NOTICE OF PUBLIC MEETING PHOENIX CITY COUNCIL ... · PDF file1 NOTICE OF PUBLIC MEETING...

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NOTICE OF PUBLIC MEETING PHOENIX CITY COUNCIL

TRANSPORTATION AND INFRASTRUCTURE SUBCOMMITTEE Pursuant to A.R.S. Section 38-431.02, notice is hereby given to the members of the PHOENIX CITY COUNCIL TRANSPORTATION AND INFRASTRUCTURE SUBCOMMITTEE and to the general public, that the PHOENIX CITY COUNCIL TRANSPORTATION AND INFRASTRUCTURE SUBCOMMITTEE will hold a meeting open to the public on Tuesday, May 12, 2015 at 9:00 a.m., located at Phoenix City Hall, 1st Floor Atrium, Assembly Rooms A, B, & C, 200 West Washington Street, Phoenix, Arizona. One or more Subcommittee members may participate via teleconference. The agenda for the meeting is as follows (items may be discussed in a different sequence than posted): 1. Call to Order Chair Williams 2 Review and Approval of the February 17th and February

25th, 2015 Transportation and Infrastructure Subcommittee Meeting Minutes.

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Item 3 is for information only. Although no presentation is planned, staff will be available to answer questions. 3. Metro, Regional Public Transportation Authority, and

Maricopa Association of Governments Meetings Provides copies of past and/or upcoming meeting agendas or minutes for METRO light rail, Valley Metro/Metro Rail, and the Maricopa Association of Governments. This item is for information only

Maria Hyatt, Public Transit Director Page 25

Items 4 and 5 are for Consent Action. Although no presentation is planned, staff will be available to answer questions. 4. Ellen MacArthur Foundation Membership

This report requests that the Transportation and Infrastructure (T&I) Subcommittee recommend City Council approval to apply for a Circular Economy 100 membership with the Ellen MacArthur Foundation for $50,000 annually for a three-year term. This item is for consent.

John A. Trujillo, Public Works Director Page 27

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5. Enter into an Agreement with ABM Facility Services, Inc. to Provide Transit Facilities Maintenance Services This report requests that the Transportation and Infrastructure (T&I) Subcommittee recommend City Council approval to enter into a five year contract with ABM Facility Services, Inc., Tempe, Arizona to provide transit facilities maintenance services at a cost not to exceed $11,000,000. This item is for consent.

Maria Hyatt, Public Transit Director 9

Items 6 - 7 are for information and discussion and possible action. 6. Amend Chapter 5 of the Phoenix City Code “Cable

Television Licenses” This report requests that the Transportation and Infrastructure Subcommittee recommend City Council approval of proposed amendments to Chapter 5 of the Phoenix City Code entitled “Cable Television Licenses.” This item is for information and discussion and possible action.

Debbie Cotton, Chief Information Officer Page 31

7. 2015 TIGER Grant Application This report requests that the Transportation and Infrastructure (T&I) Subcommittee recommend City Council approval to submit a federal Transportation Investment Generating Economic Recovery (TIGER) grant application for Phase II of the Grand Canalscape project. This item is for information, discussion and possible action.

Ray Dovalina, Street Transportation Director Page 75

Items 8 - 10 are for information and discussion. 8. West Phoenix/Central Glendale Transit Corridor Study and

Northeast Corridor Feasibility Study This report provides the Transportation and Infrastructure Subcommittee with an update on the West Phoenix/Central Glendale Transit Corridor Study and the Northeast Corridor Feasibility Study. This item is for information and discussion


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9. Accessible Parking Meter Spaces in Downtown This report provides the Transportation and Infrastructure Subcommittee with an update on accessible parking meters in downtown Phoenix as well as steps the City is taking to enhance accessibility for vehicles displaying a disability insignia or license plate. This item is for information and discussion

Ray Dovalina, Street Transportation Director Page 81

10. October 2015 Proposed Bus Service Changes – Public Outreach This report provides information to the Transportation and Infrastructure (T&I) Subcommittee on proposed bus service changes for October 2015 and the associated public outreach process. This item is for information and discussion


11. Call to the Public: Consideration, discussion, and concerns from the public. Those wishing to address the Subcommittee need not request permission in advance. Action taken as a result of the public comment will be limited to directing staff to study the matter or rescheduling the matter for further consideration and decision at a later date.

Chair Williams

12. Request for Future Agenda Items Chair Williams 13. Adjournment Chair Williams For further information, please call Tim Merritt, Management Assistant, City Manager’s Office, at 602-495-5676 or Gabriel Morales at 602-534-9222. 7-1-1 Friendly. Persons paid to lobby on behalf of persons or organizations other than themselves shall register with the City Clerk prior to lobbying or within five business days thereafter, and must register annually to continue lobbying. If you have any questions about registration or whether or not you must register, please contact the City Clerk’s Office at 602-262-6811. For reasonable accommodations, call Tim Merritt at 602-262-7684 or Gabriel Morales at 602-534-9222 as early as possible to coordinate needed arrangements. 7-1-1 Friendly. May 6, 2015

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Transportation and Infrastructure Subcommittee, May 12, 2015, Item #2

Phoenix City Council Transportation and Infrastructure Subcommittee

Summary Minutes Tuesday, February 17, 2015

City Council Subcommittee Room Phoenix City Hall, Assembly Rooms A, B, and C 200 West Washington Street Phoenix, Arizona Subcommittee Members Present Subcommittee Members Absent Councilwoman Thelda Williams, Chair None Councilman Bill Gates Councilwoman Kate Gallego Councilwoman Laura Pastor Staff Present Staff Present Public Present Public Present Rick Naimark Karen Peters Penny Parella Maria Hyatt Ray Dovalina Mario Paniagua Ken Kessler Kini Knudsen Megan Neal Albert Santana

Jesus Sapien Gabriel Morales Joe Bowar Nikki Hicks Matthew Heil Thomas Godbee William Nye Melissa Sweinhagen Ted Mariscal

Marty Schultz Maria Baier Andy Federhar Steve Banta Walt Gray Abraham James David Roderique Muriel Smith Robert Graham Howard Steere Shannon Dbaiy Phil Pangrazio David Martin Jack Tevlin Gary Flunoy Wulf Grote Tom Callow Diane E. Brown Tony Motola Dave Krieter

Donna Reiner Eric Reese Craig Tribken Roy Miller Michael Cornelious David Schwartz Will Bruder Alvin Livingston Claude Mattox Fank McCune Greg Kilroy Robert Branscomb Jack Pisano Terry Gruver Hillary Foose Lizz Woody Josh Chu Cylee Gutting Louise Roman Catrina Kohler Chelsea Collinge

1. Call to Order Councilwoman Williams called the meeting to order 1:08 p.m. with Councilman Gates and Councilwoman Pastor present.

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2. Citizens Committee on the Future of Phoenix Transportation Recommendation Councilwoman Williams called for the agenda item, asking about the possibility of reducing general fund transit support if the transit plan was approved by the voters, allowing the City Council to reallocate funding to hire additional police officers. Councilwoman Gallego joined the meeting at 1:09 p.m. Mr. Rick Naimark, Deputy City Manager, summarized the question, adding the funding probably could not be redirected through the ballot language but could through a separate action. Councilwoman Williams asked if the funding would be enough to hire two additional officers per 1000 residents. Mr. Naimark responded it would be enough for the City to hire approximately 100 to 125 new officers. Councilwoman Pastor asked if the Public Transit Department would become an enterprise fund. Mr. Naimark explained the Transit Fund was a special revenue fund and the City would likely want to have it remain as such to be able to accept general fund allocations in the future if needed. Councilwoman Williams commented the Citizens Committee appeared to have taken care of immediate and future needs of transit, rail and streets through their recommendations, adding she thought the streets portion was a little low. She added the plan would make Phoenix a world class city and it may solve several problems at once with very little cost.

Maria Hyatt, Public Transit Director, discussed public transit services prior to the passage of Transit 2000 and its impact on service after passage. She explained the various methods used to engage more people in the current planning process. She compared current and proposed service maps, noting the proposed plan included 125 new high capacity transit miles. Mr. Marty Schultz, Citizens Committee Co-Vice Chair, provided a brief summary of the Committee’s recommendations to replace the City’s current transit tax with a transportation tax which includes:

1) Recommending 0.75% tax, estimated to bring in $30.5 billion over 30 years; 2) Proposed sales tax increase permanent but not less than 30 years; 3) Formation of a combined transit and streets committee to oversee

expenditures and address future innovative financing and funding mechanisms; 4) Allow City Council flexibility to reduce the tax based on additional revenue

sources. Ms. Hyatt acknowledged Mr. Schultz, and introduced Committee Co-Vice Chair Maria Baier, Committee member Andy Federhar, and other members in the audience, noting Committee Chair Mary Peters was out of town. Ms. Hyatt explained that Committee members met over the course of 4 to 5 months and provided an overview of the impact the recommendations would make including three

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times as many light rail miles, a $40 billion return on the City’s light rail investment, 70% increase in bus frequency, 20% increase in span of service and a 20% in increase in ADA/Dial–A-Ride service. Mr. Ray Dovalina, Street Transportation Director discussed the impact the transportation plan would have on City streets. He explained it would double the funding available for street overlays and move new asphalt on arterials to a 30-year cycle. He added it would also increase bicycle lanes, new sidewalks, add new streetlights, and provide funding for new major road and bridge projects. Lastly, he stated the plan would also allow for technology improvements. Ms. Hyatt discussed the outreach conducted. She explained staff conducted ten open houses including question-and-answer sessions and collected surveys identifying community priorities. Ms. Hyatt addressed the existing high capacity transit lines approved in the current plan. She explained the process saying once lines were approved by Council, they get incorporated into the Maricopa Association of Governments Regional Transportation Plan. She used the South Central Corridor Alternative as an example which is currently in the process of being included. Councilwoman Pastor asked if that route would go to Baseline Road or all the way to the preserve. Ms. Hyatt responded the study would go south of Baseline Road and expand further east and west. Councilman Gates asked about the fare recovery rate used for the next 30 years. Ken Kessler, Deputy Public Transit Director responded it was 25% overall, noting that rail recovery is a little higher than fixed rate bus. Councilman Gates asked for a further breakdown. Mr. Kessler stated the recovery rate for rail was closer to 40%; however they conservatively used 25% assuming all lines would not recover at the same level. Ms. Hyatt commented on the impact of continuing the existing tax. She explained it would reduce by 15 miles the number of miles approved by Council in the transportation plan, delay current projects by 3 to 5 years, maintain but not expand existing bus service, not meet existing plan goals and provide no improvements for streets. Councilman Gates clarified it would pay for 21 miles of new light rail. Ms. Hyatt stated of the new 21 miles, 15 miles would not be possible. Ms. Hyatt discussed a sales tax comparison at different tax levels, based on what it costs to maintain services at today’s level. Ms. Hyatt also responded to questions on light rail compared to peer cities, noting that data was based on 2012, the most current year available. Councilman Gates asked what San Diego was doing to achieve a 56% recovery rate. Steve Banta, Valley Metro Rail, stated one has to look at each city differently, noting San Diego’s initial cost of infrastructure was very small, creating a lower cost per mile. He added the figure was based on overall operating cost plus the overall recovery. He also noted San Diego has a robust fare enforcement program.

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Councilman Gates asked about additional things Phoenix could consider. Mr. Banta stated the light rail ridership had significantly increased but additional resources for enforcement have not. Mr. Naimark commented the proposed plan included proportional growth in security infrastructure. Councilwoman Pastor asked about strategies for increasing the fare recovery rate now and in the future. She added she would like to see it at 60%. Mr. Banta discussed increasing the rate of enforcement inspections. Mr. Banta also discussed evaluating ticket sale locations, to increase the City’s ability to ensure riders are purchasing correct fare rates. Councilwoman Williams stated she agreed the City needed better control. Ms. Hyatt stated the proposed plan included enhanced technology which would allow for such options as refillable cards.

Councilwoman Gallego stated it is important to offer reduced fare rates for some riders. She added it needs to be done responsibly. Eric Reese stated he thought the proposed plan was well thought out and prudent. He stated a good plan would support economic development, community expansion and revitalization. Walt Gray stated he opposed making the tax increase permanent. He added he has not seen a lot of information on the topic, given the item will be on the August ballot. David Rodderick stated he thought the plan was well thought out, noting the infill downtown had been driven by increased transportation. He stated the City needs to focus on transportation infrastructure. Craig Tribken stated he was on the committee and strongly supported the proposed plan, Abraham James stated he supported the comprehensive plan. Shannon Dbaiy stated she wanted to support the plan but feels it needs more modalities, such as street cars or circulators. She noted many families rely on bus services and that should be considered in the plan. Muriel Smith stated she was in favor of the plan; however, she felt there was a need for more bus service in Laveen. Ms. Hyatt commented that the proposed plan included a downtown circulator. She added bus service in the plan had greater frequency, expanded hours, increased frequency on weekends, and better light rail and bus connectors. She explained it also included additional service on Southern Avenue. Robert Graham stated he believes the process of developing the plan was fantastic and discussed its compatibility with the General Plan update.

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Michael Cornelius noted the importance of supporting light rail to Metro Center. He said transportation is important to the community and it promotes business. He expressed his concern that public transit is privatized, suggesting Phoenix should operate the transit system and focus on the community’s needs. Roy Miller stated he is concerned with the optimistic revenue projections, believes the street enhancements are not generous enough, suggested the cost of the plan is too high given there are greater community needs, questioned vetting other options other than a tax increase, and commented the process was too structured and not open enough. Donna Renner submitted a card in favor of the proposed plan. Ernest Workman submitted a card in favor of the proposed plan. David Schwartz thanked the City and the Committee for their work to support transit. He stated the value of transit was the ability to save a family money by using transit and the jobs created through transit expansion. Claude Mattox commented he thought the process had extensive input. He stated the plan offered a vision and suggested it be on the ballot in August for the public to decide. Will Bruder stated he supported adding street cars, noting they were less expensive than additional rail lines. Alvin Livingston commented Phoenix has potential with transportation to really support the community. Robert Branscomb stated he was in favor of the plan, noting its economic impact and opportunity for increased jobs. Councilwoman Pastor asked what projects in T2000 had not been completed. Ms. Hyatt listed the projects and services not completed. Mr. Naimark commented the Citizens Committee discussed the T2000 projects and whether to continue those commitments. He added the City had grown and changed since its passage. Councilwoman Pastor asked about the availability of adjustments in the future. She asked if all T2000 projects were in the new plan. Mr. Naimark stated all proposed rail projects were included, adding that the ASU West connection, West Camelback extension and downtown circulator were also included. Councilwoman Pastor asked why all projects in T2000 were not completed. Ms. Hyatt responded revenues were impacted by recessions. Councilwoman Pastor asked if potential recessions were included in the calculations for projections in the new plan. Mr. Kessler responded the comprehensive plan contained a contingency reserve. Councilwoman Gallego stated she was excited about the customer technology upgrades including WiFi.

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Councilman Gates asked about extending the light rail to ASU West and Grand Canyon University. Ms. Hyatt responded they have been talking to ASU for a year about their needs and the opportunity to be their transportation option. She added they will also work with GCU. Councilman Gates asked for clarification on extension completion dates. Mr. Naimark stated the South Central extension, NE extension and the extension to Metro Center were proposed for completion in 2034. Councilman Gates asked what the change to cost estimates would be if the NE Extension was reduced to eight miles and Phase 2 of the Camelback West project was removed. Mr. Naimark stated those two changes, without changing anything else, would require a .72 percent sales tax. Ms. Hyatt stated there had been talks with Glendale, noting they were considering an option of going north on 43rd Avenue. Councilwoman Williams stated Glendale was still in the analysis phase. Ms. Hyatt stated the Camelback Corridor was not finalized and that there was still time to get recommendations approved through both City Councils. Councilwoman Gallego stated there maybe regional opportunities to move forward. Councilman Gates asked for project levels at a .60 percent tax level. Mr. Kessler discussed the decreased bus improvements and decreased street enhancements. Councilman Gates suggested if rail projects were removed if it would free up funding for streets, noting street improvements were important to people. Councilman Gates stated there were a lot of ways the pieces of the plan could be put together. He motioned to recommend a ballot proposal of three tax options: .40 percent, .60 percent and .72 percent. Councilwoman Pastor seconded the motion. Councilwoman Gallego commented the three alternatives may confuse some voters. Councilwoman Williams stated she agreed, adding she strongly supported one recommendation. Motion failed 3:1 with Councilwomen Williams, Pastor and Gallego opposing. Councilwoman Williams questioned growth estimates used. Mr. Kessler responded they used a conservative estimate. Mr. Fedehar discussed previous tax financed projects, adding the impact on economic growth patterns. He added the future is unclear, which is why the proposed plan included flexibility. Councilwoman Williams stated she believed the plan was a great value for Phoenix and the community. Mr. Schultz noted the Committee had used models to determine the plan with cost estimates. He added it included a good return on investment. He pointed out they

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created a package which included connectivity and with enhancements to streets and transit. Councilwoman Gallego motioned to accept recommendations 1 through 3 with modifications: excluding Camelback West Phase 2 and reducing the NE Extension by one third, starting the tax January 1, 2016 and ending it December 31, 2050. In the motion she also directed staff to work with the Citizen’s Oversight Committee to identify street capital projects proposed but not funded and to research, if the tax was adopted, reallocating $16 million of transit General Fund money to public safety. Councilwoman Pastor seconded the motion. Motion passed 3:1 with Councilman Gates opposing. 3. Public Transit Department Capital Improvement Program Mr. Naimark stated the item provided a high level overview. Mr. Kessler stated the item was a preview of the department’s 5-year Capital Improvement Program focusing on new construction, acquisition of fleet and renovation of existing facilities. Ms. Hyatt added the department does a 5-year rolling budget estimate and is able to make adjustments if needed. Mr. Kessler explained the public involvement process, noting it occurred during the service changes process and through the Citizens Transit Commission, which reviews procurement, service changes and the annual budget. He added there is also involvement through the Maricopa Association of Governments Transportation Improvement Plan process. Mr. Kessler discussed the aging infrastructure, noting some facilities were more than 30 years old and that a large percentage of the fleet is beyond its expected lifespan. He stated the program also addressed development demands, including growth areas, future light rail extensions and a Central Station redevelopment. Mr. Jesus Sapien, Deputy Public Transit Director, discussed current design projects, including the Desert Sky Transit Center, Bus Stop Shade Study, and the South Transit Facility refurbishment. He added they were also in the process of replacing vehicles, converting the fleet to CNG. He also discussed ongoing construction projects including the NW Light Rail Extension and the East Baseline Park-and-Ride. Mr. Sapien noted they were also changing lighting to LED and working on communication system upgrades. Mr. Kessler concluded, stating the department’s budget had decreased over the last ten years as the light rail opened and federal funds had decreased. He also noted the CIP program was lower than it has historically been. Mr. Walt Gray commented on the importance of increasing economic development and the importance of transportation. He stated he would like to see an increase in blue collar jobs available, especially in west Phoenix. Councilwoman Pastor left the meeting at 3 p.m.

