For purposes of this chapter, the following words, abbreviations and their derivations shall have the meanings given herein. Words not defined are given the meaning in § 602 of the Cable Act, 47 U.S.C. § 522, and, if none, their common and ordinary meaning. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The words MUST and SHALL are mandatory and the word MAY is permissive.
   ACCESS CHANNEL. Any channel set aside under the license agreement for public use, educational use or governmental use without a charge to the user by the licensee for channel usage. An ACCESS CHANNEL may be scheduled or may be operated so that any member of the general public may cablecast.
   ACTIVATED CHANNELS. Those channels engineered at the headend of a cable TV system for the provision of services generally available to residential subscribers of the cable TV system, regardless of whether those services actually are provided, including any channel designated for public, education or governmental use.
   ACTUAL COST. The actual cost to the licensee of materials and labor necessary to perform installation, construction or maintenance of facilities.
   AFFILIATE. Any person who owns or controls, is owned or controlled by, or is under common ownership or control with the licensee.
   APPLICANT. Any person that applies for a license.
   APPLICATION. A proposal to construct and operate a cable TV system within the city, transfer a license, renew a license or modify a license. An application includes the initial proposal plus all subsequent amendments or supplements to the proposal and relevant correspondence.
   BASIC CABLE SERVICE. Any service tier that includes the retransmission of local television broadcast signals.
   CABLE ACT. The Cable Communications Policy Act of 1984, 47 U.S.C. §§ 521 et seq.
   CABLE OPERATOR. Any person or group of persons that is issued a license by the licensing authority to construct, operate and maintain a cable TV system in the public rights-of-way.
   CABLE SERVICE. The one way transmission to subscribers of video programming or other programming service and subscriber interaction, if any, that is required for the selection or use of the video programming or other programming service.
   CABLE TV SYSTEM or SYSTEM. Any facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide cable service that includes video programming and that is provided to multiple subscribers within a community. CABLE TELEVISION SYSTEM does not include:
      (1)   A facility that serves fewer than fifty subscribers.
      (2)   A facility that serves subscribers without using any public right-of-way.
      (3)   A facility that serves only to retransmit the television signals of one or more television broadcast stations.
      (4)   A facility of a common carrier that is subject, in whole or in part, to 47 United States Code sections 201 through 276, except that the facility is considered a cable TV system, other than for purposes of 47 United States Code section 541(c), to the extent the facility is used in the transmission of video programming directly to subscribers, unless the extent of the use is solely to provide interactive on-demand services.
      (5)   An open video system that complies with 47 United States Code section 573.
      (6)   A facility of an electric utility that is used solely for operating its electric utility system.
   CHANNEL. A time or frequency slot or technical equivalent on the cable TV system in a specified format, discretely identified and capable of carrying full motion color video and audio, and may include other non-video subcarriers and digital information.
   CHANNEL EQUIVALENT. The system capacity required to provide the transmission of a video signal, with accompanying audio, that is in digital format and capable of producing sound and picture of NTSC quality or better, based on the compression technology then in use in the cable TV system.
   CITY. The City of Apache Junction, an Arizona municipal corporation (also referred to the (LICENSING AUTHORITY), in its present boundaries, and its future boundaries as increased or decreased by law.
   CITY MANAGER. The chief executive officer of the city or his or her designee.
   COMPLAINT. A subscriber or citizen issue, presented in verbal or written form, to the licensee or the city relating to any regulatable aspect of the licensee’s performance under this chapter.
   CONSUMER PRICE INDEX or CPI. The annual average of the Consumer Price Index for all Urban Consumers (CPI-U), as published by the Bureau of Labor Statistics.
   CONTROLLING INTEREST. A business entity’s operational authority, which is not limited to majority stock ownership, but also includes actual working and management (day-to-day) control in whatever manner exercised.
   CONVERTER. A tuning device which converts transmitted signals to a frequency which permits their reception on a television set.
   COUNCIL. The Council of the City of Apache Junction.
   DAY. Calendar day.
   DWELLING UNIT. Any separate and distinct structure or part thereof which exists in finished form, occupied or capable of year-round occupation, and serves as a residence to one or more persons. Included in this definition, but not limited to are: all single family homes, each apartment unit, each condominium unit, patio homes, guest quarters and similar type structures.
   EASEMENT. Property interest which allows the erection, construction or maintenance of a cable TV system, its structures, equipment or facilities.
   EXPANDED BASIC SERVICE. The next most highly penetrated tier of cable service programming above the Basic Service tier excluding premium or pay-per-view services.
   FAIR MARKET VALUE. The price that a willing buyer would pay to a willing seller.
   FCC. The Federal Communications Commission.
   FEDERAL AGENCY. Any agency of the United States.
