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HomeMy WebLinkAbout2005-05-17 Ordinance 58 Prepared by: John Yapp, PCD, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5247 (REZ05-00004) ORDINANCE NO. AN ORDINANCE CONDITIONALLY CHANGING THE ZONING DESIGNATION OF APPROXIMATELY 54 ACRES FROM PUBLIC/INTENSIVE COMMERCIAL (P/CI-1) ZONE TO COMMUNITY COMMERCIAL (CC-2) ZONE FOR AVIATION COMMERCE PARK WHEREAS, the City of Iowa City has initiated a rezoning action for Aviation Commerce Park, approximately 54 acres of property located on the north side of the Iowa City Municipal Airport; and WHEREAS, a retail commercial development has been proposed for the property, and for retail commercial development to be permitted, the zoning designation must be changed to Community Commercial (CC-2) zone; and WHEREAS, the Planning and Zoning Commission found that all the properties abutting Aviation Commerce Park are either commercial or Airport proper[les, and changing from Intensive Commercial to Community Commercial will not have a negative impact on adjacent properties; and WHEREAS, the Planning and Zoning Commission has recommended conditions related to landscaping, pedestrian connections, road improvements, and building design in order to be consistent with the retail appearance and site design policies enumerated in the South Central District Plan; and WHEREAS, Iowa Code Section 414.5 (2005) provides that the City of Iowa City may impose reasonable conditions on granting an applicant's request over and above existing regulations, in order to satisfy public needs caused by the rezoning request; and WHEREAS, the owner acknowledges that certain conditions and restrictions are reasonable, to ensure the eventual development of the property is attractive and accessible, provides adequate infrastructure, and is designed to facilitate reuse of large commercial structures. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: SECTION I. APPROVAL. Subject to the terms and conditions of the Conditional Zoning Agreement, attached hereto and incorporated by reference herein, the property described below is hereby reclassified as follows: All of Lots 1-17, Outlot A, and a portion of Outlot C of the North Airport Development Subdivision recorded in Plat Book 43, Page 182, Johnson County Recorders office; which is a portion of the Northeast Quarter of Section 21 and the Southeast Quarter of Section 16, Township 79 North, Range 6 West of the Fifth Principal Meridian, Iowa City, Johnson County, Iowa, further described as follows: Beginning at the North Quarter Corner of Section 21; Thence N 00035'32'' E 984.65 feet along the west line of the North Airport Development; Thence N 51°23'44" E 59.53 feet to the Southwesterly Right of Way of Ruppert Road; Thence Northwesterly 77.16 feet along a curve, of the Ruppert Road Right of Way, with a radius of 409.92 feet, concave Northeasterly, a central angle of 10047'06'', and a chord 77.05 feet in length which bears N 36°11'29" W; Thence N 38o44'54'' VV along said Right of Way 94.65 feet; Thence N 00035'32'' E along said Right of Way 140.32 feet to the North line of the North Airport Development; Thence S 89°29'19'' E along said North line 1041.99 feet; Thence N 89°41'00" E along said North line 636.50 feet; Thence N 89043'00'' E along said North line 491.70 feet; Thence S 16029'25'' E along the East line of Lot 5, North Airport Development, 456.20 feet to the Southeast Corner of Lot 5; Thence S16°32'04' E 217.42 feet to the South line of the North Airport Development; Thence S 70°15'04" W along said South line 1033.22 feet; Thence S 73019'46, W along said South line 1321.45 feet; Thence N 55055'22'' W 93.05 feet to a point on the West line of the Northeast Quarter of Section 21; Ordinance No. Page 2 Thence N 1°05'08'' E 27.24 feet along the West line of the Northeast Quarter of Section 21 to the Point of Beginning. Said parcel contains 53.57 acres more or less. Lots 1-4 of the North Airport Development have been subdivided into the' North Airport Development Part Two which is recorded in Plat 45 Page 91 of the Johnson County Recorders Office. SECTION II. ZONING MAP. The Building Inspector is hereby authorized and directed to change the Zoning Map of the City of Iowa City, Iowa to conform to this amendment upon final passage, approval, and publication of this Ordinance as provided by law. SECTION Ill. CONDITIONAL ZONING AGREEMENT. Following final passage and approval of this Ordinance, the Mayor is hereby authorized and directed to sign, and the City Clerk to attest, the Conditional Zoning Agreement attached hereto and incorporated by reference herein. SECTION IV. CERTIFICATION AND RECORDING. Upon passage and approval of the Ordinance and after execution of the Conditional Zoning Agreement, the City Clerk is hereby authorized and directed to certify a copy of this Ordinance and the Conditional Zoning Agreement and to record the same at the Office of the County Recorder of Johnson County, Iowa, at the owner's expense, all as provided by law. SECTION V. REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION VI. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION VII. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and publication, as provided by law. Passed and approved this day of ,20.__ MAYOR ATTEST: CITY CLERK Approved by Cl~y ,~ffor~ey's bffic~-' ppdadm/ord/rezO5~OOO4.doc Prepared by: John Yapp, PCD, 410 E. Washington Street, Iowa City, IA 52240; 319.356.5247 (REZ05-00004) CONDITIONAL ZONING AGREEMENT THIS AGREEMENT is made by and between the City of Iowa City, Iowa, as Owner (hereinafter "Owner"), and the City of Iowa City, a municipal corporation and regulatory authority (hereinafter "City"), which expression shall include their successors in interest and assigns; and WHEREAS, the Owner is legal title holder of property generally located on the north side of the Iowa City Municipal Airport along Ruppert Road, known as Aviation Commerce Park; and WHEREAS, in recommending that Aviation Commerce Park be rezoned to Community Commercial, CC-2 zone, the Planning and Zoning Commission recommended conditions to ensure development is consistent with the retail commercial appearance and site design policies in the South Central District Plan; and WHEREAS, the conditions recommended by the Planning and Zoning Commission are related to landscaping, pedestrian connections, street infrastructure, and building design standards to facilitate reuse of large commercial structures and to moderate the sense of scale of large commercial structures; and WHEREAS, Iowa Code Section 414.5 (2005) provides that the City of Iowa City may impose reasonable conditions on granting a rezoning request, over and above existing regulations, in order to satisfy public needs that are directly caused by the requested change in zoning; and WHEREAS, the Owner agrees to use this property in accordance with the terms and conditions of a Conditional Zoning Agreement. NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows: 1. The City of Iowa City is the owner and legal title holder of property legally described as follows: All of Lots 1-17, Outlot A, and a portion of Outlot C of the North Airport Development Subdivision recorded in Plat Book 43, Page 182, Johnson County Recorders office; which is a portion of the Northeast Quarter of Section 21 and the Southeast Quarter of Section 16, Township 79 North, Range 6 West of the Fifth Principal Meridian, Iowa City, Johnson County, Iowa, further described as follows: Beginning at the North Quarter Corner of Section 21; Thence N 00o35'32" E 984.65 feet along the west line of the North Airport Development; Thence N 51°23'44" E 59.53 feet to the Southwesterly Right of Way of Ruppert Road; Thence Northwesterly 77.16 feet along a curve, of the Ruppert Road Right of Way, with a radius of 409.92 feet, concave Northeasterly, a central angle of 10°47'06'', and a chord 77.05 feet in length which bears N 36°11'29" W; Thence N 38°44'54" W along said Right of Way 94.65 feet; Thence N 00o35'32'' E along said Right of Way 140.32 feet to the North line of the North Airport Development; Thence S 89°29'19" E along said North line 1041.99 feet; Thence N 89°41'00" E along said North line 636.50 feet; Thence N 89043'00'' E along said North line 491.70 feet; Conditional Zoning Agreement (REZ05-00004) Page 2 Thence S 16°29'25'' E along the East line of Lot 5, North Airport Development, 456.20 feet to the Southeast Corner of Lot 5; Thence S16°32'04'' E 217.42 feet to the South line of the North Airport Development; Thence S 70°15'04" W along said South line 1033.22 feet; Thence S 73°19'46' W along said South tine 1321.45 feet; Thence N 55°55'22" W 93.05 feet to a point on the West line of the Northeast Quader of Section 21; Thence N 1°05'08'' E 27.24 feet along the West line of the Northeast Quarter of Section 21 to the Point of Beginning. Said parcel contains 53.57 acres more or less. Lots 1-4 of the North Airport Development have been subdivided into the North Airport Development Part Two which is recorded in Plat 45 Page 91 of the Johnson County Recorders Office. 2. The Owner acknowledges that Iowa Code Section 414.5 (2005) provides that the City may impose reasonable conditions on granting a rezoning ~equest, over and above.the existing regulations, in order to satisfy public needs caused by the requested change. 3. In consideration of the City's rezoning the subject property, the Owner agrees that development of the subject property will conform to all other requirements of the Zoning Chapter, as well as the following conditions: A. As part of the public improvements associated with the final plat, the construction plans will show sidewalks to be installed on Ruppert Road from Highway 1 south to the public sidewalks along Ruppert Road in the subject property, including a pedestrian crosswalk and pedestrian signals at the Ruppert Road/Highway 1 intersection. B. Pedestrian walkways will be provided to connect the principal buildings on each lot to each other and to the public sidewalk system, to be identified and reviewed as part of the site plan review process for each lot. C. Landscaping is required to screen parking areas, loading docks, and outdoor storage and dumpsters from view of the public right-of-way. Areas of the site not taken up by required paving or building area are to be landscaped. A landscaping plan meeting these goals is required to be submitted and reviewed as part of the site plan review process for each lot. D. The preliminary plat and construction plans associated with the final plat will indicate necessary improvements to Ruppert Road, the Ruppert Road/Highway 1 intersection, and the Ruppert Road/Riverside Drive intersection. E. In order to facilitate adaptive reuse of large retail commercial structures, to moderate the scale of large buildings, and to ensure a compatible appearance with other commercial shopping centers, any commercial structure over 50,000 square feet in size will comply with the following design standards: 1. Fa(;ades and exterior walls: a. For fa~;ades that face public streets and/or include public entrances, fa(;ades over 100 feet in length shall incorporate wall projections or recesses a minimum of three feet in depth for a minimum of 20 contiguous feet, within each 100 feet of fa(;ade length, and shall extend over a minimum of 20% of the fa(;ade. No uninterrupted length or fa(;ade may exceed 100 feet. b. For fa(;ades that face public streets or include public entrances, features such as arcades, display windows, entry areas, awnings, or similar features, must be used along at least 60% of the facade. Conditional Zoning Agreement (REZ05-00004) Page 3 2. Detail features: Buildings shall include detail and features that provide visual interest, reduce the perception of the mass of the building, and provide a cohesive pattern to the building. The building fac.,.ade that faces a public street or includes a public entrance shall include no less than three of the elements listed below. At least one of these elements shall repeat horizontally. All these elements shall repeat at intervals of no more than 50 feet. It is encouraged that these visual patterns are cohesive with the articulation of the fa(;ade: a. Color change b. Texture change c. Material module change d. Expression of architectural or structural bay through a change in plane no less than 12 inches in width, such as an offset, reveal, or projection. 3. Roofs: Roofs shall have no less than two of the features listed below: a. Parapets concealing fiat roofs and rooftop equipment, such as HVAC units from public view. The average height of such parapets shall not exceed 15% of the height of the supporting wall and at no point shall exceed one-third of the height of the supporting wall. Such parapets shall feature a cornice treatment. b. Overhanging eaves, extending no less than three feet past the supporting walls. c. Sloping roofs that do not exceed the average height of the supporting walls. d. Three or more roof slope planes. 4. Materials: a. The building materials shall be predominantly quality exterior building materials, including brick, masonry, stone, stucco, or textured concrete masonry units, "Predominantly" is defined as at least 75% of the exterior of the entire building, but not necessarily of each building wall. b. The following exterior building materials shall be used minimally: i. Smooth-faced concrete block ii. Pre-fabricated steel or vinyl panels or sheets 5. Entryways: Each principal building shall have a clearly defined, highly visible customer entrance with no less than three of the features listed below. Where additional stores are located in the principal building, each store shall have at least one exterior customer entrance with no less than three of the following features: a. Canopyor portico b. Overhang c. Recess/projection d. Arcade e. Raised cornice parapet over the door Conditional Zoning Agreement (REZ05-00004) Page 4 f. Archway g. Outdoor patio h. Display window i. Tile work and moldings that are integrated into the building structure and design j. Integral planters or wing walls that incorporate landscaped areas and/or places for sitting 4. The Owner acknowledges that the conditions contained herein are reasonable conditions to impose on the land under Iowa Code Section 414.5 (2005) and that said conditions satisfy public needs caused by the requested zoning change. 5. The Owner acknowledges that in the event the subject property is transferred, sold, redeveloped, or subdivided, all redevelopment will conform with the terms of this Conditional Zoning Agreement. 6. The Padies 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 assigns of the Parties. 7. The Owner acknowledges that nothing in this Conditional Zoning Agreement shall be construed to relieve the owner or future owners from complying with all applicable local, state, and federal regulations. 8. The Parties agree that this Conditional Zoning Agreement shall be incorporated by reference into the Ordinance rezoning the property; and that upon adoption and publication of the Ordinance, this Agreement shall be recorded in the Johnson County Recorder's Office at the City's expense. Dated this day of ,2005. CITY OF IOWA CITY AS OWNER By Ernest W. Lehman, Mayor Attest Marian K. Karr, City Clerk Approved by: City Attorney's Office Conditional Zoning Agreement (REZ05-00004) Page 5 CITY OF IOWA CITY AS REGULATORY AUTHORITY AND MUNICIPAL CORPORATION By Ernest W. Lehman, Mayor Attest Marian K. Karr, City Clerk Approved b/y~/ / ~ City Attorney's ~[fi~e~' CITY OF IOWA CITY ACKNOWLEDGEMENT: STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this day of , A.D. 20 , before me, the undersigned, a notary public in and for the State of Iowa, personally appeared Ernest W. Lehman and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and 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 its City Council; and that the said Mayor and City Clerk as such officers acknowledged that the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Notary Public in and for the State of Iowa My commission expires: CITY OF IOWA CITY ACKNOWLEDGEMENT: STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this day of , A.D. 20 , before me, the undersigned, a notary public in and for the State of Iowa, personally appeared Ernest W. Lehman and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and 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 its City Council; and that the said Mayor and City Clerk as such officers acknowledged that the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Notary Public in and for the State of Iowa My commission expires: ppd adrn/agt/CZA-REZ05-00004.doc City of Iowa City MEMORANDUM Date: April 15, 2005 (For April 21 Planning and Zoning Commission meeting) To: Planning and Zoning Commission From: John Yapp, Associate Planner Re: Proposed amendment to South Central District future land use map Recently the City initiated a rezoning of Aviation Commerce Park from P/CI-1, Intensive Commercial, to CC-2, Community Commercial. The 1997 Iowa City Comprehensive Plan identifies the Aviation Commerce Park property as General Commercial The South Central District Plan is more specific, and identifies the property as Intensive or Highway Commercial on the future land use map. This reflects the thinking at the time Aviation Commerce Park was being established, that intensive commercial businesses, possibly with some connection to Airport operations, would be attracted to and be appropriate on the Aviation Commerce Park property. Since that time, none of the Airport Commerce Park properties have been leased or sold. The City has received a purchase offer for part of the property from a large retailer. For retail use to be permitted on the property, it needs to be rezoned from Intensive Commercial (C1-1), to Community Commercial (CC-2). For this proposed rezoning to be consistent with the South Central District Plan future land use map, it should be amended reflect Retail / Community Commercial land use for the property, and associated changes to the text of the plan should reflect this change as well. Staff finds that, in this case, changing the intended use of the Aviation Commerce Park property on the South Central District land use map from Intensive or Highway Commercial to Retail / Community Commercial is not a significant change. There are both CC-2- and Cl-l-zoned properties bordering Aviation Commerce Park. Infrastructure is adequate for commercial development in both zones. The improvements recommended in the SCD Plan related to retail development, including pedestrian, landscaping and other appearance issues, would also apply to Aviation Commerce Park. The fact that Aviation Commerce Park has direct access to Highway 1 and Riverside Drive, both arterial streets, mitigates any traffic concerns that retail development may generate more traffic than intensive commercial development. STAFF RECOMMENDATION: Staff recommends the South Central District Plan future land use map be amended to show the Aviation Commerce Park property, on the north side of the airport, as Retail / Community Commercial, and that the South Central District Plan text be changed to reflect the map change as follows: l.-.tc.-.slve Commercial. Land available in the western reaches of this subarea with faidy direct access to Highway 1 and near Highway 218 provides opportunities for large lot development. These large properties would be suitable for intensive commercial uses with extensive outdoor storage needs. Entranceway aesthetics need to be considered as these intensive commercial properties develop and redevelop, l,mtec~,ive Commercial development and zoning are planned for most of the 54-acre Airport North Commercial Park. The City plans to provide streets and utilities for the new business park, and the Airport Commission will enter into long-term leases with developers, who may further divide the property for businesses that can function as freestanding entities or provide support services for other businesses and industries in the South Central District. Airport-related businesses and a science center are being encouraged to locate in this new commercial park. (Page 24, SCD Plan) Ret~ll C--.mmerc!~!. As the east retail area of this subarea is upgraded, encouraging intensive commercial businesses located on or east of the Westport Plaza property to relocate to C1-1 zones to the south or west could result in a more compatible mix of traffic and commercial shops, offices, restaurants and residential uses in the area. To address the appearance of the built-up commercial area along Highway 1, entranceway improvements, including upgrading landscaping, creating pedestrian access, introducing a consistent, attractive lighting design and minimizing signs and utility poles within the streetscape, should be considered... (Page 24, SCD Plan) Plan for i¢~msive commercial uses to be established in the Airport North Commercial Park, and industrial uses in the south portion of the airport property. (Page 32, SCD Plan) ATTACHMENTS: 1. Proposed South Central District Plan future land use map STAFF REPORT To: Planning and Zoning Commission Prepared by: John Yapp Item: REZ05-00004 Aviation Commerce Park Date: April 7, 2005 GENERALINFORMATION: Applicant: City of Iowa City Planning and Community Development 410 E. Washington Street Iowa City, IA 52240 Phone: 356-5230 Property Owner: City of Iowa City Purpose: To allow the Aviation Commerce Park property to develop as a retail-oriented shopping center. Location: Ruppert Road area, south of Highway 1, north of the Iowa City Municipal Airport. Property Size: Approximately 54 acres Existing Land Use and Zoning: Undeveloped; P/CI-1 Surrounding Land Use and Zoning: North: Commercial, C1-1 South: Public Airport East: Commercial; CC-2 West: Commercial; CI-I& CC-2 Comprehensive Plan: The Comprehensive Plan identifies this property as General Commercial. The South Central District Plan identifies this property as Intensive or Highway Commercial. File date: March 10, 2005 45-day limitation period: April 24, 2005 BACKGROUNDINFORMATION: The Aviation Commerce Park was subdivided in 2000, and infrastructure was constructed to allow for commercial development on property along the north side of the Iowa City Municipal Airport. This area is currently zoned P/CI-1, Intensive Commercial. The Intensive Commercial zoning was established because it was thought to be a zone that could attract airport-related service and storage businesses, and other similar uses that do not require visibility from Highway 1. Since the Aviation Commerce Park was established, none of the lots have been sold or leased. 