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HomeMy WebLinkAbout2019.1203.TCRMWS.Packet            NOTICE OF MEETING COMBINED REGULAR MEETING AND WORK SESSION FOUNTAIN HILLS TOWN COUNCIL      Mayor Ginny Dickey  Vice Mayor Sherry Leckrone Councilmember Dennis Brown Councilmember Alan Magazine Councilmember Mike Scharnow Councilmember David Spelich Councilmember Art Tolis      TIME:5:30 P.M. – COMBINED REGULAR MEETING AND WORK SESSION WHEN:TUESDAY, DECEMBER 3, 2019 WHERE:FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting. Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived.    REQUEST TO COMMENT   The public is welcome to participate in Council meetings. TO SPEAK TO AN AGENDA ITEM , please complete a Request to Comment card, located in the back of the Council Chambers, and hand it to the Town Clerk prior to discussion of that item, if possible. Include the agenda item on which you wish to comment. Speakers will be allowed three contiguous minutes to address the Council. Verbal comments should be directed through the Presiding Officer and not to individual Councilmembers. TO COMMENT ON AN AGENDA ITEM IN WRITING ONLY, please complete a Request to Comment card, indicating it is a written comment, and check the box on whether you are FOR or AGAINST and agenda item, and hand it to the Town Clerk prior to discussion, if possible.   REGULAR MEETING    REGULAR MEETING NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).             1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Ginny Dickey     2.MOMENT OF SILENCE     3.ROLL CALL – Mayor Dickey     4.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     A.PROCLAMATION - Declaring December 5, 2019, through December 15, 2020, as Fountain Hills Celebrates     5.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS     A.PRESENTATION - Monthly update by Captain Larry Kratzer of the Maricopa County Sheriff's Office     6.CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda.     7.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda.     A.CONSIDERATION OF approving the meeting minutes of the Special Meeting of October 30, 2019; the Special Meeting of November 5, 2019; the Combined Regular Meeting and Work Session of November 5, 2019; and the Regular Meeting of November 19, 2019.      Town Council Regular Meeting of December 3, 2019 2 of 4     B.CONSIDERATION OF adopting Resolution 2019-54, abandonment of the 10' Public Utility and Drainage Easement at the rear of Plat 603-C, Block 5, Lot 21. (EA 2019-18)     C.CONSIDERATION OF Resolution 2019-58 declaring as a Public Record that certain document filed with the Town Clerk and entitled "2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code"; and Ordinance 19-18, adopting the "2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code" by reference.     8.REGULAR AGENDA     A.CONSIDERATION OF appointment to the Board of Adjustment.    B.PUBLIC HEARING AND CONSIDERATION OF adopting Ordinance#19-16, a text amendment to the Town of Fountain Hills Zoning Ordinance, Chapter 6, Sign Regulations, Sections 6.08 Zoning Districts Table, 6.08. M. and 6.08. Q. The amendments update the Zoning Districts Table with the new language, replace the existing language in Section 6.08 M. regarding Garage Sale Signs with new provisions for Residential Directory Signs and eliminate Section 6.08. Q. regarding Open House Signs.(Case #Z2019-06)      C.CONSIDERATION OF a Cooperative Purchasing Agreement #2020-045 with Stabilizer Solutions, Inc.     D.CONSIDERATION OF approving the Town Council Meeting Dates and Summer Break for 2020.    E.CONSIDERATION AND POSSIBLE DIRECTION to staff regarding the requirements for providing hillside protection easements, the abandonment of existing easements, and the fee for easement abandonments.     F.DISCUSSION AND DIRECTION on calling a Special Election in May 2020 or as part of the Primary Election in August 2020 for the Daybreak development referenda questions.      9.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council.     10.ADJOURNMENT            Town Council Regular Meeting of December 3, 2019 3 of 4   Town Council Regular Meeting of December 3, 2019 4 of 4 WORK SESSION Pursuant to the Council's Rules of Procedure, no public comment is taken at work sessions. Work sessions are held for the purpose of presentations and discussions on such issues that require more in-depth consideration of the Council. 1. CALL TO ORDER 2. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding the establishment of pavement condition standards to be used in developing a 10-year Pavement Management Program. 3. ADJOURNMENT CERTIFICATE OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted in accordance with the statement filed by the Town Council with the Town Clerk. Dated this,A , day of Pi nA4.MA- ,12.019. C�- Elizabeth A. , MMC,Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities.Please call 480-816-5199(voice)or 1-800-367-8939(TDD)48 hours prior to the meeting to request a reasonable accommodation to participate in the meeting or to obtain agenda information in large print format.Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk's Office. ITEM 4. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Reports Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Executive Assistant to Manager, Mayor/Council Staff Contact Information: Angela Padgett-Espiritu, Executive Assistant to Manager, Mayor/Council REPORTS (Agenda Language):  PROCLAMATION - Declaring December 5, 2019, through December 15, 2020, as Fountain Hills Celebrates Staff Summary (Background) Mayor Dickey will be proclaiming December 5, 2019 through December 15, 2020,  as Fountain Hills Celebrates. Attachments Proclamation  Form Review Inbox Reviewed By Date Finance Director David Pock 11/19/2019 03:11 PM Town Attorney Aaron D. Arnson 11/21/2019 06:47 AM Town Manager Grady E. Miller 11/21/2019 08:19 AM Form Started By: Angela Padgett-Espiritu Started On: 11/19/2019 02:31 PM Final Approval Date: 11/21/2019  ITEM 7. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving the meeting minutes of the Special Meeting of October 30, 2019; the Special Meeting of November 5, 2019; the Combined Regular Meeting and Work Session of November 5, 2019; and the Regular Meeting of November 19, 2019. Staff Summary (Background) The intent of approving meeting minutes is to ensure an accurate account of the discussion and action that took place at the meeting for archival purposes. Approved minutes are placed on the Town's website and maintained as permanent records in compliance with state law. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approving the minutes of the Special Meeting of October 30, 2019; the Special Meeting of November 5, 2019; the Combined Regular Meeting and Work Session of November 5, 2019; and the Regular Meeting of November 19, 2019. SUGGESTED MOTION MOVE to approve the minutes of the Special Meeting of October 30, 2019; the Special Meeting of November 5, 2019; the Combined Regular Meeting and Work Session of November 5, 2019; and the Regular Meeting of November 19, 2019. Attachments 2019.1030.TCSM.Minutes  2019.1105.TCSM.Minutes  2019.1105.TCRMWS.Minutes  2019.1119.TCRM.Minutes  Form Review Inbox Reviewed By Date Town Manager Grady E. Miller 11/25/2019 08:45 AM Finance Director David Pock 11/25/2019 08:46 AM Town Attorney Elizabeth A. Burke 11/25/2019 09:17 AM Town Manager Elizabeth A. Burke 11/25/2019 09:17 AM Form Started By: Elizabeth A. Burke Started On: 11/25/2019 06:31 AM Final Approval Date: 11/25/2019   TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL OCTOBER 30, 2019   1.CALL TO ORDER – Mayor Ginny Dickey    Mayor Dickey called the Special Meeting of the Fountain Hills Town Council held October 30, 2019, to order at 6:00 p.m.   2.ROLL CALL – Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone; Councilmember Mike Scharnow; Councilmember Art Tolis; Councilmember Dennis Brown (telephonically); Councilmember Alan Magazine; Councilmember David Spelich  Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Development Services Director John Wesley; Town Clerk Elizabeth A. Burke  3.RECESS INTO EXECUTIVE SESSION    MOVED BY Councilmember Art Tolis, SECONDED BY Vice Mayor Sherry Leckrone to recess into Executive Session.   Vote: 7 - 0 Passed - Unanimously   4.EXECUTIVE SESSION   A.Discussion or consultation for legal advice with the attorney or attorneys of the public body, pursuant to A.R.S. §38-431.03(A)(3); and discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, pursuant to A.R.S. §38-431.03(A)(4).   i.Daybreak Development Agreement   5.ADJOURNMENT    The Fountain Hills Town Council reconvened into Open Session at 7:06 p.m. at which time the Special Meeting of October 30, 2019, adjourned.                                                                                                   TOWN OF FOUNTAIN HILLS                                                                                               _____________________________________                                                                                                Ginny Dickey, Mayor ATTEST: ____________________________________  Elizabeth A. Burke, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL NOVEMBER 5, 2019     1.CALL TO ORDER – Mayor Ginny Dickey    Mayor Dickey called the Special Meeting of November 5, 2019, to order at 4:05 p.m.   2.ROLL CALL – Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone (telephonically); Councilmember Mike Scharnow; Councilmember Art Tolis; Councilmember Dennis Brown; Councilmember Alan Magazine; Councilmember David Spelich  Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Elizabeth A. Burke  3.RECESS INTO EXECUTIVE SESSION    MOVED BY Councilmember Mike Scharnow, SECONDED BY Councilmember Alan Magazine to recess into Executive Session.   Vote: 7 - 0 Passed - Unanimously   4.EXECUTIVE SESSION    The Fountain Hills Town Council recessed into Executive Session at 4:05 p.m.   A.Discussion or consultation for legal advice with the attorney or attorneys of the public body; and discussions or consultations with designated representatives of the public body in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property, pursuant to A.R.S. §38 431.03(A)(3) and (7), respectively.    i.Disposition of Fire Station #2   B.Discussion or consultation for legal advice with the attorney or attorneys of the public body; and pursuant to and discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, pursuant to A.R.S. §38-431.03(A)(3) and §38-431.03(A)(4), respectively.   i.Daybreak Development Agreement                  5.ADJOURNMENT    The Fountain Hills Town Council reconvened into Open Session at 5:11 p.m. at which time the Special Meeting held November 5, 2019, adjourned.                                                                                                   TOWN OF FOUNTAIN HILLS                                                                                               _____________________________________                                                                                                Ginny Dickey, Mayor ATTEST: ____________________________________  Elizabeth A. Burke, Town Clerk    Town Council Special Meeting of November 5, 2019 Page 2 TOWN OF FOUNTAIN HILLS MINUTES OF THE COMBINED REGULAR MEETING/WORK SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL NOVEMBER 5, 2019                  1.CALL TO ORDER, PRESENTATION OF COLORS BY THE AMERICAN LEGION POST 58 COLOR GUARD, AND THE PLEDGE OF ALLEGIANCE – Mayor Ginny Dickey    Mayor Dickey called the meeting of November 5, 2019, to order at 5:30 p.m. She reminded everyone that Item 8-B of the Regular Agenda had been removed from the agenda as noted online. Members of the American Legion Post 58 Color Guard presented the colors and Mayor Dickey led the Council and audience in the Pledge of Allegiance.   2.INVOCATION - Mojgan Talaei of the Baha'i Community    Serene Caldwell of the Baha'i Community gave the invocation.   3.ROLL CALL – Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone; Councilmember Mike Scharnow; Councilmember Art Tolis; Councilmember Dennis Brown; Councilmember Alan Magazine; Councilmember David Spelich Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Elizabeth A. Burke 4.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER    Town Manager Grady Miller reported that on October 24, 2019, there was a fire at the landfill owned by the Salt River Pima Maricopa Indian Community and the recycling facility was destroyed. He was notified Friday morning that there would be an issue with the Town's recycling. However, he was contacted by the Republic Services Governmental Relations Director and they have found another alternative. Since that time they have worked out longer and more permanent arrangements. Councilmember Scharnow reported that he and the Mayor attended a conference, "Never Too Old," put together by the Maricopa Association of Governments and Arizona Public Health Association. He said that it focused on how communities and the state can more clearly coordinate and better accommodate aging issues. He said that he learned a lot and there are some potential grants they may be looking at. He reported that he also attended the Valley Metro Board Meeting, and they are already prepping for Super Bowl 2023. Additionally, he attended a staff meeting with Metro to discuss the feasibility study being prepared for Fountain Hills. Vice Mayor Leckrone said that she and the Mayor attended the United Women Breakfast, a segment of United Way, where the Mayor represented Fountain Hills as part of a panel with other mayors from around the Valley. Mayor Dickey reported that the first meeting of the Mayor's Youth Advisory Commission had been held. She also reported that MAG is all about Proposition 400, and they will be addressing it further in the coming year. She thanked everyone for their work on the Make a Difference Day as well as the Halloween on the Avenue. She also reported that she had been part of Brian to Business Radio Show yesterday where they talked about Copperwynd with Betsy from the Chamber.   A.PROCLAMATION - November 11, 2019, as Veterans Day       Councilmember Spelich read the proclamation proclaiming November 11, 2019, as Veterans Day and presented it to representatives of the American Legion.   B.PROCLAMATION November as Butterfly, Pollinator & Wildlife Month       Mayor Dickey read the proclamation and presented it to representatives of an organization who reported they just received a grant to plant trees throughout the community. They would like to plant one at Town Hall in honor of past, present and future mayors and another for past, present and future councilmembers. She said that on November 14, 2019, from 4 - 6 p.m. there will be a Butterfly Social at the River of Time Museum which is free and welcome to everyone. They are also trying to get a license plate to save the monarchs.   C.PROCLAMATION November 30, 2019, as Small Business Saturday       Mayor Dickey read the proclamation and presented it to James Smith, the Town's Economic Development Director, who noted that the Town and businesses are really dependent on residents shopping locally.   5.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS   A.PRESENTATION by Captain Larry Kratzer, MCSO, with monthly update    Captain Kratzer gave a monthly update on activities in Town. He cautioned residents to protect themselves from being scammed. There have been some fraudulent schemes taking place and Fountain Hills Times has helped them with putting out some public service announcements to remind people to be leery, especially of unsolicited phone calls. He said that they continue to see a few vehicle burglaries, but it is normally with vehicles that are unlocked. It is very rare to see forced entry. He said that it is the holiday season and these types of crimes increase. He wanted to remind everyone to lock their vehicles and keep valuables out of site. Also, he said that it is a heightened time for package thefts. He reported that MCSO continues to step up traffic enforcement. Since January of this year, they have increased their stops over 500%. He said that they had Coffee with a Cop on October 5, 2019, at Starbucks, Halloween on the Avenue, a Red Ribbon Day at the Middle School, and they participated in the Make a Difference Day. Upcoming events include Sheriff Penzone visiting on November 18, 2019, at 6:00 p.m. at the Community Center, and they will also be participating in the final day of the Fountain Hills Leadership Academy on Thursday. Councilmember Spelich said that their thoughts and prayers were with the officers seriously injured yesterday and they wished them a speedy recovery. Regular Meeting/Work Session of November 5, 2019 2 of 10 He also stated that during Town Talk, he asked Sergeant Lawson about speeding violations, as the Council has received a constant flow of e-mails and public comments about it. He said that he was shocked to hear that one deputy, in one month, wrote 193 citations. He said that is a staggering amount of stops. He said that people were caught on warrant arrests and narcotics, and he thanked them for the increased efforts. Councilmember Magazine said that he has noticed a lot more speeders being pulled over and he appreciated it. He said that the law enforcement officers do so much for the community, being involved in Make a Difference Day, etc. and he thanked the Captain for his leadership. Councilmember Scharnow asked how the Service Aides were working out. Captain Kratzer replied that currently the Town is not being charged and he is not sure what the future holds, but currently the program has been a huge success as it allows them to keep officers on patrol. He said that they also help with follow up on obtaining suspect information for insurance purposes and allows that deputy to free up for other activities. Mayor Dickey noted that they also appreciate their presence on the campuses.   B.PRESENTATION of Update by Pedestrian and Traffic Safety Subcommittee    Public Works Director Justin Weldy gave an update of the Pedestrian and Traffic Safety Subcommittee through the following PowerPoint (Exhibit A attached hereto and made a part hereof): INTERSECTION AND PEDESTRIAN SAFETY IMPROVEMENT BACKGROUND PAST IMPROVEMENTS RECENT IMPROVEMENTS IMPROVEMENTS UNDERWAY TOWNWIDE SIDEWALK INFILL PROGRAM OTHER PROPOSED ENFORCEMENT IMPROVEMENTS RECOMMENDATIONS Mayor Dickey said that they also talked about a zero-tolerance for speeding and see how that was accepted. They also talked about cameras on Palisades with the right turns on red. She said that they appreciate the citizen input and hearing about other areas with trouble. She said that they would like to use something besides just accidents. Councilmember Magazine thanked the members of the committee. He said that it was a lot of work and shows the tremendous progress in what has been done and what they plan to do. He said that they need to make the citizens aware of this as much as possible.   C.PRESENTATION on Temporary Suspension of Recycling Services    Discussed under Reports.   6.CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the Regular Meeting/Work Session of November 5, 2019 3 of 10 matter be placed on a future Council agenda.    Lynn Jaffe, Fountain Hills resident, reported on her artwork being removed at the Community Center and asked that the Council support her First Amendment Right. It was noted that Mr. Arnson and Mr.Miller will address the issue offline.   7.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda.    MOVED BY Councilmember Alan Magazine, SECONDED BY Councilmember Dennis Brown to approve Consent Agenda items 7-A through 7-D.  Vote: 7 - 0 Passed - Unanimously   A.CONSIDERATION OF approval of the minutes of the Joint Meeting with the Fort McDowell Yavapai Nation Tribal Council held October 3, 2019, the Joint Meeting with the Fountain Hills Sanitary District Board held October 9, 2019, the Regular Meeting of October 15, 2019, the Special Meeting (Executive Session) of October 23, 2019, and the Special Meeting of October 23, 2019.      B.CONSIDERATION OF approving a Special Event Liquor License Application for the Elysian Desert Distilleries (Renea McQuiggan) for a fundraiser to be held along the Avenue of the Fountains, in conjunction with the Fountain Hills Art and Wine Affaire, from 10:00 AM to 5:00 PM daily, Friday, March 6 through Sunday, March 8, 2020.      C.CONSIDERATION OF Resolution 2019-49, abandoning whatever right, title, or interest the Town has in a portion of the certain 10' Public Utility Easement and Drainage Easement located at the rear of Lot 26 of Block 2 of Plat 602-B (15933 Lantana), as recorded in Book 166, Page 32, records of Maricopa County, Arizona, with stipulations. (EA 2019-16).      D.CONSIDERATION OF approving the construction of a walking trail within the hillside protection easement on Tract A of CopperWynd - Fountain Hills final plat, located at 13225 N. Eagle Ridge Drive.      8.REGULAR AGENDA   A.CONSIDERATION OF appointing Hayden Arnold to the Community Services Advisory Commission.       MOVED BY Councilmember Alan Magazine, SECONDED BY Vice Mayor Sherry Leckrone to appoint Hayden Arnold to the Community Services Advisory Commission (as the youth representative) with a term expiring June 30, 2020.  Vote: 7 - 0 Passed - Unanimously   B.CONSIDERATION OF Resolution 2019-52 approving a Development Agreement associated    Regular Meeting/Work Session of November 5, 2019 4 of 10 B.CONSIDERATION OF Resolution 2019-52 approving a Development Agreement associated with the Daybreak P.A.D. rezoning located at the northeast corner of Palisades and Shea Boulevards . (DEVELOPMENT AGREEMENT CURRENTLY UNAVAILABLE DUE TO CONTINUING NEGOTIATIONS) THIS ITEM HAS BEEN REMOVED FROM THE AGENDA BY THE MAYOR/11-05-2019      C.CONSIDERATION OF Resolution 2019-53 adopting recommended changes to the Land Use Assumptions and Infrastructure Improvements Plan.       Mr. Miller said that back on September 17 the Council went through the preliminary assumptions and there were a number of items where they made some revisions based on the guidance received. He then introduced Ben Griffin with Tischler Bise. Mr. Griffen reviewed the PowerPoint presentation (Exshibit B attached hereto and made a part hereof) which addressed: OVERVIEW Mr. Miller noted that one of the major assumptions they removed from the Land Use Infrastructure Improvements Plan was the infrastructure associated with the state trust lands because neither staff nor Council believe that it will develop within the next ten years. ELIGIBLE COSTS LAND USE ASSUMPTIONS PARKS AND RECREATION FIRE Councilmember Scharnow asked staff if they believed a third fire station would be needed if the state trust land does not develop. Mr. Miller said that they will not need a third station unless that land develops. Chief Ott said that unless there were other changes by Adero Canyon or if something in Eagles Nest changed, they do not see a need right now. Mr. Griffin noted that these plans are required to be updated every five years, so if in the future they saw something change that warranted the third station, they could add it at that time. ADOPTION TIMELINE    MOVED BY Councilmember Mike Scharnow, SECONDED BY Vice Mayor Sherry Leckrone to adopt Resolution 2019-53.  Vote: 7 - 0 Passed - Unanimously   9.ADJOURNMENT    MOVED BY Councilmember Dennis Brown, SECONDED BY Councilmember Mike Scharnow to adjourn the Regular Meeting.  Vote: 7 - 0 Passed - Unanimously    The Regular Meeting of the Fountain Hills Town Council held November 5, 2019, adjourned at 6:48 p.m. A break was taken from 6:48 p.m. to 6:56 p.m. at which time the Work Session began.   WORK SESSION Regular Meeting/Work Session of November 5, 2019 5 of 10 WORK SESSION Pursuant to the Council's Rules of Procedure, no public comment is taken at work sessions. Work sessions are held for the purpose of presentations and discussions on such issues that require more in-depth consideration of the Council.   1.CALL TO ORDER    Mayor Dickey called the Work Session of November 5, 2019, to order at 6:56 p.m.   2.DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding an update to the Economic Development Plan.       Economic Development Director James Smith introduced himself as well as his staff--Jodi James, the new Economic Development Analyst, and Grace Rodman-Guetter with Tourism. He then began a PowerPoint presentation, Exhibit C attached hereto and made a part hereof. WHAT IS ECONOMIC DEVELOPMENT? Mr. Smith congratulated Betsy LaVoie, noting that they were excited for her in her new role as Director of the Chamber of Commerce, and that she has been a great advocate for the Town. THEMES INFLUENCING THE PLAN OPEN FOR BUSINESS TRENDS AFFECTING FOUNTAIN HILLS REGIONAL TRENDS CURRENT MARKET ASSESSMENT EXISTING PROJECTS/OPPORTUNITIES ECONOMIC DEVELOPMENT FOCUS BUSINESS ATTRACTION EFFORTS STRATEGIES BUSINESS RETENTION & EXPANSION ENTREPRENEURIAL DEVELOPMENT TOURISM MARKETING/BRANDING Vice Mayor Leckrone asked how the Greater Phoenix Economic Council (GPEC) notifies the Town of opportunities. Mr. Smith said that they send notice to all of the member communities and each community has the opportunity to respond. He said that sometimes the Town does not have the required real estate. Councilmember Magazine thanked Mr. Smith and his staff, especially for their help given to the Dark Sky Discovery Center and communication with Arizona State University. He said that they just had an interesting presentation on Pedestrian Safety and it, as well as news on economic development efforts, need to be conveyed more to the residents. Mr. Smith said that he will work with staff to use the tools they have available. He said that one tool they have been remiss in not using more is social media. Councilmember Magazine asked Mr. Smith if he has looked at the history of GPEC in terms of numbers and types of companies they have actually looked into and have come to Town. He said that a few years ago they talked about whether to fund the membership and he would like Regular Meeting/Work Session of November 5, 2019 6 of 10 to get a sense of whether it really is worth the money. Mr. Smith said that he has not specifically looked at it, but overall GPEC has brought 5,000 jobs into the region. Councilmember Magazine said that the Town hired a consultant to take a look at their commercial needs and how to attract more business, and asked what had become of that. Mr. Miller said they had a three-year commitment with a consultant looking at retail strategies, on which he believed the Council had received a report. Mr. Miller said that one of the benefits from GPEC is that each year their staff attends large conferences where they try and match up communities with retailers or restaurants that fit the Town's profile. Councilmember Tolis said that he was against that study, and this discussion reminds him of Groundhog Day. He said that he feels like they are talking about the same things, potential strategies, targets, etc. over and over. He said that from his perspective economic development should be focusing on filling vacancies in the downtown area as it is an important component. He said that they should be making sure he and his staff are liaisons between the successful businesses and the Town. Councilmember Tolis said that he is a little confused as he recalls Grace and Rachael winning awards for video productions and social outreach in the past years. He said that he told Mr. Smith in their one-on-one that he should be the Town's cheerleader, attending those events that are bringing people to Town. He said that he does not want a Home Depot; the Town has Paul's Ace Hardware. If they brought in a business that will compete it would hurt the local business owners rather than help them. Mr. Smith said that he was not insinuating that they should bring in a Home Depot, it is just that where a lot of their home improvement dollars are going. And, when he commented on lacking with social media, he was talking more from the economic development standpoint, not tourism. Councilmember Brown said that he has heard these plans several times. He said that Fountain Hills is not open for business; they run more people out of town. He said that Mr. Smith has some hurdles. He said that they need to look at each of those items and determine if it is something that the Town can or cannot do. Councilmember Magazine said that he has been hearing for the last five years they need more young people in town, but until they solve the housing problem, it is not going to happen. It is a wish that is not going to happen. Mr. Miller said that he thought they had heard good comments from Council. They are going to be working with the realty community. Part of the issue is getting the word out about the great schools. He said that Mr. Smith has already made some connections with the real estate community.    