   GROSS REVENUES. Amounts in whatever form and from all sources derived directly or indirectly by Licensee and/or an affiliate from the operation of licensee’s cable system to provide cable services within a license area. GROSS REVENUES include, by way of illustration and not limitation:
      (1)   Fees for cable services, regardless of whether such cable services are provided to residential or commercial subscribers, including revenues derived from the provision of all cable services (including but not limited to pay or premium cable services, digital cable services, pay-per-view, pay-per-event, audio channels and video-on-demand cable services);
      (2)   Installation, disconnection, reconnection, downgrade, upgrade, maintenance, repair, or similar charges associated with subscriber cable service;
      (3)   Fees paid to licensee for channels designated for commercial/leased access use, which shall be allocated on a pro rata basis using total cable service subscribers within the license area;
      (4)   Converter, remote control, and other cable service equipment rentals, leases, or sales;
      (5)   Payments for pre-paid cable services and/or equipment;
      (6)   Advertising Revenues as defined herein;
      (7)   Fees including, but not limited to: (1) late fees, convenience fees and administrative fees which shall be allocated on a pro rata basis using cable services revenue as a percentage of total licensee revenues within the license area; (2) license fees; (3) the FCC user fee and (4) public, education and government (“PEG”) fees if included on subscriber billing statements;
      (8)   Revenues from program guides; and
      (9)   Commissions from home shopping channels and other cable service revenue sharing arrangements which shall be allocated on a pro rata basis using total cable service subscribers within the license area.
      (10)   GROSS REVENUES shall not be net of: (1) any operating expense; (2) any accrual, including without limitation, any accrual for commissions to affiliates; or (3) any other expenditure, regardless of whether such expense, accrual, or expenditure reflects a cash payment.
   GROSS REVENUES, however, shall not be double counted. Revenues of both licensee and an affiliate that represent a transfer of funds between the licensee and the affiliate, and that would otherwise constitute GROSS REVENUES of both the licensee and the affiliate, shall be counted only once for purposes of determining GROSS REVENUES. Similarly, operating expenses of the licensee which are payable from licensee’s revenue to an affiliate and which may otherwise constitute revenue of the affiliate, shall not constitute additional GROSS REVENUES for the purpose of this license. GROSS REVENUES shall include amounts earned by affiliates only to the extent that licensee could, in concept, have earned such types of revenue in connection with the operation of licensee’s cable TV system to provide cable services and recorded such types of revenue in its books and records directly, but for the existence of affiliates. GROSS REVENUES shall not include sales taxes imposed by law on subscribers that the licensee is obligated to collect. With the exception of recovered bad debt, GROSS REVENUES shall not include bad debt.
         (a)   ADVERTISING REVENUES shall mean amounts revenues derived from sales of advertising that are made available to licensee’s cable system subscribers within the license area and shall be allocated on a pro rata basis using total cable service subscribers reached by the advertising. Whenever licensee acts as the principal in advertising arrangements involving representation firms and/or advertising interconnects and/or other multichannel video providers, advertising revenues subject to license fees shall include the total amount from advertising that is sold, and not be reduced by any operating expenses (e.g., “revenue offsets” and “contra expenses” and “administrative expenses” or similar expenses), or by fees, commissions, or other amounts paid to or retained by representation firms, other multichannel video providers, involved with sales of advertising on the cable system within the license area.
         (b)   GROSS REVENUES shall not include:
            1.   Actual cable services bad debt write-offs, except any portion which is subsequently collected which shall be allocated on a pro rata basis using cable services revenue as a percentage of total licensee revenues within the license area;
            2.   Any taxes and/or fees on services furnished by licensee imposed on subscribers by any municipality, state or other governmental unit, provided that the license fee, the FCC User fee and PEG fee shall not be regarded as such a tax or fee;
            3.   Launch fees and marketing co-op fees; and
            4.   Revenues associated with the provision of managed network services provided under separate business contact.
            5.   Unaffiliated third party advertising sales agency fees which are reflected as a deduction from revenues, except when licensee acts as a principle as specified in paragraph (A) immediately above.
         (c)   To the extent revenues are derived by licensee for the provision of a discounted bundle of services which includes cable services and non-cable services, licensee shall calculate revenues to be included in GROSS REVENUES using a methodology that allocates revenue on a pro rata basis when comparing the bundled service price and its components to the sum of the published rate card prices for such components. Except as required by specific federal, state or local law, it is expressly understood that equipment may be subject to inclusion in the bundled price at full rate card value. This calculation shall be applied to every bundled service package containing cable service from which licensee derives revenues in the license area. The city reserves its right to review and to challenge licensee’s calculations. Example: Prior to any bundle-related price reduction, if cable service is valued at 50% of the total of the services to be offered in a bundle, then cable service is to be valued and reported as being no less than 50% of the price of the bundled service total.
   INSTALLATION. The connection of the cable TV system from a remote terminal to a subscriber’s residence or place of business.
   INTERACTIVE ON-DEMAND SERVICES. A service providing video programming to subscribers over switched networks on an on-demand, point-to-point basis, but does not include services providing video programming prescheduled by the programming provider.
   LABOR COSTS. Actual cost to licensee of contract labor or hourly wages or apportioned salaries of licensee’s employees plus fully loaded labor costs.