2 Recently the City Council agreed to sell a portion of the Aviation Commerce Park to a large retailer, which would likely make the remainder of the Aviation Commerce Park attractive for other retail-related businesses. For retail businesses to be permitted, the Aviation Commerce Park is proposed to be rezoned to CC-2, Community Commercial. ANALYSIS: Comprehensive Plan The general Comprehensive Plan, adopted in 1997, identifies properties on the south side of Highway 1, including the Aviation Commercial Park, as General Commercial. The South Central District (SCD) Plan, adopted in 2000, reflects the current zoning designation of the Aviation Commerce Park and identifies it as Intensive or Highway Commercial on the future land use map. The SCD Plan reflects the thinking at the time Aviation Commerce Park was established, and states "Intensive commercial development and zoning are planned for most of the 54-acre Airport North Commercial Park..." To be consistent with this proposed rezoning from C1-1 to CC-2, the South Central District Plan land use map should be changed to reflect Retail / Community Commercial land use for this property, and incidental changes to the text of the SCD Plan are necessary to reflect the change in the map. A separate memo and recommendation for the change to the South Central District Plan map and text, to be consistent with the intent to use this property for a retail development, will be forwarded to the Commission for its April 21 meeting. Transportation With a rezoning to CC-2, Community Commercial, this property has the potential to attract and generate more vehicular and pedestrian traffic than would be expected with intensive commercial development. There is an existing traffic signal serving the Highway 1 / Ruppert Road intersection, including turn lanes on Highway 1. As part of the purchase agreement for the property, the City is requiring that any realignment of Ruppert Road will be done at the buyers expense; an enhanced left turn lane from Ruppert Road to Highway 1 will be constructed; and $100,000 will be contributed for any other off-site improvements required, including items such as pedestrian facilities, turn lanes or possible signalization of the Ruppert Road / Riverside Drive intersection, or other improvements necessitated as a consequence of developing this property. As this is City property until sold, any other off-site improvements beyond the $100,000 cost would be done at the city's expense. Public Transit Iowa City Transit provide access to the Highway 1 corridor in this area. As part of the Westport Plaza route, bus stops are currently located at the Ruppert Road / Cub Foods access drive, and on both the north and south sides of the Ruppert Road / Highway 1 intersection. The bus needs to travel back onto Highway 1 from Ruppert Road to serve multi-family properties with frontage on Highway 1, north of the Aviation Commercial Park. According to the Iowa City Transit Manager, if accommodations are made for pedestrian access from multi-family properties on the north side of Ruppert Road, the bus route may be modified to more directly serve the Ruppert Road corridor, particularly if retail commercial development occurs. Because retail commercial development U:\rezonings~Aviation commercial park rezoning.doc attracts more pedestrian traffic, there is a rationale for pedestrian routes from the bus stops to the commercial destinations to be established. Pedestrian Connections The SCD Plan notes "pedestrian walkways are virtually nonexistent in this subarea." Besides needing pedestrian access to bus stops, the SCD Plan notes that pedestrian access is an issue with retail commercial development. The large multi-family development on the north side of Highway 1 is a pedestrian generator, as is the surrounding residential neighborhood on the north side of Highway 1. The Southwest District Plan, in addressing how commercial properties on the south side of Highway 1 are disconnected from residential areas on the north side of Highway 1, states "there is a lack of safe pedestrian and bicycle facilities along and across Highway 1. Constructing sidewalks and adding pedestrian signals at signalized intersections should be a priority." Staff recommends that pedestrian connections from the Ruppert Road / Highway 1 intersection along Ruppert Road and to the entrance to commercial buildings to be developed in the Aviation Commerce Park be required. Pedestrian routes within the public right-of-way will be identified with a re-subdivision of the property. Staff recommends pedestrian routes from the public right-of-way to each commercial building be identified as part of the site plan submittal as each lot is proposed for development. Landscaping As noted above, the SCD Plan recommends that landscaping be upgraded as part of retail commercial redevelopment. Because development of Aviation Commerce Park for retail development will have an impact on traffic flow and the redevelopment potential of other properties in this vicinity, landscaping needs to be considered. In addition to the parking lot and right-of-way trees normally required, staff recommends that area not taken up by buildings, parking or vehicular or pedestrian use areas be landscaped with trees, shrubs or other plant materials, and that a landscaping plan sheet be submitted with each site plan for properties within the Aviation Commerce Park. The landscaping plan should address screening of parking areas, loading docks, outdoor storage and dumpsters. While this requirement would duplicate some existing landscaping standards, it goes a step further by requiring some attention to landscaping be paid to all areas not used by the building or required parking, loading and access paving. This will help improve the hppearance generally of this commercial corridor. Aviation Commerce Park / Airport Commission When the Aviation Commerce Park was first established, the intention was to try to attract uses that had some direct or indirect relationship to the airport or other businesses in the vicinity. This has not occurred. The Airport Commission has recommended approval of the City selling a portion of this property to a retail developer. Summary The City is initiating the rezoning of Aviation Commerce Park from C1-1, Intensive Commercial to CC-2, Community Commercial in order to facilitate the sale of a portion of the property to a large retailer, and development of the remainder of the property with retail uses. Because the U:\rezonings~Aviation commercial park rezoniog.doc South Central District Plan map identifies this property as Intensive or Highway Commercial, it needs to be changed in conjunction with this rezoning. In approximately five years, no lots in Aviation Commerce Park have been able to be leased or sold for intensive commercial development. Consistent with the SCD Plan policies regarding retail commercial development, staff is recommending a Conditional Zoning Agreement related to pedestrian connections and landscaping expectations. Because the property is owned by the City, the Conditional Zoning Agreement will be an agreement between the City and itself, and will be passed on to future buyers of the property. STAFF RECOMMENDATION: Staff recommends REZ05-00004 a request to rezone approximately 54 acres from P/CI-1, Intensive Commercial to CC-2, Community Commercial for property located along Ruppert Road, be approved, subject to a Conditional Zoning Agreement addressing: 1. Sidewalks to be installed on Ruppert Road from Highway 1 south to a sidewalk system in Aviation Commerce Park, including pedestrian crosswalks and pedestrian signals at the Ruppert Road / Highway 1 intersection. 2. Pedestrian walkways to be provided between the principal buildings on each lot and the public sidewalk system, to be identified and reviewed as part of the site plan review process for each lot. 3. A landscaping plan being required as part of the site plan review process, showing how parking areas, loading docks, outdoor storage, dumpsters are screened from view, and the landscaping of other areas of the site not taken up by required paving or building areas. 4. The preliminary plat indicating necessary improvements to the Ruppert Road / Highway 1 intersection and the Ruppert Road/,,Riverside Drive intersection. Approved by:--7~/~'~ ~ ' Karir/FranklinDep,artment oi pDliraenCn~°nr~ and Community Development ATTACHMENTS: 1. Location map U:~rezonings~Aviation commercial park rezoningdoc i~l r~' ( April 15, 2005 DESIGN RESOURCES ~N c Karen Franklin City of Iowa City ................ 410 E. Washington St. ~A~, ~v~,Nc~ Iowa City, IA 52240 Ph: 319-356-5248 Fax: 319-356-5217 Re: WaI-Marl Iowa City, IA Arc Project No. 04208 Dear Karen, This letter documents WaI-Mart's approach to selling or leasing the existing store. This information is provided by WaI-Mart's Real Estate Manager, Brandi Lewis. The existing building is currently scheduled to be released in WaI-Mart's next expedited sale. The building is listed with Rockwood Realty. Full scale national marketing will begin Monday, April 18, 2005. Informal discussions are already occurring in regards to the sale of the building. The City of Iowa City can expect to see the building advertised through several forums. Online marketing will be the primary medium. Signs at the site and direct mail marketing to approximately 2,500 recipients wiJl also be used. Wal-Mart wiJl also publish a couple of Wall Street .Journal ads which are done to attract REIT's and real estate investors in time for the International Council of Shopping Centers Convention in Las Vegas this May. If it is necessary Wal-Mart will post an ad in the local paper. Also, Rockwood Realty has stated: "important to note that all local brokers will be solicited to promote the property and bring in offers; they are encouraged to cooperate in the sale and be eligible to share in a sales commission by representing a successful offer. Our marketing effort consists of local, regional and national outreach and promotion." The property wiJl not be divided up and sold to different owners, but will be offered to retail re-developers who may very possibly divide the total space into several separate spaces for lease to multiple retailers. Should you have any questions please feel free to contact me directly at (8151 484-4300. Sincerely, .~seph R. Altenhoff, P. E. Project Manager C: Keith King - Wal-Mart Stores, Inc. Brandi Lewis - Wal-Mart Stores, Inc. 1475 8 PERRYVILLE ROAD ROCKFORD, IL 61108 VOICE: 815 484-4300 FAX;815 484 4303 www alcdesign corn City of Iowa City MEMORANDUM Date: April 15, 2005 To: Planning and Zoning Commission From: John Yapp, Associate Planner Re: Design standards for large retail establishments At your April 4 meeting, the Commission asked staff to reseamh and propose design and appearance standards for large-scale retail development. This request was in response to the rezoning application initiated by the City to rezone Aviation Commerce Park from Intensive Commercial (C1-1) to Community Commercial (CC-2) to allow a portion of Aviation Commerce Park to be sold to a large retailer. The concerns raised by the Commission included wanting large retail buildings to be designed to facilitate adaptive reuse when the main tenant leaves, to include features that moderate the scale of large retail buildings, and to make sure the design is attractive and compatible with the appearance of other nearby commercial shopping centers such as Gateway One Plaza. In preparing this information, staff reviewed information and ordinances provided by Commission Chair Brooks and other sources, including information from Fort Collins, CO, Tucson, AZ, Madison, WI, Sun Prairie, WI, Palm Bay, FL, and Asheville, NC. There are many other cities that have also adopted or are considering adopting similar standards, and many large retail developments have been constructed using design standards adopted by cities. The standards outlined below are similar to standards that have been successfully used in other cities. LARGE RETAIL COMMERCIAL STANDARDS The large retail commercial standards apply to retail commercial buildings over 50,000 square feet in size. The intent of these standards is to facilitate adaptive reuse of large retail commercial structures, to moderate scale of large buildings, and to ensure consistent appearance with other shopping center developments. Facades and exterior walls 1. For facades that face public streets and/or include public entrances, facades over 100 feet in length shall incorporate wall projections or recesses a minimum of three feet in depth for a minimum of 20 contiguous feet, within each 100 feet of facade length, and shall extend over a minimum of 20% of the fa(;ade. No uninterrupted length or fa(;ade may exceed 100 feet. 100 feet U:~rezoningsWvlaflon park design standards.doc 2. For facades that face public streets or include public entrances, features such as arcades, display windows, entry areas, awnings or similar features must be used along at least 60% of the facade. Graphic courtesy of Fort Collins, CO Detail features Buildings shall include detail and features that provide visual interest, reduce the perception of the mass of the building, and provide a cohesive pattern to the building. The building fa(;ade that faces a public street or includes a public entrance shall include no less than three of the elements listed below. At least one of these elements shall repeat horizontally. All elements shall repeat at intervals of no more than 50 feet. It is encouraged that these visual patterns are cohesive with the articulation of the fac,,ade. 1) Color change 2) Texture change 3) Material module change 4) Expression of architectural or structural bay through a change in plane no less than 12 inches in width, such as an offset, reveal or projection. off~et~ projeoflng db~ reveals structural bay layout Graphic coudesy of Foal Collins, CO Roofs Roofs shall have no less than two of the features listed below: 1) Parapets concealing flat roofs and rooftop equipment such as HVAC units from public view. The average height of such parapets shall not exceed 15% of the height of the supporting wall and at no point shall exceed 1/3 of the height of the supporting wall. Such parapets shall feature a cornice treatment. U:\rezonings~Aviation park design standards.doc 2) Overhanging eaves, extending no less than three feet past the supporting walls. 3) Sloping roofs that do not exceed the average height of the supporting walls. 4) Three or more roof slope planes. Materials 1. The building materials shall be predominantly quality exterior building materials, including brick, masonry, stone, stucco, or textured concrete masonry units. Predominantly is defined as at least 75% of the exterior of the entire building, but not necessarily of each building wall. 2. The following exterior building materials shall be used minimally. · Smooth-faced concrete block · Pre-fabricated steel or vinyl panels or sheets Entryways Each principal building shall have a clearly defined, highly visible customer entrance with no less than three of the features listed below. Where additional stores are located in the principal building, each store shall have at least one exterior customer entrance with no less than three of the following features: 1) Canopy or portico 2 Overhang 3 Recess / projection 4 Arcade 5 Raised cornice parapet over the door 6 Archway 7 Outdoor patio 8 Display window 9 Tile work and moldings that are integrated into the building structure and design 10) Integral planters or wing walls that incorporate landscaped areas and/or places for sitting U:\rezonings~Aviation park design standards.doc Date: May 11, 2005 To: City Council From: Eleanor M. Dilkes, City Attorney Re: Sale and Rezoning of North Airport Development property (a/k/a Aviation Commerce Park) As you will recall, Wal-Mart's obligation to proceed with the purchase of approximately 21.76 acres of North Airport Development property is contingent on a number of things, including the rezoning of the property from "Intensive Commercial Zone (C1-1)" to "Community Commercial Zone (CC-2)" to allow for retail business use. Pursuant to the purchase agreement, City Staff has proceeded with an application forsuch rezoning. The Planning & Zoning Commission has recommended the rezoning be approved subject to conditions which would require the installation of sidewalks, pedestrian walkways, landscaping and unspecified roadway improvements, as well as building design criteria for large retail buildings (which would include Wal-Mart's building). These conditions are set forth in detail in the proposed Conditional Zoning Agreement contained in your packet. The purpose of this memorandum is to inform you that the rezoning contingency of the Wal-Mart purchase agreement will not be met if the rezoning is subject to these conditions. Wal-Mart will not be legally obligated to proceed with the purchase if the rezoning is made conditional. cc: Stephen J. Atkins, City Manager Dale Helling, Assistant City Manager Airport Commission Karin Franklin, Director, Planning & Community Development Steve Nasby, Coordinator, Community & Economic Development Susan Dulek, Assistant City Attorney Mitch Behr, Assistant City Attorney Ms. Sonia Etfinger 230 Magowan Ave Iowa City, IA 52246 fi[3CF , ..... Page 13A o p' on ' !,~, :: l~: ii Iowa City Press-Citizen ; Rob Bignell, editorial page editor . · * , Phone: 337-3181 ~ *:'//~ E-mail: opinion@press-citizen.com Wal-Mart? Not in my name On Tuesday, the Iowa ~ school boards and city ~h~r~ yo~r i~e~ both newcompardes. City Council will hold a pub- councils and have formed Wal-Mart also has given lic hea.qng on the rezoning ~ GalnJ the backbone of small · ff you'd like to submit up on its "made in America" of 54 acres of city-owned SaMers t~w~s since this country's a guest opinion that campaign since it is now land north of the Iowa City earliest days. leading the race to China, as addresses local issues Airport. That would allow Guest Every dollar that we it moves production of the 21.7 acres to be sold to Wal- ,~ Opinion spend in a Wal-Mart any- of political and social goods it sells at an alarming Mart for the site of a new where is driving another significance, contact ram. Again, other corpora- supercenter, cial" so that it could build a nail into the coffin of small- the editorial page editor tions must follow to keep er businesses everywhere, their prices lower. All of this Earlier this spring, the giant porn palace, which "So what?" you might ask. at opinion@press-citizen. council voted 5-2 for a con- contributes to America's ditional sale of this land to would be perfectly legal These small town Wal- com. Submissions can not $150 billion trade deficit Wal-Mart for $3.1 million, under the "intensive com- Mart's wouldn't be success- be anonymous, however, with China last year, the but the land must be mercial' zoning. Does any- ful if people didn't want ramifications of which are rezoned from "intensive one think that ff this land them. That is the heart of detailed in the Dec. 6, 2004, commercial" to "community use change was presented the evil genius of Wal-Mart. health benefits. Aiming at Business Week cover story. commercial" for the sale to to the council that it would They are part of a culture Wal-Mart, several states are Wal-Mart is China's eighth be finalized. The Planning be saying that we can only that has convinced people considering legislaUon that largest trading partner -- and Zoning Commission has consider the "land use" not that the highest value is sav- would force large employ- ahead of 200 countries! voted for the rezoning, the "land user"? Of course Lng a dollar, not supporting ers to offer health care ben- But who cares about all adhering to the philosophy not. your neighbor. And now efits so that their employ- of this, really? Another that only the "land use" Misplaced values Wal-Mart is the nation's ees, are not adding to the Press-Citizen columnist should be considered, not largest company. Its overall states' growing Medicaid asked last month: "How did the "land user." There is But why should we both- sales are greater than rolls, shopping get so complicat- absolutely nothing in the er trying to convince the Target, Sears, K-Mart, J.C. China'$ trading partner ed in America?" Well, wel- law that requires this nar- council to vote "no' on this Penny, Safeway and Kroger come to globalization. row thinking, rezoning? Obviously, Wal- combine~ Fifty years ago, the Iowa City already tins a The City Council must Mart is a huge favorite of It is Ixue that Wal-Mart nation's largest corpora- Wal-Mart. Coralville tins a consider the "land user" for shoppers all over the court- offem jobs averaging $9.68 tJons were unionized, indus- Super Wal-Mart. Do the two reasons. First, this try, including Johnson per hour, which are eagerly trial companies who raised majority of Iowa City's resi- rezoning is being consid- County. And, Wal-Mart pro* taken, but their turnover the bar for workers' wages dents support Wal-Mart's ered at the behest of a spe- vides employment to many rote is 54 percent. Half their and benefits, and helped practices? I do not believe cific corporation, Wal-Mart. people who might be unem- workers are gone after one lead America's workers into so. On May 17 we can, and If Wal-Mart had not request- ployed otherwise. So why year, and the lawsuits the middle class. Today, must, make our voices ed it, there would be no vote are people around the coun- against Wal-Mart from Wal-Mart is helping to lower heard by the City Council. If on this change of"land use." try fighting Wal-Mart? women, minorities, unions thebar for workers, as other the council wants to Secondly, let's suppose that Because it is the major and the U.S. government are corpom~ons cut costs to try approve the rezoning to the Lion's Den Corp., one of destroyer of small business legion. Though Wal-Mart is to maintain their place in allow corporate outlaw No. the Midwest's largest put- everywhere, including busi- the nation's biggest private the economy. In fact, K-Mart i to buildi~s supercenter, let veyors of pornography, nesses in small towns'in employer and has annual and Sears merged, as did it not be in our name. requested that a city-owned Eastern Iowa. These are the revenues of $288 billion and Gillette and Procter & Reach Gary Sanders, chair- parcel of land zoned "corn- small businesses whose $I0 billion in profits, it Gamble, because they man of Iowa City Stop Wal-Mart munity commercial" be local owners sponsor the lit- claims that it cannot afford couldn't compete with Wal- and an Iowa ¢~ resident since rezoned "intensive commer- tle league teams, serve on to increase its wages or Mart. Jobs willbe slashed at 1978, at 377-7739. Always Low Wages. Always. - New York Times Page 1 of 2 May 13, 2~5 Always Low Wages. AlwaYs;', :.:,::?.x By PAUL ~UGm L~t week S~d~d ~d Poor's, a bond rating agency, do.graded bo~ Ford ~d Gener~ Motors bonds to j~k stat~. ~at is, it sees a significant risk that the complies won't be able to pay ~eir debB. Don't cry for the bondholders, but do cry for the workers. Standard and Pools downgraded GM and Ford sooner rather than later because it believes that the public is losing interest in S.U.V.'s. But the companies were vulnerable because they still pay decent wages and offer good benefits, in an age when taking care of employees has gone out of style. In particular, they are weighed down by health care costs for current and retired workers, which run to about $1,500 per vehicle at G.M. So the downgrade was a reminder of how far we have come from the days when hard-working Americans could count on a reasonable degree of economic security. In 1968, when General Motors was a widely emulated icon of American business, many of its workers were lifetime employees. On average, they earned about $29,000 a year in today's dollars, a solidly middle-class income at the time. They also had generous health and retirement benefits. Since then, America has grown much richer, but American workers have become far less secure. Today, Wal-Mart is America's largest corporation. Like G.M. in its prime, it has become a widely emulated business icon. But there the resemblance ends. The average full-time Wal-Mart employee is paid only about $17,000 a year. The company's health care plan covers fewer than half of its workers. True, not everyone is badly paid. In 1968, the head of General Motors received about $4 million in today's dollars - and that was considered extravagant. But last year Scott Lee Jr., Wal-Mart's chief executive, was paid $17.5 million. That is, every two weeks Mr. Lee was paid about as much as his average employee will earn in a lifetime. Not that many of them will actually spend a lifetime at Wal-Mart: more than 40 percent of the company's workers leave every year. http://www.nyfimes.com/2OO5/O5/13/opinion/13krugman.html?hp=&pagewanted=print 5/12/2005 Always Low Wages. Always. - New York Times Page 2 of 2 I'm not trying either to romanticize the General Motors of yore or to portray Wal-Mart as the root of all evil. GM was, and Wal-Mart is, a product of its time. And there's no easy way to reverse the changes. What should be clear, however, is that the public safety net F.DR. and L.B.J. created is more important than ever, now that workers in the world's richest nation can no longer count on the private sector to provide them with economic security. When they reach 65, most Wal-Mart employees will rely heavily on Social Security - if the privatizers don't kill it. And many Wal-Mart employees already rely on Medicaid to pay for health care, especially for their children. Indeed, a growing number of working Americans have turned to Medicaid. As the Kaiser Family Foundation points out, that's why children have for the most part have retained health coverage, despite a sharp decline in employer-based health insurance since 2000. Yet our current political leaders are trying to privatize Social Security and reduce benefits. And they are slashing funds for Medicaid even as they give big tax cuts to people like Mr. Lee. The attack on the safety net is motivated by ideology, not popular demand. The public isn't taken with the vision of an "ownership society"; it seems to want more, not less, social insurance. According to a poll cited in a recent Business Week article titled "Safety Net Nation," 67 percent of Americans think we should guarantee health care to all citizens; just 27 percent disagree. The question is whether the public's desire for a stronger safety net will finally be seconded by corporations that haven't yet adopted the Wal-Mart model of minimal benefits and always low wages. Last year Richard Wagoner Jr., G.M's chief executive, gave a speech about the costs of America's "Kafkaesque" health care system that sounded a lot like my recent columns. And his company has made it clear that it likes Canada's system: in 2002 the president of General Motors of Canada and the head of the Canadian Auto Workers signed a joint letter declaring that "it is vitally important that the publicly funded health care system be preserved and renewed." But according to The Journal Register News Service, which covered Mr. Wagoner's speech, he "stressed later to reporters that he was not proposing a national health care plan." Why not? E-mail: krugman@~ytimes, com ~ ~ : ~ ~ ~ Copyright 2005 T'he New York Tirnes Company I Home I Privacy Policy I Search I Corrections ~ rssl i Con,a '0. http://www.nyfimes.com/2005/05/13/opinion/13kmgman.html?hp=&pagewanted=pfint 5/12/2005 Yahoo! Mail - spettinger~yahoo.com Page 1 of 3 Yahoo! MyYahoo! Mail Search l Search I (he Web I Welcome, s.ti.er MAI L is,o_, out. ,y Account] Hail Home- Mail Tutorials- Help Mail ', ] Addresses " Calendar v Notepad " What's New- Mail Upgrades - MaiIOptions Previous [ Next I Back to Messaqes Printable View - Full Headers We offer 4 credit card choices Delete I Reply "1 Forward v I Spam I Hove .... Folders [Add - Edit] This message is not flagged. [ Flag Message - Hark as Unread ] Inbox (385) '"rom Hughes, Democracy for America" From: <info@democracyforamerica.com> ~l'~Add to Addresg:Book Draft Sent To: "sonia" < spettinger@yahoo.com> Bulk [Empty] Subject: Made in China Trash [Empty] Date: Thu, 12 May 2005 10:42:15 -0400 ~ly Folders [Hide] ANZAC Dear sonia, !i~i ~'' Whatever happened to good corporate citizenship? 