Mayor Dickey said that the idea of getting in front of people and assessing what they get, she was thinking about that when she went to Calgary. The fact is that the discussions they had there and connections made with going to GPEC and meeting with county supervisors, it is about relationship building. There is not an immediate result. She said that she has talked with people from Canada and Colorado who knows about Sunridge and the courses, but did not know it was in Fountain Hills. The education piece is huge and partnership with the schools is important. Mayor Dickey said that there are some things they will not be able to compete with, but she Regular Meeting/Work Session of November 5, 2019 7 of 10 Mayor Dickey said that there are some things they will not be able to compete with, but she does not feel they are closed to business. She does not think they are setting up stumbling blocks and if they had sat with the Chamber yesterday and heard about the Copperwynd expansion, there are restaurants and bars coming to Town. There is a lot more happening here than many know. Councilmember Tolis said that it is a beautiful place to live. They should not be ashamed that they have an affluent community. They have been talking about bringing young families; they do not want a school district with declining enrollment. He has said it for a long time--until the downtown has the amenities that will be balanced with older and younger, they will not see growth. Councilmember Scharnow said that he has been working here since the early 1980's and has been hearing these goals for decades. He said that they can say they have heard it all before, but he has also heard of programs expanding and new things coming in. He said that he does not have ten more recommendations to add; these are the experts in the field and he would say, "carry on." He said that the Town is aging and the planning concepts of the 60's and 70's were applied. He said that the streets are way too wide, and that costs more to maintain. People do not always appreciate the obstacles. Discussion was held on the average income in Town. Councilmember Tolis said that it is $72,000; the average median nationally is $53,482. Councilmember Brown said that he just thinks they need a realistic plan. He has some ideas and he would be glad to sit down and go through them.   3.DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding proposed updates to the Public Art Guidelines.       Community Services Director Rachael Goodwin came forward and introduced Dori Wittrig, member of the Public Art Committee and the Fountain Hills Cultural and Civic Association. Ms. Wittrig came forward and said that the program is 25 years old and has a lot of moving pieces. She said that the draft proposal is just that--a draft. She then introduced others that have been involved over the years. She said that last year they had a transition and found the committee in a period of assessment. They needed a clear public art process and systems in place that are understandable to the public and for future public art committees to implement. She said that they did not have that in the old documents. She said that the public art committee is a public/private partnership between the Town and FHCCA. The Master Plan ordinance called for a percentage contribution from local developers. They could either acquire public art and install it on their site, or contribute to the fund to allow for art to be placed elsewhere. She said that currently there is about $87,000 in the fund. At the request of the Public Art Committee, FHCCA paid to hire a consultant to work with them to prepare some recommendations to update the program. What is before the Council is a blending of different documents. Ms. Goodwin distributed a copy of a draft application form to the Council. Ms. Wittrig noted that the plan is they would expect the application to be filled out by everyone who wants to participate in the program. She then reviewed certain aspects of the program, noting on Page 4 that the Town staff would Regular Meeting/Work Session of November 5, 2019 8 of 10 She then reviewed certain aspects of the program, noting on Page 4 that the Town staff would now be a member of the Public Art Committee. She said that there is a stronger requirement for original art and it includes that no water can be involved because it is an ongoing maintenance issue. She said that any art that is placed on a developer's property must be maintained by them. Also, on page 15, Ms. Wittrig referenced the section on desuccessioning a piece of art. They felt it was necessary as pieces become aged beyond the ability to maintain them. She then reviewed a PowerPoint presentation, Exhibit D attached hereto and made a part hereof, which addressed: PUBLIC ART COMMITTEE WORK SESSION CURRENT PUBLIC ART COLLECTION HOW AND WHY DID WE ACQUIRE OUR PUBLIC ART COLLECTION? CURRENT ART ACQUISITION PROCESS CONCERNS THAT HAVE ARISEN WITH THE CURRENT PROCESS PROPOSED CHANGES TO THE POLICY AND PROCEDURES PROPOSED CHANGES TO THE ART AND DONATION PROCEDURE NEXT STEPS: TONIGHT AND MOVING FORWARD Vice Mayor Leckrone commended them on formalizing the program, which has been needed. She asked if applicants will receive a list of the rules so they know what might happen. Ms. Goodwin said that is the intention. They would walk through the entire process with them. Once they get a final draft, that would be part of the application form. Councilmember Spelich said that right now the program takes $39,000 out of the general fund, and he asked what their ideas were for reducing that amount. Ms. Goodwin said that covers the insurance and annual maintenance and cleaning. Their idea would be to create a better funding mechanism by having 5% on top of the donation go back into the fund to help offset those costs. Councilmember Magazine said they have done an excellent job. They addressed all of his concerns and those from whom he has heard. He appreciated the work that went into the draft. He questioned part of the criteria on it having a townwide impact. Ms. Goodwin said that it can be placed on private property, but if it is, it has to be accessible by the public. Discussion was held on sale of pieces that are donated and what happened to that money. Ms. Goodwin said that if they have donated it, the money would go back into the fund. Mr. Miller said that the sale of pieces would be taken very seriously and they would be very selective in doing that, such as if there were sharp edges that may hurt someone. Ms. Wittrig said that what they are proposing are some best practices that they took from other communities. There are a few times when a piece has aged that they may get rid of it, but there is probably no monetary value. Councilmember Brown asked if the organization had an idea of the cap on the funds required from a development. He said that when this was first presented, it was to be 1% of the price of the permit, not 1% of the price of the project. For more than ten years no one really complained about it. But, when they get into larger projects, such as Daybreak, with a professed construction value around $60 million, that is a $600,000 figure, which seems unreasonable. Ms. Wittrig said that she agreed that the value should be based on the permit. She had a conversation with Bill Hynes of Copperwynd about this topic. She said that they made a Regular Meeting/Work Session of November 5, 2019 9 of 10 beautiful presentation with a functional piece of art. Bill said that they did not mind the cost. Other communities require it. He like contributing and appreciated the cooperation received with the committee. Brief discussion was held on possibly a sliding scale. Ms. Wittrig asked Councilmember Brown to work with her on this issue further. Councilmember Scharnow said that he liked the idea of a sliding scale. He asked if in their research they found that it was normally a public/private arrangement. Ms. Wittrig said that there are not too many communities their size that have this. In other communities she got a sense that it is a commission. She said that they discussed that issue and believe they have a good relationship right now with the way it is functioning. Ms. Goodwin said that between the application and staff involvement, she believed the entire process will be much tighter. It is treated as a commission, with a staff liaison and direction from Council, but they have more flexibility with their current structure. Mr. Miller said that most of these municipal public programs are a Council-appointed advisory board. This arrangement is very unique and what is great is that a Town would never been able to seek funding for people donating to specific art pieces or those that have significant valued personal collections. Further discussion was held on the use of the available funds. Ms. Goodwin said that the prior group believed that the money could only be used for acquisition of art, but the new leadership agreed that it should also be used toward insurance and maintenance.   4.ADJOURNMENT    MOVED BY Councilmember Dennis Brown, SECONDED BY Councilmember David Spelich to adjourn.  Vote: 7 - 0 Passed - Unanimously    The Work Session of the Fountain Hills Town Council held November 5, 2019, adjourned at 8:37 p..m.     TOWN OF FOUNTAIN HILLS _______________________________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________________________ Elizabeth A. Burke, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 5th day of November, 2019. I further certify that the meeting was duly called and that a quorum was present. DATED this 3rd day of December, 2019. _____________________________________ Elizabeth A. Burke, Town Clerk Regular Meeting/Work Session of November 5, 2019 10 of 10 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL NOVEMBER 19, 2019                    1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE  – Mayor Ginny Dickey    Mayor Dickey called the meeting of the Fountain Hills Town Council held November 19, 2019, to order at 5:30 p.m. and led the Town Council and audience in the Pledge of Allegiance. Reverend Dr. Cathy Northrup of the Verde Community Church gave the invocation.   2.ROLL CALL – Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone; Councilmember Mike Scharnow; Councilmember Art Tolis; Councilmember Dennis Brown; Councilmember Alan Magazine; Councilmember David Spelich  Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Elizabeth A. Burke  3.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER    Councilmember Scharnow reported that he attended the Leadership Academy graduation last week at the Community Center. They had 17 graduates and presented great projects for the Town to look at and consider. Councilmember Spelich said that he attended the Veterans Day celebration at the Memorial. Mayor Dickey reported that the legislature is already working on the budget and the GPEC Ambassadors are doing an Economic Development 101 with legislators. They are building up trust, and providing tools to assist cities and the county with economic activity and support for Prop 400 renewal. She said that they are asking the towns to be extensions of their leadership teams. She attended the East Valley Mayors' lunch which was hosted by Scottsdale. They discussed short term rentals, signage, homelessness and other common issues. The attended the River of Time New Exhibit Opening, which is the Territorial Medicine exhibit featuring the relationship between the Fort McDowell Yavapai Nation's first doctor, Carlos Montezuma, and Dr. Charles Mayo. She also attended the River of Time Annual Meeting with a presentation by Cherie Koss and election of the Board. At the Flying Garden, Monarch Butterfly Open House she met people from Georgia attending the national event in Phoenix. It was fun to see Fountain Hills through the eyes of a new visitor. They came to the Museum with the Monarch committee, Allyn, Nancy, Joe and Lisa, from the proclamation presentation last week. They have beautiful plans, with more to come. She reported that she also attended the Leadership Academy graduation. They have inspiring, great projects with a lot of enthusiasm, energy and commitment to Fountain Hills.    She attended the Consular Corp of Arizona Ambassadors' Ball, benefiting the Thunderbird School of Global Management at ASU, honoring Canada and the founders of the Make a Wish Foundation (The Shankwitzs), and attended by many honorary consults from around the world, some on whom live right here in Fountain Hills. She thanked former Councilmember Enrique Melendez for including Fountain Hills in the event. She reported that Sheriff Paul Penzone came to the Community Center last night and brought his staff who presented and answered questions from the audience.   A.PROCLAMATION November 19 - 25, 2019, as Be Kind America Week       Mayor Dickey read the proclamation proclaiming November 19-25, 2019, as Be Kind America Week.   4.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS   A.PRESENTATION by Heinfeld Meech & Co of annual financial audit results.      Mr. Miller said that one of the cornerstones of good, transparent government is to have independent audits. They are in their third year of a multiyear contract with Heinfeld Meech & Co. for auditing services. Jennifer Shields with Heinfeld Meech & Co. said that the audit is an important thing that the Town undergoes. They look at transactions that occur throughout the year and staff has been great to work with in providing the required information. Josh Jumper said that the biggest part of the audit report is the CAFR (Comprehensive Accounting Financial Report), which includes an unmodified opinion. He said that they also issued the Annual Expenditure Limitation Report and a Management Letter which noted a few items. One item noted was related to information technology and a disaster recovery plan. It is his understanding that there is already a plan in the works. As technology continues to become a part of everyone's life, the more there is a need for a formalized plan if something were to happen. Mr. Miller said that immediately upon hearing this, the Information Technology Administrator, drafted a plan based on best practices. It is still in the process of being reviewed and like other sensitive information, they will be bringing it back to Council for approval, but the document itself will not become public, similar to the Emergency Operations Plan. Councilmember Magazine asked if anything was recommended in last year's Management Letter that was not addressed this year. Mr. Jumper said that for the past few years there has been an issue with building permits. He said that there are a lot of manual calculations that go into a building permit and because of the manual nature and due to the volume, there have been instances for multiple years of miscalculations. He said that management had made a recommendation that manual calculations have a second review and that was done for 100% of the population that they looked at. Out of the 19 they looked at, 1 had an error. This is something that warrants attention, but management has been attempting to improve the process. Councilmember Spelich said that in reading the report, the positive things he gleaned were that interest earnings were up $400,000 and miscellaneous earnings were up $190,000. Additionally, retail sales were up 4.4% and restaurants/bars were up 7.7%.    Regular Meeting of November 19, 2019 2 of 10 With regard to the miscalculation on building permits, Mr. Miller said that the Management Team is committed to insuring that they have proper oversight of that. Councilmember Scharnow asked the auditors, from their own experience and other cities and towns, how the Town was doing compared to others. Mr. Jumper said that they had comments in the Management Letter. The audit findings can be higher in severity, with deficiencies in internal control. Those would go into a different report, but they did not relate any of those.   B.PRESENTATION on Four Peaks Park Update    Community Services Director Rachael Goodwin said that recognizing that they approved this capital project right before Golden Eagle Park flooded last year, it took their time and attention away from this project. However, when they started to look at how much progress they have made, they wanted to share it with the Council. She thanked the Parks staff, and Kevin Snipes in his efforts to keep it rolling. She also thanked Public Works Director Justin Weldy and the Public Works staff for their assistance in the project. Additionally, Bea, David and Craig all helped them keep it rolling as well. She then reviewed a PowerPoint presentation, Exhibit A attached hereto and made a part hereof, which addressed: PRE-CIP PROJECT - Bus Barn Removal SPRING 2018: A New Vision STEP ONE: Court Removal STEP TWO: Play Space design and install, Ages 5-12 years STEP TWO: Play Space design and install, Ages 2-5 years STEP THREE: Accessibility and park usability STEP FOUR: Ballfield improvements WHAT'S NEXT? AZSTA Grant: Update WHAT'S NEXT?: Playground Shade WHAT'S NEXT?" Walking Paths WHAT'S NEXT?" Playground Grand Opening Ms. Goodwin said that she was excited to announce that they requested a grant through the Arizona Sports Authority and the Town was able to secure an $85,000 matching grant for installation of a full court and lighting. She said that they also have an outstanding grant request for ball field refurbishment, but they have not heard yet on that one. Councilmember Scharnow said that there had been a few complaints about Golden Eagle Park closing fields if they were not reserved, but it was his understanding that they could go to this park and use the fields. Ms. Goodwin said that was correct, and they have had significant improvements. Mayor Dickey thanked Ms. Goodwin and her staff for all the work, noting that so much happens behind the scenes. She said that she appreciated that their staff wears three or four hats, and she appreciated it. The amenities make their home town special.   5.CALL TO THE PUBLIC    Regular Meeting of November 19, 2019 3 of 10 5.CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda.   6.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda.    MOVED BY Councilmember Alan Magazine, SECONDED BY Councilmember Dennis Brown to approve Consent Agenda items 6-A through 6-D.   Vote: 7 - 0 Passed - Unanimously   A.CONSIDERATION OF  adopting Resolution 2019-56, abandonment of a portion of the 20' Public Utility and Drainage Easement at the westerly side of Plat 203, Block 7, Lot 1 (16326 E. Kingstree Blvd.), as recorded in Book 149, Page 29, records of Maricopa County, Arizona. (EA 2019-17)      B.CONSIDERATION OF  approving an Extension of Premises application submitted by Sarah Meredith representing S & C Meredith LLC / DBA Alamo Saloon located at 11807 N Saguaro Blvd, Fountain Hills, AZ 85268 for a private party on December 14, 2020 from 6:00 p.m. to 1:30 a.m.       C.CONSIDERATION OF  adopting Resolution 2019-57 approving an Intergovernmental Agreement with the Salt River Pima Maricopa Indian Community relating to Proposition 202 funding.      D.CONSIDERATION OF  approving a Liquor License Application submitted by Kostas Sotirhos, owner of Alexanders Greek Kitchen, located at 13014 N. Saguaro Boulevard #101, Fountain Hills, AZ. This is for a series 12 (restaurant) license.       7.REGULAR AGENDA   A.PUBLIC HEARING AND CONSIDERATION OF adopting Ordinance#19-16, a text amendment to the Town of Fountain Hills Zoning Ordinance, Chapter 6, Sign Regulations, Sections 6.08 Zoning Districts Table, 6.08. M. and 6.08. Q. The amendments update the Zoning Districts Table with the new language, replace the existing language in Section 6.08 M. regarding Garage Sale Signs with new provisions for Residential Directory Signs and eliminate Section 6.08. Q. regarding Open House Signs.(Case #Z2019-06) (DUE TO A VARIETY OF FACTORS, STAFF IS REQUESTING THE PUBLIC HEARING REMAIN ON THE AGENDA, BUT BE CONTINUED TO THE DECEMBER 3, 2019, COUNCIL MEETING.)       Mayor Dickey opened the Public Hearing. Mr. Miller said that this item will be coming back on December 3, 2019. For a variety of factors, staff was requesting to have a motion to continue.      Regular Meeting of November 19, 2019 4 of 10    MOVED BY Councilmember Dennis Brown, SECONDED BY Vice Mayor Sherry Leckrone to continue the Public Hearing to the December 3, 2019, Regular Council Meeting at 5:30 p.m.   Vote: 7 - 0 Passed - Unanimously   B.CONSIDERATION OF  Resolution 2019-52 approving a Development Agreement associated with the Daybreak P.A.D. rezoning located at the northeast corner of Palisades and Shea Boulevards.       Mayor Dickey said that before they get started she wanted to remind everyone that the PAD/Rezoning and the General Plan Amendment have already been approved. Tonight they are only discussing the development agreement. They will hear from staff, the Council and then take speaker cards. Development Services Director John Wesley briefly reviewed the item, noting that during the October 1, 2019, Town Council meeting, there were three things on the agenda: 1) the PAD/Rezoning; 2) the General Plan Amendment; and 3) the Development Agreement. The first two items were approved; however, the third item was not voted on that night and staff was directed to continue negotiations with the developer which is what they have been doing. Mr. Miller noted that typical development agreements will include major points of a development. However, in this development agreement, many of those points reference the PAD which has already been approved. He said that there are still a few items within the development to be reviewed, which he would have the Town Attorney go over. Mr. Arnson said that the major deal points within the development agreement are: 1) Vesting of zoning on the property for a ten-year period. 2) Language related to complying with construction and phasing plan 3) Developer contribution of a letter of credit to address traffic mitigation, should the post traffic study warrant it 4) The Town would not be obligated to fulfill its requirements should the referenda items get on the ballot and be approved by the voters. Councilmember Magazine asked what the potential impact would be if the Town Council turned down the development agreement. Mr. Arnson replied that the Town would lose some of the benefits included within the development agreement, such as the $150,000 letter of credit toward traffic mitigation, shuttle service for the age-restricted portion, etc. He said that the development can still move forward. Councilmember Scharnow said that the Town Council received a letter a few days ago claiming that there is no indemnification or form of liability as part of the agreement, and he asked the Town Attorney to address that issue. Mr. Arnson said that the letter was referencing a provision of the Adero Canyon Development Agreement which contained Dimunition of Value, more commonly known as a Prop 207 Waiver, which the developer has already submitted to the Town, so that issue has been resolved. Mayor Dickey asked what would happen if the Town Council did not approve the Site Plan. Mr. Arnson said that there are a lot of ways to handle an impasse. If negotiations do not pan out, parties are required to settle by negotiation within a 20-day period with a third-party mediator. Councilmember Brown asked the Town Council, if they do not pass this, if it was worth losing    Regular Meeting of November 19, 2019 5 of 10 the $150,000 letter of credit and everything that the developer is offering to bring to the Town. If they do not pass it, it could go away altogether. If they do pass it, it becomes a document that would give the Town a letter of credit. He asked why they would not pass it. Councilmember Magazine said that he was not suggesting they not approve it. He just wanted the public to understand that it benefits the Town and the development can still move forward without it. Councilmember Tolis said that it was obvious that many of the people in the audience are neighbors to this development. As those in the audience responded negatively to the comment, he added that perhaps they are residents of Fountain Hills. He said that he was sympathetic to them and if he lived in that area he would have the same feeling. However, they are at a point now where they have approved the PAD Rezoning and if the development agreement is approved, but the project does not move forward because of the referenda items, it protects the community. He said that this is democracy in the works. He said that there are pros and cons to every decision they make. At this time, the following individuals addressed the Council: •Steve Messel •Larry Hering Comments received included: •How can they approve a development agreement when the exhibits are not attached? •How much are they waiving in fees for the developer and are they subsidizing him? •The developer previously assured them that a retaining wall would not be required. •It appears that the public meeting process does not establish the truth •Certain members of the Town Council have dismissed the vote of the (Planning and Zoning) Commission •Some councilmembers have shown extreme bias, with a diatribe speech about how good it will be while threatening that if it not built, no developer will ever build •This public process has verified that many in the Town government are bias and dishonest. •People of Fountain Hills are spinning their wheels trying to do the right thing while government is dismissing them as vigilantes. •They will exercise their right to put this on the ballot and put new people on the ballot    Councilmember Magazine said that he has been hearing about how dishonest the Council is and that they must be getting something from the developer. He said that it absolutely disgusting. They can argue the merits, but to call them dishonest because they do not agree is not fair. He would strongly urge them to go to the FBI with any information they have about the Council receiving something from the developer. Councilmember Brown said that he used the term vigilante, and it was easy to explain. When he walked into the meeting room on October 1, 2019, he was pulled to the side by staff into the hallway. There had been messages that if they do not want the project to wear blue, then it was red. Just before the meeting happened, they got another message to not worry about the color, but if they had a concealed weapons permit to bring their gun. He said that if that was not a vigilante move, he does not know what is. He said that the group they put together has been extremely aggressive. He has been there for ten years and has never seen anything like it. He said that the Town is broke and this project will bring continuous revenue to the Town. Public comment continued from:    Regular Meeting of November 19, 2019 6 of 10 •Robert Hahn •Carol Kelso •Jim Messmer Comments included: •Requiring a traffic study after the final Certificate of Occupancy is issued is too late. He said that the most controversial part of the development has been completely misunderstood by the Town Council and ignored by a majority of them.  •It is not the number of cars, but rather the location of the southern exit. The solution is to eliminate the project by moving this exit 2000 feet to the north on Palisades. •The process they should have used is that the public gets a draft and then has time to comment on it. Now she is looking at a development agreement that is not the same agreement. •In every one of the plans the development agreement should be considered the development plan. These are two separate and distinct legal documents. •To date, they still do not have a complete development plan. •The process here is upside down. •Mr. McCullough did a fabulous job developing Fountain Hills •Disappointed in the Town Council for totally ignoring the Planning and Zoning Commission recommendation •Why have a commission or a General Plan if it is going to be ignored? •This is a gross misuse of the project to cut 30 feet off of it. •A good architect and developer works with the land. •The density of the development is ridiculous. •A roundabout is not going to fix the traffic problem. Written comment cards in opposition to this item were also received from: Georgeann Zoros; Pat Rousseau, Alan Rousseau; Carroll Anderson; Eileen Anderson; Laura Crane; Linda Bauerle; Michael McClelland; Cindy Reese; Dan Toomey; Gary Housein; Donna Lyons; Linda T. Wilk; Ed Kelso; Elaine Rugg; Phil Parrish; Larry Goldsteion; Kathleen Quinlan; David Quinlan; Erica Westg; Grete Coolson; Thomas Kupka; Dan & Kathy Geiger; Beth Court; Rene Bouchelk; Sharon Latham; E. M. Washam; Reginald Court; Heather Fryberg; Sharon Duboe; JoAnne Crosby; Eugene Osterkorn; Stephanie Czapp; Arnold Takemoto; Coleen Takemoto; Martha Parrish. Mr. Arnson said that a number of issues have been raised and he would like to address them: •The exhibits are included in the PAD, and one of them is the PAD. The site plan has not yet been submitted, but it will be coming before Council prior to December 1, 2020. •From past development agreements, they found at least six entered into in Fountain Hills that have had periods of identical length. •A traffic study was done and was included and the results were included in the PAD approved on October 1, 2019. •What is being requested is that once the Certificate of Occupancy is issued, which would have actual populations on the property, it would determine whether warrants exist for mitigation. •The version of the agreement included in the Council packet, that has been available online since last week, is the version being considered tonight. •The issue of retaining walls was included in the PAD. Mayor Dickey asked the attorney to clarify what a development plan is, and if it was a term they are used to. Mr. Arnson said that the site plan is included in a development plan, or the    Regular Meeting of November 19, 2019 7 of 10 PAD, which includes development standards and the site plan. Mr. Wesley added that Chapter 23 of the Zoning Ordinance has a specific statement of what constitutes a development plan--the project narrative, site plan, and previous studies, which were included with the PAD. He said that the improvements will be included in the final versions of the final plat. They will see those as they continue through the process. Mayor Dickey clarified that development agreements do not go to the Planning and Zoning Commission for review. Mr. Wesley confirmed that was correct. Councilmember Tolis said that the reason why they had previous meetings that were postponed was because there was a tremendous amount of time dealing with negotiations and the developer and town attorney have been negotiating to make this the best possible development agreement in the interests of the community. The process has been tedious. Councilmember Scharnow noted that the Council packet, including the development agreement, has been available on the website since last Thursday. They deliberately did that so the public could see it. The process has been deliberate and as public as it could be. Further discussion was held on the fees being waived that are referenced in the development agreement. Mr. Wesley said that the final plat would run about $1,500 to $2,000. The grading permit is 5% of the construction cost, and he could not tell them tonight. With regard to reviewing the PAD stipulations, there would be no charge anyway. Overall, Councilmember Tolis said that they are talking about waiving around $30,000 for a $95 million project. Councilmember Spelich said that when the public comes forward and says they have no faith in the Town Council, it makes it out that the vote was unanimous. He and the Mayor voted against it. To clarify, they have all had input into the agreement, but he does not feel as confident saying that it protects the Town so greatly. They have had other projects in Town that have gone for over ten years. There is a strong possibility that this is going to need a stop light. They cost $500,000, and they are only putting in $150,000 toward a stop light. He said that he was not as concerned with the number of cars, but rather the fact that they would not need a signal without this development. He said that after spending his time on the Council to date looking for extra revenue and ways to cut spending, he is not into waiving fees. He said that they are not going to increase enforcement on the speed limit. Councilmember Tolis said that this has been discussed and debated many times. The property was zoned for a resort. In his opinion, this is in the best interest and highest and best use of the property. To him, it is a downgrade. Five of them looked at the financials, the Fry's Plaza, vacancies in Town, and the economic impact, and negotiations took place with outreach to the community. They have to do what they feel is in the best interest for the community financially. Councilmember Spelich added that he, too, reviewed the financials. Vice Mayor Leckrone said that most has been said, but the decision that many of them are against has already been made. Tonight they are there for the development agreement and the details in it. The development goes forward with or without the development agreement. There are two sides to negotiations. They did what they feel is their best effort, and have listened to the concerns. Mayor Dickey said that the development agreement is an improvement, but there are items she was hoping would be further addressed. She is not satisfied with the traffic proposal. She does not think that a development agreement should be setting a speed limit. The ten years is not the issue as much as the phasing. Phase 2 needs the 30 foot hill, but it has to be done at the beginning. If that happens, but Phase 2 does not happen, her fear is that it will sit there incomplete. She said that she, too, does not support waiving of any fees.      Regular Meeting of November 19, 2019 8 of 10  MOVED BY Councilmember Art Tolis, SECONDED BY Councilmember Dennis Brown to adopt Resolution 2019-52.   Vote: 5 - 2 Passed  NAY: Mayor Ginny Dickey   Councilmember David Spelich    C.CONSIDERATION OF approving the installation of the sculpture titled, "Fountain of Light" on the west end of the Avenue of the Fountains across the street from Town Hall.       Mr. Miller said that this item was before the Town Council on September 17, 2019, and at that meeting the motion was to have the Public Art Committee and the Dark Sky organization work with staff to work out the differences they have. Mr. Goodwin said that they were left with a number of concerns and items specific to lighting control. The Public Art Committee and artist met with the experts of lighting and telescopes. They did some examples and the consensus was that this piece can co-exist with the dark sky obvservatory coming on line. Dori Wittrig then came forward and said that this project has been approved unanimously twice. She said that in the form of letter from the Bills, the Dark Sky Ordinance indicated that the current height of 45'[ does not exceed the height of Town Hall. Bruce Boyce, an expert with telescopes, helped craft the local dark sky ordinance and is on the board of the Dark Sky board. She said that a light test was recently conducted and the light output tested by them was so far below what the Town ordinance is. She said that they have approximately 75% of the funding. It will create a bookend for the Avenue and a full experience. The fountain is not lit 100% of the time and this will be a nice reminder of how important the fountain is. Councilmember Magazine asked if the Council had not asked them at the last meeting to look at other locations. Ms. Wittrig said that the looked at other locations previously. Councilmember Magazine thanked the Arts Council, stating that they do an outstanding job. He said that when he addressed the issue of Park Place, he was opposed to it and voted against it, primarily because of the height. It he thought it was out of scale with Fountain Hills and he feels the same. To him, this is out of scale and not necessary. Ms. Wittrig said that speaking as a business owner, it has always been her belief that the downtown area is not the place to preserve views, it is to bring people in. She is happy to see people walking there from early to night. Mayor Dickey thanked the artist for such a beautiful piece.    MOVED BY Councilmember Art Tolis, SECONDED BY Vice Mayor Sherry Leckrone to accept "Fountain of Light" sculpture to be installed on the western end of the Avenue of the Fountains with conditions listed in the risk analysis.   Vote: 6 - 1 Passed  NAY: Councilmember Alan Magazine    8.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER    Regular Meeting of November 19, 2019 9 of 10 8.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council.   9.ADJOURNMENT    MOVED BY Councilmember Alan Magazine, SECONDED BY Councilmember Dennis Brown to adjourn.   Vote: 7 - 0 Passed - Unanimously    The Regular Meeting of the Fountain Hills Town Council held November 19, 2019, adjourned at 7:27 p.m.                                             TOWN OF FOUNTAIN HILLS                                                                                           _______________________________________                                                                                            Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________________________  Elizabeth A. Burke, Town Clerk  CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 19th day of November, 2019. I further certify that the meeting was duly called and that a quorum was present. DATED this 3rd day of December, 2019.                                                                                              _____________________________________                                                                                               Elizabeth A. Burke, Town Clerk    Regular Meeting of November 19, 2019 10 of 10 ITEM 7. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Public Works Prepared by: Randy Harrel, Town Engineer Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  adopting Resolution 2019-54, abandonment of the 10' Public Utility and Drainage Easement at the rear of Plat 603-C, Block 5, Lot 21. (EA 2019-18) Staff Summary (Background) Applicant/Owner: Mike Foster/ WSTOM Homes Property Location: 15722 E. Sycamore Drive (Plat 603-C, Block 5, Lot 21) All the public utilities have approved of abandonment of this easement. This is currently a vacant lot; the applicant has not currently submitted any building permit request for this lot. Staff has reviewed the site to determine any on-site drainage issue, in addition to the Town's general interest in the abandonment. There is no need for the Town to retain the drainage easement proposed to be abandoned, with the understanding that the owners of Lot 1 are required to pass the developed flows generated by the upstream lots across their property. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2019-54.  SUGGESTED MOTION MOVE  to adopt Resolution 2019-54. Attachments Res 2019-54  Exhibit A Map  Vicinity Map  Aerial Photo  Form Review Inbox Reviewed By Date Town Clerk Elizabeth A. Burke 11/21/2019 10:47 AM Development Services Director John Wesley 11/21/2019 10:58 AM Town Attorney Aaron D. Arnson 11/22/2019 02:39 PM Town Manager Grady E. Miller 11/22/2019 09:01 PM Form Started By: Randy Harrel Started On: 11/19/2019 11:39 AM Final Approval Date: 11/22/2019  RESOLUTION 2019-54 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE 10’ PUBLIC UTILITY AND DRAINAGE EASEMENT LOCATED AT THE REAR PROPERTY LINE OF PLAT 603-A, BLOCK 5, LOT 21, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNT Y, ARIZONA, RECORDED IN BOOK 161, OF MAPS, PAGE 43 RECITALS: WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), as the governing body of real property located in the Town of Fountain Hills (the “Town”), may require the dedication of public streets, sewer, water, drainage, and other utility easements or rights-of-way within any proposed subdivision; and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and WHEREAS, all present utility companies have received notification of the proposed abandonment. ENACTMENTS: NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That the certain public utility and drainage easement, located at the rear property line of Plat 603-C, Block 5, Lot 21 (15722 E. Sycamore Drive) Fountain Hills, as recorded the Office of the County Recorder of Maricopa County, Arizona, Book 196 of Maps, Page 28, are hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot-to-lot drainage runoff. The property owner is required to pass the developed flows generated by the upstream lots across their property. SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona this 3rd day of December, 2019. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Elizabeth Burke, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney BEELINE H W Y SHEA BLVDPALISADES BLVDSAGUARO BLVD SAGUARO BLVDPALISA D E S B L V D PALISAD E S B L V D SA G U A R O B L V DFOUNTAIN HILLS BLVDMcDOWELL MO U N T A I N R D FOUNTA IN H I L L S B LVDSUNRIDGE DREL L A G O B L V D AVENU E O F T H E FOUNT A I N S PANORAMA DRFIREROCK COUNTRYCLUB DREAG L E M O U N T A I N PKW YCRESTVIEW DRPALOMINO SIERRA M A D R E GRANDE BLV D G O L D E N E A G L E B L V D VICINITY MAP TOWN OF FOUNTAIN HILLS NORTH SCALE: 1" = 3500' All that is A r izonaFOUN T A IN HIL L S TOWN OFINC. 1989TOWN HALL DEVELOPMENT SERVICES DEPARTMENT SCOTTSDALE McDOWELL MOUNTAIN PARK FORT McDOWELL YAVAPAI NATIONSALT RIVER PIMA MARICOPA INDIAN COMMUNITY TOWN BOUNDARY SCOTTSDALE 15722 E SYCAMORE DR DEVELOPMENT SERVICESAERIAL PHOTO MAPAll that is Ari z o na FO U NTAIN HILLST O W N OF INC. 1989LEGEND:ABANDON 10'P.U.E. & D.E.10'SYCAMORE DRRETAIN 10'PUE & DE ITEM 7. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  Resolution 2019-58 declaring as a Public Record that certain document filed with the Town Clerk and entitled "2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code"; and Ordinance 19-18, adopting the "2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code" by reference. Staff Summary (background) On May 16, 2018, the Governor signed Senate Bill 1140 amending Title 9 of Arizona Revised Statutes. This new legislation created statewide, uniform regulations for video and cable service providers and preempts local regulations. The Town took the first step towards compliance with the new requirements on June 18, 2019, when the Town Council adopted Resolution 2019-37 approving a uniform video service licensing application and permit. The next step in this process is to revise Town Code Chapter 13 - Video Licensing to conform to Title 9 Chapter 13 of Arizona Revised Statutes. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis If not revised, Town Code would be inconsistent with state statute. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2019-58 and Ordinance 19-18. SUGGESTED MOTION MOVE to adopt Resolution 2019-58; and MOVE to adopt Resolution 2019-58; and MOVE to adopt Ordinance 19-18. Attachments Res 2019-58  Ord 19-18  Senate Bill 1140  Form Review Inbox Reviewed By Date Finance Director (Originator)David Pock 11/20/2019 04:51 PM Town Attorney Aaron D. Arnson 11/25/2019 11:42 AM Town Manager Grady E. Miller 11/25/2019 12:19 PM Form Started By: David Pock Started On: 11/19/2019 03:46 PM Final Approval Date: 11/25/2019  RESOLUTION NO. 2019-58 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED “2019 AMENDMENTS TO CHAPTER 13, CABLE COMMUNICATIONS, OF THE FOUNTAIN HILLS TOWN CODE” ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That certain document entitled “2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code,” of which one paper copy and one electronic copy maintained in compliance with ARS 44-7041 are on file in the office of the Town Clerk and open for public inspection during normal business hours, is hereby declared to be a public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 3rd day of December, 2019. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Elizabeth A. Burke, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney RESOLUTION 2019-58 PAGE 2 EXHIBIT A 2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code Chapter 13 CABLE COMMUNICATIONS Articles: 13-1 TITLE 13-2 PURPOSE 13-3 DEFINITIONS 13-4 AUTHORITY TO GRANT LICENSE, LICENSE REQUIRED, NON-EXCLUSIVE LICENSE 13-5 APPLICATION PROCEDURES 13-6 STANDARDS FOR GRANTING OR DENYING LICENSE APPLICATIONS RESERVED 13-7 LICENSE AGREEMENT 13-8 OPERATING REQUIREMENTS FOR CABLE COMMUNICATIONS SYSTEMS 13-9 FEES, BONDS, LETTERS OF CREDIT, LIQUIDATED DAMAGES AND APPEALS 13-10 TERMINATION - REVOCATION 13-11 RENEWAL 13-12 TRANSFERS AND CHANGE OF CONTROL RESERVED 13-13 INDEMNITY-INSURANCE 13-14 ADMINISTRATION 13-15 GENERAL PROVISIONS 13-16 RIGHTS RESERVED TO THE COUNCIL RESOLUTION 2019-58 PAGE 3 Article 13-1 TITLE This Chapter shall be entitled the Town of Fountain Hills Cable Communications Chapter. RESOLUTION 2019-58 PAGE 4 Article 13-2 PURPOSE It is the purpose of this chapter to provide for the regulation and control of cable television systems operating within the Town of Fountain Hills, Arizona, by the council, in the public interest; to authorize the council to grant one or more non-exclusive licenses to operate cable communications systems; to provide for the use of town streets, public utility easements, public rights of way and public places by licensee and compensation to the town for use of same; and to require that the provision of this chapter be applicable to all licenses granted by the council AFTER JUNE 18, 2019. TOWN OF FOUNTAIN HILLS ORDINANCE NO. 95-10 APPLIES TO LICENSES GRANTED ON OR BEFORE JUNE 18, 2019. It is the further purpose and intent of this chapter to facilitate the provision of high quality cable television service to the citizens of the town while minimizing disruptions of the public domain for system installation and maintenance. RESOLUTION 2019-58 PAGE 5 Article 13-3 DEFINITIONS For purposes of this chapter, the following words, abbreviations, and their derivations shall have the meanings given herein. Words not defined are given the meaning in Section 602 of the Cable Act, 47 U.S.C. Subsection 522, and, if none, their common and ordinary meaning. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The words "must" or "shall" are mandatory and the word "may" is permissive. "Access channel" shall mean one or more channels dedicated in whole or in part for local non- commercial programming which is set aside for educational use or governmental use without a charge by the licensee for channel usage and which is not originated by a cable company; provided that such access programming shall not include: 1. the retransmission of local television broadcast signals, or 2. programming produced by persons unaffiliated with the cable company under the provisions of Section 612 of the Cable Act. "Applicant" means any person that applies for a license. "Application" means a proposal to construct and/or operate a cable system within the town, transfer a license, renew a license or modify a license. BEGINNING JUNE 18, 2019, ALL LICENSE APPLICATIONS SHALL BE SUBMITTED IN THE FORM OF A UNIFORM CABLE LICENSING AGREEMENT APPLICATION AND AFFIDAVIT AS ADOPTED BY THE COUNCIL IN ACCORDANCE WITH A.R.S. § 9-1401 ET SEQ. An application includes the initial proposal plus all subsequent amendments or supplements to the proposal and relevant correspondence. "Basic cable service" or "basic service" means any service tier which includes the retransmission of local television broadcast signals. "Cable Act" means the Cable Communications Policy Act of 1984, 47 U.S.C. Section 521 et seq., as amended. "Cablecasting" means a non-broadcast signal that originates within the facilities of the cable communications system. "Cable service" means: 1. one way transmission to subscribers of: a. video programming, or b. other programming service, and 2. subscriber interaction, if any, which is required for the selection of such video programming or other programming service. AND, 3. VIDEO SERVICES AS DEFINED IN A.R.S. § 9-1401. "Cable television system" or "cable system" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is RESOLUTION 2019-58 PAGE 6 designed to provide cable service which includes video programming and which is provided to multiple subscribers within the town. Such term does not include: 1. Facility that serves only to retransmit the television signals of one or more television broadcast stations; 2. A facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, unless such facility uses or crosses (above or through) any public right-of-way; 3. A facility of a common carrier that is subject, in whole or part, to the provision of Title II of the Communications Act of 1934, 47 U.S.C. Subsection 201 et seq., 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, 4. Any facility of any electric utility used solely for operating its electric utility systems. Furthermore, if there is a connection of any such exempt system to a licensed system such exemption shall cease. "Change of service" means all requests by existing subscribers for modification to their cable service, such as additions or deletions of premiums services, additional outlets, remote controls FM service, etc. Such terms shall not include, initial installation of basic cable service, total disconnection of basic cable service or service calls. "Channel" means a portion of the electromagnetic frequency spectrum which is used in a cable system and is capable of delivering a television channel. "Complaint" is a subscriber or citizen issue, presented in verbal or written form, to the licensee or the town relating to any aspect of the licensee's performance under this chapter. "Control of licensee or applicant" means the legal or practical ability to direct the affairs of the licensee or applicant either directly or indirectly, whether by contractual agreement or majority ownership of an economic interest. In the case of a limited partnership, a change in limited partner interests shall not constitute a change in control where the limited partners have no power to participate in the management of the partnership, and the general partner retains full power. "Converter" is an electronic tuning device which converts transmitted signals to a frequency which permits their reception on an ordinary television set. "Council" means the Town Council of the Town of Fountain Hills, Arizona, or such representative person or entity as may be designated initially or at some future date to act on cable television matters. "Density" means the number of potential subscriber households per mile of cable system. Dwelling units shall be counted when they are within 250 feet of any portion of the cable distribution system including trunk and feeder cable lines. "Dwelling unit" means any separate and distinct structure or part thereof which exists in finished form, occupied or capable of year-round occupation, and serves as a residence to one or more RESOLUTION 2019-58 PAGE 7 persons. Included in this definition, but not limited to are: all single family homes, each apartment unit, each condominium unit, patio homes, guest quarters and similar type structures. "FCC" means the Federal Communications Commission or successor agency. "Gross revenues" shall mean 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 any person, firm or corporation in which a licensee has a financial interest or which has a financial interest in a licensee, arising from or attributable to the licensee's operation of its cable television system within the town, including, but not limited to: 1. Revenue from all charges for services provided to subscribers; 2. Revenue for all charges for the insertion of commercial advertising upon the cable system; 3. Revenue from all charges for the leased use of studios; 42. Revenue from all charges for the installation, removal, connection and reinstatement of equipment necessary for a subscriber to receive cable service; 5. Revenue from the sale, exchange, use or cablecast of any programming developed for community use or institutional users. 