   LICENSE. An initial authorization, or renewal thereof (including a renewal of an authorization which has been granted subject to Title 47 U.S.C. § 546), issued by a licensing authority, whether such authorization is designated as a franchise, permit, resolution, contract, certificate, agreement or otherwise, which authorizes the construction or operation of a cable TV system.
   LICENSE AGREEMENT. A contract entered into in accordance with the provisions of this chapter between the city and a licensee that sets forth the terms and conditions under which the license will be exercised.
   LICENSE AREA. The entire existing territorial limits of the city and any area annexed thereto during the term of the license.
   LICENSE FEE. As defined in Title VI of the Federal Communications Act of 1934, 47 U.S.C. § 542, as amended.
   LICENSEE. Any person who has been granted a license by the city or any lawful transferee or successor interest.
   LICENSING AUTHORITY. The City of Apache Junction.
   LIVING UNIT. A distinct address in the network inventory system where the cable operator currently has, had in the past, or had planned to provide telephone or high-speed internet service to a customer. This includes, but is not limited to, single family homes, multi-dwelling (e.g., apartment buildings and condominiums) units and business locations.
   MATERIAL COSTS. Actual cost of material to licensee, including sales tax and freight paid, plus handling and processing charges equal to 3% of material costs.
   MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR. A person such as, but not limited to, a cable operator, a multichannel multipoint distribution service, a direct broadcast satellite service or a television receive-only satellite program distributor, who makes available for purchase, by subscribers or customers, multiple channels of video programming.
   NORMAL BUSINESS HOURS. Those hours during which most similar businesses in the community are open to serve customers. In all cases, NORMAL BUSINESS HOURS must include some evening hours at least 1 night per week and/or some weekend hours.
   NORMAL OPERATING CONDITIONS. Those service conditions which are within the control of the cable operator. Those conditions which are not within the control of the cable operator include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages and severe or unusual weather conditions. Those conditions which are within the control of the cable operator include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance, upgrade or rebuild of the cable TV system.
   OTHER PROGRAMMING SERVICE. Information that a cable operator makes available to all subscribers generally.
   PERSON. Any individual, corporation, partnership, association, joint venture or organization of any kind and the lawful trustee, successor, assignee, transferee or personal representative thereof.
   PUBLIC RIGHTS-OF-WAY. The surface, the air space above the surface, and the area below the surface of any public street, highway, lane, path, alley, sidewalk, boulevard, drive, bridge, tunnel, park, parkway, waterway, public utility easement or similar property now or hereafter held by the city, which, consistent with the purposes for which it was dedicated, may be used for the purpose of installing and maintaining the cable TV system. No reference herein to PUBLIC RIGHTS-OF-WAY shall be deemed to be a representation or guarantee by the city that its interest or other right to control the use of the property is sufficient to permit its use for those purposes, and a licensee shall be deemed to gain only those rights to use as are properly in the city and as the city may have the right and power to give. PUBLIC RIGHTS-OF-WAY, for the purpose of this chapter, do not include buildings, parks, poles, or similar facilities, or property owned by or leased to the city, including by way of example and not limitation, structures in the PUBLIC RIGHTS-OF-WAY, such as utility poles and light poles.
   REMOTE TERMINAL. A “Digital Subscriber Line Access Multiplexer” (“DSLAM”) capable of offering cable TV services to subscribers.
   SCHOOL. Any public educational institution, which is accredited by a nationally recognized institution, including primary and secondary schools, colleges and universities.
   SERVICE INTERRUPTION. The loss of picture or sound on one or more cable channels or channel equivalents.
   SERVICE TIER. A category of cable service or other services provided by a cable operator and for which a separate rate is charged by the cable operator.
   STANDARD DROP. That cable connection which requires no more than 150-foot drop measured from the ground block on the subscriber’s home or place of business to the nearest active tap on the cable TV system, (which cannot be more than 4,000 feet from a Remote Terminal) involving only one outlet and standard materials and does not involve a wallfish. In addition, a STANDARD DROP shall exclude custom installation work including specific subscriber requested work that requires nonstandard inventory or cable routing that requires construction methods exceeding reasonable underground or aerial work.
   STATE. Any state or political subdivision, or agency thereof.
   SUBSCRIBER. Any individual or entity legally receiving, for any purpose, cable services of the licensee’s cable TV system.
   SYSTEM OUTAGE. A service interruption affecting more than ten subscribers.
   SYSTEM REBUILD or REBUILD. A major improvement or enhancement in the technology or service capabilities made by the licensee to the cable TV system.
   TWO-WAY CAPABILITY. The incorporation in a cable TV system of all appropriate design and engineering characteristics so that two-way transmission, including addressability, over the system can be implemented with a minimum of expense. The two-way capability specifically includes, but is not limited to, services for internet access and pay-per-view as well as emerging technologies.
   USABLE ACTIVATED CHANNELS. Activated channels of a cable TV system, except those channels whose use for the distribution of broadcast signals would conflict with technical and safety regulations as determined by the FCC.
   VIDEO PROGRAMMING. Programming provided by, or generally considered comparable to programming provided by, a television broadcast station.
(Ord. 1413, passed 2-3-2015)