In this chapter unless the context otherwise requires:
"Community antenna television system or CATV"
means coaxial cables, waveguides or other conductors and equipment for providing television and audio communication services by cable or through its facilities as herein contemplated.
"Council"
means the present governing body or future governing body of the town.
"Grantee"
means the person to whom a franchise under this chapter is granted.
"Gross receipts"
means any and all compensation and other consideration in any form whatever and any contributing grant or other subsidy received directly or indirectly from subscribers, users, television stations or others in payment for the grantee's services in providing television signals or electrical impulses to subscribers within the town. In the event that the grantee should engage in business or businesses connected with, or incidental to the business of providing television signals or electrical impulses to subscribers within the town, the receipts from said business or businesses connected with, or incidental to the business of providing television signals or electrical impulses to subscribers within the town, shall be included within the term "gross receipts." The term also shall include any and all compensation received from transmission of any special programs or events for which a separate and distinct charge is made to the subscriber in the manner commonly known and referred to as "pay television" or "HBO."
"Public way"
means any street, highway, road, walk, freeway, parkway, lane, alley, court or drive, in which the public has a right-of-way, or any easement which the town controls, now or hereafter existing as such.
"Subscribers"
means any person or entity receiving for any purpose, the CATV service of the grantee herein.
"Television"
means a system for transmission or reception of data, audio signals or visual images by means of electrical impulses.
"Town"
means the town of Huachuca City, Cochise County, Arizona, in its present incorporated form, or in any later recognized, consolidated, enlarged or re-incorporated form.
(Prior code § 9-3-1)
A. 
There is hereby granted and sold to Jim R. Smith and Company, dba Dragoon CATV, Inc., an Arizona Corporation, its successors and assigns (herein called "grantee") the rights, privilege and franchise to engage in the business of providing and operating a CATV system in Huachuca City, Arizona, and for that purpose to construct, erect, lease, install, replace, reconstruct, maintain and retain in, on, under, across and along any public way such as poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property as may be necessary and appurtenant to the CATV system; and in addition, so to use, operate and provide similar facilities on properties rented or leased from a public utility franchised or permitted to do business in the town.
B. 
No provision of this chapter shall be construed to preclude the grantee from introducing program materials into the franchised CATV system or portion thereof.
(Prior code § 9-3-2)
All construction under this grant shall be constructed and maintained with respect to such public ways, in accordance with the National Electrical Safety Code, insofar as it applies to a CATV system, and before any installations are made in said public ways, a map showing the location of such installations shall be submitted to the council for its approval.
(Prior code § 9-3-3)
A. 
The poles used for the grantee's distribution system shall be those erected and maintained by the Mountain Bell Telephone Company or the Sulphur Springs Valley Electric Cooperative, Inc., when and where practicable or mutually satisfactory. If rental agreements cannot be made with said corporations, the grantee shall have the right to erect and maintain its own poles, as may be necessary for the proper construction and maintenance of the television distribution system. Justification and location of said poles must meet with the majority approval of the council.
B. 
The grantee's transmission and distribution system poles, wires and appurtenances shall be located, erected and maintained so as not to endanger or interfere with the lives of persons, or to interfere with new improvements this town may deem proper to make, or to unnecessarily hinder or obstruct the free use of the streets, alleys, bridges or other public property. Removal of poles to avoid such interference will be at the company's expense.
C. 
Construction and maintenance of the transmission distribution system, including house connections, shall be in accordance with the provisions of the National Electrical Safety Code and such applicable ordinances and regulations of the town affecting electrical installations, which may be presently in effect or changed by future ordinances.
D. 
Installation shall be uniform throughout the town, except that the grantee shall be free to change its hardware and installation procedure as the art progresses.
E. 
In the maintenance and operation of its television transmission and distribution system in the streets, alleys and other public places, and in the course of any new construction or addition to its facilities, the grantee shall proceed so as to cause the least possible inconvenience to the general public. Openings or obstructions in the streets or other public places made by the company in the course of its operations shall be guarded and protected at all times by the placement of adequate barriers, fences or boardings, the bounds of which, during period of dusk and darkness, shall be clearly designated by red warning lights. What are "adequate" barriers and the like shall rest in the discretion of the council.
(Prior code § 9-3-4)
The town shall have the right, without cost, to make attachments to poles owned and used by the grantee within the town for the town's wires used by it in connection with its fire alarm or police signal system or for seasonal decorations, such attachments to be installed and maintained in accordance with the requirements of the National Electrical Safety Code, pertaining to such construction, and only after written notice to the grantee; provided, however, that the grantee shall assume no liability nor be put to any additional expense in connection therewith; and, provided further, that the town's use thereof shall be in such manner as not to interfere with the grantee's use of the same.
(Prior code § 9-3-5)
All rates and charges exacted by the company shall be fair, reasonable, just and uniform. Further, said rates may be implemented only after a public hearing. All rates shall be governed by the existing rate structures for cable television provided by Jim R. Smith and Company, dba Dragoon CATV, Inc., an Arizona corporation, in adjoining communities. "Adjoining communities" shall be defined as any and all communities receiving cable television service from Jim R. Smith and Company, dba Dragoon CATV, Inc.
(Prior code § 9-3-6)
Installation and maintenance of equipment shall be such that standard color signals shall be transmitted to any subscriber receiver.
