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a. Any telecommunications corporation desiring a license or franchise under this chapter to occupy the streets and other highways of the City to provide telecommunications services or interstate telecommunications services shall file an application with the City Manager requesting at the applicant’s election either a franchise or license, in the form prescribed by the City Manager, and shall pay an application fee determined by the City Manager. The amount of the application fee shall be reasonably related to the costs directly incurred by the City relating to the granting or administration of the license. The amount of the application fee can be appealed to the City Manager.

b. Each application shall, (i) show where the facilities the applicant will use will be located, or contain such other information as the City may deem necessary in order to ensure that the applicant will comply with requirements for use of and location of facilities in the highways; (ii) identify the applicant, its name, address and telephone number, (iii) describe the services to be provided; and (iv) describe any agreement with any other entity that permits such entity to use the facilities.

c. Upon receiving an application for a franchise or license that satisfies the conditions of section (b), the City shall promptly proffer a telecommunications franchise or license to the applicant for its review, and may inquire into matters relevant to the issuance of the license or franchise. If the applicant agrees to the terms and conditions of the franchise or license, the request shall be submitted to City Council with a recommendation for approval (in the case of a license) or scheduled for a franchise election (in the case of an application for a franchise). Notwithstanding the foregoing, the City need not issue or renew a license, or schedule a franchise election if the applicant has previously had its telecommunications services license, interstate telecommunications services license or franchise revoked, or for any other reason permitted under Arizona law.

d. As a condition of issuing or renewing a license or franchise to use the public highways to provide telecommunications services or interstate telecommunications services, the City may require:

1. Proof that the applicant has received a certificate of convenience and necessity from the Arizona Corporation Commission; except that this requirement shall not apply to a telecommunication corporation that provides solely interstate telecommunications services within this State;

2. The applicant to agree to comply with highway use requirements provided for in this chapter;

3. The applicant to agree to provide and maintain accurate maps showing the location of all its facilities and the facilities it will use in the highways within the City, and to comply with such other mapping requirements as the City may establish from time to time. Applicant shall provide the City with electronic mapping information in a format compatible with the current City electronic mapping format;

4. The applicant to obtain the insurance, and provide proof of insurance as required by the City; to post the performance bonds and security fund required by the City; and to agree to fully indemnify the City, its officers, agents, boards and commissions, in a form satisfactory to the City; and to agree that it shall have no recourse whatsoever against the City or its officials, boards, commissions, agents or employees for any loss, costs, expense or damages arising out of any provision or requirement of the City because of the enforcement of the license or franchise.

5. The applicant to agree to comply with and be bound by the administrative and enforcement provisions as may be prescribed by the City.

e. Every franchise or license shall be subject to the following administrative and enforcement provisions:

1. Franchises and licenses shall be personal to the franchisee or licensee. Except as provided in the license or franchise, no transfer of a franchise, franchisee, licensor or licensee, or change of control over the same (including, but not limited to, transfer by forced or voluntary sale, merger, consolidation, receivership, or any other means) shall occur unless prior application is made to the City and the City’s prior written consent is obtained, which consent will not be unreasonably withheld or delayed.

In making a determination as to whether to approve a transfer the City may consider the same information and qualifications required of an original application for a license or franchise; whether the licensee or franchisee is in compliance with its license or franchise and this chapter and, if not, the proposed transferee’s commitment to cure such noncompliance; whether the transfer would result in an evasion of other applicable provisions of law, or impair lawful contracts; and the effect of the transfer on the City’s interests.

No application for a transfer of a license or franchise shall be granted unless the proposed transferee agrees in writing that it will abide by and accept all terms of this chapter and the license or franchise, and that it will assume all obligations, liabilities, and responsibility for all acts and omissions, known and unknown, of the previous licensee or franchisee under this chapter and the license or franchise for all purposes, including renewal.

Approval by the City of a transfer of a license or franchise does not constitute a waiver or release of any of the rights of the City under this chapter or the franchise or license, whether arising before or after the date of the transfer.

2. Every franchisee or licensee shall be subject to the City’s exercise of such police, regulatory and other powers as it now has or may later obtain, and a franchise or license may not waive the application of the same.

3. Every franchise or license shall be subject to revocation if the franchisee or licensee fails to comply with the material terms and conditions of the license or franchise, or applicable law. Provided, however, that a franchise or license shall not be revoked unless the franchisee or licensee is given written notice of the defect in performance, and fails to cure the performance within sixty days of the notice, except where the City finds that the defect in performance is due to intentional misconduct, is a violation of criminal law, or is part of a pattern of violations where the franchisee or licensee has already had notice and opportunity to cure. A hearing shall be held before a license is revoked if the licensee requests a hearing.

4. Damages caused to public highways. Any remedies available to the City are cumulative, and are not limited by the recovery of any amounts pursuant to the insurance provisions of the license or franchise, or pursuant to any indemnity clause.

5. A requirement that if the franchisee or licensee fails to pay amounts owed to the City by the time prescribed for payment, the franchisee or licensee shall pay interest on the amounts owed, at the rate of one percent per month.

6. A requirement that franchisee or licensee shall produce books and records for the City’s inspection and copying, prepare reports, respond to questions and permit the City to have access to its facilities as the City may request in order to determine whether licensee or franchisee has complied with its obligations under the franchise or license, or other applicable law.

f. A licensee that receives a telecommunications services and interstate telecommunications services license as appropriate, pursuant to this chapter may apply for a renewal of its license, which renewal shall be reviewed in accordance with the requirement of State law.

g. The issuance of a license, permit or other authorization by the City is not a representation or warranty that such license, permit, or authorization is a legally sufficient substitute for a franchise, and it not a representation or warranty that a franchise is not required. (Ord. No. G-4060, § 1, 1997; Ord. No. G-4135, § 1, 1998; Ord. No. G-4351, § 1E, 2001)

State law reference—License conditions, A.R.S. § 9-583(B).