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4. Street Transportation Department 5-Year Capital Improvement Project Update Mr. Ray Dovalina, Street Transportation Director, stated the department’s CIP historically focused on major streets and major drainage. He stated the needs of the community are changing and now the department is focusing on five major components and how the program ties to economic development and the overall scope of transportation. Mr. Dovalina explained the proposed program was $417 million over five years with multiple funding sources, the largest being Arizona Highway User Fund (AHUR). He stated the major maintenance components included pavement overlays, different seals and street sweeping. Mr. Dovalina talked about major transportation projects regionally, including Chandler Boulevard, the extension project with the Arizona Department of Transportation, and Phase 1 and 2 of the Rio Salado with Maricopa Association of Governments. He also discussed the pedestrian and bicycle mobility component. He noted projects included the Rio Salado Pathway and GRID Bikeshare, adding these were just a couple of the highlights. Mr. Dovalina stated traffic signal upgrades and the LED conversion project are in the technology enhancement area. He stated the conversion project is major as they are converting 90,000 lights across the city. He noted the Street Transportation Department was working with other departments and other governmental entities to purchase infrastructure materials to benefit from economies of scale. Mr. Dovalina discussed challenges addressing stormwater, the final component of the CIP. He stated it addresses local drainage solutions, including levee maintenance, dam maintenance and floodplain management. He discussed working with flood control to leverage funding resources. Mr. Naimark noted the stormwater issues in Laveen, adding the 27th Avenue Basin at South Mountain project was shown in FY 15-16. He stated they were prepared to address these issues, however there had also been some discussion about addressing it with the South Mountain Freeway project, which might more fully address the issue. Mr. Dovalina discussed future challenges, including declining AHUR revenue, decreased capital construction funding and the need for street and stormwater bonds. He stated the Transportation Tax would allow for increased street improvements. Mr. Dovalina discussed the reauthorization of Federal Transportation Authority funding, noting it was temporarily continued to May 2015. 5. Call to the Public: Mr. Walt Gray stated he had not heard of the idea to use general fund transit savings for police officers. He cautioned against it, stating he did not believe the Police Department was operating efficiently or that additional officers necessarily reduce crime. He suggested the funding be used for afterschool programs and community centers. 6. Request for Future Agenda Items None

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7. Adjournment Councilwoman Williams adjourned the meeting at 3:26 p.m. Respectfully submitted, Gabriel Morales

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Phoenix City Council Transportation and Infrastructure Subcommittee

Summary Minutes Wednesday, February 25, 2015

City Council Subcommittee Room Phoenix City Hall, Assembly Rooms A, B, and C 200 West Washington Street Phoenix, Arizona Subcommittee Members Present Subcommittee Members Absent Councilwoman Thelda Williams, Chair None Councilman Bill Gates Councilwoman Kate Gallego Councilwoman Laura Pastor Staff Present Staff Present Public Present Rita Marko Gabriel Morales Lisa Takata Penny Parella Tracee Crockett Kevin Rose Eduardo Rodriguez Jessica Yates Jesus Sapien Joe Bowar Herb Munoz Elizabeth Forte Richard Adkins Thomas Godbee

Kim Gathers Jorie Bresnahan Kathryn Sorenson Joe Giudice Brandy Kelso Raghu Nandan Cindy Stotler Ray Dovalina Stephanie Bracken Bernard Venegas Mary Ling Kevin Teng Darice Ellis

Claude Mattox Carlos Sanchez Soria

1. Call to Order Chairwoman Williams called the meeting to order at 1:11 p.m. with Councilwoman Gallego and Councilwoman Pastor present.

2. Street Landscape Maintenance Chairwoman Williams introduced Street Transportation Department Director Ray Dovalina and Parks and Recreation Department Director Jim Burke. Mr. Burke stated this item had arisen as part of the CORE review process. Mr. Burke stated the Street Transportation Department and Parks and Recreation Department split the responsibilities for landscaping throughout the City, noting that the Street Transportation Department is responsible for design and improvement, while the Parks and Recreation Department is responsible for maintenance.

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Mr. Burke noted the Parks and Recreation Department maintains approximately 755 miles of street landscaping, which is a challenge with current staffing levels. Mr. Burke noted, as a result, landscape maintenance is reactive and complaint-based. Mr. Dovalina stated the Street Transportation Department is also responsible for maintenance of landscaping along freeways within the City, adding contractors perform this work. He noted the department is also responsible for maintaining landscaping in other areas of the City, such as traffic circles and retention basins. Mr. Dovalina provided several examples, describing standard and nonstandard maintenance. He added the Parks and Recreation Department has contracts for street landscaping along the light rail corridor, as well as partnerships with commercial residents and homeowners associations. Mr. Dovalina provided several options to address the challenges associated with street landscaping maintenance. He noted $1.2 million is currently dedicated to fund 21 full-time positions in the Parks and Recreation Department who provide street landscaping maintenance. He stated staff is proposing the reallocation of these funds to the Street Transportation Department to establish a contract for landscaping maintenance. He added six positions would be created to manage this contract. Mr. Burke stated the Parks and Recreation Department’s staff currently performing street landscaping maintenance would shift into vacant positions throughout the department. Chairwoman Williams asked if the $1.2 million is in included in the Trial Budget. Mr. Burke stated the$1.2 million is in the Trial Budget. Councilwoman Pastor asked how much of the $1.2 million is dedicated to personnel costs. Mr. Burke stated the entire amount is dedicated to personnel.

Councilwoman Gallego asked if staff that specializes in tree maintenance will be kept in the Parks and Recreation Department. Mr. Burke stated the Parks Forestry Specialist would remain in the department. Councilwoman Gallego asked staff to explain the impact of designing streets with less intense landscaping to reduce maintenance costs. Mr. Dovalina stated staff is working with various departments to establish standards to align with the tree and shade initiative as well as other City ordinances. Councilwoman Gallego stated she is encouraged that the recommendation would make street landscaping maintenance more proactive and less complaint-based. Chairwoman Williams stated she believes having street landscaping in one department provides greater efficiency. She noted that if additional revenue is identified in the future, she would like staff to reevaluate providing increased levels of maintenance for street landscaping.

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Councilwoman Gallego moved to accept staff’s recommendation, adding she would like to meet with the City Manager’s Office to discuss providing additional options to increase landscape maintenance to residents as part of the budget hearing process. Councilwoman Pastor seconded the motion. Councilwoman Pastor asked about funding for the six employees, overseeing the contract. Mr. Dovalina stated those positions would be funded by a portion of the $1.2 million. Councilwoman Gallego asked for clarification on the salaries that would be paid for the six employees. Mr. Dovalina stated staff is working on the salary estimates for those positions. Councilwoman Gallego stated she would like horticulture training provided for staff who are managing the street landscaping maintenance contract. The motion passed 3-0.

4. Street Transportation Department Procedure for Calculating Yellow Change

Intervals at Traffic Signals Item taken out of order. Street Transportation Director Ray Dovalina introduced Deputy Street Transportation Director Tom Godbee. Mr. Godbee provided an overview of how the Street Transportation Department calculates yellow light intervals. He added the calculation for street light intervals is based on a standard equation established by the Institute of Transportation Engineers. Mr. Godbee provided a simulation depicting how a car reacts to the light changing at an intersection. Chairwoman Williams asked if every intersection in the City is analyzed for timing. Mr. Godbee stated every intersection is analyzed. Chairwoman Williams asked if varying speeds are taken into consideration when street light calculations are performed. Mr. Godbee stated the posted speed limit is used when performing calculations. Councilwoman Pastor asked if five miles above the posted speed limit should be used for calculation purpose, as drivers tend to travel slightly faster than the speed limit. Mr. Godbee stated this variance is built into the calculation. Chairwoman Williams asked if the number of accidents at an intersection is used to determine if all four signal lights need to be simultaneously red. Mr. Godbee stated this information is included in the calculation. He noted the majority of intersections in Phoenix are configured to have all-red traffic lights. He added staff analyzes intersections where red-light running crashes are prevalent, noting adjustments are then made to the signal timing.

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Chairwoman Williams asked if the department performs a year-to-year comparison to determine if changes in signal timing made a positive impact on the intersection. Mr. Godbee stated the department can perform this analysis where there are red light cameras. Councilwoman Gallego asked if every intersection has a period where all lights are red. Mr. Godbee stated the majority of the intersections have a cycle where all traffic lights are red, especially at major intersections. Councilwoman Gallego asked if the all red signals are on for an extended period of time at larger intersections. Mr. Godbee stated the all red signal light timing is based on intersection width. Councilwoman Pastor asked a question on behalf of Councilman Gates. She asked if it would be possible to pilot an intersection with a longer yellow light interval. Mr. Dovalina stated staff can evaluate a pilot; however, yellow light intervals are based on industry standards, and changing these intervals may increase liability for the City of Phoenix. Chairwoman Williams asked Mr. Dovalina to meet with Councilman Gates to provide him with additional information on yellow light intervals. Councilwoman Pastor asked for clarification on the functionality of walk signs at each intersection. Mr. Godbee described how walk signs are activated. Councilwoman Williams thanked staff for providing the report.

5. City of Phoenix Bus Stop Shade Study Analysis Chairwoman Williams introduced Deputy Public Transit Department Director Jesus Sapien. Mr. Sapien introduced Environmental Specialist Joe Bowar and Project Manager Herb Munoz. Mr. Sapien stated the Public Transit Department analyzed bus stops with frequent resident complaints. He noted many of the unshaded stops with proper right-of -way will eventually be shaded; however, there are many unshaded stops that do not have proper right-way or sufficient infrastructure to build a shelter. Mr. Sapien stated staff in the department is evaluating ridership and frequency statistics to prioritize which bus stops will receive shade structures. Councilwoman Williams asked if there is a standard spacing for bus stops. Mr. Munoz stated bus stops are approximately every quarter mile, and in more dense areas, they might be every eighth of a mile. Mr. Sapien stated more than three quarters of the bus stops are shaded, providing shade to more than 90 percent of the ridership. He added the majority of shaded bus stops are located near routes that service high schools and provide a link to light rail.

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Mr. Sapien stated the department plans to shade approximately 30 bus stops per year. He added the department will work with the Street Transportation Department to identify projects where bus stops can be shaded while streets projects are occurring. Councilwoman Gallego asked if the bus stop shade study could analyze ridership patterns to assess if riders are being dropped off at shaded bus stops because there is no shaded stop nearer to them. Mr. Sapien stated staff is currently analyzing this particular scenario to include those bus stops in the prioritization process. Councilwoman Gallego asked if the Maricopa County Air Quality Survey is used for the prioritization process for shaded bus stops. Mr. Sapien stated the survey is included in the prioritization process. Councilwoman Gallego asked if it is possible to build a different type of shaded bus stop where right-of-way is not available. Mr. Sapien stated the department is evaluating several options for these particular stops. Councilwoman Gallego noted ASU offers sustainability grants to assist with these types of initiatives. Councilwoman Pastor asked if temporary shade could be installed at bus stops. Mr. Sapien stated any bus stop improvements would require connectivity to meet ADA requirements, adding temporary shades cannot be installed. Chairwoman Williams asked if a bus stop on 28th Avenue and Greenway Road could be moved to the other side of street, as there is more space and adequate infrastructure. Mr. Dovalina stated staff would evaluate the request. Councilwoman Pastor asked who services bus stops. Mr. Munoz stated a contractor services the bus stops throughout the City. Councilman Pastor asked staff to evaluate a bus stop on 7th Avenue and Indian School Road that needs shade. Mr. Munoz stated staff is in the process of replacing the shade structure at that bus stop. Councilman Gates joined the meeting by telephone at 2:00 p.m. Councilman Gates asked if the Public Transit Department had developed any public-private partnerships for bus stop shade structures. Mr. Sapien stated the department evaluated these partnerships; however, there was very little interest from the private sector. He added the department established advertising revenue contracts for buses and bus stops. Councilman Gates asked if staff could evaluate establishing sponsorships for bus stops. Mr. Sapien stated staff will evaluate this option.

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3. Stormwater Use

Item taken out of order. Planning and Development Director Alan Stephenson introduced Street Transportation Director Ray Dovalina, Deputy Water Services Director Brandy Kelso, and Acting Environmental Programs Officer Joe Giudice. Mr. Stephenson stated the Planning and Development Department manages on-site requirements for private development regarding stormwater. He added the Street Transportation Department is responsible for regional management, and the Water Services Department is responsible for water quality. Mr. Dovalina provided an overview of the responsibilities of the Street Transportation Department regarding stormwater, noting the department manages stormwater infrastructure throughout the City. He added the City works with the Maricopa County Flood Control District to manage stormwater. Ms. Kelso stated the Water Services Department is federally required to monitor stormwater quality. She stated the collection and storage of stormwater can be challenging due to increased treatment requirements, water rights and watershed requirements. Mr. Stephenson provided several examples of how stormwater can be captured and used on-site on private property, noting staff would need to perform further research to ensure that water rights are not impacted. Chairwoman Williams asked if there is a listing of homeowners associations (HOAs), outlining their responsibility to maintain retention basins in the neighborhoods. Mr. Stephenson stated the department keeps that information on record, adding older HOAs are being educated on their responsibilities. Councilman Gates thanked staff for their efforts to provide insight regarding the limitations of capturing stormwater. Ryan Wood stated he works for a nonprofit organization, Watershed Management Group, that teaches people to take advantage of rainwater and stormwater on their private property, noting he would be willing to work with the City to educate the community. Councilwoman Gallego asked if the Watershed Management Group could assist the community with rebuilding water retention basins. Mr. Wood stated his organization could assist. Councilwoman Gallego asked staff to explain the water ordering process. Ms. Kelso stated the Water Services Department orders water a day in advance, adding the department is always watching weather patterns and reservoir levels to determine water needs.

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Councilwoman Gallego asked about the relationship between the Water Services Department and Emergency Management Office. Ms. Kelso stated staff from the Water Services Department is part of the Emergency Management team, so there is constant communication between the groups.

6. Update on Infill Development/Utility Coordination

Planning and Development Director Alan Stephenson introduced Assistant Planning and Development Director Cindy Stotler and Deputy Water Services Department Director Brandy Kelso. Mr. Stephenson summarized infill development efforts throughout the City. Ms. Stotler added one of the goals of the Walkable Urban Code was to promote walkability and shade, noting staff has developed options for developers to meet this goal without impacting public utilities. Ms. Stotler summarized the shade requirement for the Walkable Urban Code, adding both sides of the sidewalk along the light rail corridor would need to be shaded to meet these requirements. She described the options created for developers to meet these shade requirements. Ms. Kelso summarized the process the Water Services Department followed to mitigate the impact of trees roots on water and sewer infrastructure in infill areas. She noted the department hired a consultant to assist with the effort. She added other cities were contacted to determine their tree separation standards from water infrastructure. Ms. Kelso provided the recommendations of the consultant to mitigate the impact of trees in the infill areas and align with shade standards in the Walkable Urban Code. She added water and sewer design standards have already been changed to meet the needs of infill development with regard to shade.

Chairwoman Williams asked if staff would bring additional information regarding shade standards to the Subcommittee. Mr. Stephenson stated staff would provide an update during a future Subcommittee meeting. Councilwoman Gallego asked if the Public Works Department’s shade initiative aligns with shade requirements of the Walkable Urban Code. Mr. Stephenson stated the Public Works Department’s shade initiative aligns with the code and other shade initiatives. Councilman Gates stated infill development could benefit the entire City, including the Sunnyslope area. Chairwoman Williams asked if staff was coordinating with the Street Transportation Department on the Complete Streets Initiative. Mr. Stephenson stated staff is collaborating with the Street Transportation Department.

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Councilwoman Gallego asked if the sewer lines on Van Buren Road are in the curb area. Ms. Kelso stated she believes they are. Councilwoman Gallego stated she is concerned that it would be prohibitively expensive to develop along Van Buren Road if the sewer lines are in the curb area. Ms. Stotler stated some of the options provided would allow for cost effective development along the curb, while limiting the impact to infrastructure. Councilwoman Gallego asked for an estimate of the root mitigation costs. Ms. Kelso stated the costs would vary according to the project. Mr. Stephenson stated staff would provide additional information regarding development on Van Buren Road. Councilwoman Pastor thanked staff for developing guidelines and standards for shade and trees along the light rail corridor. Chairwoman Williams asked for a briefing on the final version of the Walkable Urban code and design standards prior to implementation. Mr. Stephenson stated staff would provide a briefing.

7. Water Treatment Plant Infrastructure Renewal Program Assistant Water Services Department Director Troy Hayes introduced Deputy Water Services Department Director Amy Conroy, adding staff would discuss the infrastructure renewal program for water treatment plants. Mr. Hayes provided a summary of the Water Treatment Plant Infrastructure Renewal Program, adding its intent is to rehabilitate the infrastructure for the four City-owned water treatment plants. Ms. Conroy summarized the renewal process, noting there are two different levels of renewal. She provided the budget for the 10-year program, noting the program would begin in FY 15-16. She added one of the goals of the program is to prioritize maintenance and replacement of assets, noting there are approximately 20,000 assets for all the plants. Ms. Conroy provided examples of renewal projects at the water treatment plants. Councilwoman Gallego asked for the onsite water storage available at the water treatment plants. Mr. Hayes stated there is approximately 700 million gallons of water storage throughout the system.

Councilman Gates asked for clarification on the operations of the Lake Pleasant Water Treatment Plant, noting it is operated by a private contractor. Mr. Hayes provided information regarding the operations of the plant, noting the current agreement would expire in 2022. Councilman Gates asked staff to provide additional information regarding outsourcing of operations and maintenance for the other water treatment plants. Mr. Hayes stated he would provide this information.

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8. Call to the Public: None. 9. Request for Future Agenda Items None. 10. Adjournment Councilwoman Williams adjourned the meeting at 3:08 p.m.

Respectfully submitted, Gabriel Morales Management Intern

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CITY COUNCIL REPORT

TO: Rick Naimark Deputy City Manager

FROM: Albert Santana Light Rail Project Administrator

SUBJECT: METRO, REGIONAL PUBLIC TRANSPORTATION AUTHORITY, AND MARICOPA ASSOCIATION OF GOVERNMENTS MEETINGS

This report provides the Transportation and Infrastructure Subcommittee with copies of past and/or upcoming meeting agendas/summaries for METRO light rail, Valley Metro/Regional Public Transportation Authority (RPTA), and the Maricopa Association of Governments (MAG). This item is for information only. THE ISSUE Within Maricopa County, there are several agencies with different charges relating to public transit and transportation planning. Valley Metro/RPTA: In 1993, the Regional Public Transportation Authority Board adopted the name Valley Metro as the identity for the regional transit system in metropolitan Phoenix. Under the “Valley Metro” brand, local governments fund the Valley-wide transit system which the public sees on the streets today. Valley Metro Board member agencies include Avondale, Buckeye, Chandler, El Mirage, Gilbert, Glendale, Goodyear, Maricopa County, Mesa, Peoria, Phoenix, Queen Creek, Scottsdale, Surprise, and Tempe. Councilwoman Thelda Williams serves as Phoenix’s representative on the RPTA Board of Directors. METRO: METRO is the brand name for Valley Metro Rail Inc., a nonprofit, public corporation charged with the design, construction, and operation of the Valley’s light rail system. The cities that participate financially in the light rail system each have a representative on the METRO Board of Directors. Cities on the board include Chandler, Glendale, Mesa, Phoenix, and Tempe. METRO is structured on a “pay-to-play basis” with voting power allocated based on investment in the system. Councilwoman Thelda Williams serves as Phoenix’s representative and is the current chair of the METRO Board of Directors. The Maricopa Association of Governments (MAG): MAG is a Council of Governments that serves as the regional agency for the metropolitan Phoenix area. When MAG was formed in 1967, elected officials recognized the need for long-range planning and policy development on a regional scale. Issues such as transportation, air quality, and human services affect residents beyond the borders of individual jurisdictions. MAG is the designated metropolitan planning organization (MPO) for transportation planning in the Maricopa County region. Mayor Stanton serves as Phoenix’s representative.

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OTHER INFORMATION The goal of staff is to provide the Transportation and Infrastructure Subcommittee with agendas for future meetings of these bodies. Meeting dates do not coincide and agendas are not available until close to the meeting date. However, prior to reaching each Board of Directors meeting, most agenda items are reviewed by staff committees which include City of Phoenix members. An attachment to the Subcommittee packet will provide meeting agendas and/or additional information for previous and upcoming METRO, RPTA and MAG meetings. RECOMMENDATION This item is for information only. Attachments

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CITY COUNCIL REPORT


FROM: John A Trujillo Public Works Director

SUBJECT: ELLEN MACARTHUR FOUNDATION MEMBERSHIP

This report requests that the Transportation and Infrastructure (T&I) Subcommittee recommend City Council approval to apply for a Circular Economy 100 membership with the Ellen MacArthur Foundation for $50,000 annually for a three-year term. THE ISSUE The City of Phoenix has been invited to become a Circular Economy 100 member at an annual cost of $50,000 for three years. The Closed Loop Fund has expressed an interest in offering zero percent loans to provide capital for the recently-established Resource Innovation Campus at 27th Avenue and Lower Buckeye Road and low interest loans for business partners pursuing land leases at the campus. Membership in the Circular Economy 100 includes national and international exposure to companies and investors such as the Closed Loop Fund. Funding for the annual membership costs over three years is available in the Solid Waste Division’s Operating Budget. OTHER INFORMATION On March 24, 2015, the T&I Subcommittee received an update on the Resource Innovation Campus and related projects including the City’s Resource Innovation and Solutions Network partnership with Arizona State University, Reimagine Phoenix Call for Innovators, Transforming Trash into Resources Request for Proposals, and innovative funding opportunities. The innovative funding opportunities discussed included zero interest loans from the Closed Loop Fund, a Circular Economy 100 member of the Ellen MacArthur Foundation. The Closed Loop Fund offers zero interest loans for municipalities and companies to build the necessary infrastructure to implement emerging technologies in the recycling industry and to process recycling and organics. Typical loan sizes range from $250,000 to $5,000,000. The Ellen MacArthur Foundation is at the forefront of promoting and implementing the circular economy with regions and corporations across the world. The Foundation’s Circular Economy 100 membership is an innovation platform for 100 corporations, emerging innovators and regions that represent the global economy, including circular economy pioneers in key industry sectors with a wide geographic spread.

