CHAPTER 3-09
CABLE

SECTIONS:

3-09-001-0001    PURPOSE

3-09-001-0002    DEFINITIONS

3-09-001-0003    CABLE LICENSE REQUIRED

3-09-001-0004    GRANT OF CABLE LICENSE

3-09-001-0005    TRANSFERS OF CABLE LICENSES

3-09-001-0006    CABLE LICENSE CHARACTERISTICS

3-09-001-0007    RATE REGULATION

3-09-001-0008    NO RECOURSE AGAINST CITY

3-09-001-0009    ACTS AT LICENSEE’S EXPENSE

3-09-002-0001    APPLICATIONS FOR CABLE LICENSE GRANTS, RENEWALS OR TRANSFERS

3-09-002-0002    APPLICATIONS - FEES

3-09-002-0003    APPLICATIONS FRO INITIAL OR RENEWAL LICENSE

3-09-002-0004    CABLE LICENSE TRANSFER APPLICATIONS

3-09-002-0005    APPLICATIONS - LEGAL QUALIFICATIONS

3-09-002-0006    TIMING AND REVIEW OF APPLICATIONS

3-09-002-0007    REVIEW OF TIMELY CABLE ACT RENEWAL APPLICATIONS

3-09-002-0008    REVIEW OF OTHER INITIAL AND RENEWAL LICENSE

3-09-002-0009    STANDARDS FOR REVIEW OF TRANSFER APPLICATIONS

3-09-002-0010    APPROVAL OR DENIAL OF CABLE LICENSES

3-09-002-0011    NO EFFECT ON 47 U.S.C. § 546(H)

3-09-003-0001    FACILITIES CONSTRUCTION STANDARDS; APPLICATION

3-09-003-0002    FACILITIES SYSTEM CONSTRUCTION

3-09-003-0003    LOCATION OF EQUIPMENT

3-09-003-0004    REPAIRS

3-09-003-0005    RELOCATION - PUBLIC PROJECTS

3-09-003-0006    UTILITY RELOCATIONS

3-09-003-0007    TEMPORARY RELOCATION UPON REQUEST

3-09-003-0008    TREE TRIMMING

3-09-003-0009    CONTRACTORS AND SUBCONTRACTORS

3-09-003-0010    CONSTRUCTION COORDINATION

3-09-003-0011    INTERCONNECTION

3-09-003-0012    ABANDONMENT:

3-09-004-0001    SERVICE - TIME FOR EXTENSION

3-09-004-0002    SERVICE - MINIMUM CUSTOMER SERVICE STANDARDS

3-09-004-0003    SERVICE - NO DISCRIMINATION

3-09-004-0004    SERVICE - PRIVACY

3-09-004-0005    SERVICE - TECHNICAL STANDARDS

3-09-004-0006    SERVICE - MAINTENANCE

3-09-005-0001    OVERSIGHT - BOOKS AND RECORDS

3-09-005-0002    OVERSIGHT - REPORTS

3-09-005-0003    OVERSIGHT - RECORDS

3-09-005-0004    OVERSIGHT - TESTING

3-09-006-0001    LICENSE FEE

3-09-007-0001    ENFORCEMENT/SECURITIES - INSURANCE AND INDEMNIFICATION

3-09-007-0002    ENFORCEMENT/SECURITIES - LETTER OF CREDIT AND BONDS

3-09-007-0003    ENFORCEMENT/SECURITIES - RIGHTS RETAINED

3-09-007-0004    ENFORCEMENT/SECURITIES - REVOCATION AND TERMINATION

3-09-007-0005    ENFORCEMENT/SECURITIES - BANKRUPTCY

3-09-007-0006    ENFORCEMENT/SECURITIES - EFFECT OF REVOCATION OR ABANDONMENT

3-09-007-0007    ENFORCEMENT/SECURITIES - REMEDIES CUMULATIVE

3-09-007-0008    ENFORCEMENT/SECURITIES - PUBLICATION

3-09-001-0001 PURPOSE

This Chapter is adopted for the purpose of establishing the procedures, policies, terms, and conditions for granting, modifying, renewing, transferring, and regulating Cable Licenses.

3-09-001-0002 DEFINITIONS

When used in this Chapter, the following terms shall have the meaning given in this Section. The word "shall" is always mandatory. The word "may" is discretionary. References to any government official or office also refer to any official or office that succeeds to any or all of the responsibilities of the named official or office. References to laws or applicable laws include federal, state and local laws and regulations. Unless otherwise stated, references to laws include laws now in effect, as the same may be amended from time to time, and new laws. Any word or phrase not defined in this Section shall have the same meaning as in 47 U.S.C. § 521 et seq. ("Cable Act") and associated Federal Communications Commission ("FCC") rules and regulations. Otherwise, words shall have their ordinary and common meaning.

A.    "Affiliate" means any Person who owns or controls, is owned or controlled by, or is under common ownership or control with a Licensee.

B.    "Applicant" means any Person submitting an application within the meaning of this Chapter; in the case of a Transfer, the Applicant is the transferee.

C.    "Cable System" is any facility that is a cable system under the Cable Act, or that is a "cable television system" under Arizona law. A reference to a Cable System refers to any part thereof, and any devices, structures or facilities appurtenant thereto, including, by way of example and not limitation, equipment cabinets.

D.    "Cable License" means the authorization granted by the City to a Cable System operator giving the operator the non-exclusive right to occupy, place or use facilities upon, across, beneath or over any Public Right-of-Way in the City to provide cable service within a License Area. The term Cable License does not include

1.    Any other permit or authorization required by applicable law for transacting and maintaining a business within the City;

2.    Any other permit, agreement, or authorization required for using Public Rights-of-Way or other public property including, by way of example and not limitation, street cut permits.

E.    "Construction," "operation," "repair," and similar formulations of those terms, means any actions associated with servicing the Cable System such as installation, extension, maintenance, replacement of components, relocation, undergrounding, grading, site preparation, adjusting, testing, make-ready, excavation, tree trimming, and management of the same. Reference to these terms should be construed as broadly as permitted under applicable law.

F.    "License Area" means the area of the City that a Licensee is authorized to serve by its Cable License.

G.    "Licensee" means any Person holding a Cable License.

H.    "Overbuild" means a Cable System constructed to serve Subscribers in an area of the City served by an existing Cable System.

I.    "Person" means an individual, partnership, association, joint stock company, organization, corporation, or any lawful successor thereto or transferee thereof, but such term does not include the City.

J.    "Rights-of-Way" means the surface of, and the space above and below, any public street, road, highway, freeway, lane, alley, path, court, sidewalk, parkway, or drive, or dedicated utility easement, or similar property in which the City now or hereafter holds any property interest, which, consistent with the purposes for which it was dedicated, may be used for the purpose of installing and maintaining a Cable System.

