Sec. 7B-5. Franchise application and agreement.

   (a)   Application for franchise. Any applicant desiring a franchise to occupy the streets and other municipal rights-of-way of the city to operate facilities to provide competitive telecommunications services shall file an application with the department of information services in the form prescribed by the department and pay the filing fee prescribed by this chapter. Such application shall be processed in accordance with paragraph (b) of this subsection and Section 7B-29 below.

   (b)   Franchise election. Upon finding that the application is in good order, the department of information services shall promptly notify the applicant of its determination and advise it to pay a franchise election fee to the city clerk in an amount to be determined by the city clerk within a specified number of days thereafter. Upon the city clerk's receipt of the fee, the city clerk shall cause a franchise election to be scheduled at the next date as determined by the mayor and council.

   (c)   Franchise agreement. Within sixty (60) days after notification of acceptance of the terms of the franchise by the city, the applicant shall execute a franchise agreement which shall set forth the terms and provisions of the franchise and which shall be submitted to the electorate pursuant to subsection (b) above. The franchise agreement shall be subject to all provisions of this chapter and shall incorporate all terms and provisions included in the applicant's proposal. In case of any conflict or ambiguity between the terms of the franchise agreement and this chapter, that provision which provides the greatest benefit to the city, in the sole opinion of the city, shall govern. The franchise agreement may be amended only in writing upon mutual agreement between the city and the franchisee and upon approval of the electorate; provided, however, that the city reserves the right to amend this ordinance to reflect or accommodate local concerns, changes in the Arizona Revised Statutes and rules or orders of the Arizona Corporation Commission or the Federal Communications Commission pertaining to telecommunications services and providers and to conform any franchise issued hereunder accordingly.

(Ord. No. 8522, § 1, 6-12-95)

Sec. 7B-6. Policy of innovation.

Recognizing the fluid and expanding state of the development of communications technology and uses, it is the policy of the city to strongly encourage experimentation and innovation in the development of system uses, services, and techniques that will be of general benefit to the community; provided that all such experiments and innovations shall be subject to the rules of the FCC and any other state and city laws.

(Ord. No. 8522, § 1, 6-12-95)

Sec. 7B-7. Time is of the essence.

Whenever this chapter or the license or franchise agreement sets forth any time for any act to be performed by the licensee or franchisee, such time shall be deemed of the essence; and the licensee's failure to perform within the time allotted shall, in all cases, be sufficient grounds for the city to invoke the remedies available under the terms and conditions of this chapter and the license or franchise agreement.

(Ord. No. 8522, § 1, 6-12-95)

Sec. 7B-8. License or franchise required.

   (a)   License or franchise required. No person shall provide competitive telecommunications services within the city, unless a license or franchise has first been granted by the mayor and council pursuant to the provisions of this chapter, and unless the license or franchise agreement is in full force and effect. No applications for a license or franchise shall be considered unless the city has first requested proposals in the form and in the manner prescribed by the city. Nothing in this chapter shall be deemed to require the granting of any license or franchise when in the opinion of the city it would not be in the public interest to do so.

   (b)   License or franchise nonexclusive. Any license or franchise granted pursuant to this chapter by the city shall not be exclusive, and the city specifically reserves the right to grant other licenses or franchises to any persons at any time and in any area of the city if the city determines that the granting of additional licenses or franchises are in the public interest.

   (c)   License or franchise binding. All provisions of this chapter and any license or franchise agreement shall be binding upon the licensee or franchisee, its successors, lessees or assignees.

(Ord. No. 8522, § 1, 6-12-95)

Sec. 7B-9. Grant of authority.

   (a)   Length of license or franchise. Any license or franchise granted by the city pursuant to this chapter shall commence upon execution of the license or franchise agreement by the license or franchisee and the city and shall be for a period of fifteen (15) years, subject to the conditions and restrictions as provided in this chapter. A license or franchise agreement may be renewed pursuant to the provisions of section 7B-18 ("Renewal and Termination") of this chapter. No privilege or exemption shall be inferred from the granting of any license or franchise unless it is specifically prescribed.

   (b)   No right of property. The granting of any license or franchise pursuant to this chapter shall be a privilege and shall not impart to the license or franchisee any right of property in any city street or other city property.

   (c)   Subject to city police powers and other regulatory agencies' rules and regulations. The licensee or franchisee shall, at all times during the term of the license or franchise agreement, be subject to all lawful exercise of the police power by the city, including any and all ordinances, rules, or regulations which the city has adopted or may adopt applying to the public generally and to the licensee or franchisee, and all laws, rules, regulations, orders, and policies of the state and the United States Government. Any conflict between the provisions of this chapter and any other present or future lawful exercise of the city police powers shall be resolved in favor of the latter.

(Ord. No. 8522, § 1, 6-12-95)

Sec. 7B-10. Local regulatory framework.

   (a)   Continuing regulatory jurisdiction. The mayor and council shall have continuing regulatory jurisdiction and supervision over the operation of any license or franchise granted pursuant to this chapter. However, it is recognized that the daily administrative, supervisory, and enforcement responsibilities of the provisions of this chapter and the license or franchise agreement shall be delegated and entrusted to the city Manager as hereafter provided.

   (b)   The city manager or the city manager's designee, as appropriate, shall have the following responsibilities and authority:

   (1)   To interpret, administer and enforce the provisions of this chapter and the license or franchise agreement;

   (2)   To represent the city in all matters pertaining to the implementation of the provisions of this chapter and the license or franchise agreement;

   (3)   To review and audit reports and other documents submitted to the city as required by this chapter or other law, so as to ensure that the necessary reports are completed and fulfilled pursuant to the terms of this chapter;

   (4)   To assure that all records, rules and charges pertinent to the system are made available for inspection at reasonable hours upon reasonable notice;

   (5)   To confer with the licensee or franchisee and advise and supervise the interconnection and compatibility of the system with other systems in the city;

   (6)   To establish and administer sanctions as authorized by the mayor and council to ensure compliance with this chapter;

   (7)   To advise the mayor and council on matters which may constitute grounds for termination of the license or franchise agreement in accordance with this chapter;

   (8)   To advise the mayor and council on proposed transfers of the system;

   (9)   To promulgate regulations regarding the construction, reconstruction, operation, maintenance, dismantling, testing or use of the system as necessary;

   (10)   To ensure that the licensee or franchisee makes all services available to all residents of the city on a nondiscriminatory basis;

   (11)   To perform any other duties assigned under the provisions of this chapter or other legislation which may hereafter be enacted by the mayor and council or such other related duties as the mayor and council may direct.

(Ord. No. 8522, § 1, 6-12-95)

Sec. 7B-11. Regulation costs.

The cost of regulating the license or franchisee shall be paid out of revenue derived from license or franchise fees provided for by section 7B-26 of this chapter. Until such time as the license or franchise fees generated are in an amount sufficient to cover the cost of regulation and other city costs associated with the implementation of this chapter, all as determined by the mayor and council, as such costs and expenses as approved and budgeted by the mayor and council shall be an assessment against the licensee or franchisee and shall be paid within fifteen (15) days, written notice to the licensee or franchisee of the amount due. Amounts so assessed and paid shall be a credit against future license or franchise fee payments pro rata.

(Ord. No. 8522, § 1, 6-12-95)

Sec. 7B-12. Geographic area of the system.

The geographic area of the license or franchise shall include all portions of the city's jurisdiction specifically set forth within the license or franchise.

(Ord. No. 8522, § 1, 6-12-95)