1What's your Credit Score? See it FREE! In America today, a business you might know pays such poor wages its iMortgage Rates workers have to turn to taxpayers to pay for their health care. The same firm As Low As 2.9%! has made China, a totalitarian dictatorship that holds wages down by outlawing unions, its supplier of choice - the source of 70 percent of its inventory. 1.99% Mortgage! Limited Time ! And the family that owns this company and has become wildly wealthy? They make sure to invest their money in the Republican Party - where they know their investment will pay off with tax cuts for the richest few. What company is this? Wal-Mart - the largest, richest corporation in the world. Major organizations we work with - groups such as the Service Employees International Union, and the United Food and Commercial Workers - believe America's largest corporation should do better. To make that happen, they~/e launched a massive campaign to show Americans the massive scale of Wal- Mart's irresponsibility. But those groups need allies. Should we join the fight? The choice is yours: http://www.democracyforamerica.com~Nalmartvote Some competitors of Wal-Mart know the value of doing well by doing good. They pay living wages. They offer good benefits. And they earn steady profits - http://us.f528.mail.yahoo.com/ym/ShowLetter?Msgld=6403_l 1019265_1579477_1313_2... 5/12/2005 Yahoo! Mail - spetlinger@yahoo.com Page 2 of 3 in part because they attract, and hold onto, high-quality workers. These companies have helped make Amedca the wealthiest nation in the world and they sustain our prosperity. Wal-Mart takes a radically different approach. For it, every penny is profit - it fights for every dollar, no matter how it gets it. The result?. You pay to make Wal-Mart rich - through tax benefits and infrastructure bestowed by state and local governments - even if you never shop there. Take Georgia, a state where Wal-Mart ranks as the largest pdvate employer. In 2002, state officials there figured out that Wal-Mart employees had some 10,000 children on the rolls of PeachCare, the state's child health care program. No other company's employees had even a thousand children on the rolls - but Wal-Mart had no qualms about dumping its costs onto Georgia taxpayers. Wal-Mart used to make a point of keeping jobs in the United States by buying American. Today, though, the company single-handedly accounts for nearly 10 percent of all Chinese goods sold in the United States. Wal-Mart keeps prices Iow by stocking as much as 70 percent of its products from Chinese suppliers - suppliers who pay wages kept Iow by a dictatorial government. Those policies helped WaI-Mart's owners, the Walton family, build a fortune worth tens of billions. That money makes the company a major force in Washington. And the family uses its wealth to bankroll the radical right - it spent millions last year to elect candidates devoted to eliminating the estate tax, which affects only the wealthiest of the wealthy. Wal-Mart wealth is also behind Progress for Amedca - a Republican front group the Waltons have financed to the tune of millions of dollars. America needs better corporate citizens, and Wal-Mart -the largest company in the world - has the resources to stand on its own instead of exploiting people overseas and piggybacking on American taxpayers and working families. But making it live up to its responsibilities poses a huge challenge - because taking on Wal-Mart means going up against the biggest corporation on Earth. With an undertaking that massive, we need everyone on board. So you make the call: http://www.democracyforamerica.com/walmartvote We know that America works best when we honor those whoWOrk hard land play by the rules. It's time to decide: shouldn't we teach Wal-Mart to do the same? Sincerely, :~': Tom Hughes Executive Director, Democracy for America -- P.S. - Please forward this message to anyone you know who might be interested in the issue. http://us.f528.mail.yahoo.com/ym/ShowLetter?Msgid=6403_l 1019265_1579477_1313_2... 5/12/2005 Page 1 of 1 Marian Kart From: Evan Fales [evan-fales@uiowa.edu] Sent: Sunday, May 15, 2005 2:08 PM To: council@iowa-city.org Subject: zoning for Wal-Mart Dear Council Members: It is my understanding that the Council will be considering a proposal to rezone the land near the airport so as to permit the construction of a WalMart superstore. I had hoped to attend the session, but likely will be unable to. I want the Council to know that I am strongly opposed. I would far rather see the land remain fallow if there is no interest in an industrial use. I am sure you are well aware of the reasons why many people feel so strongly about the deleterious effects that WalMart has on communities. And I, for one, would (and do) rather buy for more, than to support a company that offers cheap prices on the backs of miserable wages to local workers (which often force workers to appeal to public assistance for health care), and the exploitation of what is effectively slave labor overseas, especially in China. I see no reason xvhy Iowa City must follow the poor example of Coralville. The usual argument is that the City needs to improve its tax base, and therefore needs to grow. I fail to see the logic. If you grow, you pay for more city services and infrastructure. There are economies of scale; where do they lead? I have mentioned to the Council before, and noxv will repeat one aspect of the logic of growth that I *do* understand. If you grow, you get bigger. How much bigger? Iowa City is about 150 years old. At the present rate of growth, in another 150 years our population will be the same as that of present-day Los Angeles. Is that the legacy we wish to leave for our great grandchildren? If not, ~vhen do we plan to stop growing? Sincerely, Evan Fales 1215 Oakcrest St. I.C. 52246 5/16/2005 Page 1 of 2 Marian Karr From: Baldridge, Thomas H [thomas-baldridge@uiowa.edu] Sent: Monday, May 16, 2005 11:20 AM To: council@iowa-city.org Subject: Wal-Mart Dear Council Members -- I've already shared this message with Ross but believe the rest of you should ponder its meaning for our community. Sincerely, Tom Dear Thomas, Whatever happened to good corporate citizenship? In America today, a business you might know pays such poor wages its workers have to turn to taxpayers to pay for their health care. The same firm has made China, a totalitarian dictatorship that holds wages down by outlawing unions, its supplier of choice -- the source of 70 percent of its inventory. And the family that owns this company and has become wildly wealthy? They make sure to invest their money in the Republican Party -- where they know their investment will pay off with tax cuts for the richest few. What company is this? Wal-Mart -- the largest, richest corporation in the world. Major organizations we work with -- groups such as the Service Employees International Union, and the United Food and Commercial Workers -- believe America's largest corporation should do better. To make that happen, they've launched a massive campaign to show Americans the massive scale of Wal-Mart's irresponsibility. But those groups need allies. Should we join the fight? The choice is yours: http://www.democracyforamerica.com/walmartvote Some competitors of Wal-Mart know the value of doing well by doing good. They pay living wages. They offer good benefits. And they earn steady profits -- in part because they attract, and hold onto, high-quality workers. These companies have helped make America the wealthiest nation in the world and they sustain our prosperity. Wal-Mart takes a radically different approach. For it, every penny is profit -- it fights for every dollar, no matter how it gets it. The result? You pay to make Wal-Mart rich -- through tax benefits and infrastructure bestowed by state and local governments -- even if you never shop there. Take Georgia, a state where Wal-Mart ranks as the largest private employer. In 2002, state officials there figured out that Wal-Mart employees had some 10,000 children on the rolls of PeachCare, the state's child health care program. No other company's employees had even a thousand children on the rolls -- but Wal-Mart had no qualms about dumping its costs onto Georgia taxpayers. Wal-Mart used to make a point of keeping jobs in the United States by buying American. Today, though, the company single-handedly accounts for nearly 10 percent of all Chinese goods sold in the United States. Wal- Mart keeps prices low by stocking as much as 70 percent of its products from Chinese suppliers -- suppliers who pay wages kept low by a dictatorial government. 5/16/2005 Page 2 of 2 Those policies helped Wal-Mart's owners, the Walton family, build a fortune worth tens of billions. That money makes the company a major force in Washington. And the family uses its wealth to bankroll the radical right -- it spent millions last year to elect candidates devoted to eliminating the estate tax, which affects only the wealthiest of the wealthy. Wal-Mart wealth is also behind Progress for America -- a Republican front group the Waltons have financed to the tune of millions of dollars. America needs better corporate citizens, and Wal-Mart --the largest company in the world -- has the resources to stand on its own instead of exploiting people overseas and piggybacking on American taxpayers and working families. But making it live up to its responsibilities poses a huge challenge -- because taking on Wal-Mart means going up against the biggest corporation on Earth. With an undertaking that massive, we need everyone on board. So you make the call: http://www~democracyforamerica~com/walmartvote We know that America works best when we honor those who work hard and play by the rules. It's time to decide: shouldn't we teach Wal-Mart to do the same? Sincerely, Tom Hughes Executive Director, Democracy for America P.S. -- Please forward this message to anyone you know who might be interested in the issue. 5/16/2005 Prepared by: Sunil Terdalkar, PCD, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5243 (REZ05-00002) ORDINANCE NO. AN ORDINANCE REZONING APPROXIMATELY 29.26 ACRES FROM INTERIM DEVELOPMENT RESIDENTIAL ZONE (ID-RS) TO PART LOW DENSITY SINGLE-FAMILY RESIDENTIAL ZONE (RS-5 - 10.92 ACRES) AND PART MEDIUM DENSITY SINGLE FAMILY RESIDENTIAL ZONE (RS-8 - 18.34 ACRES), SUBJECT TO CONDITIONS, FOR PROPERTY LOCATED ON SOUTH SYCAMORE STREET NORTH OF SOUTHPOINT SUBDIVISION WHEREAS, Steve Kohli has applied for a rezoning of approximately 29.26 acres of property from ID-RS to part RS-5 (10.92 acres) and part RS-8 (18.34 acres); and WHEREAS, said property is located on the west side of South Sycamore Street, south of Hollywood Manor, and north the Southpoint subdivision; and WHEREAS, the South District Plan identifies the area as appropriate for Iow to medium density single family, residential development; and WHEREAS, the Planning and Zoning Commission has reviewed the proposed rezoning and has heard public input, and has recommended approval subject to conditions; and WHEREAS, the conditions recommended by the Commission are related to funding future Sycamore Street improvements, access, and subdivision design considerations, in order to ensure the neighborhood design principles in the South District Plan are addressed. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: SECTION I. APPROVAL. Subject to the terms and conditions of the Conditional Zoning Agreement attached hereto and incorporated herein, the property described below is hereby reclassified from Interim Development Residential Zone (ID-RS) to part Low Density Single-Family Residential zone (RS-5 - 10.92 acres) and Medium Density Single-Family Residential zone (RS-8 - 18.34 acres): RS-5 - THAT PART OF THE MIDDLE THIRTY (30) ACRES OF THE FOLLOWING DESCRIBED PROPERTY: THE EAST ~ OF THE SOUTHWEST ¼ AND THE EAST FIVE (5) ACRES OF THE WEST ¼ OF THE SOUTHWEST ¼ OF SECTION 23, TOWNSHIP 79 NORTH, RANGE 6 WEST OF THE 5TH P.M., MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER (SW ¼) OF SAID SECTION; THENCE N 01010'23" W, 931.32 FEET ALONG THE EAST LINE OF SAID SW 1/4; THENCE S 87042'07'. W 28.25 FEET TO THE WEST RIGHT-OF-WAY LINE OF SYCAMORE STREET; THENCE N 1°13'58" W 606.30 FEET ALONG SAID WEST RIGHT-OF-WAY TO THE POINT OF BEGINNING; THENCE S 87°42'07" W 936.44 FEET; THENCE S 1°03'50" E 11.01 FEET; THENCE S 88°56'10" W 88.53 FEET; THENCE WESTERLY 86.93 FEET ALONG A 300 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (SAID CURVE HAVING A CHORD OF 86.63 FEET AND BEARING S 80038'04" W); THENCE S 72o19'59" W 120.01 FEET; THENCE WESTERLY 46.30 FEET ALONG A 150 FOOT RADIUS CURVE, CONCAVE NORTHERLY (SAID CURVE HAVING A CHORD OF 46.12 FEET AND BEARING S 81°10'32'' W); THENCE N 89°58'56'' W 96.48 FEET TO THE WEST LINE OF THE EAST FIVE ACRES OF THE WEST ½ OF SAID SW ¼; THENCE N l°03'57" W 378.13 FEET TO THE SOUTH LINE OF AUDITOR'S PARCEL "A" (BOOK 34 PAGE 243); THENCE N 87°42'03" E, 1367.01 FEET ALONG THE SOUTH LINE OF SAID PARCEL "A" AND THE SOUTH LINE OF HOLLYWOOD MANOR PARTS 6, 7, AND 8 TO THE WEST RIGHT-OF- WAY LINE OF SOUTH SYCAMORE STREET; THENCE S 01°13'58" E, 325.22 FEET ALONG THE WEST RIGHT-OF-WAY LINE TO THE POINT OF BEGINNING, CONTAINING 10.526 ACRES, AND IS SUBJECT TO ALL EASEMENTS AND RESTRICTIONS OF RECORD. And Ordinance No. Page 2 RS-8 - THAT PART OF THE MIDDLE THIRTY (30) ACRES OF THE FOLLOWING DESCRIBED PROPERTY: THE EAST Y2 OF THE SOUTHWEST ¼ AND THE EAST FIVE (5) ACRES OF THE WEST ~ OF THE SOUTHWEST ¼ OF SECTION 23, TOWNSHIP 79 NORTH, RANGE 6 WEST OF THE 5TH P.M., MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER (SW ¼) OF SAID SECTION; THENCE N 01°10'23'' W, 931.32 FEET ALONG THE EAST LINE OF SAID SW 1/4; THENCE S 87°42'07" W 28.25 FEET TO THE WEST RIGHT-OF-WAY LINE OF SYCAMORE STREET AND THE POINT OF BEGINNING; THENCE CONTINUING S 87°42'07'' W, 1369.72 FEET TO THE WEST LINE OF THE EAST 5 ACRES OF THE WEST ¼ OF SAID SW ¼; THENCE N 1°03'57'' W 553.41 FEET; THENCE S 89058'56'' E 96.48 FEET; THENCE EASTERLY 46.30 FEET ALONG A 150 FOOT RADIUS CURVE, CONCAVE NORTHERLY (SAID CURVE HAVING A CHORD OF 46.12 FEET AND BEARING N 81010'32'' E); THENCE N 72019'59'' E 120.01 FEET; THENCE EASTERLY 86.93 FEET ALONG A 300 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (SAID CURVE HAVING A CHORD OF 86.63 FEET AND BEARING N 80038'04'' E); THENCE N 88°56'10" E 88.53 FEET; THENCE N 1°03'50'' W 11.01 FEET; THENCE N 87042'07'' E 936.44 FEET TO THE WEST RIGHT-OF-WAY LINE OF SOUTH SYCAMORE STREET, THENCE S 1°13'58'' E 606.30 FEET ALONG SAID WEST RIGHT-OF-WAY TO THE POINT OF BEGINNING CONTAINING 18.731 ACRES, AND IS SUBJECT TO ALL EASEMENTS AND RESTRICTIONS OF RECORD. SECTION II. ZONING MAP. The Building Inspector is hereby authorized and directed to change the zoning map of the City of Iowa City, Iowa, to conform to this amendment upon the final passage, approval and publication of this ordinance by law. SECTION III. CONDITIONAL ZONING AGREEMENT. Following final passage and approval of this ordinance, the Mayor is hereby authorized and directed to sign, and the City Clerk to attest, the Conditional Zoning Agreement between the property owners, the applicant, and the City of Iowa City. SECTION IV. CERTIFICATION AND RECORDING. Upon passage and approval of the Ordinance, and after execution of the Conditional Zoning Agreement, the City Clerk is hereby authorized and directed to certify a copy of this ordinance and the Conditional Zoning Agreement and to record the same, at the office of the County Recorder of Johnson County, Iowa, at the owner's expense, all as provided by law. SECTION V. REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION VI. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION VII. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and publication, as provided by law. Passed and approved this __ day of ,20 MAYOR ATTEST: CITY CLERK C~ty At{6rffe~,'~ Office' ppdadnYord/REZ04-OOOO2.doc Prepared by: Sunil Terdalkar, PCD, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5243 (REZ05-00002) CONDITIONAL ZONING AGREEMENT THIS AGREEMENT is made between the City of Iowa City, Iowa, a municipal corporation (hereinafter "City"), and Steve Kohli (hereinafter "Applicant"), and Iowa State Bank and Trust Co. (hereinafter "Owner"); and WHEREAS, Owner is the legal titleholder of approximately 29.26 acres of property located on the west side of Sycamore Street, east of Wetherby Park, north of SouthPointe subdivision; and WHEREAS, the Applicant with the Owner's consent has requested the rezoning of said property from Interim Development Residential zone (IDRS) to part Low-Density Single-Family Residential zone (RS-5 - 10.92 acres) and part Medium-Density Single-Family zone (RS-8 - 18.34 acres); and WHEREAS, the Planning and Zoning Commission has determined that, with appropriate conditions regarding access, funding of future Sycamore Street improvements, and subdivision design provisions, the timing of the rezoning is appropriate and the Iow to medium density single-family residential zoning is in conformance with the South District Plan; and WHEREAS, Iowa Code [}414.5 (2003) provides that the City of Iowa City may impose reasonable conditions on granting an applicant's rezoning request, over and above existing regulations, in order to satisfy public needs caused by the requested change; and WHEREAS, the Owner and Applicant acknowledge that certain conditions and restrictions are reasonable to ensure the development of the property contributes to the future reconstruction of South Sycamore Street, and generally conforms to the neighborhood design principles of the South District Plan and Comprehensive Plan; and WHEREAS, Owner and Applicant agree to use this property in accordance with the terms and conditions of a conditional zoning agreement. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: 1. Iowa State Bank and Trust is the legal title holder and Steve Kohli is the Applicant for a rezoning of the property legally described as follows: THE MIDDLE THIRTY (30) ACRES OF THE FOLLOWING DESCRIBED PROPERTY: THE EAST % OF THE SOUTHWEST ¼ AND THE EAST FIVE (5) ACRES OF THE WEST ~ OF THE SOUTHWEST ¼ OF SECTION 23, TOWNSHIP 79 NORTH, RANGE 6 WEST OF THE 5TH P.M., MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER (SW ¼) OF SAID SECTION; THENCE N 01°10'23" W, 931.32 FEET ALONG THE EAST LINE OF SAID SW 1/4; THENCE S 87o42'07'' W 28.25 FEET TO THE WEST RIGHT- OF-WAY LINE OF SYCAMORE STREET AND THE POINT OF BEGINNING; THENCE CONTINUING S 87042'07'' W, 1389.72 FEET TO THE WEST LINE OF THE EAST 5 ACRES OF THE WEST % OF SAID SW ¼; THENCE N 01003'57.. W 931.55 FEET ALONG SAID WEST LINE TO THE SOUTH LINE OF AUDITOR'S PARCEL "A" (BOOK ppdadm/aglJcza-brookwood pointel 1 34 PAGE 243); THENCE N 87°42'03'' E, 1367.01 FEET ALONG THE SOUTH LINE OF SAID PARCEL "A" AND THE SOUTH LINE OF HOLLYVVOOD MANOR PARTS 6, 7, AND 8 TO THE WEST RIGHT-OF-WAY LINE OF SOUTH SYCAMORE STREET; THENCE S 01°13'58'' E, 931.52 FEET ALONG THE WEST RIGHT-OF-WAY LINE TO THE POINT OF BEGINNING, CONTAINING 29.257 ACRES MORE OR LESS, AND IS SUBJECT TO ALL EASEMENTS AND RESTRICTIONS OF RECORD. 2. Owner and Applicant acknowledge that the City wishes to ensure appropriate residential development that conforms to the principles of the Comprehensive Plan and South District Plan. Further, the parties acknowledge that Iowa Code §414.5 (2003) provides that the City of Iowa City may impose reasonable conditions on granting an applicant's rezoning request, over and above the existing regulations, in order to satisfy public needs caused by the requested change, including provisions for funding of the adjacent arterial street, access to the property, and subdivision design principles. Therefore Owner and Applicant agree to certain conditions over and above City regulations as detailed below. 