K.    "Subscriber" means any Person who lawfully receives cable service.*

L.    "Transfer" means any transaction in which:

1.    The Cable System is sold or assigned;

2.    There is any change, acquisition, or transfer of control of the Licensee or its direct or indirect parents, whether by merger, consolidation, sale of assets or ownership interests, or by any other means. A Transfer shall be deemed to have occurred whenever there is a change, acquisition or conveyance of control of a general partner, or of more than a twenty percent (20%) ownership in a Licensee or its direct or indirect parents by any entity, or a group of entities acting in concert. However, a Transfer also occurs whenever there is a change in actual working control, in whatever manner exercised, over the affairs of a Licensee or its direct or indirect parents.

3.    The rights and/or obligations held by a Licensee under a Cable License are transferred, sold, assigned, or leased, in whole or in part, directly or indirectly, to another party.

3-09-001-0003 CABLE LICENSE REQUIRED

Except as provided by applicable law, it is unlawful for a Person to construct or operate a Cable System without a valid Cable License.

3-09-001-0004 GRANT OF CABLE LICENSE

The City may grant one or more Cable Licenses in accordance with and subject to the provisions of the City Charter and this Code. Nothing contained in this Code is, nor should it be construed to be, a contract between the City and a Licensee. Nothing contained in this Code, or in a License granted pursuant to this Code, prohibits, or should be construed to prohibit, the City from amending and applying this Code.

3-09-001-0005 TRANSFERS OF CABLE LICENSES

A.    Transfers shall not occur without the City’s prior written approval, except where a request for approval or sale is subject to a deadline for action under 47 U.S.C. § 537, and the City fails to act by the time required under 47 U.S.C. § 537. The City, among other remedies, may terminate the License if it is transferred without the City’s approval. The granting of approval for a Transfer in one instance shall not render unnecessary the City’s approval of any subsequent Transfer.

B.    Notwithstanding the foregoing, the City’s prior approval is not required for the following:

1.    Pledges in trust or mortgages of the assets of, or a grant of a similar security interest in, a Cable System or Cable License to secure the construction, operation or repair of the Cable System; provided that

a.    Arrangements are not made that would prevent a Licensee or any successor from complying with the Cable License and applicable law;

b.    Arrangements do not permit a third party to succeed to the interest of a Licensee, or to own or control the Cable System, without the City’s prior consent;

c.    Any such mortgage, pledge, or security interest will be subject and subordinate to the rights of the City under the Cable License and/or applicable law.

C.    A License may provide exemptions for Transfer of the Cable System or Cable License for closely held corporations, or for transactions involving an affiliate under common ownership and control of a Licensee, where an applicant for a License shows that, because of its corporate form, the general definition of Transfer would apply to transactions which are unlikely to have any effect on the City or on Subscribers. Provided that, with respect to affiliate transactions that under a License will not require the City’s prior consent the exemption shall not be effective unless:

1.    The transferor notifies the City of the Transfer at least sixty (60) days before it occurs, and describes the nature of the Transfer, and submits complete information describing who shall have direct and indirect ownership and control of the Cable System after the Transfer;

2.    The transferee warrants that it has read, accepts, and agrees to be bound by each and every term of the Cable Television License and related amendments, regulations, ordinances, and resolutions then in effect;

3.    The transferee agrees to assume all responsibility for all liabilities, acts, and omissions known and unknown of its predecessor Licensees for all purposes, including renewal;

4.    The transferee agrees that the Transfer shall not permit it to take any position or exercise any right which could not have been exercised by its predecessor Licensee;

5.    The transferee warrants that the Transfer shall not adversely affect the ability of the Licensee to perform its obligations, post-Transfer;

6.    Both the transferor and transferee warrant that customer service, rates and services provided to the City, shall not be adversely affected solely as a result of the Transfer or changes planned for operations in connection with the Transfer;

7.    The Licensee notifies the City that the Transfer is complete within thirty (30) business days of the date the Transfer is complete; and

8.    The transferee agrees that the Transfer does not affect any evaluation of its legal, financial, or technical qualifications that may occur under the Cable Television Franchise or Applicable Law after the Transfer, and does not directly or indirectly authorize any additional Transfers.

3-09-001-0006 CABLE LICENSE CHARACTERISTICS

A.    A Cable License is non-exclusive and does not explicitly or implicitly preclude the City from granting other Cable Licenses or affect the City’s right to construct, operate, or maintain its own Cable System.

B.    All privileges prescribed by a Cable License are subordinate to any prior lawful occupancy of Public Rights-of-Way. The City has the right to designate where a Licensee’s facilities may be placed within Public Rights-of-Way.

C.    A Cable License is a privilege held in public trust by the Licensee.

D.    A Licensee shall not require a Subscriber or a building owner or manager to enter into an exclusive contract as a condition of providing or continuing cable service. However, nothing prevents a Licensee from entering into an otherwise lawful exclusive consensual arrangement with a building owner or manager of a multiple dwelling unit or commercial Subscriber.

E.    Nothing in any Cable License shall be read to waive any of the City’s governmental rights or police powers.

3-09-001-0007 RATE REGULATION

The City may regulate rates and charges of each Licensee, and order refunds of unreasonable rates charged, except to the extent that it is preempted from doing so by applicable law. The City shall follow any applicable state or federal procedures for reviewing rates.

3-09-001-0008 NO RECOURSE AGAINST CITY

Every Cable License granted pursuant to the provisions of this Code shall provide that, to the fullest extent permitted by Arizona law, without limiting such immunities as the City or other Persons may have under applicable law, a Licensee shall not have any monetary recourse against the City or its officials, boards, commissions, public agencies when acting on the City’s behalf, or employees for any loss, costs, expense, or damage arising out the construction, operation or repair of its Cable System, or the activities of the City or any entity authorized by the City to use Public Rights-of-Way or other public property unless the same was caused by the City’s criminal acts or gross negligence. Nothing in this section waives claims a Licensee might otherwise have against third parties.

3-09-001-0009 ACTS AT LICENSEE’S EXPENSE

Any act that a Cable License or this Ordinance requires or allows a Licensee to perform, shall be performed at the Licensee’s expense, unless expressly provided for otherwise in the Cable License or in this Ordinance.

3-09-002-0001 APPLICATIONS FOR CABLE LICENSE GRANTS, RENEWALS OR TRANSFERS

An application shall be filed with the City for:

A.    Grant of an initial Cable License;

B.    Renewal of a Cable License, except that an application is not required for a proposal for renewal submitted pursuant to 47 U.S.C. §546(h);

C.    Transfer.

All applications shall be available for public inspection unless otherwise provided by applicable law.

