The voters of the City of Carroll approved at a special election on February 17, 1998, two propositions: authorizing the establishment of a municipally owned broadband cable communications or television system (including video, voice, telephone, data, and all other forms of communications and cable communications) utility, and placing the management and control of such system in a Board of Trustees consisting of five trustees. Pursuant to said election and Chapters 364 and 388 of the Code of Iowa, there was established the Carroll Communications Utility and Carroll Communications Utility Board of Trustees. Ordinance 9812 and Resolution 9832 established said Utility and said Board, both passed by the Council on March 30, 1998. However, on October 21, 1998, the Supreme Court of Iowa ruled in the case of Iowa Telephone Association v. City of Hawarden, docket No. 145/97-83 that a city’s ordinance containing authority for a telephone utility was invalid. This ruling was reconsidered and amended by ruling filed February 17, 1999, holding that any “cable provider” including a municipality is allowed to provide telephone service as well. Therefore, the City finds it necessary and appropriate to reconstitute the Carroll Communications Utility and Carroll Communications Utility Board of Trustees in their original form as created by the Council in Resolution 9832 and Ordinance 9812. The Board created by Ordinance 9812 and Resolution 9832 and all actions taken by that Board are ratified and reaffirmed to the fullest extend not inconsistent with the two law changes. Ordinances 9828 is repealed.
The Mayor shall appoint the Board members, subject to approval of the Council. The Council shall by resolution provide for staggered six-year terms and shall set the compensation for the Board members. A Board member appointed to fill a vacancy occurring by reason other than the expiration of a term is appointed for the balance of the unexpired term. A public officer or a salaried employee of the City may not serve on the Utility Board.
The Utility Board may be a party to legal action. The Utility Board may exercise all powers of the City in relation to the City Communications Utility it administers, including but not limited to the power to fix fees and charges, collect and disburse money, enter into contracts for services, incur debts, employ and discharge managers and employees and such other persons as are necessary to carry out the purposes of the Utility. The powers of the Board are subject to the following exceptions:
1. The Board may not certify taxes to be levied, pass ordinances or amendments, or issue general obligation or special assessment bonds.
2. The title to all property of the City Communications Utility must be held in the name of the City but the Utility Board has all the powers and authorities of the City with respect to the acquisition by purchase, condemnation or otherwise, lease, sale or other disposition of such property and the management, control and operation of the same, subject to the requirements, terms, covenants, conditions, and provisions of any resolutions authorizing the issuance of revenue bonds, pledge orders or other obligations which are payable from the revenues of the City Communications Utility, and which are then outstanding.
3. The Board shall make to the Council a detailed annual report, including a complete financial statement.
4. Immediately following a regular or special meeting of the Utility Board, the Secretary shall prepare a condensed statement of the proceedings of the Board and cause the statement to be published in a newspaper of general circulation in the City. The statement must include a list of all claims allowed, showing the name of the person or firm making the claim, the reason for the claim, and the amount of the claim. Salary claims must show the gross amount of the claim except that salaries paid to persons regularly employed by the Utility, for services regularly performed by them, must be published once annually showing the gross amount of the salary.
The Utility Board shall control tax revenues allocated to the Carroll Communications Utility it administers and all money derived from the operation of the Carroll Communications Utility, the sale of utility property, interest on investments or from any other source related to the Carroll Communications Utility. All Carroll Communications Utility money received must be held in a separate utility fund, with a separate account or accounts for each City utility or combined utility system. Money may be paid out of the Carroll Communications Utility account only at the direction of the Utility Board.