of trees, contact the City Engineer or City
Forester.
6. 07 RESTORATION OF BRICK STREET SURFACE:
A, Use care to salvage bricks during excavation.
Construct a 7 inch thick base of IDOT M-3 concrete. Allow enough depth for
installation of brick on a sand cushion,
Brick shall be placed on a sand cushion making sure the pattern and elevation
match the surrounding street.
A 50% sand and 50% Portland cement mixture shall be swept into the brick
joints and fogged with a mist of water to insure seating of the brick,
6. 08 RESTORATION OF ASPHAL T O VERLA Y ON BRICK STREETS:
Construct a 7 inch thick base of IDOT M-3 concrete flush with the top of the
surrounding bricks.
Tack and place 3/8-inch IDOT Type A mix asphalt and compact to the proper
elevation.
6.09
RESTORATION OF ASPHALT OVERLAY ON PORTLAND CEMENT CONCRETE
STREETS:
Construct a concrete base of the same thickness as was removed using M-3
mix. An IDOT type BT-3 joint shall be used to joint the base to existing
concrete. Use//'5 epoxy coated bars, 24 inches in length, spaced 30 inches on
center drilled and grouted 9 inches into the existing slab. The concrete base
shall be flush with the existing concrete.
B. Tack and place e/a-inch Type A asphalt and compact to the proper elevation.
6. 10 RESTORATION OF PORTLAND CEMENT CONCRETE STREETS:
Concrete shall be removed to the nearest longitudinal joint and a minimum of
half the panel between transverse joints. Only full or half panels may be
removed. Full panels must be removed if the portion to remain is cracked or
settled,
B. Concrete shall be sawn to insure a clean break at the joints.
An IDOT type BTo3 joint shall be used to joint to existing concrete. Use #5
epoxy coated bars, 24 inches in length, spaced 30 inches on center drilled and
grouted 9 inches into the existing slab.
Place new concrete of the same thickness as was removed using IDOT M-3
mix,
E.' All joints shall be sawn and sealed according to IDOT detail RH-51.
6. 11 OTHER SURFACES:
All areas outside the paving which are disturbed shall be restored to their
original condition.
When approved by the governing authority, unimproved streets (rock or rock
and oil, seal coated streets, or asphaltic concrete surfaced streets) may be
repaired or restored with Bituminous Seal Coat consisting of one or more
applications of Binder Bitumen with one or more successive applications of
cover aggregate. Materials, Equipment and Construction methods shall be in
general conformity with Section 2307 of the current Iowa Department of
Transportation Standard Specifications for Highway and Bridge Construction.
6. 12 MAINTENANCE:
Seeding or sodding of disturbed areas shall be maintained until watering is no
longer required for self-sustaining growth,
The owner of the utility will be responsible for repair or maintenance of settled
areas within the right-of-way and pavement repairs for a period of five years
from the date the work is completed.
APPENDIX H "
Franchisee's construction manual is on file with the City Clerk.
City of Iowa City
MEMORANDUM
APPENDIX I
Date:
January 17, 1995
To:
From:
Drew Shaffer
Rick Fosse ]~
Re: Cable Franchise
Please note my comments at the bottom of page 7 of the proposed franchise. A copy of the
applicable portion of the design standards is attached for your reference. Since the design
standards have not yet been approved by Council, I recommend that they be incorporated into
an appendix of the franchise to prevent any problems related to the timing of Council approval
of the design standards verses approval of the franchise. I do not expect a problem getting
Council approval of this portion of the design standards since it merely formalizes existing
practice.
Also atta'~hed is a copy of the Right-of-Way construction permit as you have requested. A
$1,000 deposit will be required to cover all locations of the proposed work. However, if it
becomes necessary to use a portion of the deposit for restoration or cleaning of public
right-of-way, no additional work may occur until the full amount of the deposit is restored.
Two thirds of the deposit will be refunded Upon completion of the work and the remaining
third will be refunded after one year provided all restoration has remained in satisfactory
condition. The time required for review of a right-of-way construction permit is specified in
the proposed franchise and is acceptable to us. Kevin O'Malley should be consulted regarding
insurance requirements for the permits. Kevin will need a general description of the type and
scope of work to be performed prior to specifying limits.
If you have questions regarding any of this information, please call me at 5143.
CC:
Chuck Schmadeke
Kevin O'Malley
APPENDIX I
C I TY OF IOWA C I TY, IOWA
ROW CONSTRUCTION PERMIT
OO5675
DATE
NAME
ADDRESS
PURPOSE AND LOCATION OF WORK
A~4OUNT OF ANNUAL
DEPOSIT ON FILE
AMOUNT OF SPECIAL DEPOSIT
INSURANCE CERTIFICATE ON FILE
SKETCH OF JOB LAYOUT:
Approved for construction by:
SPECIAL PROVISIONS:
1) Call for underground utility locates One Call #: 1-800-292-8989
2) Traffic control standard must meet specifications in "Work Zone Traffic
Control - 1988 Edition" manual.
THIS SECTION FOR STREET DEPT. PATCH REPLACEMENT TO BE CHARGED AGAINST DEPOSIT.
Type of Surface
Backfill Haterials
Total 8nN)unt billed =
Date 5tarred
e $ __ / sq.yd. =
e $ __ / sq.yd. =
Date Finished
FOR CASH DEPOSITS ONLY
Date of Initial Inspection Date 2/3 deposit returned
Date of Final Inspection Date final 1/3 deposit returned
ComDlents:
InSpectOr
V/hi te - Permt tcee
Canary - Engineering
APPENDIX J
The upgrade/rebuild will involve installing and activating fiber optics cable while the coaxial
cable is still activated and in operation. There will be a series of fiber nodes designed for the
upgrade/rebuild. As each node is installed and completed, it will be activated. The activation
of one node will not interfere with or interrupt the completion of a separate node. In the
event the ibompany is confronted with the loss of signal of more than one street at a time,
the Company will make every effort possible to complete the work during minimal viewing,
such as 12:00 a.m, to 6:00 a.m. or at the time recommended by tha City.
APPENDIX K
Programming During Rebuild*
Public Access
KGAN
Government Channel
HBO
The Disney Channel
KWWL
University of Iowa Channel
KCRG
Library Channel
Iowa City School's Channel
KOCR
KIlN
Cinemax
The Family Channel
Lifetime
C-SPAN
Univision
fX
The Weather Cl~annel
CNBC/Sportschannel
AMC
Encore -
USA
CNN
The Discovery Channel
CNN Headline News
TNN
WGN
WTBS
TNT
ESPN
VH-1/Comedy Channel
A&E
BET/Bravo
Nickelodeon
MTV
Request I
Franchisee reserves the right to alter, change or modify programming at any time subject to
federal law.
APPENDIX L
Programming Categories After Rebuild
Needs and interests of population of Iowa City as indicated by Cable Administrator records
and Consumer Market Study by Rice, Williams
New Programming
Science fiction programming
Religious programming
Cartoon programming
Senate programming
Secondary and adult le.arning programming
Travel programming
Higher educational programming
Court programming
Pay programming
International programming
Disability-related programming
Quad City broadcast programming
Children's programming
News programming
Current Programming to become full-time
Comedy programming
Music programming
Sports programming
Black entertainment programming
Arts programming
APPENDIX
Iowa City School Sites
Community Education Center
CitV High
Coralvilla Central Elementary
Hoover Elementary
Horn Elementary
Kirkwood Elementary
Lemme Elementary
Lincoln Elementary
Longfellow Elementary
Lucas Elementary
Mann Elementary
Northwest Jr. High
Roosevelt Elementary
Shimek Elementary
Southeast Jr. High
Twain Elementary
West High School
Grant Wood Elementary
Irving Weber School
Other Schools
Regina Elementary
Regina High School
Willowwind School
Kirkwood Community College
Free Drops
Public Buildings
Civic Center
Senior Center
Recreation Center
Library
Fire Stations 1, 2, 3
Broadway St. Neighborhood Center
Pheasant Ridge Neighborhood Center
Other Sites
Future neighborhood centers
Future access organization(s) sites
APPENDIX N
Access Channel Positions
During and After Rebuild
PATV " Channel 2
Government Channel Channel 4
University of Iowa Channel 8
Library Channel 10
ECC Channel 11
APPENDIX 0
The Company agrees to insert into subscriber handbooks, information about local
access channels. The cost of printing, etc. of this information shall be the sole
responsibility of the access programming prorider (government, education, public).
The Company reserves the right to approve content.
The Company agrees to allow billing messages or bill stuffers to be included in
subscribers' bills at the rate on one per year subject to approval of content by the
Company, availability and adequate advance notice. The cost of printing and insertion
shall be the responsibility of the access programming proriders (government,
education, public).
APPENDIX P
Business Hours:
Service Hours:
Business and Repair Hours
8 AM - 6 PM Monday-Friday
9 AM - 5 PM Saturday
8 AM - 5 PM Monday- Saturday
On-call - 24 hours per day, seven days a week
'!
Sec. 12-4-1:
Sec. 12-4-2:
Sec. 12-4-3:
Sec. 12-4-4:
Sec. 12-4-5:
Sec. 12-4-6:
Sec. 12-4-7:
Sec. 12-4-8:
Sec, 12-4-9:
Sec. 12-4-10:
Sec, 12-4-11:
Sec. 12-4-12:
Sec. 12-4-13:
Sec. 12-4-14:
Sec. 12-4~15:
Sec. 12-4-16:
Sec. 12-4-17:
Sec. 12-4-18:
Sec. 12-4-19:
Sec. 12-4-20:
Sec. 12-4-21:
Sec, 12-4-22:
Sec. 12-4-23:
Sec. 12-4-24:
Sec. 12-4-25:
Sec. 12-4-26:
$ec. 12-4-27:
Sec. 12-4-28:
Sec. 12-4-29:
Sec. 12-4-30:
Sec. 12-4-31:
Sec. 12-4-32:
Sec. 12-4-33:
Sec. 12-4-34:
Sec. 12-4-35:
Sec. 12-4-36:
Sec. 12-4-37:
Sec. 12-4-38:
CHAPTER 4. CABLE TELEVISION
DIVISION 1. ENABLING ORDINANCE
Short Title
Definitions
Cable Television Administrator and Broadband Telecommunications
Commission
Regulatory Jurisdiction and Procedures
Significance of Franchise
The Cable Television Franchise
Operation of Franchise
Rights Reserved to the City
Applications for Franchise
Acceptance and Effective Date of Franchise
Termination of Franchise
Reports and Records of the Grantee
Franchise Payment
Liability and Indemnification
Bonds
Fees, Rates and Charges
Public, Education and Government Connection to Cable Television System
Interconnection of Network
Construction Timetable for Initial Construction
Construction Timetable for Rebuild Construction
Network Description
Network Technical Requirements
Performance Measurements
Construction Standards
Erection, Removal and Common Use of Poles
Construction Reporting Requirements
Channels to be Provided
Conditions of Street Occupancy
Unauthorized Connections or Modifications
Preferential or Discriminatory Practices Prohibited
Installations, Connections, and Other Services
Service Calls and Complaint Procedures
Transfer
Publications Costs
Ordinances Repealed
Separability
Time is of the Essence to this Ordinance
No Waiver of Rights
2
DIVISION 2. RATE REGULATIONS
Sec. 12-4-39: Rate Regulation Proceedings
Sac. 12°4-40: Certification
Sec. 12-4-41: Notification of Changes
Sac. 12-4-42: Cable Official
Sac. 124-1: Short title.
This article shall be known and may be cited as the "Cable Television Franchise Enabling
Ordinance."
Sac. 12-4-2: Definitions.
For the purpose of this article 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.
Access or public, government, and educational access channels shall mean public,
educational, government, library, and University access channels.
Additional service shall mean a subscriber service provided by the Grantee for which a
special charge is made based on program or service content, time or spectrum space usage.
Annual gross revenues means all revenue received by the Grantee from all sources in
connection with the operation of Grantee's cable television system. Gross revenues shall
include, witl~out limitation, amounts for all cable service, including but not limited to, basic
service and tier service, premium and pay-per-view services, advertising, leased access,
installation and all other revenues derived from the operation of Grantee's cable television
system. Gross revenues shall not deduct the following: (1) any oJ3erating expense, (2) any
accrual, including without limitation, any accrual for commissions or (3) any other
expenditures, regardless of whether such expense, accrual or expenditure reflects a cash
payment, but revenue shall be counted only once in determining Gross Revenue. Gross
revenues shall also include the revenue of any affiliate, subsidiary, parent, or any person or
entity in which each Grantee has a financial interest, derived from the operation of the cable
television system for advertising, or for any other business operation of the cable television
system, to the extent such revenue is derived through any means that has the effect of
avoiding the payment of franchisee fees that would otherwise be paid to the Grantor.
Revenues of both Grantee and an affiliate, subsidiary, parent, or any person or entity in which
the Grantee has a financial interest that represent a transfer of funds between them and that
would constitute gross revenues of both the Grantee and the affiliate, subsidiary, parent, or
any person or entity in which the Grantee has a financial interest shall be counted only once
for purposes of determining gross revenues. Gross revenues shall not include franchise fees,
any other fee, assessment, sales or other similar tax imposed by law on subscribers or that
Grantee is legally obligated to collect.
3
Basic subscriber television services or basic services means a separately available basic
service tier to which subscription is required for access to any other tier of service. Such
basic service tier shall, at a minimum, consist of the following: all signals carried in fulfillment
of the Cable Act, Sections 61a, and 61 5; any public, educational, and governmental access
programming required in this ordinance or the franchise; any signal of any television broadcast
station that is provided by the cable operator to any subscriber, except a signal which is
secondarily transmitted by a satellite carrier beyond the local service area of such station.
Additional signals may be added to the basic tier by the Grantee.
Cable service means the one-way transmission to subscribers of (i) video programming,
or (ii) other programming service, and subscriber interaction, if any, which is required for the
selection of such video programming or other programming service.
Cable television system channel capacity means the highest total number of cable
television channels on which television signals from separate sources may be delivered
downstream simultaneously to every subscriber in the network, The network may have
additional channel capacity for specialized or discrete purposes, but the technical performance
specified shall not be materially degraded thereby.
Cable television channel means a portion of the electromagnetic frequency spectrum
which is used in a cable system and which is capable of delivering a television channel as
defined by the Federal Communications Commission.
Cable television system or cable system, also referred to as "system," means a facility,
consisting of a set of closed transmission paths and associated signal generation, reception
and control equipment that is designed to provide cable service which includes video
programming and which is provided to multiple subscribers within a community, but such term
does not include (A) a facility that serves only to retransmit the television signals of one or
more television broadcast stations; (B) a facility that serves only subscribers in one or more
multiple unit dwellings under common ownership, control, or management, unless such facility
or facilities uses any public rights-of-way; (C) a facility of a common carrier which is subject,
in whole or in part, to the provision of Title I1 of the Cable Act, except that such facility shall
be considered a cable system to the extent such facility is used in the transmission of video
programming directly to subscribers; or (D) any facilities of any electric utility used solely for
operating its electric utility systems.
Channel frequency response means 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.
City shall mean the City of Iowa City, Iowa, its officers and employees unless otherwise
specifically designated, the area within the territorial City limits of the City and such territory
presently outside the City limits over which the City may assume jurisdiction or control by
virtue of annexation.
Closed-circuit or institutional service means such video, audio, data and other services
provided to and between institutional users. These may include, but are not limited to,
one-way video, two-way video, voice, audio or digital signals transmitted among institutions
and/or to residential subscribers.
4
Commence operation means operation will be considered to have commenced when
sufficient distribution facilities have been installed so as to permit the offering of "full network
services" to at least twenty-five (25) percent of the dwelling units located within the
designated "service area."
Commission refers to the Broadband Telecommunications Commission.
Communications Policy Act or Cable Act means the Cable Communications Policy Act of
1984 and the Cable Television Consumer Protection and Competition Act of 1992 as it may
be amended or succeeded.
Complaint means an oral or written indication from a subscriber of a problem with any
aspect of cable service.
Contiguous shall mean abutting or within two hundred (200) feet.
Council shall mean the City Council of the City of Iowa City, and any legally appointed
or elected successor or agency.
Data grade shall mean coded transmissions primarily digital in nature.
Days shall mean business days.
Downstream means the direction of transmission over the cable television system from
the "head end" or "hub" to a subscriber's terminal.
Drop shall mean a coaxial connection from feeder cable to the subscriber/user television
set, radio or other terminal.
Fair market value means the price that a willing buyer would pay to a willing seller for a
going concern based on the system valuation prevailing in the industry at the time.
FCC shall mean the Federal Communications Commission and arty legally appointed or
elected successor.
Franchise means a franchise contract entered into voluntarily by the Grantee, containing
the specific provisions of the franchise granted, including referenced specifications, franchise
proposal, applications and other related material. The franchise granted pursuant to this
ordinance grants the nonexclusive rights to construct, operate and maintain a cable
communications system along the streets and public ways and grounds within all or a
specified area in the City. Any such authorization, in whatever form granted, shall not mean
or include any license or permit required for the privilege of transacting and carrying on a
business within the City as required by other ordinances and laws of the City.
Franchise area means the entire City, or portions thereof, for which a franchise is granted
under the authority of this ordinance. If not otherwise stated in the franchise, the franchise
area shall be the corporate limits of the City, including all territory thereafter annexed to the
City.
Franchise fee means the percentage, as specified by this ordinance, of the Grantee's
gross revenues from all sources payable in exchange for the rights granted 3ursuant to this
ordinance and the franchise agreement.
Full network service shall mean all "basic services" and "additional services" offered by
the Grantee.
Grantee means all persons including, but not limited to, subsidiaries, parents or affiliate
companies, associations or organizations having any rights, powers, privileges, duties,
liabilities or obligations, under this article, and under the franchise ordinance, collectively
called the "franchise," and also includes all persons having any 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 by any subcontract, transfer, assignment,
management agreement or operating agreement or an approved assignment or transfer
resulting from a foreclosure of a mortgage security agreement or whether otherwise arising
or created, and shall include the lawful successor, transferee, or a assignee of such franchisee
or Grantee.
Head end shall mean the land, electronic processing equipment, antennas, tower, building
and other appurtenances normally associated with and located at the starting point of a cable
television system, excluding the studio.
Hub configuration means a cable television system design technology wherein all
transmission paths either originate or terminate at a central location within the community.
Installation shall mean the extension and/or construction of the system from the main
trunk and/or feeder cable to subscribers' terminals except where such a procedure is required
by this article without charge when it will mean the extension and/or construction of the
system to one point in a designated building.
Local distribution center shall mean a facility, within the community remote from but
connected to the "hub," which distributes signals from the "hub" to a specified area in the
cable television system.
Local distribution center shall mean a facility which the originates from a "local
distribution center" as opposed to the "hub."
May is permissive.
Network noise means that combination of undesired and fluctuating disturbances within
a cable telewsion channel, exclusive of unclesired 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 four-MHz band above the
lower channel boundary of a cable television system.
New housing area shall mean any area containing any newly constructed, rehabilitated,
or restored residential or commercial unit which does not exist prior to the effective date of
the franchise.
6
Physicalmiles ofplant shall mean total miles of trunk, feeder,super-trunk, and fiber optic
cable.
Person means an individual, partnership, association, organization or corporation or any
lawful successor transferee.
Public-rights-of-way or streets andpublic grounds means the surface, the air space above
the surface, and the area below the surface of any public street, highway, lane, path, alley,
sidewalk, boulevard, drive, bridge, tunnel, park, parkways, waterways, utility easements or
other public right-of-way now or hereafter held by the City which shall entitle the City and the
Grantee to the use thereof for the purpose of installing and maintaining the Grantee's cable
television system. No reference herein, or in any franchise, to the "streets and public
grounds" shall be deemed to be a representation or guarantee by the City that its title to any
property is sufficient to permit its use for such purpose, and the Grantee shall, by its use of
such terms, be deemed to gain only such rights to use property in the City as the City may
have the undisputed right and power to give.
Reasonable notice shall mean the provision of notice of contemplated action delivered at
least forty-eight (48) hours prior to such action.
Resident means any person residing in the City or as otherwise defined by applicable law.
Residential subscriber means a subscriber who receives a service in an individual dwelling
unit where the service is not to be utilized in connection with a business, trade or profession.
Sale shall include any sale, asset exchange or offer for sale.
Shall and must means each is mandatory.
Strand mile shall mean messenger strand as measured from pole to pole without taking
into consideration sag or downguys, and for buried plant, actual trench feet.
Studio shall mean the land, electronic processing equipment, towers, building, cameras,
lights and other appurtenances normally associated with and located at the Grantee's local
origination and/or public access plants of a cable television system, excluding the head end.
Subscriber terminalmeans an electronic device which converts signals to a frequency not
susceptible to interference within the television receiver of a subscriber, and any channel
selector which permits a subscriber to view all signals delivered at designated converter dial
locations at the set or by remote control.
System facilities means the cable communications system constructed for use within the
City, without limitation, the headend, antenna, cables, wires, lines, towers, amplifiers,
converters, health and property security systems, equipment or facilities located within the
corporate limits of the City designed, constructed or wired for the purpose of producing,
receiving, amplifying and distributing by coaxial cable, fiber optics, microwave or other means,
audio, radio, television and electronic signals to and from subscribers, in the City and any
other equipment or facilities located within the corporate limits of the City intended for the
use of the cable communications system; provided, however, such system facilities excludes
7
building, contracts, facilities, and equipment where its sole use is for providing service to
other system facilities located outside the City limits.
Substantially completedmeans operation will be considered substantially completed when
sufficient distribution facilities have been installed so as to permit the offering of "full network
services" to at least ninety (90) percent of the dwelling units in the service area to which
access is legally and reasonably available.
Terminalisolation means at any subscriber terminal, the attenuation between that terminal
and any other subscriber terminal in that network.
Upstream means a signal originating from a terminal to another point in the cable
television system including video, audio or digital signals for either programs or other uses
such as security alert services, etc,
Sac, 12-4-3: Cable Television Administrator and Broadband Talecommunications Commission.
The City Manager is hereby authorized to appoint a Cable Television Administrator for the
purpose of exercising the City's continuing administration of the franchise. Such
responsibility shall include but not be limited to the following matters:
Receive and investigate such complaints, disputes or disagreements as may be
directed or referred to the City of Iowa City, Iowa, between subscribers or potential
subscribers and Grantees of a cable television system and other distribution
systems interconnected with the cable television system, not first able to resolve
their differences.
Report recommendations upon complaints, disputes or disagreements after
investigation to the Broadband Talecommunications Commission for the issuance
of finding.
Review and audit reports, records, communications and Grantee regulations
submitted to the City of Iowa City, Iowa, and conducting such inspections of the
system as may be necessary in support of such review as provided for in the Cable
Television Enabling Ordinance.
Work with the public and the media to assure that all tariffs, rates, charges and
rules pertinent to the operation of the cable television system in the City of Iowa
City, Iowa, are made available for inspection by the public at reasonable hours and
Upon reasonable request.
Confer and coordinate with the Grantee on the interconnection of the City's cable
television system with other similar networks.
6. Advise the Broadband Talecommunications Commission.
7. Other such duties as the City Manager or Broadband Telecommunications
Commission may assign.
8
8. Promote usage and understanding of the access channels.
Research and recommend new technologies that may be useful to the City,
community, and cable system.