3-09-002-0002 APPLICATIONS - FEES:

An applicant for the grant, renewal or transfer of a cable license shall reimburse the City for all expenses incurred by it in reviewing the application. Each application shall be accompanied by a check for five thousand dollars ($5,000.00), which shall be credited against the amounts owed. The City may submit invoices to an applicant from time to time to recover its expenses, which invoices shall be paid within thirty (30) days of rendering. If the grant, renewal or transfer is not approved, any amounts paid by an applicant, but not actually expended by the City, shall be returned to the applicant. Nothing herein prevents an applicant from claiming that a particular application fee, as applied, violates 47 U.S.C. § 542. If the grant, renewal, or transfer is approved, City at its option will refund the application fee/invoices paid by applicant or credit this amount against the license fee payment until fully refunded. (Ord. 2017-04, Amended, 05/16/2017)

3-09-002-0003 APPLICATIONS FOR INITIAL OR RENEWAL LICENSE

An application for an initial or renewal cable license shall be in a form prescribed by the City Manager, or if there is no form, shall provide the following information and additional information, if any, required by Federal or State law.

A.    The names and addresses of persons authorized to act on behalf of the applicant with respect to the application;

B.    The name and address of the applicant and identification of applicant’s ownership and control, including the names and addresses of the ten (10) largest holders of an ownership interest in the applicant and all persons in the applicant’s direct ownership chain;

C.    A Demonstration of the applicant’s technical ability to construct and/or operate the proposed cable system, including identification of key personnel;

D.    A demonstration of the applicant’s legal qualifications to construct and/or operate the proposed cable system;

E.    A statement prepared by an independent certified public accountant or independent financial institution regarding the applicant’s financial ability to complete the construction and operation of its proposed cable system;

F.    A description of the applicant’s prior experience in cable system ownership, construction, and operation;

G.    Identification of Arizona cities and counties where the applicant or its principals have an interest in a cable license. If there is no Arizona city and county, the information shall be provided for systems in other states.

H.    Identification of the area of the City to be served by the proposed cable system, including a description of the proposed license area’s boundaries;

I.    A detailed description of the physical facilities proposed, including channel capacity, technical design, performance characteristics, headend, and access facilities;

J.    Where applicable, a plan for constructing the proposed Cable System, including estimated plant mileage and location; and a proposed construction schedule;

K.    A demonstration of how the Applicant will reasonably meet the community’s future cable-related needs and interests, including descriptions of the capacity, facilities, and support for public, educational, and governmental use of the Cable System (including institutional networks);

L.    Pro forma financial projections for the proposed Cable License term, including a statement of projected income and a schedule of planned capital additions, with all significant assumptions explained in notes or supporting schedules;

M.    If the Applicant proposes to provide Cable Service to an area already served by an existing Licensee, and the Applicant does not propose to serve the entire area served by an existing Licensee, the Applicant shall:

1.    Provide an explanation as to why it is serving a more limited area; under what conditions it would expand its service offering; and why granting a License for a more limited area is in the public interest; and

2.    Identify the population density, income and racial characteristics of the area it proposes to serve.

N.    If the Applicant proposes to provide Cable Service to an area already served by an existing Licensee, and Applicant does not propose to provide the same support for public, educational and government use of the system provided by the existing Licensee, the Applicant shall:

1.    Explain why it believes its proposal is nonetheless fair and reasonable; and

2.    Explain why it believes its proposal is competitively neutral.

O.    An affidavit or declaration of the Applicant or its authorized officer certifying the truth and accuracy of the information in the Application.

3-09-002-0004 CABLE LICENSE TRANSFER APPLICATIONS

A Cable License Transfer application shall be submitted by the proposed transferee and contain the following:

A.    All information and forms required under applicable law;

B.    All information required by Section 3-09-002-0003 A-D, F-G;

C.    Any contracts or other documents that relate to the proposed Transfer, including all documents, schedules, exhibits, or the like referred to therein and all material facts concerning the effect of the Transfer on the financial position of the Cable System and the Licensee;

D.    Any shareholder reports or filings with the Securities and Exchange Commission ("SEC") that discuss the proposed Transfer;

E.    Complete information regarding anticipated impact of the Transfer on Subscriber rates and service;

F.    Legal, technical and financial qualifications of the prospective transferee.

3-09-002-0005 APPLICATIONS - LEGAL QUALIFICATIONS:

A.    For purposes of this Section, the term Applicant refers to the Applicant and any of its affiliates.

B.    In order to be legally qualified to obtain an initial or renewal Cable License or a Transfer of a Cable License:

1.    The Applicant shall be willing and able to comply with the provisions of applicable law and to comply with requirements of the Cable License. The Applicant’s prior compliance with the requirements of this Ordinance may be considered in determining whether the Applicant is willing and able to comply.

2.    The Applicant shall not have had any Cable License revoked by the City within three (3) years preceding the submission of the application. If Licensee challenges a revocation, it may not apply while the appeal is pending, or for three years after the final resolution of the appeal if the revocation is valid.

3.    The Applicant shall not have had an application to the City for an initial or renewal Cable License denied on the ground that the Applicant failed to propose a Cable System meeting the cable-related needs and interests of the community. If Licensee challenges a denial, it may not apply while the appeal is pending, or for three years after the final resolution of the appeal if the denial is valid.

4.    The Applicant shall not be issued a License if, at any time during the ten (10) years preceding the submission of the application, the Applicant was convicted of fraud, racketeering, anti-competitive actions, unfair trade practices or other conduct of such character that the Applicant cannot be relied upon to deal truthfully with the City and the Subscribers, or to substantially comply with its obligations.

5.    The Applicant shall have the necessary authority under Arizona and federal law to operate a Cable System, or show that it is in a position to obtain such authority.

6.    The Applicant shall not be issued a License if it files materially misleading information in its application or intentionally withholds information that the Applicant is required to provide by applicable law.

C.    An Applicant shall be provided a reasonable opportunity to show that a License should issue even if the requirements of Section 3-09-002-0005(B)(1)-(4) are not satisfied, by virtue of the circumstances surrounding the matter and the steps taken by the Applicant to cure all harms flowing therefrom and prevent their recurrence, the lack of involvement of the Applicant’s principals, or the remoteness of the matter from the construction, operation or maintenance of a Cable System.

3-09-002-0006 TIMING AND REVIEW OF APPLICATIONS

A.    An application may be submitted at any time, except that an application for renewal pursuant to 47 U.S.C. § 546(a)-(g) may only be submitted after the City completes the proceedings required by 47 U.S.C. § 546(a). An application for Transfer shall be submitted at least 120 days prior to the proposed date of the Transfer.

B.    The City shall deny an application if the Applicant or Licensee fails to provide information required by this Ordinance, and may deny an application if Applicant or Licensee fails to respond to requests for additional information to permit review of its Application in accordance with this Ordinance.

3-09-002-0007 REVIEW OF TIMELY CABLE ACT RENEWAL APPLICATIONS

Timely requests for renewal under 47 U.S.C. § 546(a) shall be received, reviewed and acted upon in a manner consistent with 47 U.S.C. § 546. The provisions of Sections 3-09-002-0008 and 0009 shall not apply to such renewal requests. Subject to the City Council’s review, the City Manager may issue rules for conduct of any such renewal proceedings, and conduct studies and take such other actions necessary to comply with applicable law. An Applicant or Licensee may request the City Council to review any action taken by the City Manager under this section.