3. In consideration of the City's rezoning the subject property, Owner and Applicant agree that development of the subject property will conform to all other requirements of the zoning chapter, as well as the following conditions: a. The subdivider is required to contribute toward the cost of South Sycamore Street improvement, at a rate of $2507.08 per acre of property, at the time of final plat approval. Said funds will be deposited with the City of Iowa City prior to the first occupancy permit being issued for any lot in any final plat on this property. b. To ensure that utilities are provided for the development, construction of a stormwater management system on Outlot 'A' in phase one shall be completed. c. An easement to facilitate construction of sewer line from SouthPointe subdivision to Sandhill Estates shall be created. d. To fulfill neighborhood design principles in the South District Plan and Comprehensive Plan, the following conditions shall apply to the subdivision design for the property, a landscape buffer shall be created along Sycamore Street. The City will landscape the buffer at the time of Sycamore Street upgrade and a payment shall be made for this landscaping by the applicant at the time final plat approval. The legal paper for the final plat shall specify that fencing, if any, shall be constructed at least 25 feet to the west of sycamore street right of way to provide sufficient room for the landscape buffer, to ensure better streetscape view. 4. The Owner, Applicant, and City acknowledge that the conditions contained herein are reasonable conditions to impose on the land under Iowa Code §414.5 (2003), and that said conditions satisfy public needs that are caused by the requested zoning change. 5. The Owner, Applicant, and City acknowledge that in the event the subject property is transferred, sold, redeveloped, or subdivided, all redevelopment will conform with the terms of this Conditional Zoning Agreement. 6. The parties acknowledge that this Conditional Zoning Agreement shall be deemed to be ppdadm/agt/cza-brookwood pointel 2 a covenant running with the land and with title to the land, and shall remain in full force and effect as a covenant with title to the land, unless or until released of record by the City.of Iowa City. The parties further acknowledge that this agreement shall inure to the benefit of and bind all successors, representatives, and assigns of the parties. 7. Applicant acknowledges that nothing in this Conditional Zoning Agreement shall be construed to relieve the Owner or Applicant from complying with all other applicable local, state, and federal regulations. 8. The parties agree that this Conditional Zoning Agreement 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 in the Johnson County Recorder's Office at the Applicant's expense. Dated this __ day of April, 200,~. CITY OF IOWA CITY Iowa State Bank and TRUST Co. Ernest Lehman, Mayor D ~¢~ ~{,¢.z,~4'/-/~,.r/¢;~ Marian K. Karr, City Clerk ~ ~' Approved by: City Atto~ney~ Offic~ CITY OF IOWA CITY ACKNOWLEDGEMENT: STATE OF IOWA ) ) SS; JOHNSON COUNTY ) On this day of , A.D. 20 , before me, the undersigned, a notary public in and for the State of Iowa, personally appeared Ernest W. Lehman and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and ppdadm/agt/cza-brookwood pointel 3 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 its City Council; and that the said Mayor and City Clerk as such officers acknowledged that the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Notary Public in and for the State of Iowa My commission expires: IOWA STATE BANK AND TRUST CO. ACKNOWLEDGEMENT: STATE OF IoWA ) ) SS: JOHNSON COUNTY ) On this /~'~ day of /" , A.D. 20 C~5 , before me, the undersigned, a Notary Public in and for the Stye of Iowa, personally appeared to me personally known, ~vh%. being by me duly sworn, did say that 5the~ a~ the ~.,,~ ~ I~/;'~c {~re.~,~/~,~/,g~said corporation executing the within and foregoing instrument to which this is attached, that said instrument was signed and sealed on behalf of the seal affixed he. to is the seal of said corporation by authority of its Board of Directors; and that the said ~t~,~ ~ ~ ~ ~ ~.¢'~ ~as such officer~ acknowledged t~%execution of said instrument to be the voluntary act and deed of said corporation, by it and by/ti)gert voluntarily executed. N(~t~lry P~blic ~ ~r~d ~or"t~e State of Iowa STEVE KOHLI ACKNOWLEDGEMENT: STATE OF IOWA ) ) SS: JOHNSON COUNTY ) ppdadm/agtJcza-brookwood pointe 1 4 On this ,% day of /~1~.~ , A.D. 20~j~ , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared to me personally known, who, being by me duly sworn, did say that' ~elt, IV)~,j~.~t~.~'- , of said corporation executing the within and foregoing instrument to which this is attached, that no seal has been procured by the said corporation; that said instrument was signed on behalf of said corporation by authority of its Board of Directors; and that the said ~'-~'~ )~J~l J', as such officer~ acknowledged the exe..~,u~n of said instrument to' b'e the voluntary act and deed of said corporation, by it and by ~ voluntarily executed. !!~l~ !u~l~c !n~.~ ~d ~o~~s a i d~C o · ~ - ' ' ' ' -- ~'~and N u State ppdadm/agt/cza-brookwood poin~e 1 5 Ordinance No. Page It was moved by. and seconded by that the Ordinance as read be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bailey Champion Elliott Lehman O'Donnell Vanderhoef Wilburn First Consideration 5/3/05 Vote for passage: AYES : Wilburn, Bailey, Champion, Elliott, Lehman, 0'Donnell, Vanderhoef. NAYS: None. ABSENT: None. Second Consideration 5/17/05 Voteforpassage: AYES: Vanderhoef, Wilburn, Bailey, Champion, Elliott, Lehman, 0'Donnell. NAYS: None. ABSENT: None. Date published Prepared by: Drew Shaffer, Cable TV Administrator, 410 E. Washington St., Iowa City, Iowa 52240, 319-356-5046 ORDINANCE NO. AN ORDINANCE REPEALING CITY CODE TITLE 12, CHAPTER 4 ENTITLED BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE, AND ADOPTING A NEW CHAPTER 4. WHEREAS, the City has negotiated an extension of the franchise agreement with MCC Iowa LLC, pursuant to the Communications Policy Act of 1984, the Cable Television Consumer Protection and Competition Act of 1992, and the Telecommunications Act of 1996, and WHEREAS, it is deemed in the interest of the City to provide for continuing cable television service to its residents, and WHEREAS, the existing Broadband Telecommunications Franchise Enabling Ordinance needs to be updated due to changes in Federal law, the cable extension and the name change of the Iowa City Telecommunications Commission, should be amended. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA THAT: SECTION I. AMENDMENT. Title 12, Chapter 4 of the City Code is hereby repealed and a new Title 12, Chapter 4 is adopted as follows: CHAPTER 4. CABLE TELEVISION DMSION 1. ENABLING ORDINANCE Sec. 12-4-1: Short Title Sec. 12'4'2: Definitions Sec. 12-4-3: Cable Television Administrator and Iowa City Telecommunications Commission Sec. 12-4-4: Regulatory Jurisdiction and Procedures Sec. 12-4-5: Significance of Franchise Sec. 12-4-6: The Cable Television Franchise ~ Sec. 12-4-7: Operation of Franchise Sec. 12-4'8: Rights Reserved to the City ~ ' Sec. 12-4-9: Apphcations for Franchise ~',~ ~'~ Sec. 12-4-10: Acceptance and Effective Date of Franchise ~ Sec. 12-4-11: Termination of Franchise ~'> Sec. 12-4-12: Reports and Records of the Grantee · Sec. 12-4-13: Franchise Payment Sec. 12-4-14: Liability and Indemnification Sec. 12-4-15: Bonds Sec. 12-4-16: Fees, Rates and Charges Sec. 12-4-17: Pubhc, Education and Government Connection to Cable Television System Sec. 12-4-18: Interconnection of Network Sec. 12-4-19: Construction Timetable for Initial Construction Sec. 12-4-20: Construction Timetable for Rebuild Construction Sec. 12-4-21: Network Description Sec. 12-4-22: Network Technical Requirements Sec. 12'4-23: Performance Measurements Sec. 12-4'24: Construction Standards Sec. 12-4-25: Erection, Removal and Common Use of Poles Sec. 12-4-26: Construction Reporting Requirements Sec. 12-4-27: Channels to be Provided Sec. 12-4-28: Conditions of Street Occupancy Sec. 12-4-29: Unauthorized Connections or Modifications Sec. 12'4'30: Preferential or Discriminatory Practices Prohibited Sec. 12-4-31: Installations, Connections, and Other Services Sec. 12-4-32: Service Calls and Complaint Procedures Sec. 12-4-33: Transfer Sec. 12-4-34: Pubhcations Costs Sec. 12-4-35: Ordinances Repealed Sec. 12-4-36: Separability Sec. 12-4-37: Time is of the Essence to this Ordinance Sec. 12-4-38: No Waiver of Rights Ordinance No. Page 2 DIVISION 2. RATE REGULATIONS Sec. 12-4'39: Rate Regulation Proceedings Sec. 12-4-40: Certification Sec. 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. Sec. 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 c]~anne]s 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. A~nual 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. 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 614 and 615; 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 (fi) subscriber interaction, ff any, which is required for the selection (or use) of such video programming or other programming service or as otherwise provided by law or regulation. Cable television system ct~anne] 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 net- work. 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 c]~anne] 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 O0 a facility that serves only to retransmit the television signals of one or more television broadcast stations; (B) a facility that serves subscribers without using 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 II of the Cable Act, except that such facility shall be considered a cable system to the extent such facihty 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. Cable television system, for the purpose of this Article, shall include facilities owned or operated by a person providing cable service or multiple channels of video programming to subscribers on private property that receive Ordinance No. Page 3 cable service or multiple channels of video programming in whole or in part via cable, fiber or other wires or lines that are within the public-rights'of'way regardless of whether the person providing cable service or multiple channels of video programming on private property receives video programming transmission service, cable service, or other multiple channel video service from a common carrier pursuant to tariff or otherwise or other person that retains the ownership, control and responsibility for all facilities located outside of the private property line. C]~annel £requency response means within a cable television channel, the relationship as measured at a subscriber terminal between amplitude and frequency of a constant-amphtude 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. 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 Iowa City Telecommunications Commission. Communications Policy Act or Cable Actmeans the Cable Communications Policy Act of 1984,the Cable Television Consumer Protection and Competition Act of 1992, and the Telecommunications Act of 1996 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 shah 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 shah mean coded transmissions primarily digital in nature. Days shah 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 shah mean a coaxial connection from feeder cable to the subscriber/user television set, radio or other terminal. Faiz~ 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. FCCshaH mean the Federal Communications Commission and any legally appointed or elected successor. Fiber means a transmission media of optical fiber cable capable of carrying transmissions by means of light' wavd impulses. Fiber Node means the local transition point between the fiber distribution portion and the coaxial distribution portion of the upgraded cable communications system. 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 aH 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 bruits of the City, including aH territory thereafter annexed to the City. Franchise £ee means the percentage, as specified by this ordinance, of the Grantee's gross revenues from all sources payable in exchange for the rights granted pursuant to this ordinance and the franchise agreement. Fu]]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 aff~iliate companies, associations or organizations having any rights, powers, privileges, duties, liabihties 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 af£fliate 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 shah include the lawful successor, transferee, or a assignee of such franchisee or Grantee. Ordinance No. Page 4 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 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 television channel, exclusive of undesired signals of discrete frequency which degrade the reproduction of the desired signal and which are due to modulation processes, thermal effects and other noise-producing effects, not including hum. Network noise is specified in terms of its RMS voltage or its mean power level as measured in a 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. Open video system shall mean any channel or a facility consisting of a set of transmission paths and associated signal generation, reception and control equipment that is designed to provide cable television service, which includes video programming, which is provided to multiple subscribers within a community, and which the Federal Communications Commission or its successor has certified as compliant with Part 76 of the Rules of the Federal Communications Commission, 47 C.F.R. Part 76, as amended from time to time. Physical miles ofp]ant 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 sm'face, 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 dehvered at least forty-eight (48) hours prior to such action. Resident means any person residing in the City or as otherwise defined by apphcable 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 terminal means 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 building, contracts, facilities, and equipment where its sole use is for providing service to Ordinance No. Page 5 other system facilities located outside the City hmits. Substart]a]]y completed means operation will be considered substantially completed when sufficient distribution facihties have been installed so as to permit the offering of full network services to at least ninety (90) percent of the dwelhng units in the service area to which access is legally and reasonably available. Terra,ha] Jso]atioz~ 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. Sec. 12-4-3: Cable Television Administrator and Iowa City Telecommunications Commission. A. 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: 1. 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 frrst able to resolve their differences. 2. Report recommendations upon complaints, disputes or disagreements after investigation to the Iowa City Telecommunications Commission for the issuance of finding. 3. 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 Enabhng Ordinance. 4. 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 pubhc at reasonable hours and upon reasonable request. 5. Confer and coordinate with the Grantee on the interconnection of the City's cable television system with other similar networks. 6. Advise the Iowa City Telecommunications Commission. 7. Other such duties as the City Manager or Iowa City Telecommunications Commission may assign. 8. Promote usage and understanding of the access channels. 9. Research and recommend new technologies that may be useful to the City, community, and cable system. B. Commissior establis]~ed: Within thirty (30) days of the granting of the first franchise, there shall be appointed a Commission to be known as the Iowa City Telecommunications Commission. C. Composition and term: The Iowa City 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. D. Powers ~rd duties: The duties of the Iowa City Telecommunications Commission shall be as follows: 1. Resolving disputes or disagreement between subscribers, potential subscribers and Grantee should such parties be unable frrst to resolve their dispute. The Iowa City 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 Iowa City Telecommunications 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. 2. Reviewing and auditing reports submitted to the City 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. 3. Work with the public and the media to assure that all records, rules and charges pertinent to the cable tele' vision system in the City of Iowa City are made available for inspection at reasonable hours upon reasonable notice. 4. Confer with the Grantee and advise on the interconnection of the City's cable system with other cable and communications systems. 5. Subsequent to the initial franchise, solicit, review and provide recommendations to the City Council for selection of applicants for franchise under this ordinance. 6. Initiate inquiries, receive requests for review of rates charged by the Grantee and provide recommendation on such actions to the City Council. 7.Conduct evaluations of the system at least every three (3) years with the Grantee and, pursuant thereto, Ordinance No. Page 6 make recommendations to the Council concerning system improvements and amendments to this ordinance or any franchise agreement. 8. Establish and administer sanctions as authorized by the City Council to insure compliance with this ordi- nance. 9. 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 pubhc access channel be free of program censorship and control. 12. Cooperate with the entities operating access channels as those entities develop rules for such channels. 13. 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 franchise payment. D. Rules andre~u]ations: The Iowa'City 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 Iowa City Telecommunications Commission and the hearings are held promptly in accordance with reasonable notice to all parties. The Iowa City Telecommunications Commission shall also have such powers to include the election of its own officers. Sec. 12-4-4: Regulatory jurisdiction and procedures. A. Continuing regu]atory jurisdiction: 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, how' ever, 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. Regu]atory procedures: 1. The Iowa City Telecommunications Commission shall consider any inquiry or proceeding, excluding those de- scribed in Paragraphs 2 and 3 below, requiring City Council action to be taken in regard to the cable television system or franchise, whether upon apphcation or request by the Grantee or any other party or on its own mo- tion and shall submit such consideration, together with the Iowa City Telecommunications Commission's rec- ommendation, to the City Council. Any action by the City Council on any Iowa City Telecommunications Com- mission recommendation shall be taken only after thirty (30) days notice of said proposed action, inquiry or proceeding is pubhshed 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. Mem' bets of the pubhc 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. 2. Rate regulation procedures shall be conducted in accordance with the timeframe estabhshed in Division 2, Rate Regulations. 3. 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. 4. The pubhc 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 pubhc, 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 pubhc notice shall give the date, location and time of such hearing. The Grantee will be provid- ed with reasonable notice for any hearing conducted in regard to its operation. C. Triennial franchise review: 1. 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. 2. The City shall f~rst confer with the Grantee regarding modifications in the franchise which might impose additional obhgations on the Grantee, and the Grantee may in turn seek to negotiate relaxations in any Ordinance No. Page 7 requirements previously imposed on it which are subsequently shown to be impractical. 3. 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 similar' ly file with the City a written request that specified obhgations of its franchise be removed or relaxed. Imple- mentation of such requests shall correspond as nearly as possible with the procedures set forth herein. The Iowa City Telecommunications Commission will recommend to Council changes in the franchised rights and obhgations of the Grantee only if it finds from all available evidence that such changes will not impair the eco- nomic viability of the system or degrade the attractiveness of the system's service to present and potential subscribers. D. Ex]Mration: 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. A. Franchise nonexcIusive: 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, £rrm, 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. B. Francl~ise amendabIe: The scope of 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. C. PrivHeges must be specilled: No privilege or exemption shall be inferred from the granting of any franchise uuless 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 pubhc interest to do so. D. 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 pubhc 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 hmitations contained in this ordinance. E. 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. F. Subject to other regulatory agencies' rules and regulations: The Grantee shall at all times during the life of any franchise granted hereunder be subject to all lawful exercise of the pohce power by the City and other duly authorized regulatory state and federal bodies. G. Pole use agreements required: No franchise granted hereunder shall reheve the Grantee of any obhgation 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 o£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. J. Genera] 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. K. No v~aiver o£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 contravention of rights except to the extent expressly waived by the City or expressly provided for in the franchise. Sec. 12-4-6: The cable television franchise. No cable communications system, open video system, or person providing cable service shall be allowed to occupy or use the streets of the City or be allowed to operate within the City without a franchise granted pursuant to Ordinance No. Page 8 this Article. All cable television franchises in the City shall be subject to the terms of this Ordinance. Any franchise granted for an open video system shall comply with all sections of this Article, unless precluded from comphance by specific sections of applicable law. A. Franchise required: No person, firm, company, corporation or association shall construct, install, maintain or operate within any pubhc street in the City, or within any other pubhc property of the City, any equipment or facilities for the distribution of cable service over a cable television system or an open video 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. Any franchise granted for an open video system shall comply with all sections of this Ordinance, unless precluded from compliance with specific sections by Federal or state law, rule, or regulation. B. Franchise appYications: Pubhc Notice of Request for Proposals. The City may invite apphcations for a cable television franchise by means of a public notice advertising the availability of its Request for Proposals. 1. The pubhc notice shall contain, but need not be limited to: a. A description of the franchise area which is sought. b. A statement that a formal Request for Proposals is available to prospective apphcants from a City official whose name, address, and telephone number are specified. c. A statement that apphcations 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. d. A statement that all apphcations will be made available for pubhc inspection during normal business hours at a specified location. C. Request for proposals: Prior to inviting any apphcations for any television franchise, the City shall prepare a Request for Proposals that shall contain, but need not be hmited to, the following: 1. 