§ 118.03 DEFINITIONS.
   A cable television license granted on or before December 31, 2019, the terms, phrases, words, abbreviations, and their derivations shall have the meaning given in Town of Florence Ord. 343-04, passed 6-21-2004 and Ord. 366-05, passed 3-7-2005 and § 118.03, as amended for video service license granted on or after July 1, 2020, the words, terms, phrases, abbreviations, and their derivation shall have the same meaning ascribed in A.R.S. § 9-1401, as amended and this section, as amended.
   ACCESS CHANNEL. One or more channels dedicated in whole or in part for local noncommercial programming which is set aside for educational and governmental use, without a charge by the licensee for channel usage and which is originated by the cable company, provided that such access programming shall not include:
      (1)   The retransmission of local television broadcast signals; or
      (2)   Programming produced by persons unaffiliated with the cable company under the provisions of Section 612 of the Cable Act.
   APPLICANT. Any person or organization that applies for a license.
   APPLICATION. A proposal to construct and operate a cable system within the town, 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 or BASIC SERVICE. Any service tier which includes the retransmission of local television broadcast signals.
   CABLE ACT. The Cable Act of 1934, the Cable Communications Policy Act of 1984, 47 U.S.C. § 521 et seq., as amended, the 1992 Cable Act, and the Telecommunications Act of 1996 (“1996 Act”) as amended.
   CABLE SERVICE. The one-way transmission of video or other programming service to subscribers and any subscriber interaction required for the selection or use of such video programming or other service.
   CABLE SYSTEM. Unless otherwise defined in the license agreement, a facility, consisting of a set of open and closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide a cable communications service which includes, but is not limited to, video programming, information services, and communications which is provided to business and residential subscribers within the town. This term does not include:
      (1)   A facility that serves only to retransmit the television signals of one or more television broadcast stations;
      (2)   A facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, Subsection 201, et seq., except that the facility will be considered a cable system to the extent that it is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services;
      (3)   Any facilities of any electric utility used solely for operating its electric utility systems. If any provider operates or maintains connection to such an unlicensed system, this system is not exempt from the provisions of the agreement and must either be licensed or the connection shall cease.
   COMPLAINT. A subscriber or citizen issue presented in verbal or written form, to the licensee or the town relating to any aspect of the licensee's performance under this chapter.
   CONTROL OF A LICENSEE OR APPLICANT. The legal or practical ability to direct the affairs of the licensee or applicant either directly or indirectly, whether by contractual agreement or majority ownership of an economic interest. In the case of a limited partnership, a change in limited partner interests shall not constitute a change in control where the limited partners have no power to participate in the management of the partnership, and the general partner retains full power.
   COUNCIL. The present governing body of the town or any future Council constituting the legislative body of the town.
   DENSITY. The number of potential subscriber households or businesses per mile of cable system.
   DWELLING UNITS AND BUSINESSES. Shall be counted when they are within 250 feet of any portion of the cable distribution system including trunk and feeder cable lines.
   DWELLING OR OCCUPIED 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, or place or business. Included in this definition, but not limited to this definition are: all single-family homes, each apartment or multi-family unit, each condominium unit, patio homes, guest quarters and similar type structures, and occupied commercial and industrial businesses.
   EDUCATIONAL INSTITUTION. Any public educational institution, which is accredited by a nationally recognized organization, including local primary and secondary schools, colleges and universities.
   EG ACCESS CHANNEL or EG CHANNEL. Any channel set aside for use by an educational institution or government agency use without a charge by the licensee for channel usage.
   FAIR MARKET VALUE. The price that a willing buyer would pay to a willing seller for a going concern based on the system valuation prevailing in the industry at the time but with no value allocated to the license itself.
   FCC. The Federal Communications Commission.
   GOVERNMENT AGENCY. Any state, local, regional or special government agency with a physical presence within the town.
   GROSS REVENUES.
      (1)   Unless defined in the license agreement, shall mean all cash, credits, property of any kind or nature, or other consideration, less related bad debts up to a maximum of 1.5% annually of such cash, credits and property, received directly or indirectly by a licensee, its affiliates, subsidiaries, parent and any person, firm or corporation in which a licensee has a financial interest or which has a financial interest in a licensee, arising from or attributable to the licensee's operation of its cable television system within the town, including, but not limited to:
         (a)    Revenue from all charges for services provided to subscribers;
         (b)   Revenue for all charges for the insertion of commercial advertising upon the cable system;
         (c)   Revenue from all charges for the leased use of studios;
         (d)   Revenue from all charges for the installation, removal, connection and reinstatement of equipment necessary for a subscriber to receive cable service;
         (e)   Revenue from the sale, exchange, use or cablecast of any programming developed for community use or institutional users.
         (f)   Revenue from all charges for the use of or lease of leased access channels or band width.
         (g)   Revenue from the production or transmission over the cable system of video programming by licensee including programming produced by its mobile facilities.
         (h)   Any other income derived from the cable system as permitted by law.
      (2)   Shall not include taxes collected by licensee on behalf of any governmental authority; any surcharges for underground conversion of cable plant costs; any increase in the value of any stock, security or asset; the value of complimentary services provided to licensee's employees and is required by this chapter or any license; and dividends or other distributions made in respect of any stock or securities, or value received by a licensee or any of its affiliates, subsidiaries or parent relating to licensee services or through cooperative advertising.