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RECOMMENDATION Staff requests that the T&I Subcommittee recommend City Council approval to apply for a Circular Economy 100 membership with the Ellen MacArthur Foundation for $50,000 annually for a three-year term.

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CITY COUNCIL REPORT


FROM: Maria Hyatt Public Transit Director

SUBJECT:

ENTER INTO AN AGREEMENT WITH ABM FACILITY SERVICES, INC. TO PROVIDE TRANSIT FACILITIES MAINTENANCE SERVICES

This report requests that the Transportation and Infrastructure (T&I) Subcommittee recommend City Council approval to enter into a five year contract with ABM Facility Services, Inc., Tempe, Arizona to provide transit facilities maintenance services at a cost not to exceed $11,000,000. THE ISSUE Three proposals were received by the Public Transit Department (PTD) on February 12, 2015 to provide transit facilities maintenance services beginning August 9, 2015 and ending June 30, 2020. Proposals were received from the following proposers: ABM Facility Services, Inc., DMS Facility Services, LLC, and Simpson Walker Contracting Corporation. OTHER INFORMATION An evaluation committee consisting of qualified staff from the City of Phoenix Public Transit Department and Phoenix Convention Center evaluated the proposals based on the proposer’s qualifications, experience and past performance (20 percent), qualifications of management and staff (15 percent), the proposer’s understanding of the scope of work and transition plan (15 percent), and price proposal (50 percent). The proposal from Simpson Walker Contracting Corporation failed to comply with RFP requirements. As a result, they were disqualified and given notice that they would not be considered further. After considering the two remaining proposals, the evaluation committee determined that additional information was required from the proposers prior to completing the technical evaluation. The evaluation committee developed questions and requests for clarification specific to each firm’s proposal. Answers to committee questions were considered by the evaluation committee and the final scoring for each proposer is shown below.

Proposer Score (1000 max)

Total 5-Year Cost Proposal

ABM Facility Services, Inc. Tempe, AZ

903.1 $8,677,987

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DMS Facility Services, LLC Phoenix, AZ

796.3 $7,494,834

While DMS submitted a lower initial cost proposal, they have since noted an error in their pricing and have requested a price adjustment. The evaluation committee scored DMS’S technical proposal significantly lower in all three of the areas evaluated. Public Transit staff concurs with the evaluation committee’s recommendation to award the contract to ABM Facility Services, Inc. ABM submitted the best overall proposal based on the evaluation criteria, staffing model, and understands the work scope. ABM has also performed under its current agreement with the City. The first year expenditures will not exceed $2,000,000. This includes the monthly facilities maintenance fee and estimated additional services at a fixed hourly rate. Total contract expenditures for the contract period August 9, 2015 to June 30, 2020 will not exceed $11,000,000. OTHER INFORMATION The Contractor will provide complete facilities maintenance services for three transit operating facilities (North, South and West), six transit center locations, and eight park-and-ride locations. The Contractor will also manage and maintain the facilities, buildings, attachments and all designated equipment, and provide for all necessary preventative maintenance services and repairs, and emergency services. As directed and authorized by City staff, the Contractor may perform additional services as needed for emergency repairs or repairs not covered by preventive maintenance, at an additional hourly rate as outlined in the agreement. The PTD receives significant funding from the Federal Transit Administration (FTA) to build, expand and improve its capital facilities. As such, the PTD is expected to maintain its federally funded assets according to guidance set by the FTA and ensure industry standards and PTD operational requirements are followed. PTD’s transit facilities operate 24 hours a day, seven days a week and are considered critical infrastructure facilities, which require the maximum risk background screening and badging for all contracted employees. RECOMMENDATION Staff requests the T&I Subcommittee recommend City Council approval to enter into a five-year contract with ABM Facility Services, Inc., Tempe, Arizona to provide transit facilities maintenance services at a cost not to exceed $11,000,000.

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Transportation and Infrastructure Subcommittee, May 12, 2015, Item # 6

CITY COUNCIL REPORT


THRU: Paul Blue

Deputy City Manager

FROM: Debbie Cotton Chief Information Officer

SUBJECT: AMEND CHAPTER 5 OF THE PHOENIX CITY CODE ENTITLED “CABLE TELEVISION LICENSES”

This report requests that the Transportation and Infrastructure Subcommittee recommend City Council approval of proposed amendments to Chapter 5 of the Phoenix City Code entitled “Cable Television Licenses.” BACKGROUND The Phoenix City Council enacted Chapter 5, Cable Television Licenses, of the Phoenix City Code on October 26, 1976, to create a standard framework for cable companies providing services in Phoenix. Major provisions of Chapter 5 include:

• Providers must be licensed to construct, maintain, and operate cable television systems within the City of Phoenix;

• Standards for use of streets and public rights-of-way; • Customer service and design/construction standards must be met, and

construction schedules may be required; • License fees up to 5 percent of gross cable television revenues to the City –

these license fees help offset the City’s cost of acquiring, maintaining, and repairing streets and public rights-of-way used in the operation of cable television systems, and other City costs under Chapter 5; and

• Requirements for the provision of government access and educational access channels.

Cable television providers are also subject to federal regulations and state laws. Two companies, Cox Communications and CenturyLink, are currently licensed by Phoenix to provide cable television services. THE ISSUE Chapter 5 was last amended in 2006 to revise some definitions, license fees language, and customer service standards. Existing language in Chapter 5 does not appropriately address the technical evolution of cable television delivery.

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Staff proposes new amendments (attached) to Chapter 5 to include: • Clarifying that Chapter 5 covers not only traditionally-delivered cable services,

but also covers the provision of similar video programming services, regardless of the technology used to deliver those services. The facilities-based (non-satellite, non-wireless) television industry, which utilizes infrastructure in the City of Phoenix’s and other jurisdictions’ rights-of-way, has changed dramatically since the mid-1970s. Video services and products are now provided to homes and businesses not only through traditional cable television delivery technology, but also through Internet-based technologies. Clarifying City Code would allow new entrants to use the City’s rights-of-way and provide video services to Phoenix residents and businesses.

• Changing the definition of gross revenues to reflect current law. • Emphasizing City Council’s authority to negotiate a license that maximizes the

benefits for the City and its residents. • Updating outdated language and eliminating jargon throughout the Chapter.

Based upon input from potential entrants into the Phoenix market, staff received input on the proposed amendments from the two licensed cable providers. Their input was incorporated into the final proposed amendments. RECOMMENDATION Staff requests the Transportation and Infrastructure Subcommittee recommend City Council approval of amendments to Chapter 5 of the Phoenix City Code entitled “Cable Television Licenses.”

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Attachment Chapter 5 CABLE TELEVISION LICENSES Article I. Administrative

5-1. Title.

5-2. Purpose.

Article II. Definitions

5-3. Definitions.

Article III. License Duration, Renewal and Transfer

5-4. License.

5-5. Use of streets and public ways.

5-6. Term.

5-7. License non-exclusive.

5-8. License nontransferable.

5-9—5-11. Reserved.

5-12. Expiration.

5-13. Renewal or extension.

5-14. Purchase of cable system.

5-15. Continuity of service mandatory.

5-16. Reserved.

5-17. Right of inspection of construction.

5-18. Right of intervention.

5-19. Indemnification.

5-20. License fees.

5-21. Abandonment; right to require removal of property.

5-22. Costs of publication of license.

5-23. Business succession and liability.

Article IV. System Operation and Maintenance

5-24. Inspection of records.

5-25. Communications with regulatory agencies.

5-26. Reports.

5-27. Customer service standards.

5-27.1. Construction notification.

5-28. Safety.

5-29. Liability insurance.

5-30. Faithful performance bond.

5-31. Security fund.

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Article V. Design and Construction Provisions

5-32. Standards for construction.

5-33. License area.

5-34. Cablecasting facilities.

5-35. Interconnection.

5-36. System construction schedule.

5-37. Provision of service.

5-38. Undergrounding of cable.

5-39. Special additional underground service permit.

5-40. Construction standards and codes.

5-41. Preconstruction tests.

5-42. Technical and performance standards.

5-43. Use of cable system during an emergency.

5-44. Damage to cable system during an emergency.

5-45. Restoration of streets.

5-46. Use of streets and public ways.

5-47. Trimming of trees.

5-48. Vacated street.

5-49. Temporary removal of cable to move large objects.

Article VI. System Services

5-49.1. Institutional service (IS).

5-50. Local origination channel.

5-51. Government access channel.

5-52. Educational access channel.

5-53. Public access channel.

5-534—5-59. Reserved.

Article VII. License Administration and Enforcement

5-60. Intent.

5-61. Revocation of license.

5-62. Remedies for delay in construction and liquidated damages.

5-63. City Manager’s responsibility.

5-64. License administration and enforcement.

5-64.1. License fee amount protests—Administrative hearing.

5-65. Hearing by City Council.

5-66. Changes in cable technology.

5-67—5-69. Reserved.

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Article VIII. Rights of Individuals Protected

5-70. Discriminatory practices prohibited.

5-71. Permission of property owner required.

5-72. Subliminal transmission prohibited.

5-723—5-77. Reserved.

Article IX. Violations

5-78. Theft of service.

5-79. Tampering with system.

5-80. Existing systems.

5-81. Reserved.

Article X. Interpretation of Ordinance

5-82. Compliance with laws.

5-83. Captions.

5-84. No recourse against the licensorCity.

5-85. Non-enforcement by the licensorCity.

5-86. Rights reserved to the City.

5-87, 5-88. Reserved.

Article XI. The License DocumentLicense

5-89. The license documentlicense—Issuance and acceptances.

Article XII. Application Process

5-90. Purpose of this article.

5-91. Application for initial license.

5-92. Application fees for initial license.

5-93. Selection of licensee under an initial license.

5-94. Consideration of applicants.

5-95. Award of license based on public record.

5-96—5-99. Reserved. Article XIII. Relationships Among Licensees 5-100. Arbitration or mediation of disputes.

ARTICLE I. ADMINISTRATIVE

5-1 Title.

This chapter will be known and may be cited as the "Cable Television Licenses Ordinance."

5-2 Purpose.

The purpose of this chapter is to:

(a) Provide for the regulation and control of the cable television systems by the City of Phoenix in the public interest.

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(b) To require Provide the terms and conditions that the provisions of this chapter shall be applicable toof allcable television licenses granted by the City of Phoenix.

(c) PTo provide a procedure for the granting of nonexclusive licenses for providing cable and video services in the City of Phoenix.

(d) RTo regulate the erection, construction, reconstruction, installation, operation, maintenance, dismantling, testing, repair and use of cable systems in, upon, along, across, above, over or under or in any manner connected with the streets and public right of ways within the jurisdiction of the City of Phoenix as now or in the future may exist.

(e) PTo provide for the payment of certain license fees and other valuable considerations to the City which, among other purposes, may be used to pay for the use of the streets and public ways and to regulate the construction, reconstruction and operation, use and development of cable systems within the City; and

(f) PTo provide conditions under which such licensed cable systems will serve present and future needs of government, public institutions, commercial enterprises, public and private organizations, and the citizens and general public of the City; and

(g) To pProvide remedies and prescribe penalties and liquidated damages for any violation of this chapter and the terms and conditions of licenses granted pursuant thereto.

ARTICLE II. DEFINITIONS

5-3 Definitions.

For the purposes of this chapter, the following words, terms, phrases, and their derivations shall have the meanings given hereinbelow. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. Words not defined in this chapter shall will have the meanings given them by the Cable Act and by the Federal Communications Commission.

Basic cable service means any service tier which that includes the retransmission of local television broadcast signals.

Basic service tier means a separately available tier to which subscription is required for access to any other tier of service,. and will, Such basic service tier shall at a minimum, consist of the following:

(a) All signals carried in fulfillment of the requirements ofas required by sections 614 and 615 of the Cable Act.

(b) Any public, educational, and governmental access programming required by the City to be provided to subscribers.

(c) Any signal of any television broadcast station that is provided by the licensee to any subscriber, except a signal which that is secondarily transmitted by a satellite carrier beyond the local service area of such station.

Cable Act means the Cable Communications Policy Act of 1984, as amended by the Cable Television Consumer Protection and Competition Act of 1992, as they same may be amended from time to time.

Cable service means:

the transmission to subscribers of video programming or other programming service and subscriber interaction, if any, that is required for the selection or use of the video programming or other programming service. (a) The one-way transmission to subscribers: (1) of video programming, or (2) other programming services; and

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(b) Subscriber interaction, if any, which is required for the selection of such video programming or other programming services.Cable service may also include services that, in the sole discretion of the City Council, provide similar video programming services without regard to the delivery technology.

Cable system (sometimes referred to as "cable television system") means a facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable services which that includes video programming and which that is provided to multiple subscribers within the City, but such term does not include (a) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (b) a facility that serves only subscribers in one or more multiple-unit dwellings under common ownership, control, or management, unless such the facility or facilities uses any public right-of-way; (c) a facility of a common carrier that is subject, in whole or in part, to 47 United States Code sections 201 through 276, except that the facility is considered a cable television system, other than for purposes of 47 United States Code section 541(c), to the extent the facility is used in the transmission of video programming directly to subscribers, unless the extent of the use is solely to provide interactive on-demand servicesa facility of a common carrier which is subject, in whole or in part, to the provisions of title II of the Communications Act of 1934, except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers; or (d) any facility of an electric utility used solely for operating its electric utility systems. A reference to a licensee’s cable system refers to all or part of the cable system as a whole or any part thereof.

City means the City of Phoenix, a municipal corporation of the State of Arizona, and all of the territory within its present and future corporate boundaries.

City Council means the Council of the City of Phoenix.

City Manager means the City Manager of the City of Phoenix or the City Manager’s designee.

Educational channel or educational access channel means channel capacity or any portion of the capacity of any channel designated for educational use.

Existing cable television system means a cable television system in operation on April 1, 1974, a cable television system under construction on April 1, 1974, or a cable television system which had received authorization for construction on April 1, 1974.

FCC means the Federal Communications Commission, or a designated representative.

Fiscal year means any consecutive twelve-month period as set forth in the license.

Government channel or government access channel means channel capacity or any portion of the capacity of any channel designated for governmental use.

Gross revenues means “Gross revenues” as defined in A.R.S. 9-505, except as may be modified in the license. , except as may be approved by City Council and set forth in the cable license means all cash, credits, property of any kind or nature, or other consideration, less related bad debts up to a maximum of one and one-half percent annually of such cash, credits and property, received directly or indirectly by a licensee, its affiliates, subsidiaries, parent and person, firm or corporation in which a licensee has a financial interest or which has a financial interest in a licensee, which are derived from the licensee’s operation of its cable system within the City, including, but not limited to all revenue from:

(a) All charges for services provided to subscribers;

(b) All charges for the insertion by the licensee of commercial advertising upon the cable system;

(c) All charges for the use or lease of studio facilities of the cable system;

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(d) All charges for the use or lease of leased access channels or bandwidth;

(e) The production for transmission over the cable system of video programming by licensee including programming produced by its mobile facilities;

(f) All charges for the installation, removal, connection and reinstatement of equipment necessary for a subscriber to receive cable services;

(g) The sale, exchange, use or cablecast of any programming by licensee within the service area;

(h) And any other income derived from the cable system including, but not limited to, forfeited deposits recovered, rental of remote equipment and convertors, late charges, interest income, sale of program guides and all other receipts from subscribers.

"Gross revenues" shall not include taxes collected by licensee on behalf of any governmental authority; any increase in the value of any stock, security or asset; or any dividends or other distributions made in respect of any stock or securities.

"Gross revenues" shall not include cash, credit, property of any kind or nature, or other consideration received by a licensee’s affiliates, subsidiaries, parent, or any person, firm or corporation in which a license has a financial interest or which has financial interest in a licensee for any sales of advertising on the cable system, services to provide programming on the cable system, production services, and/or telecommunication services which are cable services when such services are provided by an affiliate, subsidiary, parent, or such other person, firm or corporation which has all the following characteristics: the affiliate, subsidiary, parent or such other person, firm or corporation is a separate legal entity, with separate employees, with separate financial records (which may be part of consolidated financial reporting records), and a separate mission; it makes payments to licensee which meet market standards for the services and industries involved; and it was established for valid business purposes and not with the intent and purpose of circumventing payment of license fees on gross revenues. Nothing contained in this exclusion from gross revenues shall be interpreted to exclude from gross revenues such cash, credit, property of any kind or nature, or other consideration which would be considered the cable operator’s gross revenues derived from the operation of the cable system under the Cable Act. Except for gross revenues from such sales of advertising on the cable system, services to provide programming on the cable system, production services, or telecommunication services which are cable services, received by such affiliates, subsidiaries, parent, or such other person, firm or corporation, this paragraph shall not exclude from gross revenues any source of gross revenues which an existing licensee itself is receiving at the time it is granted a license under this chapter, as revised June 29, 1994.

When a licensee (or an affiliate, subsidiary, or parent) holds one or more other cable television licenses in Maricopa County and receives and allocates gross revenues from (b), (d), and (e), then gross revenues derived from (b), (d) and (e) shall be allocated pro rata to the City based on the ratio of the number of subscribers of licensee in the City to the total number of subscribers of licensee (or an affiliate, subsidiary, or parent) in all the jurisdictions in Maricopa County in which licensee (or an affiliate, subsidiary, or parent) holds a cable license. If a licensee does not allocate its revenue derived from (b), (d) and (e) from such other jurisdiction(s) then the number of subscribers in such jurisdiction(s) shall not be included in the total number of subscribers in all other jurisdictions.

Initial license shall means a license sought by, or granted to, a person or entity which that does not hold a license in Phoenix.

Leased channel or leased access channel means any channel available for lease and programming by persons or entities unaffiliated with the licensee.

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License means the non-exclusive authorization granted by the City to construct, operate and maintain a cable system within all or part of the City and to occupy or use the streets within the City.

The license shall be evidenced by a separate granting ordinance and license document and subject to the terms of this chapter.

License document means the written authorization granted by the City to the licensee for operation of a cable television system as evidenced by a license document signed by the City Manager, including referenced exhibits and specifications.

License fees means the fees the licensee pays the licensorCity under section 5-20.

Licensee means the person or entity to which a license henceforth is granted for theto construction, operateion, maintenancemaintain, or reconstruction of a cable system.

Licensor means the City of Phoenix as represented by the City Council, City Manager, or their designee acting within the scope of their authority.

Normal business hours means those hours during which most similar businesses in the City are open to serve customers. In all cases, "normal business hours" must include some evening hours at least one night per week or some weekend hours. Normal business hours will be specified in each license document.

Normal operating conditions means those service conditions which that are within the control of the licensee. CThose conditions which that are not within the control of the licensee include, but are not limited to, natural disasters, civil disturbances, utility company power outages, telephone network outages, and severe or unusual weather conditions. CThose conditions which that are ordinarily within the control of the licensee include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the cable system.

Other programming service means information that a licensee makes available to all subscribers generally.

Premium programming, pay-cable or pay-television means the delivery to subscribers, over the cable system, of a cable service for a fee or charge, on a per-program or per-channel basis.

Proposal or application shall refer to a response by a qualified cable company in accordance with City specifications to provide cable services to residents, businesses, industries, and institutions within the City.

Public access channel means channel capacity or any portion of the capacity of any channel designated for public use.

Renewal license shall means a license sought by, or granted to, a licensee already providing cable services in the City.

Resident means any person residing in the City as otherwise defined by applicable law.

School means any educational institution including primary and secondary schools, colleges and universities.

Section means any section, subsection, or provision of this chapter.

Service interruption means the loss of picture or sound on one or more cable channels or the significant deterioration of signal or sound.

Streets and public ways means the surface of and the space above and below any public street, sidewalk, right-of-way, alley, right-of-way easement, or other public way of any type whatsoever, now or hereafter existing as such within the City.

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"Subscriber or customer means any person, firm, corporation, or other entity that subscribes to, for any purpose, a cable service provided by the licensee by means of or in connection with the cable system. For the purposes of Section 5-27, "subscriber" includes those requesting a cable service provided by the licensee.