3-09-002-0008 REVIEW OF OTHER INITIAL AND RENEWAL LICENSES

A.    When evaluating other initial and renewal Cable License applications, the City shall consider the following and such matters as it is required or entitled to consider under applicable law:

1.    Whether the Applicant substantially complied with applicable law and the material terms of any existing City Cable License grant;

2.    The completeness of the application and Applicant’s responses to questions regarding the application;

3.    Whether the quality of the Applicant’s service under any existing City Cable License, including, without limitation, signal quality, response to customer complaints, and billing practices, is reasonable in light of community needs and interests;

4.    Whether the Applicant has the financial, technical, and legal qualifications to hold a Cable License;

5.    Whether the application satisfies minimum requirements established by the City to meet the community’s future cable-related needs and interests, taking into account the cost of meeting such needs and interests;

6.    Whether the Applicant is able and willing to provide adequate public, educational, and governmental use capacity, facilities, or financial support;

7.    Whether granting the application will result in redlining, discrimination in the provision of services, or grant the Applicant an unfair competitive advantage;

8.    Whether issuing a Cable License is in the public interest considering the immediate and future effect on Public Rights-of-Way, public property, and private property used by the Cable System, including the extent to which planned installation or maintenance would require replacing property or disrupt property, public services, or use of public property; the effect of granting an Overbuild Cable License on the ability of any existing Licensee to meet the community’s cable-related needs and interests; and the comparative superiority or inferiority of competing applications; and

9.    Whether approving the application would eliminate or reduce competition of cable service.

3-09-002-0009 STANDARDS FOR REVIEW OF TRANSFER APPLICATIONS

A.    In determining whether to grant, deny, or grant subject to conditions an application for a Transfer of a Cable License, the City may consider:

1.    The legal, financial, and technical qualifications of the Applicant to operate the Cable System, or in the case of a change in control where the Licensee will not change, whether the change in control may adversely affect the legal, financial, and technical qualifications of the Licensee;

2.    The impact of the Transfer on Subscriber rates or services;

3.    Whether the incumbent Licensee is in compliance with its Cable License and applicable law and, if not, the Applicant’s commitment to cure such noncompliance;

4.    Whether the Applicant owns or controls any other Cable System in the City, and whether operation by the Applicant may eliminate or reduce competition in the delivery of cable service in the City;

5.    Whether the City and Subscribers are protected against losses and costs associated with acts and omissions, or obtaining correction of acts and omissions, of the previous Licensee under the Cable License and applicable law; and

6.    Whether operation by the Applicant or approval of the Transfer would adversely affect Subscribers, the public, or the City’s interest under the Cable License, or applicable law.

B.    The City shall not grant a Transfer request where the Licensee changes unless the Applicant agrees in writing that it will abide by and accept all terms of the Cable License and applicable law.

C.    The City shall not grant a Transfer request where the Licensee does not change unless the terms of the Cable License are reaffirmed, and it is agreed that the Transfer will not affect the obligations, liabilities, and responsibility for all acts and omissions, known and unknown, of the Licensee under the Cable License and applicable law for all purposes, including renewal.

D.    In reviewing a change of control where the named Licensee does not change, the Applicant is the company succeeding to the control of the Licensee.

E.    Requests for approval of a Transfer shall not be unreasonably denied, or conditioned.

3-09-002-0010 APPROVAL OR DENIAL OF CABLE LICENSES

A.    Before deciding whether to grant a Cable License, the City may hold one or more public hearings or implement other procedures for obtaining public input.

B.    If the City finds that it is in the public interest to issue a Cable License, considering the factors described above, the City shall tender Applicant a Cable License, and the Applicant shall be entitled to exercise all of the License rights provided for therein upon its acceptance of the terms and conditions of such License, in a form prescribed by the City.

C.    If the City finds that it is in the public interest to approve a Transfer, considering the factors described above, the City shall approve the same, subject to appropriate conditions.

D.    It is the policy of the City to promote competition in the provision of cable services, but there is a presumption that a Cable License, or license or franchise to use the public rights of way to deliver multichannel video programming services, that would result in redlining on economic or racial grounds, or otherwise give the Applicant an unfair competitive advantage shall not be granted.

E.    There is a presumption that as a condition of obtaining a Cable License, or license or franchise to use the public rights of way to deliver multichannel video programming services, the person seeking the authorization must agree to become capable, within a reasonable period of time, of providing cable service or multichannel video programming service to all households in the City.

F.    It is the policy of the City that each License Agreement shall require a Licensee to extend service upon request to any entity requesting service within its License Area, in accordance with the provisions of this Ordinance or service extension policies set forth in the Cable License.

G.    If the City denies a Cable License, it shall issue a written decision explaining its denial.

3-09-002-0011 NO EFFECT ON 47 U.S.C. § 546(h); CONSISTENCY WITH OTHER LAWS

Nothing in this Ordinance prohibits a Licensee from submitting a renewal proposal pursuant to 47 U.S.C. § 546(h), which proposal may be granted or denied in accordance with the provisions of 47 U.S.C. § 546(h). Nothing in this Ordinance shall be read to require or permit the City to consider any factors that it is prohibited from considering in granting or transferring a franchise under applicable state or federal statutes or regulations.

3-09-003-0001 FACILITIES CONSTRUCTION STANDARDS; APPLICATION

As used in [Section 3-09-003], the term "Facilities" refers to a Cable System, and to the extent located in the Public Rights-of-Way, other systems and all devices, facilities or structures appurtenant thereto used or designed to be used by any entity that owns or controls the system, or by an affiliate, to provide cable services. Nothing in this Section authorizes construction, operation or repair of a Cable System as defined under Section 3-09-0001-001, or any other system without a License from the City.

3-09-003-0002 FACILITIES SYSTEM CONSTRUCTION:

A.    Facilities construction, operation and repair shall be conducted in compliance with applicable law and is subject to supervision and inspection by the City. The most stringent Code or standard under applicable law or under the Cable License shall apply in the event of any conflict.

B.    Facilities construction, operation, and repair shall be performed in accord with sound engineering practices.

C.    Licensee shall comply with the current versions of the National Electrical Code and the National Electrical Safety Code.

D.    Omitted.

E.    Facilities construction, operation and repair shall be performed by properly trained and supervised maintenance and construction personnel.

F.    Facilities construction, operation and repair shall be performed in a manner that minimizes interference with public works, public property, pedestrian and vehicular traffic, and private property.

3-09-003-0003 LOCATION OF EQUIPMENT

A.    Except in underground utility districts or as otherwise provided in a Cable License or applicable law, a Licensee may install Facilities overhead where:

1.    Poles exist and electric lines and the lines of the incumbent local exchange carrier are overhead at the time of installation; and

2.    Neither the electric nor telephone lines are scheduled to be placed underground.

B.    Wherever the owner of the poles moves its plant from overhead to underground placement in an area, all Facilities and plants in that area must be promptly moved underground.

C.    Where Facilities are not entitled to be placed aboveground under Section 3-09-003-0002(A), or where they must otherwise be moved underground, all Facilities shall be undergrounded in accordance with then-existing City ordinances and requirements of the City Engineer.