Commission established: Within thirty {30) days of the granting of the first franchise,
there shall be appointed a Commission to be known as the Broadband Telecommunica-
tions Commission.
Composition and term: The Broadband Telecommunications Commission shall consist of
five {5) citizens of the City appointed by the City Council for a term of three (3) years;
except, that the first appointees shall be appointed one (1) for a term of one (1) year, two
(2) for a term of two (2) years and two (2) for a term of three (3) years; and thereafter,
each shall be appointed for a term of three {3) years, Following system completion, it is
recommended that a majority of the members be subscribers to the system at the time
of their appointment.
Powers and duties: The duties of the Broadband Telecommunications Commission shall
be as follows:
Resolving disputes or disagreement between subscribers, potential subscribers and
Grantee should such parties be unable first to resolve their dispute, The Broadband
Telecommunications Commission shall conduct a public hearing upon any petition
by any person seeking resolution of a dispute concerning the operation of any
franchise granted hereunder, The hearing shall be conducted pursuant to the Iowa
Administrative Code, and following such hearing, the Broadband Telecommunica-
tions Commission shall issue its finding or determination. Said finding or decision
shall be final, and any person aggrieved may seek relief therefrom in the District
Court of Iowa as provided by State law.
Reviewing and auditing reports submitted to the Cjty as required and said such
other correspondence as submitted to the City concerning the operation of the cable
television system so as to insure that the necessary reports are completed and
fulfilled pursuant to the terms of this ordinance.
Work with the public and the media to assure that all records, rules and charges
pertinent to the cable television system in the City of Iowa City are made available
for inspection at reasonable hours upon reasonable notice.
Confer with the Grantee and advise on the interconnection of the City's cable
system with other cable and communications systems.
Subsequent to the initial franchise, solicit, review and provide recommendations to
the City Council for selection of applicants for franchise under this ordinance.
initiate inquiries, receive requests for review of rates charged by the Grantee and
provide recommendation on such actions to the City Council.
9
Conduct evaluations of the system at least every three (3) years with the Grantee
and, pursuant thereto, make recommendations to the Council concerning system
improvements and amendments to this ordinance or any franchise agreement.
Establish and administer sanctions as authorized by the City Council to insure
compliance with this ordinance.
To make recommendations to the Grantee of the cable television system and to the
educational and governmental users of the educational and governmental access
channels.
10. To insure that the Grantee makes the public access channel available to all residents
of the City on a nondiscriminatory basis.
11. To assure that the operation of the public access channel be free of program
censorship and control.
12.
To perform such other duties and functions relative to public access channels as
may be appropriate in order to maximize its use among the widest range of
individuals, institutions and other organizations within the City. This shall include
recommendations to the City Council for utilization of the annual franc hise payment.
De
Rules and regulations: The Broadband Telecommunications Commission shall adopt such
rules and regulations as are necessary to carry out its functions and to insure that due
notice is given to all parties concerning any hearing on any complaints to said Broadband
Telecommunications Commission and the hearings are held promptly in accordance with
reasonable notice to all parties. The Broadband Telecommunications Commission shall
also have such powers to include the election of its own officers.
Sac. 12-4-4: Regulatory jurisdiction and procedures.
Continuing regulatoryjurisdiction: The City shall have continuing regulatory jurisdiction
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 thereunder. Provided, however, such exercise of
rights or powers subsequent to the effective date of a franchise will not impair the rights
of the Grantee thereunder, and if locally imposed, place an undue financial burden on
such Grantee.
B. Regulatory procedures:
The Broadband Telecommunications Commission shall consider any inquiry or
proceeding, excluding those described in Paragraphs 2 and 3 below, requiring City
Council action to be taken in regard to the cable television system or franchise,
whether upon o~l;~o,~. or request by the Grantee or any other party or on its own
motion and shall submit such consideration, together with the Broadband
Telecommunications Commission's recommendation, to the City Council. Any
action by the City Council on any Broadband Talecommunications Commission
recommendation shall be taken only after thirty (30) days notice of said proposed
10
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 City Council shall act upon this proceeding within one hundred eighty (180)
days of the notice of hearing unless such time is extended by agreement between
the City Council and the Grantee. The decision of the City Council shall become a
final determination.
Rate regulation procedures shall be conducted in accordance with the timeframe
established in Division 2, Rate Regulations.
The City shall have one hundred twenty (120) days to act upon any request for
approval of a transfer that contains or is accompanied by such information as is
required in accordance with FCC regulations and by the City. If the City fails to
render a final decision on the request within one hundred twenty (120) days, such
request shall be deemed granted unless the requesting party and the City agree to
an extension of time.
The public notice required by this section shall state clearly the action or proposed
action to be taken, the time provided for response, including response by the public,
the person or persons in authority to whom such responses shall be addressed and
such other procedures as may be specified by the City Council. If a hearing is to
be held, the public notice shall give the date, location and time of such hearing. The
Grantee will be provided with reasonable notice for any hearing conducted in regard
to its operation.
C. Triennial franchise review:
On or about the third and sixth anniversaries of the effective date of the franchise,
the City will schedule a public meeting or meetings with the Grantee to review the
franchise performance, plans and prospects. The City may require the Grantee to
reasonably make available specified records, documents and information 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.
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.
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
11
procedures set forth herein. The Broadband Telecommunications Commission will
recommend to Council 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.
Expiration: Upon completion of the term of any franchise granted under this ordinance,
the City may in its sole discretion grant or deny renewal of the franchise of the Grantee
in accordance with the provisions of the Cable Act.
Sec. 12-4-5: Significance of franchise.
Franchise nonexclusive: Any franchise granted hereunder by the City of Iowa City, Iowa,
shall not be exclusive and the City reserves the right to grant a franchise to any person,
firm, company, corporation or association at any time. The grant of one franchise does
not establish priority for use over the other present or future permit or franchise holders
or the City's own use of the streets and public grounds. The City shall at all times
control the distribution of space in, over, under or across all streets or public grounds
occupied by the cable communications system.
Franchise amendable: The scope bf any franchise granted hereunder shall be deemed
amendable from time to time by mutual consent, to allow the Grantee and the City to
innovate and implement new services and developments.
Privileges mustbe specified: No privilege or exemption shall be inferred from the granting
of any franchise unless it is specifically prescribed. Nothing in this article shall 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.
Authority granted: Any franchise granted hereunder shall give to the Grantee the right
and privilege to construct, erect, operate, modify and maintain in, upon, along, above,
over and under streets 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 cable television system in the City,
subject to limitations contained in this ordinance.
Previous rights abandoned: A franchise granted hereunder shall be in lieu of any and all
other 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 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.
Subject to otherregulatory agencies'rules andregulations: The Grantee shall at all times
during the life of any franchise granted hereunder be subject to all lawful exercise of the
police power by the City and other duly authorized regulatory state and federal bodies.
12
Pole use agreements required: No franchise granted hereunder shall relieve the Grantee
of any obligation involved in obtaining pole or conduit use agreements from the gas,
electric and telephone companies, or others maintaining poles or conduits in the streets
of the City, wherever the Grantee finds it necessary to make use of said poles or
conduits.
H. No right of property: The award of any franchise hereunder shall impart to the Grantee
no right of property in or on City-owned property.
I. Franchise binding: All provisions of this article and any franchise granted hereto shall be
binding upon the Grantee, its successors, lessees or assignees.
General City ordinances: Any franchise granted by the City is hereby made subject to the
general ordinance provisions now in effect and hereafter made effective. Nothing in the
franchise shall be deemed to waive the requirements of the various codes and ordinances
of the City regarding permits, taxes, fees to be paid, or manner of construction.
No waiver of rights: No course of dealing between the Grantee and the City nor any
delay on the part of the City in exercising any rights hereunder shall operate as a waiver
of any such rights of the City or acquiescence in the actions of the Grantee in contraven-
tion of rights except to the extent expressly waived by the City or expressly provided for
in the franchise.
Sec. 12~4-6: The csble television franchise.
Franchise required: No person, firm, company, corporation or association shall construct,
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 cable service over
a cable television system to any subscriber unless a franchise authorizing the use of the
streets or properties or areas has first been obtained pursuant to the provisions of this
article, and unless such franchise is in full force and effect.
Franchise applications: Public Notice of "Request for Proposals." The City may invite
applications for a cable television franchise by means of a public notice advertising the
availability of its "Request for Proposals."
1. The public notice shall contain, but need not be limited to:
a. A description of the franchise area which is sought.
A statement that a formal "Request for Proposals" is available to prospective
applicants from a City official whose name, address, and telephone number are
specified.
A statement that applications for the franchise must be submitted in writing
in the form and manner specified in the "Request for Proposals" no later than
a date certain.
13
Fm
A statement that all applications will be made available for public inspection
during normal business hours at a specified location.
Request for proposals: Prior to inviting any applications for any television franchise, the
City shall prepare a "Request for Proposals" that shall contain, but need not be limited to,
the following:
A description of the cable television system and services desired by the City
including any system specifications established by the City.
2. A statement specifying the form that all applications shall follow.
A statement indicating the amount of the application fee (if any) to be submitted
with the application, and the manner in which such fee is to be submitted.
A statement that all applications must contain the information required by the
"Request for Proposal."
5. The closing date for the submission of applications.
The name, address, and telephone number of the City official(s) who may be
contacted for further information.
Review of qualifications: Specific permission to operate a cable television system under
the provisions of this article may be granted by the City Council of the City to any
Grantee after: a review of the legal, character, financial, technical qualifications; an
analysis of adequacy and feasibility of the Grantee's construction arrangements; an
assessment of whether public, educational and governmental access channel and
institutional network capacity, equipment, facilities, services, and financial support are
reasonable; a determination of whether the proposal meets the future cable communica-
tions needs of the City; and a review of the provision of other such information,
equipment, services and support as required by the City, and after the City Council has
approved the Grantee's qualifications as a part of a public proceeding affording due
process.
City discretion: The City, at its discretion, may reject any application for a franchise. In
awarding a franchise, the City: shall allow the applicant's cable system a reasonable
period of time to become capable of providing cable service to all households in the
franchise area; may require adequate assurance that the cable operator will provide
adequate public, educational, and governmental access channels and institutional network
capacity, equipment, facilities, services, and financial support; shall determine the ability
of the proposal to meet the future cable communications needs of the City; and may
require adequate assurance that the cable operator has the financial, technical, or legal
qualifications to provide cable service.
Requirement for public hearing on reasonable notice: The City shall conduct a public
hearing prior to awarding any cable television franchise. The hearing shall be preceded
by reasonable notice to each of the franchise applicants and to the public, and shall be
conducted by the City in accordance with the following procedures:
14
There shall be an agenda for the hearing which shall specify the proposal(s) to be
considered at the hearing.
Every person who has applied for a cable television franchise shall appear at the
hearing either in person or by authorized representative. The application of any
applicant not so appearing shall not be further considered, except for good cause
shown.
All applicants shall be given opportunity to participate in the hearing, but nothing
contained herein shall limit the power of the presiding officer to establish reasonable
time limits and otherwise limit repetitive statements or questions.
4. The notice of hearing shall:
a. Conform to all relevant state and local laws and ordinances.
b. Describe the agenda to be considered at the public hearing.
Indicate that copies of all franchise applications are available for public
inspection during normal business hours at a place to be specified in the
notice.
Duration of franchise: Upon filing by the Grantee of the proper acceptance, the bond and
the required insurance and security fund, the franchise shall take effect as provided in
Section 12-4-10 and shall continue in full force and effect for a term to be set by the
Council in the franchise.
H. Exemptions: Paragraphs B, C, D, E, and F of this section do not apply to an incumbent
operator afforded renewal rights under Section 626 of the Cable Act.
Sec. 12-4-7: Operation of franchise.
Operation to be in accordance with rules: The Grantee shall maintain and operate its
cable television system in accordance with the Rules and Regulations of the Federal
Communications Commission, the State of Iowa and/or the City as are incorporated
herein or may be promulgated.
Interruption of service; notification: The Grantee, whenever it is necessary to interrupt
service over the cable television system for the purpose of network maintenance,
alteration or repair, shall do so at such time as will cause the least amount of inconve-
nience to the subscribers, and unless such interruption is unforeseen and immediately
necessary, the Grantee shall give reasonable notice thereof to the affected subscribers.
Office and phone for complaints: The Grantee shall maintain an office within the City
limits which shall be open during all normal business hours, including some week night
and Saturday hours, have a listed local telephone number and be so operated that
complaints and requests for repairs or adjustments may be received at any time.
15
Service records maintained: The Grantee shall at all times make and keep a list of all
complaints and interruptions or degradation of service received or experienced durjng the
term of franchise. The records maintained above shall also include complaint response
time and service restoration period and shall be continuously open to inspection,
examination or audit, subject to subscriber privacy rights pursuant to Section 631 of the
Cable Act, by any duly authorized representative of the City or member of the public.
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 article and any franchise granted hereunder.
Rules to be in conformance with other regulations: None of such rules, regulations,
terms and conditions promulgated under subsection (f) 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.
All rules to be filed with City: Three (3) copies of all rules, regulations, terms and
conditions promulgated under subsection (f) 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 and the copy shall be provided to the
Broadband Telecommunications Commission; no such rules, regulations, terms,
conditions or amendments, additions or deletions thereto shall take effect unless
and until so filed and maintained. This paragraph is not intended to apply to the
Company's personnel and other internal rules and regulations.
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.
Antenna switch: The Grantee, upon request from any subscriber, shall install at a
reasonable charge a switching device to permit a subscriber to continue to utilize the
subscribers own television antenna.
Service response and rebate: The Grantee shall provide "same day 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-four (24) hours.
State of the art: This section shall be reviewed by the City during its triennial reviews
whose timeframes are set forth in Section 12-4-4 (C). In the event that the Grantee, its
parent company, management firm or affiliates have installed state of the art improve-
ments in any system of similar size owned by Grantee, its parent company, management
firm or affiliates, which increase channel capacity and provide additional cable service,
make bi-directional capacity operational from the home, provide improvements in
technological performance, provide for interactive services, and/or other substantial
2
DIVISION 2. RATE REGULATIONS
Sac. 12-4-39: Rate Regulation Proceedings
Sac. 12-4-40: Certification
Sac. 12-4-41: Notification of Changes
Sec. 12-4-42: Cable Official
Sec. 12-4-1: Short title.
This article shall be known and may be cited as the "Cable Television Franchise Enabling
Ordinance."
Sac. 12-4-2: Definitions.
For the purpose of this article 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.
Access or public, government, and educational access channels shall mean public,
educational, government, library, and University access channels.
Additional service shall mean a subscriber service provided by the Grantee for which a
special charge is made based on program or service content, time or spectrum space usage.
Annual gross revenues means all revenue received by the Grantee from all sources in
connection with the operation of Grantee's cable television system. Gross revenues shall
include, without limitation, amounts for all cable service, including but not limited to, basic
service and tier service, premium and pay-per-view services, advertising, leased access,
installation and all other revenues derived from the operation of Grantee's cable television
system. Gross revenues shall not deduct the following: (1) any operating expense, (2} any
accrual, including without limitation, any accrual for commissions or (3) any other
expenditures, regardless of whether such expense, accrual or expenditure reflects a cash
payment, but revenue shall be counted only once in determining Gross Revenue. Gross
revenues shall also include the revenue of any affiliate, subsidiary, parent, or any person or
entity in which each Grantee has a financial interest, derived from the operation of the cable
television system for advertising, or for any other business operation of the cable television
system, to the extent such revenue is derived through any means that has the effect of
avoiding the payment of franchisee fees that would otherwise be paid to the Grantor.
Revenues of both Grantee and an affiliate, subsidiary, parent, or any person or entity in which
the Grantee has a financial interest that represent a transfer of funds between them and that
would constitute gross revenues of both the Grantee and the affiliate, subsidiary, parent, or
any person or entity in which the Grantee has a financial interest shall be counted only once
for purposes of determining gross revenues. Gross revenues shall not include franchise fees,
any other fee, assessment, sales or other similar tax imposed by law on subscribers or that
Grantee is legally obligated to collect.
16
improvements, then the Grantee shall make said improvements available to the City of
Iowa City subscribers within one {1) year.
The City shall hold a hearing to determine whether state of the art technology is required
hereunder. Such hearing shall afford the Grantee an opportunity to make a presentation
on the state of the art and whether the conditions specified herein indicate that a state
of the art change is needed. The City may require the Grantee to implement state of the
art changes which meet the threshold specified herein.
Sac. 12-4-8: Rights reserved to the City.
Governing requirement: At all times during the term of the franchise, Grantee shall
comply with all taws, rules or regulations of the City, state or federal governments, their
regulatory agencies or commissions which are now applicable or may be applicable
hereafter to the construction and operation of the cable communications system,
including without limitation, all laws, ordinances, or regulations now in force or hereafter
enacted. Nothing herein shall be deemed a waiver of Grantee's right to challenge the
validity of any such law, rule or regulation.
Change in law or regulation: Notwithstanding any other provisions of this ordinance to
the contrary, the Grantee shall at all times comply with all laws and regulations of the
local, state and federal government. In the event that any actions of the state or federal
government or any agency thereof, or any court of competent jurisdiction upon final
adjudication, substantially reduce in any way the power or authority of the City under this
ordinance or the franchise, or if in compliance with any local, state, or federal law or
regulation, the Grantee finds conflict with the terms of this ordinance, the franchise, or
any law or regulation of the City, then as soon as possible following knowledge thereof,
the Grantee shall notify the City of the point of conflict believed to exist between such
law or regulation and the laws or regulations of the City, this ordinance and the franchise.
The City, at its option, may notify the Grantee that it wishes to negotiate those provisions
which are affected in any way by such modification in regulations or statutory authority.
Thereafter, the Grantee shall negotiate in good faith with the City in the development of
alternate provisions which shall fairly restore the City to the maximum level of authority
and power permitted by law. The City shall have the right to modify any of the
provisions to such reasonable extent as may be necessary to carry out the full intent and
purpose of this ordinance and the franchise, subject to applicable federal and state law.
Authority: The City reserves the right to exercise the maximum plenary authority, as may
at any time be lawfully permissible, to regulate the cable television system, the franchise
and the Grantee. Should applicable legislative, judicial or regulatory authorities at any
time permit regulation not presently permitted to the City, the City and the Grantee shall
negotiate in good faith to determine what additional regulation by the City shall be
permissible.
Right of amendment reserved to City: The City may from time to time, add to, modify
or delete provisions of this article as it shall deem necessary in the exercise of its
regulatory powers. Provided, however, such exercise of rights or powers subsequent to
the effective date of a franchise will not impair the rights of the Grantee thereunder, and
if locally imposed, place an undue financial burden on such Grantee. Such additions or
17
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.
Grantee agrees to City's rights: The City reserves every right and power which is
required to be reserved or provided by an ordinance 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 lawful exercise of such rights or powers which have
been or will be enacted or established, subject to federal and state law.
City's right of intervention: The City shall have the right to intervene and the Grantee
specifically 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, provided, however,
Grantee shall not be obligated to indemnify the City for any such suit,
Powers of the City: 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.
City's right of inspection: The City reserves the right during the life of any franchise
granted hereunder to inspect all system facilities and property and supervise all
construction or installation work performed subject to the provisions of this article and
to perform network measurements to insure compliance with the terms of the article.
City's right of acquisition: Upon expiration of the term of the franchise or revocation or
other termination as provided by law, the City shall have the right to purchase the cable
television system as specified in Section 12-4-11 ,D.
City's right of network installation: The City reserves the right during the life of any
franchise granted hereunder to install and 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 following conditions: that such installation and maintenance thereof does not
interfere with the operation of the Grantee; that such fixtures be used for governmental
and educational purposes, and the City agrees to indemnify the Grantee for such use.
Sec. 12-4-9: Applications for franchise.
No franchise may be granted until the applicant has successfully completed the
application procedure.
Proposal bond and filing fee: All applicants must provide a proposal bond as
required herein and pay a nonrefundable filing fee to the City often thousand dollars
($ I 0,000.00) the time the application is submitted. This bond and filing fee does
not apply to an incumbent operator afforded renewal rights under Section 626 of
the Cable Act.
Request for proposal.' All applicants must complete the request for proposal (RFP)
issued by the City which shall include but not be limited to the following:
tr
18
m
10.
Name and address of applicant: The name and business address of the
applicant, date of application and signature of applicant or appropriate
corporate officer(s).
Description of proposed operation: A general description of the applicant's
proposed operation, including but not limited to business hours, operating
staff, maintenance procedures beyond those required in the article, manage-
ment and marketing staff complement and procedures and, if available, the
rules of operation for public access.
Signal carriage: A statement of the television and radio services to be
provided, including both off-the-air and locally originated signals.
Special services: A statement setting forth a description of the automated
services proposed as well as a description of the funds, services, and
production facilities to be made available by the Grantee for the public,
municipal and educational channels required to be made available by the
provisions of this article.
Schedule of charges: A statement of the applicant's proposed schedule of
charges as set forth herein.
Corporate organization: A statement detailing the corporate organization of the
applicant, if any, including the names and addresses of its officers and
directors and the number of shares held by each officer and director.
Stockholders: A statement identifying the number of authorized outstanding
shares of applicant's stock including a current list of the names and current
addresses of its shareholders holding three (3%) per cent or more of
applicant's outstanding stock.
Intra-company relationships: A statement describing all intra-company
relationships of the applicant, including parent, subsidiary or affiliated
companies.
Agreements and understandings: A statement setting forth all agreements and
understandings, whether written or oral, existing between the applicant and
any other person, firm, group or corporation with respect to any franchise
awarded hereunder and the conduct of the operation thereof existing at the
time of proposal submittal.
Financial statement: If applicant is a corporation, audited financial statements
for the 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 the applicant is a sole proprietorship, copies of the
"U.S. Individual Income Tax Return" (IRS Form 1040) for the two (2) previous
fiscal years.
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11.
12.
13.
14.
15.
16.
17.
18.
19.
Financial projection: A ten-year operations pro forma which shall include the
initial and continuous 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 pro forma as required in this article,
but shall be separately identified in the pro forroe.
Financial support: Suitable written evidence from a recognized financing
institution, addressed to both 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,
Construction timetable: A description of system construction including the
timetable for provision and extension of service to different parts of the City.
Technical description: A technical description of the type of system proposed
by the applicant, including but not limited to, system, configuration (i.e.) hub,
dual cable), system capacity, two-way capability, etc,
Technical statement: A statement from the applicant's senior technical staff
member or consultant advising that he/she 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 this ordinance,
and that the applicant's planned network and operations will meet all said
requirements.
Existing franchises: A statement of existing franchises held by the applicant
including when the franchises were issued and when the systems were
constructed and the present state(s) of the system(s) in each respective
governmental unit, together with the name and address and phone number of
a responsible governmental official knowledgeable of the applicant.
Convictions: A statement as to whether the applicant or any of its officers or
directors or holders of three (3) per cent or more of its voting stock has in the
past ten (10) years been convicted of or has charges pending for any crime
other than a simple misdemeanor traffic offense, and the disposition of such
case.
Operating experience: A statement detailing the prior cable television
experience of the applicant including that of the applicant's officers, manage-
merit and staff to be associated, where known, with the proposed franchise.
