Chapter 20
VIDEO SERVICES
Articles:
20-1 General Provisions
20-2 Uniform Video Service Licenses
20-3 Duties of Video Service Providers
20-4 Fees and Charges; In-Kind Goods or Services
20-5 Miscellaneous
20-6 Enforcement
Article 20-1
General Provisions
Sections:
20-1-1 Purpose and Intent
20-1-2 Definitions
20-1-3 Unlawful Acts; Violation
Section 20-1-1 Purpose and Intent
The purposes of this chapter are to comply with the requirements of A.R.S. Title 9, Chapter 13 and federal law and to set forth regulations for the application by video service providers for uniform video services licenses for the provision of video services and other authorized services in the city, to provide for issuance of uniform video services licenses in accordance with law, to provide for imposition of nondiscriminatory license fees, and to otherwise carry out the mandates of A.R.S. Title 9, Chapter 13 and federal law. It is the intent of this chapter that all rights and obligations set forth in A.R.S. Title 9, Chapter 13 are preserved and shall apply, irrespective of whether specifically set forth in this chapter. (Ord. 19-238 § 2)
Section 20-1-2 Definitions
The definitions set forth in A.R.S. § 9-1401 shall apply to this chapter. (Ord. 19-238 § 2)
Section 20-1-3 Unlawful Acts; Violation
A. It is unlawful for a video service provider to establish, operate or to carry on the business of video service in the city without first having been issued and continuing to hold a local license issued pursuant to this chapter.
B. It is unlawful for any video service provider to construct, operate or maintain a video service network within the boundaries of the city without first having been issued and continuing to hold a local license issued by the city pursuant to this chapter.
C. It is unlawful for any person to make any unauthorized connections, whether physically, electrically, acoustically, inductively or otherwise, with any part of a licensed video service network within the city for the purpose of enabling himself or herself or others to receive any video service without the permission of the video service provider to whom a local license has been issued.
D. It shall be unlawful for any person, without the consent of a licensee, to willfully tamper with, remove or injure any equipment associated with a video service network of a video service provider. (Ord. 19-238 § 2)
Article 20-2
Uniform Video Service Licenses
Sections:
20-2-1 Application and Issuance
20-2-2 Authority Granted
20-2-3 Undergrounding of Facilities
20-2-4 Limitations of License
20-2-5 Obligations upon Expiration
Section 20-2-1 Application and Issuance
A. This section shall not apply to incumbent cable operators who have elected to continue to operate within a service area as defined in its existing local license with the city. The requirements of this section shall apply to video services licenses granted on or after January 1, 2020.
B. Prior to the commencement of any construction or expansion of a video service network or the provision of any video service, a video service provider shall file with the city clerk an application and an affidavit in a form provided by the city clerk. The application shall be in the form of application approved by the council and shall include all information and not more than the information required by the application form and A.R.S. § 9-1414.
C. The application shall be accompanied by an affidavit in the form approved by the council signed by one of the principal executive officers or general partners of the applicant that the information set forth in the application are true and accurate.
D. The application and affidavit shall be submitted to the city clerk, who shall forward the application and affidavit to the assistant city manager for review.
E. If the assistant city manager determines that the application and affidavit are incomplete or otherwise deficient under A.R.S. § 9-1414, written notice shall be given to the applicant not later than fifteen days after the date of filing of the application and affidavit. The written notice shall:
1. Explain the incompleteness or deficiency in detail.
2. Specify the information or other items that are necessary for proper completion of the application and affidavit.
F. A uniform video services license shall be issued within thirty days from the date a complete application was filed with the city clerk. The term of a uniform video services license shall not exceed ten years.
G. If written notice of an incomplete or deficient application and affidavit is not given within fifteen days after the date of filing, or if the uniform video services license is not issued within thirty days from the date a complete application has been submitted, the agreement shall be deemed complete and issued to the applicant in the form submitted.
H. No fees shall be charged for filing or processing an application, affidavit, notice or other document related to the issuance of the uniform video services licenses.
I. Amendments to a uniform video services license to add service areas shall be processed in the same manner as the original uniform video services license.
J. The term of a uniform video services license may be extended by the holder of a video service provider filing with the city clerk a notice to extend the term for a specified period not to exceed ten years. The notice shall be filed at least one month before the end of the term of the uniform video services license.
K. Any use of or attachment by a video service provider to a utility or other pole owned by the city must first be approved in a separate contract with the city, at the sole discretion of the city council. If, pursuant to such contract, the city requires the video service provider to locate facilities in ducts or conduits or on poles owned by the city, the city shall not require the video service provider to pay for the installation in the ducts or conduits or on the poles.
L. If a video services provider submits an application, the city shall issue to a video service provider or its affiliate a permit to attach allowed Wi-Fi radio equipment to the video service network in the highways. The permit shall allow installation, operation and maintenance of allowed Wi-Fi radio equipment. The city may require that all of the allowed Wi-Fi radio equipment at a single location fit within a fifteen-inch cube and be contained entirely within a ground-mounted pedestal or be connected directly to and mounted at the same height as one of the video service provider’s aerial horizontal conductors. This subsection does not do any of the following:
1. Prohibit the city from requiring a video service provider to place underground aerial facilities to which allowed Wi-Fi equipment is attached.
