13-1-6: EXTENSION OF SERVICE; DUTY TO SERVE:
   A.   Minimum Service Area: Except as provided in this section, the city shall not approve any franchise that provides for a service area smaller than the city, as it existed as of the effective date of the franchise. The city may grant a franchise that permits a grantee to serve areas annexed after the effective date of the franchise. The foregoing does not apply:
      1.   To an open video system;
      2.   To a video service provider offering services via an infrastructure system, where infrastructure provider agrees to terms and conditions for system build out, or agrees to make payments to support build out of systems used by others to provide video services, that the city accepts in satisfaction of obligations of video service providers who use such infrastructure system; or
      3.   Where an applicant shows that the service area is economically infeasible; that granting a franchise for a smaller area will not adversely affect the development of competition throughout the city; and that the proposed service area is such that granting a franchise for that area will not unfairly disadvantage any franchised video service provider.
   B.   Time To Provide Service: A video service provider must complete construction of its system within a reasonable time, so that it passes by all dwelling units within its service area, which time shall be specified in the franchise and subject to the density requirements in subsection D of this section.
   C.   Sequence Of Construction: As a condition of receiving a franchise, each video service provider must submit a plan for the sequence of construction that ensures it does not discriminate against residents of the city based on income. The plan must show the timing of construction by geographic area and the schedule for completion of construction by geographic area. A schedule for completion of construction may be tied to the success of the applicant in the marketplace. In determining whether the plan is acceptable, the city may take into account:
      1.   The amount of time required to build out the video service system first franchised to serve Hurricane; and
      2.   The amount of construction required to serve the service area; and
      3.   The time required to provide the applicant reasonable opportunities to recover its investment.
   D.   Density Requirements: A grantee may, but is not required to serve any portion of its service area where the density is less than five (5) dwelling units per linear quarter mile unless the potential subscriber agrees to pay extension charges as provided in this section. In extending service, the following requirements shall be met:
      1.   In any portion of the service area where the density is five (5) dwelling units or more per linear quarter mile, a grantee shall provide video service to any person that requests it at its normal connection fee; provided, that grantee is able to reasonably obtain all easements or permissions, if any, which are necessary to extend service relating thereto. Provided that, where the distance from the curb to the demarcation point on the potential subscriber's premises is greater than one hundred fifty feet (150'), a grantee may charge an additional fee to recover the costs of extending the system the additional distance.
      2.   In areas with less than five (5) residential units per linear quarter mile, a grantee shall offer a cost sharing arrangement with residents desiring video service wherein each will bear their proportionate share of construction costs. For example, if there are four (4) dwelling units per linear quarter mile grantee must extend service if the potential subscribers are willing to pay one-fifth (1/5) of the cost of extending the system to pass by the dwelling units, and the grantee must bear four-fifths (4/5) of the construction cost. Should additional residents actually subscribe to video service in areas where subscribers have already paid a proportionate share under the extension cost sharing formula, subscribers who have previously paid a proportionate share shall be reimbursed pro rata for their contribution or proportional share thereof. In such case, the pro rata shares shall be recalculated and each new subscriber shall pay the new pro rata share, and all subscribers who previously paid a proportionate share shall receive pro rata refunds. However, one year after completion of a project, subscribers who have paid a share of line extension costs shall no longer be eligible for refunds, and the amounts paid in construction costs thereafter shall be credited to the plant account of grantee.
      3.   The subscriber who must pay additional amounts for extended connections or for distribution cable construction, as provided in subsection D2 of this section, shall be given a written estimate of the additional amount payable by them prior to their subscription, and they shall in no event be required to pay more than five percent (5%) over this estimate. (Ord. 2009-08, 7-16-2009)