Franchise renewal information: Subject to Section 626 of the Cable Act, if an
application is for renewal of a franchise, the proposal must include, in addition
to the information required in subsections (1) through (18) above:
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A summary of the technical, financial and programming history of the
network since the granting of the original franchise.
A statement and timetable that outlines all proposed changes, expansion
or improvements in the system as to services, programming or technical
specifications during the forthcoming three-year review period.
Specialinterests: In order to maximize the potential of the cable television system,
comparative evaluations of applications will reflect the City's special interest in the
following areas:
Programming and production assistance: A proposal for funding facilities,
equipment or personnel beyond those required elsewhere to be designated to
effect and promote public, educational, and government access, and
community programming development.
Discrete carriage capacity: A proposal for the origination, experimental uses
and/or interconnection by or of agencies specified in Section 12-4-17 for
specialized needs and a plan accommodating such future needs as may arise.
m
Bi-directional capacity: A proposal for effectuating the cable television
system's bi-directional capacity and integration of the City's interactive
system.
Multi-origination: A proposal for system construction in such a way that it is
possible to allow occasional simultaneous cablecasting of different programs
on the same channel to different parts of the City.
University of Iowa: A proposal for interconnecting the City's cable television
system with a University of Iowa cable network as specified by the university
so that residents of the City will benefit from the university's resources.
6. Converters: A proposal for inclusion of converters or other subscriber
technology as part of the basic service.
Institutional network: A proposal to provide bi-directional interconnection of
video, voice, audio and data among public sector locations and interconnect
to the subscriber network.
Home interactive: A proposal to provide two-way services to subscribers
homes.
Additional requirements: The application for franchise shall respond specifically,
and in sequence, to the RFP. Twenty (20) copies of the application shall be supplied
to the City. The City may, at its discretion, consider such additional information as
part of the application.
Supplementation to applications: The City reserves the right to require such
supplementary, additional or other information as the City deems reasonably
21
necessary for its determinations. Such modifications, deletions, additions or
amendments to the application shall be considered only if specifically requested by
the City.
Sac. 12-4-10: Acceptance and effective date of franchise.
Franchise acceptance procedures: Any franchise awarded hereunder and the rights,
privileges and authority granted thereby shall take effect and be in force from and after
the sixtieth (60th) day following the award thereof, provided that within sixty (60) days
following award from the effective date the Grantee shall file with the City the following:
A notarized statement by the Grantee of unconditional acceptance of the franchise,
and
2. A certificate of insurance as set forth in Section 12-4-14, and
3. A letter of credit as set forth in Section 12-4-15 herein, and
Reimbursement to the City for the costs of publication of this article, and cost of
the initial franchising process, and
Writfen notification of the Grantee's location and address for mail and official
notifications from the City.
Forfeiture of proposal bond: Should the Grantee fail to comply with subsection (A)
above, it shall acquire no rights, privileges or authority under this article 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.
Cm
Grantee to have no recourse: The Grantee shall have no monetary recourse whatsoever
against the City for any loss, cost, expense or damage arising out of any provision or
requirement of this article or its regulation or from the City's lawful exercise of its
authority to grant additional franchises hereunder. This shall not include negligent acts
of the City, its agents or employees.
Acceptance of power and authority of City: The Grantee expressly acknowledges that
in accepting any franchise awarded hereunder, it has relied upon its own investigation and
understanding of the power and authority of the City to grant this franchise.
Inducements not offered: The Grantee, by accepting any franchise awarded hereunder
acknowledges that it has not been ~nduced to enter into the franchise by any understand-
ing or promise or other statement, whether verbal or written, by or on behalf of the City
concerning any term or condition of this franchise that is not included in this article.
Sac. 12-4-11: Termination of franchise.
A. Grounds for revocation: The City reserves the right to revoke any franchise and rescind
all rights and privileges associated with the franchise in the following circumstances:
22
If the Grantee should default in the performance of any of its material obligations
under this article or the franchise and fails to cure the default within sixty (60) days
after receipt of written notice of the default from the City, or such longer time as
specified by the City.
If the Grantee should fail to provide or maintain in full force and effect the
construction bond, letter of credit and liability and indemnification coverages as
required in this article.
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.
If a receiver, trustee or liquidator of the Grantee is applied for or appointed for all
or part of the Grantee's assets.
5. If the Grantee makes an assignment for the benefit of creditors.
If the Grantee violates any order or ruling of any State or Federal regulatory body
having jurisdiction over the Grantee, unless the Grantee or any party similarly
affected is lawfully contesting the legality or applicability of such order or ruling and
has received a stay from a Court of appropriate jurisdiction.
7, If the Grantee evades any of the provisions of this ordinance or the franchise.
8. If the Grantee practices any fraud or deceit upon the City or cable subscribers.
m
Subject to Sections 12-4-19 and 12-4-20, if the Grantee's construction schedule
is delayed later than the schedule contained in the franchise or beyond any
extended date set by the City.
10. If the Grantee materially misrepresents facts in the application for a franchise.
11. If the Grantee ceases to provide services over the cable communications system for
seven (7) consecutive days for any reason within the control of the Grantee.
12. If the Grantee fails to comply with any material access provisions of this ordinance
or the franchise.
Procedure prior to revocation: Upon the occurrence of any of the events enumerated in
subsections {A)(1), (2), (11), (12), and (13) of this section, the City 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-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 City Council.
23
Effect ofpending litigation: Unless a stay is issued by a Court of appropriate jurisdiction,
pending litigation or any appeal to any regulatory body or court having jurisdiction over
the Grantee shall not excuse the Grantee from the performance of its obligations under
this ordinance or the franchise. Failure of the Grantee to perform material obligations
because of pending litigation or petition may result in forfeiture or revocation pursuant to
the provisions of this section.
Purchase of system by City: If a renewal of a franchise held by a Grantee is denied and
the City acquires ownership of the cable system or effects a transfer of ownership of the
system to another person, any such acquisition or transfer shall be:
At fair market value, determined on the basis of the cable system valued as a going
concern but with no value allocated to the franchise itself, or
In the case of any franchise existing on the effective date of this title, at a price
determined in accordance with the franchise if such franchise contains provisions
applicable to such an acquisition or transfer.
If a franchise held by the Grantee is revoked for cause and the City acquires
ownership of the cable system or effects a transfer of ownership of the system to
another person, any such acquisition or transfer shall be at an equitable price.
Restoration of public and private property: In removing its plants, structures and
equipment, the Grantee shall refill at its own expense any excavation made by it and shall
leave all public ways and places and private property in as good condition as existed prior
to the Grantee's removal of its equipment and appliances, without affecting the electric
or telephone cables, wires or attachments. The City shall inspect ar .t approve the
condition of the public ways and public places and cables, wires, attachrr. ents and poles
after removal. Liability insurance, indemnity, the performance bond and security fund
provided in this article shall continue in full force and effect during the period of removal.
Restoration by City, reimbursement of costs: If the Grantee fails to complete any work
required by subsection (D) above or any work required by other 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 this article.
Lesser sanctions: Nothing shall prohibit the City from imposing lesser sanctions or
censures than revocation.
Expiration; extended operation: Upon the expiration of a franchise, the C~ty may, by
resolution, on its 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 under the same terms and conditions as specified in this ordinance
and the franchise. All provisions 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.
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Sec. 12-4-12: Reports and records of the Grantee.
Annual financial reports required: The Grantee shall file annually with the City Clerk not
later than three (3) months after the end of its fiscal year during which it accepted a
franchise hereunder and within four (4) months after the end of each subsequent fiscal
year, two (2) copies of:
1. The report to its stockholders; and
An annual, fully-audited and certified revenue statement from the previous calendar
year for the Iowa City system, including subscriber revenue from each category of
service and every source of non-subscriber revenue.
Annual facilities report required: Within thirty (30) days of a request by the City, the
Grantee shall file annually with the City Clerk 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 strand map showing the location of same.
Annual sentice record report required: The Grantee shall make available to the City for
its inspection at the Grantee's office, 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.
Annual measurements report required: The Grantee shall within thirty (30) days of a
request by the City, provide two (2) copies of a report on the network's technical
measurements, as set forth herein.
E. Tests required by City: Technical tests required by City as specified in this ordinance and
the franchise shall be submitted within fourteen (14) days of notification.
Annualoperations reports required: The Grantee shall file annually with the City Clerk not
later than three (3) months after the end of its fiscal year during which it accepted a
franchise hereunder and within four (4) months after the end of each subsequent fiscal
year two (2) copies of the following supplemental information:
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 (5) per cent or more of the voting
stock of the corporation.
A current list of all Grantee's officers and directors including addresses and
telephone numbers.
m
The names of both business and residential addresses and phone numbers of the
cable television system resident manager and engineer.
Two (2) copies of all types of subscriber agreements. Copies of individual
subscribers' agreements are not to be filed with the City.
25
Jm
Copies of all rules and regulations promulgated by the Grantee during the fiscal year
in the conduct of its business in accordance with the provisions of this ordinance.
A copy of the annual report(s) of the parent firm(s) which own an interest of more
than three (3) per cent or more of the voting stock of the Grantee; and such other
annual report(s) of subsidiaries or divisions of the parent firm{s) as the City deems
necessary for the enforcement of this ordinance and the franchise.
Annual subscriber notification: Copies of all annual subscriber notifications required by
the Federal Communications Commission.
Application for certificate of compliance: The Grantee shall give formal notice to the City
that it is seeking a certificate of compliance from the Federal Communications
Commission. Within five (5) calendar days upon filing such a request with the Federal
Communications Commission, the Grantee shall file two (2) copies of its application for
certification with the City Clerk.
Public availability of reports: Such documents and reports as required under this article
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 such reports in ways approved
by the Broadband Telecommunications Commission,
Correspondence: The Grantee shall, upon request of the City, file with the City Clerk a
copy of each 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
cable television system authorized hereunder.
K. City's access to records:
The City reserves the right during the life of any franchise granted hereunder to
have access, necessary for the enforcement of the ordinance and the franchise, at
all normal business hours and, upon the giving of reasonable notice, to all of the
Grantee's books, necessary for the enforcement of contracts, engineering plans,
income tax returns, accounting reports, financial statements and service records
and other like materials relating to the property and the operation under the
franchise, 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 article in the
City's regulatory program.
Additional reports. The Grantee shall prepare and furnish to the City at the times
and in the form prescribed, such additional reports with respect to its operation,
affairs, transactions or property, as may be reasonably necessary and appropriate
to the performance of any of the rights, functions or duties of the City in
connection with this ordinance or the franchise.
The Grantee acknowledges that the reports, books and records which must be
prepared and furnished to the City in connection with this ordinance or a franchise
26
granted under the ordinance may constitute "public records" under state law and
the Grantee may be required to permit examination and copying of such records
upon request. If the City receives a demand from any person for disclosure of any
information which the Grantee has designated as confidential, the City shall
immediately advise the Grantee of the request and provide the Grantee with a copy
of any written request.
L. Proof of bonds and insurance: Grantee shall submit to the City the required bond, or a
certified copy thereof and all certificates of insurance required by this ordinance.
Sec. 12-4-13: Franchise payment.
Filing fee: Applicants for an initial franchise hereunder shall pay a nonrefundable filing fee
to the City of ten thousand dollars ($10,000.00) which sum shall be due and payable at
the time of submission of the application,
Franchising compensation: Grantees of a franchise hereunder shall provide an initial
payment to the City in an amount equal to the direct costs of granting the initial franchise
including but not limited to consultants fees, 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.
Annual franchise payment: Grantees of a franchise hereunder shall pay to the City an
annual fee in an amount equal to five (5) per cent of the "annual gross revenues," as
defined herein, in lieu of all other City's permits and fees, to be utilized by the City to
offset its cable television related regulatory and administrative costs and to maximize
awareness and use of the public, education, and governmental access and institutional
network capacity. If the maximum franchise fee allowed by law is greater than five (5)
percent, the City may require the higher amount. The franchise 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. The
City shall provide the Grantee written notice one hundred and twenty (120) days prior to
collection of an increased franchise fee.
D. Method of computation; interest:
Sales taxes or other taxes levied directly on a per subscription basis and collected
by the Grantee shall be deducted from the local annual gross revenues before
computation of sums due the City is made. Payments due the City under the
provisions of subsection C. above shall be computed quarterly as of March 31, June
30, September 30 and December 31 forthe respective quarters of each year ending
on said dates and shall be paid quarterly within three (3) months after each
respective computation date at the office of the City Clerk during the City Clerk's
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 the
Grantee's Division Controller, reflecting the total amounts of gross revenue and the
above charges, deductions and computations, for the quarterly payment period
covered by the payment.
27
In the event that any payment is not made as required, interest on the amount due,
as determined from the annual gross revenues as computed by a certified public
accountant shall accrue from the date of the required submittal at an annual rate
of twelve (12) per cent. The percentages designated in this section may be
amended no more than once each year by the City Council, consistent with
increased costs for municipal facilities and supervision and applicable rules of other
regulatory agencies.
Rights ofrecomputation: No acceptance of any payment by the City shall be construed
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 article of for the performance of
any other obligation of the Grantee. All amounts paid shall be subject to audit and
recomputation by the City.
Sec. 12-4-14: Liability and indemnification.
Indemnification of franchise: It shall be expressly understood and agreed by and between
the City and any Grantee hereunder that the Grantee shall save the City harmless from
all loss 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
article and the award of a franchise to Grantee, 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 herein.
Indemnification of Cityin franchiseoperation: 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 the installation,
operation or maintenance of the cable television system by the Grantee, its employees
or agents, as authorized herein, whether or not any act or omission complained of is
authorized, allowed or prohibited by this article and any franchise granted hereunder.
This provision shall not apply to acts of the City, its agents or employees.
Reimbursement of costs: The Grantee shall pay and by its acceptance of any franchise
granted hereunder agrees that it will pay all expenses and costs incurred by the City in
defending the City with regard to all damages and penalties mentioned in subsections (a)
and (b) above except as such expenses may arise from the process (as above). Should
the City decide to hire its own defense, such expenses will be borne by the City.
Public liability insurance: The Grantee shall maintain and by its acceptance of any
franchise granted hereunder agrees that it will maintain throughout the term of the
franchise, any extensions thereto or as required in this ordinance, a general comprehen-
sive liability insurance policy naming as the additional insured the City, its officers,
boards, commissions, agents and employees, in a company registered in the State of
Iowa, and which maintains a BEST's rating of "A-" or better, in forms satisfactory to the
City Manager, protecting the City and all persons against liability for loss or damage,
occasioned by the operations of Grantee under any franchise granted hereunder, in the
amounts of:
28
Two million ($2,000,000.00) for bodily injury or death to any one person, within
the limit, however, of three million dollars (93,000,000.00) for bodily injury or
death resulting from any one accident, and
2. One million (~ 1,000,000.00) for property damage resulting from any one accident.
Automobile liability insurance: The Grantee shall maintain, and by its acceptance of any
franchise granted hereunder specifically agrees that it will maintain throughout the term
of the franchise, automobile liability insurance for owned, non-owned, or rented vehicles
in the minimum amount of:
1. ~1,000,000 for bodily injury and consequent death per occurrence;
2. ~1,000,000 for bodily injury and consequent death to any one person; and
3o $500,000 for property damage per occurrence.
Insured: At any time during the term of the franchise, the City may request and the
Grantee shall comply with such request, to name the City as an additional insured for all
insurance policies written under the provisions of this ordinance or the franchise,
Inflation: To offset the effects of inflation and to reflect changing liability Ijmits, all of the
coverages, limits, and amounts of the insurance provided for herein are subject to
reasonable increases at the end of every three (3) year period of the franchise, applicable
to the next three year period, at the sole discretion of the City, upon a finding by the City
of increased insurance risks requiring such changed limits.
Notice of cancellation or reduction of coverage: The insurance policies mentioned above
sha!l contain an endorsement stating that the policies are extended to cover the liability
assumed by the Grantee under the terms of this article and shall contain the following
endorsement:
"This policy may not be canceled nor the amount of coverage thereof reduced
until thirty (30) days after receipt by the City Manager of a written notice of
such intent to cancel or reduce the coverage."
Evidence of insurance filed with City Manager.' All certificates of insurance shall be filed
and maintained with the City Manager during the term of any franchise granted hereunder
or any renewal thereof.
Extent ofliabilitW Neither the provisions of this article nor any insurance accepted by the
City pursuant hereto, nor any damages recovered by the City thereunder, shall be
construed to excuse faithful performance by the Grantee or limit the liability of the
Grantee under any franchise jssued hereunder or for damages, either to the full amount
of the bond or otherwise.
Insurance for contractor and subcontractors: Grantee shall provide coverage for any
contractor or subcontractor involved in the construction, installation, maintenance or
operation of its cable communications system by either obtaining the necessary endorse-
29
ments to its insurance policies or requiring such contractor or subcontractor to obtain
appropriate insurance coverage consistent with this section and appropriate to the extent
of its involvement in the construction, installation, maintenance or operation of Grantee's
cable communications system.
Sac. 12-4-15: Bonds.
Proposalbond: Each applicant for an initial franchise hereunder shall submit a proposal
bond in a form acceptable to the City Manager or a certified check on a bank that is a
member of the Federal Deposit Insurance Corporation, payable to the order of the City in
an amount of twenty-five thousand dollars ($25,000.00). Said bond shall remain in
effect until such time as the applicant accepts the franchise and furnishes both the -
construction bond and the letter of credit as provided herein.
Construction bond: The Grantee shall maintain and by its acceptance of any franchise
granted hereunder agrees that it will maintain through the rebuild or construction of the
cable television system as required by this ordinance, a faithful construction bond running
to the City, with at least (2) good and sufficient sureties or other financial guaranties
approved by the City Manager, in the penal sum total of one million dollars (-~1,000,000.-
00) conditioned upon the faithful performance of the Grantee in the construction or
rebuild of a cable television system complying with related provisions of this ordinance
and the franchise, and upon the further condition that if the Grantee shall fail to comply
with any law, ordinance or regulation governing the construction or rebuild of the cable
television system, there shall be recoverable jointly and severally from the principal and
surety of the bond, any damages or loss suffered by the City as a result, including the full
amount of any compensation, indemnification, or cost of repair, construction, removal or
abandonment of any property of the Grantee, plus a reasonable allowance for attorney's
fees and costs, up to the full amount of the bond. In addition, failure to meet
construction deadlines shall result in forfeiture of said bond or withdrawal from the
construction bond. The bond shall contain the following endorsement:
"This policy may not be canceled nor the amount of coverage thereof reduced
until thirty (30) days after receipt by the City Manager of a written notice of
such intent to cancel or reduce the coverage."
Release of the bond: Upon the City's determination that the construction or rebuild of
a cable television system is complete, the Grantee shall be notified by the City that the
bond required under this section shall be released.
D. Letter of credit:
The Grantee shall obtain, maintain, and file with the City an irrevocable letter of
credit from a financial institution acceptable to the City and licensed to do business
in the State in an amount of seventy-five thousand (~75,000.00), naming the City
as beneficiary for the faithful performance by it of all the provisions of this franchise
and compliance with all orders, permits and directions of any agency of the City
having jurisdiction over its acts or defaults under this contract and the payment by
the Grantee of any claims, liens and taxes due the City which arise by reason of the
construction, operation or maintenance of the system. The letter of credit shall be
30
released only upon expiration of the franchise or upon the replacement of the letter
of credit by a successor Grantee.
Within thirty (30) days after notice to it that any amount has been withdrawn from
the letter of credit pursuant to subsection D. 1. of this section, the Grantee shall pay
to, or deposit with, the City Clerk a sum of money or securities sufficient to restore
such security fund to the original amount of seventy-five thousand dollars
(~75,000.00) up to a total during the franchise term of $500,000.
If the Grantee fails to pay to the City any compensation required pursuant to this
article within the time fixed herein; or, fails, after ten (10) days' notice to pay to the
City any taxes due and unpaid; or, fails to repay to the City, within such ten (10)
days, any damages, costs or expenses which the City shall be compelled to pay by
reason of any act or default of the Grantee in connection with this franchise; notice
of such failure by the office of the City Manager, to comply with any provisions of
this contract which the office of the City Manager reasonably determines can be
remedied by an expenditure of the letter of credit, the City Clerk may immediately
withdraw the amount thereof, with interest and any penalties, from the security
fund. Upon such withdrawal, the City Clerk shall notify the Grantee of the amount
and date thereof.
If the Grantee wishes to contest withdrawal, the Grantee may petition to the
Broadband Telecommunications Commission for a hearing within ten ( 1 O) days from
date notice of withdrawal is mailed or otherwise given.
Replenishment of letter of credit and construction bond: No later than thirty (30) days,
after mailing to the Grantee by certified mail notification of a withdrawal pursuant to
paragraphs C and D above, and after the total amount of funds in the letter of credit is
~50,000, the Grantee shall replenish the letter of credit or construction bond in an
amount equal to the amount so withdrawn. Failure to make timely replenishment of such
amount to the letter of credit and construction bond shall constitute a violation of this
Ordinance.
Sac. 12-4-16: Fees, rates and charges.
Schedule filings: Subject to Federal law, Grantee shall file with the City schedules which
shall describe all services offered, all rates and charges of any kind, and all terms and
conditions relating thereto. No rates or charges shall be effective except as they appear
on a schedule so filed. Grantee shall notify the City and subscribers in writing at least
thirty (30) days prior to the implementation of any change in services offered, rates
charges, or terms and conditions related thereto.
Nondiscriminatory rates: Grantee shall establish rates that are nondiscriminatory within
the same general class of subscribers which must be applied fairly and uniformly to all
subscribers in the franchise area for all so;vices. Nothing contained herein shall prohibit
the Grantee from offering (i) discounts to commercial and multiple family dwelling
subscribers billed on a bulk basis; (ii) promotional discounts; (iii) reduced installation rates
for subscribers who have multiple services; or (iv) discount for senior citizens and/or low
31
income residents. Grantee's charges and rates for all services shall be itemized on
subscriber's monthly bills.
City regulation: To the extent that federal or state law or regulation may now, or as the
same may hereafter be amended to, authorize the City to regulate the rates for any
particular service tiers, service packages, equipment, or any other services provided by
Grantee, the City shall have the right to exercise rate regulation to the full extent
authorized by law, or to refrain from exercising such regulation for any period of time, at
the sole discretion of the City.
Rate regulation of the basic tier and charges: The City will follow FCC Rate Regulations
including, but not limited to, Report and Order, In the Matter of Implementation of
Sections of Cable Television Consumer Protection and Competition Act of 1992: Rate
Requlation, MM Docket 92-266, FCC 93-177 (released May 3, 1993), or as hereafter
amended by the FCC from time to time. In connection with such regulation, the City will
ensure a reasonable opportunity for consideration of the views of interested parties; and
the City Attorney, or designee, is authorized to execute on behalf of the City and file with
the FCC such certification forms or other instruments as are now or may hereafter be
required by the FCC Rate Regulations.
Ability to petition: If applicable, the City shall have the right to petition the Federal
Communications Commission or other appropriate agency or organization to obtain rate
regulation authority or to petition the federal body to review or regulate rates in the City.