2. Prohibit the imposition of a tax, rent, fee or charge on revenue from services provided through allowed Wi-Fi radio equipment.
3. Affect the authority of the city to manage its highways or to exercise its police powers, including review and approval of an application before issuing a permit.
4. Affect the city’s authority to deny, limit, restrict or determine the terms and conditions for the use of or attachment to the utility poles or attachments to other poles of the city by a video service provider. (Ord. 19-238 § 2)
Section 20-2-2 Authority Granted
A. A uniform video services license granted by the city shall authorize the video service provider to:
1. Provide video service in the city in the service area designated in the application and affidavit during the term of the uniform video services license.
2. Construct and operate a video service network in the highways in each service area, in compliance with the uniform video services license and city laws.
3. Operate and maintain facilities installed in the highways in the service area pursuant to A.R.S. §§ 9-1442(H), (J), (I) and (J) (Wi-Fi radio equipment on cable systems), 9-584 (microcell equipment) and Chapter 5, Article 8 (small wireless facilities). (Ord. 19-238 § 2)
Section 20-2-3 Undergrounding of Facilities
All wires, cable, conductors, ducts, conduits and similar facilities shall be placed underground unless such facilities are attached to existing utility or telephone poles and the poles are used primarily for utility or telephone purpose. (Ord. 19-238 § 2)
Section 20-2-4 Limitations of License
A. Any uniform video services license granted under this chapter shall be nonexclusive.
B. Any privilege claimed under any uniform video services license by the video service provider in any highway shall be subordinate to any lawful occupancy or use thereof by the city and shall be subordinate to any prior easements, prior licenses to use the highways, and any other private property rights that may be superior to the uniform video services license issued.
C. A video service provider shall be subject to all existing requirements of the city’s rules, regulations and specifications or hereafter enacted or established pursuant to the city’s police powers and taxing authority, and shall comply with all applicable existing state and federal laws and regulations or hereafter enacted or established.
D. Any uniform video services license granted shall not relieve the video service provider of any obligation involved in obtaining pole space from any department of the city, utility company, or from others lawfully maintaining poles in highway.
E. A video service provider shall agree to comply with all generally applicable nondiscriminatory ordinances, including but not limited to street or highway use, mapping, insurance, performance bonds, security fund, indemnification or similar requirements that apply to the use and occupation of any highway. There is hereby preserved to the city the power to amend any section of the city code related to construction in highways pursuant to its police powers. (Ord. 19-238 § 2)
Section 20-2-5 Obligations upon Expiration
A video service provider may terminate a uniform video service license by filing a written notice of termination with the city clerk. Such notice shall be filed at least ninety days before termination of service. The notice shall also be sent to all subscribers within the affected service area at least ninety days prior to termination of service. (Ord. 19-238 § 2)
Article 20-3
Duties of Video Service Providers
Sections:
20-3-1 Construction in the Highways
20-3-2 Revocation for Non-Use of Uniform Video Service License
20-3-3 Reports
20-3-4 Bundling of Services
20-3-5 Notice of Change of Information
Section 20-3-1 Construction in the Highways
Video service providers and their subcontractors shall comply with (A) the requirements of this chapter and Article 7-16 of this code, (B) construction standards of the Federal Communications Commission (FCC) Rules and Regulations, Part 76 Subpart K (Technical Standards), as amended from time to time, and (C) detailed standards submitted by the video service provider as part of any application submitted to the city. (Ord. 19-238 § 2)
Section 20-3-2 Revocation for Non-Use of Uniform Video Service License
A video service provider shall provide video service to at least one subscriber within each service area authorized by a uniform video service license within twenty-four months after the date the uniform video service license is issued. If the video service provider fails to comply with this section, the city may revoke the uniform video service license. (Ord. 19-238 § 2)
Section 20-3-3 Reports
A video service provider shall file all reports required by and in compliance with A.R.S. § 9-1432. The reports shall be filed with the city clerk. All such reports shall be confidential unless the video service provider has consented in writing to the disclosure. (Ord. 19-238 § 2)
Section 20-3-4 Bundling of Services
Except as otherwise provided by federal law, if a video service provider offers video service bundled with other services that are not video service for a single discounted price, all of the following apply:
A. The method that the video service provider uses to determine gross revenue subject to license fees by allocating the single discounted price among the bundle of video service and non-video services shall be reasonable and supported by the video service provider’s books and records.
B. For the purpose of meeting the video service provider’s burden of proof, the city shall accept as reasonable, for purposes of meeting the video service provider’s burden of proof, an allocation based on an objective and verifiable method using the books and records that the video service provider kept in the regular course of business for other purposes, including nontax purposes.