D.    On application, the City may waive any requirement in this Section for good cause shown where it is demonstrated that (a) it is technically infeasible to place facilities underground; (b) reasonable steps have been taken to minimize the impact of the aboveground Facilities; (c) the Facilities are otherwise being constructed in compliance with the Flagstaff City Code.

E.    The City shall have the right to install and maintain any wire and pole fixtures on any of a Licensee’s poles or in its conduits in a manner that does not unreasonably interfere with a Licensee’s Cable System. A License may set forth terms and conditions for such use.

F.    In order to ensure that each Licensee is complying with limitations on its License, and that all Persons occupying the Public Rights-of-Way are complying with applicable law, when Licensee enters into an agreement for use of Licensee’s poles or conduits in the rights of way, it shall notify the City of the identity of the Person with which it has contracted.

3-09-003-0004 REPAIRS

Any disturbance or damage to public property or private property caused by Facilities construction, operation or repair shall be promptly repaired at no cost to the entity whose property was damaged. Property shall be restored to its prior condition, except where applicable law imposes a stricter standard for repair

3-09-003-0005 RELOCATION – PUBLIC PROJECTS

The Facilities owner or Licensee shall protect, support, temporarily disconnect, relocate, or remove any of its property at the time and in the manner as required by the City or other public agency due to traffic conditions, public safety, street construction or in connection with any other public works, improvements or construction projects, whether undertaken by the City or another public agency. Except in an emergency, the City shall provide written notice describing where the work is to be performed at least 30 days before the deadline for performing the work; an extension of the time to perform the work may be sought where the work cannot be performed in 30 days even with the exercise of due diligence, and such request for an extension shall not be unreasonably refused. In an emergency, or where Facilities create or are contributing to an imminent danger to public health, safety, or property, the City may remove, relay, or relocate any or all parts of the Facilities without prior notice.

3-09-003-0006 UTILITY RELOCATIONS

A.    If any removal, relaying, or relocation is required to accommodate the construction, operation, or repair of the facilities of another Person authorized to use Public Rights-of-Way, an owner or Licensee of Facilities shall promptly, considering the amount of work to be performed, take action to effect the necessary changes requested. Where Licensee is occupying poles or conduit pursuant to a valid pole attachment agreement, the pole attachment agreement shall generally govern relocation under this Section, provided that, Licensee shall comply with any reasonable relocation order issued by the City to protect the public health, safety or welfare.

B.    Unless the matter is governed by a valid contract or applicable law, or unless the Facilities were improperly installed, the reasonable cost of removal, relaying, or relocation shall be borne by the Person requesting the removal, relaying, or relocation, and the Person requesting removal, relaying, or relocation may be required to pay in advance. If there is a disagreement as to who is responsible for costs, or as to the amount of the costs, a Person requesting removal relaying or relocation must pay the disputed costs in advance, or provide an escrow securing payment of the amounts owed.

3-09-003-0007 TEMPORARY RELOCATION UPON REQUEST

Upon the request of a Person holding a valid permit, a Facilities owner or Licensee shall temporarily raise or lower its wires to allow buildings or other objects to be moved. The requesting Person shall pay for any expense associated with such temporary removal or raising or lowering of wires, and a Facilities owner or Licensee may require payment in advance.

3-09-003-0008 TREE TRIMMING

The Licensee shall have the authority to trim trees on public Rights-of-Way at its own expense as may be necessary to protect its wires and facilities, subject to supervision and direction by the city. Trimming of trees located wholly on private property shall require consent of the property owner. Any trimming of trees by the Licensee in the rights-of-way and public ways shall be subject to such regulation as the city manager or other authorized official may establish to protect the public health, safety and convenience.

3-09-003-0009 CONTRACTORS AND SUBCONTRACTORS

A.    Any contractor or subcontractor used by a Facilities owner or Licensee shall be properly licensed under applicable law. Each contractor or subcontractor has the same obligations with respect to its work as the owner or Licensee would have under this Code and applicable law if the work were performed by owner or Licensee.

B.    A Facilities owner or Licensee shall be responsible for ensuring that the work of contractors and subcontractors is performed consistent with its License and applicable law; shall be responsible for all acts or omissions of contractors or subcontractors inconsistent with its License or applicable law governing the construction, operation or maintenance of the Cable System; shall be responsible for promptly correcting acts or omissions by any contractor or subcontractor inconsistent with its License or applicable law governing the construction, operation or maintenance of the Cable System; and shall implement a quality control program to ensure that the work is properly performed. This section is not meant to alter tort liability of Licensee to third parties.

C.    Contractors or subcontractors shall identify themselves as being affiliated with a facilities owner or Licensee through reasonable means such as identification badges.

3-09-003-0010 CONSTRUCTION COORDINATION

A.    A Facilities owner or Licensee shall cooperate in planning, locating, and constructing its Facilities in utility joint trenches or common duct banks with other utilities, including cable and telecommunications providers, and shall comply with any requirements that the City lawfully may adopt regarding the same.

B.    A Facilities owner or Licensee shall be a member of the regional notification center for subsurface installations (Underground Services Alert) and shall field mark, at its sole cost and expense, the locations of its underground facilities upon notification in accordance with applicable law.

C.    Where it appears that a Facilities owner or Licensee is engaging in practices that endanger the public or other facilities in the Public Rights-of-Way, the City may order that work to stop until the practices are corrected. Where a Facilities owner or Licensee engages repeatedly in such practices after receiving notice and having had an opportunity to cure, the City may revoke any licenses or permits issued to the Facilities owner or Licensee.

3-09-003-0011 INTERCONNECTION

Upon the City’s request, Licensees or Facilities operators required to provide capacity for public, educational or governmental use (including institutional network capacity) within the City shall negotiate in good faith the terms and conditions of interconnection so that public, educational and governmental signals may be seamlessly exchanged to or from systems. Except to the extent the terms and conditions are subject to regulation by the state or federal governments, or regulation is prohibited by law, the City may establish terms and conditions for interconnection and establish deadlines for completion of the interconnection if the interconnecting parties are unable to agree to terms, but conditions for interconnection established by the City shall not place an undue burden or grant an undue benefit to one operator compared to another.

3-09-003-0012 ABANDONMENT

A Facilities owner or Licensee may abandon any property in Public Rights-of-Way that is in place upon written notice to the City and separate notice to the City Public Works Director, unless the City determines, in the exercise of its reasonable discretion exercised within ninety (90) days of the date the required written notices are received, that the safety, appearance, functioning or use of Public Rights-of-Way and facilities in Public Rights-of-Way will be adversely affected. Abandonment shall be effected in a manner acceptable to the City Engineer.

