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5A-7: INTERPRETATION OF LICENSE TERMS:
 
   A.   This chapter applies to a license agreement as if fully set forth in the license agreement.
 
   B.   The provisions of a license agreement must be liberally construed in order to effectuate its objectives consistent with this chapter and the public interest.
 
   C.   A license agreement is governed by, and construed in accordance with, the laws of Arizona, the communications act and the rules of the FCC. (Ord. 05-589, 5-23-2005)
 
 
5A-8: APPLICATION FOR GRANT, RENEWAL, MODIFICATION OR TRANSFER OF LICENSE:
 
   A.   An application must be filed with the city for grant of a new license, renewal of a license under either the formal or informal procedures in accordance with section 626 of the cable act, modification of a license agreement, transfer of a license, or, where approval is required, for a transfer of an interest in a licensee. An applicant has the burden to demonstrate compliance with all application requirements of this chapter.
 
   B.   To be acceptable for filing, an application must:
 
      1.   Be submitted in the number of copies required by the city;
 
      2.   Be accompanied by the nonrefundable application filing fee;
 
      3.   Conform to any applicable request for proposals; and
 
      4.   Contain all required information.
 
All applications must include the names and addresses of persons authorized to act on behalf of the applicant with respect to the application.
 
   C.   All applications accepted for filing must be made available by the city for public inspection.
 
   D.   An application for the grant of a new license may be filed pursuant to a request for proposals issued by the city or on an unsolicited basis. The city may, at its option, issue a request for proposals upon receipt of an unsolicited application. If the city elects to issue a request for proposals upon receipt of an unsolicited application, the applicant may submit an amended application in response to the request for proposals, or may inform the city that its unsolicited application should be considered as its response to the request for proposals, or may withdraw its unsolicited application. The city without further consideration may dismiss an application, which is unresponsive to the requirements of a request for proposals.
 
   E.   An application for the grant of a new license must contain, at minimum, the following information:
 
      1.   Identification of the ownership and control of the applicant, including:
 
         a.   The names and addresses of the ten (10) largest holders of an ownership interest in the applicant, and all persons with five percent (5%) or more ownership interest, including the percentage interest held by all such persons;
 
         b.   The persons, if any, who control the applicant; all officers and directors of the applicant; and
 
         c.   Any other business affiliation and cable system ownership interest of each named person.
 
      2.   A statement addressing whether the applicant, or any person controlling the applicant, or any officer or major stockholder of the applicant:
 
         a.   Has been adjudged bankrupt;
 
         b.   Has had a cable license revoked; or
 
         c.   Has been found guilty by any court or administrative agency of a violation of a security or antitrust law.
 
Any statement under this subsection must identify the person or persons involved and provide a full explanation of the circumstances.
 
      3.   A demonstration of the applicant's technical, legal and financial ability, including financing sources and commitments, to construct and operate the proposed cable facility, including identification of key personnel.
 
      4.   The geographic area to be served by the cable system.
 
      5.   If the applicant seeks a limited license under this chapter, a description of how the proposal meets the requirements for a limited license, including the justification for any waiver of the minimum requirements.
 
      6.   A detailed description of the physical facility proposed, including channel capacity, technical design, performance characteristics, headend, and access facilities and equipment.
 
      7.   A description of the construction of the proposed system, including an estimate of aboveground and belowground mileage and its location, the proposed construction schedule, a description, where appropriate, of how services will be converted from existing facilities to new facilities, and information on the availability of space on poles and conduits including, where appropriate, an estimate of the cost of rearrangement of facilities to accommodate such use.
 
      8.   A description of the services to be provided initially, including all broadcast and nonbroadcast signals to be carried and all nontelevision services, and if services will be offered by tiers, identification of the signals or services, or both, to be included on each tier.
 
      9.   The proposed rate structure including charges for each service tier, installation, converters, and other equipment or services.
 
      10.   A demonstration of how the proposal will reasonably meet the future cable related needs and interests of the community, including a description of how the proposal will meet the needs described in any recent community needs assessment conducted for the city.
 
      11.   An affidavit of the applicant or authorized officer that:
 
         a.   Certifies the truth and accuracy of the information in the application;
 
         b.   Acknowledges the enforceability of application commitments; and
 
         c.   Certifies that the proposal meets all applicable federal and state requirements.
 