Two-way communication means the transmission of telecommunication signals from subscriber locations or other points throughout the cable system back to the cable system’s control center and the transmission of telecommunication signals from the control center to subscriber locations. The license documentlicense may authorize switching at a level other than the control center.

Video programming means programming provided by or generally considered comparable to programming provided by a television broadcast station.

Year means a full calendar year. "Fiscal" year may include any twelve-month period.

ARTICLE III. LICENSE DURATION, RENEWAL AND TRANSFER1

5-4 License.

(a) In the event that the City grants to a licensee a nonexclusive, revocable license to construct, operate, maintain, and reconstruct a cable system within the City, said license shall require that the licensee comply with the provisions of this chapter. The license may include in the license document such additional provisions as the licensor shall require to protect the public welfare, safety and health and comply with the standards established by this chapter.

(b) Any license granted shall be subject to the terms and conditions contained in this chapter. The city council may grant a waiver or modification to any terms and conditions required under this chapter if the waiver or modification (1) is in the best interest of the City, and (2) does not unfairly discriminate among licensees. In the event of conflict between the terms and conditions of the license and the terms and conditions on which the City can grant a license as set forth in applicable Arizona law or the City Charter, the applicable Arizona law and Charter shall, without exception, control, provided however, a licensee upon approval of the City Council may be excepted from such requirements as specified in the license. Nothing in the license may shall be deemed to waives the requirements of the various codes, ordinances and regulations of the City regarding permits, fees to be paid or manner of construction.

(c) The license may be issued conditionally upon the meeting of requirements set out in this chapter and contained in the license document.

(cd) This chapter is subject to and shall be governed by all requirements of the Cable Act. In the event of If there is a conflict between the requirements of this chapter and the requirements of the Cable Act, the Cable Act shall will control to the extent the Cable Act intends to preempts local requirements.

5-5 Use of streets and public ways.

(a) Any license granted pursuant to the provisions of this chapter shall authorizes the licensee to engage in the business of operating and maintaining a cable system in the City, and for that purpose the licensee may erect, install, construct, repair, replace, reconstruct, and retain, in, on, over, under, upon, across and along the streets and public ways within the City such wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments, and other property and equipment as are necessary and appurtenant to the operation of the cable system.

(b) For its cable system in the ordinary course of business, a licensee may lease, rent or license facilities such as wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments, and other property and equipment as it deems applicable from a third party; provided, however, that neither a licensee nor the third party shall will thereby be relieved of any regulation or obligation as to its use of such those facilities in the

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streets and public ways. Any such lease, rent or license from a third party of its facilities in the streets and public ways which that is not in the ordinary course of business shall will be subject to the approval of the City and such on the City’s reasonable terms and conditions on licensee’s use of the streets and public ways as the City Manager may condition its approval. The City Manager may establish rules and procedures to provide for the review and approval of all such requests for approval for lease, rent or license from third parties.

(c) Prior to construction or alteration, however, the licensee shall in each casemust file plans with the Street Transportation Department and any other department as may be designated by the licensorCity, and shallmust, where required, receive written approval in the form of a permit before proceeding.

(d) In the case of emergency repairs, licensee may obtain verbal approval for the repair from the appropriate Street Transportation Department personnel. However, in such those cases the licensee must later file plans and obtain a permit. Wherever the facilities or related construction activity of the licensee create a serious hazard to public safety or welfare, the licensee shall must take all necessary actions to immediately abate the hazard. If the licensee cannot contact the City immediately, the licensee shall must proceed to abate the hazard immediately and shall must notify the City, file plans, obtain a permit and make any required changes as soon as possible.

5-6 Term.

The license shall be effective upon execution by the City Manager of the license document authorized by the City Council and the compliance by licensee with the provisions of section 5-89. The term of the license shall be for a term specified in the license document may not to exceed fifteen years.

5-7 License non-exclusive.

Any andA all licenses granted are non-exclusive. The licensorCity specifically reserves the right to grant, at any time, such additional licenses for a cable system as it deems appropriate.

5-8 License nontransferable.

(a) A transfer is any transaction in which (1) an ownership or other interest in a licensee, its cable system, or any person that is an cable operator of the cable system is transferred from one person or group of persons to another person or group of persons so that control of a licensee is transferred; or (2) the rights or obligations held byof a licensee under a license are transferred or assigned to another person or group of persons. Control for these purposes means working control, in whatever manner exercised. By way of illustration and not limitation, the addition, deletion, or other change of any general partner of a licensee, any person who owns or controls a licensee, or a cable operator of a cable system is suchwould be a change of control.

(b) No transfer shall may occur without prior approval of the City. The City shall will act upon any request for approval of a sale or transfer within one hundred twenty120 days of such the request if such the request contains or is accompanied by such the information as that is required by applicable FCC regulations and by this chapter.

(c) An application for a transfer shall must provide complete information on the proposed transaction, including details on the legal, financial, technical, and other qualifications of the proposed transferee, and on the potential impact of the transfer on subscriber rates and service. At a minimum, the information required under applicable federal law shall must be provided with respect to the proposed transfer. The City may require additional information related to its determination in subsection (d) regarding the proposed transfer.

(d) In making a determination as todeciding whether to grant, deny, or grant subject to conditions an application for a transfer of a license, the City shall will consider, as appropriate,

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the following: the legal, financial, including the purchase price of the cable system, technical and other qualifications of the proposed transferee to operate the cable system; whether the licensee is in compliance with its license and this chapter and, if not, the proposed transferee’s commitment to cure such the noncompliance; whether operation by the proposed transferee affects competition in the delivery of cable service in the City including whether the proposed transferee owns or controls any other cable system in the City; and whether operation by the proposed transferee or approval of the transfer would affect subscribers, the City’s interest under this chapter, the license, or other applicable law, and whether the future cable-related needs and interests of the community as provided in the license would be satisfied at a reasonable cost.

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

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

(g) (1) Notwithstanding the foregoing, prior consent shall will not be required for one transfer to any company which is owned or controlled or under common control and with the same direct parent as licensee, and which is intended after such the transfer to remain under the ownership or control of that parent or an entity under common control or with the same direct parent, provided that, no such transfer shall will be valid unless licensee and the proposed transferee submit a statement describing the nature of the transfer, effect of the transfer on the direct and indirect ownership and control of the cable system, and a binding agreement and warranty to the City stating that:

(1)a. The proposed transferee has read, accepts and agrees to be bound by the license and this chapter;

(2)

b. The proposed transferee assumes all obligations, liabilities and responsibility under the license and this chapter for the acts and omissions of licensee known and unknown, for all purposes, including renewal, and agrees that the transfer shall will not permit it to take any position or exercise any right which that licensee could not have exercised; and

(3)

c. The transfer will not substantially increase the financial burdens upon or substantially diminish the financial resources available to the system operator.

(2) Licensee and the proposed transferee shall describe the nature of the transfer, and submit complete information regarding the effect of the transfer on the direct and indirect ownership and control of the cable system.

(h) Notwithstanding the foregoing, pledges in trust or mortgages of the assets of the system to secure the construction, operation or repair of the cable system may be made without the City’s prior consent; except that no such arrangement may be made which would in any respect under any condition prevent the licensee or any successor from complying with the license and this chapter and any other applicable laws and regulations, nor may any such arrangement permit a third party to succeed to the interest of licensee, or to own or control the cable system without the prior consent of the City.

(i) A non-rebuttable presumption that transfer of control has occurred shall will arise upon the acquisition or accumulation by any person, or group of persons who did not previously hold

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such a controlling interest, of more than fifty percent of the voting interest of the licensee or of the person exercising management authority over the licensee. A change in the general partner, or managing partner or managing corporation is a change of control. A change in the managing corporation is also a change in control.

(j) Subject to the exceptions specified in section 617 of the Cable Act, no licensee may sell or otherwise transfer ownership in a cable system within a thirty-six month period following the licensee’s acquisition or initial construction of such the system as the case may be by such licensee.

(k) To the extent permitted by the Cable Act, the licensee is authorized to lease channels or provide leased access channels as provided in accordance with section 612 of the Cable Act for commercial use by persons unaffiliated with the licensee.

5-9—5-11 Reserved.

5-12 Expiration.

Upon expiration of the initial term of the license, the licensor City shall will have the right, as further provided herein, to:

(a) Renew or extend the license subject to applicable provisions of federal law;

(b) Deny license renewal subject to applicable provisions of federal law;

(c) Purchase the system for fair market value as provided in section 5-14

5-13 Renewal or extension.

(a) A lLicense may be renewed by the City upon by filing an application of licensee in accordance withand following the process provided by applicable federal law to the extent applicable federal law provisions are timely activated.

(b) If a licensee fails to seek renewal as provided in accordance with the provisions of subsection subsection (a), then the licensee shall will comply with the provisions of article XII, Application Process, if the licensee wants to continue operating a cable system within the City.

(c) Notwithstanding the provisions of subsections (a) and (b), except as prohibited by federal law, any lawful action to revoke a licensee’s license for cause shall may not be negated forestalled by the subsequent initiation or pendency of renewal proceedings or the filing of a license application by the licensee as provided in this section.

5-14 Purchase of cable system.

(a) If the license is revoked or not renewed the City shall mayhave the right to purchase the cable television system at a price not to exceed its fair market value as defined in this section.

(b) In the event thatIf the City elects to purchase the cable system upon expiration or termination of the term of any the license as provided herein, the current licensee shall will sell the cable system to the City or its designee. The price for such that sale shall will be the fair market value of the cable system, as defined in this section.

(c) In accordance withI section 627 of the Cable Act, if a renewal of a license is denied and the City acquires ownership of the cable system or effects a transfer of ownership of a cable system to another person, any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the license itself.

(d) If a license held by a licensee is revoked for cause and the City acquires ownership of the cable system or effects a transfer of ownership of the cable system to another person, any suchthat acquisition or transfer shall will be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the license itself.

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5-15 Continuity of service mandatory.

(a) It shall be the right of Aall subscribers have the right to continue receiving cable services, during the term of the license insofar as long as as their financial and other obligations to the licensee are honored.

(b) In the event ofOn termination of the license, the licensee shall must cooperate with the City to ensure continuity of cable services to all subscribers for a period not to exceed thirty days.

Said That period may be extended by mutual agreement between the City and licensee. During such the extended period that it operates the cable system, the licensee shall will be entitled to the related revenues revenue for any period during which it operates the cable system.

(c) In the eventIf the licensee fails to operate the cable system for ninety-six consecutive hours without prior approval of the City or without just cause, the City may, at its option, operate the cable system or designate an operator until such time as licensee restores cable services to the standards required by its license or a new permanent operator is selected. If the City is required to fulfills this obligation for a licensee, the licensee shall will reimburse the City for all reasonable costs or damages that are the result of the licensee’s failure to perform.

5-16 Reserved.

5-17 Right of inspection of construction.

The licensor City shall will have the right to inspect all construction or installation work performed subject to the provisions of the license and to make such any tests as it may finds necessary to ensure compliance with the terms of this chapter, the license and other pertinent provisions of law.

5-18 Right of intervention.

The licensor City shall will have the right of interventionto intervene in any suit or proceeding involving the license to whichwhere the licensee is a party, and the licensee shall will not oppose such that intervention by the licensor.

5-19 Indemnification.

(a) Indemnification.

(1) Licensee shall will fully indemnify, defend and hold harmless the City, its officers, boards, commissions, elected officials, agents, attorneys, representatives, and employees against any and all costs, damages, expenses, claims, suits, actions, liabilities and judgments for damages, including but not limited to, expenses for legal fees, whether or not suit be is brought or not, and related disbursements and liabilities incurred or assumed by the City in connection withfor:

(1) a. Damage to persons or property, in any way arising out of or through the acts or omissions of licensee, its officials, agents, attorneys, representatives or employees;

(2)

b. Requests for relief arising out of any licensee’s action or inaction which that results in a claim for invasion of the right of privacy; for defamation of any person, firm or corporation; for the violation or infringement of any copyright, trademark, trade name, service mark or patent; or of any other right of any person, firm or corporation;

(3)

c. Any and all claims arising out of licensee’s failure to comply with the provisions of this chapter or a license or any federal, State or local law, or regulation applicable to licensee or the cable system;

(4)

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d. Any and all disputes arising out of a claim by any party other than City or licensee wherein damages or other relief is sought:

a. (i) As a result of the City’s cable system licensing of licensee; or

b.

(ii) As a result of the renewal or nonrenewal of licensee’s cable system license.

(b2) If a lawsuit covered by the provisions of subsection (a)(1) be is brought against the City, either independently or jointly with licensee, or with any other person or municipality, licensee, upon notice given by City, shall must defend the City at the cost of the licensee. If final judgment is obtained against the City, either independently or jointly with the licensee or any other defendants, the licensee shall will indemnify City and pay, satisfy and discharge such the judgment with all costs and satisfy and discharge the same.

(c3) City shall will cooperate with the licensee and reserves the right to participate in the defense of any litigation.

(d4) The provisions of this chapter shall may not be read to impose any liabilities on the City not imposed by other law, or to waive any immunities the City may have under federal or State law.

(e5) A licensee shall makemay not settlement in any matter identified above without the City’s written consent, which shall will not be unreasonably withheld. Failure to inform the City of settlement shall will constitute a breach of the license and the City may seek any redress available to it against the licensee whether set forth in this chapter or under any other municipal, State or federal laws.

(f6) All rights of the City, pursuant to indemnification, insurance, security fund, or faithful performance bond(s), as provided for by this chapter, are in addition to all other rights the City may have under this chapter or any other chapter, rule, regulation or law.

(g7) The City’s exercise of, or failure to exercise, all any rights pursuant to any section of this chapter shallwill not affect in any way the right of City subsequently to exercise any such rightsthose or any other rights of the City under this chapter or any other chapter, rule, regulation or law.

(h8) It is the purpose of this subsection to provide maximum indemnification to the City. under the terms and conditions expressed and, in the event of a dispute, this section shall be construed The intention is to provide, (to the greatest extent permitted by law,) to provide for the indemnification of the City by the licensee.

(i9) The provisions of this subsection shall not be dependent or conditioned upon the validity of this chapter or the validity of any of the procedures or agreements involved in the award or renewal of a license, but shall be and remain a binding right and obligation of the City and licensee even if part or all of this chapter, or the grant or renewal of a license, is declared null and void in a legal or administrative proceeding. It shall beEach license must expressly stated in a license, that that it is the intent of the licensee and City, upon the effective date of the license, that tthe provisions of this subsection survive any such declarationfinding that any other part of the license or this chapter is invalid. and shall be a binding obligation of and inure to the benefit of the licensee and City and their respective successors and assigns, if any.

5-20 License fees.

(a) The licensee shall will pay to the City the maximuma license fee amount no less thanpermitted by law five percent of licensee’s gross revenues, provided however a licensee upon approval of the City Council may be excepted from such requirement as specified in the license. The licensee shall pay the license fee because, among other things, the streets and public ways which are used by the licensee in the operation of its cable system within the

46

boundaries of the City are valuable public properties acquired and maintained by the City at great expense to its taxpayers, and that the grant to the licensee to use said streets and public ways is a valuable property right without which the licensee would be required to invest substantial capital in right-of-way costs and acquisitions.

(b) Should applicable law or regulations be amended in the future to allow the City to receive a greater license fee than the license fee set forth in this section, the City shall have the right to increase the license fee by amending this chapter, provided however a licensee upon approval of the City Council may be excepted from such requirement as specified in the license.

(bc) The payment of the license fee by the licensee to the City shall be madewill be paid each calendar quarterly by delivery of the same to the City Treasurer of the City on or before the twentieth day of the following month after the end of the quarter, with a ten-day grace period. If thesuch payment is not made by the next to the last business day of the following monthlast day of the grace period, the City shall will impose interest at a rate of one and one-half percent per month commencing from the dateon the first payment should have been madedue date and continuing until the payment is made. Fractions of a month shall will be considered to constitute a full month for the purpose of computing interest.

(cd) The City shall havehas the right to inspect the licensee’s income records and the right to audit and to recompute any amounts determined to be payable under this chapter. Any additional amount due to the City as a result of the audit shall will be paid with applicable interest within thirty days following written notice to the licensee that includes a copy of the audit report by the City;. said notice shall include a copy of the audit report. If the audit result shows that the licensee has underpaid license fees by more than one percent of amounts due for the period audited, then licensee shallmust, within thirty days of a request to do so by the City, reimburse the City for the full cost of the audit. The City Manager will attempt to coordinate any such audit with any privilege license tax audits and administrative appeals that the City may be performing under other City Code provisions at the same time. If within thirty days of the notice, the licensee timely, within thirty days, protests any audited additional license fees amount, then those additional amounts of such license fees assessed based on such audit shallwill not be due until final resolution by the City as provided in section 5-64.1 of this chapter. Upon resolution as provided in section 5-64.1 of this chapter, the City shall imposelicensee must pay interest on any amount determined to be payable after such appeal proceduredue at the rate of one and one-half percent per month commencing from on the date payment should have been made (i.e., within thirty days of the original assessment) and continuing until payment is made. If the licensee pays an additional license fee as a result of such an audit under protest and, upon exhaustion of all appeals, such that additional license fee is determined to have been overpaid, then the City shall will refund such that license fee overpayment plus interest at the rate of one and one-half percent per month from the date of such the overpayment to the date of refund by City.

(de) Each license fee payment shall must be accompanied by a brief report showing the basis for the computation and such any other relevant facts as that may be required by the licensorCity.

(ef) No aAcceptance of any payment shall may not be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of paymentmay it be construed as a release of any claim the licensorCity may have for further or additional sums payable under the provisions of this license.

(fg) Following the City’s issuance of an initialFor a new license for a portion of the City, the licensee will pay the City a minimum license fee ofshall initiate license fee payments to the licensor at the minimum rate of fifteen thousand dollars per year. At such time asWhen the licensee begins full system construction, this advance minimum fee shall will increase to thirty thousand dollars per year. These payments are to be considered advances of payments due in

47

later years and will be credited in future years to those license fees which that exceed fifty thousand dollars in a year.

(gh) If the license is terminated, revoked, or forfeited prior to the time specifiedregular expiration date in the license document, the licensee shall will immediately submit to the licensorCity a detailed financial statement showing the gross revenues of the licensee for the time elapsed since the last period for which the licensee has paid to the licensorCity the required license fee, and the licensee shall will pay to the licensorCity, not later than thirty days following the termination, the appropriate amount due for that final license period.

(hi) If a license issued under the authority of this chapter containshas a provision that includesing the cost of right-of-way construction permits in the license fee, the City will be under no obligation to provide plans review or field inspection for that licensee should the City’s of Phoenix’s administrative and inspection expenses exceed the amount of license fees paid to date by the licensee.

(ij) For the purpose of proper administration of this chapter and to prevent evasion of license fees imposed by this chapter, it shall will be presumed that all gross revenues are subject to the license fee until the contrary is established by the licensee as provided herein.

5-21 Abandonment; right to require removal of property.

(a) In the event thatIf the use of a substantial part of the cable system is discontinued for any reason for a continuous period of twelve months, or in if the event such cable system or property has been installed in any street or public place without complying with the requirements of the license or this chapter, or the license has been terminated, canceled or has expired without renewal, the licensee shall will promptly, upon being given ten days’ notice from the City, remove from the streets or public places all such of the property and poles of such the cable system. other thanHowever, the City may permit any underground cable or any other underground property which the City may permit to be abandoned in place. In the event of such removal,After the licensee removes its property, it shall must promptly restore the street or other area from which such the property has beenwas removed to a condition satisfactory to the City subject to the licensorCity’s customary practice to review upon request of licensee.

(b) Any property of the licensee remaining in place without the consent of the City one hundred eighty days after the termination or expiration of the license shall will be, at the option of the City, considered permanently abandoned. The City may extend such that time.

(c) Any property of the licensee permitted to be abandoned in place shall must be abandoned in such a manner as suitable to the City shall prescribe. Upon permanent abandonment of the property of the licensee in place, the property shall will, at the City’s option, become property of the City, and the licensee shall will submit to the City an instrument in writing, to be approved by the City Attorney, indicating transferring licensee’s loss of any further ownership rights to suchinterest in the property to the City.

5-22 Costs of publication of license.

The licensee shall will pay the cost of publication of any required noticesthe license to the extent such publication is required by law.

5-23 Business succession and liability.[Intentionally omitted]

The provisions of the City Finance Code, article IV, chapter 14, relating to business succession and liability, shall be applicable to all application fees, licenses and license

fees imposed under this chapter.