C. A video service provider may not use bundled offerings as a means to evade paying license fees. (Ord. 19-238 § 2)
Section 20-3-5 Notice of Change of Information
If any information required by Section 20-2-1(B) changes, the video service provider shall notify the city in writing within thirty days of such change. (Ord. 19-238 § 2)
Article 20-4
Fees and Charges; In-Kind Goods or Services
Sections:
20-4-1 License Fee on Gross Revenue; Transaction Privilege Taxes
20-4-2 Public, Educational or Governmental Access Programming
Section 20-4-1 License Fee on Gross Revenue; Transaction Privilege Taxes
A. A video service provider shall pay to the city a license fee as a percentage of gross revenues for the use of the highways to provide video service within its service area. The license fee shall be established by resolution of the city council and shall be imposed equally and uniformly on video service providers and holdover cable operators.
1. The license fee shall be paid quarterly on or before the twentieth day of the month following the quarter end, and becomes delinquent on the last business day of that month. If such payment is not made by the next to the last business day of the following month, the city will impose a rate of interest for both underpayments and overpayments in the amount of the federal short-term rate determined pursuant to 26 U.S.C. 6621(b), plus three percentage points per month commencing from the date payment should have been made, unless the payment is subject to a bona fide dispute, and continuing until the payment is made. Fractions of a month shall be considered to constitute a full month for the purpose of computing interest.
2. The license fee shall be imposed equally and uniformly on all video service providers and holdover cable operators.
B. The total of the rates of the license fee, the transaction privilege taxes imposed, and in-kind contributions described in FCC Rule 19-80, Section 76-42 (unless agreed to in a separate agreement) shall not exceed a rate of five percent.
C. The payment of the license fee by the licensee to the city shall be made by delivery of the same to the city clerk on or before the twentieth day of the month following the quarter end, and becomes delinquent on the last business day of that month. (Ord. 19-238 § 2)
Section 20-4-2 Public, Educational or Governmental Access Programming
A. Video service providers shall provide channel capacity to transmit programming over which the video service provider exercises no editorial control except as authorized by 47 U.S.C. 531I. The channel capacity shall be limited to one of the following:
1. Not more than two channels of public, educational or governmental access programming in the basic service tier of the video service network and not more than two channels of noncommercial governmental programming, at least one of which may be programmed by the federal government, in the digital programming tier of the video service network.
2. Not more than two lines of access programming with each line of programming carried on up to two standard definition channels and two switched digital high-definition channels.
B. None of the annual fair market value of any channel capacity provided pursuant to subsection (A) of this section may be offset against the license fee set forth in Section 20-4-1.
C. A video service provider may require that channels regularly display an unobtrusive logo or other suitable identifier of the video service provider, if the city requires channel capacity pursuant to this section.
D. A video service provider shall pay all costs and expenses to provide, maintain and operate facilities and equipment of the video service network, including facilities and equipment for signal carriage, processing, reformatting and interconnection for all of the following: (1) to connect the video service network or cable system, as it may be relocated from time to time, to transmit programming to and from existing locations of public, educational or governmental access facilities and to allow monitoring of access programming at the facilities, and (2) to transmit public, educational and governmental access channels to subscribers with the same prevailing quality, functionality and identification as other channels. Costs other than capital costs incurred by the video service provider are subject to FCC Rule 19-80, Section 76-42.
E. All video service providers and incumbent cable operators shall provide at no initial or recurring charge the basic service tier of video service to one outlet and one receiving device at each building occupied by the city that is not more than two hundred feet from the nearest technically and commercially feasible point of connection on the video service network. The city shall designate the building in writing to the video service provider. Costs incurred by the video service provider or incumbent cable operator are subject to FCC Rule 19-80, Section 76-42. (Ord. 19-238 § 2)
Article 20-5
Miscellaneous
A. The city shall notify in a timely manner each video service provider with a uniform video services license in the city of changes to the boundaries of the city.
B. Audits, including audits of bundled services, of a video services provider’s books and records shall be conducted in compliance with A.R.S. § 9-1445.
C. Except as otherwise provided by law or federal regulation, a uniform video service license is fully transferable to any person whether the transfer arises through merger, sale, assignment, restructuring, change of control or other type of transaction. A transfer does not include an assignment of a uniform video service license for the purpose of securing indebtedness. A transfer may include less than all service areas associated with a uniform video service license. The video service provider shall file with the city clerk written notice of the transfer of the uniform video service license. On the filing of notice under this subsection the transferee becomes the holder of the uniform video service license.
D. Enforcement of this chapter shall be in compliance with A.R.S. § 9-1451.
E. A uniform video services license is subject to and shall be governed by all applicable provisions of federal, state and local law. Notwithstanding any other provisions of the uniform video services license to the contrary, the uniform video services license shall at all times comply with all laws and regulations of the state and federal government or any administrative agencies thereof; provided, however, if any such state or federal law or regulations shall require the licensee to perform any service, or shall permit the licensee to perform any service, or shall prohibit the licensee from performing any service, in conflict with the terms of the license or this chapter, then as soon as possible following knowledge thereof, the licensee shall notify the city attorney of the point of conflict believed to exist between such regulation or law and this chapter or the license. (Ord. 19-238 § 2)
Article 20-6
Enforcement
The requirements of this chapter shall be enforced through the procedures set forth in Arizona Revised Statutes § 9-1451. (Ord. 19-238 § 2)