H m
Notification of charges: The Grantee may establish charges for its services not specified
in subsection (a) above; however, all such charges, including but not limited to additional
service, leased channel, discrete channel, and production rates shall be made public and
two (2) copies of the schedule of charges, as originally and thereafter modified, shall be
filed with the City Clerk thirty (30) days prior to the effective date of such changes.
Deposits on advance payments to be approved: The Grantee shall receive no deposit,
advance payment or penalty from any subscriber or potential subscriber other than those
established in the schedule of charges previously filed with and/or approved by the City
Council.
Purchase of switch: In the event that the FCC does not regulate antenna switches,
and/or that a switch or other appurtenant device is required to permit subscribers to
receive full broadcast network service, the Grantee shall give the subscriber the option
of purchasing the switch at a reasonable cost at the time of initial installation thereof, or
of purchasing said switch or other appurtenant device at the then prevailing local
installment plan interest rate. The Grantee hereby agrees to allow the subscriber to
provide a switch or other appurtenant device at its subscriber terminal, provided that such
device meets with the approval of the Grantee. Such approval shall not be withheld if
it is shown that such device does not interfere with the operation of the cable television
system. If the subscriber elects not to purchase or provide said switch or other
appurtenant device, the Grantee may make an additional charge for the rental of such
switch or other appurtenant device providing that the additional charge is in accordance
with the schedule of charges contained in the Grantee's application for a franchise
hereunder or hereafter shall be filed with and approved by the City.
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I. Subscriber refunds in addition to those authorized by the FCC:
If any subscriber of the Grantee of less than ten (1 O) days terminates services due
to the Grantee's failure to render service to such subscriber of a type and technical
quality provided for herein;
2. If service to a subscriber is terminated by the Grantee without good cause; or
If the Grantee ceases to provide service for twenty-four hours or more, the cable
television system 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 monthly charge,
installation and connection charge paid by such subscriber in accordance with the then-
existing schedule of charges.
Disconnection: Except as provided by FCC rate regulation, 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
forty-five (45) days after the due date of said delinquent fee or charge, and after
adequate written notice of the intent to disconnect has been delivered to the subscriber
in question. Upon payment of charges due and the payment of a reconnection charge,
if any, the Grantee shall promptly reinstate the subscriber's cable service after request
by subscriber.
Rates subject to other regulations: The Grantee in submitting its request for approval of
initial rates or any subsequent rates shall do so for basic service and related equipment
to be performed to or for subscribers described in this ordinance. If FCC rules and
regulations, or any other applicable laws or regulations, shall subsequently determine that
the City of Iowa City has jurisdiction over other services or service to be offered or
performed, said rates shall be subject to approval by the City at that time.
Reduction of fees: If during the term of any franchise or renewal thereof granted
hereunder, the Grantee receives refunds or if the cost of operation to the Grantee is
reduced as a result of an order of any regulatory body having competent jurisdiction, the
Grantee shall pass on to its subscribers on a prorated basis any such savings or reduced
costs pursuant to FCC regulation.
M. Rate change procedures:
Limitation on application for increase in rates: The Grantee shall not, unless allowed
by FCC regulations, file more than one application for an increase in fees, rates or
charges during any calendar year except to seek relief from the imposition of
federal, state or local taxes or other legally imposed fees no1 contemplated in the
most recent rate determination.
Review of rates: The Broadband Telecommunications Commission shall review the
Grantee's schedule of fees, rates or charges that are within the City's regulatory
33
jurisdiction, upon application by the Grantee as herein provided or at any time on
its own motion. The Broadband Talecommunications Commission shall submit such
schedule and any contemplated modifications thereof, together with its recommen-
dations, to the City Council as expressed in such a resolution. The City Council
may, pursuant to FCC regulations, reduce or increase such fees, rates or charges
adopted for this purpose and, unless allowed by FCC regulation, no change in the
Grantee's schedule of fees, rates or charges shall be effective without prior action
of the Broadband Talecommunications Commission and the approval of the Council.
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 this ordinance. No change in City regulated fees, rates
and charges shall take effect until thirty {30) days after the approval of the rates
by the City Council.
Documentation of request for increase: Any increase requests, in addition to other
factors described in this section, shall be supported by a showing of increased costs
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 in accordance with FCC rules.
Records to be made available: For the purposes of determining the reasonableness
of Grantee fees, rates or charges, Grantee records relating the same shall be made
available to the City.
Sac. 12-4-17: Public, education and government connection to cable television system.
The Grantee shall provide upon request within the City one connection and monthly
service for "basic service" and all non-pay services to such public, parochial and nonprofit
private schools, the University of Iowa, City designated public access facility, City and other
government buildings and other agencies, provided that such designated locations are within
two hundred (200) feet of any network cable route. Initial installation shall be without charge.
Rates for monthly service to residential or living units within such entities may be negotiated
with each such entity. The Grantee may charge for any excess footage on the basis of time
and material for any such locations beyond the two hundred-foot limitation if such connection
is designated by the City. The City reserves the right for itself and the above entities at their
individual expense to extend service to as many areas within such schools, buildings and
agencies as it deems desirable without payment of any additional installation fee or monthly
fee to Grantee. All such extensions, however, shall be accomplished in such a way so as not
to interfere with the operation of the cable television system. Institutions receiving free drops
will consult with Grantee on the technical standards to be used for such extensions. The
Grantee shall comply with the public, educational and government access requirements
specified in the franchise.
Sec. 12-4-18: Interconnection of network.
Area interconnection: The Grantee shall be interconnected with other communities and
cable companies as specified in the franchise.
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Sec. 12-4-19: Construction tlmetable for lnltlal conatructlon,
Permit application: It is hereby deemed in the public interest that the system be extended
as rapidly as possible to all residents within the City. Within ninety (90) days of the
effective date of a franchise granted hereunder, the Grantee shall file with the appropriate
authorities and utilities all initial papers and applications necessary to comply with the
terms of this article including the application for franchise and any additions or
amendments thereto and shall thereafter diligently pursue all such applications. After the
Grantee has diligently pursued the acquisition of necessary pole attachment contracts,
or other necessary easements, and where such necessary contracts have not been
executed or easements obtained after a reasonable period of time as determined by the
City, the City may, at its discretion, provide assistance to ensure the extension of the
system to all residents.
Commencement of construction: Within one hundred eighty (180) days of the effective
date of FCC certification, the Grantee shall initiate construction and installation of the
cable television system. Such construction and installation shall be pursued with
reasonable diligence.
Commencement of operation: Within twelve (12) months of the effective date of FCC
certification, the Grantee shall "commence operation" within the meaning set forth in this
ordinance.
De
Sustained completion of construction: Within the time specified in the franchise
agreement, the Grantee shall have "substantially completed" construction of the "service
area" within the meaning set forth in this ordinance.
Provisions of basic service: Within the time specified in the franchise agreement, the
Grantee shall have placed in use sufficient distribution facilities so as to offer basic
service to one hundred (100) per cent of the dwelling units in the service area to which
access is legally and reasonably available,
Delays and extension of time: The City Council may in its discretion extend the time for
the Grantee, acting in good faith, to perform any act required hereunder. The time for
performance shall be extended or excused, as the case may be, for any period during
which the Grantee demonstrates to the satisfaction of the City Council that the Grantee
is being subjected to delay or interruption due to any of the following circumstances if
reasonably beyond its control:
1. necessary utility rearrangements, pole change-outs or obtaining of easement rights,
2. governmental or regulatory restrictions,
3. labor strikes,
4. lockouts,
5o war,
6. national emergencies,
7. firs,
8. acts of God.
35
G. When certain operations are to commence: If FCC certification is not required for a
franchise granted under this article, all time periods specified in subsections (A), (C), (D)
and (El of this section shall commence with the effective date of a franchise granted
hereunder.
Sec. 12-4-20: Construction timetable for rebuild construction,
A. Compliance with construction and technical standards: Grantee shall construct, rebuild,
install, operate and maintain its system in a manner consistent with all laws, ordinances,
construction standards or guidelines, governmental requirements, FCC technical
standards, and detailed technical standards provided for in the franchise.
B. Construction timetable: The Grantee shall construct and complete the system rebuild in
accordance with the timetable set forth in the franchise,
C. Delays and extension of time: The City Council may in its discretion extend the time for
the Grantee, acting in good faith, to perform any act required hereunder. The time for
performance shall be extended or excused, as the case may be, for any period during
which the Grantee demonstrates to the satisfaction of the City Council that the Grantee
is being subjected to delay or interruption due to any of the following circumstances if
reasonably beyond its control:
1. necessary utility rearrangements, pole change-outs or obtainment of easement
rights,
2. governmental or regulatory restrictions,
3. labor strikes,
4. lockouts,
5. war,
6. national emergencies,
7. fire,
8. acts of God.
Sec. 12-4-21: Network description.
A. System bandwidth capability: The Grantee shall install a cable network according to the
following specifications: The initial system shall be designed to a capacity equivalent to
36
Em
a minimum of 550 MHz and as specified in the franchise. The Grantee at its option may
provide for this increased capacity at the time of initial construction.
As total bi-directional capacity is a priority goal of the City, applicants for a franchise
hereunder may propose greater 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 this ordinance the associated costs and
revenues.
System configuration: The Grantee shall design and construct the network using fiber
to the feeder architecture in such a way as to provide maximum flexibility and to provide
service to the fewest number of homes per fiber node as economically feasible.
Protection of subscriber privacy mandatory: Grantee shall at all times protect the privacy
of subscribers, as provided jn this ordinance and other applicable federal, state, and local
laws.
Notice of privacy provisions: At the time of entering into an agreement to provide any
cable service or other service to a subscriber, and at least once a year thereafter, Grantee
shall provide notice consistent with and in accordance with federal law in the form of a
separate written statement to each subscriber which clearly and conspicuously informs
the subscriber of:
The privacy rights of the subscriber and the limitations placed upon Grantee with
regard this ordinance hereof and all other applicable federal, state, and local
subscriber privacy provisions;
The nature of personally identifiable information collected or to be collected with
respect to the subscriber and the nature of the use of such information;
m
The nature, frequency, and purpose of any disclosure which may be made of such
information, including an identification of the types of persons to whom the
disclosure may be made;
The period during which such information might be maintained by the cable
operator;
The times and place at which the subscriber may have access to such information
in accordance with this ordinance and other applicable federal, state, and local law;
A request for the subscriber signature allows for use of personally identifiable
information.
Collection of personally identifiable information prohibited: Grantee shall not use or
permit the use of the cable system to collect personally identifiable information
concerning any subscriber, except as necessary to render a cable service or other service
provided by the cable operator to the subscriber. Grantee shall not install or permit the
installation of any special terminal equipment in any subscriber's premises for the
37
Fm
two-way transmission of any aural, visual, or djgital signals without the prior written
consent of the subscriber. Grantee shall not tabulate, nor permit others to tabulate, any
subscriber use of the cable system which would reveal the opinions or commercial
product preferences of individual subscribers, whether residential or business, or of any
occupant or user of the subscriber's premises without written authorization from the
subscriber for his or her participation in a shop-at-home or similar service. When
providing such service, the Grantee may tabulate only those responses essential to the
functioning of that shopping or other service, and may not use any such tabulation of
individual preferences for any other purposes. Tabulations of aggregate opinion or
preference are permitted, provided the aggregations are sufficiently large to assure
individual privacy.
Disclosure of subscriber information prohibited: Grantee shall not without the specific
written authorization of the individual subscribers involved, sell or otherwise make
available to any party any list of the names and addresses of individual subscribers, any
list which identifies the viewing habits of individual subscribers, or any personal data,
social security number, income and other data the Grantee may have on file about
individual subscribers, except as necessary to render or conduct a legitimate business
activity related to a cable service or other service provided by the cable operator to the
subscriber, provided, however, that such disclosure shall not reveal directly or indirectly
the extent of viewing or other use by the subscriber of a cable service or other service
provided by the cable operator, or the nature of any transaction made by the subscriber
over the cable system.
Notices of monitoring: Grantee shall report to the affected parties, the City and other
appropriate authorities, any instances of monitoring or tapping of the system, or any part
thereof, of which it has knowledge, which is not authorized under this section whether
or not such activity has been authorized by Grantee. Grantee shall not record or retain
any information trar~smitted between a subscriber or user and any third party, except as
required for lawful business purposes. Grantee shall destroy all subscriber or user
information of a personally-identifiable nature after a reasonable period of time, unless
retention of such information is authorized by the affected subscriber or user.
Polling by cable: No poll or other upstream response from a subscriber shall be conducted
or obtained except as part of a program that contains an explicit disclosure of the nature,
purpose and prospective use of the results of the poll or upstream response and where
the program has an informational, entertainment or educational function which is self-
evident. Grantee or its agents shall release the results of upstream responses only in the
aggregate and without individual references.
Monitoring devices: Grantee shall prowde written notice to each subscriber when
equipment is to be installed on the system which would permit the recording or
monitoring of individual viewing habits of a subscriber or household; such equipment shall
be installed only after prior written permission has been granted by the subscriber. Such
permission may be valid for one year only and may be renewed by permission of the
subscriber. In no event shall such permission be obtained as a condition of service or
continuation thereof. Grantee shall give each subscriber annual written notice of any
such monitoring and of the subscriber's right to terminate the monitonng in accordance
with the terms and conditions of the subscriber's contract with Grantee.
38
Personally identifiable information: Grantee shall not predicate regular subscriber service
on the subscriber's grant or denial of permission to collect, maintain or disclose personally
identifiable information. A subscriber may at any time revoke any permission previously
given by delivering to the Grantee a written statement of that intent.
Correction policy.' Each subscriber shall be provided access to all personally identifiable
information regarding such subscriber that Grantee collects or maintains or allows to be
collected or maintained, and such subscriber shall be provided the opportunity to correct
any error in such information.
Viewing habits; Any information concerning individual subscriber viewing habits or
responses, except for information for billing purposes, shall be destroyed within sixty (60)
days of collection, Information for billing purposes shall be kept for two (2) years and
then destroyed unless otherwise required to be kept by law.
M. System performance: This section is not intended to prohibit the use or transmission of
signals useful only for the control or measurement of system performance.
Nm
Subscriber and user contracts: This section of this ordinance shall be enforceable directly
by every aggrieved subscriber or user and by every aggrieved person seeking to become
a subscriber or user. Grantee shall include the following provision in every contract or
agreement between Grantee and any subscribers or user:
"The subscriber/user, as part of this contract, has certain rights of privacy
prohibiting the unauthorized monitoring of service and publication of personal
information under the control of (Name of Grantee), including without
limitation, information regarding program selections or service uses. (Name of
Grantee) shall make available upon the request of the subscriber/user further
description of said rights as established in its ordinance and franchise with the
City of Iowa City."
Grantee shall not allege or contend that any actual or potential subscriber or user may not
enforce this ordinance by reason of lack of privacy.
Sec. 12-4-22: Network technical requirements.
Genera/requirements: Each cable television system must be so designed, installed and
operated as to meet FCC technical standards and standards set forth in the franchise.
Sac. 12-4-23: Performance measurements.
A. General requirements: Test procedures utilized shall be in accordance with those
promulgated by the FCC and the National Cable Television Association.
B. Additional tests and inspection: The City reserves the right to:
Require additional tests for cause at specific terminal locations at expense of the
Grantee, and
39
Conduct its own inspections of the cable television system on its own motion at
any time during normal business hours with reasonable advance notice.
Report of measurements combined: To the extent that the report of 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.
Sec. 12-4-24: Construction standards.
Antennas and towers: Antenna supporting structures (towers) shall be designated for the
proper loading zone as specified in the Electronics Industry Association's R.S.-22-C
Specifications.
ComplianCe with aviation requirements: Antenna supporting structures (towers) shall be
painted, lighted, 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.
City approval of construction plans: Prior to the erection of any towers, poles or conduits
or the upgrade or rebuild of the cable communications system under this ordinance, the
Grantee shall first submit to the City and other designated parties for review, such
information as specified in the franchise. No erection or installation of any tower, pole,
underground conduit, or fixture or any rebuilds or upgrading of the cable communications
system shall be commenced by any person until approval, therefore, has been received
from the City.
Contractor qualifications: Any contractor proposed for work of construction, installation,
operation, maintenance, and repair of system equipment must be properly licensed under
laws of the State, and all local ordinances. In addition, the Grantee shall submit to the
City, every two years, a plan to hire persons locally for the construction, installation,
operation, maintenance and repair of the system equipment.
Minimum interference: The Grantee's system and associated equipment erected by the
Grantee within the City shall be so located as to cause minimum interference with the
proper use of streets, alleys, and other public ways and places, and to cause minimum
interference with the rights and reasonable convenience of property owners who adjoin
any of the said streets, alleys or other public ways and places. No pole or other fixtures
placed in any public ways by the Grantee shall be placed in such a manner as to interfere
with normal travel on such public way.
City maps: The City does not guarantee the accuracy of any maps showing the
horizontal or vertical location of existing substructures. In public rights-of-way, where
necessary, the location shall be verified by excavation.
Quality of construction: Construction, installation, operation, and maintenance of the
cable communications system shall be performed in an orderly and workmanlike manner,
in accordance with then current technological standards. All cables and wires shall be
40
installed, where possible, parallel with electric and telephone lines. Multiple cable
configurations shall be arranged in parallel and bundled with due respect for aesthetic and
engineering considerations.
Construction standards: The construction, installation, operation, maintenance, and/or
removal of the Cable Communications System shall meet all of the following safety,
construction, and technical specifications and codes and standards:
Occupational Safety and Health Administration Regulations (OSHA)
National Electrical Code
National Electrical Safety Code (NESC)
National Cable Television Standard Code
AT&T Manual of Construction Procedures {Blue Book)
Bell Telephone Systems Code of Pole Line Construction
All Federal, State and Municipal Construction Requirements,
including FCC Rules and Regulations
Utility Construction Requirements
All Building and Zoning Codes, and All Land Use Restrictions,
as the same exist or may be amended hereafter.
Sec. 12-4-25: Erection, removal and common use of poles,
Approval for poles: No poles shall be erected by the Grantee without prior approval of
the City with regard to location, height, types and any other pertinent aspect. However,
no location of any pole or wire-holding structure of the Grantee shall give rise to a vested
interest and such poles or structures shall be removed or modified by the Grantee at its
own expense whenever the City determines that the public convenience would be
enhanced thereby.
Be
Requirements to use existing poles: Where poles already exist for use in serving the City
and are available for use by the Grantee, but Grantee does not make arrangements for
such use, the City may require the Grantee to use such poles and structures if it
determines that the public convenience would be enhanced thereby and the terms of the
use available to the Grantee are just and reasonable.
Sec. 12-4-26: Construction reporting requirements.
Progress reports: Within thirty (30) days of the granting of a franchise pursuant to this
ordinance, the Grantee shall provide the City with a written progress report detailing work
completed to date and a schedule for completion of construction. Such report shall
include a description of the progress in applying for any necessary agreements, licenses,
or certifications and any other information the Cable Television Administrator may deem
necessary. The content and format of the report will be determined by the Cable
Television Administrator and may be modified at the Administrator's discretion.
Timeframe for reports: Such written progress reports shall be submitted to the City on
a bimonthly basis throughout the entire construction or rebuild process. The Cable
Television Administrator may require more frequent reporting if the Administrator
determines it is necessary to better monitor the Grantee's progress.
41
Subscriber information: Prior to the commencement of any major system construction,
the Grantee shall produce an informational document to be distributed to all residents of
the area to be under construction, which shall describe the activity that will be taking
place. The informational document shall be reviewed by the Cable Television Administra-
tor prior to its distribution.
Sac. 12-4-27: Channels to be provided.
Leased access channel.' The Grantee shall maintain at least one specifically designated
channel for leased access uses. In addition, other portions of its nonbroadcast
bandwidth, including unused portions of the specifically designated channels, shall be
available for leased uses. On at least one of the leased channels, priority shall be given
to part-time users.
Television broadcast signal carriage: The Grantee shall carry those television broadcast
signals which are in accordance with Part 76, Section 76.63 of the FCC Rules and
Regulations as such rules are amended from time to time. The provision of additional
television broadcast signals as provided for in Part 76, Section 76.63(a) shall also be
required as amended from time to time.
Basic service: Channels to be included on the first tier of service not requiring a converter
or other appurtenance shall include: all television signals described in subsections A., B.
and D. of this section. As the maximized use of the total channel capacity is of great
interest to the City, applicants for a franchise hereunder may submit proposals to utilize
channels beyond the basic service. Such a proposal may include the use of convertors
at no additional charge to subscribers.
Access channels: Grantee shall provide the public, educational and governmental access
channels as specified in the franchise. The Broadband Telecommunications Commission
shall, in cooperation with the entities operating access channels, develop rules for such
channels. Such rules shall be placed on file with the City Clerk.
Sac. 12-4-28: Conditions of street occupancy:
Approval ofproposed construction: The Grantee shall first obtain the approval of the City
prior to commencing construction on the streets, alleys, public grounds or places of the
City as specified in the franchise.
B. Permits: A Grantee shall obtain construction permits in conformance with all City rules
and regulations.
Changes required by public improvements: The Grantee shall, at its expense, protect,
support, temporarily disconnect, or relocate in other public place any property of the
Grantee when required by the City 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.
42
Use of existing poles or conduits: Nothing in this article or any franchise 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 its network.
Underground installation: 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 either telephone or electric utility facilities are above
ground at the time of installation, Grantee may install its service above ground, 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 its services underground without
additional cost to the City or to the individual subscribers so served within the City.
Where not otherwise required to be placed underground by this ordinance or the
franchise, the Grantee's system shall be located underground at the request of the
adjacent property owner, provided that the excess cost over the aerial location shall be
borne by the property owner making the request. All cable passing under the roadway
shall be installed in conduit.
Pedestals: When housing mini-hubs, switching or other equipment are to be utilized on
the public right of way, such equipment must be completely buried beneath streets or
sidewalks. Any pedestals located in the public right of way shall comply with city
ordinances or regulations. All such buried equipment shall be shown in plan and
cross-section on the design plans for permits.
Facilities not to be hazardous or interfere: All wires, conduits, cable 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. 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.
Method of installation: All wires, cables, amplifiers, and other property shall be
constructed and installed in an orderly manner consistent with the trade. All cables and
wires shall be installed parallel with existing telephone and electric wires whenever
possjble. Multiple cable configurations shall be arranged in a parallel and bundled, with
due respect for engineering and safety considerations. All installations shall be
underground in those areas of the City where public utilities providing telephone and
electric service are underground at the time of installation. All underground installations
of wires and cable shall be buried at least twelve (12) inches below ground.
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 performing any work connected with
grading, regrading or changing the line of any street or public place or with the
construction or reconstruction-of any sewer or water system. Any person, company or
corporation intending to perform any of the above-described work in an area where
Grantee's facilities are located shall notify Grantee at least twenty-four (24) hours prior
to performing said work.
Requests for removal or change: The Grantee shall, on the request of any person holding
a building 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.
Authority to trim trees: The Grantee may trim trees upon and overhanging 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 Grantee, No trimming shall be
done except under the supervision and direction of the City Forester, upon the explicit
prior written notification and approval of the City Forester and at the expense of the
Grantee. The Grantee may contract for such services; however, any firm or individual so
retained shall receive City Forester approval prior to commencing such activity.
Restoration or reimbursement: In the event of disturbance of any street or private
property by the Grantee, 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 as 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.
