§ 19-4. License application.

(a)

Any telecommunications provider desiring a license or franchise under this chapter to construct, install, operate and maintain telecommunications facilities in streets and other highways of the town shall file an application with the town manager requesting at the applicant's election either a franchise or license, in the form prescribed by the town, and shall pay an application fee of $2,500.00 payable in cash, certified or cashier's check, wire transfer, or in any other manner acceptable to the manager, made payable to the town. No application shall be considered without receipt of said fee. The applicant shall be responsible for reimbursing the town's full reasonable costs in excess of the application, including, in the case of an application for a franchise, costs of an election. The application fee is in addition to any permit fees established pursuant to section 10-5 of this Code.

(b)

Each application shall, at a minimum, (1) show where the facilities the applicant will use will be located, or contain such other information as the town may deem necessary in order to ensure that the applicant will comply with requirements for use of the highways; (2) identify the applicant, its name, address and telephone number; (3) contain a description of the services to be provided; and (4) set out a description of any agreement with any other entity that would permit such entity to use the facilities.

(c)

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

(d)

As a condition of issuing or renewing a license or franchise to use the public highways to, construct, install, operate and maintain telecommunications facilities, the town may require:

(1)

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

(2)

The applicant to agree to comply with highway use requirements that the town may establish from time to time;

(3)

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

(4)

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

(5)

The applicant to agree to comply with and be bound by the administrative and enforcement provisions as may be prescribed from time to time by the town;

(e)

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

(1)

Franchises and licenses shall be personal to the franchisee or licensee. Except as provided in the license or franchise, no transfer of a franchise, franchisee, license or licensee, or change of control over the same (including, but not limited to, transfer by forced or voluntary sale, merger, consolidation, receivership, or any other means) shall occur unless prior application is made to the town and the town's prior written consent is obtained, which consent will not be unreasonably withheld or delayed. In making a determination as to whether to approve a transfer the town may consider the same information and qualifications required of an original application for a license or franchise; whether the licensee or franchisee is in compliance with its license or franchise and this chapter and, if not, the proposed transferee's commitment to cure such noncompliance; whether the transfer would result in an evasion of other applicable provisions of law, or impair lawful contracts; and the effect of the transfer on the town's interest. No application for a transfer of a license or franchise shall be granted unless the proposed transferee agrees in writing that it will abide by and accept all terms of the chapter and the license or franchise, and that it will assume all obligations, liabilities, and responsibility for all acts and omissions, known and unknown, of the previous licensee or franchisee under this chapter and the license or franchise for all purposes, including renewal. Approval by the town of a transfer of a license or franchise does not constitute a waiver or release of any of the rights of the town under this chapter or the franchise or license, whether arising before or after the date of the transfer.

(2)

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

(3)

Every franchise or license shall be subject to revocation if the franchisee or licensee fails to comply with the material terms and conditions of the license or franchise, or applicable law. Provided, however, that a franchise or license shall not be revoked unless the franchisee or licensee is given written notice of the defect in performance, and fails to cure the performance within 60 days of the notice, except where the town finds that the defect in performance is due to intentional misconduct, is a violation of criminal law, or is part of a pattern of violations where the franchisee or licensee has already had notice and opportunity to cure. A hearing shall be held before a license is revoked if the licensee requests a hearing.

(4)

Penalties for violation of franchise or license.

(5)

Damages for violation of the franchise or license terms. Any remedies available to the town are cumulative, and are not limited by the recovery of any amounts pursuant to the insurance provisions of the license or franchise, or pursuant to any indemnity clause.

(6)

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

(7)

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

(f)

A licensee that receives a telecommunications service license pursuant to this chapter may apply for a renewal of its license, which renewal shall be reviewed in accordance with the requirement of state law.

(g)

The issuance of a license, permit or other authorization by the town is not a representation or warranty that such license, permit, or authorization is a legally sufficient substitute for a franchise, and it not a representation or warranty that a franchise is not required.

(h)

Any license granted by the town pursuant to this chapter shall commence upon adoption of the license and acceptance of the license by the provider within 30 days of the grant. The license shall be effective for a period of five years, and subject to the conditions and restrictions provided in the instrument and this chapter.

(Ord. No. 1136, § I, 12-8-98; Ord. No. 1181, § I, 7-6-99; Ord. No. 1380, § I, 1-8-02; Ord. No. 2523, § I , 2-19-15)