ARTICLE IV. SYSTEM OPERATION AND MAINTENANCE

5-24 Inspection of records.

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The licensee shall must maintain an office within the City at whichwhere pertinent licensee records shall will be available. The licensorCity shall havehas the right to inspect at any time during normal business hours, all books, records, maps, plans, income records, service complaint logs, performance test results and other like materials of the licensee which that relate to the licensee’s obligations under its license.

The records and any additional information which that may be required by the licensorCity pursuant to the requirements of this chapter or license document, shall will be furnished by the licensee to the licensorCity upon request, and at the licensee’s own cost and expense. Access to the aforementioned records shall may not be denied by the licensee on the basis that said the records contain "proprietary" information.

5-25 Communications with regulatory agencies.

Copies of all petitions, applications, communications, and reports submitted by the licensee to all the Federal Communications Commission, Securities and Exchange Commission, and any other federal or State regulatory commission or agency having jurisdiction overwith respect to any matters affecting the cable system or licensee’s operations in the City shall will be made available upon request to the licensorCity, provided however, licensee shall will without request, provide all documents required by law to be submitted to the licensorCity. Copies of responses from the regulatory agencies to the licensee shall will likewise be available upon request to the licensorCity, provided however, licensorL icensee shall will without request, provide all documents required by law to be submitted to the licensorCity.

Licensee shall will provide licensorCity with copies of any petition, applications or communications submitted or filed by the licensee for bankruptcy or receivership of licensee, and documents related to licensee’s declaration of bankruptcy, assignment, receivership or trusteeship.

5-26 Reports.

(a) No later than April 30 of each year or one hundred twenty days after the close of the licensee’s fiscal year, the licensee shall will present a written report to the licensorCity, certified as being correct by an officer of the company and which shallthat includes:

(1) Full financial statements for the previous year, including income statement, balance sheet, cash flow statement, and appropriate explanatory footnotes, for the licensee or any parent company. Financial statements for the licensee or any parent company shall will be audited by an independent CPA, and all other statements shall must be certified by an officer of the licensee to be an accurate reflection of licensee’s books and records. In the eventIf any audited financial report has not been published by the date due under this section, then the audited financial report shall will be deemed presented on time if presented within thirty days after publication. Upon request by licensorCity, the licensee shall will also provide an oral briefing to the City Manager of its financial condition,. This will includinge revenues, operating expenses and capital expenditures for the previous year.

(2) A report that includesT the following information specific to the City:

a. Gross revenues from each source, attributable to the operations of licensee from within the City;

b. A summary of the previous year’s major activities applicable to its operations that shows each for the license area separately, including, but not limited to, the total number of subscribers for each category of service authorized by a license, the number of homes passed, miles of cable plant, other significant system facilities or equipment added or deleted, any services added or dropped, and any significant technological changes occurring in the system;

c. A summary of complaints received and handledtheir disposition; and

d. Projected plans for the future;

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e. The report shall be certified as being correct by an officer of the company.

(b) Monitoring and compliance reports. No later than April 30 of each year, the licensee shall will provide a written report of any performance tests performed for the cable system. The licensorCity may establish a performance testing process to supplement the FCC standards if there are no FCC standards.

(c) Additional reports. The licensee shall will prepare and furnish provide to the licensorCity, at the times and in the form prescribed, such additional reports with respect to its operation, affairs, transactions, or property, as may be reasonably necessary and appropriate to review the performance of the licensee in connection withunder its license. Upon request, licensee shall will make available to licensorCity at licensee’s offices, complete design maps of the cable or video services system. Upon request the licensee shall furnish the licensorCity with a copy of any and all agreements relating to the license between the licensee and any utility that provideing for the use of any facility of the utility.

(d) Electronic mapping. At specified intervals specified in the license and in an electronica mapping format compatible with the current City electronic mapping format, the licensee shall will provide the licensorCity, up-to-date route maps of a suitable scale showing all transmitting and receiving pickup locations, the fiber and coaxial plant, and coaxial amplifiers and pedestal locations.

(ec) Misrepresentation, material variances between the actual situation facts and the contents of the reports, and/or significant tardiness in complying with this section shall will be grounds for the licensorCity’s use of appropriate remedies under this chapter.

5-27 Customer service standards.

(a) Each licensee shall will at all times satisfy federal customer service standards, and the customer services standards set forth in this chapter and in its license documentlicense agreement. In the event of a conflict among standards, the strictester standard shall will prevail, unless such standard has been preempted by federal law. , provided however a licensee upon approval of tThe City Council may be excepted fromwaive the customer services standards set forth in this chapter as if specified in the written license.

(b) The licensee shall will maintain a publicly listed, toll-free or collect telephone access line which will be available to its subscribers twenty-four hours a day, seven days a week, and be so operated to receive subscriber complaints, requests for repairs, service calls or billing adjustment.

(c) A written log shall will be maintained listing all subscriber complaints. A complaint is any complaint by a subscriber to the City that they did not receive the service the subscriber requested consistent with the requirements of athe license. The log shall must include the name and telephone number, if given, of the subscriber making the complaint and the disposition of the complaint. The record shall must be maintained for three years. In addition, the licensee shall will report specific complaint categories that the licensee tracks as a reasonable measure of customer service response standards and isas required to be reported inby the license.

(dc) The licensee shall renderwill provide efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such Iinterruptions, insofar asif practicable, shall must be preceded by notice and shall occur during periods of minimum use of the cable system. The licensee must maintain aA written log shall be maintained forof all major service interruptions including trunk and feeder line outages and keep the record shall be kept for a period of three years.

(ed) The licensee shawill maintain a repair force of technicians capable of responding to subscriber complaints or requests for service as required herein after receipt of the complaint or request. Unless FCC rules provide otherwise, no charge shall be made to the subscriber may

50

not be charged for this service except where the licensee’s equipment has been damaged by the subscriber and exceptor as may be provided in the license for fees and charges.

(fe) The licensee shall will ensure that all subscribers, programmers, and members of the general public have recourse to a satisfactory hearing of any complaints. The licensee shall will provide each subscriber with a statement that delineatesdescription of the process for submitting a complaint and that specifies:

(1) The telephone number and the address of the licensee that the subscriber can utilize to make a complaint.

(2) A statement indicating Tthat a dissatisfied subscriber should exhaust its remedy with the licensee before submitting a complaint to the City.

(3) The address and title of the official in the City designated by the City Manager to review complaints.

(gf) Upon request by the City Manager the licensee shall will submit a detailed description of any complaint whether written or verbal and the action taken by the licensee. The City Manager may establish such other procedures as he deems necessary for the handling and settling of complaints regarding cable television operations after notice to the public prior to adoption. Additional customer service standards determined necessary to respond to general customer service needs may be adopted by the City Council after notice to the public prior to adoption.

5-27.1 Construction notification.

The City Manager may establish requirements for notification of adjacent residents prior to construction. Failure to comply with this sectionthose requirements shall subject licensee to may result in appropriate remedies under this chapteractions by the City.

5-28 Safety.

(a) The licensee shallwill, at all times, employ the standard of care attendant appropriate to the risks involved and shall will install and maintain in use commonly accepted methods and devices for preventing failures and accidents which that are likely to cause damage, injury, or nuisance to the public or to employees of the licensee.

(b) The licensee shall will install and maintain its wires, cables, fixtures, and other equipment in accordance compliance with the requirements of the City’s Electrical Code of the City of Phoenix, and theCity regulations established by the City Manager and other applicable cCodes provisions, in such a mannerso that they will not interfere with any installations property of the licensorCity or any public utility.

(c) All lines, equipment, and connections in, over, under, and upon the streets and public ways and private property in the City, wherever situated or located, shall must at all times be kept and maintained in a safe and suitable condition, and in good order and repair. Special attention shall must be paid to placing guy wires and anchors before the placement of cable.

5-29 Liability insurance.

(a) Within five days after the effective date of aDuring the term of the license granted under this chapter, the licensee shall must file with the licensorCity and continuously maintain on file throughout the term of this license for the mutual benefit of the City, the public and the licensee a commercial general liability insurance policy, written on an occurrence basis, against claims for bodily injury, death or property damage occurring on or aboutthat covers losses related to the licensee’s cable system and appurtenances., which The insurance shall must cover such claims as may be occasioned bythat result from any act, omission or negligence of the licensee or its officers, agents, representatives, and employees during all times that the licensee will be using, maintaining and operating the cable system and appurtenances granted under the terms

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of this license. The minimum types of coverage and limits of such liability coverage shall not be less thanare:

Type of Insurance Minimum Limits of Liability

Commercial general liability

$1,000,000.00 combined single limit

Premises/operations

Products/completed operations

Contractual

Independent contractors (OCP)

Personal injury with exclusion "C" deleted

Automobile liability $1,000,000.00 combined single limit

Owned

Hired

Non-owned Commercial General Liability – Occurrence Form

Policy must include bodily injury, property damage and broad form contractual liability coverage. • General Aggregate $2,000,000 • Products – Completed Operations Aggregate $1,000,000 • Personal and Advertising Injury $1,000,000 • Each Occurrence $1,000,000

(b) The City shall havehas no responsibility of liability for such insurance coverage. The insurance requirements above are minimum requirements and in no way limit the indemnity covenants in the license. The City in no way warrants that the minimum limits above are sufficient to protect the licensee from liabilities that might arise out of any activities under the license. The licensee is free to purchase additional insurance as it may determine necessary An enumeration of specific insurance coverage and amounts shall not limit or restrict the indemnity covenants contained in this license. The licensee shall must furnish the City with a certificate of insurance. The certificate shall must be issued by an insurance company authorized to transact business in the State of Arizona, or be named on the list of authorized insurers maintained by the Arizona Department of Insurance. Insurance coverage shall not expire during the life of the license. The licensee shall must provide an renewal updated certificate of the required insurance covered to the City not less than ten days prior to the each expiration date.

(c) The licensee shall must also provide catastrophe umbrella insurance coverage in the minimum amount of four three million dollars in excess of one two million dollars underlying coverage; and

(d) The City, its officers, agents and employees shall must be named as an additional insured on the licensee’s policy except worker’s compensation and employers liability and this shall must be indicated on the certificate of insurance issued to the City. The licensee’s coverage

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shall will be primary for any and all losses arising out of the performance ofactivities related to the license; and

(e) The licensee’s policy shall must specifically provide full coverage for explosion, collapse and underground incidents.

(f) For each required insurance policy, the licensee must provide to the City, within 2 business days of receipt, a notice if a policy is suspended, voided or cancelled for any reason. Said liability insurance policy shall carry a thirty-day notice of cancellation endorsement.

(g) All deductible amounts under liability insurance coverage shall must be approved by the licensorCity.

(h) The licensorCity may, during the term of the a license, and no more frequently than every three years, modify the liability insurance provisions provided for in this sectionlimits, based on increases in the CPIprice inflation, so as to ensure full protection of the City and the public. The Llicensees shall will have six months from the date of notification notice from the City Manager to comply with any increase.

(i) A licensee may self-insure the above-described policy coverages if such the licensee or its parent is ofhas sufficient financial standing resources to reasonably provide such insuranceself insure. A licensee that elects to self-insure shall file withmust demonstrate to the City a that certificate of insurance as specified by the Cityit has a financially sound self insurance program.

(j) The licensee shall provide a letter of certification, from the Industrial Commission of Arizona, that the licensee is insured by the State compensation fund or is an authorized self-insurer or a certificate of insurance issued by an insurance company authorized by the Arizona Department of Insurance to provide worker’s compensation and employer’s liability insurance in the State of Arizona.

5-30 Faithful pPerformance bond.

The licensee shall, within thirty days after the effective date of an initial license under this chapter, must file withprovide the licensorCity with an initial performance bond in the amount of $50,000fifty thousand dollars, payable to the City, conditioned on that the licensee shall well and truly observinge, fulfilling and performing each every term and condition of the license, including the full amount of any compensation, indemnifications or cost of removal or abandonment of any property of the licensee, plus a reasonable allowance for attorneys’ fees and costs, up to the full amount of the bond.

At such time as the licensee begins incidental construction on the system, the Street Transportation Director may increase the required level of performance bond to a level commensurate with cable system construction in the right-of-way.

Upon initiation of major system construction or initiation of the cable system construction required in the license, the amount of bond shall willbe increased to at least $300,000three hundred thousand dollars or more as determined by the Street Transportation Director based on the level of construction in the right-of-way.

One year after completion of the major construction schedule as required in the license, the amount of bond shall will be reduced to $200,000two hundred thousand dollars. This amount shall be maintained for the remaining period of the license.

Funds represented by the aforestated bond shall be recoverable by the licensor in case of noncompliance by the licensee, its agents, its assignees, vendees, lessees, or successors in interest.

5-31 Security fund.

(a) Within thirty days after the effective date of an initial license or renewal license, the licensee shall will deposit $40,000 into a suitable interest-bearing account established by the

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licensorCity, and the licensee shall maintain on deposit through the term of this license, the sum of not less than forty thousand dollars, as security for the faithful performancecompliance by it of with all the provisions of this the license, and compliance with all orders, permits and directions of any agency of the licensor having jurisdiction over its acts or defaults under this ordinance or license issued pursuant thereto, and the payment by the licensee of any claims, liens, penalties, liquidated damages and taxes due the licensor which arise by reason of the construction, operation or maintenance of the cable system. LicensorThe City shall will have the full power of withdrawal of funds from the account except that all interest accrued shall will be payable to the licensee on demand. No withdrawals shall may be made from the security fund account without the prior written approval of the City Manager.

(b) Within thirty days after notice to licensee that any amount has beenof a withdrawn withdrawal by the licensorCity from the security fund pursuant to subsection (a) of this section, the licensee shall must deposit a sum ofsufficient money sufficient to restore such the security fund to the original amount.

(c) If the licensee fails, within ten days of a notice of intent to withdraw from the security fund, to pay to the licensorCity any taxes or fees due and unpaid; or fails to repay to the licensor, within such ten days of such notice, any damages, costs or expenses which the licensor shall be compelled to pay by reason of any act or default of the licensee in connection with the license; or fails, within thirty days of such notice of failureamount that the City claims is due from by the licensor, or to comply with any provision of the license which that the licensorCity reasonably determines can be remedied by an expenditure of the security fund, then the licensorCity may immediately withdraw theat amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal,T the licensorCity shall will notify the licensee of the amount and date thereofof any withdrawals.

(d) The security fund deposited pursuant to this section shall become the property of the licensor in the event that the license is cancelled by reason of the default of the licensee or revoked for cause. The licensee, however, shall will be entitled to the return of such any portion of the security fund, or portion thereof, as that remains on deposit at the expiration of the termor termination of the license, or upon termination of the license at an earlier date, provided that there is then no outstanding default on the part of the licensee after the City withdraws any amount due from the licensee. Any funds that the City erroneously or wrongfully withdraws shall be returned to licensee, with interest of one and one-half percent per month from the date of withdrawal, within thirty business days of after a final determination that the withdrawal was in error or wrongful.

(e) The rights reserved to the licensor with respect to the security fund are in addition to all other rights of the licensor whether reserved by this chapter or a license or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the licensor may have.

(f) In lieu of providing a forty thousand dollar security fund, the licensee may provide a twenty thousand dollar security fund and a twenty thousand dollar letter of credit in a form approved by the City Attorney. The provisions set forth in subsection (a) through (e) shall apply to the twenty thousand dollar security fund and twenty thousand dollar letter of credit. Reference to security fund in this chapter shall be considered as referring to both the security fund and letter of credit if licensee exercises this option.

ARTICLE V. DESIGN AND CONSTRUCTION PROVISIONS

5-32 Standards for construction.

The cable television system shall must be constructed in accordance with FCC requirements and the provisions of this chapter, as set forth herein and in the license. If FCC requirements are terminated and this chapter or the license provides no corresponding requirements, then the

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FCC regulations shall will remain in effect on for licensees by order of this chapter until the City approves the terminations or adopts substitute requirements.

5-33 License area.

The City may issue a license for any portion, or all, of the City. up to and including the present territorial limits of the City and any other area later added during the term of the license. The licensee shall, prior to the issuance of a license, submit a map to the licensor, showing the initial license area and indicating all areas proposed to be served and a proposed time schedule for installation of the cable system. If any of the license area is subject to a line extension policy or other limiting provisions, the policy or provisions shall be stated in the license document.

5-34 Cablecasting fFacilities.

The licensee shall will provide cablecasting facilities in accordance with the requirements set forth inas required by the license documentlicense. Such Those facilities shall will remain the property of the licensee, whether used for local origination or public, educational or governmental use.

5-35 Interconnection.

(a) Subject to the limitation of applicable federal and State law, the licensee shall will provide interconnection capability as specified in the license and as required herein.

(b) Subject to the limitation of applicable federal and State law, the licensorCity may require interconnection between any or all of the licenses issued by the licensorCity. Such iInterconnection may be required for the purpose of providing services specified in the license on a City-wide basis and/or providing the capability for institutional communications throughout the City.

(c) Subject to to the limitation of applicable federal and State law, when such interconnection is required within the City limits, the cost shall will be borne by all licensees to be interconnected. If licensees cannot establish a cost sharing formula for interconnection or cannot resolve technical issues, the City Manager may establish a cost sharing formula and resolve technical issues and his decision shall be final and conclusive.

(d) Except as provided in the license, licensee shall will interconnect access channels of the cable system with any or all other cable systems in adjacent areas outside the City, upon the directive of the City. Interconnection of cable systems may be done by direct cable connection, microwave link, satellite, or otherany appropriate method.

(i) Upon receiving the directive of the City to interconnect such other cable systems, a licensee shall will immediately initiate negotiations with the other affected cable system(s) in order that for all costs may to be shared fairly among cable systems for both construction and operation of the interconnection link, as more particularly set forth in the licenses.

(ii) A licensee may be granted reasonable extensions of time to interconnect or the City may rescind its order to interconnect upon petition by the licensee to the City. The City shall may grant thatsaid request, if it finds that a licensee negotiated in good faith and failed to obtain an approval from another cable system(s) of the proposed interconnection.

5-36 System construction schedule.

(a) For any construction or improvements required under the provisions of any license, the license documentlicense willshall establish minimum construction deadlines which shall be met.

(b) The license willshall contain a construction schedule designating the amount of construction required each year during the construction period in increments of no more than six months. This construction schedule willshall be the principal criterion to be used in the City’s determination of whether the licensee is meeting the construction requirements. The licensee mustshall submit modifications of the construction schedule to the City and these modifications

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willshall be deemed to be approved by the City and included in the schedule unless the licensee is notified by the City in writing within thirty days of receipt of the modification that the modification is disapproved. The modifications of the construction schedule may not be discriminatory, result in an overall delay in the construction period, or result in an isolation of an area from service in violation of the line extension policy set forth in the license.

(c) The licensee willshall report on construction progress on a monthly basis, after construction begins, and provide this information to the licensorCity, showing specifically whether the construction schedule is being met and the reasons for any delay. The written report mustshall state the number of feet of strand in place, the number of feet of cable installed overhead and underground as well as the number of dwellings passed by that cable, the number of amplifiers installed, the approximate number of homes which can be served directly by the energized cable, the approximate number of homes which have been offered service, the approximate number of subscribers, as of the last day of the month, and map showing areas with cable installed, areas with cable energized and areas to be installed or energized within the next month. The report mustshall be submitted to the licensorCity by the first working day after the ninth day of the following month. The licensorCity may determine the format to be used by the licensee in completing this report.

For construction which involves rebuilding, the licensorCity may change the reporting period to a quarterly basis and what information is to be included in the written report.

(d) The licensee mustshall schedule its construction activities to coordinate with the City’s construction activities on the streets, so as to avoid unnecessary inconvenience to the public.

5-37 Provision of service.

(a) Consistent with the line extension policy in the license, the licensee willshall make service available for installation upon the request of to any subscriber, potential subscriber or property owner or the City within the service area, no later than one hundred twenty days from the date of request.

(b) Once licensee has made service available to installation, licensee mustshall provide service to the potential subscriber within the time periods specified in the license.

5-38 Undergrounding of cable.

(a) Cables mustshall be installed underground where all existing utilities are already underground. Previously installed aerial cable shall be undergrounded in concert with utilities when their facilities are undergrounded. Licensee may install cables on existing or replacement utility poles or in existing conduit where permission is granted by owner of the utility pole or conduit. No additional poles or longer poles will be permitted in the streets or public ways for any cable runs of this license. If licensee installs cable on existing poles as provided herein, the licensee mustshall bury its cable if such poles are removed and not replaced in kind. If the licensee makes use of existing conduit of an entity not then regulated by the City, by license or franchise, the licensee willshall be subject to the provisions of this license in the use of such conduit in the streets and public ways.