3-09-004-0001 SERVICE - TIME FOR EXTENSION

A.    A Licensee shall extend service to any Person or to any City building in the License Area upon request:

1.    Within seven (7) business days of the request, where service can be provided by activating or installing a standard drop;

2.    Within ten (10) business days if the Person cannot be served through installation of a standard drop, but can be served by activating or installing a drop;

3.    Within ninety (90) days of the request where an extension of one-half mile or less is required; or

4.    Within six (6) months where an extension of more than one-half mile is required.

5.    Requests for additional outlets, service upgrades or other connections separate from the initial installation shall be performed within seven (7) business days after an order has been placed.

B.    A Cable License specifying a time for completion of initial construction or rebuild of a Cable System may suspend or modify the requirements of this Section for the period of the construction or rebuild. A Cable License may specify minimum density requirements for Cable System extensions.

C.    A "standard drop" is an aerial drop not exceeding 150 feet. The City Manager may grant an extension of the time limits set forth in this Section where a Licensee shows that, because of exceptional circumstances, the standards could not be satisfied even with due diligence.

3-09-004-0002 SERVICE - MINIMUM CUSTOMER SERVICE STANDARDS

A.    Each Licensee shall satisfy the customer service standards established by the FCC, and such additional or stricter customer service or consumer protection requirements as the City may adopt from time to time by resolution, or as may apply under applicable law. Provided that, the City will provide each Licensee an opportunity to comment on any proposed additional cable-specific customer service standards before they are adopted.

B.    Customer service standards and reporting requirements may be waived by the City Manager where (a) a Licensee shows the standard as applied to it is too burdensome; and (b) the Licensee proposes an alternative standard that the City Manager determines will reasonably protect Subscribers in light of the customer service record of the Licensee requesting the waiver.

3-09-004-0003 SERVICE - NO DISCRIMINATION

A.    A Licensee shall not deny service, levy different rates, or otherwise discriminate against any Person or group on the basis of race, color, creed, national origin, sex, age, conditions of physical handicap, religion, ethnic background, or marital status or on the basis of the income of the residents of the local area in which such Person or group resides.

B.    A Licensee shall not discriminate among Persons or the City or take any retaliatory action against a Person or the City because of the exercise of any right the Person or the City may have under applicable law, nor may the Licensee require a Person or the City to waive such rights as a condition of taking service. This shall not restrict a Licensee from including otherwise lawful terms in a Subscriber agreement similar to terms included in regulated contracts or valid tariffs for utility service to Subscribers.

C.    A Licensee shall not discriminate in its rates or charges or grant undue preferences to any Subscriber, potential Subscriber, or group of Subscribers or potential Subscribers, provided that:

1.    A Licensee may offer temporary, bona fide promotional discounts in order to attract or maintain Subscribers, so long as such discounts are offered on a non-discriminatory basis to similar classes of Subscribers;

2.    A Licensee may offer discounts for the elderly, the disabled, or the economically disadvantaged; and

3.    This Section is subject to any limitations on the City’s authority under federal law with respect to rates.

3-09-004-0004 SERVICE - PRIVACY

A Licensee shall at all times protect the privacy of all Subscribers pursuant to the provisions of 47 U.S.C. § 551. A Licensee shall not condition Subscriber service on the Subscriber’s grant of permission to disclose information which, pursuant to applicable law, cannot be disclosed without the Subscriber’s explicit consent.

3-09-004-0005 SERVICE - TECHNICAL STANDARDS

Any Cable System within the City shall meet or exceed the technical standards set forth in 47 C.F.R. § 76 Subpart K and any other applicable technical standards lawfully adopted by the City.

3-09-004-0006 SCHEDULED MAINTENANCE

Scheduled maintenance shall be performed to minimize the effect of any necessary interruptions of Cable Service.

3-09-005-0001 OVERSIGHT - BOOKS AND RECORDS

A.    The City may inspect and copy at any time during normal business hours such books and records as the City reasonably deems necessary to enforce or monitor compliance with the terms of this Ordinance, or a Cable License or state or federal law governing cable systems. The City may establish reasonable deadlines for the production of the books and records. Books and records requested pursuant to this Section shall be timely produced to the City unless the Licensee obtains a court order that the books and records need not be produced.

B.    Each Licensee shall be responsible for promptly collecting and producing requested books and records to the City at the City Hall. However, if books and records requested pursuant to this Ordinance or a Cable License are too voluminous, or cannot be copied and moved for security reasons or because the requested records contain trade secrets, then a Licensee may produce the records at some other location, provided that:

1.    The Licensee shall make necessary arrangements for copying documents selected by the City after its review; and

2.    The Licensee shall pay all reasonable travel and additional copying expenses incurred by the City (above those that would have been incurred had the documents been produced in the City) in inspecting those documents or having those documents inspected by its designee.

C.    The terms "books and records" shall include information in whatever format stored, including, without limitation, information stored in electronic form. The term "copy" when used to refer to an electronic document, means to obtain an electronic copy of a document in a format that permits the City to access and print the document. If the electronic data provided can be sorted or otherwise manipulated by the Licensee, it shall be provided so that the City may do the same. The term "books and records" includes books and records held by an affiliate or any person holding any form of management contract for the cable system.

D.    Financial books and records shall be maintained in accordance with generally accepted accounting principles.

E.    All proprietary information received by the City from a Licensee and clearly marked as such shall not be publicly disclosed to the extent allowed by the Arizona Public Records Law, A.R.S. Section 39-121 et seq. and other applicable law. The City shall notify a Licensee if any third party seeks access to any document that is marked confidential, and shall withhold disclosure of the document for the maximum period permitted by law to permit the Licensee to seek court protection against the release of the requested documents.

3-09-005-0002 OVERSIGHT - REPORTS

A.    The City may require a licensee to prepare such reports as the City reasonably deems necessary to enforce or monitor compliance with the terms of this chapter, or a cable license or State or Federal law governing cable systems. The City may establish reasonable deadlines for the preparation of the reports. Reports requested pursuant to this section shall be timely produced to the City unless the licensee obtains a court order that the reports need not be produced.

B.    In addition to any other reports it is required to produce, each licensee shall file the following reports within thirty (30) days of the end of each calendar quarter:

1.    A financial statement certified as true by an authorized representative on behalf of the licensee, showing in detail the gross revenues of the licensee by revenue category for the quarter.

C.    In addition to any other reports it is required to produce, upon request of City, each licensee shall file the following reports within ninety (90) days of the end of each calendar year:

1.    A financial statement certified as true by an authorized representative on behalf of the licensee, showing in detail the gross revenues of the licensee by revenue category for the year.

2.    A description of any changes in the calculation of the license fee owed, and the basis for these changes.

3.    A description of the cable services provided during the previous year.

4.    A report showing the licensee’s performance with respect to each customer service standard.

D.    In addition to other reports and books and records it may be required to produce, upon request, the licensee shall provide:

1.    Accurate maps for its cable system identifying the location of system components in the rights-of-way;

2.    A description of its cable system design and the facilities it is maintaining in the rights-of-way; and

3.    Plans for cable system construction. (Ord. 2017-04, Amended, 05/16/2017)

3-09-005-0003 OVERSIGHT - RECORDS

A.    Each Licensee shall maintain accurate records of its performance under the FCC standards and under other customer service and consumer protection standards established or enforced by the City.