6. Revenue from all charges for the use of or lease of leased access channels or band width. 73. Revenue from the production or transmission over the cable system of video programming by licensee including programming produced by its mobile facilities. 84. Any other income derived from the cable system. Gross revenues shall not include taxes collected by licensee on behalf of any governmental authority; any surcharges for underground conversion of cable plant costs; any increase in the value of any stock, security or asset; the value of complimentary services provided to licensee's employees and is required by this chapter or any license; and dividends or other distributions made in respect of any stock or securities, or value received by a licensee or any of its affiliates, subsidiaries or parent relating to licensee services or through cooperative advertising. 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 ("affiliate") in which a licensee 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, which has all the following characteristics: the affiliate 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, even if it does not offer and provide its services to persons other than licensee in the same industry as licensee; 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, RESOLUTION 2019-58 PAGE 8 property of any kind or nature or other consideration which would be considered the licensee's gross revenues derived from the operation of the cable system under the Cable Act. Except for gross revenue 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 affiliate, 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 April 6, 1995. When a licensee (or an affiliate) holds one or more other cable television licenses in Maricopa County, Arizona and receives and allocates gross revenues from paragraphs 2, 6 and 73 under this definition, then gross revenues derived from paragraphs 2, 6 and 73 under this definition, shall be allocated pro rata to the town based on the ratio of the number of subscribers of licensee (or an affiliate), in the town to the number of subscribers of licensee (or an affiliate) in all the jurisdictions in Maricopa County, Arizona, in which licensee (or an affiliate) holds a cable license. If a licensee does not allocate its gross revenues derived from paragraphs 2, 6 and 73 under this definition from such other jurisdictions then the number of subscribers in such jurisdictions shall not be included in the total number of subscribers in all other jurisdictions. "Interconnect" or "interconnect of facilities" is the connection of one or more channels of licensee's system with other cable systems by direct cable, microwave link, satellite or other appropriate methods. "Leased channel" or "leased access channel" means any channel designated in accordance with Section 612 of the Cable Act, 47 U.S.C. Subsection 532, for commercial use by persons unaffiliated with the licensee. "License" means the non-exclusive right and authority, granted by the council, as described in this chapter, to construct, maintain and operate a cable television system through use of the public streets or public places in the town. This term does not include any license or permit that may be required by the chapter or other laws, ordinances or regulations of the council for the privilege of transacting and carrying on a business within the town or for disturbing the surface of any street or public thoroughfare. "Licensee" means the person granted a license agreement by the council and any lawful successor, transferee or assignee of said person. "License agreement" means a contract entered into in accordance with the provisions of this chapter between the council and a licensee that sets forth the terms and conditions under which the license will be exercised. "Malfunction" means an equipment or facility failure that results in the loss of a viewable signal on one or more channels. A "major malfunction" has occurred when five or more channels are affected. "Outage" means an equipment or facility failure that results in a total loss of signal on all cable channels affecting three or more subscribers in a quarter section within any one hundred twenty minute period. "Overbuild" means a cable system constructed to serve subscribers currently served by an existing cable system, including those parts of an existing system that will be constructed within six months pursuant to plans filed with the council. RESOLUTION 2019-58 PAGE 9 "PEG access channel" or "PEG channel" means any channel set aside for educational use or governmental use without a charge by the licensee for channel usage. "Person" means any individual, corporation, joint venture, association, syndicate, trust, partnership or any other business entity who holds or applies for a license from the council. "Property of licensee" means all property owned, installed or used within the town by a licensee in the conduct of a cable television system business. "School" means any public educational institution, which is accredited by a nationally recognized institution, including primary and secondary schools, colleges and universities. "Service call" shall result when service problems occur relating to: 1. Fewer than three complaints regarding total loss of signal on all channels within the same quarter section within one hundred twenty minutes, 2. A degraded signal or picture on one or more channels, or 3. Property damage by licensee employees or authorized contractors. "Standard drop" means that cable connection which requires no more than two hundred fifty foot drop measured from the nearest point of subscribers home or place of business to the nearest active tap on the cable system, involving only one outlet and standard materials and does not involve a wallfish. In addition, a standard drop shall exclude custom installation work including specific subscriber requested work that requires nonstandard inventory or cable routing that requires construction methods exceeding reasonable underground or aerial work. "Street" means the surface, the air space above the surface and the area below the surface of any public street, road, highway, path, sidewalk, alley, court, easement or other public right-of- way or public place now or hereafter held by the town, County of Maricopa or State of Arizona for the purpose of public travel or public utilities. "Subscriber" means any individual or entity legally receiving, for any purpose, cable services of the licensee's cable television system including, but not limited to, the basic service, redistribution of television broadcast signals, radio signals, licensee's original cablecasting, community programming, government and education access channels and other services such as leased channels, data and facsimile distribution, premium and pay per view channels and police, fire and similar public service communication. "Town" means the Town of Fountain Hills, a municipal corporation of the State of Arizona, in its present boundaries, and its future boundaries as increased or decreased by law. "Town manager" means the Town Manager of Fountain Hills, Arizona, or his designee, as will be communicated to the licensee in writing, if and when such designation occurs. "Two-way capability" means the incorporation in a cable system of all appropriate design and engineering characteristics so that two-way transmission, including addressability, over the system can be implemented with a minimum of expense. RESOLUTION 2019-58 PAGE 10 Article 13-4 AUTHORITY TO GRANT LICENSE, LICENSE REQUIRED, NON-EXCLUSIVE LICENSE A. Pursuant to A.R.S. §9-505A.R.S. § 9-1401 ET SEQ., as amended, the council has the authority to issue non-exclusive licenses to construct, install, maintain and operate cable communication systems within the town, and to regulate those cable operations. The council's authority is also based in common law pursuant to the town's ownership of the fee simple title to the streets of the town as well as its legal interest in easements and licenses granted to it by property owners for the purposes of municipal use. B. No provision of this chapter shall be deemed or construed to require the granting of a license. C. No person shall construct, install or maintain a cable system within any street in the town, or within any other public property of the town, unless a license agreement authorizing such use of said streets or property is in full force and effect. D. Any person providing or maintaining a cable system in the town pursuant toa license granted by Maricopa County, Arizona, prior to the incorporation of the town, may continue to provide or maintain such system until such time as the town has granted its first license. If the person providing or maintaining a system does not receive one of the first town licenses, then the person shall have one hundred twenty days from the effective date of the first licenses to provide for the abandonment or removal of the system. E. Any license issued by the council shall be non-exclusive, and the council specifically reserves the right to grant such additional licenses for cable systems as the council deems appropriate. RESOLUTION 2019-58 PAGE 11 Article 13-5 APPLICATION PROCEDURES A. Any person desiring to construct, install, maintain or operate a cable communication system within the town, UNLESS THAT PERSON IS A HOLDOVER CABLE OPERATOR AS DEFINED BY A.R.S. § 9-1401, shall submit an application to the council. This application shall BE FURNISHED BY THE TOWN AND consist of executed application forms AND AFFADAVIT as prescribed BY A.R.S. § 9-1414.and furnished by the town. Failure of any applicant to fully provide all information requested on the application forms AND AFFADAVIT will be sufficient cause for not considering the application. This application shall be filed with the town clerk. B. All applications filed with the town clerk remain the property of the town. Applications for a license may be submitted only in response to a request for proposals (RFP) issued by the council in compliance with the provisions of this chapter. Applications submitted pursuant to a request for proposals may be returned as non-responsive if they do not comply with all requirements of the request. The council reserves the right to issue a request for proposals at any time. CB. Applications for consent to transfer a license or an interest in a license must conform to the requirements of Articles 13-9 and 13-12 of this chapter A.R.S. § 9-1419, while applications for renewal must conform to Articles 13-9 and 13-11 A.R.S. § 9-1420. DC. An application for modification of a license agreement must conform to Article 13-9 of this chapter and A.R.S. § 9-1416.include, at a minimum, the following information: 1. The specific modification requested; 2. The justification for the requested modification, including the impact of the requested modification on subscribers and others, and the impact on the applicant if the modification is not approved; 3. A statement as to whether the modification sought is pursuant to 47 U.S.C. Section 545, and, if so, a demonstration that the requested modification meets the legal standards of said section; and 4. Any other information necessary for the council to make a determination. ED. To be acceptable for filing, an application must be submitted with any required filing fee, be properly executed on the forms prescribed by the council, and contain the information required by any required application form, this chapter, and meet the requirements of any applicable request for proposals. IF THE COUNCIL OR TOWN CLERK DETERMINES THAT AN APPLICATION IS INCOMPLETE OR OTHERWISE DEFICIENT, WRITTEN NOTICE SHALL BE GIVEN TO THE APPLICANT WITHIN FIFTEEN DAYS AFTER FILING IN ACCORDANCE WITH A.R.S.§ 9-1414. RESOLUTION 2019-58 PAGE 12 Article 13-6 STANDARDS FOR GRANTING OR DENYING LICENSE APPLICATIONS RESERVED A. All applications received that are acceptable for filing shall be placed in a public file with the town clerk. The council shall publish notice of each application in a newspaper of general circulation within the proposed service area once a week for two consecutive weeks. The notice shall indicate the following: 1. The proposed service, or changes in service, and/or 2. Proposed changes in ownership; and 3. Where the application may be viewed; and 4. The due date for submission of any written comments; and 5. The date and location of a public hearing on the proposed application. B. Notice of such hearing shall be published and held in accordance with the provision of A.R.S. §9-50, subsection B. All interested parties shall be afforded a reasonable opportunity to be heard. C. The council shall give full consideration to each application. The following factors may be deemed appropriate and shall be considered: 1. The financial qualifications of the applicant and its ability to construct and operate the proposed system. 2. The need for and quality of the service proposed, including rates to subscribers, whether or not rates are to be regulated. 3. The technical, legal and character qualifications of the applicant, including applicant's willingness to abide by the limitations of this chapter. 4. Technical and performance adequacy of the proposed system design, plant and equipment, including any specific knowledge or experience the council may have with the applicant. 5. Where an applicant proposes to overbuild an existing cable system, the economic and technical feasibility of multiple cable systems, the impact on the existing licensee's system and the public interest, if the application were to be granted. 6. All other factors which may affect the public interest. D. Thereafter, the council shall make a determination whether to approve or disapprove each application. RESOLUTION 2019-58 PAGE 13 Article 13-7 LICENSE AGREEMENT A. Upon the approval of an application by the council SUBMISSION OF A COMPLETED APPLICATION, the applicant AND THE TOWN shall negotiate and execute a license agreement within sixty45 days. If the council and the grantee fail to agree on the terms of a license agreement within the sixty days of the date that the council's action approving the application, the approval shall expire without further action by the council. This time limit may be extended by the council for good cause. The license agreement shall incorporate all terms and provisions of this chapter wherein a requirement is placed upon the licensee, either expressed or implied by this chapter. The licensee shall expressly and specifically agree to accept the terms of and be bound by the terms of this chapter. B. A license agreement shall have the following characteristics: 1. It authorizes use of the public rights-of-way for installing cables, wires, lines and other facilities to operate a cable system, but does not expressly or implicitly authorize the licensee to provide service to, or install cable, wires, lines or any other equipment or facilities upon property without owner consent [except for compatible easements or rights- of-way pursuant to 47 U.S.C. Section 541(a)(2)], or to use publicly or privately owned utility poles or conduits without a separate agreement with the owners. It also authorizes the licensee so to use, operate and provide similar facilities or properties rented, licensed or leased from other persons, firms or corporations, including but not limited to any public utility or other licensee licensed or permitted to do business in the town; provided, however, that neither the licensee nor the third party shall be relieved of any regulation or obligations as to its use of such facilities in the streets. 2. It is subject to the paramount right of use of the public rights-of-way by the council and the public for public purposes. The council reserves the right to authorize use of public rights-of-way to other persons as it determines appropriate. 3. It is nonexclusive and will not expressly or implicitly preclude the issuance of ot her licenses to operate cable systems within the town. 4. It conveys no property right to the licensee or right to renewal other than as may be required by state or federal law. 5. It constitutes a contract between the licensee and the council once it is approved by the council and executed by both parties. A licensee contractually commits itself to comply with the terms, conditions and provisions of the license agreement and with all applicable laws, ordinances, codes, rules, regulations and orders. 6. The term of the license agreement shall not exceed fifteenTEN years commencing on its effective date. 7. A licensee shall execute a hold harmless agreement as part of the license agreement which shall set forth the obligation of the licensee over and above the insurance requirements contained in the license and this chapter. RESOLUTION 2019-58 PAGE 14 8. A licensee shall be subject to all laws, rules and regulations of the State of Arizona and the United States Government. 9. Any of the provisions of this chapter may be amended by the c ouncil at any time. This chapter and such amended provisions shall be applicable to all existing license agreements; provided, however, that this chapter and such amended provisions shall not be applicable to an existing agreement where it would contravene a contractual right of the licensee under the license agreement, nor pose additional contractual burdens on the licensee. LICENSE AGREEMENTS EXECUTED AFTER JUNE 18, 2019. 10. All notices and communications from a licensee to the council pursuant to this chapter or a license agreement shall be sent to the town manager unless the licensee is otherwise directed. 11. Insofar as it is not inconsistent with or otherwise preempted by federal or state regulations, the license agreement shall grant the right and privilege to the licensee to provide non-cable communications services. Insofar as it is not inconsistent with or otherwise preempted by federal or state regulations, the council shall retain all authority to regulate non-cable telecommunication services to the extent necessary to protect the public interest and to ensure compliance with all provisions of this chapter. RESOLUTION 2019-58 PAGE 15 Article 13-8 OPERATING REQUIREMENTS FOR CABLE COMMUNICATIONS SYSTEMS A licensee shall conform to the following minimum standards relative to the construction, operation and maintenance of a cable communications system in the town. It is not the intent of this article to prevent any licensee from providing more than the required minimum to meet the standards listed below. A. Rights of Individuals, Subscribers and Users. 1. A cable system shall be operated in a manner consistent with the principles of fairness and equal accessibility of facilities, channels, studios and other services to all residents and other entities having a legitimate use of the system. A licensee shall not discriminate in terms of rates, terms of service or extension of service on the basis of age, race, creed, sex, religion, national origin or marital status. Nor shall a licensee fail to extend service to any part of the town on the basis of the income of the residents. 2. A licensee shall maintain a business office open during normal business hours with listed local or toll-free telephone numbers to allow reasonable access by subscribers and members of the public. Unless a waiver is granted by the council, said office shall be located within ten miles of the town's corporate limits. When the office is closed, an answering machine or similar device, capable of receiving service complaints and inquiries must be employed. 3. Licensee shall maintain a written record listing date of all complaints, identifying the subscriber or citizen, describing the nature of the complaint and when and what action has been taken by the licensee, if any, in response thereto; such record shall be kept at licensee's office and shall be available for inspection during regular business hours without further notice of demand of the town manager. A summary of such records must be retained for not less than one year. The licensee shall notify each subscriber at the time of initial subscription to service of the procedure to reporting and resolving complaints. 4. A licensee shall establish procedures for the investigation and resolution of all complaints including, but not limited to, those regarding the quality of service and equipment malfunction. A copy of such procedures shall be provided to the council upon request. 5. A licensee must provide each subscriber at the time cable service is installed, the following: a. written instructions for placing a service call, filing a complaint or requesting an adjustment, including the phone number and address of licensee's office; b. the telephone number of the town office responsible for administration of the cable license; c. a schedule of rates and charges for all available services; RESOLUTION 2019-58 PAGE 16 d. copies of the service contract, including disconnect and reconnect procedures and charges; e. a subscriber handbook and upon request any other written policies applicable to subscribers. 6. A licensee shall establish and conform to the following policy regarding refunds to subscribers and users: a. If the licensee collects a deposit or advance charge on any service or equipment requested by a subscriber or user, the licensee shall provide such service or equipment within thirty days of the collection of the deposit or charge or it shall refund such deposit or charge within five days thereafter upon request of the subscriber. The subscriber must be advised of this right of refund at the time the order is placed. b. If any subscriber or user terminates any monthly service during a period of time for which said subscriber or user has made an annual or other payment in advance, the appropriate pro rata portion of said payment shall be refunded by the licensee. 7. The following requirements shall apply to disconnections: a. There shall be no charge for total disconnection of cable service unless such charge was disclosed at the time the subscriber ordered service. All cable communications equipment shall be removed within a reasonable time from a subscriber's property at the subscriber's request, such time not to exceed thirty days from the date of the request. b. If any subscriber fails to pay a properly due monthly subscriber's fee or other charge, the licensee may disconnect the subscriber's service outlet; provided, however, that such disconnection shall not be effected until thirty days after the due date of the charges and shall include a prior written notice to the subscriber of the intent to disconnect. After disconnection, upon payment in full of all proper charges or fees, including the payment of any reconnection charge, the licensee shall promptly reinstate the service. 8. A licensee may interrupt service on the cable system only for good cause and for the shortest time possible and, except in emergency situations, only after prior notice to subscribers and the council of anticipated interruption. No prior notice shall be required for the performance of system maintenance work requiring a maximum of one hour between the hours of six a.m. and twelve midnight, and four hours between the hours of twelve midnight and six a.m. 9. A licensee shall at all times comply with the subscriber privacy provisions of 47 U.S.C. Section 551. 10. No equipment shall be installed by the licensee for subscriber service without first securing a service request from the owner or resident of any private property involved, except in public utility easements. 11. A licensee shall not originate or knowingly permit subliminal transmission at any time for any purpose whatsoever. RESOLUTION 2019-58 PAGE 17 12. A licensee shall provide leased access channels as required under 47 U.S.C. Section 532. In the event that said federal provisions should cease to apply, the council reserves the right to promulgate other leased access requirements which shall apply, not to exceed those requirements specified in 47 U.S.C. Section 532 A.R.S. § 9-1442. 13. A licensee shall strictly adhere to the equal employment opportunity requirements of the FCC, 47 U.S.C. Section 554, state statutes and local regulations, and as the same may be amended from time to time. B. Cable System Construction Timetable. 1. A cable system shall be constructed in accordance with the provision of the license agreement. 2. It is the policy of the council to require construction of a cable system designed to serve subscribers in an area licensed by the council as rapidly and expeditiously as possible. The licensee shall immediately upon granting of the license agreement diligently pursue and obtain all necessary permits from the appropriate governmental agencies, utility companies and others as necessary to comply with the provision of this chapter and other federal, state and town laws, codes and resolutions. However, no construction shall begin until the notification requirements set forth elsewhere in this chapter are satisfied. 3. A cable system shall be constructed pursuant to a construction timetable specified in the license agreement. 4. Any delay beyond the terms of the timetable specified in the license agreement will be considered a violation of the terms of this chapter and the license agreement. Unless the licensee can establish that the delay was due to factors beyond its control, the licensee may be considered in default of the license agreement and the town manager may take whatever action the town manager is entitled to under this chapter and the license agreement. 