Office and records in City: The Grantee shall at all times make and keep at an office
maintained by the Grantee in the City full and complete plans and records showing the
exact location of all cable television system equipment installed or in use in the streets
or other public places of the City. The Grantee shall furnish the City complete maps upon
request, compatible with the City's geographic information system, showing all of the
cable television system equipment installed and in place in streets and other public places
of the City. Such maps shall be updated annually.
Emergency removal of plant: If, at any time, in case of fire or disaster in the City, it shall
become necessary in the reasonable judgment of the City to cut or move any of the
wires, cables, amplifiers, appliances 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, cost for repairs shall be borne by the City.
44
Alternate routing ofplant: In the event continued use of a street is denied to the Grantee
by the City for any reason, the Grantee will make every reasonable effort to provide
service over alternate routes.
Sec. 12-4-29: Unauthorized connections or modifications.
Unauthorized connections prohibited: It shall be unlawful for any firm, person, group,
company, corporation or governmental body or agency, without the expressed consent
of the Grantee, to make any connection, extension or division, whether physically,
acoustically, inductively, electronically or otherwise, with or to any segment of a
franchised cable television system for any purpose whatsoever, except as provided in this
ordinance.
Removal or destruction prohibited: It shall be unlawful for any firm, person, group,
company, corporation or government body or agency to willfully interfere, tamper,
remove, obstruct or damage any part, segment or content of a franchised cable television
system for any purpose whatsoever,
Sec. 12-4-30: Preferential or discriminatory practices prohibited,
Prohibited employment practices: The Grantee shall not commit any of the following
employment practices and agrees to prohibit the following practices in any contracts or
subcontract entered into or effectuate the operation of this franchise.
To discharge from employment or refuse to hire any individual because of their race,
color, religion, creed, sex, national origin, age, disability, marital status or sexual
orientation.
To discriminate against any individual in term, conditions or privileges of employ-
ment because of their race, color, religion, creed, sex, national origin, age,
disability, marital status or sexual orientation.
The Grantee shall be an Equal Opportunity/Affirmative Action Employer adhering to all
Federal, State or municipal laws and regulations. Pursuant to 47 CFR Sac. 76.311 and
other applicable regulations of the FCC, Grantee shall file an Equal Employment
Opportunity/Affirmative Action Program with the FCC and otherwise comply with all FCC
regulations with respect to Equal Employment/Affirmative Action Opportunities.
Employment policy: Grantee shall take affirmative action to employ, during the
construction, operation and maintenance of the cable communications system minorities
and females as set forth in the franchise. Upon request by the City, Grantee shall submit
to the City annual reports indicating such compliance.
Procuremerit: For all services, materials or equipment purchased for the construction,
operations or maintenance of the cable communications system, Grantee shall wherever
possible, purchase from competitively priced and otherwise qualified minority-owned, or
female owned businesses located in the City of Iowa City, as set forth in the franchise.
45
Localernploymentandprocurementpractiees: Whenever possible, all services, personnel,
hardware and supplies for the construction, maintenance and operation of the system
shall be procured locally.
Services to be equally available: The Grantee shall not refuse cable television services
to any person or organization who requests such service for lawful purpose, nor shall a
Grantee refuse any person or organization the right to cablecast pursuant to provisions
of this article. The Grantee shall not, as to rates, charges, service facilities, rules,
regulations or in any other respect, make or grant any unreasonable preference or
advantage, not subject any person to any prejudice or disadvantage. The Grantee shall
take affirmative steps to disseminate the information concerning the availability of its
services to all minority and other under represented groups. This provision shall 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 classifications shall be entitled, provided such schedules have been filed with
and approved by the City as provided in this ordinance.
Fairness of accessibility.' The entire system of the Grantee shall be operated 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. No one shall be arbitrarily excluded from
its use. Allocation of use of said facilities shall be made according to the rules or
decisions of 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 Telecommunications
Commission.
Sec. 12-4-31: Installations, connections, and other services.
Standard installations: Standard installation shall consist of a service not exceeding one
hundred fifty (150) feet from a single point or pedestal attachment to the customer's
residence. Service in excess of 150 feet and concealed wiring shall be charged at such
cost as exceeds normal installation costs. The desire of the Subscriber as to the point
of entry into the residence or commercial establishment and location of pedestal shall be
observed whenever possible. Runs in building interiors shall be as unobtrusive as
possible. The Grantee shall use due care in the process of installation and shall repair any
damage to the subscriber's property caused by said installation. Such restoration shall
be undertaken within no more than ten (10) days after the damage is incurred and shall
be completed as soon as possible thereafter.
B. Deposits: Any deposit required by Grantee shall bear interest at the current lending rate.
Lockout devices: The Grantee shall provide to the potential subscriber, as part of its
promotional literature, information concerning the availability of a lockout device for use
by a subscriber. The lockout device described herein shall be made available to all
subscribers requesting it beginning on the first day that any cable service is provided.
46
D. Reconnection: Grantee shall restore service to customers wishing restoration of service
provided customer Shall first satisfy any previous obligations owed.
Free disconnection: Subscribers shall have the right to have cable service disconnected
without charge. A refund of unused service charges shall be paid to the customer within
sixty (60) days from the date of termination of service.
F. Downgrade and upgrade fees: Any downgrade or upgrade fees shall conform with FCC
rules.
Sac. 12-4-32: Service calls and complaint procedures.
Business office staffing: Grantee shall provide all subscribers or users with at least thirty
(30) days prior written notice of a change in business office hours. The business office
shall maintain a staff adequate to process complaints, requests for installation, service
or repairs, and other business in a timely and efficient manner. Grantee shall add
additional telephone lines and service representatives when existing lines are substantially
utilized or when a pattern of subscriber complaints reflect a need for additional service
employees. Additional offices and payment stations provided by the Grantee shall be
included in the franchise.
Telephone service: The Grantee shall have a listed, locally-staffed telephone number for
service calls available twenty-four [24) hours a day, seven (7) days a week. Said number
shall be made available to subscribers and the general public. The Grantee shall provide
an unlisted locally-staffed telephone number to the CitV and utility companies to enable
the City or utility companies to reach the Grantee in case of emergency on a 24-hour,
7-days-a-week basis.
Grantee rules: The Grantee shall prepare and file with the City copies of all of its rules
and regulations in connection with the handling of inquiries, requests and complaints.
The Grantee shall, by appropriate means, such as a card or brochure, furnish information
concerning the procedures for making inquiries or complaints, including the name, address
and local telephone number of the employee or employees or agent to whom such
inquiries or complaints are to be addressed, and furnish information concerning the City
office responsible for the administration of the franchise, including, but not limited to, the
address and telephone number of said office.
Equipment service: The Grantee shall service or replace without charge all equipment
provided by it to the subscriber, provided, however, that the Grantee may charge a
subscriber for service to or replacement of any equipment damaged due to negligence of
such subscriber.
Subscriber solicitation: Grantee shall provide the City with a list of names and addresses
of all representatives who will be soliciting within the City and the area in and the dates
within such solicitations shall take place. Each such representative and all other
employees entering upon private property shall be required to wear an employee
identification card issued by Grantee and bearing a picture of said representative. Grantee
shall notify the general public of its solicitation in a manner calculated to reach residents
in the areas to be solicited in advance of such solicitation.
47
Sales information: Grantee shall provide to all subscribers annually and all prospective
subscribers or users with complete written information concerning all services and rates
provided by Grantee upon solicitation of service and prior to consummation of any
agreement for installation of service. Such sales material shall clearly and conspicuously
disclose the price and other information concerning Grantee's least costly service. Such
information shall be written in plain English and shall include but shall not be limited to
the following: all services, tiers, and rates; deposits if applicable; installation costs;
additional television set charges; service upgrade or downgrade charges; lockout devices;
and information concerning the utilization of video cassette recorders (VCRs) with cable
service(s) and the cost for hooking up such VCRs so that they function as manufactured.
G m
Billing practices information: Grantee shall inform all subscribers annually and all
prospective subscribers or users of complete information respecting billing and collection
procedures, procedures for ordering changes in or termination of services, and refund
policies, upon solicitation of service and prior to the consummation of any agreement for
installation of service. Such information shall be written in a plain English.
Notice of complaint procedures: Grantee shall periodically, and at various times of the
day, present its business office address and publicly listed local telephone number by
means of alpha-numeric display on a local origination channel.
Investigation andremedialaction: For recurrent complaints regarding service deficiencies
(other than total or partial loss of service, such as "ghosting," weak audio signal,
distortion, and the like), the Cable Television Administrator may require the Grantee to
investigate and report to the causes and cures thereof, and the Cable Television
Administrator may also conduct an investigation. Thereafter, the Cable Television
Administrator may order specified remedial action to be taken within reasonably feasible
time limits. If such action is not taken, or is ineffective, or if within thirty (30} days the
Grantee files with the City a notice of objection to the order, the City may conduct a
hearing and may, if the evidence warrants a finding of fault on the part of the Grantee,
take appropriate action pursuant to the terms of this ordinance.
Sac. 12-4-33: Transfer.
Transfer of franchise: A franchise shall not be assigned or transferred, either in whole
or in part, or leased, sublet, or mortgaged in any manner, nor shall title to the cable
system, legal or equitable, or any right, interest or property therein, pass to or vest in any
person without the prior written consent of the City, such consent not to be unreasonably
withheld. Except that no consent shall be required for any sale, transfer, or assignment
of ownership to an affiliate under common control with Grantee, provided that prior to
such transfer, Grantee provides to the City verifiable information to establish that such
transferee has the financial, legal and technical ability to fully perform all obligations of
the franchise. No such consent shall be required, however, for a transfer by mortgage
to a faderally licensed lending institution in order to secure indebtedness. Within thirty
(30) days of receiving the request for transfer, the franchising authority shall, in
accordance with FCC rules and regulations, notify the Grantee in writing of the
information it requires to determine the legal, financial and technical qualifications of the
transferee. If the franchising authority has not taken action on the Grantee's request for
48
transfer within one hundred twenty (120) days after receiving such requested
information, consent by the franchising authority shall be deemed given.
Transfer of ownership: The Grantee shall not sell, transfer or dispose of thirty percent
(30%) or greater ownership interest in the Grantee or more at one time of the ownership
or controlling interest in the system, or thirty percent (30%) cumulatively over the term
of the franchise of such interests to a corporation, partnership, limited partnership, trust
or association, or person or group of persons acting in concert without the consent of
City. Every sale, transfer, or disposition of thirty percent (30%) or greater ownership
interest as specified above in the Grantee shall make the franchise subject to cancellation
unless and until the City shall have consented thereto.
Transfer of control,' The Grantee shall not change control of the Grantee in whatever
manner exercised without the prior written consent of the City.
City approvah Every change, transfer, or acquisition of control of the Grantee shall make
the franchise subject to cancellation unless and until the City shall have consented
thereto. For the purpose of determining whether it shall consent to such change,
transfer, or acquisition of control, the City may inquire into the legal, financial, character,
technical and other public interest qualifications of the prospective transferee or
controlling party, and the Grantee shall provide the City with all required information. The
City reserves the right to impose certain conditions on the transferee as a condition of the
franchise to ensure that the transferee is able to meet existing ordinance and franchise
requirements.
Assumption of control: Any financial institution having a pledge of the franchise or its
assets for the advancement of money for the construction and/or operation of the
franchise shall have the right to notify the City that it will take control and operate the
cable television system. If the financial institution takes possession of the cable
communications system the City shall take no action to effect a termination of the
franchise without first giving to the financial institution written notice thereof and a period
of six (6) months thereafter (unless otherwise provided hereinbelow) (i} to allow the
financial institution or its agent(s) to continue operating as the Grantee under the
franchise and; (ii) to request the City, and for the City to determine whether, to consent
to the assignment of the Grantee's rights, title, interest and obligations under the
franchise to a qualified operator. The City acknowledges that in order for the financial
institution to realize upon the collateral accorded to it by the loan documents, the financial
institution must be entitled to a reasonable period of time after taking possession of the
franchise under the loan document to obtain the City's consent to an assignment of the
franchise to a qualified operator. The City agrees that such reasonable period of time is
six (6) months after the financial institution takes possession of the cable communication
system and, further, agrees that the City shall use its best efforts to decide upon the
assignment of the franchise to the new operator proposed by the financial institution
within such period of time. The financial institution shall be entitled to such possession
and other rights granted under this paragraph until such time that the City determines
whether to consent to such assignment (the "extended time"). If the City finds that such
transfer, after considering the legal, financial, character, technical and other public
interest qualifications of the applicant are satisfactory, the City will consent to the
transfer and assign the rights and obligations of such franchise as in the public interest.
49
During the six (6) month period or extended time, the financial institution shall enjoy all
the rights, benefits and privileges of the Grantee under the franchise, and the City shall
not disturb such possession by the financial institution, provided the financial institution
complies in all respects with the terms and provisions of the franchise and this ordinance.
The various rights granted to the financial institution under this paragraph are contingent
upon the financial institution's continuous compliance with the terms and provisions of
this ordinance and the franchise during the entire aforementioned six (6) month period or
extended time, if applicable. For example, should an agent of the financial institution take
possession of the cable communication system pursuant to rights granted to the financial
institution under this paragraph, and such agent fails to comply with the level of service
requirements set forth in this ordinance or the franchise, the rights granted to the
financial institution under this ordinance and the franchise shall automatically terminate,
No waiver of City property rights: The consent or approval of the City or any other public
entity to any transfer of the Grantee shall not constitute a waiver or release of the rights
of the City in and to the public property or public rights of way, and any transfer shall,
by its terms, be expressly subordinate to the terms and conditions of this ordinance and
the franchise.
Gm
Transfer time periods: In the absence of extraordinary circumstances, the City will not
approve any transfer or assignment of the franchise prior to construction or the
completion of the rebuild of the system. Subject to the conditions of Section 617 of the
Cable Act, the City shall not approve a transfer if the Grantee has not held the franchise
for a period of three years.
H. Right to reviewpurchase price: Based upon public information, the City reserves the right
to review the purchase price of any transfer or assignment of the cable system.
Signatory requirement: Any approval by the City of transfer of ownership or control shall
be contingent upon the prospective party becoming a signatory to the franchise
agreement.
Sec. 12-4-34: Publication costs.
The Grantee shall assume the cost of publication of the franchise ordinance as such
publication is required bV law. A bill for the publication costs shall be presented to the
Grantee by the City upon the Grantee's filing of acceptance and shall be paid at that time.
Sec. 12-4-35: Ordinances repealed.
All ordinances are parts of ordinances in conflict with the provisions of this article are
hereby repealed.
Sec. 12-4-36: Separabiltty.
If any section, subsection, sentence, clause, phrase or word of this article 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
50
independent provision and such holding shall not affect the validity of the remaining portions
hereof.
Sec. 12-4-37: Time is of the essence to this ordinance.
Whenever the ordinance shall set forth any time for any act to be performed by or on
behalf of the Grantee, such time shall be deemed by the essence any failure of the Grantee
to perform within the time allotted shall always be sufficient ground for the City to invoke an
appropriate penalty including possible revocation of the franchise.
Sec. 12-4-38: No waiver of rlghts.
No course of dealing between the Grantee and the City nor any delay on the part of the
City in exercising any rights hereunder shall operate as a waiver of any such rights of the City
or acquiescence in the actions of the Grantee in contravention of rights except to the extent
expressly waived by the City or expressly provided for in the franchise.
51
DIVISION 2. RATE REGULATIONS
Sec. 12-4-39: Rate regulation proceedings.
Any rate regulation proceedings conducted under this division shall provide a reasonable
opportunity for consideration of the views of any interested party, including but not limited
to the City, by its designee, the cable operator, subscribers, and resjdents of the franchise
area. In addition to all other provisions required by the laws of the state and the City for such
proceedings, and in order to provide for such opportunity for consideration of the views of any
interested party, the City shall take the following actions:
The City shall publish in a local newspaper of general circulation, post on a bulletin
board or other promi~.ent place easily accessible to the public and clearly designated
for that purpose in the Iowa City Civic Center, and mail by certified mail to the
cable operator a public notice of the intent to conduct a public proceeding on basic
service tier rates and/or charges for equipment to receive such basic service tier,
as defined by the FCC.
The public notice shall contain a statement that cable television rates are subject
to municipal review and shall explain the nature of the rate review in question; that
any interested party has a right to participate in the proceeding; that public views
may be submitted in the proceeding, explaining how such public views are to be
submitted and the deadline for submitting such views; that a decision concerning
the reasonableness of the cable television rates in question will be governed by the
rules and regulations of the Federal Communications Commission (FCC); and that
the decision of the City is subject to review by the FCC.
Cm
The City shall conduct a public proceeding to determine whether the rates or
proposed rate increase are reasonable. The City may delegate the responsibility to
conduct the proceeding to the Broadband Telecommunications Commission or to
any duly qualified and eligible individual or entity. If the City or its designee cannot
determine the reasonableness of a proposed rate increase within the time period
permitted by the FCC rules and regulations, it may roll the effective date of the
proposed rates for an additional period of time as permitted by the FCC rules and
regulations, and may issue any other necessary or appropriate order and give public
notice accordingly.
De
In the course of the rate regulation proceeding, the City may request additional
information from the cable operator that is reasonably necessary to determine the
reasonableness of the basic service tier rates and equipment charges. Any such
additional information submitted to the City shall be verified by an appropriate
official of the cable television system supervising the preparation of the response
on behalf of the entity, and submitted by way of affidavit or under penalty of
perjury, stating that the response is true and accurate to the best of that person's
knowledge, information and belief formed after reasonable inquiry. The City may
request proprietary information, provided that the City shall consider a timely
request from the cable operator that said proprietary information shall not be made
available for public information, consistent with the procedures set forth in section
0.459 of the FCC rules and regulations.
52
Furthermore, said proprietary information may be used only for the purpose of
determining the reasonableness of the rates and charges or the appropriate rate
level submitted by the cable operator. The City may exercise all powers under the
laws of evidence applicable to administrative proceedings under the laws of the
state to discover any information relevant to the rate regulation proceeding,
including, but not limited to, subpoena, interrogatories, production of documents
and depositions.
Upon termination of the rate regulation proceeding, the City shall adopt and release
a written decision whether the rates or proposed rate increase are reasonable or
unreasonable, and, if unreasonable, its remedy, including prospective rate reduction,
rate prescription and refunds.
The City may not impose any fines, penalties, forfeitures or other sanctions, other
than permitted by the FCC rules and regulations, for charging an unreasonable rate
or proposing an unreasonab!e rate increase. However, the City may impose fines
or monetary forfeitures on a cable operator that does not comply with a rate
decision or refund order of the City, directed specifically at the cable operator,
pursuant to the laws of the state and the City Code.
Gm
Consistent with the FCC rules and regulations, the City's decision may be reviewed
only by the FCC.
The City shall be authorized, at any time, to gather information as necessary to
exercise its jurisdiction as authorized by the laws of the state, the Cable Act, and
the FCC rules and regulations. Any information submitted to the City shall be
verified by an appropriate official of the cable television system supervising the
preparation of the response on behalf of the entity, and submitted by way of
affidavit or under penalty of perjury, stating that the response is true and accurate
to the best of that person's knowledge, information and belief formed after
reasonable inquiry.
Sec. 12-4-40: Certification.
The City shall file with the FCC the required certification form (FCC Form 328) on
September 1, 1993, or as soon thereafter as appropriate. Thirty {30) days later, or as soon
thereafter as appropriate, the City shall notify the cable operator that the City has been
certified by the FCC and that it has adopted all necessary regulations so as to begin regulating
basic service tier cable television rates and equipment charges.
Sec. 12o4-41: Notification of changes.
With regard to the cable programming service tier, as defined by the Cable Act and the
FCC rules and regulations, and over which the City is not empowered to exercise rate
regulation, the cable operator shall give notice to the City of any change in rates for the cable
programming service tier or tiers, any change in the charge for equipment required to receive
the tier or tiers, and any changes in the nature of the services provided, including the program
services included in the tier or tiers. Said notice shall be provided to the City at least thirty
(30) business days prior to any change becoming effective.
53
Sac. 12-4-42: Cable official.
The City may delegate its power to enforce this division to the Broadband Telecommuni-
cations Commission or to employees or officers of the City, to be known as the cable official.
The cable official shall have authority to:
A. Administer oaths and affirmations;
B. Issue subpoenas;
C. Examine witnesses;
D. Rule upon questions of evidence;
E. Take or cause depositions to be taken;
F. Conduct proceedings in accordance with this division;
G. Hold conferences for the settlement or simplification of the issues by consent of the
parties; and
H. Take actions alnd make decisions or recommend decisions in conformity with this
division.
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing
will be held by the City Council of Iowa City,
Iowa, at 7:30 p.m. on the 12th day of Septem-
ber, 1995, in the Civic Center Council Cham-
bers, 410 E. Washington Street, Iowa City,
Iowa; at which hearing the Council will consid-
er:
1. An ordinance amending the Zoning Chap-
ter by changing the use regulations on an
approximate 2.02 acre tract of land locat-
ed east of Lakeside Drive and south of
Highway 6 from ID-RS, Interim Develop-
ment Single-Family Residential, to RM~I 2,
Low Density, Multi-Family Residential.
(REZ95-O012)
Copies of the proposed ordinance are on file for
public examination in the office of the City
Clerk, Civic Center, Iowa City, Iowa. Persons
wishing to make their views known for Council
consideration are encouraged to appear at the
above-mentioned time and place.
MARlAN K. KARR, CITY CLERK
ppdadmin~cc9-12.nph
City of |owa City
MEMORANDUM
Date:
To:
From:
Re:
October 6, 1995
City Council
Charles Denney, Associate Planner
REZ95-0012; Ou~ot A Whispering Meadows
At their October 5 meeting, by a vote of 6-0, the Planning and Zoning Commission
recommended approval of the subject rezoning subject to the provisions Of the Conditional
Zoning Agreement signed by the applicant. The Commission's recommendation is consistent
with the staff recommendation contained in the September 29 staff memorandum.
City of Iowa City
MEMORANDUM
Date:
September 29, 1995
To:
Planning and Zoning Commission
From:
Charles Dennay, Associate Planner
Re:
REZ95-0012; Outlot A Whispering Meadows
The applicant, Commission members Tom Scott and Ann Bovbjerg and staff met last week to
discuss the status of the subject rezoning. At this meeting an agreement was reached regarding
a revision to the concept plan and conditions to be included in a Conditional Zoning Agreement.
Attached are copies of the Conditional Zoning Agreement, signed by the applicant, a concept plan
and a landscape plan for the subject rezonlng. These documents address the concams raised
by staff regarding the location of the entrance in relation to Highway 6, screening the site due to
its location at an entrance to the City and proximity to industrial uses across Highway 6 and on-
site circulation. The concept plan allows development of the site with carports as desired by the
applicant.
The City Council has continued its public hearing on this item to its October 10 meeting. At this
meeting the Council is also planning to give first consideration to the ordinance rezoning the
property. The Commission will reconsider the application at your October 5 meeting, allowing
input from the Commission regarding the changes to the application prior to the closing of the City
Council public hearing.
