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As used in this chapter:
(a) "Community antenna system", "CATV system" or "wired city" means any facility which originates or transmits or distributes electronic or other signals to subscribers or others for which a fee or fees may be charged, including video and/or audio signals from operating television stations and AM and FM radio stations, but not limited to such signals. Specifically included as permissible are services, transmissions, distributions and/or programming originated by or on the system or by others with the system's consent.
"Community antenna system" shall not be applied to the following facilities:
(1) A facility servicing fewer than fifty subscribers;
(2) A facility servicing one or more rental complexes, including apartments and/or townhouses and/or single dwellings under the same ownership, control or management, and including commercial establishments located on the premises of such a rental complex or complexes;
(3) A facility servicing individual hotels or motels or more than one hotel and/ or motel under the same ownership, control or management; or
(4) A facility owned and operated by a nonprofit organization, with service limited to the premises of such nonprofit organization.
(b) "Operator" means any person, partnership, firm, company, corporation or association operating a community antenna system and holding a permit granted by an ordinance of Council to operate the same within the corporate limits of the City.
(c) "Transmission and distribution", "carriage and/or utilization" and "origination" means methods, techniques and procedures in the operation of a community antenna system as authorized by the Federal Communications Commission, either by virtue of enabling rules and regulations or in the absence of prohibiting rules and regulations.
(Ord. 123-76. Passed 6-17-76.)
Considering the concept of the "wired city" to be valid and believing that it will not only become a reality in the foreseeable future but will require a combination of cable and off-the-air transmission for the ultimate in services, the philosophy of Council is as follows:
(a) In setting forth the guidelines for the operation of CATV, this for all practical purposes being the beginning of a "wired city", insofar as Council may do so without being in conflict with rules and regulations of the Federal Communications Commission, it is the intent to make possible the offering of a variety of services, while at the same time affording the City and its residents maximum protection.
(b) In these guidelines is recognition of the right of the operator to have a profitable enterprise and to return invested capital to stockholders with a gain.
(c) In summation, the philosophy might be stated as one based on mutual good faith, as involving the City, its residents and the operator.
(Ord. 123-76. Passed 6-17-76.)
Underscoring certain pertinent facts having to do with communication ventures, primarily radio and television type services, which are considered relevant to the enabling legislation for CATV and which are detailed herein, it is the stated intention of Council not to impose unreasonable ceilings on rates to subscribers, which rates in the final analysis, under the free enterprise system, will be dictated by the subscriber, and not by the operator or some regulatory body; nor to specify unrealistic fees to be paid by the operator to the City.
(a) The speculative nature of a CATV system required to compete in and to meet the demands of a "wired city", without the benefits or protection of an exclusive operator's permit, is hereby noted, together with a need for substantial risk capital on a long term basis.
(b) Restricted broadcast competition for radio and television stations, a monopolistic condition created by FCC allocation tables or spectrum limitations, is hereby noted.
(c) That broadcast stations pay no fees to anyone for using the public's air space for the transmission of their signals is hereby noted.
(d) That broadcast stations are subject to no rules or regulations of the Federal government, where the right of regulation is solely vested, establishing maximum charges for advertising or imposing a pre-determined rate of return on investment, is also hereby noted.
(Ord. 123-76. Passed 6-17-76.)
Conversely, but as another facet of the mutual good faith philosophy introduced in part in Sections 820.02 and 820.03, it is the stated intention of this chapter to require maximum value service for subscribers in the City. Therefore, Council retains the option, to be exercised upon recommendation of the Mayor, for a thorough annual review to ascertain:
(a) The fairness of the operator's rates;
(b) Whether the fees paid to the City in previous years by the operator were adequate and/or justifiable, each as measured against the service or services being rendered subscribers; and/or
(c) Whether the operations authorized hereunder continue to be in the public interest.
(Ord. 123-76. Passed 6-17-76.)
In order for the operator to meet the prerequisites of maximum value service to subscribers, his or her system necessarily must be viable and a worthwhile investment for ownership; otherwise, operating funds for optimum service and sufficient additional capital for expansion and extension of service in the future, as both anticipated and desired by Council, will not be available.
It is to be emphasized that Council, with such an understanding as expressed in this section, will never act capriciously or arbitrarily with its right of review as set forth in Section 820.04, and no review will be undertaken and no action detrimental to the operator will be proposed as a result of such a review, which have been motivated by the operator's profit and loss record alone. The overwhelming issue in any and all reviews will be the propriety of charges for service versus the service itself, this being of far greater import to Council than payments to the City.
(Ord. 123-76. Passed 6-17-76.)
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