5. The licensee shall not be considered in default of the applicable construction schedule if the council approves a modification of the schedule change in advance. In submitting a request for a construction schedule modification, the licensee must fully explain the reasons for the delay, in writing. The delay must be disapproved by the council if it is not reasonably justified, would have unreasonably discriminating results, or would unduly delay service to an area. Such a modification request shall be considered granted unless the licensee is notified by the council to the contrary in writing within forty-five days of the date on which the request was filed. 6. The council may require a licensee to report on construction progress and provide information showing specifically whether the construction schedule is being met and the reasons for the delay. The town manager shall determine the format to be used for the report and the frequency of reporting. 7. Where appropriate and reasonable, a licensee shall schedule construction activities to coordinate with any town construction on streets so as to avoid unnecessary inconvenience to the public. C. Line Extension Policy. RESOLUTION 2019-58 PAGE 18 Unless the license agreement provides otherwise, a licensee shall be required to extend its cable system pursuant to the following requirements: 1. Upon reasonable request for service by any person located within any area of the town that meets density requirements of paragraph 2 of this subsection, the licensee shall, within sixty days, furnish the requested service to such person, unless prevented from providing said service due to factors outside licensee's control, such as permit restrictions, private easement considerations, etc. If such service has not been implemented within ninety days of said request, the council may impose liquidated damages for each day thereafter. 2. The licensee must extend and make cable television service available to every unserved dwelling unit within any area of the town reaching the minimum density of at least twenty-five dwelling units per mile of plant as measured from licensee's nearest activated trunk or feeder line, whether the existing plant is aerial or underground, except that the licensee shall not be required to install cable where another authorized licensee has already done so. Licensee shall complete line extensions to an area reaching a density of at least five homes within 1,056 feet of existing active cable plant, or where an area has more than five homes, at least one home per 211 street feet including the distance to existing active cable plant. Upon request, this density requirement may be modified by the council for a specific licensee, provided said licensee demonstrates that it would be commercially impracticable if licensee's compliance with said requirement would create a significant adverse impact on the capital costs of licensee's Fountain Hills cable system. 3. The licensee shall prevent unnecessary damage to streets and property by installing cables or conduits underground in new single family subdivisions at the same time and in the same trench as telephone, electric or similar services are installed. Given reasonable notice, the licensee shall install underground cable or conduit in all new subdivisions of five or more dwelling units within the service area at the same time and in the same trench as telephone, electric or similar services are installed. Cable need not be installed or activated until the new subdivision meets the criteria established for line extensions. 4. The licensee must extend and make cable television service available to any resident requesting connection within the licensee's authorized service area at the regular installation charge if the connection to the resident would require no more than a one hundred fifty foot drop line, and provided that paragraph 2 of this subsection is met. 5. With respect to requests for connection requiring a drop line in excess of one hund red fifty feet, the licensee must extend service to such residents at a one time charge not to exceed the actual costs incurred by the licensee for the distance exceeding one hundred fifty feet. DB. Construction and Technical Standards. The following general requirements, which are not to be interpreted as imposing standards in excess of FCC imposed limits, OR LIMITS IMPOSED BY STATE LAW, apply to all licensees. 1. In those areas and portions of the service area where the transmission and distribution facilities of the telephone company and the electric company are underground or later RESOLUTION 2019-58 PAGE 19 placed underground, the licensee shall likewise install its transmission facilities underground. 2. In areas where facilities do not have to be underground, a licensee shall not erect any new poles along any street or public way of the town except as may be reasonably required or necessary to fill small gaps in the existing aerial utility systems and only then with the advance approval of the council. 3. All television signals transmitted on a cable system must include any closed captioning information for the hearing impaired. Antennas, supporting structures and outside plant used in the system must be designed to comply with the recommendations of the Electronics Industries Association and applicable federal and local regulations on tower structures and outside plant. 4. The licensee must perform at its expense any proof of performance tests designed to demonstrate compliance with the requirements of this chapter, the license agreement, and the FCC. The town manager may require periodic proof of performance tests to be performed at the expense of the licensee. Upon request, the licensee must provide the test results promptly to the town manager. 5. The licensee must advise the town manager when a proof of performance test is scheduled so that the town manager may have an observer present. 63. A licensee must not design, install or operate its facilities in a manner that will interfere with the signals of any broadcast station, the electrical system located in any building, the cable system of another licensee, or individual or master antennas used for receiving television or other broadcast signals. 4. THE LICENSEE SHALL PREVENT UNNECESSARY DAMAGE TO STREETS AND PROPERTY BY INSTALLING CABLES OR CONDUITS UNDERGROUND IN NEW SINGLE-FAMILY SUBDIVISIONS AT THE SAME TIME AND IN THE SAME TRENCH AS TELEPHONE, ELECTRIC, OR OTHER SIMILAR SERVICES ARE INSTALLED. GIVEN REASONABLE NOTICE, THE LICENSEE SHALL INSTALL UDNERGROUND CABLE OR CONDUIT IN ALL NEW SUBDIVISIONS OF FIVE OR MORE DWELING UNITS WITHIN THE SERVICE AREA AT THE SAME TIME AND IN THE SAME TRENCH AS TELEPHONE, ELECTRIC, OR SIMILAR SERVICES ARE INSTALLED. CABLE NEED NOT BE INSTALLD OR ACTIVATED UNTIL THE NEW SUBDIVISION METS THE CRITERIA ESTABLISHED FOR LINE EXTENSIONS. EC. Maintenance Specifications 1. The licensee shall construct, install and maintain its cable system in an orderly and workmanlike manner. The safety of the general public, the licensee's employees, the employees of the utility companies and all nearby property owners shall be a primary concern. 2. All cables are to be installed, to the maximum extent possible, parallel with electric and telephone distribution facilities. Multiple-cable configurations shall be arranged in parallel and bundled to the maximum extent possible. RESOLUTION 2019-58 PAGE 20 3. As between licensee and the town, the licensee shall be solely and completely responsible for the actions taken by any contractor or other agent employed to construct or install the licensee's facilities on streets as well as on public or private property. 4. The licensee shall give prior written notice, as set forth later in this article, of its intent to place underground facilities. Failure to provide such notice may subject a licensee to liquidated damages pursuant to Article 13-9 of this chapter or other enforcement sanctions. 5. In addition, the licensee shall comply with all other town, state and federal laws and regulations which may be applicable to its operations. 6. A licensee shall have available at all hours personnel capable of responding to emergency conditions requiring immediate repair to any facility owned by the state, county, town or the gas, electric and telephone utilities, as well as pipeline companies or similar industries. The licensee shall respond to normal requests for location of its facilities within forty-eight hours. The licensee shall be a member of the One Call Notification Center, or comply with state underground law, for its service area. In the event that licensee property, or the facilities and equipment of unauthorized cable communication providers, has been installed in a street or other dedicated public right-of- way without complying with the requirements of this chapter, or the license has been terminated, revoked or expired, or the use of any licensee property is discontinued for any reason for a continuous period of three months, licensee or any unauthorized cable communication provider, shall at its sole expense on the demand of the council remove promptly from the street all licensee or unauthorized cable communication provider property other than that which the council may permit to be abandoned in place. Upon such removal of subject property, licensee or unauthorized cable communication provider shall promptly restore the street or other public places from which the subject property was removed to a condition as near as possible to its prior condition. Subject property no longer in service may be left in place with the approval of and in a manner prescribed by the council. Upon abandonment of said property in place, licensee or unauthorized cable communication provider shall deliver to the council an instrument transferring ownership of the subject abandoned property to the town. Any cost arising from compliance with this provision shall be borne by the licensee or unauthorized cable communication provider. FD. Use of Streets 1. A licensee must utilize, with the owner's permission, existing poles, conduits or such other facilities whenever possible. Underground street, sidewalk and driveway crossings not using existing conduits shall be bored unless specific council approval is received. A licensee may install its own poles only when approved by the council and subject to whatever reasonable terms the council requires. 2. All transmission lines and other equipment must be installed and located to minimize interference with the rights and reasonable convenience of public and private property owners. The council reserves the right to issue such reasonable rules and regulations concerning the installation and maintenance of cable systems in the public rights-of-way, as may be consistent with this chapter, state and federal law. RESOLUTION 2019-58 PAGE 21 3. The licensee shall have at all times up-to-date route maps showing trunk and distribution lines. Licensee shall make all such maps available for review by the appropriate town personnel. 4. Suitable safety devices and practices as required by town, state and federal laws, ordinances, regulations and permits must be used during construction and maintenance of a cable system. 5. A licensee must remove, replace or modify at its own expense, any of its facilities within any public right-of-way when required to do so by the town manager to allow the town to change, maintain, repair, improve or eliminate a public thoroughfare. Nothing in this article shall prevent licensee from seeking and obtaining reimbursement from sources other than the town. 6. On streets where electrical and telephone utility wiring are located underground, either at the time of initial construction or subsequently, the cable must also be located underground at the licensee's expense. Between a street or road and subscriber's residence, the cable must be located underground if both electrical and telephone utility wiring are located underground. If either electric or telephone are aerial, licensee may install aerial cable except where a property owner requests underground installation and agrees to bear the additional cost over aerial installation. 7. A licensee must obtain any required permits before doing any excavation or causing disturbance to public thoroughfares or private property as a result of its construction or operations and must restore to their former condition such private property and public thoroughfares, the latter in a manner consistent with all applicable rules, regulations, resolutions or other town manager requirements relative to construction, repair or maintenance in public rights-of-way. If such restoration is not satisfactorily performed within a reasonable time in the opinion of the town manager, the town manager may, after prior notice to licensee, cause the repairs to be made at the expense of the licensee. The town manager may inspect ongoing construction and require a licensee to halt construction where the town manager finds the construction to be in non-compliance with the requirements of this chapter, the license agreement or a permit. 8. Prior to commencement of underground construction a licensee must have complied with the following requirements: a. Have received a permit from the council for construction on public property or rights-of-way; ba. Have requested and received clearance from utilities in the area of construction; cb. Where new construction will be on private property or in public rights-of-way adjoining private property, have provided no less than seven days written notice by mail or hand delivered to all such property occupants. The notice shall include the name, address and toll-free phone number that the affected person may call for more information or to lodge a complaint. 9. At the request of any person holding a valid building moving permit and upon sufficient notice, the licensee must temporarily raise, lower or cut its wires as necessary to facilitate RESOLUTION 2019-58 PAGE 22 such move upon not less than seventy-two hours advance notice. The direct expense of such temporary move must be paid by the permit holder, and the licensee may require payment in advance. GE. System Services and Capability 1. The following minimum requirements for facilities and services apply to licenses. The council may require that a licensee exceed these minimum requirements. a. Except as provided in the license agreement, a cable system must have a minimum capacity of fifty-four video channels available for immediate or potential use. Two-way capability shall be designed into the system. Upon request, this minimum channel capacity may be modified by the council for a specific licensee, provided said licensee demonstrates that it would be commercially impracticable to comply with said requirement. A licensee shall have the burden of demonstrating, by clear and convincing evidence, that compliance with the minimum channel capacity would be commercially impracticable for its Fountain Hills cable system. ba. Standard installation and basic service to public buildings may be required without charge as set forth in the license agreement IN ACCORDANCE WITH A.R.S. § 9-1442. Licensee may be required to make available, one service outlet to a conveniently accessible point in each school, police station, fire station and town hall or other facility or building located within the license area and used for public purposes as may be designated by the town manager. The installation charge to each occupant, if any, would not exceed licensee's direct cost (time and material). There may also be a minimum monthly service charge at the above locations. Cb. A licensee must design its system to allow the council to interrupt audio portions of the cable service in an emergency to deliver information to subscribers. d. A licensee must provide standby power for the headend so as to be able to operate some channels during a power outage for a minimum of six hours or as provided for in the license agreement. 2. The council may waive minimum requirements for licenses where the applicant demonstrates that such waiver is in the public interest. 3. The following requirements apply to access and community programming channels: a. Applications for a license shall include proposals for the provision of educational and governmental access channel sufficient to meet community needs during the term of the license as determined by the council. A licensee or applicant shall specify what grants, if any, it is willing to make for studio equipment and facilities to be used for local program production by all cable access users. Applicants are encouraged to include proposals for local origination programming by the licensee. b. All access channel operations must conform to the following minimum requirements: RESOLUTION 2019-58 PAGE 23 1) Access channels shall be carried on the licensee's lowest priced service offering. 2) The license may require a licensee or other entity to manage the access channels and to establish reasonable rules for the use of access channels consistent with the requirements of this chapter and the intended purpose of such channels. 3) The use of any educational access channel shall be made available free of charge to schools and other qualified educational institutions for the transmission of local educational programming. 4) The use of any local government access channels shall be made available free of charge to the council for the transmission of government related programming. 5) The licensee shall submit to the council on an annual basis a plan for publicizing access programs and access use. c. At the request of a licensee the council may promulgate rules under which channel capacity dedicated to access use may be used by the licensee when it is not being used for access purposes. d. A license shall include a provision for the licensee to provide channel capacity for community programming on terms and conditions specified in the license agreement. 3. ALL ACCESS CHANNELS OPERATIONS MUST CONFORM TO THE REQUIREMENTS OF A.R.S. § 9-1442. H. Interconnection 1. A licensee shall interconnect its cable system with other or all other systems located in the town, in nearby cities, or in the county upon the request of the council, where economically and technically feasible. 2. Upon receiving the request of the council to interconnect, a licensee shall initiate negotiations with the other affected systems in order that technical details be resolved and costs may be shared on an equitable basis. I. Local Broadcast Channels Each cable system shall carry as part of the basic service local channels broadcast in its area as required and defined in current FCC regulations. In this regard, those parts of 47 C.F.R. Part 76 relating to carriage of local channel signals as existing, or as may be amended, shall apply and are incorporated herein by reference. J. Technology Review 1. The town and licensee shall meet at periods not exceeding three years or upon request of either to discuss changes in cable television laws, regulations, technology, competing services, the needs of the community and other factors impacting cable television. As a result of these discussions, this license may be modified by the town and the licensee to RESOLUTION 2019-58 PAGE 24 respond to the change in laws, regulations, technology, competing services, the needs of the community or other factors impacting cable television. 2. If any of the following conditions occur, and upon written request of either licensee or town, the town manager and licensee agree to meet and discuss in good faith the terms of a mutually agreeable license amendment: a. Cable service similar to cable television service offered by licensee is provided by any entity using the streets and public ways, which is not subj ect to similar licensing requirements of the town. b. The Cable Act is amended to allow licensee to provide intrastate or interstate telecommunication and any regional Bell operating company to provide cable service. c. Any other significant event occurs, including but not limited to a final non- appealable order or judgement by a court of competent jurisdiction, which either licensee or town believes may impact the current terms and conditions of the license. The purpose of the meeting and discussion is to use best efforts to reach mutually acceptable agreement for recommendation to the council for proposed council action within ninety days of such written request, on how to amend the license to relieve town or the licensee from any commercial impracticability, which arises from the condition in question. This provision shall not require that the license be amended, however it is intended to facilitate a process whereby the parties may reach a mutually acceptable agreement. RESOLUTION 2019-58 PAGE 25 Article 13-9 FEES, BONDS, LETTERS OF CREDIT, LIQUIDATED DAMAGES AND APPEALS A. Application Fee Each application for a license to be granted under the authority of this chapter shall be accompanied by a non-refundable filing fee in such amount as approved by the Council by resolution or as part of the Towns annual budget ACCORDANCE WITH A.R.S.§ 9-1443, by certified or cashier's check made payable to the town. BA. License Fee 1. In consideration of the fact the streets of the town will be used by a licensee in the operation of its cable system within the boundaries of the town and said streets are valuable properties acquired and maintained by the town at great expense to its taxpayers, and in consideration of the costs incurred by the town in regulating and administering each cable license, the licensee shall pay to the town up to five percent of the licensee's gross annual revenue, from all sources attributable to the operations of the licensee within the licensed area. 2. This payment shall be computed quarterly, for the preceding quarter, as of March 31, June 30, September 30 and December 31 of each year. Each quarterly payment shall be due and payable no later than thirty days after the relevant computation date. Each payment shall be accompanied by a financial report showing in detail the gross revenues of the licensee related to that quarter. 3. Except as provided in paragraph 8 of this subsection, the payment required pursuant to this article shall be in addition to any other tax or payment owed to the town pursuant to any other applicable ordinance or chapter of the town code, regulation or law of the County, State or federal government. 4. A license fee not received in full by the town within thirty days of its due date shall be deemed delinquent and subject to a late fee. The late fee for delinquent payment shall be five percent of the amount overdue plus interest at the rate of one and one-half percent per month, or parts thereof. 5. Where the licensee fee is based on gross revenues, the licensee shall file, with each license payment, a statement of the gross revenues for the period on which the fees are based. Such a licensee must file within three months of the end of its fiscal year a statement of gross revenues for the preceding year, which is either audited or certified as accurate by an officer of the licensee. Any payment of license fees to adjust for a shortfall in the quarterly payments for the preceding year must be made not later than the filing date for the audited annual statement of gross revenues. Adjustments for any overpayment will be credited to subsequent quarterly payments. Interest and late charges (as specified above) will not be imposed for any payment necessary as a result of the yearly adjustment if the payment to correct the shortfall does not exceed ten percent of the total payments made during the preceding year. In the event such payment exceeds ten percent, the licensee is liable for interest and late charges for the entire amount due. RESOLUTION 2019-58 PAGE 26 5. The town manager shall have the right, upon reasonable notice, to inspect or audit during normal business hours a licensee's records showing the gross revenues and other relevant underlying data and information IN ACCORDANCE WITH A.R.S. § 9-1445. Upon examination of such information, the town manager has the right to recompute any and all amounts paid under a license. Any additional amounts due the town as a result of an audit shall be paid by the licensee within thirty days following written notice to the licensee by the council, which shall include a copy of the inspection or audit report. In the event that an inspection or audit results in additional monies owed the town in excess of five percent of the total paid, the licensee shall bear the total cost of the audit, and late charges and interest on the additional amount due. 76. No acceptance by the council of any payment shall be construed as an accord that the amount paid is in fact the correct amount nor shall such acceptance of payment be construed as a release of any claim the council may have. 87. There shall be allowed as an offset against the license fee due under this article any amounts licensee paid to the town during the prior quarter in privilege license (sales) taxes; provided, however, that there shall be no offset to the extent that licensee made payments of privilege license (sales) taxes on any gross income (within the meaning of the privilege license [sales] tax ordinance) which is not included in gross revenues under this chapter. The license shall provide for suitable procedures and methods for audit of this offset. CB. Performance Bond 1. Within thirty days after the execution of the license agreement and prior to any construction work in the public right-of-way, the licensee shall file with the town manager a performance bond, or a letter of credit in a form acceptable to the town attorney, in the town's favor in the amount of fifty thousand dollars, or as specified in the license agreement. In the event that licensee fails to comply with any provision of this chapter or the license agreement, then there shall be recoverable jointly and severally from the principal and surety any and all damages or costs suffered by the town. These damages or costs shall include but not be limited to attorney's fees, cost of any action or proceeding and including the full amount of any compensation indemnification, cost of removal or abandonment of any property or other costs due and owing the town up to the full amount of such bond. 2. At such time as ninety-five percent of planned construction in the town is complete, as specified in license agreement, the council may, at licensee's request, reduce or eliminate the performance bond requirement. 