STAFF RECOMMENDATION
Staff recommends that REZ95-0012, a request to rezone an approximately 2.02 acre property
located east of Lakeside Drive and south of U.S. Highway 6 from ID-RS to RM-12 be approved
subject to the provisions contained in the attached Conditional Zoning Agreement.
b}~rez0012
Approved by:
Robert Miklo, Senior Planner
Department of Planning
and Community Development
CONDITIONAL ZONING AGREEMENT
THIS AGREEMENT is made by and between the City of Iowa City, Iowa, a Municipal
Corporation (hereinafter "City") and CB Development, Ltd. (hereinafter "Owner").
WHEREAS, Owner, as legal title holder, has requested the City rezone the 2.02 acres of land
located east of Lakeside Drive and south of U.S. Highway 6, from ID-RS, Interim
Development, Single-Family Residential, to RM-12, Low-Density, Multi-Family; and
WHEREAS, Iowa Code §414.5 (1995) provides that the City of Iowa City may impose
reasonable conditions on granting the rezoning request, over and above existing regulations,
to satisfy public needs directly caused by the requested change; and
WHEREAS, certain characteristics of the subject property affect the public's safety and
welfare, namely the property's unusual shape, the presence of a sanitary sewer easement
over a large portion of the property, its location along an entranceway to the City, and its
proximity to a busy, controlled access highway; and
WHEREAS, the presence of such characteristics affecting public safety and welfare require
the careful consideration of certain planning issues such as location and number of street
accesses, buffering and positioning of development to promote safe traffic patterns; and
WHEREAS, Owner acknowledges that certain conditions and restrictions are reasonable in
order to ensure safe and appropriate development of the subject tract, and Owner and City
wish to enter into an agreement to memorialize the agreed-upon terms and conditions.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the Owner and
City hereby agree as follows:
CB Development, Ltd. is the owner and legal title holder of the property located east
of Lakeside Drive and south of U.S. Highway 6 legally described as follows:
Outlot A of Whispering Meadows Subdivision, Part One, as recorded in Plat Book 31
at Page 277 of the records of the Johnson County, Iowa Recorder's Office.
The City and Owner hereby acknowledge that certain characteristics of the subject
property will affect the development of the property, including the property's unusual
shape, the presence of a sanitary sewer easement over a large portion of the property,
location along an entranceway to the City, and proximity to a busy, controlled access
highway. The City and Owner further agree and acknowledge that the presence of
such characteristics affect public safety and welfare, and therefore require careful
consideration of certain planning issues such as location and number of street access,
buffering and positioning of development in a manner which will promote safe traffic
patterns.
In consideration of the City's rezoning the subject property from ID-RS, Interim
Development, Single-Family Residential, to RM-12, Low Density, Multi-Family
Residential, the Owner agrees that development and use of the subject property will
conform to the requirements of the RM-12 zone, as well as the following additional
conditions:
Development of the site in substantial conformance with the concept plan
attached hereto as Exhibit "A" and incorporated herein by this reference.
2
Development of the site in conformance with the attached concept plan is
intended to address those planning issues created by the characteristics of the
property as noted above.
Development of the site in conformance with the landscape plan attached
hereto as Exhibit "B" and incorporated herein by this reference. Development
of the site in conformance with the attached landscape plan is intended to
ensure that an adequate vegetative buffer is established between the
development and Highway 6, as a major entranceway to the City, and also
between the development and the adjacent industrial development.
Limiting access to the site to one location located at least 200 feet south of the
intersection of Lakeside Drive and the Highway 6 frontage road. Said access
limitation is to ensure public safety and welfare due to the proximity of the
development to a busy, controlled access highway.
Owner acknowledges that the conditions contained herein are reasonable conditions
to impose on the land under Iowa Code §414.5 {1995), and City acknowledges that
said conditions satisfy the public traffic safety needs as well as the public's aesthetic
needs resulting from the fact that the subject tract is adjacent to a major entranceway
to the City.
Owners acknowledge that in the event the subject property is transferred, sold,
redeveloped, or subdivided, all redevelopment will conform with the terms of this
Agreement.
The Parties acknowledge that this Conditional Zoning Agreement shall be deemed to
be a covenant running with the land and with title to the land, and shall remain in full
force and effect as a covenant running with the title to the land unless or until released
of record by the City. The Parties further acknowledge that this agreement shall inure
to the benefit of and bind all successors, representatives and assignees of the Parties.
Further, upon certification by the City Manager or Designee that all conditions con-
tained in the Conditional Zoning Agreement have been complied with and satisfied, the
Mayor is hereby authorized and directed to sign, and the City Clerk to attest, a release
of all conditions placed upon the property by reason of this Conditional Zoning
Agreement, and a certified copy of such release shall be recorded in the Office of the
Johnson County Recorder at the Applicant's expense.
The Owners acknowledge that nothing in this Agreement shall be construed to relieve
the Applicant from complying with all applicable local, state, and federal regulations.
The Parties agree that this Conditional Zoning Agreement and its attached exhibits
shall be incorporated by reference into the Ordinance rezoning the subject property;
and that upon adoption and publication of the Ordinance, this Agreement shall be
recorded by the City Clerk in the Johnson County Recorder's Office at City expense.
3
Dated this __ day of
CITY OF IOWA CITY, IOWA
By:
Susan M. Horowitz, Mayor
By:
Madan K. Karr, City Clerk
Approved by:
~rney,/~ Otfi~ce~_~5-
,1995.
By:
OWNER
CB Development, Ltd.
Carol Barker
STATE OF IOWA )
)SS
JOHNSON COUNTY )
On is ~ day of September, 1995, before me, the undersigned, a Notary Public ~n
th
and for the State of Iowa, personally appeared Carol Barker, to me personally known, who
being by me duly sworn did say that she is the President and Secretary of C.B. Development,
the corporation executing the within and foregoing instrument, that no seal has been procured
by the corporation; that said instrument was signed on behalf of the corporation by authority
of its Board of Directors; and that Carol Barker as officer acknowledged the execution of the
foregoing instrument to be the voluntary act and deed of the corporation, by it and by her
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
N~tary Public in and ~'o~r t~he State of Iowa
On this day of September, 1995, before me, the undersigned, a Notary Public in
nd for said County, in said State, personally appeared Susan M. Horowitz and Madan K. Karr,
to me personally known, who being be me duly sworn, did say that they are the Mayor and
City Clerk, [espectively of said municipal corporation executing the foregoing instrument; that
the seal affixed thereto is the seal of said municipal corporation; that said instrument was
signed and sealed on behalf of said municipal corporation by authority of City council of said
municipal corporation; and that the Susan M. Horowitz and Marjan K Karr acknowledged that
execution of said instrument to be the voluntary act and deed of said municipal corporation
and by them voluntarily executed.
Notary Public in and for the State of Iowa
15' O.C.
OUTLOT "A"
88,282 sq. ft.
2.0,} ocres
/ /
DEVELOPMENT
CONCEP' ~PL4N
F,
I
L~/,v
-0 '-
~0
z
mm
0
cn0
Oz
:XIST 6" /
"D
I
:ULVE
Exhibit "B"
NOTICE OF PUBLIC HEARING
The FY1994 Comprehensive Housing
Affordability Strategy (CHAS) Annual
Performance Report assesses the performance
of the Ci~ on the one-year objectives approved
by the City Council as part of the 1994-1998
CHAS. The CHAS is a planning document that
identifies community needs and priorities for
affordable housing and outlines a strategy to
address those needs.
A Public Hearing on the draft FY94 CHAS
Annual Performance Report will be held on
October 10, 1995, at 7:30 p.m. in the Civic
Center, Council Chambers, 410 E. Washington
Street, Iowa City, Iowa.
CIty of iowa City
MEMORANDUM
DATE:
October 4,. 1995
TO:
FROM:
RE:
City Manager and City Council
Steven Nasby, Associate Planner~---~._.~
Public Hearing on the Comprehensive Housing Affordability
Strategy (CHAS) Annual Performance Report (APR) for FY94
The City of Iowa City Is required by the U.8. Department of Housing and Urban Development
(HUD) to submit a CHAS Annual Performance Report. This report assesses fie City's
performance in relation to the one-year objectives specified in the 1994-1998 CHAS plan that was
approved in November 1993. (The CHAS was replaced by the CITY STEPS Consolidated Plan
in Apdl 1995.
The most interesting portions of the APR relate to the total public and private dollars invested in
the community (pages 3-6), and the actual number of households\pereons assisted with these
monies (page 1 la).
The CHAS Plan was effective for fiscal years 1994 and 1995, therefore, the City must still
complete the Annual Performance Reports related to the CHAS for these two years. An Annual
Performance Report for FY95 is currently being prepared and will be available for public comment
in November and you will be holding another public hearing on this report in December.
tp3-5
CITY OF iOWA CITY
COMPREHENSIVE HOUSING
AFFORDABILITY STRATEGY
ANNUAL PERFORMANCE REPORT FOR
FISCAL YEAR 199~,
CITY COUNCIL OF IOWA CITY
Susan Horowitz, Mayor
Naomi Novick, Mayor Pro Tem
Larry Baker
Karen Kubby
Emie Lehman
Bruno Pigott
Jim Throgmorton
CITY MANAGER
Stephen J. Atkins
COMMUNITY DEVELOPMENT STAFF
Marianne Milkman, Community Development Coordinator
Steven Nasby, Project Coordinator
Stephen Long, Associate Planner
Petra Noble, Intern
Douglas Boothroy, Director of Housing & Inspection Services
Linda Severson, JCCOG Human Services Coordinator
September 1995
ANNUAL PERFORMANCE REPORT
FISCAL YEAR 1995
TABLE OF CONTENTS
Pa.qe
I. ANNUAL PERFORMANCE ...................................... 3-23
A. Resources Made Available Within the Jurisdiction .................3-6
B. Investment of Available Resources and Households
and Persons Assisted with Housing ........................... 7-11
C. Households and Persons Assisted with Housing ................. 1 la-1
D. Other Actions .......................................... 14-23
1. Public Policies .................................... 14-18
2. Institutional Structure and Intergovernmental Cooperation ....18-21
3. Public Housing Improvements ............................ 21
4. Public Housing Resident Initiatives ........................21
5. Lead-Based Paint Hazard Reduction .......................22
6. Affirmatively Furthering Fair Housing .......................23
II. ASSESSMENT OF ANNUAL PERFORMANCE ........................ 24-27
APPENDIX A: DEVELOPMENT PROCESS FOR THE FY94 APR ................. 28
APPENDIX B: SUMMARY OF PUBLIC COMMENTS AND SUBSEQUENT
ACTIONS TAKEN ......................................... 29
APPENDIX C: HUMAN RIGHTS COMMISSION 1994 ANNUAL REPORT ......... 30-31
3
ANNUAL PERFORMANCE
A. Resources (dollars) Made Available Within the Jurisdiction
FEDERAL FUNDS FY94
FY94 Actual
Administering Source of Resources
Agency Funding (dollars)
City of Iowa City
IDED/Cityof Iowa City
City of Iowa City
Burns andAssociates
City of Iowa City
City of Iowa City
City of Iowa City Public Housing
Systems Unlimited
Youth Homes, Inc.
EHP, Youth Homes, DVIP
HACAP
Youth Homes, Inc.
TOTAL
CDBG (Housing and Supportive
Housing Only)
Emergency Shelter Grants Program
HOME Investment Partnership
Rental Rehab-IDED
Rental Rehab-IFA
Public Housing Acquisition
Section 8 Rent Assistance
Section 811 Grant
Section 8
HHS - SCILS
FEMA
Dept. of Energy
HHS - Substance Abuse Program
Flood Damage Reimbursement
FEDERAL FUNDS
46,770
377,113
42,316
62,261
1,524,049
2,669,734
245,263
306,596
189,910
11,152
20,302
64,015
2,182
6,806,055
FY94
Planned
Resources
(Dollars)
463,000
19,000
500,000
0
0
1,600,000
2,500,000
n/a
300,000
n/a
n/a
n/a
n/a
5,382,000
STATE FUNDS FY94
Administering
Agency
Domestic Violence Intervention Program
Emergency Housing Project
Independent Living
MECCA
Johnson County Social Services
Systems Unlimited
Youth Homes, Inc.
Source of
Funding
Crime Victim
Emergency Shelter
IFA Homeless Operations
IFA Rehabilitation
ESGP - Operations
ESGP- Rehab
Dept. of Vocational Rehabilitation
Dept. of Public Health
SSBG Local Purchase - State
Community Serv. Approp. - State
Medicaid (State & Fed.)
State of Iowa
Community SVC
Iowa Arts Council
State POS
Juvenile Court
State DOE
State D & E
IDED
IFA
MINK Training
FY94 Actual
Resources
(dollars)'
40,158
7,500
20,000
2,175
5,731
2,380
12,000
440,590
575,962
199,042
198,353
357,411
61,901
500
723,419
5,879
14,749
27,457
8,970
15,500
1,452
TOTAL STATE OF IOWA 2,721,129
These resources were allocated to the administering agencies; however, actual funds spent in FY94 were
not available for all sources. Planned resources for F"Y94 not available.
PRIVATE FUNDS FY94
Administering
Agency
Greater Iowa City Housing Fellowship
Domestic Violence Intervention Program
Emergency Housing Project
MECCA
LIFE Skills, Inc.
Systems, Unlimited
Youth Homes, Inc.
TOTAL
3ource of
Funding
Consortium of banks
United Way
Private contributions
United Way
Private contributions
Fund raising
Foundations
Miscellaneous income
United Way
Churches
Private contributions
United Way
Private contributions
Client fees
Greater Iowa City Housing
Fellowship
Client funds
United Way
General Mills Fndtn.
Private contributions
Interest
Parent fees
Health insurance contribution
Client rents
PRIVATE FUNDS
FY94 Actual
Resources
(dollars)'
162,772
3,075
17,219
18,557
19,625
17,748
6,695
560
7,575
19,448
28,779
7,825
5,900
143,460
2,000
336,214
14,756
10,000
46,810
3,317
4,654
11,416
8,373
896~778
* These resources were allocated to the administering agencies; however, actual funds spent in FY94 were
not available for all sources. Planned resources for FY94 not available.
6
LOCAL FUNDS FY94
Administering
Agency
Domestic Violence
Intervention Program
Emergency Housing Project
MECCA
Systems, Unlimited
Youth Homes, inc.
TOTAL
FY94 Actual
Source of Resources
Funding (dollars)'
City of Iowa City 22,574
Johnson County 17,054
City of Iowa City 3,500
Johnson County 4,000
Misc. Income 462
Agency Reimb. 489
DSH Soup Kitchen 796
City of Iowa City
Johnson County
Johnson County
Johnson County
LOCAL FUNDS
11,900
146,835
44,207
155,725
407,542
These resources were allocated to the administering agencies; however, actual funds spent in FY94 were
not available for all sources. Planned resources for FY94 not available.
B. Investment of Available Resources and Households and Persons Assisted with Housing
The following discussion addresses the activities, programs, and projects for affordable housing
undertaken in Iowa City in the City's fiscal year 1994. Each activity is listed below the relevant
one-year priority, as detailed in the 1994-1998 CHAS. The resoumes and program funds used
are outlined, as well as planned, actual, and committed expenditures and investment (where
known); geographic distribution of investment (where applicable); and any non-federal funds that
were leveraged are also detailed.
PRIORITY: EXPANSION OF THE AFFORDABLE HOUSING STOCK
ACTIVITY/PROGRAM
Iowa City Press-Cltlzen
Building - Rental
Housing
Acquisltion/Rehab
The former Press-Citizen building was purchased by a private
for profit developer and is being converted into an 18 unit
complex for persons who are elderly or handicapped; small
renter households that are very low to low income will be
assisted. The project is funded by:
Property Tax Abatement
Low Income Housing Tax Credits
HOME Funds
CDBG Funds
Mortgage Loans
Federal Home Loan Bank: Affordable Housing
Program Grant
Iowa Finance Authority
General Partner Loan
TOTAL COST
$150,000
$900,000
$400,000
$30,000
$500,000
$82,976
$15,000
$82,977
$2,161,157
Acquisition of Land for
Affordable Owner-
Occupied Housing
The City of Iowa City acquired one in-fill lot at 1109 Fiffh
Avenue using $16,500 of their General Funds. The City is
currently exploring options to provide an affordable housing
unit on the site.
The City had allocated $30,100 of CDBG funds for the
acquisition of a property on North Dodge Street to be devel-
oped for low-income housing; the project was cancelled
because it was not feasible to proceed.
Iowa City Public
Housing Authority -
Rental Housing
Acquisition and Rehab
The iowa City Public Housing Authority acquired and reha-
bilitated 20 units for use by qualifying low-income households;
$1.525 million in federal and local funds were used to finance
the acquisitions.
8
ACTIVITY/PROGRAM
Greater Iowa CIty Hous-
ing Fellowship -
Rental Housing
New Construction
Eight duplex rental units am being constructed by the Greater
Iowa City Housing Fellowship in the Whispering Meadows
subdivision. $75,000 in CDBG funds were used to purchase
the land, and $326,829 in HOME funds and $200,933 in
private funds are being used to construct the units. The units
will be rented to families on Section 8 assistance with
incomes below 50% of the median. The project is 40%
complete.
The Greater Iowa City Housing Fellowship used $45,000 in
CDBG funds and $122,978 in HOME funds to acquire and
rehab four duplexes which are available to low-income
persons who are having a difficult time utilizing Section 8
assistance.
Section 8 Certificates &
Vouchers
City of Iowa City Down
Payment Asslstance
Lending Institutions
The Public Housing Authority assisted 827 households in
FY94 with $2,669,734 in Section 8 Certificates and Vouchers.
The City of Iowa City provided eight low and moderate
income households with $18,116 in CDBG assistance to help
cover down payment and closing costs of home purchases.
The Iowa City lending institutions, in conjunction with federal
and state programs, have provided sizeable amounts of
money to low income borrowers for meeting housing needs
through various programs in fiscal year 1994. In meeting the
federal requirements to invest some of their deposits locally,
the area financial institutions leveraged the following amounts.
Mortgage Credit Certificate (MCC)
Iowa Housing Assistance Program (IHAP)
Federal Home Loan Bank (FHLB)
Helping Hand to Low-and-Moderate Income
Community Home Buyer
TOTAL FUNDS
$1,189,300
$3,594,200
$4,000,000
$208,000
$203,000
$8,600,389
PRIORITY: REHABILITATION OF THE EXISTING AFFORDABLE HOUSING STOCK
ACTIVITY/PROGRAM
Housing Rehab - Owner-
Occupied
The City's housing rehab program committed $361,128 to five
different programs. Thirty-two venj low and low-income owner
occupied households received assistance for comprehensive rehab,
exterior repair, emergency repair, energy conservation improve-
ments and accessibility improvements.
$250,000 in HOME funds were applied to the rehabilitation of 10
owner occupied units. The owners are very-low and low-incomes.
All of the funds were expended for the ten projects.
Housing Rahab for Special
Populations
Elderly Services Agency used $16.284 in CDBG money to assist 59
eldedy and handicapped homeowners with small repairs to their
homes. This represents 118% of their o~iginal goal. The increase
was due to assistance given to persons affected by the flood (49
regular repairs, 10 flood repairs).
Systems Unlimited used $29,850 in CDBG money to convert a six-
bedroom house into two three-bedroom attached units which includ-
ed kitchen facilities and plumbing for both. These units house six
individuals who are developmentally disabled.
The Mideastern Council on Chemical Abuses (MECCA) used
$24,000 in CDBG funds to rehab the intedor their 24-bed residential
facility. The rehab included the installation of new carpet in the hall-
ways, offices and meeting rooms. Additionally, the restrooms were
tiled and painted.
Homeless Shelter Rehab
The Emergency Housing Project received $2,754 in CDBG funds to
rehab their 30 bed homeless shelter. Broken windows in two rooms
were repaired. the front steps were raplaced, and a fire exit was
installed.
Renal Rehab
The City of iowa City rehabilitated four rental housing units on
Rochester Avenue for low and moderate income households, and
two of the units were made accessible. The City used $46,700 in
CDBG funds and $26,951 in CDBG funds to complete the project.
The housing rshab division also administered rental rehab funds
received from the Iowa Department of Economic Development and
the Iowa Finance Authority ($38,200 and $62,261 respectively);
$20,753 in IFA and CDBG funds were also committed for other
projects. Four new units were assisted; however, the majority of the
funds went toward work on current projects.
The City of iowa City rehabilitated two units on Ronalds Avenue
which will be occupied by low or moderate income households;
$2,022 in CDBG funds and $6,150 in iowa Finance Authority funds
were also used.
10
PRIORITY:
SUPPORT AGENCIES THAT PROVIDE SERVICES TO HELP PEOPLE SECURE
AND STAY IN HOUSING
AGENCY/PROGRAM
Domestic Violence
Intervention Program
Shelter
Greater Iowa City
Housing Fellowship:
Rental Deposit Program
A new $600,000 facility was pumhased using $120,912 in
CDBG funds. Other funding consisted of approximately
$129,000 in private contributions and $350,000 in private
loans for the 50-bed homeless shelter. The shelter will serve
women and children who are victims of domestic abuse. This
will enable the Domestic Violence Intervention Program to
meet the increasing needs and to provide space for
counseling and other programming.
The Greater Iowa City Housing Fellowship has established a
$10,000 loan pool, with a local bank, for no interest loans for
very low to low income households. Funds are to be used for
rental deposits; each household can borrow up to $400. To
date 35 loans have been granted.
City/Banks:
Homebuyers
Educational Seminar
The City conducted an educational seminar for first-time
homeowners in conjunction with several local banks and real
estate agencies. The seminars were targeted to lower-
income households and focused on issues such as budgeting,
credit and available assistance for lower-income households.
MECCA
MECCA, an agency which provided services to over 2,000
individuals in need of substance abuse prevention and
treatment programs, received $20,171 in CDBG funds in
operational aid. MECCA also provided individualized treat-
ment plans for persons in traditional out-patient, intensive
treatment, day treatment halfway house and residential
services.
LIFE Skills
LIFE Skills Inc. received $16,500 in CDBG assistance to
provide funding for a half-time housing coordinator to assist
homeless persons and persons threatened with homeless-
ness. Assistance takes the form of finding housing or helping
them retain their housing. The program is intended to help
households by providing location assistance counseling and
basic household skills training. LIFE Skills assisted 39
households in FY94.
Homeless Shelters
The homeless shelters of Iowa City used $22,540 (including
funds carried over from FY93) of Emergency Shelter Grant
funds in FY94. The funds were used primarily for covering
the operational costs of the shelters, insurance payments, and
minor rahab.
PRIORITY:
11
FEASIBILITY STUDIES AND PLANNING
AGENCY/ACTIVITY
Lead-Based Paint
ICARE
Elderly Services Agency
A committee of pemons from the Johnson County Department
of Health, Apartment Owners Association, Iowa City School
District and the Iowa City Planning and Community
Development Department met to discuss the hazards of lead-
based paint and what actions am necessaW to prevent lead
poisoning. Such initiatives as community-wide education
programs and creation of materials for public dissemination
were identified as options for increasing awareness.
Iowa Center for AIDS Resoumes and Education (ICARE)
surveyed over 200 persons with AIDS/HIV to determine their
housing needs. ICARE completed and submitted a report on
the data to the City and other agencies and organizations.