(b) To prevent unnecessary disruption and damage to streets, rights-of-way, and other property the installation of cable system mustshall be accomplished in new subdivisions at the same time, and in the same trench as other communications, electric and other permanent services to structures. Except as federal law may grant them other rights, developers of new residential buildings or mobile homes within a new or undeveloped subdivision, new residential units within new multiple-occupancy residential developments, and new commercial and industrial buildings and structures willshall treat cable television facilities as they treat other communication facilities, utilities and other underground facilities, in regards to availability and cost of trenching for undergrounding.

5-39 Special additional underground service permit.

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If a residence is already served by cable television service, the licensee willshall obtain a special additional underground service permit to construct underground facilities. The special additional underground service permit willshall be required in addition to all other permits required. The City Manager or his designee may adopt regulations providing for the procedural requirements for issuing such permits.

5-40 Construction standards and codes.

(a) In addition to meeting all requirements of local electrical and building codes specified in this chapter, the licensee mustshall comply with specifically established standards and requirements for construction of the system specified in the license.

(b) Construction, installation and maintenance of a cable system willshall be performed in an orderly and professional manner. All cables and wires mustshall be installed, where possible, parallel with and in a manner similar to the installation of electric and telephone lines. Multiple cable configurations mustshall be arranged in parallel and bundled with due respect for engineering considerations. Underground installations mustshall be in conformance with all applicable codes.

(c) Each cable television system mustshall include equipment capable of providing standby power as specified in the license. The equipment mustshall be so constructed as to automatically revert to the standby mode when the electrical utility power returns. The system mustshall incorporate safeguards necessary to prevent injury to cable service technicians resulting from licensee’s standby power sources.

(d) Licensee willshall at all times comply with applicable sections of:

(1) National Electrical Safety Code (ANSI) C2-1990;

(2) National Electrical Code (National Bureau of Fire Underwriters);

(3) The City Building Code;

(4) City subdivision regulations, all as from time to time amended and revised, and all other applicable rules and regulations now in effect or hereinafter adopted by the City;

(5) City of Phoenix supplement to the Maricopa Association of Government Uniform Standard Specifications for Public Works Construction.

(e) In any event, tThe cable system mustshall not endanger or interfere with the safety of persons or property in the license area or other areas where the licensee may have equipment located.

5-41 Preconstruction tests.

Before beginning the actual installation, components willshall be tested thoroughly to assure that the components individually and in aggregate provide high signal quality and are dependable. The license mustshall specify the tests and procedures to be utilized in meeting this requirement.

5-42 Technical and performance standards.

(a) In addition to the system tests required by the FCC, the licensee mustshall perform tests of the cable system as set forth in the license to comply with the goals and standards specified herein. The tests willshall be performed periodically, to assure the City that standards are being met.

(b) To the extent applicable, tThe licensee mustshall comply with the FCC Technical Standards for Class 1 channels (part 76, subpart K of the FCC rules and regulations). The license will set forth detailed objectives, standards and requirements for operating a cable system. The City reserves the right to specify in the license documentlicense additional

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standards in a manner consistent with federal law. Each licensee shall demonstrate to the City whether the cable system does meet or exceed FCC technical standards for each channel.

(1) TheAs provided in the license, licensee willshall construct, install, operate and maintain its system in a manner such that it operates at all times consistent with all laws, this chapter, construction standards of the City, FCC rules and regulations, part 76, subpart K, as amended, which establish minimum technical standards relating to the cable system’s technical operations and signal quality, and any detailed standards submitted by licensee as part of its application or renewal proposal, which standards are to be incorporated by reference in the license. In addition, licensee mustshall provide the City, upon request, the opportunity to observe the conduct of and a written report of the results of licensee’s annual proof of performance tests. In addition, the City may at any time conduct independent measurements of the system by the use of City personnel or use of contract services. Ifn the event that inaccurate proof of performance reports are shown to have been the result of licensee’s willful neglect, licensee mustshall pay the costs reasonably incurred by the City in obtaining such independent verification of technical compliance with all standards.

(c) System reliability. The license willshall specify system reliability standards. The license willshall specify methods for achieving this standard. A repeated or lengthy failure by licensee to achieve this standard, willshall subject the licensee to liquidated damages or other remedies under this chapter.

(d) System maintainability. The licensee mustshall achieve a "mean-time-to-repair" objective for system malfunction in addition to the requirements set forth in section 5-27. The license mustshall specify the mean-time-to-repair objective in hours and the method for achieving this objective. A repeated or lengthy failure by licensee to achieve this objective willshall subject the licensee to liquidated damages or other remedies under this chapter.

5-43 Use of cable system during an emergency.

(a) The licensee swillhall design and construct the system to provide for a restricted audio override of the audio portion of all channels during emergencies unless prohibited by FederalCC regulations. Emergency or standby power sources will be installed at the main electronic control center and appropriate locations so as to minimize loss of signal. Key cable routings mustshall also be equipped with a standby power source. In case of any declared emergency or disaster, the cable system willshall, upon request of the Mayor or City Manager, make available immediately its facilities to the City for emergency use during the emergency or disaster period. A declared emergency or disaster as used in this section means such event that has been proclaimed by the Mayor, the Governor or other competent authority.

(b) If licensee’s cable system passes any emergency command centers of State and local government within the City, the licensee willshall make the cable system available to such centers so that emergency audio and visual communications to the public are possible from those centers as specified in the license.

(c) During declared emergencies or disasters, licensee mustshall make its local origination and other necessary equipment if any available at the emergency command centers available to facilitate videotelevision communications from those centers.

5-44 Damage to cable system during an emergency.

Subject to the applicable Phoenix City Charter, City Code and Arizona State statutes, the City hasshall have the right, because of a public emergency, to sever, disrupt, dig up or otherwise destroy facilities of licensee, without any prior notice if such action is deemed reasonably necessary by the City Manager, Director of the Fire Department, Director of the Police Department, Street Transportation Director, Public Works Director, or Water Services Director. A public emergency isshall be any condition thatwhich, in the opinion of any of the officials named, poses an immediate threat to the lives or property of the citizens of the City, caused by

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any natural or manmade disaster, including, but not limited to, storms, floods, fire, accidents, explosions, major water main breaks, [or] hazardous material spills. Licensee willshall be responsible for repair of its facilities damaged pursuant to any such action taken by the City.

5-45 Restoration of streets.

Whenever the licensee disturbs the surface or subsurface of any street or public way or adjoining public property or the public improvement located thereon, therein or thereunder for any purpose mentioned herein, the licensee willshall promptly, at its own expense, restore, repair or replace the same to the satisfaction of the licensorCity (subject to the licensorCity’s customary practice of review upon request of licensee). If such restoration, repair or replacement of the surface, subsurface or any structure thereon, therein or thereunder is not completed in a reasonable time or such restoration, repair or replacement does not meet the City’s satisfaction, the licensorCity may perform the necessary restoration, repair or replacement, either through use of its own forces or through a hired contractor, and the cost thereof, including the cost of inspection and supervision, shall be paid by the licensee within thirty days after receipt of the City’s invoice therefor. All excavations made by the licensee in the streets and public ways shall be properly safeguarded for the prevention of accidents. The work hereby required mustshall be done in strict compliance with the rules, regulations and ordinances of the licensorCity as now or hereafter provided.

5-46 Use of streets and public ways.

(a) The cable system herein provided for, to be constructed, installed, operated and maintained under a licensehereunder, shall be so must be located or relocated as to interfere as little as possible with traffic or other authorized uses over, under or through said streets and public ways. Those phases of construction relating to traffic control, backfilling, compaction and paving, as well as the location or relocation of said cable system must comply withherein provided for, shall be subject applicable Cityto regulation by the City. The licensee mustshall keep accurate installation records of the location of all facilities in the streets and public ways and furnish them to the City upon request. Licensee willshall cooperate with the City to furnish such information in an electronic mapping format compatible with the current City electronic mapping format. Upon completion of new or relocation construction of underground facilities in the streets and public ways, the licensee willshall provide the City with installation records in an electronic format compatible with the current City electronic mapping format showing the location of the underground and above-ground facilities.

(b) If, during the design process for public improvements the City discovers a potential conflict with proposed construction, the licensee willshall either: (1) locate and, if necessary, expose its facilities in conflict or (2) use a pothole service under contract with the City to locate or expose its facilities. Licensee shall reimburse the City for the cost resulting from number (2) above. The City swillhall make every reasonable effort to design projects pursuant to this subsection so as to avoid relocation expense to the licensee. Licensee agrees to furnish the location information in a timely manner, but in no case longer than forty-five days.

(c) The City reserves the prior and superior right to lay, construct, erect, install, use, operate, repair, replace, remove, relocate, regrade, widen, realign, or maintain any streets and public ways, aerial, surface, or subsurface improvement, including but not limited to water mains, traffic control conduits, cable and devices, sanitary or storm sewers, subways, tunnels, bridges, viaducts, or any other public construction within the rights-of-way of the City limits.

(d) When the City uses its prior and superior right to the streets and public ways, the licensee mustshall move its property located in the streets and public ways, at its own cost, to such a location as the City directs. Notwithstanding the foregoing, ifin the event the public purpose project is paid for totally or in part by non-public funds, then the licensee’s costs of moving its property willshall be borne by the source of the non-public funds in the same ratio as the non-public funds bear to the total project’s costs.

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(e) If, during the course of a project, the City determines licensee’s facilities are in conflict, the following shall apply:

(1) Prior to City notice to proceed to contractor, the licensee mustshall, within a reasonable time, but in no event exceeding six months, remove or relocate the conflicting facility. This time period shall begins running upon receipt by the licensee of written notice from the City. However, if both the City and the licensee agree, the timeframe may be extended based on the requirements of the project.

(2) Subsequent to City notice to proceed to contractor, the City and the licensee will immediately begin the coordination necessary to remove or relocate the facility. Actual construction of such removal or relocation is to begin no later than seventy-two hours, if practicable, after written notification from the City of the conflict.

(f) The licensee agrees to obtain a permit as required by the license prior to removing, abandoning, relocating or reconstructing, if necessary, any portion of its cable system. Notwithstanding the foregoing, the City understands and acknowledges there may be instances when the licensee is required to make repairs, in compliance with federal and/or State laws, that are of an emergency nature. The licensee will notify the City prior to such repairs, if practicable, and will obtain the necessary permits in a reasonable time after notification.

(g) The City willshall not bear any cost of relocation of existing facilities, irrespective of the function served, where the City facilities or other facilities occupying the streets or public ways under authority of a City permit or license which must be relocated, are already located in the streets or public ways and the conflict between the licensee’s potential facilities and existing facilities can only be resolved expeditiously as determined by the City by the movement of the existing City or permittee facilities.

(h) If licensee’s relocation effort so delays construction of a public project causing the City to be liable for delay damages, the licensee mustshall reimburse the City for those damages attributable to the delay created by the licensee. Ifn the event the licensee should disputes the amount of damages attributable to the licensee, the matter willshall be referred to the administrative hearing procedure provided in this chapter. If damages are assessed by the licensorCity after final decision by the City, the licensee mustshall pay the City within thirty days. Late charges of five percent and interest charges of one and one-half percent per month willshall be added for late payment.

(i) The installation, use and maintenance of the licensee’s cable system within the streets and public ways mustauthorized herein shall be in such a manner as not to interfere with the City’s placement, construction, use and maintenance of its streets and public ways, street lighting, water pipes, drains, sewers, traffic signal systems or other City systems that have been, or may be, installed, maintained, used or authorized by the said City.

(j) The licensee agrees not to install, maintain or use any of its cable or video services system in such a manner as to damage or interfere with any existing facilities of another utility located within the streets and public ways of the City and agrees to relocate its facilities, if necessary, to accommodate another facility relocation, that has a prior rights interest in the streets and public ways.

(k) The licensee mustshall obtain permits from the City for all construction and relocation in the streets and public ways. Further, the licensee willshall reimburse the City for pavement damage as specified in the license. Reimbursement for pothole services and pavement damage is separate, and in addition to, any license fees included in the license. The licensee, at the time of or prior to submitting construction plans, mustshall provide the City with a description of the type of service to be provided by the licensee in sufficient detail for the City to determine compliance with this license.

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(l) The entire cost of relocation willshall be borne by the City if the licensee is required by the City to relocate facilities which are located in private easements or rights-of-way obtained by the licensee prior to the dedication of the public street or easement from which the facilities must be relocated. These prior rights of the licensee would also be unaffected by any subsequent relocation. "Prior rights" as used in this paragraph means property rights obtained by the licensee prior to the dedication of the streets or public ways from which the facilities are requested by the City to be relocated.

5-47 Trimming of trees.

Any trimming of trees by the licensee in the streets and public ways must comply with applicable City regulation.shall be subject to such regulation as the City Manager or other authorized official may establish in order to protect the public health, safety and convenience.

5-48 Vacated street.

Ifn the event any street or public way used by the licensee isshall be vacated by the licensorCity, or the use of a street or public way isthereof discontinued by the licensee, during the term of the license, the licensee mustshall forthwith remove its facilities from such street or public waytherefrom unless a public utility easement remains or the licensee is specifically permitted to continue in place.

5-49 Temporary removal of cable to move large objects.

In the event it is necessary temporarily to move or remove any of the licensee’s wires, cables, poles or other facilities placed pursuant to the license, in order lawfully to move a large object, vehicle, building or other structure over the streets and public ways of the licensor, Upon reasonable notice, the llicensee upon reasonable notice mustshall temporarily move its wires, cables, poles or other facilities placed over the streets or public ways to accommodate movement of large objects, vehicle, building or other structure over the streets or public ways. Unless the request is made by the City for public purposes, the person requesting the temporary relocation will reimburse the relocation at the expenses incurred by the licensee.of the person requesting, other than such a request by the licensor for public purposes, the removal of its facilities as may be required to facilitate such movements.

ARTICLE VI. SYSTEM SERVICES

5-49.1 Institutional service (IS).

The license may contain provisions requiring the licensee to provide institutional service.

5-50 Local origination channel.

The licensee willshall operate the cablecasting studios on a high-quality, professional basis for the purpose of providing videocablecast programming responsive to local needs and interests. The emphasis for the local origination channel willshall be on providing local programming that is unavailable to viewers on broadcast television channels. Programming priority on this channel shall be given to local cultural and sporting events; local political, social and economic issues of interest; and local entertainment.

5-51 Government access channel.

The licensee willshall provide the channels for the use of the licensorCity and other government agencies located within the City, at no charge to the licensorCity as specified in the license. As specified in the license, the licensee willshall provide advice, technical expertise and facilities and equipment to aid in the utilization of the channels, and other support as specified in the license.

5-52 Educational access channel.

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The licensee willshall provide channel capacity for educational use at no charge to users as specified in the license. As specified in the license, the licensee willshall provide advice, technical expertise, facilities and equipment to aid in the utilization of such channels, and other support as specified in the license.

5-53 Public access channel.

The licensee shall provide for the use of the public at no charge channel capacity as specified in the license. As specified in the license, the licensee shall provide advice, technical expertise and facilities and equipment to aid in utilization of such channels and other support as specified in the license.


ARTICLE VII. LICENSE ADMINISTRATION AND ENFORCEMENT

5-60 Intent.

It is the intent of the licensorCity to provide for the day-to-day administration and enforcement of the provisions of any license granted by the City by delegating such responsibility to the City Manager. This delegation will be effective upon the granting of a license.

5-61 Revocation of license.

(a) In addition to all other rights and powers retained by the City under this chapter or otherwise, any license issued hereunder may, pursuant to this section be revoked, altered, or suspended by the licensorCity, except as may be prohibited by federal law. Such revocation, alteration or suspension may occur in the event of a recurring or protracted substantial breach of the license terms and conditions, or this chapter, which materiallysubstantially affects the provision or quality of cable services, the ability of the licensorCity to effectively regulate the licensee, or the licensorCity’s collection of fees or charges. The list set forth below in this section shall be considered materialsubstantial breaches. The list is not exhaustive:

(1) Willful, false or misleading statements to the licensorCity;

(2) Failure to file and maintain the faithful performance bond, security fund or insurance coverage or to pay license fees as required under this chapter;

(3) Repeated failure, as determined by the licensorCity, to maintain signal quality under the standards prescribed by this chapter and the license documentlicense;

(4) Any sale, lease, assignment, or transfer of control of its license without prior written consent of the City;

(5) Violation of material terms of this chapter or material terms of a license issued pursuant to this chapter., such as, but not limited to, any excessive delay in beginning construction or in meeting the construction schedule or in providing subscriber services after completion of construction or in completing construction of the cable system;

(6) Any instance in which all or part of licensee’s facilities are sold under an instrument to secure a debt and are not redeemed by licensee within thirty days from said sale;

(7) Fraud or deceit by the licensee, or attempt thereof in its conduct or relations under or pursuant to the license;

(8) Failure to meet any conditions established in a license or failure to perform as required in areas designated as grounds for revocation in the license;

(9) Willful or grossly negligent repeated violations of this chapter, the license, or representations made in the application process, or any rule, order or regulation of the licensorCity;

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(10) Recurrent failure after notice by the licensorCity, to provide service to any part of the licensee service area, subject to the line extension policy.

(b) Upon determination by the City Manager that one or more of the above grounds or other grounds for revocation, alteration or suspension of the license exist, the City Manager willshall notify the licensee of that determination, shall state the major causes and reasons supporting the determination, and shall make a written demand that the licensee comply and shall state the potential remedies for noncompliance. If a violation by the licensee continues for a period beyond that set forth in the written demand without written proof that the corrective action as approved by the City has been taken or is being actively and expeditiously pursued, the licensorCity may revoke, alter or suspend the license as provided in this chapter.

(c) Upon revocation of a license, the City may declare a forfeiture, whereupon all rights of the holders of the license willshall immediately be divested without a further act upon the part of the licensorCity, and the licensee mustshall, at the option of the City, forthwith remove its structures or property from the streets and public ways and restore them to such condition as the licensorCity may require as provided in section 5-21. Upon failure to do so, the licensorCity may perform the work and collect the cost thereof from the licensee.

5-62 Remedies for delay in construction and liquidated damages.

(a) The licensorCity may, at its sole option, apply the following in connection with delays in system construction after notice of intent to licensee:

(1) Reduce the duration of the license on a month-for-month basis for each month of delay within the licensee’s control exceeding three months. Such reduction in term canshall not accumulate beyond a total of two years.

(2) Forfeiture of performance bonds.

(b) The license document shall contain provisions for assessing liquidated damages in lieu of, at the discretion of the licensor, any remedy authorized herein for failure to comply with the terms of this chapter or the license document.

(c) Each license granted by the City mustshall state that the licensee understands and shall agrees that failure to comply with any time and performance requirements in as stipulated in this chapter and the license will result in damage to the City, and it is and will be impracticable to determine the actual amount of such damage in the event of delay or nonperformance. The license must shall include provisions for liquidated damages to be paid by the licensee in amounts set forth in the license and chargeable to the security fund for the following concerns:

(1) Failure to complete system construction or reconstruction in accordance with this chapter and/or the license, unless the City Council specifically approves the delay by motion or resolution;

(2) Failure to provide a cable connection within the time(s) set forth in any line extension policy;

(3) Failure to properly restore the public right-of-way or to correct related violations of specifications, code, or standards after having been notified to correct such defects;

(4) Failure to comply with customer service standards as required by the license;

(5) Failure to test, analyze and report on the performance of the cable system as required by the license;

(6) Failure to provide in a continuing manner the type of services proposed in the renewal proposal, or license, unless the City Council specifically approves modification of licensee’s obligation;

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(7) Failure to cure any violation of the license, following notice and an opportunity to cure; and

(78) Any other action or non-action by the licensee, as agreed upon between the City and licensee, and set forth in the license.

(cd) If the City Manager concludes that a licensee is in fact liable for liquidated damages pursuant to this section, and that the particular event, occurrence or failure of the licensee which is the basis for the conclusion was not the basis for a prior assessment of liquidated damages, the City willshall issue to licensee by certified mail a notice of intention to assess liquidated damages. The notice willshall set forth the nature or the violation and the amount of the proposed assessment. The licensee mustshall, within thirty days of receipt of such notice:

(1) Respond to the City in writing, contesting the City’s assertion of violation and providing such information or documentation as may be necessary to support licensee’s position; or

(2) Cure any such violation (and provide written evidence of the same), or, in the event that, by the nature of the violation, such violation cannot be cured within such thirty-day period, take reasonable steps to cure thesaid violation and diligently continue such efforts until thesaid violation is cured. Licensee willshall report to the City, in writing, at thirty-day intervals as to licensee’s efforts, indicating the steps taken by licensee to cure said violation and reporting licensee’s progress until such violation is cured.