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. 3. A statement indicating the amount of the apphcation fee (if any) to be submitted with the application, and the manner in which such fee is to be submitted. 4. A statement that all applications must contain the information required by the Request for Proposal. 5. The closing date for the submission of applications. 6. The name, address, and telephone number of the City official(s) who may be contacted for further information. D. Rewew of qua]iY~cations: 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 arrange- ments; an assessment of whether pubhc, educational and governmental access cha ~nnel and institutional network capacity, equipment, facilities, services, and financial support are reasonable; a determination of whether the proposal meets the future cable communications 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 pubhc proceeding affording due process. E. 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 pubhc, 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. F. Requirement for public hearing on reasonable notice: The City shall conduct a pubhc hearing prior to awarding any cable television franchise. The hearing shall be preceded by reasonable notice to each of the franchise apphcants and to the pubhc, and shall be conducted by the City in accordance with the following procedures: 1. There shall be an agenda for the hearing which shall specify the proposal(s) to be considered at the hearing. 2. Every person who has apphed for a cable television franchise shall appear at the hearing either in person or by authorized representative. The apphcation of any apphcant not so appearing shall not be further considered, except for good cause shown. 3. 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 hmits 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. Ordinance No. Page 9 c. Indicate that copies of all franchise apphcations are available for public inspection during normal business hours at a place to be specified in the notice. G. Duratior o££ranc]~ise: 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. A. Operation to be i~ accordance v/it]~ ruies: 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. B. 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 inconvenience to the subscribers, and unless such interruption is unforeseen and immediately necessary, the Grantee shah give reasonable notice thereof to the affected subscribers. C. O£1'~ce andphone for complaints: The Grantee shah maintain an office within the City hmits which shall be open during all normal business hours, including some week night and Saturday hours, have a hsted local telephone number and be so operated that complaints and requests for repairs or adjustments may be received at any time. D. Service records maintained: The Grantee shall at all times make and keep a hst of all complaints and interruptions or degradation of service received or experienced during the term of franchise. The records maintained above shah 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 pubhc. E. Grantee rules and regulations: The Grantee shah 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. 1. 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. 2. 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 5r deletions thereto, shall be kept currently on file with the City Clerk and another copy thereof shall be maintained for pubhc inspection during normal business hours at Grantee's office in the City and the copy shall be provided to the Iowa City Telecommunications Commission; no such rules, regulations, terms, conditions or amendments, additions or deletions thereto shall take effect unless and until so fried and maintained. This paragraph is not intended to apply to the Company's personnel and other internal rules and regulations. F. Subscribers'antennas: The Grantee shah 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. G. Antenna switch: The Grantee, upon request from any subscriber, shah install at a reasonable charge a switching device to permit a subscriber to continue to utilize the subscribers own television antenna. H. Service response: 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. I. State o£the art: This section shah 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 frcm or affiliates have installed state of the art improvements in any system of similar size owned by Grantee, its parent company, management from 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 improvements, then the Grantee shah 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. Ordinance No. Page 10 Sec. 12-4-8: Rights reserved to the City. A. Governing requirement: At all times during the term of the franchise, Grantee shall comply with all laws, rules or regulations of the City, state or federal governments, their regulatory agencies or commissions which are now applicable or may be apphcable hereafter to the construction and operation of the cable communications system, including without hmitation, 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 vahdity of any such law, rule or regulation. B. 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 comphance 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 beheved 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 apphcable federal and state law. C. 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 apphcable 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. D. Right o£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 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. E. 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 estabhshed, subject to federal and state law. F. 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 obhgated to indemnify the City for any such suit. G. 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. H. City's right o£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. I. 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. J. City's right o£networ]~ installation: The CiW 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 apphcation procedure. A. Proposa! bond and firing £ee.' All apphcants must provide a proposal bond as required herein and pay a nonrefun- dable fihng fee to the City of ten thousand dollars ($10,000.00) the time the apphcation is submitted. This bond and fihng fee does not apply to an incumbent operator afforded renewal rights under Section 626 of the Cable Act. ' B. Request £orproposa]: All applicants must complete the request for proposal (RFP) issued by the City which shall include but not be hmited to the following: Ordinance No. Page 11 1. Name and addr. ess of applicant: The name and business address of the applicant, date of application and signature of applicant or appropriate corporate officer(s). 2. 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, management and marketing staff complement and procedures and, if available, the rules of operation for public access. 3. Signal carriage: A statement of the television and radio services to be provided, including both off-the-air and locally originated signals. 2t. 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. 5. Schedule of charges: A statement of the applicant's proposed schedule of charges as set forth herein. 6. Corporate organization: A statement detailing the corporate organization of the applicant, ff any, including the names and addresses of its officers and directors and the number of shares held by each officer and director. 7. 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. 8. Intra-company relationships: A statement describing all intra-company relationships of the applicant, including parent, subsidiary or affiliated companies. 9. 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. 10. 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. 11. 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 forma. 12. 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. 13. Construction timetable: A description of system construction including the timetable for provision and extension of service to different parts of the City. 14. 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. 15. 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. 16. 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. 17. 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. 18. Operating experience: A statement detailing the prior cable television experience of the applicant including that of the applicant's officers, management and staff to be associated, where known, with the proposed fran' ChiSe. 19. 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: Ordinance No. Page 12 a. A summary of the technical, financial and programming history of the network since the granting of the original franchise. b. A statement and timetable that'outlines all proposed changes, expansion or improvements in the system as to services, programming or technical specifications during the forthcoming three-year review period. C. SpecJaI interests: In order to maximize the potential of the cable television system, comparative evaluations of apphcations will reflect the City's special interest in the following areas: 1. Programming and production assistance: A proposal for funding facilities, equipment or personnel beyond those required elsewhere to be designated to effect and promote pubhc, educational, and government access, and community programming development. 2. Discrete carriage capacity: A proposal for the origination, experimental uses and/or interconnection by or of agencies specified in Section 12-4' 17 for speciahzed needs and a plan accommodating such future needs as may arise. 3. Bi-directional capacity: A proposal for effectuating the cable television system's bi-directional capacity and inte- gration of the City's interactive system. 4. Multi-o~igination: 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. 5. 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. 7. Institutional network: A proposal to provide bi-directional interconnection of video, voice, audio and data among pubhc sector locations and interconnect to the subscriber network. 8. Home interactive: A proposal to provide two'way services to subscribers' homes. D. Additional requYrements: The apphcation for franchise shall respond specifically, and in sequence, to the RFP. Twenty (20) copies of the apphcation shall be supplied to the City. The City may, at its discretion, consider such additional information as part of the apphcation. E. Supp]ementat]on to app]ications: The City reserves the right to require such supplementary, additional or other information as the City deems reasonably necessary for its determinations. Such modifications, deletions, addi- tions or amendments to the apphcation shall be considered only ff specifically requested by the City. Sec. 12-4-10: Acceptance and effective date of franchise. A. 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: 1. 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 4. Reimbursement to the City for the costs of publication of this article, and cost of the initial franchising process, and 5. Written notification of the Grantee's location and address for mail and official notifications from the City. B. For£eiture o£proposal bond: Should the Grantee fail to comply with subsection (A) above, it shah 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. C. 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 shah not include negligent acts of the City, its agents or employees. D. Acceptance o£power and authority o£ 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. E. Inducements not offered: The Grantee, by accepting any franchise awarded hereunder acknowledges that it has not been induced to enter into the franchise by any understanding or promise or other statement, whether verbal or written, by or on behalf of the City concerning any term or condition of this franchise that is not included in this article. Sec. 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: Ordinance No. Page 13 1. 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. 2. If the Grantee should fail to provide or maintain in full force and effect the construction bond, letter of credit and habihty and indemnification coverages as required in this article. 3. If a petition is fried 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. 4. If a receiver, trustee or hquidator 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. 6. 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 apphcability of such order or ruhng 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. 9. 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 apphcation 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. B. 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. C. Effect of pending 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. D. Purchase of s/stem 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: 1. 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 2. 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. 3. 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. E. Restoration ofpub]ic 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 and approve the condition of the public ways and public places and cables, wires, attachments 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. F. 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 hst of such costs, or the City may recover such costs as provided in this article. G. Lesser sanctions: Nothing shall prohibit the City from imposing lesser sanctions or censures than revocation. H. Expiration; extended operation: Upon the expiration of a franchise, the City may, by resolution, on its own motion or request of the Grantee, require the Grantee to operate t. he franchise for an extended period of time not to exceed Ordinance No. Page 14 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. Sec. 12-4'12: Reports and records of the Grantee. A. Annual iinancia! 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 2. 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 reve' Due. B. Annua! £aci]ities'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 facihties 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. C. Annual serwce record report required: The Grantee shall make available to the City for its inspection at the Grantee's office, a hst 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. D. Annua! 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, F. Annual operations reports required: The Grantee shall frie 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: 1. If a nonpublic corporation, a hst of all current shareholders and bondholders both of record or beneficial. If a pubhc 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. 2. A current hst of all Grantee's officers and directors including addresses and telephone numbers. 3. The names of both business and residential adch'esses and phone numbers of the cable television system resident manager and engineer. 4. Two (2) copies of all types of subscriber agreements. Copies of individual subscribers' agreements are not to be fried with the City. 5. 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. 6. 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. G. Annual subscriber not#Ycation: Copies of all annual subscriber notifications required by the Federal Communications Commission. H. Application for certiiJcate of compliance: The Grantee shall give formal notice to the City that it is seeking a certificate of comphance from the Federal Communications Commission. Within five (5) calendar days upon £fling such a request with the Federal Communications Commission, the Grantee shall file two (2) copies of its application for certification with the City Clerk. I. Public availability o£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 Iowa City Telecommunications Commission. J. Correspondence: The Grantee shall, upon request of the City, frie with the City Clerk a copy of each petition, apphcation 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. Ordinance No. Page 15 K. City's access m records: 1. 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. 2. 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. 3. 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 granted under the ordinance may constitute pubhc 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. A. F~'lin~ fee: Applicants for an initial franchise hereunder shah pay a nonrefundable filing fee to the City of ten thousand dollars ($10,000.00) which sum shah be due and payable at the time of submission of the apphcation. B. Franchisin~ 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 shah be due and payable concurrently with the Grantee's acceptance of the franchise, to offset the City's costs in the franchise awarding process. C. Annum 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 shah be in addition to any other payment owed t? 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 forty-five (45) days prior to collection of an increased franchise fee. D. Method of computation; interest: 1. 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 shah be computed quarterly as. of March 31, June 30, September 30 and December 31 for the 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. 2. 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. E. Rights o£recomputation: No acceptance of any payment by the City shah 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 obhgation of the Grantee. All amounts paid shah be subject to audit and recomputation by the City. Ordinance No. Page 16 Sec. 12-4-14: Liability and indemnification. A. 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 stat, 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. B. Indemnification of City in franchise operation: It shall be expressly understood and agreed by and between the City and any Grantee hereunder that the Grantee shall save the City and its agents and employees harmless from and against all claims, damages, losses and expenses, including attorney's fees sustained by the City on account of any suit, judgment, execution, claim or demand whatsoever arising out of 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. C. 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. D. 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 comprehensive 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 hability for loss or damage, occasioned by the operations of Grantee under any franchise granted hereunder, in the amounts o£ 1. Two million ($2,000,000.00) for bodily injury or death to any one person, within the limit, however, of three milhon dollars ($3,000,000.00) 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. E. AutomobiIe 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 3. $500,000 for property damage per occurrence. F. 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. G. Inflation: To offset the effects of inflation and to reflect changing liabihty limits, all of the coverages, hmits, 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. H. Notice of cancellation or reduction o£ coverage: The insurance pohcies mentioned above shall 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. I. Evidence o£insurance filed with City Manager: Ail certificates of insurance shall be filed and maintained with the City Manager during the term of any franchise granted hereunder or any renewal thereof. J. Extent ofliab~Tity: 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 issued hereunder or for damages, either to the full amount of the bond or otherwise. K. Insurance £or 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 endorsements 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. Ordinance No. Page 17 Sec. 12'4'15: Bonds. A. Proposal bond: 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. B. 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 re- duced until thirty (30) days after receipt by the City Manager of a written notice of such intent to cancel or reduce the coverage. C. Re]ease o£t]ze 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 o£credJt: 1. The Grantee shall obtain, maintain, and tile with the City an irrevocable letter of credit from a financial insti- tution 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, hens and taxes due the City which arise by reason of the construction, operation or maintenance of the system. The letter of credit shall be released only upon expiration of the franchise or upon the replacement of the letter of credit by a successor Grantee. 2. Within thirty (30) days after notice to it that any amount has been withdrawn from the letter of credit pursu- ant 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. 3. 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. 4. If the Grantee wishes to contest withdrawal, the Grantee may petition to the Iowa City Telecommunications Commission for a hearing within ten (10) days from date notice of withdrawal is mailed or otherwise given. E. Replenishment o£ letter o£ 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. Sec. 12-4'16: Fees, rates and charges. A. Schedule t~]ings: 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 subscrib- ers 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. B. Nondiscriminatory rates: Unless otherwise allowed by FCC regulation, Grantee shall establish rates that are Ordinance No. Page 18 nondiscriminatory within the same general class of subscribers which must be applied fairly and uniformly to all subscribers in the franchise area for all services. Nothing contained herein shall prohibit the Grantee from offering (i) discounts to commercial and multiple family dwelhng 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 income residents. Grantee's charges and rates for all services shall be itemized on subscriber's monthly bills. C. 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. D. Rate regulation of the basic tier and charges: The City will follow FCC Rate Regulations. 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. E. Ability to petition: If apphcable, 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. F. Notitication o£charges: The Grantee may estabhsh charges for its services not specified in subsection (a) above; however, all such charges, including but not hmited to additional service, leased channel, discrete channel, and production rates shall be made pubhc 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. G. Deposits on advance payments to be approved: The Grantee sham receive no deposit, advance payment or penalty from any subscriber or potential subscriber other than those estabhshed in the schedule of charges previously filed with and/or approved by the City Council. H. Purchase o£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 apphcation for a franchise hereunder or hereafter shall be filed with and approved by the City. I. Subscriber refunds in addition to those authorized by the FCC: 1. If any subscriber of the Grantee of less than ten (10) days terminates services due to the Grantee's failure to render service to such subscriber of a type and technical quahty provided for herein; 2. If service to a subscriber is terminated by the Grantee without good cause; or 3. 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. J. Disconnection: Except as provided by FCC rate regulation, there sham 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. K. 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 apphcable 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. L. 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 Ordinance No. Page 19 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 c]~ange procedures: 1. Limitation on apphcation 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 rebel from the imposition of federal, state or local taxes or other legally imposed fees not contemplated in the most recent rate cletermination. 