(Prior code § 9-3-7)
A. 
As further consideration for the franchise hereby granted, grantee will pay to the town a sum equal to two percent of the gross receipts of the grantee from the sale of CATV service to subscribers within the corporate limits of the town, as shown by grantee's collection records, such payments to be due and payable quarterly. For the purpose of verifying the amounts payable hereunder, the books and records of the grantee shall be subject to inspection by duly authorized officials or representatives of the town, at reasonable times.
B. 
In the event that the town, in addition to the payments hereinabove provided for, shall assess, charge or levy upon grantee or its business within the town, any license, privilege, occupation, excise or revenue taxes or other exactions (except general ad valorem property taxes and special assessments for local improvements), then the payments hereinabove provided for shall be reduced by the amount of the license, privilege, occupation, excise or revenue taxes or other exactions paid by the grantee. If, in any year, said taxes or exactions equal or exceed the payments hereinabove provided for, then no such payments shall be due or payable hereunder for such year.
(Prior code § 9-3-8; Ord. 01-015 § 6, 2001)
The right, privilege and franchise hereby granted shall continue and exist for a period of 15 years from the effective date hereof. Said right, privilege and franchise shall be subject to review of each newly elected council because of laws of the state of Arizona which indicate that one council cannot bind or commit a newly elected council. If at any time during the term of said franchise the grantee shall fail to comply with a material provision of this chapter and if such noncompliance shall continue for a period of 60 days after written notice of the same has been given by the town to the grantee, then, and in such event, but not before the expiration of said 60-day period, the council shall serve notice upon the grantee of a public hearing, and after having held said hearing, upon a finding by the majority of the members of the council that the grantee has failed to comply with any material provision of this chapter, the council may declare said franchise terminated. It is further provided that the grantee shall be given at least 60 days' notice of any public hearing to be held on the question of the grantee's failure to comply with any of the material provisions of this chapter.
(Prior code § 9-3-9)
The grantee shall indemnify, protect and save harmless the town from and against losses and physical damages to property and bodily injury or death to persons, including payments made under any Workmen's Compensation law, which may arise out of or be caused by the erection, maintenance, presence, use or removal of said attachments on poles within the town, or by any act of the grantee, its agent or employees. The grantee shall carry insurance to protect the parties hereto from and against all claims, demands, actions, judgments, costs, expenses and liabilities which may arise or result, directly or indirectly, from or by reason of such loss, injury or damage. The amounts of such insurance against liability due to physical damage to property shall not be less than $50,000 as to any one accident and not less than $500,000 aggregate in any single policy year; and against liability due to bodily injury or to death of persons not less than $500,000 as to any one person and not less than $1,000,000 as to any one accident. The grantee shall also carry such insurance as it deems necessary to protect it from all claims under any Workmen's Compensation laws in effect that may be applicable to the grantee. All insurance required by this agreement shall be and remain in full force and effect for the entire life of this agreement. Said policy or policies of insurance or a certified copy or copies thereof shall be approved by the town attorney and then deposited with and kept on file by the town clerk.
(Prior code § 9-3-10)
Upon the expiration of this franchise, if the grantee shall not have acquired an extension or renewal thereof and accepted the same, it may have and it is hereby granted the right to enter upon the public ways in said town for the purpose of removing therefrom any of its structures, appurtenances and equipment, amplifiers, transmission and distribution system and appliances, pipes, poles and wires appurtenant thereto, at any time within six months after the termination of this franchise. In so removing said transmission and distribution system and appliances pertaining thereto, the grantee shall, at its own expense, refill any excavations that may be made by it, and then leave such streets, alleys and other public ways in as good condition as that prevailing prior to the grantee's removing its equipment and appliances.
(Prior code § 9-3-11)
In the event the town shall at any time hereafter acquire by purchase or otherwise the properties of the grantee, it is agreed that in any negotiations or proceeding looking toward the acquisition of said property by said town, the value of this franchise shall be fixed at the agreed sum of $1.00.
(Prior code § 9-3-12)
The CATV system shall be installed and maintained in accordance with the highest and best accepted standards of the CATV industry, to the effect that subscribers shall receive the highest possible quality service.
(Prior code § 9-3-13)
Grantee shall proceed within 30 days after this franchise is granted hereunder to secure all pole line attachment agreements, licenses required by the Federal Communications Commission for the operation of microwave and other equipment which may be necessary for the receiving of television signals desired by grantee, and other pertinent permits as required and necessary for the installation; shall commence installation within 150 days of the date that all necessary pole line attachment agreements, licenses and permits are obtained; shall complete installation and operation within at least 30 percent of the town within 210 days of the date that all necessary pole line attachment agreements, licenses and permits are obtained; and shall complete installation and operation within all of the developed streets and areas within the incorporated town limits at the time of the awarding of this franchise, within two years of the date that all necessary pole line attachment agreements, licenses and permits are obtained. The council may extend the time for the beginning of the installation for an additional period or periods in the event that the grantee can demonstrate that delays are caused by reasons or circumstances beyond its control and cannot be overcome by the exercise of reasonable diligence on its part; provided, further, time limits not thus excused shall be deemed a material failure to perform under the terms of this contract, and said franchise may be forfeited on declaration thereof by the council.
(Prior code § 9-3-14)