$15,082 in CDBG funds were used to fund a half-time
position to complete the research. ICARE will now formulate
a housing plan and begin applying for grants designed to
meet the needs identified in the survey.
Elderly Services Agency surveyed 600 persons over 55 years
of age to identify the housing needs of Johnson County's
elderly population. Approximately 50 hours of paid staff time
(City employees) and a considerable number of hours by
volunteers were used to complete the survey. Printing costs
of approximately $400 were covered by Ecumenical Towers,
Inc.
Name of Jurisdiction
CITY OF IOWA CITY
~ Provided
by Income Group
1. Veq/Low-lncome'*
(O to 30% of MR)
CHAS Annual Performance Report
Tabie 1
Households and Persons Assisted with Housing
Re~em
&2Member Related Related
H~sehotds (2to4) (5ormom)
(A) (B) {C)
19 HH
19 HH
OwnBrs
All Obher Extst~g lst-llme Hornetmyers Total
House- Total Home- with All Home-
holds Renters owners Children Others owners Individuals
(D) (E) (F) (G) (H) 0) (J)
2 HH 2 HH
337 HH 356 HH 78 HH
78 HH
3 HH 3 HH 21 HH 8 HH 29 HH
340 HH 359 HH 101 HH
4. Total Low-income
Oinesl +2+3)
833 P ~
320 HH
154 P
56 HH
46 P
3 HH
7 P
4 HH
3 P
101 HH
1,083 P
498 HH
1. Hispanic
2. Non- Hispanic White
3. Black
4. Native American
5. Aslan and Padtic Islander
6. Unknown/Other
7. Total (must equal Totat on
line 4. column (M)
747 P
747 P
8 HH 109 I~t
F~
1994
Special To~al
FamiUes Needs Total Secljon215
(K) (L) (M) {N)
336 P 1,083 P
213hH ~ HH
434 HH
30 HH 62 HH
336 P 1,083 P
213Fg-t 30 HH 498 HH
Radaj~hntc Composition of
~.e4. cdurra(M)
Total Low Iris, Tie:
Racial characteristics calculated by using Assisted Housing
statistics on occupancy.
224 HH in this group were distributed within racial categor-
ies using Assisted Housing statistics.
Households in this column are "Presumed Benefit" so no income~'~s~'~.
or racial information was collected. These HH are included
as "Unknown/Other".
71HH in this group were assisted through the Greater iowa
City Housing Fellowship's Rent Deposit Program and no racial
information was collected. Therefore, these 71HH were in-
cluded in the "Unknown/Other" category.
:].2
C. HOUSEHOLDS AND PERSONS ASSISTED WITH HOUSING (Comments on Table 1)
This report only includes persons and households who moved into a unit\shelter in FY94 or had
a rehabilitation project completed (owner-occupied households only). Families who lived in Public
or Assisted Housing last year and continue to do so are not counted. Table 1 shows the number
of households actually assisted as compared with Table 3B in the F'Y94 CHAS Annual Plan which
estimated the number of households we planned on assisting this fiscal year.
Renter Households
Elderly Households: For elderly tenter households, the figure in Table I represents public and
assisted housing (19 households). Other elderly households may have been assisted through
LIFE Skills or Greater Iowa City Housing Fellowship services, however, they do not keep age
statistics.
Other Rentere: In F'Y94 there were several projects designed to assist a variety of tenter
households. The organizations\agencies providing services or assistance to renters and the
number of rental households assisted are detailed below.
Public Housing Units 23
Section 8 201
Rental Rehabilitation 3
LIFE Skills, Inc. 39
Greater Iowa City Housing Fellowship (units) 3
Greater Iowa City Housing Fellowship (rental deposits) 71
TOTAL OTHER RENTER HOUSEHOLDS 340
Owner Occupied Households
Existing Owners: This category consists of households receiving assistance from the City of Iowa
City's Housing Rehabilitation Program and the Elderly Services Agency Small Repair Program.
During FY94 there were 101 existing homeowners assisted, which nearly matches the number
estimated in the FY94 CHAS Annual Plan (99 estimated).
First-Time Homebuyers: There were eight households who received downpayment assistance
through the CDBG program in FY94, We had estimated that nine households would be assisted
and that the majority of these would be households with children. However, none of the eight
households assisted in FY94 had children. This is probably due to the tight window of affordability
these households had to fit through (being low income and still having an income high enough
to qualify for a private mortgage). Overall, the response to the downpayment assistance program
was good from the local lenders, of the eight loans made there were four different banks involved.
Homeless Persons and Families
The difference between our estimate in CHAS Table 3B and the actual number of persons
assisted is nearly 500. Better tracking and counting systems used by one of the shelters
eliminated persons from being double counted, therefore the actual number of persons reported
dropped. Also, the Domestic Violence Intervention Project (DVI P) was in the midst of constructing
and opening its new shelter in FY94 which decreased the number of persons assisted for this
fiscal year. With the opening of the new, larger DVIP shelter the number of homeless households
assisted should increase in the next fiscal year.
At present, the three emergency shelters providing service in Iowa City are reporting monthly
through the Emergency Shelter Grant program. Any overlapping service between the three
shelters is minimal because they are designed to serve different populations (one shelter is only
for minors, one is for victims of domestic violence (women and children), and the other one has
no restrictions).
Non-Homeless Special Needs
In FY94 there were two CDBG projects which focused on this population, the Systems Unlimited
(six units) and MECCA (24 bed facility) rehabilitation projects. Systems Unlimited works with
persons who have disabilities and MECCA assists persons with substance abuse problems.
These groups of individuals are, by HUD regulations, presumed to be low income. As such,
neither Systems Unlimited or MECCA kept income or racial statistics. Because of this lack of
data, in Table 1 these 30 households are included in the "otherSunknown" racial category.
Assistance by Race
Data for assistance by racial and ethnic group show that assistance for minority groups exceeded
the proportion of very low-income households in the population for all racial categories except
White and Asian\Pacific Islander. These numbers are similar to the data from the performance
of the CDBG program in the years past.
Percent Percent
Racial/Ethnic Overall Percent Percent Below Persons Households
Group in Population' 50% MFI' Assisted Assisted
Hispanic 1 2 4 3
White 91 84 77 75
Black 2 3 14 13
Native American >1 >1 4 1
Asian/Pacific 5 10 > 1 1
Islander
Other/Unknown .... > 1 7
TOTAL 100 100 100 100
· Source: U.S. Census Bureau, 1990
The overall goal of the City of Iowa City's CHAS is to address housing and related support
services, especially for lower income households. Providing opportunities for safe, decent, and
affordable housing is the primary objective of the CHAS Plan. The following assessment is based
upon the correlation of the goals specified within the CHAS Annual Plan for FY94 and the actual
performance of the City and others in meeting the numerical goals.
This was also the year of the Great Midwest Flood. In addition to the activities described in this
assessment, a great deal of staff time and funds of the City of Iowa City, the State of Iowa and
numerous human services agencies were committed to assisting persons suffering from this
disaster.
D. Other Actions Undertaken
D.1. Public Policies
Once the City's priorities and strategies for investment are determined, the City looks closely at
the coordination of policies, goals, administration, and implementation. This section and the next,
"Institutional Structure and Intergovernmental Cooperation" looks at these issues.
Iowa City has its own unique set of barriers to affordable housing, many of which can be
addressed, at least partially, through local public policies. These policies are discussed under
the following categories: 1) Availability of Resources; 2) Development Standards; 3) Zoning; 4)
Building Codes; and 5) Community Attitudes. The City intends to deal in some way, in the next
five years, with all of the policy options discussed.
AVAILABILITY OF RESOURCES
This is generally the most fundamental problem, with a lack of financial resources and available
land at issue. The increase in homelessness and serious affordable housing issues has caused
the creation and limited funding of state and federal housing programs. Iowa City will continue
to try to capture as many of these funds as possible, but more private and City funds are needed.
In Iowa City the availability of developable residential land (particularly for multi-family structures)
that is relatively close to jobs, schools and shopping is nearly nonexistent. In addition, developera
who are constructing housing on the available land are targeting the middle- to upper-income
owner-occupied housing market, and the student rental market.
Policy Options
1. Acquisition of Available Vacant Parcels
Unlike many communities, the City does not own any vacant land available for housing
development. In 1992, the City Council adopted a policy for property acquisition through an
ongoing lot acquisition program; however, these funds ($75,000) will not allow for the purchase
of more than five to seven infill lots. The City has not yet been successful in acquiring any such
lots. The Council also approved $30,000 of CDBG funds for this activity in the City's 1994 fiscal
year (the 1993 CDBG program year). Even combining these City funds, the resulting $105,000
will not buy enough land, and additional financial resources are necessary to complement City
and CDBG allocations.
Possible sourues of funding in addition to state and federal rasoumes are the general revenue
fund, general obligation bonds, revenue bonds, tax abatement, or tax increment financing.
Although the City Council has recently approved the use of both tax increment financing and tax
abatement, the use of bonds or general revenue funds seems less likely due to a State-imposed
property tax freeze for the next two years.
2. Annexation
This has been an option that has been considered very recently. Annexation is relatively easy;
however, it involves extension of infrastructure and services, and in many cases, environmental
factors such as wetlands and steep slopes create additional development expenses. Annexation
for affordable housing may be politically infeasible due to the additional costs of development,
such as infrastructure, which must be subsidized by the City or passed on to the consumer in the
form of higher home prices.
15
3. Community Land Trust (CLT)
CLTs are becoming popular throughout the country and may be organized by the City or other
actors such as a public or private nonprofit organization, The difficulty with CLTs are that they
require relatively large amounts of initial capital funding to secure the necessary properties and
maintain available resoumes for staffing, CLTs generally are 99-year leases; .a long-term
commitment is necessary to ensure the proper sale and resale of properties, This may be an
option to explore further,
DEVELOPMENT STANDARDS
Historically, development standards have been used to ensure the public safety and maintain the
status quo or integrity of a neighborhood. Overly stringent development standards increase the
land costs of residential developments. Because times, technology, and needs change, updates
and revisions in development standards are appropriate.
Policy Options
1. Allowing Development on Non-Conforming Lots
This option allows for residential development of affordable housing on existing non-conforming
lots, especially where two or more of these lots are adjoining. An ordinance amendment
regarding this issue was approved by the City Council in May 1993, for these situations to be
examined on a case-by-case basis. One such case was approved during the past year.
Additional regulatory barriers will be addressed as they are identified.
2. Changing Development Standards for Affordable Housing
Development standards for new construction are often expensive, thus prohibiting the construction
of affordable housing. An alternative to this may be incentives for greater use of Planned
Development Housing (PDH), which might allow for narrower streets, elimination of curb and
gutter, or sidewalks on one side of the street only, and cluster housing. These modifications in
development standards could be incorporated into a neighborhood cost effectively while
maintaining high levels of public safety.
ZONING
Municipal zoning laws and comprehensive land use planning are aimed at directing growth. To
assist in the development of affordable housing, the following three zoning changes may be
considered.
Policy Options
1. More High Density Zones
There is very little developable land which is zoned for high density residential development. High
density zones allow land costs to be offset by a greater number of units, making them more
affordable. Attractive single and multi-family development, including manufactured housing, is
possible at densities from eight to 20 units per acre. Another option is to have developments with
a mixture of housing types.
Community attitudes in Iowa City must be overcome in pursuing this option; many citizens react
negatively not just to housing for low-income people, but to higher density development in general
(and not only because the two are sometimes associated). Other associated issues such as
16
street widenings and school bond elections to construct a much-needed elementary school (many
are severely overcrowded) make increasing densities in some areas even more politically
unpalatable.
2. Inclusionary Zoning
Inclusionary zoning is a relatively new concept to the Midwest, where most communities have
housing within the reach of most residents. It requires developers to construct a number of
affordable units proportional to the size of the development. The decision to pursue this policy
would require a study of when and where such a requirement might be appropriate. Considering
the large growth in residential development occurring at the high end of the scale, it would most
likely still be possible for market-rate developers to continue to build and to make a reasonable
profit, even with an inclusionan/zoning policy. Lot sizes and general development standards in
Iowa City are not in themselves exclusionary; the exclusion is created by the perceived market.
3. Incentive Zoning
With incentive zoning, a developer would be granted density bonuses for providing public
amenities such as affordable housing, walkways, or childcare. Iowa City is experimenting with
this type of zoning with its PRM and CB-5 zones~. This is only a limited use of incentive zoning,
however; a more extensive experiment of this in the housing area may be justified. This option
would be one way to increase the density of certain development without increasing the overall
allowable density in an area.
BUILDING CODES
Building code regulations directly influence all commercial and residential construction. The main
purpose for building code regulations is to protect the public health, safety, and welfare. Changes
in these codes must be met with intense scrutiny because public safety is the basic responsibility
of a governing body. The City's standards are and will continue to be updated every three years
to take advantage of the latest technology in building materials and construction techniques. The
City will need to balance housing affordability and the health and safety of all its citizens. The
City already has some flexibility built into its building code regulations, such as regulations
regarding the use of less expensive building materials. The following issues can be addressed:
* codes and building regulations
' enforcement bodies
* codes that might be insensitive to older housing stock
* possibly antiquated requirements
* environmental and state regulations
* rehabilitation guidelines
Policy Options
1. Modify Codes Related to Building and Development
Overly restrictive building codes can hinder efforts to provide affordable housing. Such is the
case in Iowa City when a house is moved. Existing codes require moved houses to meet new
' The Planned High Density Multi-Family Residential Zone (PRM), in the Near South Side, allows a density of 50
dwelling units per acre, but contains a provision allowing higher densities for one-bedroom units {approximately 62 units
per acre) and efficiencies (approximately 87 units per acre). In the CB-5 zone, also in the Near South Side, residential
units that are part of a Cityoapproved affordable housing program are exempt from the minimum parking requiremems,
provided that those units do not exceed 30 percent of the building's total units.
17
construction codes, which in some instances is not feasible, and in other cases results in such
extensive rehabilitation that the house becomes unaffordable. Health and safety concerns must
be carefully weighed against the dire need for affordable housing. Additional flexibility in iowa
City's building code regulations may be needed to allow for a balance between safety and
affordability. Also, the City will work with the Board of Appeals to increase awareness in the
building community of the need for affordable housing and the flexibility in the current building
code that may not be common knowledge.
COMMUNITY ATTITUDES
A more subtle barrier to affordable housing is the attitude of the community. Rules and
regulations concerning housing and discrimination can be passed by governing bodies, but a
persistent, unfavorable stigma is attached to public and low-cost housing projects and the people
who live in them. If higher densities are used to foster affordable housing development, the
greatest concern of existing residents will be that property values will be lowered. Concern about
property values is also raised with the development of certain housing types: housing for persons
with severe mental illness, single-room occupancy units, and low-income rental complexes.
In addition, community attitudes affect the decisions of the City Council and influence the strength
of commitment to resolving affordable housing problems. If community attitudes are going to
change, the City Council must encourage broad measures for educating the community, and be
prepared to experiment with unpopular solutions.
Policy Options
1. Continued Commitment from City for Affordable Housing Opportunities
Reaffirming iowa City's commitment to increasing affordable housing opportunities may be the
simplest method of addressing negative attitudes. Some residents may be willing to have more
of an open mind about housing for low-income people if the City Council demonstrates that
affordable housing is a top priority. The commitment of the private sector is also important. The
City will continue to work with local financial institutions and private nonprofit and for-profit
developers in creating affordable housing opportunities. These joint ventures have increased in
the last year or two, and will continue to be the most important way in which the low-cost housing
stock is expanded.
2. Dispersion of Low-Cost Housing throughout City
Some of the policies discussed above will be helpful in changing the negative pemeption of
affordable housing as this type of housing is blended with other single-family and multi-family
units throughout the city. As much as possible, new development of affordable housing will be
dispersed throughout different sections of the City.
3. Fair Housing Policy
The City will continue its efforts to address discrimination that people confront in seeking housing
in Iowa City. In the State of Iowa, access to housing, and equal housing services, may not be
denied because of race, color, creed, sex, religion, national origin, physical/mental disabili-
ty/handicap, or familial status/presence of children. The City of Iowa City has added to this: age,
marital status, sexual orientation, and public assistance.
The Iowa City Human Rights Commission and the Tenant/Landlord Association both repod that
a number of housing discrimination complaints deal with family size (see Appendix C: Human
18
Rights Commission Report). For a large, lower-rent apartment, landlords would often times prefer
to rent to a group of students than a large family on rental assistance. There is also the
perception that Section 8 assistance comes with a great deal of paperwork or added inspections.
One issue that the Human Rights Coordinator hears complaints about is racism encountered
when trying to rent an apartment in Iowa City. According to the Human Rights Commission, there
have been only one or two complaints in the last four years about discrimination based on
disabilities. It is not the case that some areas of the City are ignored by local lending institutions.
It is not known whether members of the real estate community "steer" renters or purchasers to
certain areas. Since Iowa City has neither areas of blight nor high concentrations of minority
groups, it is likely that little steering would occur. This is extremely difficult to document in any
case.
As mentioned before, the tight market in Iowa City, especially for lower-cost rental units,
encourages discrimination by making it possible for landlords to be highly selective. ']'he high
demand for few units means landlords will follow the path of least resistance -- that is, choose
tenants that will not require additional paperwork, will pay rent on time, will not upset the other
neighbors, etc. Populations that require some flexibility or understanding will lose out. The
number one way to address this problem is through the expansion of the affordable housing
stock.
The City has attempted to deal with these fair housing issues, some that are unique to iowa City
(relative to the rest of the state), by legislating against certain types of discrimination that are
perceived to be widespread (such as discrimination based on public assistance, e.g. AFDC
assistance). The City, through the Human Rights Coordinator, will continue to monitor and
investigate all housing discrimination complaints, review housing advertisements, distribute
information to local realtors, landlords, tenants, and housing developers, and provide input into
City actions that may have an impact on specific populations. Housing discrimination problems
are best attacked through education, changes in local policy, and follow-through on complaints.
The City will continue to do all three, as it has in the past.
D,2. Institutional Structure and Intergovernmental Cooperation
The institutions described below are only those involved in a direct way with the provision of
housing in Iowa City, either through programs, projects, or financing. There are dozens of entities
that are involved in providing services that indirectly (but no less importantly) keep people from
losing housing or allow them the opportunity to look for housing in the first place.
The largest provider of affordable housing in Iowa City is the Iowa City Housing Authority.
Through public housing units and Section 8 assistance, over 700 persons are currently assisted
with rental housing. The City's Department of Planning and Community Development is a major
actor, too, with its Housing Rehabilitation Program, planning and research activities, technical
assistance for housing providere, some housing development, and the administration of
Community Development Block Grant funds, many of which go to housing-related projects.
The Greater Iowa City Housing Fellowship (GICHF) is currently the only nonprofit organization
devoted solely to housing low-income persons, and it has so far concentrated on very low-income
renters. This relatively young organization has greatly increased its capacity in the last year.
LIFESkills is a non-profit agency that operates a Housing Skills program with CDBG funding.
LIFESkills helps low income persons locate and stay in housing by helping households with
budgeting and housekeeping skills.
The local lending institutions have played an increasingly important role of late in the development
of affordable housing. A consortium of lendere assisted the GICHF in a project last year and
19
again this year agreed to assist with other projects. A group of lenders, along with the City and
the Board of Realtore, presented a free Homebuyer Education Seminar in July 1993, which will
be continued due to its initial interest and success,
The importance of the emergency shelters in Iowa City goes without saying. These facilities
provide a much-needed service and do so with resources that are always shrinking. (This year
Iowa City shelters received a total of $18,770 from the Emergency Shelter Grants Program, as
opposed to last year's total of $46,770 -- a 60 percent reduction!)
Supportive housing providere play a vital role serving special needs populations in Iowa City.
These agencies deal with not only dwindling resources, like the emergency shelters, but
philosophical changes in the way they are mandated to serve their populations (such as the
State's shift away from group homes for persons with developmental disabilities).
Finally, the community's housing rehabilitation programs are extremely important in maintaining
the City's affordable housing stock as well as upgrading it, as is the case with accessibility
improvements. Elderly Services Agency runs the Small Repair Program, which assists persons
with physical handicaps and/or elderly with small repairs to their homes. These repairs are small
enough that they are too expensive to administer through the City's Housing Rehab Program.
PUBLIC INSTITUTIONS
U.S. Department of Housing and Urban Development (HUD)/Iowa Department of Economic
Development. Through the Iowa Department of Economic Development, the City, nonprofit and
for-profit developers will be administering HOME Investment Partnership funds from HUD.
Approximately half is for rehab projects and the other half for new constructioNconversion.
Iowa Finance Authority. In addition to administering a Rental Rehab Program, which the City will
finish running in FY94, IFA administers the Housing Assistance Fund for acquisition, rehab, new
construction and home ownership programs.
Iowa City Public Housing Authority. The Public Housing Authority owns and manages 82 units of
public housing, dispersed throughout the City plus 738 certificates and vouchers. More than 500
households are on the waiting list for rental assistance (see Part I.a.2.ii.). The Housing Authority
has more contact with individuals and families with housing problems than any other agency in
the community. It also has almost daily contact with local landlords, through the Section 8
program, and with human service agencies.
Department of Planning and Community Development. Five full-time members of the Community
Development Division will continue its affordable housing activities: 1 ) reseamh and planning; 2)
administer CDBG funds; 3) prepare the CHAS, CHAS Annual Performance Report, Grantee
Performance Report and CDBG Program Statement (the latter two for the Community
Development Block Grant program); 4) technical assistance for and cooperation with housing
nonprofit and for-profit developers; 5) rehabilitation program; and 6) other affordable housing
projects.
NONPROFIT ORGANIZATIONS
Domestic Violence Intervention Program (DVIP). DVIP serves women and men victims of
domestic abuse and their children. Using in part $120,000 in CDBG funds, DVIP will construct
a new facility in FY94 that will house approximately 45 people, many more than its currently
overcrowded shelter. This is the only emergency shelter of its type in Iowa City and surrounding
areas.
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Ecumenical Consultation of Churches. The Consultation consists of 19 member congregations
and is the umbrella organization for the Ecumenical Towers Housing Project, the Emergency
Housing Project (see below), and the Common Fund.
Elderly Services Agency. Elderly Services Agency runs several programs dealing with housing
people who are elderly. The Shared Housing program provides elderly persons with housing
alternatives, support services and a safe environment, by sharing their home with another person.
Each person has private space and sharss common areas such as the kitchen and living room.
Elderly Services Agency also runs the Small Repair Program, which does small repairs to homes
so that low-income elderly or handicapped persons can stay safely in their own homes.
Emergency Housing Project (EHP). EHP is an emergency shelter serving homeless local people
or people passing through town. EHP provides shelter, showers, telephone, and referrals to
appropriate agencies.
Greater Iowa City Housing Fellowship (GICHF). The goal of the GICHF is to develop and provide
decent, affordable housing for low-income residents of the Iowa City area, especially to holders
of Section 8 vouchers and certificates. The GICHF also has a new program providing loans for
rental deposits.
Iowa Valley Habitat for Humanity. A brand new affiliate of this international housing ministry has
begun in Iowa City this year, and has purchased a lot on the east side of Iowa City. A low-
income family will be selected to work with Habitat in the construction of a new home for the
family. Habitat for Humanity receives gifts, volunteer time, and no-interest loans to build or
renovate simple, decent homes for people who are inadequately sheltered. Construction is a
cooperative venture between volunteers and homebuyers. Houses ars sold at no profit and with
a no-interest mortgage repaid over a 15- to 25-year period. The house payments ars then
recycled to build more houses.