B.    Each Licensee shall maintain records required to prepare the reports required under this Ordinance or under its License, and shall maintain records of outages, customer complaints, service calls (calls requiring a truck roll), installation/reconnection and requests for service extension, and system testing, each in sufficient detail to show compliance with applicable customer service standards and technical standards.

C.    Financial books and records shall be maintained in accordance with generally accepted accounting principles.

D.    Records required under this Section shall be maintained for 36 months, and revenue records shall be maintained for a minimum period of five (5) years.

E.    Any material misrepresentation made by the Licensee in any report, or in books and records provided to the City shall be treated as a violation of the Licensee’s obligations under this Ordinance.

F.    Nothing in this Ordinance shall be read to require a Licensee to violate state or federal law governing Subscriber privacy. However with respect to Subscriber privacy:

1.    Each Licensee shall take reasonable steps required to ensure that it is able to comply with requirements for production of books and records and reporting under a Cable License or applicable law.

2.    Each Licensee shall be responsible for redacting any information that applicable law prevents it from providing to the City.

3-09-005-0004 OVERSIGHT - TESTING

A.    Upon request of the City, for good cause as reasonably determined by the City, a Licensee shall perform tests necessary to demonstrate compliance with the requirements of the Cable License and this Ordinance. The request shall also state with reasonable specificity the cause for the requested testing. Tests shall be conducted in accordance with the sound engineering practices.

B.    A written report of the results of any test performed under this Section shall be filed with the City within thirty (30) days of the test. Where there is a failure to meet technical or performance specifications, the Licensee, without additional notice or request from the City, shall promptly take corrective action, and retest.

C.    The City may observe any test conducted by Licensee. For good cause as reasonably determined by the City, the City may independently test the System. Licensee shall cooperate with such independent tests. Tests shall be conducted in accordance with sound engineering practices, and shall be scheduled to minimize service or operational disruptions. Licensee may observe any tests conducted by the City.

3-09-006-0001 LICENSE FEE

A.    A licensee shall pay the City a license fee as specified in the license agreement. Should any person provide cable service without a license issued by the City, it must pay the highest license fee permitted by law.

B.    Except for the accelerated payments required under subsection (G) of this section or as otherwise specified in a cable license, a licensee shall pay the license fee due to the City on a quarterly basis. Payment for each quarter shall be made to the City not later than thirty (30) days after the end of each calendar quarter.

C.    The failure to pay the license fee owed on time shall be considered a violation of this chapter.

D.    Should the City not receive a license fee payment on or before the due date set forth above, or should the licensee fail to make full payment of the license fee due and owing to the City, the licensee shall be charged interest from the due date at an interest rate equal to one percent (1%) per month on the unpaid balance.

E.    The City’s acceptance of any license fee payment shall not be construed as an accord that the amount paid is in fact the correct amount, nor shall acceptance of such license fee payment be construed as a release of any claim the City may have for additional sums payable.

F.    The license fee is not a payment in lieu of any tax, fee, or other assessment of general applicability (including any such tax, fee or assessment imposed on both utilities and cable operators or their services), consistent with 47 U.S.C. § 542(g)(2). Notwithstanding the foregoing, per State law in effect at the time a license is issued, licensee may be entitled to credit of certain taxes or fees against the license fee owed.

G.    In the event of a transfer, or where a licensee stops providing cable service within the City, the licensee shall file a final statement of gross revenues within thirty (30) days of the transfer or stoppage. The statement shall be certified as accurate by an authorized representative on behalf of the licensee, cover the period from the beginning of the calendar year in which the transfer or stoppage occurred, identify gross revenues by category, license fees paid on gross revenues, and license fees owed on gross revenues up through the date of transfer or stoppage. The statement shall be accompanied by a check for the license fee owed through the date of transfer or stoppage.

H.    In the event of any holding over after expiration, revocation or other termination of any cable license granted hereunder without the City’s consent, the licensee shall pay to the City the maximum license fee permitted by applicable law.

I.    If there is a dispute as to whether a particular item of revenue is within the scope of the term "gross revenues," records shall be provided without prejudice to any claim the licensee might have that a license fee is not owed on such revenues. (Ord. 2017-04, Amended, 05/16/2017)

3-09-007-0001 ENFORCEMENT/SECURITIES - INSURANCE AND INDEMNIFICATION

A.    Each Licensee shall maintain adequate insurance against claims for injuries to persons or damages to property which in any way relate to, arise from, or are connected with the holding of the Cable License, or the construction, operation or repair of the Cable System by the Licensee, its agents, representatives, contractors, subcontractors and employees. Each Cable License shall specify the initial minimum amounts, form, quality, and proof of insurance that must be provided and maintained through the Cable License term. The City may change insurance requirements to reflect increased risks to the City or to the public after providing affected Licensees notice of the proposed changes and the opportunity to comment upon the proposed changes.

B.    Each Cable License shall contain an indemnification provision that provides, to the extent permitted by applicable law that:

1.    The Licensee shall indemnify, save harmless and defend the City, its mayor and council, appointed boards and commissions, officers and employees (collectively, "City and its agents"), individually and collectively from all fines, liens, suits, claims, demands, actions, costs of litigation, attorneys’ fees, judgments or liability of any kind ("Losses") (including but not limited to libel, slander, invasion of privacy, unauthorized use of any trademark, trade name or service mark, copyright infringement, injury, death or damage to person or property) arising out of or in any way connected with the installation, construction, operation, maintenance or condition of the Cable System.

2.    A Licensee shall indemnify, save harmless and defend the City and its agents, individually and collectively from all Losses arising from the defense of any litigation brought by third parties challenging the right of the City to issue its License. The City shall give the Licensee timely written notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the indemnity of this section, where the Licensee is not a party thereto. A Licensee shall assume the risk of, and shall relinquish any claim against the City in connection with any final, non-appealable determination by a court of competent jurisdiction that the City lacked the authority to issue the License.

C.    A Cable License may be revoked by the City for failure to maintain the insurance required, or for failure to indemnify the City.

3-09-007-0002 ENFORCEMENT/SECURITIES - LETTER OF CREDIT AND BONDS

A.    The Licensee shall file and maintain with the City an irrevocable letter of credit with an acceptable surety in an amount specified in the Cable License, which letter of credit:

1.    Shall be filed prior to the effective date of the Cable License;

2.    Shall remain in effect for the full term of the Cable License plus an additional six (6) months thereafter;

3.    Shall provide for sixty (60) days’ prior written notice to the City of any intention on the part of the Licensee to fail to renew or otherwise materially alter the terms of the letter of credit.