2. Review of rates: The Iowa City Telecommunications Commission shah review the Grantee's schedule of fees, rates or charges that are within the City's regulatory jurisdiction, upon application by the Grantee as herein provided or at any hme on its own motion. The Iowa City Telecommunications Commission shah submit such schedule and any contemplated modifications thereof, together with its recommendations, to the City Council as expressed in such a resoluhon. 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 Iowa City Telecom- munications Commission and the approval of the Council. No such resoluhon shah be adopted without prior pubhc 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 shah take effect until thirty (30) days after the approval of the rates by the City Council. 3. Documentation of request for increase: Any increase requests, in addition to other factors described in this sechon, shah be supported by a showing of increased costs for the existing services or proposed services and shah be filed in two (2) copies with the City Clerk. If a Grantee requests a change, it shah present in detail in writing the stahstical basis, in addition to other requirements as set out in this section, for the proposed fee change in accordance with FCC rules. 4. Records to be made available: For the purposes of determining the reasonableness of Grantee fees, rates or charges, Grantee records relating the same shah be made available to the City. Sec. 12'4-17: Pubhc, education and government connection to cable television sys~m. The Grantee shall provide upon request within the City one connection and monthly service for basic service and aH non-pay services to such pubhc, parochial and nonprofit private schools, the University of Iowa, City designated pubhc access facility, City and other government buildings and other agencies, provided that such designated locahons are within two hundred (200) feet of any network cable route. Initial installation shall be without charge. Rates for monthly service to residential or hving 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 hmitation 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, shah 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 shah be interconnected with other communities and cable companies as specified in the franchise. Sec. 12-4-19: Construction timetable for initial construction. A. Permit appIication: 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 shah 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. B. Commencement o£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 dihgence. C. Commencement o£operadon: Within twelve (12) months of the effective date of FCC certification, the Grantee shall commence operation within the meaning set forth in this ordinance. Ordinance No. Page 20 D. 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. E. Provisions o£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. F. 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 ff 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, 5. war, 6. national emergencies, 7. fire, 8. acts of God. G. ~en 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 (E) of this section shall commence with the effective date of a franchise granted hereunder. Sec. 12-4-20: Construction timetable for rebuild construction. A. Comp.liance wit]~ construction and technica] standards: Grantee shall construct, rebuild, install, operate and maintain its system in a manner consistent with all laws, ordinances, construction standards or guidelines, governmental requh'ements, 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. DeJays 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 bandwidt]~ capability: The Grantee shall install a cable network according to the following specifications: The initial system shall be designed to a capacity equivalent to a minimum of 750 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, apphcants 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. B. System conYi~ration: The Grantee shall design and construct the network using fiber to the node architecture, or better, 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. C. Protection of subscriber privacy mandatory: Grantee shall at all times protect the privacy of subscribers, as provided in this ordinance and other applicable federal, state, and local laws. D. Notice o£privacy provz'sions: 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: Ordinance No. Page 21 1. The privacy rights of the subscriber and the limitations placed upon Grantee with regard this ordinance hereof and all other apphcable federal, state, and local subscriber privacy provisions; 2. 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; 3. 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; 4. The period during which such information might be maintained by the cable operator; 5. The times and place at which the subscriber may have access to such information in accordance with this ordinance and other apphcable federal, state, and local law; 6. A request for the subscriber signature allows for use of personally identifiable information. E. Collection o£personally identil~able i~£ormation pro]~Jbited: Grantee shall not use or permit the use of the cable system to collect personally i~lentifiable 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 two-way transmission of any aural, visual, or digital 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. F. Disclosure o£subscriber in£ormation prohibited: Grantee shall not without the specific written authorization of the individual subscribers involved, sell or otherwise make available to any party any hst of the names and addresses of individual subscribers, any hst which identifies the viewing habits of individual subscribers, or any personal data, social security number, income and other data the Grantee may have on i'fie 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. G. Notices oYmonitorirg: 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 transmitted 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. H. 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. I. Monitoring devices: Grantee shall provide 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 sub- scriber. Such permission may be vahd 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 monitoring in accordance with the terms and conditions of the subscriber's contract with Grantee. J. Personally ]dentii~able i~£ormatio~: 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. K. 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 opportumty to correct any error in such information. L. Vie~virg 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 Ordinance No. Page 22 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. N. 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 pubhcation of personal information under the control of (Name of Grantee), including without hmitation, information regarding program selections or service uses. (Name of Grant- ee) 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 shah 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. Sec. 12-4-23: Performance measurements. A. Genera] requirements: Test procedures utihzed 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: 1. Require additional tests for cause at specific terminal locations at expense of the Grantee, and 2. Conduct its own inspections of the cable television system on its own motion at any time during normal business hours with reasonable advance notice. C. 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. A. Antennas and towers: Antenna supporting structures (towers) shah be designated for the proper loading zone as specified in the Electronics Industry Association's Specifications as amended from time to time. B. CompIiance with aviation requirements: Antenna supporting structures (towers) shall be painted, hghted, erected and maintained in accordance with all apphcable 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. C. City approTM] of construction pians: 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, po]e, 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. D. Contractor quaIiilcations: 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. E. Minimum interference: The Grantee's system and associated equipment erected by the Grantee within the City shah be so located as to cause minimum interference with the proper use of streets, alleys, and other pubhc 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 pubhc ways and places. No pole or other fixtures placed in any pubhc ways by the Grantee shah be placed in such a manner as to interfere with normal travel on such pubhc way. F. City maps: The City does not guarantee the accuracy of any maps showing the horizontal or vertical location of existing substructures. In pubhc rights-of-way, where necessary, the location shall be verified by excavation. G. Quality o£ 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 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. H. 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) Ordinance No. Page 23 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. A. ,4pprova] 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 wife-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. B. Requirements to use existingpo]es: 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 pubhc 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. A. 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. B. 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 fl-equent reporting if the Administrator determines it is necessary to better monitor the Grantee's progress. C. 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 Administrator prior to its distribution. Sec. 12-4'27: Channels to be provided. A. 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. B. 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. C. 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 converters at no additional charge to subscribers. D. Access channels: Grantee shall provide the public, educational and governmental access channels as specified in the franchise. The entities operating access channels shall, in cooperation with the Iowa City Telecommunications Commission, develop rules for such channels. Such rules shall be placed on file with the City Clerk. Sec. 12-4-28: Conditions of street occupancy: A. Approval of proposed 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. C. C]~anges 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. D. Use of existing poles or conduits: Nothing in this article or any franchise granted hereunder shall authorize the Ordinance No. Page 24 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. E. Underground installation: All installations shall be underground in those areas of the City where pubhc utihties 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 facihties 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. F. Pedestals: When housing mini-hubs, switching or other equipment are to be utilized on the pubhc right of way, such equipment must be completely buried beneath streets or sidewalks. Any pedestals located in the pubhc 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. G. ~'aci]it]e$ 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 pubhc 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 £L~tures placed in a street shall be placed in the right-of-way between the roadway and the property, as specified by the City. H. Method o£insta]]ation: 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 possible. 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, and no trenching or other underground installation shall be commenced without notice to the City Forester. All underground installation shall be performed in compliance with City Forester directions. I. Protect]on o££acil]ties: Nothing contained in this section shall reheve any person, company or corporation from hability 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 hne of any street or pubhc 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. J. Requests £or 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. K. Authority to trim trees: The Grantee may trim trees upon and overhanging streets, alleys, sidewalks and other pubhc 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. L. 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. Ordinance No. Page 25 M. O£tTce 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 pubhc 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 pubhc places of the City. Such maps shall be updated annually. N. 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, apphances or appurtenances thereto of the Grantee, such cutting or moving may be done and any repafl's rendered necessary thereby shall be made by the Grantee, at its sole expense provided that such repairs are not necessitated by neghgent act of the City, in which case, cost for repairs shall be borne by the City. 0. Alternate routing o£plant: 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. A. 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. B. Remora! 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 discr/minatory practices prohibited. A. P~ohibited empIoyment 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. 1. To discharge fi'om employment or refuse to hire any individual because of their race, color, religion, creed, sex, national origin, age, disability, marital status or sexual orientation. 2. To discriminate against any individual in term, conditions or privileges of employment because of their race, color, rehgion, creed, sex, national origin, age, disability, marital status or sexual orientation. The Grantee shall be an Equal Opportunity/AfSrmative Action Employer adhering to all Federal, State or municipal laws and regulations. Pursuant to 47 CFR Sec. 76.311 and other apphcable 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 EmploymentJAffirmative Action Opportunities. B. EmpIo~vment 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. C. Procurement: 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. D. Loca! employment and procurement practices: Whenever possible, all services, personnel, hardware and supphes for the construction, maintenance and operation of the system shall be procured locally. E. 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 fried with and approved by the City as provided in this ordinance. F. Fairness o£ accessibility: The entire system of the Grantee shall be operated in a manner consistent with the principle of fairness and equal accessibihty of its facilities, equipment, channels, studios and other services to all citizens, businesses, pubhc 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 Iowa City Ordinance No. Page 26 - Telecommunications Commission. Sec. 12-4-31: Installations, connections, and other services. A. 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 estabhshment 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. C. 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. D. Reconnection: Grantee shall restore service to customers wishing restoration of service provided customer shall first satisfy any previous obligations owed. E. 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. Down~rade and upgrade fees: Any downgrade or upgrade fees shall conform with FCC rules. Sec. 12-4-32: Service calls and complaint procedures. A. 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 hnes 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. B. Telephone service: The Grantee shall have ahsted, 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 pubhc. The Grantee shall provide an unlisted locally-staffed telephone number to the City 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. C. Grantee ru]es: The Grantee shall prepare and file with the City copies of all of its rules and regulations in connection with the handhng 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. D. 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. E. 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 pubhc of its sohcitation in a manner calculated to reach residents in the areas to be solicited in advance of such solicitation. F. Sa]es 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 apphcable; 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. 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 Ordinance No. Page 27 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 plain English. H. Notice o£comp]aintprocedures: 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. I. Investigation and remedz'a] action: 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 ff 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. Sec. 12-4-33: Transfer. A. 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 estabhsh that such transferee has the financial, legal and technical ability to fully perform all obhgations of the franchise. No such consent shall be required, however, for a transfer by mortgage to a federally 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 transfer within one hundred twenty (120) days after receiving such requested information, consent by the franchising authority shall be deemed given. B. 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 controlhng 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. C. Transfer o£contro]: The Grantee shall not change control of the Grantee in whatever manner exercised without the prior written consent of the City. D. City approval: 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. E. Assumption o£contro]: 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 herein below) (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 Ordinance No. Page 28 that such transfer, after considering the legal, financial, character, technical and other pubhc 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. During the six (6) month period or extended time, the finan- cial 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 £mancial institution, provided the financial institution complies in aH 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 comphance with the terms and provisions of this ordinance and the franchise during the entire aforementioned six (6) month period or extended time, ff 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. F. No ~vaiver of City property rights: The consent or approval of the City or any other pubhc entity to any transfer of the Grantee shah not constitute a waiver or release of the rights of the City in and to the pubhc property or public rights of way, and any transfer shaH, by its terms, be expressly subordinate to the terms and conditions of this ordinance and the franchise. G. 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 shah not approve a transfer ff the Grantee has not held the franchise for a period of three years. H. Right to rew'e~v purchase price: Based upon pubhc information, the City reserves the right to review the purchase price of any transfer or assignment of the cable system. I. Signatory requirement: Any approval by the City of transfer of ownership or control shah be contingent upon the prospective party becoming a signatory to the franchise agreement. Sec. 12-4-34: Publication costs. The Grantee shah assume the cost of publication of the franchise ordinance as such publication is required by law. A bill for the publication costs shah 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: Or~tlnances repealed. ' All ordinances are parts of ordinances in conflict with the provisions of this article are hereby repealed. Sec. 12'4'36: Separability. 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 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 ordl-ance. 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 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 contravention of rights except to the extent expressly waived by the City or expressly provided for in the franchise. DIVISION 2. RATE REGULATIONS Sec. 12'4-39: Rate regulation proceedings. Any rate regulation proceedings conducted under this division shah be in accordance with FCC rate regulations. A. 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 equip- ment 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 behef formed after reasonable inquiry. The City may request proprietary information, provided that the City shah consider a timely request from the cable operator that said proprietary information shah not be made available for public information, consistent with the procedures set forth in section 0.459 of the FCC rules and regulations. Ordinance No. Page 29 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 apphcable to administrative proceedings under the laws of the state to discover any information relevant to the rate regulation proceeding, including, but not bruited to, subpoena, interrogatories, production of documents and depositions. B. 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. C. 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 unreasonable 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. D. Consistent with the FCC rules and regulations, the City's decision may be reviewed only by the FCC. E. 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 reason' able inquiry. Sec. 12-4-40: Certification. The City shall file with the FCC the requixed certification as necessary. Sec. 12-4-41: 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. Sec. 12-4-42: Cable official. The City may delegate its power to enforce this division to the Iowa City Telecommunications 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 and make decisions or recommend decisions in conformity with this division. SECTION II. REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION III. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION IV. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and pubhcation, as provided by law. Passed and approved this __ day of ,2005. MAYOR ATTEST: CITY CLERK Approve~j ~ .~_ City Attorney's Office Ordinance No. Page 30 cabletv\enab~ng.doc 2005 FRANCHISE AGREEMENT BETWEEN THE CITY OF IOWA CITY AND MCC IOWA LLC (MEDIACOM) Page 1 of 47 TABLE OF CONTENTS I. NONEXCLUSIVE FRANCHISE ............................................................. 1 II. GPJINTED TO MCC IOWA LLC ............................................................ 1 III. RIGHT OF CITY TO ISSUE FRANCHISE ................................................ 2 IV. TERM ............................................................................................. 2 V. FRANCHISE NONEXCLUSIVE .............................................................. 2 VI. DEFINITIONS .................................................................................. 2 VII. SERVICE AREA ................................................................................................... 2 VIII. SYSTEM AND CAPACITY ............................................................................................ 3 IX. CONSTRUCTION .............................................................................. 7 X. SYSTEM SERVICES .............. ~ .............................................................................. 7 XI. ACCESS CHANNELS, EQUIPMENT, FACILITIES, AND SERVICES ............................................................................................ 8 XII. INTERCONNECTION ....................................................................... 11 XIII. SUBSCRIBER INFORMATION A_ND POLICY ........................................ 12 XIV. NON-DISCRIMINATION .................................................................. 