      12.   If an applicant proposes to construct a cable system which would constitute an overbuild, the identification of the area where the overbuild would occur, the potential subscriber density in the area to be served by competing cable systems, and other information as necessary for the city to make its determination under subsection 5A-9E of this chapter.
 
      13.   Any other information necessary to demonstrate compliance with the requirements of this chapter and information that the city may reasonably request of the applicant.
 
   F.   An application for modification of a license agreement must include, at a minimum, the following information:
 
      1.   The specific modification requested;
 
      2.   The justification for the requested modification, including the impact of the requested modification on subscribers and others, and the impact on the applicant if the modification is not approved;
 
      3.   A statement whether the modification is sought pursuant to section 625 of the cable act, and, if so, a demonstration that the requested modification meets the legal standards of the cable act; and
 
      4.   Any other information necessary for the city to make a determination on the requested license modification.
 
   G.   An application for approval of a transfer of a license or a transfer of an interest in a licensee must comply with the requirements of section 5A-22 of this chapter. (Ord. 05-589, 5-23-2005)
 
 
5A-9: GRANT OF LICENSE:
 
   A.   The city may grant a license for a period not to exceed fifteen (15) years to serve all or any specified geographic areas of the city.
 
   B.   The city may grant a limited license for a period not to exceed ten (10) years to serve a geographic area that meets both of the following criteria:
 
      1.   The geographic area involves no overbuild; and
 
      2.   The geographic area is one where the cable will pass at the time the license is granted an average of fewer than thirty (30) dwelling units per cable mile.
 
   C.   The city may make the grant of a license conditioned on the completion of construction within a specified time or the performance of other specific obligations and specify that the failure of the licensee to comply with the condition will void the license without further action by the city.
 
   D.   A public hearing must be held on each application for a new license that meets all requirements of this chapter. At least fifteen (15) calendar days' public notice must be given before the public hearing. At the public hearing the city manager may accept written and oral testimony and any other material relevant to the application. If more than one application has been submitted, the applications may be considered in the same proceeding.
 
   E.   In evaluating an application for a new license, the city must consider:
 
      1.   The applicant's character;
 
      2.   The applicant's technical, financial, and legal qualifications to construct and operate the proposed system;
 
      3.   The nature of the proposed facilities, equipment, and services;
 
      4.   The applicant's record of cable performance in other communities, if any; and
 
      5.   Whether the proposal will serve the public interest.
 
   F.   Where an applicant proposes to overbuild an existing cable system, the city must also consider:
 
      1.   The beneficial effects of competition, including any reduced rates to consumers, higher technical standards, and more varied programming offerings; and
 
      2.   Any interference or disruption of the existing licensee's operations or service.
 
   G.   Based upon the application, the written and oral testimony and other material presented at the hearing, and any other information relevant to the application, the city manager must notify the applicant of the proposed grant or the denial of the application.
 
   H.   If the city manager proposes to grant a license application, the city manager and the applicant must agree on the terms of a license agreement within sixty (60) days from the notice of the proposed grant. This period may be extended for good cause by the city manager. If agreement is not reached within sixty (60) days or if the period is not extended, the notice of proposed grant is void.
 
   I.   The city must make the text of a proposed license agreement available to the public. A summary of the terms of a proposed license agreement must be advertised for three (3) successive weeks in one or more newspapers of general circulation in the city to give the public the opportunity to comment on the proposed license agreement as required by state law.
 
   J.   After complying with the requirements of this section, the city manager may submit recommendations to grant one or more licenses and proposed license agreements to the council. The council must approve or disapprove the grant of a license.
 
   K.   Every license grant is subject to a license acceptance fee in an amount not to exceed the city's reasonable costs in considering the application, less the amount of the filing fee. Within thirty (30) days of the date the grant of the license is approved by the council, the city must notify the approved applicant of the amount of the license acceptance fee and its method of calculation. If the license acceptance fee is not paid within thirty (30) days of the date the city notifies the approved applicant of the amount, the grant is void. Before the license is effective, the approved applicant must demonstrate compliance with the bond, insurance, and similar provisions of the license agreement. (Ord. 05-589, 5-23-2005)
 
 
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