B.    The City may, after ten (10) business days’ prior notice, withdraw from Licensee’s security letter of credit the amount the Licensee owes, with interest and penalties, if the Licensee:

1.    Fails to make timely payment to the City of any amounts due under its Cable License or required by applicable law and fails to pay within 30 days of written notification that such compensation is due;

2.    Fails to make timely payment to the City of any taxes due or penalties owed and fails to pay within 30 days of written notification that such taxes or penalties are due; or

3.    Fails to compensate the City within 30 days of written notification that such compensation is due, for any damages, costs, or expenses the City suffers or incurs by reason of any act or omission of the Licensee under applicable law or in connection with its Cable License.

C.    If at the time of the City’s withdrawal, the amounts available are insufficient to provide the total payment toward which the withdrawal is directed, the balance of such payment shall continue as Licensee’s obligation to the City until it is paid in full.

D.    Not later than thirty (30) days after a withdrawal from the security fund or under the letter of credit, the Licensee shall restore the letter of credit to its full required amount, but nothing herein prevents a Licensee from seeking relief from this requirement from a court of competent jurisdiction.

E.    Before any Cable System Construction, upgrade, or other work in Public Rights-of-Way, a Licensee shall obtain any required bonds in amounts and subject to such terms established by the City consistent with its normal practices.

F.    A Cable License may be revoked by the City for failure to obtain or maintain the letters of credit or bonds required herein or in the Cable License.

3-09-007-0003 ENFORCEMENT/SECURITIES - RIGHTS RETAINED

Recovery by the City of any amounts under insurance, the performance bond, the letter of credit, or otherwise, shall not limit a Licensee’s duty to indemnify the City in any way; nor shall any recovery under Sections 3-09-007-0001-0002 relieve a Licensee of its obligations under a Cable License, or prevent the City from obtaining full recovery of amounts owed to it, or in any respect prevent the City from exercising any other right or remedy it may have. Nothing in this Ordinance shall be read to authorize the double-recovery of amounts owed.

3-09-007-0004 ENFORCEMENT / SECURITIES - REVOCATION AND TERMINATION

A.    A Cable License issued pursuant to this Ordinance may be revoked or shortened by the City Council for the Licensee’s failure to construct the Cable System as required by this Ordinance or a Cable License; or for any other material violation of this Ordinance or a Cable License; or for defrauding, or attempting to defraud, the City or Subscribers; or for submission of false or misleading information; or if the Licensee abandons its Cable System without the City’s approval; or willfully refuses to provide services to the City or any part of the City. The following procedures shall apply:

1.    Before revoking or shortening the Cable License, the City shall give the Licensee written notice, which notice shall describe the nature of the alleged violation or breach and, except as provided herein, shall provide the Licensee with a reasonable opportunity to cure.

2.    If within thirty (30) calendar days following receipt of written notice from the City to the Licensee the Licensee has not corrected the default, or shown to the City’s satisfaction that there was no violation or breach, the City may give written notice to the Licensee of its intent to consider revocation or shortening of the Cable License.

3.    Not sooner than thirty (30) calendar days after notifying the Licensee of its intent to consider revoking the Cable License, the City Council shall hold a public hearing at which the Licensee and the public shall be given an opportunity to be heard.

4.    Following the public hearing the City Council shall determine whether a violation or breach occurred, and whether to revoke or shorten the Cable License based on the evidence presented at the hearing, and any other evidence of record.

5.    If the City Council determines to revoke or shorten a Cable License, it shall issue a written decision setting forth the reasons for its decision.

6.    A copy of such decision shall be transmitted to the Licensee.

B.    Notwithstanding the foregoing, an opportunity to cure shall not be required where the City finds that the defect in performance is due to willful misconduct; or is an adjudicated violation of criminal law; or is part of a pattern of violations where the Licensee has already had notice and reasonable opportunity to cure. With respect to such violations, the City, in lieu of the opportunity to cure requirement of this Section, may provide a written notice of the breach and of its intent to revoke, and, not sooner than thirty (30) days thereafter, conduct the public hearing proceeding required by this Section.

3-09-007-0005 ENFORCEMENT/SECURITIES - BANKRUPTCY

A.    Notwithstanding any other provision of this Ordinance:

1.    A Cable License shall automatically terminate by force of law one hundred twenty (120) calendar days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of the Licensee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding.

2.    However, the Cable License may be reinstated if, within the one hundred twenty (120) day period:

a.    The assignment, receivership or trusteeship is vacated; or

b.    The assignee, receiver, or trustee has fully complied with the terms and conditions of this Ordinance and the Cable License and has executed an agreement, approved by a court having jurisdiction, assuming and agreeing to be bound by the terms and conditions of the Cable License and this Ordinance.

B.    Notwithstanding any other provision of this Ordinance:

1.    In the event of foreclosure or other judicial sale of any of the Licensee’s Cable System facilities, equipment, or property, the City may revoke the Cable License after a public hearing before the City Council, by serving notice upon the Licensee and the successful bidder at the sale.

2.    The Cable License shall terminate thirty (30) calendar days after serving such notice, unless:

a.    The City approves the Transfer of the Cable License to the successful bidder; and

b.    The successful bidder agrees with the City to assume and be bound by the terms and conditions of the Cable License and applicable law.

3-09-007-0006 ENFORCEMENT/SECURITIES - EFFECT OF REVOCATION OR ABANDONMENT

A.    In the event that the City revokes a Cable License granted pursuant to the provisions of this Ordinance; or upon expiration of the Cable License; or if the Cable System is to be abandoned:

1.    The City may require the former Licensee to remove the Cable System (or any portion thereof) from the Public Rights-of-Way at the former Licensee’s sole expense. If the former Licensee fails to do so within a reasonable period of time, the City may have the removal done at the former Licensee’s and/or surety’s sole expense, except the Licensee may abandon any portion of its Cable System in place with the City’s approval pursuant to Section 3-09-003-0012; and

2.    The City, by City Council resolution, may acquire ownership or effect a Transfer of the Cable System (or any portion thereof)

a.    At fair market value, where the Cable License expires;

b.    At an equitable price where the Cable License terminates or is revoked for cause;

c.    The term "equitable price" shall be interpreted consistent with 47 U.S.C. § 547. Fair market value shall be determined in accordance with 47 U.S.C. § 547(a)(1).

B.    Notwithstanding Section 3-09-007-0006(A)(2), if a Cable System or any part thereof is abandoned by a Licensee, the City may require the Licensee to transfer title to the abandoned portions to it at no charge, free and clear of encumbrances, and the same shall become the City’s property and the City may keep, sell, assign, or transfer all or part of the assets of the Cable System, or otherwise dispose of those assets as it sees fit.

3-09-007-0007 ENFORCEMENT/SECURITIES - REMEDIES CUMULATIVE

All remedies in this Ordinance and the Cable License shall be cumulative unless expressly stated otherwise.

3-09-007-0008 ENFORCEMENT/SECURITIES - PUBLICATION

The Licensee shall pay to the City a sum of money sufficient to reimburse the City for all expenses incurred by it in connection with the publication of a Cable License. Such payment shall be delivered to the City Clerk within thirty (30) calendar days after the City furnishes the Licensee with a written statement of such expenses.