      (3)   (a)   Shall not include cash, credit, property of any kind or nature or other consideration received by a licensee's affiliates, subsidiaries, parent or any person, firm or corporation (“affiliate”) in which a licensee has a financial interest or which has financial interest in a licensee for any sales of advertising on the cable system, services to provide programming on the cable system, production services and/or telecommunication services which are cable services when such services are provided by an affiliate, which has all the following characteristics: the affiliate is a separate legal entity, with separate employees, with separate financial records (which may be part of consolidated financial reporting records) and a separate mission; it makes payments to licensee which meet market standards for the services and industries involved, even if it does not offer and provide its services to persons other than licensee in the same industry as licensee; and it was established for valid business purposes and not with the intent and purpose of circumventing payment of license fees on gross revenues. Nothing contained in this exclusion from gross revenues shall be interpreted to exclude from gross revenues such cash, credit, property of any kind or nature or other consideration which would be considered the licensee's gross revenues derived from the operation of the cable system under the Cable Act. Except for gross revenue from such sales of advertising on the cable system, services to provide programming on the cable system, production services or telecommunication services which are cable services received by such affiliate, this subsection shall not exclude from gross revenues any source of gross revenues which an existing licensee itself is receiving at the time it is granted a license under this chapter.
         (b)   When a licensee (or an affiliate) holds one or more other cable television licenses in the county and receives and allocates gross revenues from subsections (1)(b), (f) and (g), then GROSS REVENUES derived from subsections (1)(b), (f) and (g) shall be allocated pro rata to the town based on the ratio of the number of subscribers of licensee (or an affiliate), in the town to the number of subscribers of licensee (or an affiliate) in all the jurisdictions in the county, in which licensee (or an affiliate) holds a cable license. If a licensee does not allocate its gross revenues derived from subsections (1)(b), (f) and (g) from such other jurisdictions then the number of subscribers in such jurisdictions shall not be included in the total number of subscribers in all other jurisdictions.
   INSTITUTIONAL SERVICES. Video, audio, data and other transmission services provided by a licensee to institutional users on an individual application, private channel basis, including, two-way video, audio or digital signals among institutions, or from institutions to residential subscribers.
   INSTITUTIONAL USER. Includes any private, governmental, or academic organization or facility including but not limited to schools, business, industry, correctional facilities or other organized body promoting or organized for some purpose.
   LEASED ACCESS CHANNEL. A channel designated in accordance with Section 612 of the Cable Act, for commercial use by persons unaffiliated with the licensee.
   LICENSE. The right granted by the town, as described in this chapter, to a licensee to construct, maintain and operate a cable system over, on, or under streets, roads and all other public ways, easements, public places and rights-of-way within all or specified areas of the town. The term does not include any license or permit that may be required by this chapter or other laws, ordinances, or regulations of the town for the privilege of transacting and carrying on a business within the town or for disturbing the surface of any street or public thoroughfare.
   LICENSE AGREEMENT. A contract entered into in accordance with the provisions of this chapter between the town and a licensee that sets forth the terms and conditions under which the license will be exercised.
   LICENSE FEE. The fee based on the gross revenue derived from operating and use of public rights-of-way and for operating a cable communications system within the limits of the town. The licensee shall pay the town a fee no less than the percent of the licensee's gross revenues from all sources attributable to operations of the licensee within its license area during the period of its license. The percentage is described in later in this chapter.
   LICENSEE. Any person or company granted a license under this chapter, and includes any transferee, successor or assignee of the person or company.
   MALFUNCTION. An equipment or facility failure that results in the loss of satisfactory service on one or more channels.
      (1)   MINOR MALFUNCTION. An equipment or facility failure that results in the loss of a viewable signal on up to four channels.
      (2)   MAJOR MALFUNCTION. Has occurred when five or more channels are affected.
   OUTAGE. An equipment or facility failure that results in a total loss of signal on all cable channels affecting three or more subscribers within one linear mile during any 120-minute period.
   OVERBUILD. A cable system constructed to serve any subscribers served by an existing cable system.
   SERVICE CALL. Results when service problems occur relating to:
      (1)   A total loss of or degraded signal or picture on one or more channels or services; or
      (2)   Property damage by licensee employees or authorized contractors.
   STANDARD DROP. Cable connection which requires no more than a 125-foot drop measured from the nearest point of subscriber's home or place of business to the nearest active tap on the cable system, 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.
   SUBSCRIBER. Any person, business or entity who legally receives any cable service provided by a cable system but does not include persons who receive not more than two channels of noncommercial closed circuit video service which is not made available to the general public.
   TOWN. The Town of Florence, a municipal corporation of the State of Arizona, in its current and future boundaries as increased or decreased by law. Unless otherwise clear from the context, where the term TOWN is used in this chapter, it means the Town Manager. However, where legislative approval of an activity is specifically required under this chapter, TOWN means the Town Manager subject to the approval of the Town Council.
   TOWN MANAGER. The Chief Executive Officer of the town or designee.
   TWO-WAY CAPABILITY. The incorporation in a cable 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.
   USER. A person utilizing a cable system's facilities for purposes of transmission of material or information to subscribers or others.
(Prior Code, Ch. 18, Art. V, § 18-302) (Ord. 343-04, passed 6-21-2004; Ord. 366-05, passed 3-7-2005; Ord. 679-19, passed 7-1-2019)