Hawkeye Area Community Action Program. HACAP provides a variety of programs to help those
in need in the Iowa City area, several of which are housing-related: Energy Assistance;
Weatherization; Homeless Outreach and Support; Utility, Shelter and Financial Related
Counseling; Mortgage Resolution Assistance, and Transitional Housing. HACAP's Transitional
Housing Program provides housing and supportive services for families for up to eighteen months
to enable them to become self-sufficient through counseling, referrals, job training, and household
management skills.
Hillcrest Family Services. Hillcrest Residence (a program of Hillcrest Family Services) has as its
mission to help clients become successful in the living, learning, and working environment of their
choice, with maximum feasible independence from helping professionals. Hillcrest serves adults
with histories of psychiatric or emotional problems that prevent them from living independently.
Independent Living, Inc. This private, nonprofit agency teaches daily living skills to adults with
developmental disabilities to greatly enhance their ability to participate independently in the
community. Skills are taught through self-advocacy, support groups, counseling, and educational
and vocational programs.
LIFE Skills, Inc. LIFE Skills provides services in many areas to many different groups, but one
of its newest programs assists people by teaching the skills needed for both looking for and
staying in housing.
Systems Unlimited, Inc. Systems Unlimited provides permanent, long-term housing for people with
developmental disabilities in group home and apartment settings. Respite care is available on
an emergency basis, if space is available. In-home care is also available.
21
Youth Homes, Inc. Youth Homes provides emergency and shod-term care, counseling, and
supervision to troubled or homeless unaccompanied adolescents. Its services include crisis
intervention counseling; emergency residential services; and group and individual counseling to
youth including pregnant teens or teenage mothers who are homeless.
PRIVATE INDUSTRY
Local developers. Most of the new affordable housing in Iowa City (not including the Public
Housing Authority) has come from local for-profit developers. In particular, Burns and Associates
constructed 48 two- and three-bedroom units at the Villa Garden apartment complex, which was
completed in June 1993. That project leveraged funds from many sources, including CDBG and
tax increment financing from the City of Iowa City. The developer has several new projects in the
works, including one with a housing nonprofit. One project to be completed in FY95 or FY96 is
the Citizen Building in downtown Iowa City. This facility will provide 18 units of affordable rental
housing for seniors and persons with disabilities.
Local lendinginstitutions. With the City's involvement, several of the local lending institutions have
formed consortia to help fund several recent projects by the Greater Iowa City Housing
Fellowship, for affordable rental housing rehabilitation and new construction. They have indicated
interest in continuing assistance for rental and owner-occupied housing projects. Several lenders
were also involved in starting up a homebuyers educational seminar, begun in July 1993.
D.3. Public Housing Improvements
The Iowa City Housing Authority is facing a changing public housing program. HUD is no longer
developing large complexes and is stimulating PHAs to sell public housing units. Under the
tenant initiatives of HUD, homeownership will change the mixture of housing units within the
program. Through the Section 5 (h) and HOPE programs the Iowa City Housing Authority is
working toward transferring some of the existing property. These changes will create a
management task focused on single family and semi-detached housing units. Over the next five
years, the strengths of the tenants and management will be used to improve the program.
The living environment of the public housing and Section 8 tenants is higher than one would
expect in the financial climate of Johnson County. Although the County has one of the highest
median incomes in the State, the scattered site nature of the Iowa City Housing Authority units
provides the tenants and participants the same living environments of the larger population. With
little segregation of public housing units, there are no major activities planned for this segment
of the CHAS.
D.4. Public Housing Resident Initiatives
The Iowa City Housing Authority (ICHA) is committing to a homeownership program that will entail
the transfer of units from public control to private ownership. The program is driven by
replacement awards provided by HUD. The initial offering under this program will be replaced
by newly constructed public housing units. There will not be a net decrease in the number of
public housing units available to very low-income families. The mix of units will gradually change
to scattered site single or duplex units.
The ICHA's plan will recognize the choice of the tenant to participate in the management of the
complexes in which they live. For those tenants for whom homeownership is an option, tenant
groups have been started at the two major complexes of the ICHA and plans are laid for tenant
or condeminium associations to be formed at other apartment units operated by the Housing
Authority. As the transfer of property begins, staffing efforts will be refocused on the complexes
22
and other multi-family units. The first-year objective is to begin the program with 20 single-family
and duplex units; the second year will begin the transfer of the multi-family units to the control and
operation of the tenants. The third and subsequent years will continue the transfer of the old and
the replacement units in the program.
For tenants not wishing homeownership options, programming will be directed toward creating
tenant support groups and family self-sufficiency programming to support them in their tenancy.
D.5. Lead-Based Paint Hazard Reduction
The reduction of lead poisoning in children and abatement of lead based hazards is a task with
so many facets that a community-wide effort must be instituted. The strategy of the City is to
organize a public/private partnership to seek solutions for this problem. The education of City
residents as to the actual problem will need to parallel efforts to organize the community response
so that a responsible plan may be obtained.
Current abatement of lead-based paint hazards on a systematic level has only been achieved
through the Iowa City Housing Authority. The public housing stock of the City of Iowa City is
certified as being free of lead-based paint hazards. In recognition, local owners and contractors
have on their own initiative abated some other properties. The demolition of older houses still
remains as the operative method of lead-based paint abatement in Iowa City. Housing and
Inspections Services in the Rental Permit Program identifies and cites rental units with chipping,
peeling, cracking paint and requires abatement of the problem. Prior to issuance of a rental
permit, Housing and Inspection Services also requires the owner to certify that the property
complies with 24 CFR, Part 35 as it applies to lead-based paint. There are no requirements for
mandatory testing and abatement of older housing stock.
The following is our plan for the reduction of lead-based paint hazards in Iowa City in 1994.
Organize a committee of public and private interests to address the community's response
to lead-based poisoning hazards. This committee could consist of representatives from
the Iowa City Department of Planning and Community Development, Housing and
Inspection Services, the Iowa City Community School District, the Apartment Ownera
Association, the Johnson County Department of Health. the Housing Commission. and
one or more citizen representatives.
This committee will form the foundation of a larger community effort focused on the results
of the first year. The goals that are identifiable are organizational in nature. During the
first year attention should be given to facilitating the identification and organization of
testing services for both people and property. Concurrently material for public dissemina-
tion can be studied and approved. Use of schools, cable, television, radio, and written
material will expose the general public as to the risks and the prevention of lead hazards.
Collection of data as to the size of the problem would lead to an understanding of the
resources that will eventually need to be committed to this problem.
2:3
D.6. Affirmatively Furtherlng Fair Housing
The following actions were undertaken by the City of Iowa City, in the City's fiscal year 1994, to
affirmatively further fair housing. Also see the Human Rights Commission's Annual Report in
Appendix C.
ACTIONS TAKEN TO AFFIRMATIVELY FURTHER FAIR HOUSING
Actions Taken Results
Iowa City Human Rights Commission adver-
tises on a weekly basis on fair housing
discrimination in the Iowa City Press Citizen
PSAs on Housing Discrimination am shown
on Cable Channel 29 in Iowa City
Pamphlets and posters on the fair housing
discrimination law are disseminated to com.
munity organizations and are displayed at
the University and Civic Center and library
and on City buses
Monitoring for illegal advertisements is done
regularly by the Human Rights Coordinator
Referrals of housing discrimination com-
plaints outside Iowa City's jurisdiction were
made to HUD and the Iowa Civil Rights
Commission
Receives phone inquiries
Get informal and formal complaints
Increased community awareness
Commission informs parties of illegality
Interagency cooperation
Fair Housing Law video disseminated in the
community
Revising Human Rights Ordinance to be-
come substantially equivalent
Commission brochures am sent to landlord-
owners by the Housing and Inspection Ser-
vices Division
Increased public knowledge of law on Fair
Housing
Commission is currently working on revi-
sions
Information about housing law
24
II. ASSESSMENT OF ANNUAL PERFORMANCE
A. Expansion of the affordable housing stock
This analysis is based upon the City's 1994 fiscal year (July 1, 1993 to June 30, 1994). An
expansion of the housing stock, both rental and owner-occupied, occurred this year. The housing
market in Iowa City continues to be tight, as such, prices remain high. Because of the market
(higher prices for all types of housing) nearly all of the units constructed were by private sector
developers, however, they were not affordable for low income households. On the positive side,
an expansion of the number of housing units helps to free up other units within the City that may
become occupied by lower income households.
The 1994 CHAS Annual Plan proposes many projects to expand the stock of affordable housing.
Iowa City has a need for all types of housing; as such, funds spent for housing were allocated
to rental units. owner-occupied units, special needs facilities and homeless shelters. Additionally,
the Public Housing Authority continued to administer its Section 8 program and make applications
for additional assistance. The following is a brief description of the activities that were undertaken.
First, the expansion of the rental housing stock. CDBG funds were used by the Greater Iowa City
Housing Fellowship (GICHF) to acquire four duplex lots in a new subdivision. GICHF is planning
on building eight rental units with HOME funds and a private mortgage. When completed, these
units will be rented to large households with Section 8 assistance. The GICHF is also using
CDBG and other funds to acquire and rehabilitate four existing duplexes. These units will also be
rented to households with Section 8 assistance. The Public Housing Authority (PHA) is applying
for funds to construct 40 units of single-family rental housing. Approximately 20 of these units are
targeted for eventual sale to the PHA households through the Tenant to Owner Program. In
addition, the PHA applies for funds from HUD for its programs as Notices of Funding Availability
(NOFA) are published.
Second, activities designed to expand the number of owner-occupied units that are affordable to
lower income households. Projects focusing on this type of housing are few due to the high cost
of owner-occupied housing. Data from the Iowa City Board of Realtors shows that the median
price for a single-family home in Iowa City was $104,000 as of June 30, 1994. In FY94 there were
eight households assisted with the City's downpayment assistance program. This program
provided up to $3,000 in assistance that was in the form of a silent second mortgage which
becomes due when the property is sold, transferred, or rented. In conjunction with the
downpayment assistance program the City, local lenders and a member of the Iowa City Board
of Realtors prepared and presented a Homebuyer's Educational Seminar that was free to the
public. More than 90 persons attended the seminar in March, 1994. The main topics of the
seminar focused on financing options and available assistance to lower income homebuyers.
Another project planned and funded by the City's General Revenue Fund was to acquire
scattered infill lots. This year one lot was purchased on Fifth Avenue. The intent of this project
is to experiment with different affordable housing types (manufactured housing, modular housing,
etc.)
B. Rehabilitation of the existing affordable housing stock
Through its rehabilitation program, the City administers Rental Rehabilitation funds from the Iowa
Department of Economic Development and the Iowa Finance Authority. These monies are used
by landlords to rehabilitate rental units which are or will be rented to low income households. Due
to the low interest rates, and the demand for rental units, there has not been much interest in this
program. In FY94 there were three units completed and occupied as a result of this program.
Another rehabilitation project involves a for-profit developer who has acquired an historic
25
downtown building (with CDBG assistance) and plans on converting it into 18 one-bedroom units
for seniors and persons with disabilities. To date this project is behind schedule and targeted for
completion and occupancy in late FY95 or early FY96.
Owner-occupied rehabilitation is the cornerstone of the City's housing rehabilitation program.
Within this program there are several different components that include comprehensive
rehabilitation (HOME and CDBG), exterior repair, residential accessibility, residential facility
rehabilitation, emergency repair and energy conservation. In FY94 the rehab staff completed 33
projects, in addition to undertaking a large number (over 80) of flood repair projects. Rehab staff
also worked with two local human service agencies on rehabilitation projects. The Mid-Eastern
Council on Chemical Abuse (a 24 bed facility) and the Emergency Housing Project (a 30 bed
homeless shelter) completed rental projects this year which help them to better serve their clients.
Systems Unlimited, an agency that provides group homes and counseling for persons with
disabilities, used CDBG funds to convert a six bedroom house into two self-contained duplexes
which will house three clients each. The goal of this moderate rehabilitation project was twofold;
to upgrade the existing facility and make the house into a group home that would meet the needs
of their clients. Another rehabilitation project funded by CDBG includes Elderly Services Agency's
(ESA) Small Repair Program. ESA's goal is to assist seniors by making small repairs or
accessibility modifications to their homes so they can remain living in them safely. ESA assisted
65 elderly households this fiscal year.
C. Support agencies that provide services to help people secure and stay In housing
Since the rental market in Iowa City is so tight there are a number of barriers lower income
households must overcome in order to secure housing. The most evident barriers are the lack
of affordable units, poor living skills, and only limited income. Support services are an important
aspect of the 1994 CHAS. Many lower income households are in need of some type of support
service in order to locate housing, stay in housing or to improve their living skills. Iowa City uses
CDBG and other funds to provide financial support to a number of human services agencies. In
FY94 the City used $140,000 in CDBG and $220,718 in general revenue funds for its Aid to
Agencies Program. These funds are used by human services agencies for operating expenses.
In response to the need of lower income households, the GICHF and First National Bank began
a Rental Deposit Loan Program. This program is designed to assist low income households with
the "up front" expenses of renting, specifically the rental deposit. A loan committee reviews each
application and the households that are approved are given short-term installment loans for their
rental deposit. In FY94 there were 71 renter households that received loans.
Another type of assistance that is available to lower income households is the LIFESkills Housing
Curriculum Program. LIFE Skills uses CDBG funds for a part-time Housing Coordinator whose
job it is help locate affordable rental housing and teach living skills. LIFE Skills also acts as a
liaison between renters and landlords. Through this intervention LIFE Skills has been successful
in helping lower income households stay in their unit and become better tenants. This is the
second year for this program; and 39 households were assisted this year alone.
Iowa City's three emergency shelters made applications for Supportive Housing Program funds
that would allow them to provide the services needed by their particular clientele. The three
shelters received approximately $18,770 in Emergency Shelter Grant funds for their operational
costs through a grant from the State of Iowa. Two shelters (DVIP and EHP) applied for HOSGP
funding from the Iowa Finance Authority. In FY94 only the EHP received these funds which
totalled $22,175.
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The Salvation Army applied for and received $16,000 in CDBG funds for a Soup Kitchen. Funds
for this project were not used because of a lease problem, however, the Salvation Army has
taken over the meal site from the EHP.
The most ambitious project, implemented by a non-profit, was the construction of a new 50 bed
facility by the Domestic Violence Intervention Program (DVIP). Funding for the $600,000 facility
came from CDBG, the sale of DVIP's old facility and a capital campaign. This new facility is
designed to provide victims of domestic violence a temporary residence and, counseling services.
A Family Self Sufficiency (FSS) Program has been planned by the PHA. The FSS program is
designed to help households receiving assisted housing become economically self-sufficient.
Human services agencies were enlisted to help the PHA form the program outline and provide
information to potential clients. Input for the FSS program was also sought from the Local
Homeless Coordinating Board.
In relation to economic well-being, the City used CDBG funds for a Mayor's Youth Employment
Program (MYEP) project that provides employment training and education to disadvantaged
youth. In FY94 more than 20 youth participated in the "WE DELIVER" enterprise. WE DELIVER
was a delivery and odd job business that was started and operated by the MYEP youths. The
participants in this program were provided stipends while they were "in training". As FY94 ended
it was apparent that the WE DELIVER business was not sustainable. MYEP planned on buying
an established business (the Popcorn Cart) and operating it seasonally.
D. Feasibility studies and planning
Studies on Single Room Occupancy (SRO) residences and barriers to affordable housing were
planned by the Community Development Staff for FY94, however, due to the flood staff did not
have the time to undertake these two studies.
An independent agency, the Iowa Center for AIDS Resources (ICARE) received $15,500 in CDBG
funds to perform a survey of persons with HIVeAIDS. The survey focused on the housing and
supportive service needs of this population. ICARE discovered that the greatest needs were in
the area of in-home services, such as housekeeping, shopping, and medical assistance. Financial
assistance was the most important housing need expressed in the survey. This financial need is
directly related to the progression of the AIDS disease and the individuals' inability to work or
continue employment.
E. Summary
Renter Households
The goal for assisting rental households, from the 1994 CHAS Annual Plan, was 144
(excluding Section 8 assisted households). Table 1 shows that 359 rental households
were actually assisted. if Section 8 households are excluded, the figure becomes 116
households. This number is slightly smaller than the projected level of 144, due to the
delay in several projects.
During FY94 the City assisted 359 rental households through a variety of programs. The
Public Housing Authority provided Section 8 assistance to 243 new households in FY94,
including 19 elderly households. In response to identified needs, LIFE Skills provided
housing counseling for 39 households and the GICHF assisted 71 households with rental
deposits and utility deposits. Additionally, six rental units were added to the affordable
stock through the CDBG program. CDBG funds were used to help landlords rehabilitate
units that would be rented to lower income households.
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OwneFOccupied Households
Iowa City's activities to assist homeowners matched the target of 109 units shown in the
1994 CHAS Annual Plan (Table 3B). The following is a breakdown by program of the
households assisted in FY94.
City of Iowa City Housing Rehabilitation Program
Elderly Services Agency Small Repair Program
Downpayment Assistance Program
41 households
60 households
8 households
The number of homeowners assisted in FY94 would have exceeded the target if not for
the 1993 flood, During this year the City Rehabilitation Program was dealing with more
than 80 additional rehabilitation\replacement projects funded with CDBG Disaster Funds.
Non-Homeless Special Needs
In FY94 there were two projects; the Mid-Eastern Council on Chemical Abuse
(MECCA)rehabilitation project and the Systems Unlimited group home conversion. These
two projects represent 30 beds\units. This number is below the target of 82 beds\units
presented in the 1994 CHAS Annual Plan. The difference being the exclusion of the new
50 bed Domestic Violence Intervention Program (DVIP) shelter. Although some of DVIP's
clients are not homeless (some may be seeking temporary refuge or counseling) there is
not a reliable method of counting these households separately. This being the case we
are counting the DVIP shelter as assistance to homeless persons and not counting it in
this category. If DVIP were included, the City would have come close to matching its 1994
CHAS Annual Plan target.
Homeless Persons
The number of homeless persons served in FY94 was 1,083 (747 individuals and 21:3
families) compared to the estimated number of 1,200 individuals and 150 families shown
in the 1994 CHAS Annual Plan.
This discrepancy is mainly attributable to better record keeping by the largest homeless
shelter, the Emergency Housing Project (EHP). EHP has started to use a computer
database to track people as they come and go. Currently, if a person leaves the shelter
and then returns they are not double counted since their name shows up in the database.
This new system should provide the City and State with more accurate statistics regarding
the homeless population. Additionally, DVIP had several months where their numbers
were low because they were moving out of the old shelter and into the new one. These
two factors combined account for the difference between our estimate and the actual
number of persons served.
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APPENDIX A
DEVELOPMENT PROCESS
FYgzi CHAS ANNUAL PERFORMANCE REPORT
Planning and Community Development staff completed the draft of the FY94 Annual Performance
Report (APR). The APR was also reviewed by other City departments.
A 30 day comment period began on September 22, 1995, when the draft was published and
distributed for public review and comment. On October 5, 1995, a public hearing notice was
published for the October 10, 1995, public hearing held by the City Council. Approval of the APR
by the City Council took place on October 24, 1995. Final revisions and the Summary of Public
Comments (see Appendix B) were comp}eted after the public hearing.
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APPENDIX B
SUMMARY OF PUBLIC COMMENTS
AND SUBSEQUENT ACTIONS TAKEN
At the October 10, 1995, City Council meeting a public hearing on the Annual Performance
Report (APR) for fiscal year 1994 was conducted. The following is a summary of the comments
received.
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APPENDIX C
HUMAN RIGHTS COMMISSION
GENERAL RESPONSIBILITIES
The Human Rights Commission is a quasi judicial commission composed of nine members
appointed by the City Council. Each member serves a three-year term. The Human Rights
Commission is responsible for enforcing the City's non-discrimination ordinance which prohibits
discrimination in the areas of employment, housing. public accommodations and credit.
Enforcement duties include investigating complaints of discrimination, determining the merits of
the allegations and, in cases when discrimination has been determined, Commissioners attempt
to effectuate a disposition that is agreeable to the complainant, the respondent and the
Commission. The Human Rights Commission is responsible for and is very committed to the task
of educating the community on human rights issues. The Commission also serves in an advisory
capacity to the City Council. The Commissioners keep informed on civil rights laws.
Commissioners come from a variety of backgrounds, including the fields of education, business,
health care, law and the general workforce. The Commission and the City Council strive to
maintain diverse representation on the Commission.
The Commission meets the fourth Monday of each month at 7:00 p.m. in the Civic Center Lobby
Conference Room. The meeting location is accessible to persons with disabilities.
ACCOMPLISHMENTS IN FISCAL YEAR 1994
Education and Outreach Activities
Participated in several speaking engagements and artended functions held at the University,
advocacy groups and business community.
Began sending letters and literature to rental property owners concerning housing
nondiscrimination laws.
Provided notice to local restaurants and bars that featuring specials based on gender, such as
"ladies' night specials," is in violation of the Iowa City ordinance.
Held the tenth annual awards breakfast, at which time three awards were given, recognizing an
individual, a person representing a service organization, and a business for their significant
contributions to the field of human rights. Award recipients were 1 ) Agnes Kuhn - Isabel Turner
Award, 2) Jason Chen - Individual in a Service Organization. and 3) Iowa State Bank - local
business,
Held an Essay Awards Contest to commemorate Black History and Women's History Month.
Sponsored a brown bag luncheon presentation on "Gangs in Iowa" by Professor Adrian Wing.
Training.
Commissioners received conciliation and commissioner training.
Projects:
A major project of the Commission is the revision of the Human Rights Ordinance. An attempt is
being made to gain substantial equivalency with HUD.
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A video training presentation on Preventing Sexual Harassment in the Work Place is available
to the community. Public forums on human rights issues and programming on cable TV are
ongoing. Topics included Women's Human Rights Issues, Programs Commemorating Women's
History and Black History, and Fair Housing Open Forum. An extensive array of publications are
available on human rights issues and the law. Brochures and flyers are disseminated in the
community. Advertisements are also done. Referral, advice, and consultation services are
provided by the Coordinator.
Complaint Activity:
- Formal complaints filed - 25
AREAS NUMBER BASIS NUMBER
Employment 21 Sex 9
Public Accommodation 3 Race/Color/National Origin 8
Credit 1 Religion 3
Sexual Orientation 2
Disability 2
Age 5
Note: Some complaints were filed based upon multiple protected categories.
PLANS FOR FISCAL YEAR 1995
Expedite conciliation of complaints and complaint processing.
Continue to solicit and conduct speaking engagements with Iowa City businesses and civic
organizations and public school system.
Expand outreach efforts via cable, publications and media.
Provide "Preventing Sexual Harassment" Training and Video Presentation to community.
Continue to hold Annual Awards Breakfast.
COMMISSION MEMBERS
Alison Ames Galstad Chairperson
Jason Chen
Mel Dautremont
Ken Gatlin
Rick Graf
Patricia Harvey
Sara E. Mehlin
Dorothy Paul
Ann Shims
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