3. The bond shall be issued by a surety company authorized to do business in the State of Arizona and shall be in a form approved by the town attorney, and contain the following endorsement: "This bond may not be canceled, or allowed to lapse, until sixty days after receipt by the council, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew." RESOLUTION 2019-58 PAGE 27 4. The rights reserved by the council with respect to the bonds required are in addition to all other rights and remedies the council may have under this chapter, the license agreement or any other law. DC. Irrevocable Letter of Credit 1. Within thirty days after written notification of the award of license by the council, the selected applicant shall provide the town manager a letter of credit from a financial institution licensed to do business in Arizona in the amount of ten thousand dollars, or as specified in the license agreement, as security for the faithful performance by licensee of all provisions of this chapter and compliance with all orders, permits and directions of any department of the town. 2. The form and content of such letter shall be approved by the town attorney and contain the following endorsement: "This letter of credit may not be canceled or allowed to lapse until thirty days after receipt by the town manager, by certified mail, return receipt request, of a written notice from the issuer of the letter of credit of its intent to cancel or not to renew." In the event the letter of credit is insufficient to pay the town for any compensation, damages, penalties, costs or expenses owed it pursuant to this chapter or the license agreement, the licensee's performance bond may be drawn upon by the town manager for any amount due the town over and above the amount of the letter of credit. 3. Within fifteen days after written notice to licensee by the town manager that the town manager has withdrawn any amount from the letter of credit, licensee shall deposit or pay to the town manager a sum of money sufficient to restore such letter of credit to the original amount of ten thousand dollars, or as specified in the agreement. 4. If a licensee fails to pay the town: any compensation within the time fixed by this chapter or the license agreement; any taxes due; or any damages, costs or expenses which the town incurs by reason of any act or default of the licensee; or if the licensee fails to comply with any provision of the license agreement which failure the town manager determines can be remedied or partially cured by demand on the letter of credit, the town manager may, following ten days notice to the licensee, withdraw from the letter of credit the amount so claimed by the town manager if within such period the licensee has not remedied the matter. The town manager shall immediately notify licensee of any such withdrawal, the date and amount. 5. The rights reserved to the town manager with respect to the letter of credit are in addition to all other rights it may have under this chapter, the license agreement and any other law. 6. Failure to maintain the letter of credit as required shall constitute a violation of the provisions of this chapter. E. Liquidated Damages All license agreements shall contain provisions for liquidated damages, in amounts as mutually agreed upon between the town manager and the licensee, for the licensee's failure to comply with various requirements of this chapter and the license agreement as specified below. All references RESOLUTION 2019-58 PAGE 28 to notices throughout this subsection shall be by certified or registered mail, return receipt requested. 1. For failure to substantially complete construction or line extensions as required, unless the council specifically approves a delay caused by the occurrence of conditions beyond the licensee's control, the licensee shall pay five hundred dollars per day for each day, or part thereof, the deficiency continues after licensee has been given notice of such deficiency and seven days within which to cure it pursuant to paragraph 8 of this subsection. 2. For material failure to provide data, documents, reports and information in a timely manner as required, the licensee shall pay one hundred dollars per day, or part thereof, that each violation occurs or continues after licensee has been given notice of such deficiency and seven days within which to cure it pursuant to paragraph 8 of this subsection. 3. For material failure to test, analyze and report on the performance of the system following a request from the town manager to do so, the licensee shall pay one hundred dollars per day for each day, or part thereof, that such noncompliance continues after licensee has been given notice of such deficiency and seven days within which to cure it pursuant to paragraph 8 of this subsection. 4. Failure to substantially comply with the material provisions of Article 13-8 of this chapter, the licensee shall pay one thousand dollars per day for each day, or part thereof, that the violation continues after licensee has been given notice of such deficiency and seven days within which to cure it pursuant to paragraph 8 of this subsection. 5. For substantial failure to remedy any other violation of the chapter or the license agreement within seven days of receipt of notice of each violation, the licensee shall pay three hundred dollars per day for each day, or part thereof, that the violation continues after licensee has been given notice of such deficiency and seven days within which to cure it pursuant to paragraph 8 of this subsection. 6. For failure to substantially comply with reasonable orders of the town manager, the licensee shall pay fifty dollars per day for each day, or part thereof, that noncompliance continues after licensee has been given notice of such deficiency and seven days within which to cure it pursuant to paragraph 8 of this subsection. 7. Liquidated damages will not be imposed by the town manager if the town manager finds that the failure of the licensee resulted from conditions beyond the licensee's control. Liquidated damages may be reduced or eliminated by the town manager if the town manager finds that the failure of the licensee resulted from excusable neglect. The licensee shall bear the burden of proof in establishing the existence of such conditions. 8. Prior to assessing any of the liquidated damages set forth in this article, the town manager shall give licensee seven days written notice of its intention to assess such damages. In said notice, the town manager shall set forth, at a minimum, the following: a. amount to be assessed; b. factual basis for such assessment; and RESOLUTION 2019-58 PAGE 29 c. specific license provision alleged to have been violated. Following receipt of notice set forth in this article, licensee shall have a seven day period during which time licensee and the town manager shall make reasonable efforts to resolve the dispute in question. Collection of liquidated damages by the town for any breach shall constitute the town's exclusive remedy for the period for which liquidated damages were collected. 2. The imposition and collection of liquidated damages as set forth above shall not prevent the town manager from pursuing other remedies for other violations of either the article or the license agreement for which liquidated damages have not been imposed and collected. F. Appeals 1. In the event that licensee contests the town manager's assessment of liquidated damages, or fails to respond to the above mentioned notices, within fourteen days the town manager shall convene an administrative hearing as specified in subparagraph a of this paragraph. Licensee may pay the fine, proceed with this hearing, or waive its rights to this administrative hearing and proceed directly to the public hearing before the council, as specified in subparagraph b of this paragraph. a. This shall be an administrative hearing, and licensee shall be afforded procedural due process, including an opportunity to be heard and to present evidence. Within fourteen days after the conclusion of such administrative hearing, the town manager shall issue a determination. In that determination the town manager may: 1) find that licensee is not in violation of this chapter or the license agreement; 2) find that licensee is in violation of this chapter or the license agreement, but that violation was with just cause and waive any penalty that might otherwise be imposed; 3) find that licensee is in violation of this chapter or of the license agreement, take corrective action and foreclose on all or any appropriate part of the letter of credit or performance bond provided for elsewhere in this chapter; 4) find that licensee is in material violation of this chapter and the license agreement and recommend the council declare the licensee in violation and terminate the license agreement, provided the council may take such action only after a public hearing as set forth in subparagraph b of this subsection. b. If a public hearing before the council is requested by licensee or is held pursuant to item 4 of subparagraph a of this paragraph, it shall be de novo and it shall convene within thirty days of the request thereof. Licensee shall be afforded full due procedural process, including without limitation, an opportunity to be heard and to present evidence. The council's decision, which shall include findings of fact RESOLUTION 2019-58 PAGE 30 and conclusions shall be made not later than thirty days after the conclusion of the hearing. In that decision, The council may: 1) find that licensee is not in violation of this chapter or the license agreement; 2) find that licensee is in violation of this chapter or the license agreement, but that violation was with just cause and waive any penalty that might otherwise be imposed; 3) find that licensee is in violation of this chapter or of the license agreement, take corrective action and foreclose on all or any appropriate part of the letter of credit and/or performance bond provided for elsewhere in this chapter; 4) find that licensee is in material violation of this chapter and the license agreement and declare the licensee in violation and revoke the license agreement pursuant to Article 13-10. RESOLUTION 2019-58 PAGE 31 Article 13-10 TERMINATION - REVOCATION A. Termination The license shall terminate, upon the expiration of the term thereof, unless renewal is successfully applied for, per Article 13-11. B. Revocation 1. If a licensee is in material violation of this chapter or in default of the terms of its license agreement, the town manager may make written demand that the licensee come into compliance with said requirements within a reasonable period of time, as specified in Article 13-9. If the licensee is unwilling or unable to do so, the town manager may recommend the revocation, alteration or suspension of the license to the council, specifying the reasons for such action.IF THE LICENSEE IS UNWILLING TO DO SO, THE TOWN MANAGER MAY TAKE ACTION IN ACCORDANCE WITH A.R.S. § 9-1451. 2. A copy of any such recommendations shall be served by certified or registered mail, return receipt requested upon the licensee, and the licensee shall be given at least fourteen days notice prior to the date of a public hearing before the council to consider such action, and the licensee will be given an opportunity to present evidence and made argument at such meeting. 3. The council shall consider the recommendations, the response of the licensee, and hear from any other interested persons, and shall determine whether or not the licensee is in violation or default of its obligations and, if so, whether such failure was with just cause. 4. If the council finds that the failure by the licensee was with just cause, the council shall direct the licensee to comply within such time and manner and upon such terms and conditions as are reasonable. 5. If the council determines that the licensee's failure was without just cause, the council may declare the license revoked, altered or suspended. The council may provide a specified period of time for the licensee to come into compliance before the revocation takes effect. 6. A license may be revoked, altered or suspended by the council on the following grounds, among others, and taking into account any ameliorating circumstances: a. Fails to comply with any material provision of this chapter or the license agreement. b. Makes willful false or misleading statements in any application. c. Engages in the practice of any fraud or deceit upon the town or subscribers. d. Fails to abide by the privacy provision of this chapter. RESOLUTION 2019-58 PAGE 32 e. Fails to make timely payment of any monies due the town pursuant to this chapter. f. Unless otherwise provided in the license agreement, fails to commence construction in the license area within three months and to commence basic service within six months form the effective date of the license agreement. g. Fails to file and maintain the bonds, insurance, records, failure to pay license fees or assessed property taxes. h. For repeated material failure to maintain service quality under the standards prescribed. i. Fails to restore service after forty-eight consecutive hours after notice to the licensee or interrupted service to the entire system, except when such interruption is beyond the control of the licensee. C. System Disposal In the event of termination or revocation of a license, the licensee involved shall offer to sell the cable system, at the fair market value, to a new licensee or applicant for a license. The fair market value shall be determined in accordance with generally accepted appraisal procedures. The original cost of all tangible and intangible property, as well as salvage value, book value, replacement cost, cash flow and other factors will be considered. Under no circumstances shall any valuation be made for any right or privilege granted by license. Should the licensee fail to negotiate a sale, as described above, the town may purchase the system at the fair market value for the purpose of leasing to a qualified operator until a buyer can be found, pursuant to the provisions of A.R.S. §9-509. D. Continuity of Service Licensee shall provide continuous service for the entire term of the license agreement to all subscribers and users in return for payment of the established rates, fees and charges. If licensee seeks to sell or transfer, or if the town revokes or fails to renew the license, licensee shall continue to operate the system as trustee for its successor in interest until an orderly and lawful change of operation is effected. This period of operation shall not exceed one hundred twenty days from the occurrence of any of the above events. Revenues accrued during that period of time shall be received by the operator. During such time, the cable system shall be operated under terms and conditions consistent with the most recent license agreement and this chapter. RESOLUTION 2019-58 PAGE 33 Article 13-11 RENEWAL EXTENSION A. If a licensee decides to initiate a formal license renewal EXTENSION process in accordance with 47 U.S.C. Section 546 A.R.S. § 9-1420 OR OTHER APPLICABLE LAW , it must notify the council TOWN CLERK within thirty to thirty-six months ONE MONTH prior to the license expiration date. B. In considering a renewal application, the council must consider whether: 1. The licensee has substantially complied with the material terms of the existing license and applicable law; 2. The quality of licensee's service, including signal quality, customer service complaint resolutions, billing practices (without regard to mix, quality or level of cable services) has been reasonable in light of community needs; 3. The licensee has the financial, legal and technical ability to provide services, facilities and equipment set forth in its renewal proposal; and 4. The licensee renewal proposal is reasonable to meet the future cable-related needs and interests of the community, taking into account the cost of meeting such needs and interests. C. If the council's assessment is that the license should not be renewed, the council may commence an administrative hearing in accordance with 47 U.S.C. Section 546. D. The provisions of 47 U.S.C. Section (a) - (g) notwithstanding, a licensee may submit an application for renewal in accordance with Section (h), which affords a cable operator the opportunity to submit a proposal for the renewal of a license at any time. The council may, after adequate public notice and comment, grant or deny such proposal. E. The renewal of a license does not become effective until any renewal fees have been paid by the licensee. RESOLUTION 2019-58 PAGE 34 Article 13-12 TRANSFERS AND CHANGE OF CONTROL RESERVED A. Licensee shall not sell, transfer, assign, exchange or release, or permit the sale, transfer, assignment, exchange or release of more than forty-nine percent of the cumulative ownership of the system without prior written authorization from the council. For the purposes of this article, a merger or consolidation shall be deemed a transfer or assignment. The town manager shall be promptly notified in writing, within sixty days of the effective date of any such sale, transfer, assignment, exchange or release which constitutes more than five percent of the cumulative ownership of the system. Nothing in this article shall be deemed to prohibit a pledge or hypothecation or mortgage or similar instrument transferring conditional ownership of the systems assets to a lender or creditor in the ordinary course of business, unless such interest shall exceed seventy-five percent of the original cost or the fair market value, whichever is higher. B. No Licensee shall sell, transfer, assign, exchange or release, or permit the sale transfer, assignment, exchange or release of more than ten percent of the cumulative ownership of the system, during the thirty-six month period commencing on final award to a licensee by the council, without expressed written consent of the council. RESOLUTION 2019-58 PAGE 35 Article 13-13 INDEMNITY-INSURANCE A. The licensee shall at its sole cost and expense, indemnify, hold harmless and defend the town, its officials, boards, commissions, agents and employees by providing immediate defense with counsel approved by the council, against any and all claims, suits, causes of action, proceedings and judgments for damages arising out of construction, maintenance or operation of the cable communication system. B. The licensee, within thirty days after written notice of the granting of a license, shall provide the town with and maintain in full force throughout the term of the license agreement, insurance issued by a company duly authorized to do business in the State of Arizona, insuring with respect to the installation, construction, operation and maintenance of the system as follows: 1. Comprehensive general and automobile liability coverage including, but not limited to, blanket contractual liability, completed operations liability, broad form property damage including but not limited to coverage for explosion, collapse, underground hazard and automobile non-ownership liability. This insurance shall be written in the following minimum amounts. a. Comprehensive general liability: $1,000,000 combined single limit, bodily injury and property damage b. Comprehensive automobile liability: $1,000,000 combined single limit, bodily injury and property damage c. Excess umbrella liability, covering all the above mentioned hazards, in the minimum amount of $4,000,000. 2. Workers' compensation coverage as required by the laws and regulations of the State of Arizona. 3. All insurance policies required herein shall include the town of Fountain Hills as a named insured party. 4. Licensee shall be solely responsible for all premiums due and payable for insurance required herein. Licensee shall provide to the town a certified copy of the policies listed above. 5. All insurance policies required herein shall be in a form approved by the town attorney and shall include a sixty day notice of cancellation or modifying endorsement. C. The provisions of subsection B of this article, in the discretion of the town, be satisfied by proof of self insurance. RESOLUTION 2019-58 PAGE 36 Article 13-14 ADMINISTRATION A. Inspection of Records. The council reserves the right during the term of the license agreement and during normal business hours and upon the giving of reasonable notice to examine, audit, review and obtain copies of licensee's contracts, engineering plans, accounting, financial data and service records relating to the property and operations of the licensee and to all other records required to be kept pursuant to this chapter AND A.R.S. § 9-1415. B. Licensee Rules and Regulations. Copies of such rules, regulations, terms and conditions adopted by the licensee for the conduct of its business shall be provided to the town manager, upon request of the town manager. C. Town Manager. The town manager or his designee shall have responsibility for the day-to-day administration of cable communication operations within the town as governed by this chapter and the applicable license agreements. The town manager shall be empowered to take all administrative actions on behalf of the council except those actions specified herein which are reserved to the council or another town office or officer. RESOLUTION 2019-58 PAGE 37 Article 13-15 GENERAL PROVISIONS A. Non-Discrimination. Licensee shall not deny service, access or otherwise discriminate against subscribers, users or residents of the town. Licensee shall comply at all times with all applicable federal, state and town laws, rules and regulations, executive and administrative orders relating to non-discrimination and equal employment opportunities and requirements. B. Laws and Codes. Licensee shall comply fully with all applicable local, county, state and federal laws, codes, ordinances, rules and regulations. C. Cumulative Rights and Remedies. Except as specified herein, all rights and remedies of the town manager and the council in this chapter are cumulative and may be exercised singly or cumulatively at the discretion of the town manager or the council. RESOLUTION 2019-58 PAGE 38 Article 13-16 RIGHTS RESERVED TO THE COUNCIL Without limitation upon the rights which the council may otherwise have and subject to paragraph 9, subsection B of Article 13-7, the council does hereby expressly reserve the right to amend any article or provision of this chapter for any reason determined to be desirable by the council including, but not limited to: A. New developments in the state of technology of cable communications systems. B. Any changes in federal or state laws, rules or regulations ORDINANCE NO. 19-18 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING CHAPTER 13, CABLE COMMUNICATIONS, OF THE FOUNTAIN HILLS TOWN CODE BY ADOPTING THE “2019 AMENDMENTS TO CHAPTER 13, CABLE COMMUNICATIONS, OF THE FOUNTAIN HILLS TOWN CODE,” BY REFERENCE ENACTMENTS: NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That certain document known as the “2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code,” copies of which are on file in the office of the Town Clerk and made a public record by Resolution No. 2019-58, is hereby referred to, adopted and made a part hereof as if fully set out in this ordinance. PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 3rd day of December, 2019. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Elizabeth A. Burke, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney - i - Conference Engrossed State of Arizona Senate Fifty-third Legislature Second Regular Session 2018 CHAPTER 331 SENATE BILL 1140 AN ACT AMENDING TITLE 9, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 13; AMENDING SECTION 41-1092.01, ARIZONA REVISED STATUTES; RELATING TO VIDEO AND CABLE SERVICE PROVIDERS. (TEXT OF BILL BEGINS ON NEXT PAGE) S.B. 1140 - 1 - Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Title 9, Arizona Revised Statutes, is amended by adding 2 chapter 13, to read: 3 CHAPTER 13 4 VIDEO SERVICE 5 ARTICLE 1. GENERAL PROVISIONS 6 9-1401. Definitions 7 IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES: 8 1. "AFFILIATE" MEANS A PERSON THAT DIRECTLY OR INDIRECTLY, THROUGH 9 ONE OR MORE INTERMEDIARIES, CONTROLS, IS CONTROLLED BY OR IS UNDER COMMON 10 CONTROL WITH A VIDEO SERVICE PROVIDER. 11 2. "AGREEMENT" MEANS ANY AGREEMENT OR CONTRACT. 12 3. "BOUNDARIES OF A LOCAL GOVERNMENT" OR "BOUNDARIES" MEANS: 13 (a) FOR A CITY OR TOWN, ALL OF THE AREA WITHIN THE CORPORATE LIMITS 14 OF THE CITY OR TOWN. 15 (b) FOR A COUNTY, ALL OF THE AREA OF THE COUNTY THAT IS NOT WITHIN 16 THE CORPORATE LIMITS OF ANY CITY OR TOWN, INCLUDING UNINCORPORATED 17 TERRITORY THAT IS SURROUNDED ON ALL SIDES BY A COMBINATION OF ONE OR MORE 18 CITIES, TOWNS OR INDIAN RESERVATIONS. 19 4. "CABLE OPERATOR" HAS THE SAME MEANING PRESCRIBED IN 47 UNITED 20 STATES CODE SECTION 522. 21 5. "CABLE SERVICE" HAS THE SAME MEANING PRESCRIBED IN 47 UNITED 22 STATES CODE SECTION 522. 23 6. "CABLE SYSTEM" HAS THE SAME MEANING PRESCRIBED IN 47 UNITED 24 STATES CODE SECTION 522. 25 7. "COMMERCIAL MOBILE SERVICE PROVIDER" MEANS A PERSON THAT 26 PROVIDES COMMERCIAL MOBILE SERVICE AS DEFINED IN 47 UNITED STATES CODE 27 SECTION 332(d) OR COMMERCIAL MOBILE RADIO SERVICE AS DESCRIBED IN 47 CODE 28 OF FEDERAL REGULATIONS SECTION 20.9. 29 8. "DAY" MEANS A CALENDAR DAY, EXCEPT A SATURDAY OR SUNDAY OR A 30 HOLIDAY PRESCRIBED IN SECTION 1-301. 31 9. "GROSS REVENUE": 32 (a) MEANS ALL CASH, CREDITS, PROPERTY OF ANY KIND OR NATURE OR 33 OTHER CONSIDERATION THAT IS RECEIVED DIRECTLY OR INDIRECTLY BY A VIDEO 34 SERVICE PROVIDER, ITS AFFILIATES, OR ANY PERSON, FIRM OR CORPORATION IN 35 WHICH THE VIDEO SERVICE PROVIDER HAS A FINANCIAL INTEREST OR THAT HAS A 36 FINANCIAL INTEREST IN THE VIDEO SERVICE PROVIDER AND THAT IS DERIVED FROM 37 THE VIDEO SERVICE PROVIDER'S OPERATION OF ITS VIDEO SERVICE NETWORK TO 38 PROVIDE VIDEO SERVICE IN THE SERVICE AREA. 39 (b) INCLUDES ALL REVENUE FROM CHARGES FOR VIDEO SERVICE TO 40 SUBSCRIBERS AND ALL CHARGES FOR INSTALLATION, REMOVAL, CONNECTION OR 41 REINSTATEMENT OF EQUIPMENT NECESSARY FOR A SUBSCRIBER TO RECEIVE VIDEO 42 SERVICE AND ANY OTHER RECEIPTS FROM SUBSCRIBERS DERIVED FROM THE VIDEO 43 SERVICE PROVIDER'S OPERATION OF THE VIDEO SERVICE NETWORK TO PROVIDE VIDEO 44 SERVICE, INCLUDING RECEIPTS FROM FORFEITED DEPOSITS, SALE OR RENTAL OF 45 S.B. 1140 - 2 - EQUIPMENT TO PROVIDE VIDEO SERVICE, LATE CHARGES, INTEREST AND SALE OF 1 PROGRAM GUIDES. 2 (c) DOES NOT INCLUDE: 3 (i) ANY REVENUE NOT RECEIVED, EVEN IF BILLED, SUCH AS BAD DEBT NET 4 OF ANY RECOVERIES OF BAD DEBT OR ANY REFUNDS, CREDITS, ALLOWANCES OR 5 DISCOUNTS TO SUBSCRIBERS TO THE EXTENT THAT THE REFUND, REBATE, CREDIT, 6 ALLOWANCE OR DISCOUNT IS ATTRIBUTED TO VIDEO SERVICE. 