14 XV~ R3tTES ................................................................................................. 14 XVI. FRANCHISE RENEWAL ................................................................... 14 XVII. POLICE POWERS.....[ ..................................................................... 14 XVIII. FRANCHISE FEE AND PERFORMANCE BOND .................................. 14 XIX. REGULATION, ............................................................................... 15 XX. REMEDIES ..................................................................................... 15 XXI. COOPERATION ..................................................................................... 16 Page 2 o£47 XXII. WAIVER .............................................................................................. 16 XXIII. CUMULATIVE PROVISION ........................................................................................... 17 XXIV. NO LIABILITY .......................................................................................... 17 APPENDICES A. General System Design Specifications B. Drop Technical parameters C. Delivery system equipment list D. Test equipment available to Iowa City within 24 hours E. Preventative maintenance program F. Franchisee's construction manual G. Cutover process H. Programming categories I. Free drop locations J. Access channel placement K. Access publicity L. Business and repair hours Page 3 of 47 BROADBAND TELECOMMUNICATIONS FRANCHISE AGREEMENT I. NONEXCLUSIVE FRANCHISE A. This section grants a thirteen-year nonexclusive Franchise to operate a cable television system to MCC Iowa LLC (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 and the Telecommunications Act of 1996, 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. II. GRANTED TO MCC Iowa LLC A. Purpose. Th~ purpose of this section is to award a Franchise, for a cable television system to MCC Iowa LLC. Franchisee will endeavor to provide top quality cable 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 and regulations adopted by the Iowa City 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 Page 4 of 47 the Mayor to provide such written acceptance. Immediately upon the taking effect of this Franchise Agreement, the prior franchise granted to MCC Iowa LLC 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. 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 thirteen (13) 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. V. 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 fights, 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. VII. SERVICE AREA. Page 5 of 47 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 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 system. 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 1/4 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. 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 Page 6 of 47 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 pm-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 to ensure that house moves follow the same or similar path. VIII. SYSTEM AND CAPACITY. A. System. The parties understand and agree that Franchisee shall construct a cable system which delivers cable television signals processed at 750 MHz utilizing a fiber to the node design or better. The system will be designed so that there are no more than five (5) amplifiers in cascade. Fiber optic receiver nodes loc~/ted throughout the plant will divide the distribution of cable signals to an average of 500 homes per fiber node or less. Further, Franchisee will provide 5-40 MHz upstream from each fiber node. The system shall be constructed and operated 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. B. Construction Timetable. If the Franchisee upgrades or rebuilds its system, the Franchisee shall notify the City of the extent and duration of construction. Two months prior to the initiation of construction of any system-wide upgrade or 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. After any upgrade or rebuild, Franchisee will inspect 100% of all fiber and coaxial cable to insure that it meets the specifications of the Ordinance and this Franchise and Franchisee will inspect and audit 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 any upgrade or rebuild and provide the City with the person's name and telephone number. Page 7 of 47 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. Drops. All drops not meeting the standards of the National Electric Safety Code or the technical 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. Services, Equipment and Facilities. Up to one year after new cable services, equipment, and/or facilities are offered by Mediacom Communications Corporation or its subsidiaries in: the City of Ames, Iowa; municipalities served by the same headend as Iowa City; municipalities served by the headend in Mason City; or municipalities served by the headend in Fairfield, excluding experimental and demonstration projects, Franchisee shall make new services, equipment and/or facilities available to all subscribers requesting such level of service. Such new services, equipment and/or facilities 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 Mediacom Communications Corporation or its subsidiaries in: the City of Ames, Iowa; municipalities served by the same headend as Iowa City; municipalities served by the headend in Mason City; or municipalities served by the headend in Fairfield. If the Franchisee believes that any such state-of-the- art features will not generate a reasonable rate of return over the remaining term of the Franchise Agreement; the Franchisee may request the City to relieve the Franchisee of such requirement. The City shall determine, taking cost, rate of return and rates into consideration, whether the Franchisee should be relieved of the requirement or whether the Franchisee can reasonably expect a reasonable return on investment during the remaining term of the Franchise Agreement and should provide such state-of-the-art feature. Franchisee shall be given an opportunity to present information to the City Council prior to a decision being made. Notwithstanding the above, no requirement to provide telephone service shall be required by this Section. 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, as needed, for subscribers not utilizing converters. The City Council may, in its discretion, extend the time for the Franchisee, acting in good faith, to provide new services, equipment and/or facilities. The timeframe for providing new services, equipment and/or facilities 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. Page 8 of 47 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 (1/2) 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 Citywide 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, local emergency alert system for use by the City if the City has filed all necessary plans required by state and federal emergency management agencies. Emergency messages can be initiated from any touch-tone phone with an access code. 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 D, attached hereto and incorporated by reference. K. Ongoing Preventive Maintenance. Franchisee will comply with the preventive maintenance program specified in Appendix E, attached hereto and incorporated by reference. L. Interference on Channel 19. Franchisee will not use Channel 19 for video, but for alphanumeric purposes, to avoid interference from radio/pagers. 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 Page 9 of 47 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. IX. CONSTRUCTION. A. System Design Review. The City shall have the authority to review the technical design plans of the system for any upgrade or rebuild 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 local regulations. 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 coaxial cable which meets manufacturer specifications. Franchisee shall perform end of the line test to ensure that the' coaxial cable plant tested performs according to Page 10 of 47 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 F, attached hereto and incorporated by reference. The Franchisee shall follow the permitting process as specified by the City. C. Underground Construction. Franchisee shall participate in and use Iowa One Call and ensure that cable is buried at a depth of a minimum 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 any upgraded or rebuilt 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 G, 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: 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. X. SYSTEM SERVICES. A. Additional Services. Franchisee shall provide 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 H, attached hereto and incorporated by reference. Prior to selecting all the new services to be offered after any upgrade or 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 H. 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 any consumer market survey Page 11 of 47 conducted on behalf of the City. The results of the consumer market survey will be provided to the City within thirty (30) days of completion. B. 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. C. 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 I, 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. D. 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-circuit 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 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. E. 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. F. Interactive Services. Franchisee shall provide one free cable modem and free cable modem/Internet service for all public schools. 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. Franchisee shall use its best efforts to maintain the number and channel position of the access channels as shown in Appendix J, attached hereto and incorporated by reference. Franchisee shall provide the following number of dedicated access channels: three (3) channels for government access; two (2) channels for educational access; one (1) channel for public access; and one (1) channel for Kirkwood Community College. Upon the City's request, Franchisee shall Page 12 of 47 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. 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, gi.ven 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 channels) 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 allow programming to be viewed within their respective municipalities while Iowa City programming continues to be viewed within the City of Iowa City. In the spectrum between 550 MHz and 750 MHz, and 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. The City may prescribe: rules and procedures under which the cable operator is permitted to use access channel capacity for the provision of other services if such channel capacity is not being used for the purposes designated; and rules and procedures under which such permitted use shall cease. 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 equivalent to fifty-five (55) cents per subscriber per month starting on the effective date of this franchise extension and, thereafter, until the conclusion of the fifth year of the term. At the beginning of the sixth year of the term and for the remainder of the franchise term, the Franchisee shall provide the City with payments, for the purposes listed above, in an amount equivalent to sixty (60) cents per subscriber per month. 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 Page 13 of 47 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 with annual payments based on a $189,923.44 annual payment for the calendar year 2005. 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 change in the CPI-U, U.S. Cities Average, published by the U.S. Department of Labor, using the base month of September each year. All annual payments shall be due January Ist of each year. D. Publicity. Franchisee agrees to provide the publicity services as specified in Appendix K, attached hereto and incorporated by reference. The Franchisee shall provide one hundred (100) run of scheduled public service announcements per month for use by the City or access channel operators. Production of the public service announcements will be the responsibility of the City or the access channel operators. 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, City Hall, 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. Page 14 of 47 G. Signal Quality. Franchisee shall assure that the access channel delivery system from the City Hall 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. Annually, or upon request by the City, Franchisee shall test the delivery system from the origination sites to ensure a high quality picture is provided to subscribers. Grantee shall use reasonable efforts to optimize the picture quality of the access channel delivery system. 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. The Franchisee shall provide two thirds of the costs of constructing origination capability to: Dubuque and Iowa streets; Clinton and Iowa streets; and an extension at the Library. The City shall pay one third of such costs. The costs shall not exceed the following: $23,505 for the origination site at Dubuque Street and Iowa Avenue; $32,499 for the origination site at Clinton Street and Iowa Avenue; and $7,200 for the library origination site extension to allow programming near the fountain. Franchisee shall construct the origination sites upon the written request of the City, starting in 2006. The City shall determine the order of construction of the sites and the timing for construction. The Franchisee shall not be required to construct more than one site per year. The Franchisee shall complete construction of each origination site no later than June 30th of the following calendar year upon receipt of a written request from the City. Franchisee shall design the origination site routing in cooperation with the City. In addition to the origination sites financed as described above, the Franchisee agrees to construct additional origination lines upon the request of the City, if the expense of the additional lines is borne by the City or other City designated entities, the cost for such origination lines shall not exceed the Franchisee's actual cost of construction. Any such additional fiber optic lines shall use the most efficient routing and shall be designed in cooperation with the City. 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 Page 15 of 47 and/or at the least cost, related to access programming origination distribution. Access to Franchisee's headend and equipment will be limited to Franchisee's personnel. Such personnel shall supervise any activity with regard to this section. B. University Cooperation. The Franchisee shall use its best efforts to accommodate the telecommunications 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 L, 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. Page 16 of 47 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-five (45) days from the date of termination of service. H. Outages. For service interruptions of over four (4) hours and up to fourteen (14) days, the Grantee shall provide, at the subscriber's verbal or written request, a credit of one-thirtieth (1/30) of one month's fees for affected services for each 24-hour period service is interrupted for four (4) or more hours. For service interruptions of over fourteen (14) days, the Grantee shall provide, at the subscriber's verbal or written request for a rebate, a credit of one month's fees for affected services. This provision shall not apply if the service interruption is the result of a cable system upgrade or rebuild. 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 Page 17 of 47 payment stations shall be open during normal business hours and be dispersed throughout the City. Franchisee shall continue to provide subscribers with the options to pay by telephone and through automatic withdrawal. L. TDD. Within 180 days of the effective date of this Franchise, Franchisee shall install a TDD machine or utilize a recognized third party agent such as Access Iowa 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 as specified in Appendix L. 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 paic[ 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. Company shall have the City's address and telephone number included on the subscriber's bills. At such time as the Company's billing system allows it, the Company shall increase the size of the City related information on the bills. Company shall, at least once annually, in the fall, provide a billing statement that informs subscribers of the availability of the Company's snowbird policy for residents that winter in another area. 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, gender identity, 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 employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, disability, gender identity, national origin, age, sexual orientation, or marital status. XV. RATES. The City shall have the ability to regulate rates in accordance with Federal law. Page 18 of 47 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. 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 or the 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 construction bond to City as specified in the Ordinance during the construction of the rebuild. Franchisee shall furnish a Letter of Credit of $75,000 which shall be replenished within ten (10) days of use by the City as specified in the Ordinance to a total amount of $500,000. 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 under the 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 Page 19 of 47 Consumer Protection and Competition Act of 1992 (Limitation of Franchise Authority Liability), or by any other provision of law. D. In addition to the above, Franchisee agrees to defend, indemnify, save and hold harmless City and other entities operating access channels in Iowa City, their officers, boards and employees from and against any liability for damages, including attorney fees and for any liability or claims resulting from any allegation that a public, educational or government access channel in Iowa City on the Franchisee's cable system has infringed upon the copyright or performance rights held by any person for music performed that is part of any locally originated programming cablecast over public educational or government access channels required as part of this Franchise. 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 damages shall not preclude the City from exercising the other enforcement provisions of the Ordinance, including revocation, or other statutory or judicially imposed penalties. Liquidated 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: $150/day for each day the violation continues; and Page 20 of 47 (4) For violation of customer service standards required by this Franchise, the Ordinance, or by FCC regulation: $150/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. (6) For violation of other material provisions of this Franchise or the Ordinance: up to $150/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 breach 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. Page 21 of 47 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on _, 2005. CITY OF IOWA CITY, IOWA A municipal corporation ATTEST: Mayor Witness MCC Iowa LLC Witness City Attorney's Offic~ Page 22 of 47 Appendices A. General System Design Specifications B. Drop technical parameters C. Delivery system equipment list D. Test equipment available to Iowa City within 24 hours E. Preventative maintenance program F. Franchisee's construction manual G. Cutover process H. Programming categories I. Free Drop Locations J. Access Channel Placement K Access publicity L. Business and Repair Hours Page 23 of 47 APPENDIX A General System Specifications (750 Mhz) Distribution - End of Line (~ Ch. 77) NCTA Standard methods: Carrier/Noise 46 2nd order beats 51 Triple order beats 51 Cross modulation 51 Tap outputs 54 MHz 9Db minimum Tap outputs 750 MHz 14Db minimum Fiber Link (output as node): Cartier/Noise 49 2nd order beats 63 3rd order beats 63 Cross modulation 63 Page 24 o£47 APPENDIX B Drop Technical Parameters Coaxial cable shall meet the requirements of SCTE IPS-SP-001 or ANSI/SCTE 15 2001 as specified to a bandwidth of 1000 MHz Page 25 of 47 APPENDIX C Delivery System Equipment Scientific Atlanta High Gain Model Gainmaker System Amps Scientific Atlanta Line extender Model Gainmaker Regal 1000 MHz line passives Times Fiber 625 T10 series feeder cable Times Fiber 875 T10 series trunk cable Page 26 of 47 APPENDIX D Test Equipment 1. Hewlett Packard Model # 8591C Spectrum Analyzer 2. Signal Analysis Meter - Wavetek MS 1400 A. Signal levels B. C/N ratios C. Hum in % 3. Wavetek Model 3 ST Bench Sweep 4. Wavetek Model SDA 5000 Field Sweep Meter 5. Comsonics Leakage Detector Model Sniffer Sleuth 6. Comsonics Leakage Detector Sniffer II & m's 7. FIS Optical Power Meter Model # OV-PM 8. Tekronix Model TV220 TDR Cable Tester 9. Tekronix Model TFS3031 Optical TDR Page 27 of 47 APPENDIX E Preventative Maintenance Procedures The Iowa City system is driven off for signal leakage each quarter. Leaks are logged and repaired by thc service technicians. All leakage logs arc kept on file in the Iowa City office. Page 28 of 47 APPENDIX F Mediacom Upgrade/Splicing Procedures (based on original document from Corporate dated 4/16/98) 1. Splicing specifications are provided by Mediacom, but due to resplice conditions, many locations become a custom build. For example - field decisions regarding the use of extension connectors (3- inch or 6-inch) to maintain proper spacing from the pole and to provide a uniform and straight entry into the equipment on the input and output sides. Most locations will require the input loop to be straightened and reformed (with Jackson/Lemco mechanical benders only - no boards, forms or hand- formed loops) with the proper spacing (see attached drawings). 2. All strand-mounted equipment, including amplifiers, directional couplers, splitters and power inserters will have input and output loops. Ifa power inserter falls at a location with a piece of feeder equipment, the feeder equipment (tap, directional coupler or line extender) should be on brackets with the power inserter mounted above it on the strand, just offsetting the bracket. Don't force the input loop! Taps are the only devices that do not require an input loop, EXCEPT at terminating taps. The loops at a terminating pole may be deleted in certain situations where the pole is accessible ONLY by climbing. 3. Grounding and bonding: a) All active components require either a bond or their own ground rod and vertical groundwire at the pole ~ ~^'"^"*~' prior to and after the active. b) All junction poles can be "share bonded" with the power or telephone vertical, but a split-bolt connector must be connected below the CATV strand. c) If local utilities allow, strand may be bonded to power or telephone. If no telephone or power vertical exists, install a full vertical and ground rod. d) For underground plant - no new grounds are required, and any existing grounds should be reconnected securely. 4. All rusted lashing wire clamps and straps are to be replaced. Tree guard shall be installed beneath the suspension clamp on all trunk or multiple cables. 5. On dual cable, two straps are placed in the bottom of each loop. Loops without two straps are to be brought up to Mediacom specifications where contractor work is being performed. Skip (no cut) poles do not have to be reworked, with the exception of straps, spacers, and lashing wire clamps. 