(de) If then the event that licensee timely contests the City’s assertion of violation and intention to assess liquidated damages, the City willshall within fifteen days schedule a hearing in accordance with the procedures set forth in section 5-64 to determine whether there is a violation and whether liquidated damages may be assessed against licensee.

(ef) If the licensee does not contest in writing the City’s assertion of violation or cure or begin curing of such violation within thirty days of receipt of such notice, the City Manager’s decision and the amount of the proposed assessment of liquidated damages becomesshall be considered final and the City may exercise all remedies provided in the license to collect such liquidated damages.

5-63 City Manager’s responsibility.

The City Manager mayshall have responsibility for performing the following functions:

(a) Initiateing proceeding for revocation, alteration or suspension of the license as established in section 5-61 of this ordinance.

(b) Administering and enforceing the provisions of the cable television system license(s).

(c) Coordinateing the government access channel.

(d) Provideing coordination and technical programming and operational support to City departments.

(e) Establishing procedures and standards for operations and services, use of dedicated channels, and sharing of public facilities.

(f) Planning expansion and growth of City cable services in conjunction with the licensee.

(g) Analyzeing the possibility of integrating cable communications with other City, State or regional telecommunications networks.

(h) Formulateing and recommending long range telecommunications policy for the City.

(i) Contracting with established facilities for the provision of programming and technical support, where deemed appropriate.

(j) Adopting regulations as may be required to enforce the provisions of this chapter.

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(k) Performing any other activities associated with cable television.

5-64 License administration and enforcement.

(a) TIn all matters of license administration, the City Manager has theshall have authority to determine the licensee’s compliance with the terms and provisions of the license, and in the event of noncompliance to exercise any or all of the remedies for noncompliance included in this chapter.

(b) The licensee may request an administrative hearing on an initial decision of the City Manager on matters of license administration delegated to the City Manager, if the licensee requests in writing such a hearing within ten days of the City Manager’s notification to licensee of the noncompliance. However, the licensee willshall have thirty days following written notice to licensee by the City pursuant to section 5-20(d) of any additional amount of license fee due the City as a result of an audit to protest and request an administrative hearing pursuant to the provisions set forth in section 5-64.1, which section isshall be the exclusive procedure to protest an audited additional license fee amount.

(c) Within fifteen days of receipt of the request from the licensee submitted pursuant to subsection (b), the City Manager will schedule a public an administrative hearing. The shall be scheduled by the City Manager. This shall be a public hearing, and licensee mayshall be afforded an opportunity to be heard, to present evidence and to cross examine witnesses. Within fifteen days after the conclusion of thesuch hearing, the City Manager shallmust issue a determination. In that determination the City Manager may find:

(1) Find Tthat licensee is not in violation of the terms of the license;

(2) Find Tthat the licensee is in violation, but that such violation was with just cause and waive any liquidated damages that might otherwise be imposed;

(3) Find Tthat licensee is in violation of the terms of the license, take corrective action and foreclose on all or any appropriate part of the security deposit provided pursuant to section 5-31;

(4) Find Tthat licensee is in violation of the terms of the license and impose liquidated damages;

(5) In case of a material violation of the license within the meaning of section 5-61, find that the licensee is in material violation and revoke, alter or suspend the license;

(6) Find Tthat the licensee is in violation of the system construction and shorten the term pursuant to section 5-62.

(d) If the City Manager determines that licensee has committed a violation, the determination shallmust be accompanied by a detailed statement of reasons for the determination, including findings of fact.

(e) The decision of the City Manager shall becomes final unless licensee requests a public hearing before the City Council within fifteen days of its receipt of the statement of reasons and findings of fact by the City Manager.

5-64.1 License fee amount protests—Administrative hearing.

(a) If within thirty days after receipt of written notice to licensee by the City that an additional amount of license fee is payable, the licensee petitions the City Manager in writing setting forth the reasons why the additional amount is not payable and requesting a hearing, the City Manager shallwill appoint a hearing officer qualified to hear petitions for hearing under chapter 14 of the Phoenix City Code.

(b) If a petition for hearing or redetermination of the ruling of the hearing officer is not made within the time periods specified herein, the licensee shallwill be deemed to have waived and

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abandoned the right to question the additional amount of license fee determined to be due, and any license fee and interest determined to be due shallwill be final and due and payable.

(c) The licensee and the licensorCity shallmust make written disclosure required below as fully as then possible within sixty days of licensee’s filing its petition and no later than twenty days before the hearing:

(1) Each party shall disclose in writing to the other party:

(i) The name and address of each person whom the disclosing party expects to call as an expert witness at the hearing, the subject matter on which the expert is expected to testify, the substance of the facts and opinions to which the expert is expected to testify, a summary of the grounds for each opinion, the qualifications of the witness and the name and address of the custodian of copies of any reports prepared by the expert.

(2) (ii) The existence, location, custodian, and general description of any tangible evidence or relevant documents that the disclosing party plans to use at the hearing.

(d) The licensee may amend its petition at any time before licensee rests its case at the hearing or such time as the hearing officer allows for submitting of amendments in cases of a redetermination without a hearing. The hearing officer may require that amendments be in writing and, in that case, shallmust provide a reasonable period of time to file the amendment. The hearing officer shallmust provide a reasonable period of time for the City Manager to review and respond to the petition and to any written amendments.

(e) Hearings shallwill be conducted by a hearing officer and shallwill be continuous until the hearing officer closes the record. The licensee may be heard in person or by its authorized representative at such hearing. Hearings shallwill be conducted informally as to the order of proceeding and presentation of evidence. The hearing officer shallwill admit evidence over hearsay objections where the offered evidence has substantial probative value and reliability. Further, copies of records and documents prepared in the ordinary course of business may be admitted, without objection as to foundation, but subject to argument as to weight, admissibility, and authenticity. Summary accounting records may be admitted subject to satisfactory proof of the reliability of the summaries. In all cases, the decision of the hearing officer shallmust be made solely upon substantial and reliable evidence. All expenses incurred in the hearing shallwill be paid by the party incurring the same.

(f) Redeterminations upon a "petition for redetermination" shallwill follow the same conditions, except that no oral hearing shallwill be held.

(g) In either case, the hearing officer shallmust issue his ruling not later than forty-five days after the close of the record by the hearing officer.

(h) The decision made by the hearing officer upon administrative review by hearing or redetermination shallwill become final thirty days after licensee receives notice by the City Manager of the amount payable recalculated, if necessary, to conform to the hearing officer’s decision, unless the licensee files an action for judicial determination of the amount due or the licensorCity files an action for judicial review in the manner provided in subparagraph (j).

(i) Any license fee due shallmust be paid within thirty days after such notice either unconditionally or under protest as part of an appeal procedure for judicial review.

(j) Licensee may bring an action against the licensorCity in the Superior (or other appropriate) Court located in Maricopa County for judicial determination of the amount due. The licensorCity may seek judicial review of all or any part of a hearing officer’s decision by initiating an action in the Superior (or other appropriate) Court located in Maricopa County. An action for judicial determination of the amount due or for judicial review shallmay not be commenced more than thirty days after licensee receives notice of the amount payable recalculated, if necessary, to conform to the hearing officer’s decision. Failure by either party to bring the action within thirty

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days shallwill constitute a waiver of the right to bring said action, except that if one party initiates an action in the appropriate court, the other party may file such counterclaim as would be allowed pursuant to the Arizona Rules of Civil Procedure.

(k) The court shallmay consider only those grounds and issues set forth in the petition filed under this section or amendments allowed by the hearing officer during the review process and prior to the issuance of his ruling. Subject to the limitation in this subsection, the appeal shallwill be considered de novo.

(l) If the petition alleges that the additional amount of license fees payable based on gross income of an affiliate, subsidiary, parent or any person, firm or corporation in which licensee has a financial interest or which has a financial interest in licensee is not payable then the following procedure shallwill apply at such hearing to such portions of the petition.

(1) The City shallwill have the burden of establishing a prima facie case for any of the following elements which is the basis for its claim that an additional amount of license fees is payable: that the affiliate, subsidiary, parent, or such other person, firm or corporation is not a separate legal entity, with separate employees, with separate financial records (which may be part of consolidated financial reporting records), and a separate mission; that it makes payments to licensee which do not meet market standards for the services and industries involved; that it was not established for valid business purposes or it was established with the intent and purpose of circumventing payment of license fees on gross revenues; or that such cash, credit, property of any kind or nature, or other consideration is cable operator’s gross revenues derived from operation of the cable system under the Cable Act.

(2) After the City establishes a prima facie case for any of the above elements, the licensee shallwill have the burden of going forward and introducing sufficient evidence on that element to create a genuine issue of material fact. If the licensee does not do so, the City shallwill prevail on that element. If the licensee does create a genuine issue of material fact on that element, then the burden shallwill shift and the City shallwill have the burden of proving that element by a preponderance of the evidence.

(3) The licensee shallmust provide to licensorCity within thirty days of filing its petition, the following information:

(i) Specific categories of information to be identified by the City by administrative rules regarding the elements in section l(1);

(ii) The name and address of each person whom licensee expects to call as an expert witness at the hearing, the subject matter on which the expert is expected to testify, the substance of the facts and opinions to which the expert is expected to testify, a summary of the grounds for each opinion, the qualifications of the witness and the name and address of the custodian of copies of any reports prepared by the expert;

(iii) The existence, location, custodian, and general description of any tangible evidence or relevant documents that the licensee plans to use at the hearing.

(4) The licensorCity shallmust provide the licensee within thirty days of receipt of licensee’s information identified above, the following information:

(i) The name and address of each person whom licensorCity expects to call as an expert witness at the hearing, the subject matter on which the expert is expected to testify, the substance of the facts and opinions to which the expert is expected to testify, a summary of the grounds for each opinion, the qualifications of the witness and the name and address of the custodian of copies of any reports prepared by the expert.

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(ii) The existence, location, custodian, and general description of any tangible evidence or relevant documents that the licensorCity plans to use at the hearing.

5-65 Hearing by City Council.

(a) If a public hearing before the City Council is requested by licensee pursuant to section 5-64, it shallwill be on the record of the proceeding before the City Manager and it shallwill convene within thirty days of the request therefor. The City Council’s decision, which shallmust include findings of fact, shallmust be made not later than forty-five calendar days after the conclusion of the hearing. In that decision, the City Council may:

(1) Find that licensee is not in violation of the terms of the license;

(2) Find that licensee is in violation but that such violation was with just cause and waive any liquidated damages or penalty that may otherwise be imposed;

(3) Find that licensee is in violation of the terms of the license, take corrective action and foreclose on all or any appropriate part of the security fund provided pursuant to section 5-31 to pay the cost thereof;

(4) Find that licensee is in violation of the terms of the license and impose liquidated damages in an amount no larger than imposed by the City Manager;

(5) In the case of a material violation of the license within the meaning of section 5-61, declare the licensee in violation and, to the extent the City Manager so acted, revoke, alter or suspend the license;

(6) Find that the licensee is in violation of the system construction and to the extent the City Manager so acted shorten the term pursuant to section 5-62

(7) Find that the licensee is in violation of the terms of the license and exercise such remedies as provided by the license for such violation.

(b) The City Council may delegate to a subcommittee of the City Council or an administrative hearing officer selected by the City Council the holding of a public hearing as required herein, provided however that the findings of fact and any decision of such subcommittee or administrative hearing officer shallwill be submitted as a recommendation to the City Council for final action.

5-66 Changes in cable technology.

(a) The licensee shallwill implementreflect reasonable ongoing technological and service developments in its construction, operation and maintenance of the cable system as developments become economically and competitively feasible.

(b) At intervals specified in the license documentlicense, the City may convene a technological and service review of the cable system with the licensee. The purposes of the reviews are to consider the merits of including in the cable system new technological and service developments to more effectively, efficiently and economically serve the public and to enable the City Manager to report to the City Council on the licensee’s compliance with this section.


ARTICLE VIII. RIGHTS OF INDIVIDUALS PROTECTED

5-70 Discriminatory practices prohibited.

The licensee shallwill not deny service, deny access, discriminate in hiring, compensation, or promotion, discriminate in purchasing or ownership, or otherwise discriminate against subscribers, programmers, employees, vendors, investors, the general public or any other person, on the basis of race, color, religion, national origin, sex, age or disability. The licensee shallwill take appropriate action to adhere to the equal employment opportunity and affirmative action requirements of the federal government, as expressed in section 76.13(a)(8) and 76.311

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of chapter 1 of title 47 of the Code of Federal Regulations. The licensee shallmust comply at all times with all other applicable federal, State and City laws, and all executive and administrative orders relating to nondiscrimination. The licensees shallmust submit reports on itstheir actions and success in affirmative action as required by the licensorCity.

5-71 Permission of property owner required.

A license granted hereunder does not convey the right to install any cable, line, amplifier, converter, or other piece of equipment by the licensee on private property.

5-72 Subliminal transmission prohibited.

The licensee shall not cablecast subliminal transmissions at any time, for any purpose whatsoever.


ARTICLE IX. VIOLATIONS

5-78 Theft of service.

It isshall be unlawful for any person or entity to make any unauthorized connection, whether physically, electrically, acoustically, inductively or otherwise, to any part of a licensed cable system within the City, for the purpose of enabling himself or herself or others to receive any video, audio, digital or other signals or information, without payment to the licensee.

5-79 Tampering with system.

It isshall be unlawful for any person or entity, without the consent of the licensee, to knowingly tamper with, remove, or injure any cable, wire or other component used in connection with a licensed cable system within the City.

5-80 Existing systems.

(a) From and after the effective date of this chapter it isshall be unlawful for any person to establish, operate, construct or expand a cable system, unless a license has been obtained pursuant to the provisions of this chapter, and unless the license is in full force and effect.

(b) A cable system in an annexed area with a license issued by the Board of Supervisors of the County shallwill be deemed in compliance with the terms of this chapter for the balance of the term fixed in the County license. The City shallwill succeed to the rights of the County under the license at the time of annexation. Upon the expiration of the term of a cable television license issued by the County in an annexed area, the licensee must comply with the terms of this chapter. If the license issued by the County in an annexed area does not have a term, the license shallwill expire at such time as set by the City Council.

(c) Nothing in this section shall precludes the City from amending a County license in an annexed area or a license issued by the City to a licensee to bring such license into conformance with the applicable rules and regulations of the FCC.

(d) The terms and conditions set forth in this chapter 5 prior to the amendments passed by the City Council on June 29, 1994, shall continue to apply to all cable licenses in effect on such date until a renewal license is issued pursuant to the amended provisions of chapter 5 passed by the City Council on June 29, 1994, or until such existing license issued by the City shall by its terms terminate, whichever occurs first. The rights and duties based on the respective performance of licensee and licensor under such existing license occurring prior to termination of such license are saved as to both licensor and licensee. Upon termination of an existing City license, licensee shall comply with this chapter 5 as amended.

5-81 Reserved.

ARTICLE X. INTERPRETATION OF ORDINANCE

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5-82 Compliance with laws.

The licensee shall comply with all applicable federal and State laws and regulations heretofore or hereinafter enacted or reestablished, and shallwill be subject to all applicable requirements of City ordinances, resolutions, rules, and regulations heretofore or hereafter adopted or established by the City pursuant to its governmental powers, police powers and taxing authority during the entire term of the license.

5-83 Captions.

The captions to articles and sections throughout this chapter are intended solely to facilitate reading and reference to the sections and provisions of this chapter. Such captions shallwill not affect the meaning or interpretation of this chapter.

5-84 No recourse against the licensorCity.

The licensee shallwill have no recourse whatsoever against the licensorCity or its officials, boards, commissions, agents, or employees for any loss, costs, expense, or damage arising out of any provision or requirement of the license or because of the enforcement of the license or because of defects in this chapter or license issuance hereunder.

5-85 Non-enforcement by the licensorCity.

The licensee shallwill not be relieved of its obligation to comply with any of the provisions of this chapter or a license by reason of any failure of the City upon any one or more occasions to insist upon or to seek compliance with any such terms and conditions.

5-86 Rights reserved to the City.

(a) There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any ordinance or the Charter of the City.

(b) There is hereby reserved to the City the power to amend any section of this chapter so as to require additional or greater standards of construction, operation, maintenance or otherwise pursuant to the City’s lawful police powers or as provided in the license.

(1) If any State or federal law or regulation shall require the licensee to perform any service, or shall permit the licensee to perform any service, or shall prohibit the licensee from performing any service, in conflicts with the terms of its license or any law or regulation of the City, then as soon as possible following knowledge of such conflict, the licensee or the City mustshall notify the other party of the conflict believed to exist between such State or federal law or regulation and the laws or regulations of the City.

(2) If the City determines that a material provision of this chapter is affected by any subsequent action of the State or federal government, the City mayshall have the right to modify the license toany of the provisions herein to such reasonable the extent as may be necessary to carry out the full intent and purposes of this chapter. consistent with State or federal law.

(c) Neither the granting of any license nor any provision hereof shallwill constitute a waiver or bar to the exercise of any governmental right or power of the City.

(d) No privilege or exemption shall be granted under this chapter except those specifically prescribed herein.

5-87, 5-88 Reserved.

ARTICLE XI. THE LICENSE DOCUMENTLICENSE

5-89 The license documentlicense—Issuance and acceptances.

(a) The license granted by the City shallwill be evidenced by a license documentlicense which the City Council by separate ordinance shallwill authorize the City Manager to execute and issue to the licensee subject to the conditions of this chapter and granting ordinance.

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(b) No license granted pursuant to the provisions of this chapter shallwill become effective until all provisions required in this section are completed, all of such provisions being hereby declared to be conditions precedent to the effectiveness of any such license granted hereunder. In the event any of such provisions are not completed in the time and manner required, the license shallwill be null and void.

(c) Within twenty days after the effective date of the ordinance awarding any license, or within such extended period of time as the City Council in its discretion may authorize, the licensee shallwill submit to the City its written acceptance of the license, in form satisfactory to the City Attorney, together with the security fund, faithful performance bond and insurance policies or certificates required by this chapter and its license, and its acknowledgment that it will be bound by and comply with everything which is required of the licensee by the provisions of this chapter and the applicable license. Such acceptance shallwill be acknowledged by the licensee and shall, in form and content, be satisfactory to and approved by the City Attorney.

ARTICLE XII. APPLICATION PROCESS

5-90 Purpose of this article.

The purpose of this article is to provide for the control of the application process for cable licenses and to specify the form and requirements for submitting an application to the City.

5-91 Application for initial license.

(a) Each application for an initial license to construct, operate or maintain any cable system in the City mustshall be filed with the office of the City Clerk and shall be on forms prescribed by the City. TheSaid forms willshall require, at a minimumbut shall not be limited to, the following information:.

(1) The name, address, and telephone number of the applicant;

(2) A detailed statement of the corporation or business entity organization of the applicant, including but not limited to, the following and to whatever extent required by the City:

a. The names, residence and business addresses of all officers, and directors of the applicant;

b. The names , residence and business addresses of all officers, persons and entities having a one percent or larger share of the ownership of the applicant and the respective ownership share of each such person or entity;

c. The names, and addresses of any parent or subsidiary of the applicant and all licenses owned or controlled by the such parent or subsidiary., namely, any other business entity owning or controlling applicant in whole or in part or owned or controlled in whole or in part by the applicant, and a statement describing the nature of any such parent or subsidiary business entity, including but not limited to cable systems owned or controlled by the applicant, its parent and subsidiary and the areas served thereby;

d. A detailed and complete financial statement of the applicant certified by an independent certified public accountant, for the fiscal year next preceding the date of the application hereunder, and a letter or other acceptable evidence in writing from a recognized lending institution or funding source, addressed to both the applicant and City setting forth the basis for a study performed by such lending institution or funding source, and a clear statement of its intent as a lending institution or funding source to provide whatever capital shall be required by the applicant to construct and operate the proposed cable system in the City, or a statement from an independent certified public accountant, certifying that the

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applicant has available sufficient free, net and uncommitted cash resources to construct and operate the proposed cable system in this City;

e. A detailed financial plan (pro forma) describing for each year of the initial license, projected number of subscribers, rates, all revenues, operating expenses, capital expenditures, depreciation schedules, income statements and a sources and uses of funds statement. All information is to be presented in the format required by the City; and

f. A statement identifying, by place and date, any other cable system license(s) awarded to the applicant, its parent or subsidiary; the status of said license(s) with respect to completion thereof; the total cost of completion of such licensed cable system(s); and the amount of applicant’s and its partner’s or subsidiary’s resources committed to the completion thereof.