7 (ii) REVENUE FROM COMMERCIAL ADVERTISING ON THE VIDEO SERVICE 8 NETWORK, THE USE OR LEASE OF STUDIO FACILITIES OF THE VIDEO SERVICE 9 NETWORK, INTERNET ACCESS SERVICE, THE USE OR LEASE OF ITS FACILITIES 10 LOCATED IN THE HIGHWAYS, THE USE OR LEASE OF LEASED ACCESS CHANNELS OR 11 BANDWIDTH, THE USE OR LEASE OF TOWERS, THE PRODUCTION OF VIDEO PROGRAMMING 12 BY THE VIDEO SERVICE PROVIDER, THE SALE, EXCHANGE, USE OR CABLECAST OF ANY 13 PROGRAMMING BY THE VIDEO SERVICE PROVIDER IN THE SERVICE AREA, SALES TO 14 THE VIDEO SERVICE PROVIDER'S SUBSCRIBERS BY PROGRAMMERS OF HOME SHOPPING 15 SERVICES, REIMBURSEMENTS PAID BY PROGRAMMERS FOR LAUNCH FEES OR MARKETING 16 EXPENSES, LICENSE FEES, TAXES OR OTHER FEES OR CHARGES THAT THE VIDEO 17 SERVICE PROVIDER COLLECTS AND PAYS TO ANY GOVERNMENTAL AUTHORITY, ANY 18 INCREASE IN THE VALUE OF ANY STOCK, SECURITY OR ASSET, OR ANY DIVIDENDS OR 19 OTHER DISTRIBUTIONS MADE FROM ANY STOCK OR SECURITIES. 20 10. "HIGHWAY" MEANS ALL ROADS, STREETS AND ALLEYS AND OTHER 21 DEDICATED PUBLIC RIGHTS-OF-WAY THAT ARE OPERATED AND MAINTAINED BY A LOCAL 22 GOVERNMENT. 23 11. "HOLDER" MEANS A VIDEO SERVICE PROVIDER THAT HAS BEEN ISSUED A 24 UNIFORM VIDEO SERVICE LICENSE PURSUANT TO THIS CHAPTER. 25 12. "HOLDOVER CABLE OPERATOR" MEANS AN INCUMBENT CABLE OPERATOR 26 THAT ELECTS UNDER SECTIONS 9-1412 AND 9-1413 TO CONTINUE TO OPERATE WITHIN 27 ITS SERVICE AREA PURSUANT TO ITS LOCAL LICENSE. 28 13. "INCUMBENT CABLE OPERATOR" MEANS A CABLE OPERATOR OR OTHER 29 VIDEO SERVICE PROVIDER THAT ON DECEMBER 31, 2019 IS PROVIDING VIDEO 30 SERVICE IN THIS STATE PURSUANT TO A LOCAL LICENSE. 31 14. "INFORMATION SERVICE" HAS THE SAME MEANING PRESCRIBED IN 47 32 UNITED STATES CODE SECTION 153. 33 15. "INTERACTIVE COMPUTER SERVICE" HAS THE SAME MEANING PRESCRIBED 34 IN 47 UNITED STATES CODE SECTION 230(f). 35 16. "LICENSE" MEANS A FRANCHISE AS DEFINED IN 47 UNITED STATES CODE 36 SECTION 522. 37 17. "LICENSE FEE" MEANS A LICENSE FEE IMPOSED BY A LOCAL GOVERNMENT 38 ON A VIDEO SERVICE PROVIDER FOR USING THE HIGHWAYS TO PROVIDE AND FOR THE 39 PRIVILEGE OF PROVIDING VIDEO SERVICE. 40 18. "LOCAL GOVERNMENT" MEANS ANY CITY, INCLUDING A CHARTER CITY, 41 TOWN OR COUNTY. 42 19. "LOCAL LAW" MEANS ANY CHARTER, CODE, ORDINANCE, RESOLUTION, 43 REGULATION OR OTHER LAW OF A LOCAL GOVERNMENT. 44 S.B. 1140 - 3 - 20. "LOCAL LICENSE" MEANS ANY LICENSE, AGREEMENT, PERMIT OR SIMILAR 1 AUTHORIZATION THAT MEETS ALL OF THE FOLLOWING: 2 (a) ALLOWS A PERSON TO CONSTRUCT OR OPERATE A VIDEO SERVICE NETWORK 3 WITHIN THE BOUNDARIES OF A LOCAL GOVERNMENT. 4 (b) IS ISSUED, GRANTED, APPROVED, EXTENDED OR RENEWED BY THE LOCAL 5 GOVERNMENT BEFORE JANUARY 1, 2020 PURSUANT TO THE AUTHORITY OF ANY 6 FEDERAL, STATE OR LOCAL LAW IN EFFECT AT THE TIME OF THE ISSUANCE, GRANT, 7 APPROVAL, EXTENSION OR RENEWAL. 8 (c) IS EFFECTIVE UNDER FEDERAL, STATE OR LOCAL LAW ON DECEMBER 31, 9 2019 FOR THE PERSON TO CONTINUE TO CONSTRUCT OR OPERATE A VIDEO SERVICE 10 NETWORK WITHIN THE BOUNDARIES OF A LOCAL GOVERNMENT. 11 21. "MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR" HAS THE SAME 12 MEANING PRESCRIBED IN 47 UNITED STATES CODE SECTION 522. 13 22. "SERVICE AREA" MEANS THAT PART OF THE BOUNDARIES OF A LOCAL 14 GOVERNMENT WITHIN WHICH A VIDEO SERVICE PROVIDER IS AUTHORIZED TO PROVIDE 15 VIDEO SERVICE PURSUANT TO A UNIFORM VIDEO SERVICE LICENSE OR A LOCAL 16 LICENSE. 17 23. "SUBSCRIBER" MEANS ANY PERSON IN THIS STATE THAT PURCHASES 18 VIDEO SERVICE. SUBSCRIBER DOES NOT INCLUDE ANY PERSON THAT PURCHASES 19 VIDEO SERVICE FOR RESALE AND THAT, ON RESALE, IS REQUIRED TO PAY A LICENSE 20 FEE PURSUANT TO THIS CHAPTER OR THE TERMS OF A LOCAL LICENSE. 21 24. "TELECOMMUNICATIONS": 22 (a) MEANS THE TRANSMISSION, BETWEEN OR AMONG POINTS SPECIFIED BY 23 THE USER, OF INFORMATION OF THE USER'S CHOOSING, WITHOUT CHANGE IN THE 24 FORM OR CONTENT OF THE INFORMATION SENT AND RECEIVED, REGARDLESS OF THE 25 FACILITIES, EQUIPMENT OR TECHNOLOGY USED. 26 (b) DOES NOT INCLUDE COMMERCIAL MOBILE RADIO SERVICE, PAY PHONE 27 SERVICE, INTERSTATE SERVICE OR CABLE SERVICE. 28 25. "TELECOMMUNICATIONS PROVIDER" MEANS A PERSON THAT IS REQUIRED 29 TO OBTAIN FROM THE CORPORATION COMMISSION A CERTIFICATE OF PUBLIC 30 CONVENIENCE AND NECESSITY TO PROVIDE TELECOMMUNICATIONS SERVICE. 31 26. "TELECOMMUNICATIONS SERVICE" MEANS THE OFFERING OF 32 TELECOMMUNICATIONS FOR A FEE DIRECTLY TO THE PUBLIC, OR TO SUCH USERS AS 33 TO BE EFFECTIVELY AVAILABLE DIRECTLY TO THE PUBLIC, REGARDLESS OF THE 34 EQUIPMENT, FACILITIES OR TECHNOLOGY USED. 35 27. "UNIFORM VIDEO SERVICE LICENSE" MEANS A LICENSE THAT IS ISSUED 36 BY A LOCAL GOVERNMENT IN THE FORM OF A UNIFORM VIDEO SERVICE LICENSE 37 AGREEMENT AS ADOPTED PURSUANT TO SECTION 9-1411. 38 28. "VIDEO SERVICE": 39 (a) MEANS THE PROVISION OF MULTICHANNEL VIDEO PROGRAMMING GENERALLY 40 CONSIDERED COMPARABLE TO VIDEO PROGRAMMING DELIVERED BY A TELEVISION 41 BROADCAST STATION, VIDEO SERVICE OR OTHER DIGITAL TELEVISION SERVICE, 42 WHETHER PROVIDED AS PART OF A TIER, ON DEMAND OR ON A PER-CHANNEL BASIS, 43 WITHOUT REGARD TO THE TECHNOLOGY USED TO DELIVER THE VIDEO SERVICE, 44 INCLUDING INTERNET PROTOCOL TECHNOLOGY OR ANY SUCCESSOR TECHNOLOGY. 45 S.B. 1140 - 4 - (b) INCLUDES CABLE SERVICE. 1 (c) DOES NOT INCLUDE ANY OF THE FOLLOWING: 2 (i) VIDEO PROGRAMMING PROVIDED SOLELY AS PART OF, AND THROUGH, A 3 SERVICE THAT ENABLES USERS TO ACCESS CONTENT, INFORMATION, E-MAIL, 4 MESSAGING OR OTHER SERVICES THAT ARE OFFERED VIA THE PUBLIC INTERNET. 5 (ii) DIRECT BROADCAST SATELLITE SERVICE. 6 (iii) WIRELESS MULTICHANNEL VIDEO PROGRAMMING THAT IS PROVIDED BY A 7 COMMERCIAL MOBILE SERVICE PROVIDER. 8 29. "VIDEO SERVICE NETWORK": 9 (a) MEANS A WIRELINE NETWORK, OR ANY COMPONENT OF A WIRELINE 10 NETWORK, THAT IS LOCATED IN THIS STATE, CONSTRUCTED IN WHOLE OR IN PART 11 IN, ON, UNDER OR OVER ANY HIGHWAY AND USED TO PROVIDE VIDEO SERVICE. 12 (b) INCLUDES A CABLE SYSTEM. 13 30. "VIDEO SERVICE PROVIDER": 14 (a) MEANS ANY PERSON THAT PROVIDES OR OFFERS TO PROVIDE VIDEO 15 SERVICE OVER A VIDEO SERVICE NETWORK TO SUBSCRIBERS IN THIS STATE. 16 (b) INCLUDES AN INCUMBENT CABLE OPERATOR THAT ELECTED PURSUANT TO 17 SECTIONS 9-1412 AND 9-1413 TO TERMINATE ITS LOCAL LICENSE AND A 18 MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR. 19 (c) DOES NOT INCLUDE A HOLDOVER CABLE OPERATOR. 20 9-1402. State preemption; uniform regulation and licensing 21 A. THE LICENSING OF VIDEO SERVICE PROVIDERS AND THE REGULATION AND 22 USE OF VIDEO SERVICE ARE MATTERS OF STATEWIDE CONCERN. EXCEPT AS PROVIDED 23 IN THIS CHAPTER, THE LICENSING OF VIDEO SERVICE PROVIDERS AND THE 24 REGULATION AND USE OF VIDEO SERVICE ARE NOT SUBJECT TO FURTHER REGULATION 25 BY A LOCAL GOVERNMENT. THE REGULATION OF VIDEO SERVICE PURSUANT TO THIS 26 CHAPTER, INCLUDING APPLICATION TO THE LOCAL LICENSES OF INCUMBENT CABLE 27 OPERATORS, IS REASONABLE AND NECESSARY TO PROMOTE ALL OF THE FOLLOWING: 28 1. PROVISION OF COMPETITIVE VIDEO, TELECOMMUNICATIONS AND 29 INFORMATION SERVICE THROUGHOUT THIS STATE. 30 2. MORE UNIFORM REGULATION OF COMPETITIVE VIDEO SERVICE THROUGHOUT 31 THIS STATE. 32 3. STREAMLINED LICENSING BY LOCAL GOVERNMENTS AND MORE UNIFORM 33 TERMS AND CONDITIONS FOR VIDEO SERVICE PROVIDERS THAT USE HIGHWAYS TO 34 PROVIDE VIDEO AND OTHER SERVICES OVER VIDEO SERVICE NETWORKS. 35 4. CONTINUED MANAGEMENT BY LOCAL GOVERNMENTS OF USE OF THEIR 36 HIGHWAYS WITH REASONABLE BURDENS ON CONSTRUCTION AND MAINTENANCE ACROSS 37 BOUNDARIES BETWEEN LOCAL GOVERNMENTS FOR VIDEO SERVICE PROVIDERS TO USE 38 HIGHWAYS TO PROVIDE VIDEO AND OTHER SERVICES OVER VIDEO SERVICE NETWORKS. 39 5. CONTINUED LEVYING OF LICENSE FEES BY LOCAL GOVERNMENTS ON 40 SUBSCRIBER SERVICE REVENUES DERIVED FROM OPERATING VIDEO SERVICE NETWORKS 41 TO PROVIDE VIDEO SERVICE. 42 6. SUPPORT FOR FEDERAL SUBSCRIBER SERVICE STANDARDS. 43 B. TO THE FULLEST EXTENT ALLOWED BY FEDERAL LAW, THIS CHAPTER 44 OCCUPIES THE ENTIRE FIELD OF LICENSING AND REGULATION OF VIDEO SERVICE. 45 S.B. 1140 - 5 - C. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, FROM AND AFTER 1 DECEMBER 31, 2019 THIS CHAPTER PREEMPTS AND LIMITS THE ABILITY OF A LOCAL 2 GOVERNMENT TO REGULATE OR ENFORCE ALL OF THE FOLLOWING: 3 1. THE APPLICATION OF CHAPTER 5, ARTICLE 1.1 OF THIS TITLE TO VIDEO 4 SERVICE PROVIDERS. 5 2. ANY LOCAL LAW AND ANY AGREEMENT WITH A LOCAL GOVERNMENT THAT 6 DOES ANY OF THE FOLLOWING: 7 (a) REQUIRES A PERSON OTHER THAN A HOLDOVER CABLE OPERATOR TO 8 OBTAIN OR HOLD FROM A LOCAL GOVERNMENT ANY LICENSE, PERMIT OR SIMILAR 9 AUTHORIZATION THAT IS A PREREQUISITE TO PROVIDING VIDEO SERVICE OR TO 10 CONSTRUCTING, MAINTAINING OR USING THE HIGHWAYS TO OPERATE A VIDEO SERVICE 11 NETWORK IN THE HIGHWAYS WITHIN ITS BOUNDARIES. 12 (b) REGULATES THE PROVISION OF VIDEO SERVICE OR THE CONSTRUCTION OR 13 OPERATION OF A VIDEO SERVICE NETWORK IF THE LOCAL LAW DOES NOT CONFORM TO 14 THIS CHAPTER. 15 (c) IMPOSES ON A VIDEO SERVICE PROVIDER ANY REQUIREMENT THAT IS 16 RELATED TO INFRASTRUCTURE, FACILITIES OR DEPLOYMENT OF EQUIPMENT THAT DOES 17 NOT CONFORM TO THIS CHAPTER, INCLUDING OFFICE LOCATION, INSTITUTIONAL 18 NETWORK, BUILD-OUT, LINE EXTENSION, INVESTMENT OR OTHER OPERATIONAL 19 REQUIREMENTS THAT ARE NOT DIRECTLY RELATED TO THE LOCAL GOVERNMENT'S 20 MANAGEMENT OF THE HIGHWAYS. 21 (d) REQUIRES A VIDEO SERVICE PROVIDER TO OBTAIN A LICENSE OR OTHER 22 AUTHORIZATION FROM THE LOCAL GOVERNMENT TO PROVIDE TELECOMMUNICATIONS 23 SERVICE, INFORMATION SERVICE, INTERACTIVE COMPUTER SERVICE OR OTHER 24 SERVICE IF THE VIDEO SERVICE PROVIDER USES ITS VIDEO SERVICE NETWORK 25 WITHIN THE BOUNDARIES OF THE LOCAL GOVERNMENT TO PROVIDE THE SERVICE. 26 (e) REQUIRES A VIDEO SERVICE PROVIDER TO PAY TO LOCATE IN DUCTS OR 27 CONDUITS OR ON POLES OWNED BY THE LOCAL GOVERNMENT IF THE LOCAL GOVERNMENT 28 REQUIRES INSTALLATION IN THE DUCTS OR CONDUITS OR ON THE POLES. 29 9-1403. Limited application 30 THIS CHAPTER DOES NOT: 31 1. PREVENT A TELECOMMUNICATIONS PROVIDER FROM EXERCISING ANY RIGHTS 32 OR AUTHORITY THAT THE TELECOMMUNICATIONS PROVIDER HAS AS A PUBLIC UTILITY 33 UNDER FEDERAL OR STATE LAW. 34 2. AFFECT ANY AUTHORITY OF A LOCAL GOVERNMENT, AN AGRICULTURAL 35 IMPROVEMENT DISTRICT, ANY SPECIAL TAXING DISTRICT OR ANY OTHER PERSON THAT 36 CONTROLS UTILITY POLES ON THE HIGHWAYS TO DENY, LIMIT, RESTRICT OR 37 DETERMINE THE RATES, TERMS AND CONDITIONS FOR THE USE OF OR ATTACHMENT BY 38 A VIDEO SERVICE PROVIDER TO UTILITY OR OTHER POLES OWNED BY THE LOCAL 39 GOVERNMENT OR OTHER PERSON. FOR THE PURPOSES OF THIS PARAGRAPH, 40 "AUTHORITY OF A LOCAL GOVERNMENT" INCLUDES POLICE POWERS. 41 3. VEST IN THE CORPORATION COMMISSION ANY AUTHORITY OR JURISDICTION 42 OVER VIDEO SERVICE, VIDEO SERVICE PROVIDERS OR VIDEO SERVICE NETWORKS OR 43 OVER THE RATES, TERMS AND CONDITIONS OF POLE ATTACHMENTS UNDER 47 UNITED 44 STATES CODE SECTION 224. 45 S.B. 1140 - 6 - 4. AFFECT OR PREEMPT ANY GENERALLY APPLICABLE LOCAL LAWS, INCLUDING 1 A LOCAL GOVERNMENT'S POLICE POWER, TO MANAGE THE USE AND OCCUPANCY OF THE 2 HIGHWAYS WITHIN THE LOCAL GOVERNMENT'S BOUNDARIES OR TO EXERCISE THE LOCAL 3 GOVERNMENT'S POLICE POWERS IF THE LOCAL GOVERNMENT APPLIES THE LOCAL LAWS 4 AND THE EXERCISE OF POLICE POWERS TO ALL USERS OF THE HIGHWAYS IN A 5 NONDISCRIMINATORY MANNER. 6 ARTICLE 2. LOCAL LICENSES 7 9-1411. Local governments; uniform video service license 8 agreements; forms; provisions 9 A. FROM AND AFTER DECEMBER 31, 2019, A LOCAL GOVERNMENT HAS THE 10 EXCLUSIVE AUTHORITY TO ISSUE A UNIFORM VIDEO SERVICE LICENSE TO A PERSON 11 TO PROVIDE VIDEO SERVICE AND TO CONSTRUCT AND OPERATE A VIDEO SERVICE 12 NETWORK IN ANY SERVICE AREA WITHIN ITS BOUNDARIES. 13 B. ON OR BEFORE JULY 1, 2019, EACH LOCAL GOVERNMENT SHALL ADOPT A 14 STANDARD FORM OF UNIFORM VIDEO SERVICE LICENSE AGREEMENT FOR VIDEO SERVICE 15 PROVIDERS TO BE USED BY THE LOCAL GOVERNMENT AND A STANDARD FORM OF 16 APPLICATION AND AFFIDAVIT AS DESCRIBED IN SECTION 9-1414. A LOCAL 17 GOVERNMENT SHALL PRESCRIBE OTHER FORMS ONLY AS NECESSARY TO IMPLEMENT THIS 18 CHAPTER. 19 C. THE UNIFORM VIDEO SERVICE LICENSE AGREEMENT ADOPTED UNDER 20 SUBSECTION B OF THIS SECTION MUST INCLUDE ALL OF THE FOLLOWING PROVISIONS 21 IN SUBSTANTIALLY THE FOLLOWING FORM AND MAY NOT INCLUDE ANY OTHER 22 PROVISIONS: 23 1. THE NAME OF THE VIDEO SERVICE PROVIDER, ITS TYPE OF ENTITY AND 24 ITS JURISDICTION OF FORMATION. 25 2. THE ADDRESS AND TELEPHONE NUMBER OF THE VIDEO SERVICE PROVIDER'S 26 PRINCIPAL PLACE OF BUSINESS. 27 3. THE NAME AND ADDRESS OF THE VIDEO SERVICE PROVIDER'S PRINCIPAL 28 EXECUTIVE OFFICERS OR GENERAL PARTNERS AND ANY PERSONS AUTHORIZED TO 29 REPRESENT THE VIDEO SERVICE PROVIDER BEFORE THE LOCAL GOVERNMENT. 30 4. IF THE VIDEO SERVICE PROVIDER IS NOT AN INCUMBENT CABLE 31 OPERATOR, THE DATE ON WHICH THE PROVIDER EXPECTS TO PROVIDE VIDEO SERVICES 32 IN THE AREA IDENTIFIED UNDER PARAGRAPH 5 OF THIS SUBSECTION. 33 5. AN EXACT DESCRIPTION OF THE SERVICE AREA TO BE SERVED, AS 34 IDENTIFIED BY A GEOGRAPHIC INFORMATION SYSTEM DIGITAL BOUNDARY THAT MEETS 35 OR EXCEEDS NATIONAL MAP ACCURACY STANDARDS. 36 6. A REQUIREMENT THAT THE VIDEO SERVICE PROVIDER PAY THE LICENSE 37 FEES REQUIRED UNDER THIS CHAPTER AND ALL OTHER LAWFUL FEES AND CHARGES 38 IMPOSED BY THE LOCAL GOVERNMENT. 39 7. A REQUIREMENT THAT THE VIDEO SERVICE PROVIDER FILE IN A TIMELY 40 MANNER WITH THE FEDERAL COMMUNICATIONS COMMISSION ALL FORMS REQUIRED BY 41 THAT AGENCY BEFORE OFFERING VIDEO SERVICE IN THE SERVICE AREA, INCLUDING 42 THE FORMS REQUIRED BY 47 CODE OF FEDERAL REGULATIONS SECTION 76.1801. 43 8. A REQUIREMENT THAT THE VIDEO SERVICE PROVIDER AGREES TO COMPLY 44 WITH AND BE SUBJECT TO ALL VALID AND ENFORCEABLE FEDERAL AND STATE LAWS. 45 S.B. 1140 - 7 - 9. A REQUIREMENT THAT THE VIDEO SERVICE PROVIDER AGREES TO COMPLY 1 WITH ALL GENERALLY APPLICABLE, NONDISCRIMINATORY LOCAL LAWS, INCLUDING 2 HIGHWAY USE, MAPPING, INSURANCE, PERFORMANCE BONDS, SECURITY FUND, 3 INDEMNIFICATION OR SIMILAR REQUIREMENTS THAT APPLY TO THE USE AND 4 OCCUPATION OF ANY HIGHWAY AND THAT CONFORM TO THIS CHAPTER. 5 10. A REQUIREMENT THAT THE VIDEO SERVICE PROVIDER COMPLY WITH THE 6 PUBLIC, EDUCATION AND GOVERNMENT PROGRAMMING REQUIREMENTS OF THIS CHAPTER. 7 11. A REQUIREMENT THAT THE VIDEO SERVICE PROVIDER COMPLY WITH ALL 8 CUSTOMER SERVICE RULES OF THE FEDERAL COMMUNICATIONS COMMISSION UNDER 47 9 CODE OF FEDERAL REGULATIONS SECTION 76.309(c) APPLICABLE TO CABLE 10 OPERATORS. 11 12. A REQUIREMENT THAT THE VIDEO SERVICE PROVIDER COMPLY WITH THE 12 CONSUMER PRIVACY REQUIREMENTS OF 47 UNITED STATES CODE SECTION 551 13 APPLICABLE TO CABLE OPERATORS. 14 13. A GRANT OF AUTHORITY BY THE LOCAL GOVERNMENT TO PROVIDE VIDEO 15 SERVICE IN THE SERVICE AREA AS DESCRIBED UNDER PARAGRAPH 5 OF THIS 16 SUBSECTION. 17 14. A GRANT OF AUTHORITY BY THE LOCAL GOVERNMENT TO USE AND OCCUPY 18 THE HIGHWAYS IN THE DELIVERY OF THE VIDEO SERVICE, SUBJECT TO THE LAWS OF 19 THIS STATE AND THE POLICE POWERS OF THE LOCAL GOVERNMENT. 20 15. THE TERM OF THE UNIFORM VIDEO SERVICE LICENSE. 21 16. A REQUIREMENT THAT THE PARTIES TO THE AGREEMENT ARE SUBJECT TO 22 AND MUST COMPLY WITH THIS CHAPTER. 23 D. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, FROM AND AFTER 24 DECEMBER 31, 2019 A PERSON MAY NOT ACT AS A VIDEO SERVICE PROVIDER OR 25 CONSTRUCT OR OPERATE A VIDEO SERVICE NETWORK WITHIN THE BOUNDARIES OF A 26 LOCAL GOVERNMENT WITHOUT FIRST HAVING BEEN ISSUED AND CONTINUING TO HOLD A 27 UNIFORM VIDEO SERVICE LICENSE WITH A SERVICE AREA ENCOMPASSING THE 28 BOUNDARIES. 29 E. A LOCAL LICENSE SHALL REMAIN ENFORCEABLE IN ACCORDANCE WITH ITS 30 TERMS UNTIL TERMINATED UNDER SECTION 9-1412, SUBSECTION B. 31 9-1412. Incumbent cable operator; election on local license; 32 procedure to obtain uniform video service license 33 and terminate local license 34 A. FROM AND AFTER DECEMBER 31, 2019, AN INCUMBENT CABLE OPERATOR 35 MAY ELECT TO DO EITHER OF THE FOLLOWING: 36 1. CONTINUE TO OPERATE WITHIN A SERVICE AREA AS DEFINED IN THE 37 LOCAL LICENSE PURSUANT TO SECTION 9-1413. 38 2. TERMINATE THE INCUMBENT CABLE OPERATOR'S LOCAL LICENSE FOR A 39 SERVICE AREA BY APPLYING FOR AND OBTAINING A UNIFORM VIDEO SERVICE LICENSE 40 PURSUANT TO THIS ARTICLE. 41 B. ON OR BEFORE JULY 1, 2020, TO ELECT TO TERMINATE A LOCAL LICENSE 42 UNDER SUBSECTION A OF THIS SECTION IN THE SAME MANNER AS ANY OTHER VIDEO 43 SERVICE PROVIDER, AN INCUMBENT CABLE OPERATOR SHALL APPLY FOR A UNIFORM 44 VIDEO SERVICE LICENSE THAT INCLUDES ONLY THE SERVICE AREA THAT IS DEFINED 45 S.B. 1140 - 8 - IN THE LOCAL LICENSE. IF AN INCUMBENT CABLE OPERATOR OBTAINS A UNIFORM 1 VIDEO SERVICE LICENSE FOR THE SERVICE AREA, BOTH OF THE FOLLOWING APPLY: 2 1. THE APPLICANT'S LOCAL LICENSE IS TERMINATED AS TO THE SERVICE 3 AREA BY OPERATION OF LAW FROM AND AFTER THE DATE THE LOCAL GOVERNMENT 4 ISSUES THE UNIFORM VIDEO SERVICE LICENSE. 5 2. THE INCUMBENT CABLE OPERATOR SHALL OPERATE WITHIN THE SERVICE 6 AREA DEFINED IN THE LOCAL LICENSE UNLESS THE INCUMBENT CABLE OPERATOR 7 ELECTS UNDER SECTION 9-1414, SUBSECTION C TO APPLY FOR A UNIFORM VIDEO 8 SERVICE LICENSE FOR A SERVICE AREA THAT CONSISTS OF THE BOUNDARIES OF THE 9 LOCAL GOVERNMENT. 10 9-1413. Incumbent cable operator; procedure to continue 11 operating under local license 12 A. IF AN INCUMBENT CABLE OPERATOR DOES NOT TIMELY ELECT TO 13 TERMINATE A LOCAL LICENSE FOR A SERVICE AREA PURSUANT TO SECTION 9-1412, 14 SUBSECTION B, THE PERSON SHALL CONTINUE TO OPERATE THE CABLE SYSTEM AS A 15 HOLDOVER CABLE OPERATOR WITHIN THE SERVICE AREA DEFINED IN THE LOCAL 16 LICENSE AND SHALL COMPLY WITH THE LOCAL LICENSE FOR AS LONG AS IT REMAINS 17 IN EFFECT FOR THE SERVICE AREA. THE LOCAL LICENSE IS NOT EFFECTIVE FOR 18 THE SERVICE AREA FROM AND AFTER THE DATE THE LOCAL LICENSE EXPIRES BY ITS 19 TERMS. THE LOCAL GOVERNMENT MAY NOT UNILATERALLY RENEW OR EXTEND THE TERM 20 OF THE LOCAL LICENSE FOR THE SERVICE AREA. THE LOCAL GOVERNMENT AND THE 21 HOLDOVER CABLE OPERATOR SHALL COMPLY WITH ALL OF THE FOLLOWING, WHICH 22 SHALL CONTINUE TO APPLY TO THE LOCAL LICENSE: 23 1. CHAPTER 5, ARTICLE 1.1 OF THIS TITLE. 24 2. SECTION 9-584. 25 3. CHAPTER 5, ARTICLE 8 OF THIS TITLE. 26 4. TITLE 11, CHAPTER 13, ARTICLE 1. 27 B. TO OPERATE WITHIN A SERVICE AREA FROM AND AFTER THE DATE THE 28 LOCAL LICENSE EXPIRES, THE HOLDOVER CABLE OPERATOR MUST APPLY FOR AND 29 OBTAIN A UNIFORM VIDEO SERVICE LICENSE IN THE SAME MANNER AS ANY OTHER 30 VIDEO SERVICE PROVIDER. 31 C. IF A HOLDOVER CABLE OPERATOR IS ISSUED A UNIFORM VIDEO SERVICE 32 LICENSE WITH A SERVICE AREA THAT INCLUDES THE SERVICE AREA DEFINED UNDER 33 THE LOCAL LICENSE WHILE OPERATING PURSUANT TO THE LOCAL LICENSE UNDER 34 SUBSECTION A OF THIS SECTION, THE UNIFORM VIDEO SERVICE LICENSE DOES NOT 35 BECOME EFFECTIVE UNTIL THE LOCAL LICENSE EXPIRES. 36 D. A HOLDOVER CABLE OPERATOR THAT ELECTS TO APPLY FOR A UNIFORM 37 VIDEO SERVICE LICENSE SHALL DO SO AT LEAST ONE MONTH BEFORE THE LOCAL 38 LICENSE EXPIRES. 39 9-1414. Uniform video service license; application; fees 40 A. TO OBTAIN A UNIFORM VIDEO SERVICE LICENSE, A PERSON SHALL FILE 41 WITH THE CLERK OF THE LOCAL GOVERNMENT AN APPLICATION AND AFFIDAVIT THAT 42 ARE SIGNED BY ONE OF THE PRINCIPAL EXECUTIVE OFFICERS OR GENERAL PARTNERS 43 OF THE APPLICANT AND THAT COMPLY WITH THIS SECTION. 44 S.B. 1140 - 9 - B. THE APPLICATION AND AFFIDAVIT SHALL BE IN THE FORM REQUIRED BY 1 THE LOCAL GOVERNMENT AND SHALL BE REQUIRED TO CONTAIN ALL OF AND NOT MORE 2 THAN THE FOLLOWING: 3 1. EACH SERVICE AREA IN WHICH THE APPLICANT INTENDS TO PROVIDE 4 VIDEO SERVICE IN THE FORMAT AS DESCRIBED IN SECTION 9-1411, SUBSECTION C. 5 EXCEPT AS PROVIDED IN SECTION 9-1412, SUBSECTION B, PARAGRAPH 2, UNDER A 6 UNIFORM VIDEO SERVICE LICENSE THE BOUNDARIES OF THE LOCAL GOVERNMENT IS A 7 SINGLE SERVICE AREA AND THE SERVICE AREA CONSISTS OF ALL OF THE TERRITORY 8 WITHIN THE BOUNDARIES OF THAT LOCAL GOVERNMENT. 9 2. THE INFORMATION PRESCRIBED BY SECTION 9-1411, SUBSECTION C, 10 PARAGRAPHS 1 THROUGH 4. THE HOLDER SHALL NOTIFY THE LOCAL GOVERNMENT IN 11 WRITING OF CHANGES TO THIS INFORMATION WITHIN THIRTY DAYS AFTER THE CHANGE 12 OCCURS. 13 3. THE TERM OF THE UNIFORM VIDEO SERVICE LICENSE, WHICH MAY NOT 14 EXCEED TEN YEARS. 15 4. AN AGREEMENT TO PAY ALL LAWFUL FEES AND CHARGES IMPOSED BY THE 16 LOCAL GOVERNMENT. 17 C. AN INCUMBENT CABLE OPERATOR DESCRIBED IN SECTION 9-1412, 18 SUBSECTION B, PARAGRAPH 2 MAY ELECT TO APPLY FOR A UNIFORM VIDEO SERVICE 19 LICENSE FOR A SERVICE AREA THAT CONSISTS OF THE BOUNDARIES OF A LOCAL 20 GOVERNMENT. 21 D. IF THE LOCAL GOVERNMENT DETERMINES THAT THE APPLICATION AND 22 AFFIDAVIT ARE INCOMPLETE OR OTHERWISE DEFICIENT FOR FAILURE TO COMPLY WITH 23 THIS SECTION, THE LOCAL GOVERNMENT SHALL PROVIDE WRITTEN NOTICE TO THE 24 APPLICANT NOT LATER THAN FIFTEEN DAYS AFTER THE DATE OF FILING OF THE 25 APPLICATION AND AFFIDAVIT. THE WRITTEN NOTICE SHALL DO BOTH OF THE 26 FOLLOWING: 27 1. EXPLAIN THE INCOMPLETENESS OR DEFICIENCY IN DETAIL. 28 2. SPECIFY THE INFORMATION OR OTHER ITEMS THAT ARE NECESSARY UNDER 29 THIS SECTION FOR PROPER COMPLETION OF THE APPLICATION AND AFFIDAVIT. 30 E. THE LOCAL GOVERNMENT MAY NOT DO ANY OF THE FOLLOWING: 31 1. CHARGE A FEE FOR FILING OR PROCESSING AN APPLICATION, AFFIDAVIT, 32 NOTICE OR OTHER DOCUMENT UNDER THIS CHAPTER. 33 2. VOTE ON OR TAKE OTHER OFFICIAL ACTION REGARDING THE APPLICATION, 34 AFFIDAVIT, NOTICE OR OTHER DOCUMENT. 35 3. REQUIRE THE APPLICANT TO OBTAIN THE APPROVAL OF THE LOCAL 36 GOVERNMENT REGARDING THE APPLICATION, AFFIDAVIT, NOTICE OR OTHER DOCUMENT. 37 4. REQUIRE THE APPLICANT TO ENTER INTO AN AGREEMENT AS DESCRIBED IN 38 SECTION 9-1442, SUBSECTION I. 39 9-1415. Authority granted by uniform video service license; 40 conditions and limitations prohibited; providing 41 video service 42 A. NOT LATER THAN THIRTY DAYS AFTER THE DATE AN APPLICANT FILES A 43 COMPLETED APPLICATION AND AFFIDAVIT PURSUANT TO SECTION 9-1414, THE LOCAL 44 GOVERNMENT SHALL ISSUE A UNIFORM VIDEO SERVICE LICENSE TO THE APPLICANT IN 45 S.B. 1140 - 10 - THE FORM PRESCRIBED BY SECTION 9-1411. IF THE LOCAL GOVERNMENT DOES NOT 1 NOTIFY THE APPLICANT ABOUT THE COMPLETENESS OF THE UNIFORM VIDEO SERVICE 2 LICENSE AGREEMENT WITHIN THE TIME PERIOD PRESCRIBED BY SECTION 9-1414, 3 SUBSECTION D OR ISSUE THE AGREEMENT WITHIN THE TIME PERIOD REQUIRED UNDER 4 THIS SUBSECTION, THE AGREEMENT SHALL BE CONSIDERED COMPLETE AND ISSUED TO 5 THE APPLICANT IN THE FORM SUBMITTED. 6 B. THE UNIFORM VIDEO SERVICE LICENSE ISSUED TO AN APPLICANT, 7 INCLUDING AN INCUMBENT CABLE OPERATOR, BY A LOCAL GOVERNMENT IS A 8 NONEXCLUSIVE LICENSE GRANTING TO THE HOLDER OF THE UNIFORM VIDEO SERVICE 9 LICENSE THE AUTHORITY FOR THE TERM REQUESTED IN THE APPLICATION TO DO ALL 10 OF THE FOLLOWING: 11 1. PROVIDE VIDEO SERVICE IN ALL SERVICE AREAS DESIGNATED IN THE 12 APPLICATION AND AFFIDAVIT FILED WITH THE LOCAL GOVERNMENT. 13 2. CONSTRUCT AND OPERATE A VIDEO SERVICE NETWORK IN THE HIGHWAYS IN 14 EACH SERVICE AREA IN COMPLIANCE WITH THIS CHAPTER AND ALL LOCAL LAWS THAT 15 ARE NOT IN CONFLICT OR OTHERWISE DO NOT CONFORM TO THIS CHAPTER OR THE 16 PURPOSES AND OBJECTIVES OF THIS CHAPTER. 17 3. OPERATE AND MAINTAIN FACILITIES INSTALLED IN THE HIGHWAYS IN THE 18 SERVICE AREA UNDER A LOCAL LICENSE PURSUANT TO ALL OF THE FOLLOWING: 19 (a) SECTION 9-506, SUBSECTIONS I AND J. 20 (b) SECTION 9-584. 21 (c) CHAPTER 5, ARTICLE 8 OF THIS TITLE AND TITLE 11, CHAPTER 13, 22 ARTICLE 1. 23 C. A LOCAL GOVERNMENT MAY NOT CONDITION OR LIMIT A UNIFORM VIDEO 24 SERVICE LICENSE BY IMPOSING ANY OBLIGATION OR REQUIREMENT THAT IS NOT 25 AUTHORIZED BY THIS CHAPTER, INCLUDING ANY OF THE FOLLOWING: 26 1. ANY OFFICE LOCATION, INSTITUTIONAL NETWORK OR OTHER BUILD-OUT, 27 LINE EXTENSION, INVESTMENT OR OTHER REQUIREMENTS RELATING TO THE OVERALL 28 SCOPE, EXTENT AND TIMING OF INFRASTRUCTURE, FACILITIES OR DEPLOYMENT OF 29 EQUIPMENT. 30 2. ANY REQUIREMENTS TO PAY TO ANY PERSON ANY APPLICATION, DOCUMENT, 31 LICENSE, SERVICE OR OTHER FEE, TAX, CHARGE OR ASSESSMENT THAT IS NOT 32 AUTHORIZED BY THIS CHAPTER. 33 D. A HOLDER OF A UNIFORM VIDEO SERVICE LICENSE SHALL PROVIDE VIDEO 34 SERVICE IN ACCORDANCE WITH THE CERTIFICATIONS MADE BY THE HOLDER IN EACH 35 APPLICATION AND AFFIDAVIT THAT THE HOLDER FILES WITH A LOCAL GOVERNMENT 36 PURSUANT TO THIS ARTICLE. 37 9-1416. Amendment of uniform video service license to add 38 service area 39 A. TO ADD ONE OR MORE NEW SERVICE AREAS TO A UNIFORM VIDEO SERVICE 40 LICENSE, THE HOLDER SHALL FILE WITH THE CLERK OF THE LOCAL GOVERNMENT AN 41 APPLICATION FOR AN AMENDMENT TO THE UNIFORM VIDEO SERVICE LICENSE TO ADD 42 EACH NEW SERVICE AREA. 43 S.B. 1140 - 11 - B. THE APPLICATION IS SUBJECT TO THE SAME PROCEDURES, REQUIREMENTS, 1 LIMITATIONS AND TIME PERIODS AS AN APPLICATION FOR ISSUANCE OF A UNIFORM 2 VIDEO SERVICE LICENSE PURSUANT TO SECTIONS 9-1414 AND 9-1415. 3 9-1417. Termination of service 4 A. TO TERMINATE THE AUTHORITY TO PROVIDE VIDEO SERVICE TO AN 5 EXISTING SERVICE AREA AUTHORIZED UNDER THE UNIFORM VIDEO SERVICE LICENSE, 6 THE HOLDER OF THE UNIFORM VIDEO SERVICE LICENSE SHALL FILE WITH THE CLERK 7 OF THE LOCAL GOVERNMENT WRITTEN NOTICE OF THE TERMINATION. 8 B. THE HOLDER MAY TERMINATE SERVICE ON AND AFTER THE DATE THAT THE 9 HOLDER FILES THE WRITTEN NOTICE WITH THE CLERK OF THE LOCAL GOVERNMENT. 10 C. THE HOLDER SHALL: 11 1. COMPLY WITH APPLICABLE FEDERAL LAWS, INCLUDING RULES AND 12 REGULATIONS OF THE FEDERAL COMMUNICATIONS COMMISSION. 13 2. GIVE ALL AFFECTED SUBSCRIBERS AND LOCAL GOVERNMENTS NOTICE AT 14 LEAST NINETY DAYS BEFORE TERMINATION OF SERVICE IN ALL OF A SERVICE AREA 15 THAT CONSISTS OF THE BOUNDARIES OF THE LOCAL GOVERNMENT. 16 9-1418. Boundary change 17 EACH LOCAL GOVERNMENT WHOSE BOUNDARIES CHANGE SHALL NOTIFY IN A 18 TIMELY MANNER EACH VIDEO SERVICE PROVIDER THAT OPERATES IN THE BOUNDARIES. 19 9-1419. Transfer of uniform video service license 20 A. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION OR OTHERWISE 21 REQUIRED BY FEDERAL LAW, INCLUDING RULES AND REGULATIONS OF THE FEDERAL 22 COMMUNICATIONS COMMISSION, A UNIFORM VIDEO SERVICE LICENSE IS FULLY 23 TRANSFERABLE TO ANY PERSON WHETHER THE TRANSFER ARISES THROUGH MERGER, 24 SALE, ASSIGNMENT, RESTRUCTURING, CHANGE OF CONTROL OR OTHER TYPE OF 25 TRANSACTION. A TRANSFER DOES NOT INCLUDE AN ASSIGNMENT OF A UNIFORM VIDEO 26 SERVICE LICENSE FOR THE PURPOSE OF SECURING INDEBTEDNESS. A TRANSFER MAY 27 INCLUDE LESS THAN ALL SERVICE AREAS ASSOCIATED WITH A UNIFORM VIDEO 28 SERVICE LICENSE. 29 B. THE HOLDER SHALL FILE WITH THE CLERK OF THE LOCAL GOVERNMENT 30 WRITTEN NOTICE OF THE TRANSFER OF THE UNIFORM VIDEO SERVICE LICENSE. ON 31 THE FILING OF NOTICE UNDER THIS SUBSECTION THE TRANSFEREE BECOMES THE 32 HOLDER. 33 9-1420. Extension 34 A. TO EXTEND THE TERM OF A UNIFORM VIDEO SERVICE LICENSE, THE 35 HOLDER OF THE UNIFORM VIDEO SERVICE LICENSE SHALL FILE WITH THE CLERK OF 36 THE LOCAL GOVERNMENT AT LEAST ONE MONTH BEFORE THE END OF THE TERM OF THE 37 UNIFORM VIDEO SERVICE LICENSE A NOTICE TO EXTEND THE TERM FOR A SPECIFIED 38 PERIOD NOT TO EXCEED TEN YEARS. 39 B. EFFECTIVE ON THE DATE THE HOLDER FILES THE WRITTEN NOTICE WITH 40 THE CLERK OF THE LOCAL GOVERNMENT, THE TERM IS EXTENDED FOR THE SPECIFIED 41 PERIOD FROM AND AFTER THE DATE OF THE END OF THE THEN-CURRENT TERM. 42 C. TRANSFERRING, AMENDING OR MODIFYING A UNIFORM VIDEO SERVICE 43 LICENSE UNDER OTHER SECTIONS OF THIS ARTICLE DOES NOT EXTEND THE TERM OF 44 THE UNIFORM VIDEO SERVICE LICENSE. 