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(A) Franchise election. Upon finding that a franchise proposal is acceptable and in good order, the City Engineer's Office shall promptly notify the persons seeking the franchise, and advise them to pay a franchise election fee to the City Clerk within a specified number of days in an amount to be determined by the City Clerk that recovers all city costs. Upon the City Clerk's receipt of the fee, the City Clerk shall schedule a franchise election at the next date determined by the City Council.
(B) Length of license or franchise. Any license or franchise granted by the city pursuant to this chapter shall commence upon adoption of the license or franchise and acceptance of the license or franchise by the provider. The license or franchise shall be effective for a period determined by the City Council, but in the case of a license to a telecommunications corporation to construct, install, operate or maintain telecommunications facilities, the period shall be five (5) years. Each license or franchise is subject to the conditions and restrictions provided in the instrument and this chapter. The city may terminate a license or franchise in accord with its terms and conditions if the licensee or franchisee is in default thereunder, subject to § 92-20.
(C) License or franchise agreement. The city reserves the right, at its discretion, to require providers seeking a license or franchise under this chapter to execute a binding agreement setting forth all terms and provisions of the contractual relationship between the city and the provider regarding the presence of communications facilities within city public highways. Such agreements may be amended only in writing subject to the mutual consent of the parties, and in the case of agreements relating to franchises, with the concurrence of the electorate at an election.
(D) No warranty. Providers may choose between requesting a license or franchise under this section. The issuance of a license by the city is neither a representation nor a warranty that such license is a legally sufficient substitute for a franchise and is neither a representation nor a warranty that a franchise is not required.
(E) As a condition of issuing or renewing a license or franchise pursuant to this chapter, applicant must:
(1) Show, in the case of a telecommunications corporation seeking a telecommunications license or franchise, that the applicant has and maintains a valid certificate of convenience and necessity from the Arizona Corporation Commission or the Federal Communications Commission or the successor of either, as the case may be and in other cases, applicant must demonstrate that it is qualified to hold a license or franchise; except that this requirement shall not apply to a telecommunication corporation that provides solely interstate telecommunication services within Arizona;
(2) Agree to conform to public highway use requirements that the city may establish from time to time;
(3) Agree to provide and maintain accurate locational maps and drawings of all of applicant’s facilities as proposed and as built in the public highway, and to comply with such other mapping requirements as the city may establish from time to time;
(4) Satisfy insurance, bonding, and security fund requirements established pursuant to § 92-41(H); fully indemnify the city, its Mayor and Councilmembers, employees, officers, agents, boards and commissions, in a form satisfactory to the city; and agree that applicant shall have no recourse against the city for monetary damages as a result of any damage that may result from the city's exercise of its rights under the license, or applicable provisions of law; and
(5) Agree to comply with and be bound by the administrative and enforcement provisions set forth in this chapter and as may be prescribed from time to time by the city consistent with state law, which may include:
(a) Provisions covering assignment.
(b) The right to inspect records to determine compliance by the licensee.
(c) Provisions for renewal.
(d) Fees and charges contemplated by A.R.S. § 9-582(C), as amended, may be charged by the city pursuant to Chapter 210 of the City Code.
(F) Nothing herein shall be read to prevent the city from considering other matters or establishing additional conditions. Except as prohibited by state law, nothing herein shall be read to require the city to issue or renew a license if the applicant has previously had a license or permit revoked, or for any other reason permitted under Arizona law. Every licensee shall be subject to the city’s exercise of such police, regulatory and other powers as the city now has or may later obtain, and a license may not waive the application of the same, and must be exercised in strict conformity therewith.
(G) A cable franchise or license issued under other provisions of this code shall not constitute for any purpose the license or franchise required under this chapter. Nothing in this chapter shall be read to relieve the operator of an open video system of the obligation to obtain a license or franchise before installing, constructing, operating or maintaining an open video system, and before providing open video system services.
(H) A license or franchise issued pursuant to this chapter may not be transferred without the prior, written consent of the city. A "transfer"is any transaction, however nominated, that results in a change in the franchisee or licensee, or a change in the control of the communications facility, in whole or part, or a change in the control of franchisee, licensee or its parents, or that purports to transfer or subdivide any of the rights granted pursuant to the license or franchise.
(Ord. O98-02, passed 1-7-98; Ord. O99-52, passed 8-4-99; Ord. O2018-019, passed 8-1-18)