6. Straight splices require an input loop, as well as the standard output loop. 7.' Do not place taps on preformed strand splices, deadends, or other obstructions. 8. Self-support cable shall be treated with the same specifications as any other cables. Split the cable from the messenger with great care so as not to damage the jacket. Use straps and spacers (55 inches Page 29 of 47 out from the suspension clamp), and Jackson/Lemco mechanical benders must be used to form the loops. Forming boards are not allowed. 9. Where possible, taps are to be placed 18 inches from the suspension clamp. When necessary, one may use a measurement of NO LESS THAN 12 INCHES to save a straight splice or extension connector. 10. When the combined length of multiple pieces of equipment would put the furthest connector beyond 4 feet from the suspension clamp, the equipment may be "split" into two separate pieces - which may then be spliced on each side of the pole. All other applicable specifications shall be adhered to, including length of doglegs, loops, etc. 11. Long, straight doglegs into equipment shall be the standard. There must be a minimum of 6 inches of straight cable into any connector. There must be a minimum of 4 inches of straight cable into any strap and spacer. 12. Any active house drops must have new "Snap-N-Seal" F connectors installed, with proper tools used for preparation and installation. When moving span clamps, install them no closer than 18 inches from the pole. 13. Mediacom mandated working hours are to be coordinated with Project Managers. Although local requirements may vary, the following is recommended: Trunk: Off- 12 midnight On - 6AM Answering service is to be notified before and after (by person coordinating nighttime splicing) Feeder: Off- 6AM On - 3:30 PM Areas to be affected by work must be logged on street sheets the previous day, and faxed to the Regional dispatch center No active system work is to be performed on weekends or holidays unless specified in advance by Mediacom personnel. 14. Signal levels of amplifiers, and end-of-line levels are to be noted on amplifier log sheets, and the control maps, during upgrade. Balancing is to be performed using channels 4, 58 or 70 (or applicable pilot channels) and two additional channels to be designated. Log sheets will be collected daily. 15. Street sheets showing daily work locations are required to be turned in to the project supervisor, before 8:30AM each day. 16. Wall maps are to be marked up daily for Mediacom, with all end-of-line levels posted, noting any added equipment or other design changes. 17. Contractors for Mediacom are required to provide magnetic identification signs for all tracks. Contract personnel will carry photo ID cards identifying them as contractors for Mediacom. 18. Proper splicing techniques are to be used at all times: a) Coring tools are required that leave a smooth edge on the coax sheath (Cablematic or Lemco tools) b) Center conductor cleaner tools must not damage copper cladding. The Plexiglas Y-190 tool works well. No metal blades are allowed. Center conductors must be cut to length in accordance with the connector manufacturer's specifications. EXPECT MEDIACOM TO REGULARLY INSPECT SPLICING. Page 30 of 47 19. Bishop #10 3-3/4" x 10' Electro-Seal tape will be applied to all housing to housing connectors. Do not apply Bishop tape to 90°, 180°, or other connectors. The tape may be cut in half for easier application in small spaces, but in any case should be stretched tight as it is wrapped. 20. In underground areas, all equipment will be securely mounted to the pedestal or closure with the proper mounting bracket. Taps may be mounted directly to the pedestal, if a proper mounting point exists. No equipment is to be left floating, or mounted to ground rods. 21. Pedestals will be replaced only if they are the incorrect size, or damaged. Dull paint is not a reason to replace an otherwise functional metal pedestal. 22. Safety a) Hard hats are to be worn whenever doing any aerial work. b) Cones are to be set out at rear and front of truck. c) Men Working signs shall be used when mandated. d) Flares shall be used when conditions warrant. e) Ladders must not be left unattended. f) Debris including staples, loose wire, pieces of shielding or center conductors, connectors, etc., must not be left unattended at the job site. General information 1. When applicable, use top feeder ports on amplifiers. 2. All splicing should conform to Mediacom's specifications regarding proper spacings, and uniform and straight entry. If done properly, no individual's splicing can be singled out from the rest (see attached drawings). 3. All equipment provided by Mediacom should be handled properly without abuse - including keeping it dry, secure, etc. Organized trucks do help. FIBER OPTIC CABLE SPECIFICATIONS AND NOTES 1. Underground fiber: Depth will vary from region to region - a 36 inch to 42 inch depth will be considered a minimum. One underground warning tape will be placed 12 inches above the cable. If all-dielectric fiber cable is used, an additional tape with an integral metallic locating conductor will be placed directly on top of the cable. Use Budco Brady stakes for above grade warning markers. DO NOT place stakes directly above the fiber path, or within the trench/plow path. NOTES: · Conduit being used for fiber will be of nothing less than a schedule 40. · Long distance fiber locators may be required due to long runs. 2. Aerial fiber: The "bag loop" in the fiber at the pole, on the attached drawings, is exaggerated for clarity, and should not be built as drawn. The loop at the pole should be a shallow, smooth curve that maintains a slight separation between the fiber sheath and the suspension clamp. Use Vikimatic (TVC) fiber optic warning tag - yellow or orange with black letters, to be attached to bottom of loop at pole, with tie wraps. Fiber lashing wire clamps will be placed on the pole side of the existing lashing wire clamps. Above existing coaxial cable loops, fiber will be attached using stainless steel cable straps. All fiber will be installed, no partial fiber reels will be brought back to the warehouse. All fiber lashbacks will be installed 10 feet from the pole. Fiber loops will be teardrop-shaped, hanging vertically, with manufacturer's bending radius specifications observed. Snowshoes WILL NOT be used as a bending form - and are not to be used AT ALL. Page 31 of 47 Node service cables should be lashed or strapped out along the strand - not coiled. 3. Fiber backlashes: Regional preferences or local codes may apply. All storage fiber is to be lashed to the strand (see attached drawings). MULTIPLE DWELLING UNITS (MDUs) 1. The upgrade process will generally provide a minimum +20dBmV input signal to an active or a lockbox serving a MDU complex. This may be reflected on the design maps as individual tap ports for 12 units and under, or a terminated feeder leg with signal level shown. Adjustments to the design may be necessary to properly provide signal for each building in a complex. 2. Any lockbox work, splitter updating, indoor amplification, or rewiring is the responsibility of the local technical operations personnel. 3. Construction personnel and a representative from the local technical staff should meet well in advance of the upgrade start date, to review the work necessary and coordinate efforts. 4. All lockboxes should be grounded with #6 copper at the input. Local codes regarding grounding and bonding should be followed. 5. Interior distribution amplifiers should be avoided, if at all possible. Outdoor line extenders, powered from the outside plant, are preferred. Page 32 of 47 This page is blank... Page 33 of 47 CON¢11~LK110N Sptf. ClPIdAqOklf~ CONPl~IJE,110N CONIS~LICqOIq 51~P-.ClPICAI'IOIq5 ~ ~ CONPll~L~qOkl ff~ClPICAqON~ CON5~LIC, llO~q 5pp. ClPIC:AllOk15 I'YPICAL- POi-P- C:ON~ll~U~l~ON APPENDIX G Cut over process The upgrade/rebuild will involve installing and activating fiber optic 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 fiber node is completed, it will be activated. The activation of one node will not interfere or interrupt the completion of a separate node. In the event the company is confronted with the loss of signal from more that one street at a time, the Company will make every possible effort to complete the work during minimal viewing, such as 12:00 a.m. or 6:00 a.m. or at the time recommended by the City. APPENDIX H Programming Categories for System-Wide Programming Science Fiction Programming Religious Programming Cartoon Programming Federal Government News Programming Educational Programming Pay Per Channel and Pay Per Program Programming International Programming Women's Programming Do-it yourself and Self Improvement Programming Children's Programming News Programming History Programming Comedy Programming Music Programming Sports Programming Arts Programming Black Entertainment Programming Hispanic Programming 10 APPENDIX I Free Drops Iowa City School Sites All schools and administration buildings Other Schools Regina Elementary Regina High School Willowwind School Kirkwood Community College Public Buildings City Hall Senior.Center Recreation Center Libraries Fire stations Broadway St. Neighborhood Center Pheasant Ridge Neighborhood Center PATV office City Cable Office Other Sites Future neighborhood centers Future access organization(s) sites Future City government administration buildings 11 Appendix J Access Channel Positions PATV Channel 18 Government Channel Channel 4 University of Iowa Channel 17 InfoVision Channel Channel 5 Library Channel 10 KTS .. Charmel 11 Iowa City Schools Channel 21 12 APPENDIX K Publicity 1. 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 provider (government, education, public). The Company reserves the right to approve content. 2. The Company agrees to allow billing messages or bill stuffers to be included in the subscribers' bills at the rate of 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 providers (government, education, and public). 13 APPENDIX L Business and Repair Hours Business Hours: 8 AM - 6 PM Monday-Friday 9 AM- 5 PM Saturday Service Hours: 8 AM- 5 PM Monday-Saturday On call- 24 hours per day, seven days a week 14 I 05-~7-05 ~. DRAFT MINUTES DRAFT IOWA CITY TELECOMMUNICATIONS COMMISSION MONDAY, APRIL 25, 2005 - 5:30 P.M. CITY CABLE TV OFFICE, 10 S. LINN ST.-TOWER PLACE PARKiNG FACILITY MEMBERS PRESENT: Gary Hagen, Brett Castillo, Kimberly Thrower, Terry Smith MEMBERS ABSENT: Saul Mekies STAFF PRESENT: Drew Shaffer, Mike Brau, Bob Hardy, Dale Helling, Sue Dulek OTHERS PRESENT: Kevin Hoyland, Susan Rogusky, Jon Koebrick, Beth Fisher RECOMMENDATIONS TO CITY COUNCIL The Commission unanimously approved motions to recommend to the City Council that they approve the franchise extension with Mediacom and adopt the Cable TV Enabling Ordinance as proposed. SUMMARY OF DISCUSSION Thrower moved and Castillo seconded a motion to recommend to the City Council that they approve the franchise extension with Mediacom. Smith said the franchise agreement is a good agreement for the City and thanked Mediacom for negotiating in a constructive, cooperative way. The motion passed unanimously. Castillo moved and Hagen seconded a motion to recommend to the City Council that they adopt the Enabling Ordinance as proposed. The motion passed unanimously. Castillo announced he was moving at the end of June to attend graduate school and will be resigning his seat on the Commission. Thrower announced that the April 25 meeting would be her last as she is moving out of the state. Hoyland reported that as the school year comes to a close there will be an increase in productions including graduation ceremonies and concerts on the school channel. Discussions have taken place with Regina representatives regarding placing programming on the school channel. Todd Leach, the library's main production personnel will be leaving the library. It is hoped his replacement will be in place before the end of May. Hardy said that City Channel 4 and Interactive Channel 5 are now able to provide information to TV Guide in a more timely manner. This will enable the Cable Division to have more timely information on the digital tier TV Guide. Castillo said that the Commission has gotten away from sending a representative to the PATV Board meetings and suggested that a representative schedule be drawn up. ELECTION OF OFFICERS Thrower nominated Terry Smith for chair. Castillo seconded and Smith was elected unanimously. Hagen nominated Mekies for vice-chair. Smith seconded the nomination and Mekies was unanimously elected. APPROVAL OF M1NUTES Thrower moved to approve the March 28, 2005 minutes. Hagen seconded and they were passed unanimously. Thrower moved to approve the corrected April 18, 2005 public hearing minutes. Hagen seconded and they were passed unanimously. ANNOUNCEMENTS OF COMMISSIONERS Castillo announced he was moving at the end of June to attend graduate school and will be resigning his seat on the Commission. Thrower announced that the April 25 meeting would be her last as she is moving out of the state. SHORT PUBLIC ANNOUNCEMENTS None. CONSUMER ISSUES Shaffer reported receiving 12 complaints. All that could be resolved have been. There were 2 complaints about rates being too high, 5 about technical problems, 2 about programming, and three about being placed on hold when calling Mediacom for extended periods of time. Koebrick said that the problems with the telephone system were due to some upgrades being made. Smith asked about the complaint aired at the franchise extension public heating. Castillo said he suggested to the person at the heating to contact Shaffer. Shaffer said he has not heard from him. Smith asked if there had been complaints regarding the recent rate increase. Shaffer said he has not seen an increase in rate- related complaints. Koebrick said the recent rate increase is the lowest percentage increase in a number of years. MEDIACOM REPORT Koebrick reported that he was pleased with the franchise extension public heating and said that Mediacom has come a long way in three years. Castillo said that Mediacom leases fiber optic cable from McLeod and asked who maintains that fiber. Koebrick said that McLeod maintains the fiber in their sheath and that Mediacom's contract with McLeod ensures that Mediacom will have a reliable source of fiber. UNIVERSITY OF IOWA REPORT No representative was present. SENIOR CENTER REPORT Rogusky distributed the SCTV program schedule. A 4-camera production at the Englert was recently shot. Taping of several performances is planned for May. IOWA CITY COMMUNITY SCHOOL DISTRICT REPORT Hoyland reported that as the school year comes to a close there will be an increase in productions including graduation ceremonies and concerts. Discussions have taken place with Regina representatives regarding placing programming on the school channel. Smith noted that the audio on the school board meetings is vastly improved. Hoyland said this is due in part to new audio equipment recently installed. Efforts to educate meeting participants on the use of microphones are planned and that should also help sound quality. PATV REPORT No representative was present. LEGAL REPORT Shaffer introduced Sue Dulek who will be providing legal services to the Commission. Dulek said she has nothing to report. KIRKWOOD REPORT No representative was present. LIBRARY REPORT Fisher reported that April and May would be less busy than the summer months, which are generally quite busy. Todd Leach, the library's main production personnel will be leaving the library. It is hoped his replacement will be in place before the end of May. A DVD disk changer failed and programming times were slightly reduced. A replacement changer has been ordered. MEDIA UNIT Hardy reported that demand for services from the Community Television Service remains quite high. Recent productions include a panel on the municipal power initiative and the Domestic Violence Intervention Project's 25th anniversary celebration. The time in use in March 2005 of InfoVision has increased 100% from March of 2004. This is due, in part, to the introduction of video-on-demand. The transfer to a Macintosh platform is anticipated for the first week in May. The Media Unit recently taped the Telecommunication Commission's franchise extension public hearing. The production allowed the City Channel staff an opportunity to work out any problems with sending a live signal from the library to any of the access channels. Hardy said that City Channel 4 and Interactive Channel 5 are now able to use a more timely method of providing information to those responsible for the digital tier programming guide. The new procedures permit shorter lead times for program listings and have a comment section where program descriptions can be placed. Hardy thanked Jon Koebrick for his assistance in making the service available. CABLE TV ADMINISTRATOR REPORT Shaffer reported that he has been monitoring legislation in the Iowa legislature regarding municipally owned telecommunications and cable TV systems. The bill's intent is to make it more difficult for municipalities to provide such services. Smith said the legislation sets up a structure a municipality must follow to start a telecommunicatiOns or cable TV service. Koebrick said that the bill requires a municipal telecommunications or cable TV service to fund the creation and operations from funds generated by the service. Shaffer said that nearly all municipally owned systems in Iowa have a municipally owned electric utility. Koebrick said that Reinbeck is the lone exception. RECOMMENDATION TO CITY COUNCIL ON CABLE TV FRANCHISE EXTENTION AND ENABLING ORDINANCE Thrower moved and Castillo seconded a motion to recommend to the City Council that they approve the franchise extension with Mediacom. Smith said the franchise agreement is good agreement for the City and thanked Mediacom for negotiating in a constructive, cooperative way. The motion passed unanimously. Castillo moved and Hagen seconded a motion to recommend to the City Council that they adopt the Enabling Ordinance as proposed. The motion passed unanimously. ATTENDANCE AT PATV BOARD MEETINGS Castillo said that the Commission has gotten away from sending a representative to the PATV Board meetings and suggested that a schedule be drawn up. Castillo volunteered to attend the next two meetings. Thrower said it is valuable for new members to become acquainted with the services and operations of PATV. PATV has always been willing to provide Commissioners with tours of the facility. Koebrick offered to provide a tour to Mediacom's facilities and operations at their Cedar Rapids facility. This has been provided in the past and was quite successful. It was agreed to wait until the new members to the Commission are appointed to set up a time. ADJOURNMENT Castillo moved and Hagen seconded a motion to adjourn. The motion passed unanimously. Adjournment was at 6:13 p.m. Respectfully submitted, Drew Shaffer Cable TV Administrator Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington Street, iowa City, IA 52240; 319-356-5030 ORDINANCE NO. 05-4160 ORDINANCE AMENDING TITLE '14, ENTITLED "UNIFIED DEVELOPMENT CODE," CHAPTER 3, ENTITLED "CITY UTILTIES," ARTICLE H, ENTITLED "SOLID WASTE," SECTION 8, ENTITLED "STORAGE OF SOLID WASTE" BY AMENDING SUBSECTION E, ENTITLED "LOCATION OF SOLID WASTE CONTAINER," AND BY ADDING A NEW SUBSECTION F, ENTITLED "DOWNTOWN SOLID WASTE CONTAINER CODE" TO ESTABLISH A PERMIT SYSTEM FOR STORAGE OF SOLID WASTE CONTAINERS IN THE DOWNTOWN PUBLIC RIGHTS-OF'WAY. WHEREAS, the City desires to clean up the downtown alleys, which are public rights-of-way; and WHEREAS, private parties currently use the City's rights-of-way to store solid waste containers and other containers; and WHEREAS, many of the solid waste containers presently in the downtown alleys are not clean and sanitary and pose health and safety hazards; and WHEREAS, if the solid waste containers are not kept clean and sanitary, the City bears increasing costs to clean the alleys; and WHEREAS, it is in the best interest of the City to establish a separate permit system for the placement of solid waste containers in the City's rights-of-way in the downtown alleys; and WHEREAS, it is in the best interest of the City to clean up the downtown alleys, which are public rights-of-way. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: SECTION I. AMENDMENTS. 1. Title 14, entitled "Unified Development Code," Chapter 3, entitled "City Utilities," Article H, entitled "Solid Waste," Section 2, entitled "Definitions" is hereby amended by adding the following: Downtown: The CB10 and CB5 zones as defined in the City's zoning code. Permit: The official document or certificate issued by the City Clerk or designee authorizing a person to place or maintain a solid waste container in the downtown public right-of-way. 2. Title 14, entitled "Unified Development Code," Chapter 3, entitled "City Utilities," Article H, entitled "Solid Waste," Section 8, entitled "Storage of Solid Waste," Subsection E, entitled "Location of Solid Waste Solid Waste Containers" is amended by repealing Paragraph 2 in its entirety and a new Paragraph 2 as follows: With the exception of the alleys in the downtown as provided in Section 14-3H-8F herein, commercial solid waste containers shall be stored upon private property unless both the owner of the container and the owner or operator of the premises have been granted written permission from the City Council, by way of written agreement, to use public property for such purposes. 3. Title 14, entitled "Unified Development Code," Chapter 3, entitled "City Utilities," Article H, entitled "Solid Waste," Section 8, entitled "Storage of Solid Waste" is hereby amended by adding a new Subsection · . F, entitled "Downtown Solid Waste Container Code" as follows: Permit Required No person shall place or maintain any solid waste container on the public right-of-way in the downtown without first obtaining a permit. Deadline All solid waste containers presently in the downtown public right-of-way shall be removed within sixty (60) days of the effective date of this ordinance, unless a permit has been issued. System A permit system shall be adopted by resolution. Ordinance No. 05-4160 Page 2 SECTION II. REPEALER. All ordinances and parts of ordinances in conflict with the provision of this Ordinance are hereby repealed. SECTION III. PENALTIES FOR VIOLATION.: Violation of this Chapter shall be a municipal infraction punishable by a penalty of $250 for a person's first violation, $500 for the second offense, and $750 for the third offense. SECTION IV. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION IV. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and publication, as provided by law. Passed and approved this 17 th. day of hla,y ,2005 CITY'~LERK Approved by City Attorney's Office sue/ord&res/dumpster-ord~2oc Ordinance No. 05-4160 Page 3 It was moved by Vanderhoef and seconded by 0' Donnel 1 that the Ordinance as read be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Bailey X Champion X Elliot[ X Lehman X O'Donnell X Vanderhoef X Wilbum First Consideration 5/6/05 Voteforpassage:AYES: Bailey, Champion, Elliott, Lehman, 0'Donnell, Vanderhoef, Wilburn. NAYS: None. ABSENT: None. Second Consideration ................... Vote for passage: Date published 5/25/05 Moved by Vanderhoef, seconded by Bailey, that the rule requiring ordinances to be considered and voted on for passage at two Council meetings prior, to the meeting at which it is to be finally passed be suspended, the second consideration and'vote be waived and the ordinance be voted upon for final passage at this time. AYES: Champion, Elliott, Lehman, 0'Donnetl, Vanderhoef, t~i]burn, Bailey. NAYS: None. ABSENT: None.