(3) A detailed description of the proposed plan of operation of the applicant thatwhich shallmust include , but not be limited to, the following:

a. A detailed map indicating all areas proposed to be served, and a proposed time schedule for the installation of all equipment necessary to become operational throughout the entire area to be serviced;

b. A statement or schedule setting forth all proposed classifications of rates and charges to be made against subscribers and all rates and charges as to each of said classifications, including installation charges and cable service charges;

c. A detailed, informative, and referenced statement describing the actual equipment and operational standards proposed by the applicant;

d. A copy of the form of any agreement, undertaking, or other instrument proposed to be entered into between the applicant and any subscriber; and

e. A detailed statement setting forth in its entirety any and all agreements and undertakings, whether formal or informal, written, oral, or implied, existing or proposed to exist between the applicant and any person, firm or corporation which materially relate or pertain to or depend upon the application and the granting of the license;

(4) A copy of any agreement covering the license area, if existing, between the applicant and the local telephone and/or electric utilities, providing for the use of any facilities of the utility including but not limited to poles, lines or conduits; and

(5) Any other details, statements, information or references pertinent to the subject matter of such application which shall be required or requested by the City, or by any other provision of law.

5-92 Application fees for initial license.

(a) Notwithstanding any other requirement of this chapter, each applicant for an initial license must furnish with its proposal a nonrefundable filing fee in the amount of $10,000ten thousand dollars by certified or cashier’s check made payable to the City of Phoenix. No proposal for an initial license shall be considered without receipt of said check.

(b) All checks received will be deposited to an account of the City and will serve to recover expenses incurred by the City in the preparation and granting of initial licenses and regulation of licenses pursuant to this chapter.

(c) Any licensee under an initial license, upon acceptance of such initial license, shall reimburse all additional expenses, including , but not limited to, any and all administrative, engineering, publication, or legal costs and consultants’ expenses incurred in connection with the processing, evaluation and preparation of documents relating to the initial license. The City

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shall document all such expenses by invoice. Ifn the event that expenses exceed the total amount of filing fees collected from the applicant(s), the licensee shall pay to the City the excess amount within sixty days of written demand by the City.

5-93 Selection of licensee under an initial license.

(a) The granting or denial of a cable license is a legislative function invested exclusively in the discretion of the City Council.

(b) Upon the request of the City Council expressed by resolution, the City Manager shall solicit applications for a cable license by advertisement requesting the submission of applications. Such notice for applications shall be published at least once in an official newspaper.

(c) The City may determine and fix any date upon or after which the same shall be received by the City, or the date before which such applications shall be received, or the date after which the same shall not be received, and may make any other determinations and specify any other times, terms, conditions, or limitations respecting the soliciting, calling for, making and receiving of such applications. The terms and conditions for application shall be described in a document called "Request for Proposals."

(d) The City upon receipt of an unsolicited application for an initial license may by advertising or other means solicit and call for competing applications pursuant to paragraph (c) or may, in its sole discretion, reject such application as untimely.

(e) Any person, firm or corporation submitting a proposal for an initial license to operate a cable system in response to the City’s request for proposals shall provide all information required by this chapter and all other information requested by City’s request for proposals or otherwise required by the City. Each proposal shall be responsive to the questions soliciting the information, and shall completely, accurately and materially supply all of the information so solicited. Any misrepresentation, failure, neglect or refusal to provide any of such information may, at the option of the City, render a proposal invalid. The requested information must be complete and verified as true by the applicant.

(f) All proposals received by the City from an applicant shall become the sole property of the City.

(g) Before submitting a proposal, each applicant shall be solely responsible for and must:

(1) Examine all regulatory chapters and the request for proposals documents thoroughly;

(2) Be familiar with local conditions which may in any manner affect performance under the license, including, but in no event limited to, community and institutional telecommunication needs, relevant demographics, topographies, pole attachment policies of appropriate utility authorities, undergrounding, and subscriber desires;

(3) Be familiar with all applicable federal, State and local laws, chapters, rules and regulations affecting performance under the license; and

(4) Carefully correlate all observations with the requirements of this chapter and the request for proposals documents.

(h) Upon receipt of any application for an initial license, the City shall prepare or cause to be prepared a report, including recommendations respecting such application, and cause the same to be completed and filed with the City Council. The City will evaluate all proposals that are submitted. All applicants that have met the City’s qualifications in the request for proposals and have submitted proposals on the required forms will be offered the opportunity to make a formal presentation to the City Council in support of their applications.

(i) The City may make such investigations as it deems necessary to determine the ability of the applicant to perform under the license, and the applicant shall furnish to the City all such information and data for this purpose as the City may request.

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(j) The City reserves the right to waive all formalities where the best interest of the City may be served, and may, if it so desires, request new or additional proposals.

(k) If, upon receiving the City Manager’s report, the City Council shall determine to further consider the applications, it shall pass a resolution setting a public hearing for the consideration of applications.

(l) Notice of such hearing shall be published in accordance with the requirements of State law. At the public hearing each applicant and its proposal may be examined and the public and all interested parties afforded a reasonable opportunity to be heard.

5-94 Consideration of applicants.

(a) In evaluating an application for a license, the City shallwill consider, among other things, the following factors:

(1) The extent to which the applicant has substantially complied with the applicable law and the material terms of any existing cable license for the City.

(2) Whether the quality of the applicant’s service under an existing license in the City, including signal quality, response to customer complaints, billing practices, and the like, has been reasonable in light of the needs and interests of the communities served.

(3) Whether the applicant has the financial, technical, and legal qualification to provide cable service.

(4) Whether the application satisfies any minimum requirements established by the City and is otherwise reasonable to meet the future cable-related needs and interests of the community, taking into account the cost of meeting such needs and interests.

(5) Whether the applicant will provide adequate public, education, and governmental access channel capacity, facilities, and financial support.

(6) Whether issuance of a license is warranted in the public interest, considering the immediate and future effect on the streets and public ways and private property that would be used by the cable system, including the extent to which installation or maintenance as planned would require replacement of property or involve disruption of property, public services, or use of the streets and public ways; the effect of granting a license on the ability of cable to meet the cable-related needs and interests of the community; and the comparative superiority or inferiority of competing applications.

(7) Whether the applicant or an affiliate of the applicant owns or controls any other cable system in the City, or whether grant of the application may eliminate or reduce competition in the delivery of cable service in the City.

(b) If the City finds that it is in the public interest to issue a license, considering the factors set forth above, and subject to the applicant’s entry into an appropriate license documentlicense, it shallwill issue a license. If the City denies a license, it will issue a written decision explaining why the license was denied. The City may reject any application that is incomplete or fails to respond to a request for proposals or other information requested by the City. This chapter does notis not intended and shall not be interpreted to grant any applicant or existing licensee standing to challenge the issuance of a license to another.

5-95 Award of license based on public record.

(a) It is the intention of tThe City willto award any initial license based solely on the basis of the public record. To this end, communication with the City Council by those wishing to submit proposals for an initial license should be limited to public sessions. Requests for information shouldd be directed to the office of the City Manager.


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ARTICLE XIII. RELATIONSHIPS AMONG LICENSEES

5-100 Arbitration or mediation of disputes.

(a) The licensor may establish a process for arbitration or mediation of disputes between licensees.

(b) The licensor may determine that a dispute among licensees is contributing to a delay, reduction, cost increases or disruption in services delivered to the community. The licensor may then require resolution of the dispute via an arbitration or mediation process.

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CITY COUNCIL REPORT

TO: Rick Naimark

Deputy City Manager

FROM: Ray Dovalina, PE

Street Transportation Director

SUBJECT: 2015 TIGER GRANT APPLICATION

This report requests that the Transportation and Infrastructure (T&I) Subcommittee recommend City Council approval to submit a federal Transportation Investment Generating Economic Recovery (TIGER) grant application for Phase II of the Grand Canalscape project. THE ISSUE U.S. Transportation Secretary Anthony Foxx announced that $500 million will be made available for transportation projects across the country under a seventh round of the U.S. Department of Transportation’s (DOT) TIGER grant program. TIGER 2015 discretionary grants will fund capital investments in surface transportation infrastructure and will be awarded on a competitive basis to projects that will have a significant impact on the nation, a region, or metropolitan area. The grant program will focus on capital projects that generate economic development and improve access to reliable, safe and affordable transportation for the disconnected, while emphasizing improved connection to employment, education, services and other opportunities, workforce development, or community revitalization.

The proposed project is the second phase of the Grand Canalscape, which would complete the canal trail, pedestrian lighting, neighborhood connections, bridges, and signalized crossings for the portion of the Grand Canal between Interstate 17 (I-17) on the west and the City of Tempe on the east. The project would link to Phase I of the Grand Canalscape project scheduled for completion in September 2016, and would create a contiguous at-grade trail from Tempe Town Lake and related trails in the east to I-17 in west Phoenix. The new portion is approximately eight miles of canal trail and street crossings for biking and walking, while also providing major connections to light rail, bus and the growing pedestrian/bicycle network. The grant request is $10 million, which would be combined with a $5 million local match from the Street Transportation Department and Salt River Project Aesthetic funds. OTHER INFORMATION The Grand Canalscape provides strong links to the Gateway and Midtown Districts for Reinvent PHX planning efforts, the Phoenix Comprehensive Bicycle Master Plan, Phoenix’s Complete Streets Program, and the West Phoenix Revitalization Area. The recommended project will include valuable infrastructure for connections to schools,

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employment, and areas the City has identified for economic development. This project coincides with the Federal emphasis on “Ladders of Opportunity”. RECOMMENDATION Staff requests that the Transportation and Infrastructure (T&I) Subcommittee recommend City Council approval to submit a request for a $15 million TIGER grant for Phase II of the Grand Canalscape project.

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CITY COUNCIL REPORT


THRU: Maria Hyatt Public Transit Director

FROM: Albert Santana Light Rail Project Administrator

SUBJECT: WEST PHOENIX/CENTRAL GLENDALE TRANSIT CORRIDOR STUDY AND NORTHEAST CORRIDOR FEASIBILITY STUDY

This report provides the Transportation and Infrastructure Subcommittee with an update on the West Phoenix/Central Glendale Transit Corridor Study and the Northeast Corridor Feasibility Study. THE ISSUE West Phoenix/Central Glendale Transit Corridor Study The Regional Transportation Plan identifies an approximately five-mile east/west high capacity transit corridor between 19th Avenue and downtown Glendale. In March 2013, Valley Metro initiated a study for this corridor to work with the City of Phoenix, the City of Glendale and the community to determine what route and type of transit is best. The current study area is bounded by 19th Avenue to the east, 67th Avenue on the west, Northern Avenue on the north, and Camelback Road on the south. The study area encompasses key transportation corridors and activity centers, such as Grand Canyon University and downtown Glendale. There are three levels of study analysis. Levels 1 and 2 have been completed, and Level 3 is currently in progress. Each level has different criteria, looking at fewer route options and transit modes in more detail over time. The first two levels of analysis identified six route alternatives for evaluation and considered three types of transit: light rail, bus rapid transit and streetcar. After completing the first two levels, several route alternatives were removed from further consideration: Northern Avenue, Bethany Home, and the full Grand Avenue routes (see map A). This determination was based on public input, lower potential for economic development and community impacts. The remaining alternatives would serve higher densities of population, employment, and activity centers. The analysis identified light rail and bus rapid transit as the best options for continued study, while the streetcar transit option has been removed from further consideration. Level 3 analysis will evaluate the remaining routes (see map A):

• Glendale Avenue

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• Camelback Road/43rd Avenue • Camelback Road/Grand Avenue/51st Avenue

And the remaining types of transit: • Light rail • Bus rapid transit

This final stage of analysis includes evaluating ridership potential, detailed right-of-way and traffic impacts and detailed cost estimates. More focused analysis of the Downtown Glendale Analysis Area (see map A) will be included in the Level 3 evaluation. Community outreach has been conducted throughout the study to collect public input on the proposed routes and types of transit, including 69 different stakeholder outreach activities, as well as ongoing opportunities to provide written input. Next Steps The Level 3 analysis is underway and community input will continue throughout the process with the next round of public meetings beginning this summer. At the conclusion of the study, staff will seek City Council approval of a preferred alternative to proceed into the design and environmental analysis phase. Operation for this corridor is scheduled for 2026. Northeast Corridor Feasibility Study The Regional Transportation Plan identifies a Northeast high-capacity transit corridor, connecting the existing light rail system to the Paradise Valley Mall area (see map B). Under the current corridor planning schedule, the Northeast high-capacity transit corridor would open in 2034. Next Steps The planning study will further refine the high-capacity transit options by assessing route alternatives and types of transit to best connect the existing light rail system with the Paradise Valley Mall area. The study will begin summer 2015. RECOMMENDATION This report is for information and discussion.

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Map A – West Phoenix/Central Glendale Level 3 Route Alternatives and Alternatives Removed from Consideration

Map B – Northeast Transit Corridor Study Area

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CITY COUNCIL REPORT


FROM: Ray Dovalina, Jr., PE Street Transportation Director

SUBJECT: ACCESSIBLE PARKING METER SPACES IN DOWNTOWN

This report provides the Transportation and Infrastructure Subcommittee with an update on accessible parking meters in downtown Phoenix as well as steps the City is taking to enhance accessibility for vehicles displaying a disability insignia or license plate. THE ISSUE Currently, the Street Transportation Department provides 44 accessible on-street metered spaces in the downtown area (see Attachment A), representing about three percent of the total metered spaces in these areas. Rules that govern accessible parking include the Americans with Disabilities Act (ADA) standards as well as the Public Rights of Way Guidelines (PROWAG). However, current standards do not specifically address minimum quantities or percentages for on-street spaces. In consultation with the Equal Opportunity Department’s ADA Coordinator, the Street Transportation Department will implement a plan to address accessible parking within the downtown area, as shown below:

Phase Action Anticipated Completion

1 Review ADA parking policies in peer cities Aug 2015

2 Develop an Accessibility Operation Guide for metered spaces in conjunction with the City’s ADA Coordinator and the Mayor’s Commission on Disability Issues

Dec 2015

3 Evaluate need for new accessible meter spaces Jan 2016

4 Evaluate all existing accessible spaces for conformance to current local and national standards

May 2016

5 Develop priority listing for each space based on level of compliance, costs and demand

Aug 2016

6 Implement construction, signing and pavement marking changes, as necessary

Aug 2018

Continue to work with individual businesses and customers to install/modify accessible spaces where a specific need exists ongoing

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OTHER INFORMATION Although downtown has a sufficient number of accessible metered spaces and the City receives very few complaints, there is a perceived lack of accessible spaces in the downtown area north of Van Buren Street. Much of the on-street parking north of Van Buren Street is free, with a few meters scattered throughout the area. As this area continues to develop and more meters are added, a proportionate number of new accessible parking spaces will be installed over time. All designated accessible parking meters were previously shortened to meet the ADA-required height of 48 inches from the ground to the display screen. The Street Transportation Department, along with the City’s ADA Coordinator, will evaluate the potential need for reducing the height of all parking meters to 48 inches, regardless of their designation as accessible. Existing accessible metered space guidelines are as follows:

• Standardized length of 22'-0" minimum (parallel spaces)

• Standardized length of 18’-0” minimum (angled spaces)

• Standardized width of 8’ minimum

• Standard access aisle (striped) or clear area to the right side of the space a minimum 5’ and the total length of the space

• The entire space, especially the access aisle or clear area, should be less than a 2% slope in any direction

• The sign should be mounted at 60" minimum to the bottom of the sign

• The meter display shall be no more than 48" above the ground level to the top of the unit

• The curb and space striping should be painted ADA Blue

• The curb height should not be greater than 8"

• All accessible parking should be on a right side of the street/curb, unless other options are not available

• All surfaces should be clear of debris, non-slip, and stable

The Street Transportation Department has traditionally used the standard International Symbol of Access (ISA). Since the City Council has adopted the new modified ISA, the department will install new stencils and signs when they fade, are damaged, or otherwise need to be replaced. Symbols are illustrated in Attachment B. Phoenix City Code 36-154 allows one free hour of parking for customers displaying a State “disabled parking” insignia or plate at a meter. RECOMMENDATION This report is for information and discuss

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CITY COUNCIL REPORT


FROM: Maria Hyatt Public Transit Director

SUBJECT:

OCTOBER 2015 PROPOSED BUS SERVICE CHANGES – PUBLIC OUTREACH

This report provides information to the Transportation and Infrastructure (T&I) Subcommittee on proposed bus service changes for October 2015 and the associated public outreach process. THE ISSUE The Public Transit Department is focused on improving the efficiency of Phoenix’s transit services to best serve passengers’ needs. The Department regularly receives passenger input and reviews routes semi-annually to determine if improvements can be made while at the same time offsetting the costs of enhancing transit services. The proposed October 2015 bus service changes are funded through Transit 2000, the dedicated Phoenix transit tax, and Proposition 400, the regional transportation tax. A public outreach process for the proposed changes will be conducted. The proposed October 2015 bus service changes are as follows: Route 19C (19th Avenue Connector), Route 19 (19th Avenue), and Route 60 (Bethany Home Road) In January 2013, the 19th Avenue Connector (19C) service was implemented to provide a connection between Christown Spectrum and Metrocenter malls during the construction of the Northwest Extension of light rail. The service runs from the 19th Avenue and Montebello Transit Center, along 19th Avenue to Dunlap Avenue, and continues to the Metrocenter Mall Transit Center. At the same time, Route 19 has been detoured in the light rail construction corridor using 7th Avenue between Bethany Home Road and Dunlap Road. Route 60 is detoured from its regular route to avoid the construction corridor and still provide service to the 19th Avenue and Montebello Avenue Transit Center. During previous public outreach processes, these changes were conveyed as being temporary during light rail construction. Light rail construction has progressed to the stage where regular bus service can soon return to the Northwest Extension corridor. It is proposed to eliminate the Route 19C and restore Routes 19 and 60 to their original routes. New Desert Sky Transit Center The construction of the new Desert Sky Transit Center is on schedule. It will be located at the southeast corner of 79th Avenue and Thomas Road, at the northwest corner of Desert Sky Mall. With the construction completion scheduled for October 2015, Routes

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29, 75, 83, MARY, I-10West RAPID, and the Ajo/Gila Bend Rural Connector may see minor schedule adjustments to reflect the new location of the transit center. Relocating these routes to the new facility provides for improved connectivity, larger passenger waiting areas, and utilization of the new center’s amenities including public restrooms, bicycle lockers/racks, and covered parking areas. Route 50 (Camelback Road) At the request of the City of Scottsdale, staff is working on terminating Route 50 at Scottsdale Road and Camelback Road as a result of Scottsdale’s plan to implement a trolley to provide service from Scottsdale Road to Scottsdale Community College along Camelback Road. As part of Scottsdale’s request, they are proposing to increase and fund the frequency of bus service from 44th Street to Scottsdale Road. There will be no cost increase for the City of Phoenix related to this request. The City of Scottsdale and Valley Metro will conduct public outreach related to this change. Schedule Adjustments and Additional Trips to Numerous Routes Staff will be making schedule adjustments and adding select trips during the peak service times and at the end of the day to facilitate more effective service. The routes identified for potential adjustments include: 3, 7, 8, 17, 19, 27, 29, 35, 41, 50, 60, 106, and Grand Avenue Limited. OTHER INFORMATION The Public Transit Department will use the locally adopted public outreach process for the proposed October 2015 bus service changes. In May, staff will solicit public comment on service changes through several public outreach events located near the proposed service change areas in coordination with other regional proposed service changes. Outreach will include on-board bus announcements and multiple opportunities for passengers to provide their feedback on the proposed changes, as well as in-person discussions with passengers at affected areas and notices on the Valley Metro website. In addition, a formal public hearing will be scheduled to collect public input and feedback on the proposed service changes. Advertisements for the public meetings will be placed in local newspapers, information will be posted to the department and regional transit websites, and staff will send media releases and contact local reporters. After the conclusion of the public outreach process, the Public Transit Department will return to the T&I Subcommittee with a formal recommendation on these proposed bus service changes. RECOMMENDATION This report is provided for information only.

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