820.03 INTENT; FINDINGS.

   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.)

820.04 MAXIMUM VALUE SERVICE REQUIRED; ANNUAL REVIEW.

   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.)

820.05 CONSIDERATIONS FOR REVIEW.

   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.)

820.06 SCOPE OF SERVICE AND OPERATIONS.

   In addition to conventional services currently being offered by operating community antenna systems, including the signals of TV, AM and FM stations and also programming originated by the operators, this chapter, anticipating the future of a "wired city", specifically covers the following:

   (a)   Pay television, programming for which a special or extra fee is charged, if authorized by the Federal Communications Commission and if such service is offered by the operator.

   (b)   The sale of advertising in connection with locally originated programming, if such sales are authorized by the Federal Communications Commission and if such sales are made by the operator.

   (c)   Any other service or services involving the use of electronic signals, if authorized by the Federal Communications Commission and if such additional services are offered by the operator.

(Ord. 123-76. Passed 6-17-76.)

820.07 CHAPTER AS ENABLING ORDINANCE.

   This chapter is an enabling ordinance authorizing the operation of CATV systems in the City, but it does not take the place of any franchise, license or permit which may be additionally required of the operator by law, either currently or at some later date.

(Ord. 123-76. Passed 6-17-76.)