45 S.B. 1140 - 12 - 9-1421. Subscriber complaints 1 A. A SUBSCRIBER MAY SUBMIT COMPLAINTS ABOUT VIDEO SERVICE TO ANY OF 2 THE FOLLOWING: 3 1. THE LOCAL GOVERNMENT WHERE THE SUBSCRIBER RESIDES. 4 2. THE ATTORNEY GENERAL. 5 3. THE FEDERAL COMMUNICATIONS COMMISSION. 6 4. OTHER AUTHORITIES AS PROVIDED BY LAW. 7 B. A LOCAL GOVERNMENT MAY CHOOSE TO MONITOR AND ASSIST SUBSCRIBERS 8 WITH THE SUBSCRIBER SERVICE STANDARDS PURSUANT TO 47 CODE OF FEDERAL 9 REGULATIONS SECTION 76.309(c) OR TO BE IDENTIFIED ON BILLS TO SUBSCRIBERS 10 AS THE LOCAL FRANCHISE AUTHORITY FOR A SERVICE AREA CONSISTENT WITH RULES 11 OF THE FEDERAL COMMUNICATIONS COMMISSION. 12 ARTICLE 3. DUTIES OF VIDEO SERVICE PROVIDERS 13 9-1431. Video service; revocation for nonuse 14 A. NOT LATER THAN TWENTY-FOUR MONTHS AFTER THE DATE THAT A LOCAL 15 GOVERNMENT ISSUES A UNIFORM VIDEO SERVICE LICENSE PURSUANT TO SECTIONS 16 9-1414 AND 9-1415 OR AN AMENDED UNIFORM VIDEO SERVICE LICENSE PURSUANT TO 17 SECTION 9-1416, THE HOLDER OF THE UNIFORM VIDEO SERVICE LICENSE SHALL 18 OFFER AND PROVIDE VIDEO SERVICE TO AT LEAST ONE SUBSCRIBER WITHIN EACH 19 SERVICE AREA AUTHORIZED BY THE UNIFORM VIDEO SERVICE LICENSE OR AMENDED 20 UNIFORM VIDEO SERVICE LICENSE UNLESS THE HOLDER CANNOT MEET THE 21 REQUIREMENT FOR REASONS BEYOND THE HOLDER'S CONTROL. 22 B. IF A HOLDER FAILS TO COMPLY WITH SUBSECTION A OF THIS SECTION, A 23 LOCAL GOVERNMENT MAY REVOKE THE HOLDER'S UNIFORM VIDEO SERVICE LICENSE FOR 24 AFFECTED SERVICE AREAS. 25 9-1432. Reports; confidentiality; definition 26 A. A VIDEO SERVICE PROVIDER THAT IS NOT AN INCUMBENT CABLE OPERATOR 27 AND THAT HOLDS A UNIFORM VIDEO SERVICE LICENSE WITH A SERVICE AREA WITHIN 28 THE BOUNDARIES OF A LOCAL GOVERNMENT SHALL PREPARE AND SUBMIT TO THE LOCAL 29 GOVERNMENT A SEMIANNUAL REPORT THAT IDENTIFIES THE LOCATIONS WITHIN THE 30 BOUNDARIES THAT ARE ABLE TO RECEIVE VIDEO SERVICE FROM THE VIDEO SERVICE 31 PROVIDER. THIS REPORTING REQUIREMENT APPLIES UNTIL THE VIDEO SERVICE 32 PROVIDER HAS CONSTRUCTED ALL OF THE FACILITIES THE VIDEO SERVICE PROVIDER 33 INTENDS TO CONSTRUCT WITHIN THE BOUNDARIES OF THE LOCAL GOVERNMENT. 34 B. THE VIDEO SERVICE PROVIDER SHALL FILE THE REPORT WITH THE LOCAL 35 GOVERNMENT NOT LATER THAN TWENTY DAYS AFTER THE LAST DAY OF THE SECOND AND 36 FOURTH CALENDAR QUARTERS OF EACH YEAR. 37 C. INFORMATION CONTAINED IN A REPORT THAT IS SUBMITTED TO A LOCAL 38 GOVERNMENT PURSUANT TO THIS SECTION: 39 1. IS CONFIDENTIAL PROPRIETARY INFORMATION OF THE VIDEO SERVICE 40 PROVIDER. 41 2. IS NOT A PUBLIC RECORD. 42 3. MUST BE MANAGED SO THAT ANY CRITICAL INFRASTRUCTURE INFORMATION 43 CONTAINED IN THE REPORT IS PROTECTED AS PROVIDED BY LAW. 44 S.B. 1140 - 13 - 4. MAY NOT BE DISCLOSED TO ANY PERSON WHO IS NOT AN OFFICER OR 1 EMPLOYEE OF THE LOCAL GOVERNMENT UNLESS THE VIDEO SERVICE PROVIDER HAS 2 CONSENTED IN WRITING TO THE DISCLOSURE. 3 D. FOR THE PURPOSES OF THIS SECTION, "CRITICAL INFRASTRUCTURE 4 INFORMATION" HAS THE SAME MEANING PRESCRIBED IN SECTION 41-1801. 5 9-1433. Nondiscriminatory manner; compliance with standards 6 and federal law 7 A. A VIDEO SERVICE PROVIDER SHALL ACTIVATE AND OFFER VIDEO SERVICE 8 IN A NONDISCRIMINATORY MANNER WITHIN EACH SERVICE AREA AND MAY NOT DENY 9 ACCESS TO VIDEO SERVICE TO ANY GROUP OF POTENTIAL RESIDENTIAL SUBSCRIBERS 10 WITHIN A PARTICULAR PART OF A SERVICE AREA BECAUSE OF THE INCOME PROFILE 11 OF THE PERSONS WHO RESIDE IN THAT PART OF THE SERVICE AREA. 12 B. IN PROVIDING VIDEO SERVICE, A VIDEO SERVICE PROVIDER SHALL 13 COMPLY WITH ALL OF THE FOLLOWING: 14 1. 47 UNITED STATES CODE SECTION 551. 15 2. ALL ENGINEERING AND SAFETY CODES APPLICABLE TO THE VIDEO SERVICE 16 PROVIDER'S CONSTRUCTION PRACTICES AND INSTALLATION OF EQUIPMENT. 17 3. ANY TECHNICAL STANDARDS GOVERNING THE DESIGN, CONSTRUCTION AND 18 OPERATION OF A VIDEO SERVICE NETWORK REQUIRED BY FEDERAL LAW. 19 4. 47 CODE OF FEDERAL REGULATIONS PART 11, AS ADOPTED AND AS MAY BE 20 AMENDED BY THE FEDERAL COMMUNICATIONS COMMISSION, TO THE EXTENT THOSE 21 PROVISIONS REQUIRE A VIDEO SERVICE PROVIDER TO PARTICIPATE IN THE 22 EMERGENCY ALERT SYSTEM. 23 5. 47 CODE OF FEDERAL REGULATIONS SECTIONS 76.309, 76.1601, 24 76.1602, 76.1603, 76.1604, 76.1618, 76.1619, 76.1620, 76.1621 AND 76.1622, 25 AS ADOPTED AND AS MAY BE AMENDED BY THE FEDERAL COMMUNICATIONS COMMISSION, 26 ON STANDARDS GOVERNING THE QUALITY OF VIDEO SERVICE AND SUBSCRIBER 27 SERVICE. A VIDEO SERVICE PROVIDER MAY NOT BE REQUIRED TO COMPLY WITH ANY 28 SUBSCRIBER SERVICE STANDARDS THAT ARE MORE BURDENSOME THAN THOSE SET FORTH 29 IN THIS PARAGRAPH. 30 ARTICLE 4. LOCAL GOVERNMENTS 31 9-1441. Management of highways; local governments; permits or 32 licenses 33 A. IN MANAGING A HIGHWAY UNDER LOCAL LAWS AS PRESCRIBED IN SECTION 34 9-1411, SUBSECTION C, PARAGRAPH 9, A LOCAL GOVERNMENT MAY MANAGE THE USE 35 OF THE HIGHWAY, INCLUDING ALL OF THE FOLLOWING: 36 1. REQUIRING A VIDEO SERVICE PROVIDER THAT IS CONSTRUCTING, 37 INSTALLING, WORKING WITHIN, MAINTAINING OR REPAIRING FACILITIES IN, ON, 38 UNDER OR OVER ANY HIGHWAY TO OBTAIN A CONSTRUCTION, ENCROACHMENT OR 39 OCCUPANCY PERMIT FOR THE WORK. 40 2. INSPECTING THE CONSTRUCTION, INSTALLATION, MAINTENANCE OR REPAIR 41 WORK PERFORMED ON SUCH FACILITIES. 42 3. LIMITING THE INSTALLATION OF NEW AERIAL FACILITIES. 43 S.B. 1140 - 14 - B. IF A VIDEO SERVICE PROVIDER REQUESTS A PERMIT OR INSPECTION, THE 1 LOCAL GOVERNMENT SHALL GRANT OR DENY THE REQUEST WITHIN THE TIME FRAME 2 THAT THE LOCAL GOVERNMENT HAS IN PLACE UNDER SECTION 9-835 OR 11-1605. 3 C. IF EMERGENCY RESPONSE WORK OR REPAIR BECOMES NECESSARY IN, ON, 4 UNDER OR OVER ANY HIGHWAY, A VIDEO SERVICE PROVIDER MAY BEGIN THAT WORK OR 5 REPAIR WITHOUT PRIOR APPROVAL FROM A LOCAL GOVERNMENT IF THE VIDEO SERVICE 6 PROVIDER NOTIFIES THE LOCAL GOVERNMENT AS PROMPTLY AS REASONABLY POSSIBLE 7 AFTER LEARNING THAT THE WORK OR REPAIR IS NECESSARY. 8 9-1442. Fees and charges; emergency alert; damage; 9 undergrounding; wireless facilities; definition 10 A. EXCEPT THE LICENSE FEE ON GROSS REVENUE AUTHORIZED BY SECTION 11 9-1443 AND TRANSACTION PRIVILEGE TAXES AS PROVIDED IN SUBSECTION B OF THIS 12 SECTION, A LOCAL GOVERNMENT MAY NOT LEVY A TAX, RENT, FEE OR CHARGE, 13 HOWEVER DENOMINATED, ON A VIDEO SERVICE PROVIDER FOR THE USE OF THE 14 HIGHWAYS TO PROVIDE VIDEO SERVICE OR LEVY A TAX, FEE OR CHARGE ON THE 15 PRIVILEGE OF ENGAGING IN THE BUSINESS OF PROVIDING VIDEO SERVICE IN THE 16 SERVICE AREA. TAXES, RENTS, FEES AND CHARGES INCLUDE ALL OF THE 17 FOLLOWING: 18 1. ACCESS CHANNEL SUPPORT EXCEPT FOR IN-KIND SERVICES, GOODS OR 19 PAYMENTS AS PROVIDED IN SUBSECTION C OF THIS SECTION. 20 2. RENTAL, APPLICATION, CONSTRUCTION, PERMIT, INSPECTION, 21 INCONVENIENCE AND OTHER FEES AND CHARGES RELATED TO A VIDEO SERVICE 22 PROVIDER'S USE OF THE HIGHWAYS, INCLUDING THE USE AUTHORIZED BY SUBSECTION 23 D OF THIS SECTION EXCEPT THAT A LOCAL GOVERNMENT MAY IMPOSE ON A VIDEO 24 SERVICE PROVIDER SOME OR ALL OF THE FEES AND CHARGES DESCRIBED IN THIS 25 PARAGRAPH. A VIDEO SERVICE PROVIDER SHALL OFFSET THE FEES AND CHARGES 26 IMPOSED PURSUANT TO THIS PARAGRAPH AGAINST THE NEXT LICENSE FEE PAYMENT 27 MADE PURSUANT TO SECTION 9-1443. 28 B. ANY TRANSACTION PRIVILEGE TAXES OTHERWISE AUTHORIZED BY LOCAL 29 LAW TO BE LEVIED ON THE BUSINESS OF PROVIDING VIDEO SERVICE OR IN RELATION 30 TO USE OF THE HIGHWAYS TO PROVIDE VIDEO SERVICE MAY BE LEVIED ON A VIDEO 31 SERVICE PROVIDER IF THE TAXES ARE LEVIED ONLY ON GROSS REVENUE AND THE 32 RATE OF THE TAXES IS SUBJECT TO THIS SUBSECTION. THIS SUBSECTION DOES NOT 33 AUTHORIZE THE IMPOSITION OF TRANSACTION PRIVILEGE TAXES ON INTERSTATE 34 TELECOMMUNICATIONS SERVICE. THE LICENSE FEE AND ANY TRANSACTION PRIVILEGE 35 TAXES LEVIED ON GROSS REVENUE CONSTITUTE A FRANCHISE FEE WITHIN THE 36 MEANING OF THE TERM IN 47 UNITED STATES CODE SECTION 542(g). THE TOTAL OF 37 THE RATES OF THE LICENSE FEE AND OF ANY TRANSACTION PRIVILEGE TAXES ON 38 GROSS REVENUE LEVIED OR ASSESSED BY A LOCAL GOVERNMENT FOR THE PRIVILEGE 39 OF PROVIDING VIDEO SERVICE AND RELATED USE OF THE HIGHWAYS TO PROVIDE 40 VIDEO SERVICE MAY NOT EXCEED A RATE OF FIVE PERCENT. 41 C. SUBSECTION A OF THIS SECTION DOES NOT PROHIBIT A LOCAL 42 GOVERNMENT FROM LEVYING FEES AND CHARGES ON A VIDEO SERVICE PROVIDER OR 43 ITS AFFILIATES PURSUANT TO SECTION 9-584 OR PURSUANT TO CHAPTER 5, ARTICLE 44 S.B. 1140 - 15 - 8 OF THIS TITLE OR TITLE 11, CHAPTER 13, ARTICLE 1 WITHOUT AN OFFSET 1 AGAINST LICENSE FEES. 2 D. A LOCAL GOVERNMENT MAY NOT REQUIRE A VIDEO SERVICE PROVIDER TO 3 PROVIDE IN-KIND GOODS OR SERVICES, MAKE IN-KIND PAYMENTS, ASSESSMENTS OR 4 OBLIGATIONS OR PAY A FEE IN ADDITION TO THE MONETARY LICENSE FEE LEVIED OR 5 ASSESSED AS PROVIDED IN SECTION 9-1443, EXCEPT FOR ANY OF THE FOLLOWING: 6 1. A LOCAL LAW MAY IMPOSE AND ENFORCE OBLIGATIONS EQUALLY AND 7 UNIFORMLY ON ALL VIDEO SERVICE PROVIDERS THAT ARE OPERATING WITHIN THE 8 BOUNDARIES OF A LOCAL GOVERNMENT AND ON ALL HOLDOVER CABLE OPERATORS THAT 9 HOLD A LOCAL LICENSE THAT REMAINS IN EFFECT UNDER SECTION 9-1414, 10 SUBSECTION A. UNDER THE LOCAL LAW, A LOCAL GOVERNMENT: 11 (a) MAY REQUIRE ALL VIDEO SERVICE PROVIDERS TO PROVIDE CHANNEL 12 CAPACITY FOR THE VIDEO SERVICE PROVIDER TO TRANSMIT PROGRAMMING OVER WHICH 13 THE VIDEO SERVICE PROVIDER EXERCISES NO EDITORIAL CONTROL EXCEPT AS 14 AUTHORIZED BY 47 UNITED STATES CODE SECTION 531(e). THE CHANNEL CAPACITY 15 SHALL BE LIMITED TO ONE OF THE FOLLOWING: 16 (i) NOT MORE THAN TWO CHANNELS OF PUBLIC, EDUCATIONAL OR 17 GOVERNMENTAL ACCESS PROGRAMMING IN THE BASIC SERVICE TIER OF THE VIDEO 18 SERVICE NETWORK AND NOT MORE THAN TWO CHANNELS OF NONCOMMERCIAL 19 GOVERNMENTAL PROGRAMMING, AT LEAST ONE OF WHICH MAY BE PROGRAMMED BY THE 20 FEDERAL GOVERNMENT, IN THE DIGITAL PROGRAMMING TIER OF THE VIDEO SERVICE 21 NETWORK. 22 (ii) NOT MORE THAN TWO LINES OF ACCESS PROGRAMMING WITH EACH LINE 23 OF PROGRAMMING CARRIED ON UP TO TWO STANDARD DEFINITION CHANNELS AND TWO 24 SWITCHED DIGITAL HIGH-DEFINITION CHANNELS. 25 (b) SHALL SPECIFY THE PROGRAMMING AND THE VIDEO SERVICE PROVIDER 26 MAY REQUIRE THAT THE CHANNELS REGULARLY DISPLAY AN UNOBTRUSIVE LOGO OR 27 OTHER SUITABLE IDENTIFIER OF THE VIDEO SERVICE PROVIDER, IF THE LOCAL 28 GOVERNMENT REQUIRES CHANNEL CAPACITY PURSUANT TO SUBDIVISION (a) OF THIS 29 PARAGRAPH. 30 (c) MAY REQUIRE ALL VIDEO SERVICE PROVIDERS TO INCUR COSTS AND 31 EXPENSES TO PROVIDE, MAINTAIN AND OPERATE FACILITIES AND EQUIPMENT OF THE 32 VIDEO SERVICE NETWORK, INCLUDING FACILITIES AND EQUIPMENT FOR SIGNAL 33 CARRIAGE, PROCESSING, REFORMATTING AND INTERCONNECTION FOR ALL OF THE 34 FOLLOWING: 35 (i) TO CONNECT THE VIDEO SERVICE NETWORK OR CABLE SYSTEM, AS IT MAY 36 BE RELOCATED FROM TIME TO TIME, TO TRANSMIT PROGRAMMING TO AND FROM 37 EXISTING LOCATIONS OF PUBLIC, EDUCATIONAL OR GOVERNMENTAL ACCESS 38 FACILITIES AND TO ALLOW MONITORING OF ACCESS PROGRAMMING AT THE 39 FACILITIES. 40 (ii) TO TRANSMIT PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS 41 CHANNELS TO SUBSCRIBERS WITH THE SAME PREVAILING QUALITY, FUNCTIONALITY 42 AND IDENTIFICATION AS OTHER CHANNELS. 43 (d) MAY REQUIRE ALL VIDEO SERVICE PROVIDERS AND INCUMBENT CABLE 44 OPERATORS TO PROVIDE AT NO INITIAL OR RECURRING CHARGE THE BASIC SERVICE 45 S.B. 1140 - 16 - TIER OF VIDEO SERVICE TO ONE OUTLET AND ONE RECEIVING DEVICE AT EACH 1 BUILDING OCCUPIED BY THE LOCAL GOVERNMENT IF THE BUILDING IS NOT MORE THAN 2 TWO HUNDRED FEET FROM THE NEAREST TECHNICALLY AND COMMERCIALLY FEASIBLE 3 POINT OF CONNECTION ON THE VIDEO SERVICE NETWORK. 4 2. A LOCAL GOVERNMENT MAY RETAIN NONRECEIVING EQUIPMENT THAT IT 5 OWNS WITHOUT CHARGE FOR THE EQUIPMENT'S USE AND AT THE LOCAL GOVERNMENT'S 6 EXPENSE, INCLUDING EQUIPMENT PREVIOUSLY PROVIDED BY AN INCUMBENT CABLE 7 OPERATOR. 8 E. A LOCAL LAW MAY NOT IMPOSE ANY OBLIGATION ON A VIDEO SERVICE 9 PROVIDER UNDER SUBSECTION D OF THIS SECTION THAT IS MORE BURDENSOME THAN 10 THE LEAST BURDENSOME REQUIREMENT UNDER ANY LOCAL LICENSE WITH A SERVICE 11 AREA WITHIN THE BOUNDARIES OF THE LOCAL GOVERNMENT THAT WAS IN EFFECT ON 12 FEBRUARY 1, 2019. 13 F. NONE OF THE ANNUAL FAIR MARKET VALUE OF ANY CHANNEL CAPACITY 14 PROVIDED PURSUANT TO SUBSECTION D, PARAGRAPH 1, SUBDIVISION (a), THE 15 ANNUAL COSTS AND EXPENSES INCURRED PURSUANT TO SUBSECTION D, PARAGRAPH 1, 16 SUBDIVISION (c) AND THE ANNUAL FAIR MARKET VALUE OF BASIC SERVICE AND LINE 17 EXTENSION PROVIDED PURSUANT TO SUBSECTION D, PARAGRAPH 1, SUBDIVISION (d) 18 MAY BE OFFSET AGAINST THE LICENSE FEE LEVIED OR ASSESSED UNDER THIS 19 SECTION. 20 G. NOTWITHSTANDING SUBSECTION A OF THIS SECTION, BY A 21 NONDISCRIMINATORY LOCAL LAW THAT IMPOSES AND ENFORCES THE OBLIGATIONS 22 EQUALLY AND UNIFORMLY ON ALL VIDEO SERVICE PROVIDERS OPERATING WITHIN THE 23 BOUNDARIES OF A LOCAL GOVERNMENT, A LOCAL GOVERNMENT MAY REQUIRE THAT A 24 VIDEO SERVICE PROVIDER BEAR ALL OF THE REASONABLE COSTS THAT ARE 25 ASSOCIATED WITH REPAIR AND RESTORATION OF DAMAGE CAUSED TO PRIVATE 26 PROPERTY OR HIGHWAYS BY THE REPAIR, REPLACEMENT, INSTALLATION, 27 CONSTRUCTION, MAINTENANCE OR OPERATION OF THE VIDEO SERVICE PROVIDER'S 28 FACILITIES IN THE HIGHWAYS AND THAT ARE IMPOSED ON A COMPETITIVELY NEUTRAL 29 AND NONDISCRIMINATORY BASIS IN RELATION TO COSTS BORNE BY 30 TELECOMMUNICATIONS CORPORATIONS UNDER SECTION 9-582, SUBSECTION C. 31 H. ON APPLICATION A LOCAL GOVERNMENT SHALL ISSUE TO A VIDEO SERVICE 32 PROVIDER OR ITS AFFILIATE A PERMIT TO ATTACH ALLOWED WI-FI RADIO EQUIPMENT 33 TO THE VIDEO SERVICE NETWORK IN THE HIGHWAYS WITHIN THE BOUNDARIES OF THE 34 LOCAL GOVERNMENT. THE PERMIT SHALL ALLOW INSTALLATION, OPERATION AND 35 MAINTENANCE OF ALLOWED WI-FI RADIO EQUIPMENT. A LOCAL GOVERNMENT MAY 36 REQUIRE THAT ALL OF THE ALLOWED WI-FI RADIO EQUIPMENT AT A SINGLE LOCATION 37 FIT WITHIN A FIFTEEN-INCH CUBE AND BE CONTAINED ENTIRELY WITHIN A 38 GROUND-MOUNTED PEDESTAL OR BE CONNECTED DIRECTLY TO AND MOUNTED AT THE 39 SAME HEIGHT AS ONE OF THE VIDEO SERVICE PROVIDER'S AERIAL HORIZONTAL 40 CONDUCTORS. THIS SUBSECTION DOES NOT DO ANY OF THE FOLLOWING: 41 1. PROHIBIT A LOCAL GOVERNMENT FROM REQUIRING A VIDEO SERVICE 42 PROVIDER TO PLACE UNDERGROUND AERIAL FACILITIES TO WHICH ALLOWED WI-FI 43 EQUIPMENT IS ATTACHED. 44 S.B. 1140 - 17 - 2. PROHIBIT THE IMPOSITION OF A TAX, RENT, FEE OR CHARGE ON REVENUE 1 FROM SERVICES PROVIDED THROUGH ALLOWED WI-FI RADIO EQUIPMENT. 2 3. AFFECT THE AUTHORITY OF A LOCAL GOVERNMENT TO MANAGE THE 3 HIGHWAYS WITHIN ITS BOUNDARIES OR TO EXERCISE ITS POLICE POWERS, INCLUDING 4 REVIEW AND APPROVAL OF AN APPLICATION BEFORE ISSUING A PERMIT. 5 4. AFFECT ANY AUTHORITY OF A POLITICAL SUBDIVISION, INCLUDING AN 6 AGRICULTURAL IMPROVEMENT DISTRICT OR ANY OTHER SPECIAL TAXING DISTRICT, 7 THE LOCAL GOVERNMENT OR ANY OTHER PERSON CONTROLLING UTILITY POLES IN THE 8 HIGHWAYS TO DENY, LIMIT, RESTRICT OR DETERMINE THE TERMS AND CONDITIONS 9 FOR THE USE OF OR ATTACHMENT TO THE UTILITY POLES OR ATTACHMENTS TO OTHER 10 POLES OF THE POLITICAL SUBDIVISION, LOCAL GOVERNMENT OR OTHER PERSON BY A 11 VIDEO SERVICE PROVIDER. 12 I. THIS SECTION DOES NOT PROHIBIT A VIDEO SERVICE PROVIDER FROM 13 AGREEING WITH A LOCAL GOVERNMENT TO PROVIDE IN-KIND SERVICES OR GOODS OR 14 MAKE IN-KIND PAYMENTS IN THE SERVICE AREA THAT ARE OTHERWISE PROHIBITED BY 15 THIS SECTION IF THE AGREEMENT WITH THE LOCAL GOVERNMENT IS NOT ENTERED 16 INTO AS A CONDITION OF OPERATING IN THE SERVICE AREA UNDER A UNIFORM VIDEO 17 SERVICE LICENSE ISSUED PURSUANT TO THIS CHAPTER. THE AGREEMENT MAY 18 AUTHORIZE THE VIDEO SERVICE PROVIDER TO RETAIN LICENSE FEES AND TAXES 19 COLLECTED FROM ITS SUBSCRIBERS IN THE AMOUNT OF ANY OFFSET TO LICENSE FEES 20 SPECIFIED IN THE AGREEMENT. 21 J. FOR THE PURPOSES OF THIS SECTION, "ALLOWED WI-FI RADIO 22 EQUIPMENT" MEANS RADIO EQUIPMENT THAT USES ONLY UNLICENSED RADIO SPECTRUM 23 AND THAT ENABLES WIRELESS COMMUNICATION WITH A COMMUNICATIONS NETWORK FOR 24 UNLICENSED SERVICES SUCH AS WI-FI SERVICE. 25 9-1443. License fee; requirements, conditions and 26 limitations; pass through to subscribers 27 A. FOR THE PRIVILEGE OF A VIDEO SERVICE PROVIDER TO OCCUPY OR USE, 28 IN WHOLE OR IN PART, ANY HIGHWAY WITHIN THE BOUNDARIES OF A LOCAL 29 GOVERNMENT TO PROVIDE VIDEO SERVICE THROUGH A VIDEO SERVICE NETWORK, THE 30 LOCAL GOVERNMENT MAY REQUIRE A VIDEO SERVICE PROVIDER TO PAY A LICENSE FEE 31 TO THE LOCAL GOVERNMENT BASED ON THE GROSS REVENUE THAT THE VIDEO SERVICE 32 PROVIDER RECEIVES FROM ITS SUBSCRIBERS LOCATED WITHIN THE BOUNDARIES OF 33 THE LOCAL GOVERNMENT. THE LICENSE FEE BOTH: 34 1. IS SUBJECT TO THE LIMIT PRESCRIBED IN SECTION 9-1442, SUBSECTION 35 B AND TO OFFSET, INCLUDING AMOUNTS COLLECTED FROM SUBSCRIBERS, AS 36 PRESCRIBED BY SECTION 9-1442, SUBSECTIONS A AND I AND SUBSECTION D OF THIS 37 SECTION. 38 2. SHALL BE DUE NO MORE OFTEN THAN QUARTERLY. 39 B. IF THE LOCAL GOVERNMENT REQUIRES A LICENSE FEE PURSUANT TO 40 SUBSECTION A OF THIS SECTION, THE LOCAL GOVERNMENT SHALL ADOPT A LOCAL LAW 41 THAT IMPOSES THE LICENSE FEE EQUALLY AND UNIFORMLY ON ALL OF THE FOLLOWING 42 THAT ARE OPERATING WITHIN THE BOUNDARIES OF THE LOCAL GOVERNMENT: 43 1. VIDEO SERVICE PROVIDERS. 44 2. HOLDOVER CABLE OPERATORS. 45 S.B. 1140 - 18 - C. A VIDEO SERVICE PROVIDER SHALL PAY THE ENTIRE AMOUNT OF THE 1 LICENSE FEE DIRECTLY TO THE LOCAL GOVERNMENT IN A CHECK, DRAFT OR NOTE OR 2 AUTOMATED CLEARING HOUSE TRANSACTION THAT IS PAYABLE IN LEGAL TENDER AS 3 DEFINED IN SECTION 43-1021. 4 D. A VIDEO SERVICE PROVIDER MAY DO ALL OF THE FOLLOWING: 5 1. PASS THE LICENSE FEE THROUGH TO AND COLLECT THE LICENSE FEE FROM 6 ITS SUBSCRIBERS WITHIN THE BOUNDARIES OF THE LOCAL GOVERNMENT, INCLUDING 7 FOR AN INCUMBENT CABLE OPERATOR ANY CHANGE IN LICENSE FEES THAT RESULTS 8 FROM A CHANGE IN THE APPLICABLE DEFINITION OF GROSS REVENUE. 9 2. DESIGNATE THE AMOUNT OF THE LICENSE FEE COLLECTED FROM EACH 10 SUBSCRIBER AS A SEPARATE LINE ITEM ON THE SUBSCRIBER'S BILL. 11 9-1444. Ownership of a video service network 12 A. A CITY OR TOWN MAY NOT ACQUIRE AN OWNERSHIP INTEREST IN A VIDEO 13 SERVICE NETWORK UNLESS THE OWNERSHIP INTEREST IS ACQUIRED AT NOT LESS THAN 14 FAIR MARKET VALUE. 15 B. EXCEPT FOR THE PURPOSES OF ACTING AS AN INTERMEDIARY IN A 16 TRANSFER OF A UNIFORM VIDEO SERVICE LICENSE, A COUNTY MAY NOT OWN A VIDEO 17 SERVICE NETWORK. 18 9-1445. Review and audit; bundling discounts; action to 19 recover underpayment or overpayment 20 A. NOT MORE THAN ONCE EVERY THREE YEARS, A LOCAL GOVERNMENT MAY ON 21 REASONABLE WRITTEN NOTICE AUDIT THE BUSINESS BOOKS AND RECORDS OF A VIDEO 22 SERVICE PROVIDER TO THE EXTENT NECESSARY TO ENSURE PAYMENT OF LICENSE FEES 23 PURSUANT TO THIS CHAPTER. THE LOCAL GOVERNMENT MAY NOT AUDIT ANY PERIOD 24 THAT ENDS MORE THAN THREE YEARS BEFORE THE DATE THAT THE NOTICE OF AUDIT 25 IS RECEIVED. ANY AUDITS OF A PERIOD OF TIME BEFORE ISSUANCE OF A UNIFORM 26 VIDEO SERVICE LICENSE SHALL BE CONDUCTED PURSUANT TO THE LOCAL LAWS IN 27 EFFECT DURING THE PERIOD OF TIME. 28 B. EXCEPT AS OTHERWISE PROVIDED BY FEDERAL LAW, IF A VIDEO SERVICE 29 PROVIDER OFFERS VIDEO SERVICE BUNDLED WITH OTHER SERVICES THAT ARE NOT 30 VIDEO SERVICE FOR A SINGLE DISCOUNTED PRICE, ALL OF THE FOLLOWING APPLY: 31 1. THE METHOD THAT THE VIDEO SERVICE PROVIDER USES TO DETERMINE 32 GROSS REVENUE SUBJECT TO LICENSE FEES BY ALLOCATING THE SINGLE DISCOUNTED 33 PRICE AMONG THE BUNDLE OF VIDEO SERVICE AND NONVIDEO SERVICES SHALL BE 34 REASONABLE AND SUPPORTED BY THE VIDEO SERVICE PROVIDER'S BOOKS AND 35 RECORDS. 36 2. THE LOCAL GOVERNMENT SHALL ACCEPT AS REASONABLE, FOR PURPOSES OF 37 MEETING THE VIDEO SERVICE PROVIDER'S BURDEN OF PROOF, AN ALLOCATION BASED 38 ON AN OBJECTIVE AND VERIFIABLE METHOD USING THE BOOKS AND RECORDS THAT THE 39 VIDEO SERVICE PROVIDER KEPT IN THE REGULAR COURSE OF BUSINESS FOR OTHER 40 PURPOSES, INCLUDING NONTAX PURPOSES. 41 3. A VIDEO SERVICE PROVIDER MAY NOT USE BUNDLED OFFERINGS AS A 42 MEANS TO EVADE PAYING LICENSE FEES. 43 C. THE LOCAL GOVERNMENT AND THE VIDEO SERVICE PROVIDER SHALL EACH 44 PAY ITS OWN COSTS AND FEES RELATING TO EACH AUDIT PERFORMED PURSUANT TO 45 S.B. 1140 - 19 - SUBSECTION A OF THIS SECTION. IF THE SUM DETERMINED TO BE UNDERPAID 1 EXCEEDS FIVE PERCENT OF THE TOTAL FEES THAT THE AUDIT DETERMINES SHOULD 2 HAVE BEEN PAID FOR THE PERIOD, THE VIDEO SERVICE PROVIDER SHALL PAY THE 3 LOCAL GOVERNMENT'S REASONABLE COSTS OF THE AUDIT. 4 D. THE RATE OF INTEREST FOR BOTH UNDERPAYMENTS AND OVERPAYMENTS IS 5 THE FEDERAL SHORT-TERM RATE DETERMINED PURSUANT TO 26 UNITED STATES CODE 6 SECTION 6621(b), PLUS THREE PERCENTAGE POINTS. 7 E. A PERSON THAT PERFORMS A REVIEW AND AUDIT UNDER SUBSECTION A OF 8 THIS SECTION MAY NOT RECEIVE COMPENSATION THAT IS BASED, IN WHOLE OR IN 9 PART, ON EITHER OF THE FOLLOWING: 10 1. FINDING A PARTICULAR RESULT. 11 2. THE AMOUNT OF ANY UNDERPAYMENT OR OVERPAYMENT OF THE LICENSE FEE 12 THAT IS IDENTIFIED BECAUSE OF THE REVIEW AND AUDIT. 13 F. A COMPLAINT BY A LOCAL GOVERNMENT FOR UNDERPAYMENT OF A LICENSE 14 FEE FROM A VIDEO SERVICE PROVIDER OR BY A VIDEO SERVICE PROVIDER FOR 15 OVERPAYMENT OF A LICENSE FEE TO A LOCAL GOVERNMENT SHALL BE MADE PURSUANT 16 TO ARTICLE 5 OF THIS CHAPTER. 17 G. A COMPLAINT FOR A VIOLATION OF THE LICENSE FEE OBLIGATIONS UNDER 18 THIS CHAPTER MAY NOT BE MADE UNLESS A WRITTEN DEMAND BY A LOCAL GOVERNMENT 19 FOR PAYMENT OF THE LICENSE FEES OR A WRITTEN DEMAND BY A VIDEO SERVICE 20 PROVIDER FOR REFUND OF LICENSE FEES IS MADE WITHIN FOUR MONTHS AFTER THE 21 LOCAL GOVERNMENT OR VIDEO SERVICE PROVIDER REALIZES IT HAS BEEN DAMAGED OR 22 KNOWS OR REASONABLY SHOULD KNOW OF THE DAMAGE CAUSED BY THE ALLEGED 23 VIOLATION. 24 H. A COMPLAINT MUST BE FILED PURSUANT TO ARTICLE 5 OF THIS CHAPTER 25 WITHIN TWO YEARS AFTER THE WRITTEN DEMAND IS MADE PURSUANT TO THIS 26 SUBSECTION BUT NOT SOONER THAN FOUR MONTHS AFTER THE WRITTEN DEMAND. 27 ARTICLE 5. ENFORCEMENT 28 9-1451. Enforcement; office of administrative hearings; fees; 29 fund 30 A. A LOCAL GOVERNMENT MAY FILE A WRITTEN COMPLAINT AGAINST A VIDEO 31 SERVICE PROVIDER AND A VIDEO SERVICE PROVIDER MAY FILE A WRITTEN COMPLAINT 32 AGAINST A LOCAL GOVERNMENT ALLEGING A VIOLATION OF THIS CHAPTER OR THE 33 UNIFORM VIDEO SERVICE LICENSE AGREEMENT. UNLESS OTHERWISE PROVIDED IN 34 SECTION 9-1445, SUBSECTIONS F, G AND H OR THIS SECTION: 35 1. ALL COMPLAINTS MUST BE FILED WITH THE OFFICE OF ADMINISTRATIVE 36 HEARINGS. 37 2. THE COMPLAINANT MUST SERVE A COPY OF THE COMPLAINT ON THE PARTY 38 THAT IS THE SUBJECT OF THE COMPLAINT BY PERSONAL DELIVERY OR CERTIFIED 39 MAIL, RETURN RECEIPT REQUESTED, OR BY ANY OTHER METHOD REASONABLY 40 CALCULATED TO EFFECT ACTUAL NOTICE TO THE LOCAL GOVERNMENT'S LAST ADDRESS 41 OF RECORD FOR THE PARTY THAT IS THE SUBJECT OF THE COMPLAINT. 42 3. THE PARTY THAT IS THE SUBJECT OF THE COMPLAINT MAY FILE A 43 RESPONSE TO THE COMPLAINT WITH THE OFFICE OF ADMINISTRATIVE HEARINGS 44 WITHIN TWENTY DAYS AFTER SERVICE PURSUANT TO PARAGRAPH 2 OF THIS 45 S.B. 1140 - 20 - SUBSECTION. RESPONSES SHALL BE SERVED PURSUANT TO PARAGRAPH 2 OF THIS 1 SUBSECTION. 2 B. BEFORE FILING A COMPLAINT PURSUANT TO THIS SECTION ALL OF THE 3 FOLLOWING APPLY: 4 1. THE COMPLAINANT MUST PROVIDE NOTICE OF THE ALLEGED VIOLATION OF 5 THIS CHAPTER TO THE PARTY THAT IS THE SUBJECT OF THE COMPLAINT. 6 2. THE PARTY THAT IS THE SUBJECT OF THE COMPLAINT MUST HAVE A 7 PERIOD OF NOT LESS THAN TWENTY DAYS AFTER THE DATE IT RECEIVES THE NOTICE 8 TO RESOLVE THE ALLEGED VIOLATION. 9 C. A HEARING BEFORE THE OFFICE OF ADMINISTRATIVE HEARINGS SHALL BE 10 HELD IF A COMPLAINT THAT COMPLIES WITH THIS SECTION IS FILED WITH THE 11 OFFICE OF ADMINISTRATIVE HEARINGS. UNLESS OTHER DEADLINES ARE ESTABLISHED 12 FOR A PARTICULAR COMPLAINT, ALL OF THE FOLLOWING APPLY: 13 1. THE HEARING SHALL BE HELD WITHIN TWO MONTHS AFTER THE DATE THAT 14 THE COMPLAINT IS FILED AND SERVICE IS COMPLETED PURSUANT TO SUBSECTION A 15 OF THIS SECTION. 16 2. THE DATE SCHEDULED FOR THE HEARING MAY BE ADVANCED OR DELAYED ON 17 THE AGREEMENT OF THE PARTIES OR ON A SHOWING OF GOOD CAUSE. 18 D. THE OFFICE OF ADMINISTRATIVE HEARINGS SHALL PREPARE AND SERVE A 19 NOTICE OF HEARING ON ALL PARTIES AT LEAST ONE MONTH BEFORE THE HEARING 20 THAT STATES THE TIME AND PLACE OF THE HEARING. 21 E. A PREHEARING CONFERENCE MAY BE HELD PURSUANT TO SECTION 22 41-1092.05. 23 F. UNLESS IT CONFLICTS WITH THE REQUIREMENTS OF THIS SECTION, THE 24 HEARING SHALL BE CONDUCTED PURSUANT TO SECTION 41-1092.07. 25 G. THE COMPLAINANT HAS THE BURDEN OF PERSUASION AT A HEARING UNDER 26 THIS SECTION. 27 H. THE DECISION OF THE ADMINISTRATIVE LAW JUDGE IS THE FINAL 28 ADMINISTRATIVE DECISION WITH RESPECT TO THE COMPLAINT. THE OFFICE OF 29 ADMINISTRATIVE HEARINGS SHALL SERVE A COPY OF THE ADMINISTRATIVE LAW 30 JUDGE'S DECISION ON ALL PARTIES. THE FINAL ADMINISTRATIVE DECISION MAY BE 31 APPEALED TO THE SUPERIOR COURT PURSUANT TO TITLE 12, CHAPTER 7, ARTICLE 6. 32 NOTWITHSTANDING SECTION 12-910, THE SUPERIOR COURT PROCEEDING SHALL BE A 33 TRIAL DE NOVO. 34 I. A PARTY MAY MOVE FOR REHEARING PURSUANT TO SECTION 41-1092.09 35 AND THE OFFICE OF ADMINISTRATIVE HEARINGS SHALL RULE ON THE MOTION. MOVING 36 FOR REHEARING OR REVIEW IS NOT NECESSARY FOR THE PARTY TO SEEK JUDICIAL 37 REVIEW OF THE DECISION OF THE ADMINISTRATIVE LAW JUDGE UNDER SUBSECTION H 38 OF THIS SECTION. 39 J. SERVICE IS COMPLETE ON PERSONAL SERVICE OR FIVE DAYS AFTER THE 40 DATE THAT THE OFFICE OF ADMINISTRATIVE HEARINGS MAILS THE FINAL 41 ADMINISTRATIVE DECISION TO EACH PARTY'S LAST KNOWN ADDRESS OF RECORD WITH 42 THE LOCAL GOVERNMENT. 43 K. THE OFFICE OF ADMINISTRATIVE HEARINGS SHALL ADOPT RULES PURSUANT 44 TO TITLE 41, CHAPTER 6 TO ADMINISTER HEARINGS UNDER THIS CHAPTER. 45 S.B. 1140 - 21 - L. THE OFFICE OF ADMINISTRATIVE HEARINGS SHALL ESTABLISH, 1 ADMINISTER AND COLLECT FEES IN AN AMOUNT TO BE DETERMINED BY THE DIRECTOR 2 OF THE OFFICE OF ADMINISTRATIVE HEARINGS. THE DIRECTOR SHALL DEPOSIT, 3 PURSUANT TO SECTIONS 35-146 AND 35-147, ALL MONIES IN THE VIDEO SERVICE 4 PROVIDER COMPLAINT FUND ESTABLISHED BY SUBSECTION M OF THIS SECTION. 5 M. THE VIDEO SERVICE PROVIDER COMPLAINT FUND IS ESTABLISHED 6 CONSISTING OF MONIES COLLECTED PURSUANT TO SUBSECTION L OF THIS SECTION. 7 THE OFFICE OF ADMINISTRATIVE HEARINGS SHALL ADMINISTER THE FUND. MONIES 8 IN THE FUND ARE CONTINUOUSLY APPROPRIATED. THE OFFICE OF ADMINISTRATIVE 9 HEARINGS SHALL USE THE MONIES IN THE FUND FOR THE PURPOSE OF ADMINISTERING 10 THE DUTIES SPECIFIED IN THIS ARTICLE. 11 9-1452. Statute of limitations; costs and attorney fees; 12 federal subscriber service requirements 13 A. EXCEPT AS PROVIDED IN SECTION 9-1445, SUBSECTIONS F, G AND H, A 14 COMPLAINT UNDER THIS ARTICLE MUST BE FILED WITHIN TWO YEARS AFTER THE 15 COMPLAINANT REALIZES IT HAS BEEN DAMAGED AND KNOWS OR REASONABLY SHOULD 16 KNOW THE CAUSE, SOURCE, ACT, EVENT, INSTRUMENTALITY OR CONDITION THAT 17 CAUSED OR CONTRIBUTED TO THE ALLEGED VIOLATION. 18 B. EACH PARTY TO A DISPUTE UNDER THIS CHAPTER SHALL BEAR ITS OWN 19 ATTORNEY FEES AND COSTS. 20 C. THIS ARTICLE DOES NOT APPLY TO CLAIMS THAT A VIDEO SERVICE 21 PROVIDER HAS FAILED TO MEET SUBSCRIBER SERVICE STANDARDS PRESCRIBED BY 22 SECTION 9-1433, SUBSECTION B, PARAGRAPH 5 OR HAS VIOLATED TITLE 44, 23 CHAPTER 10, ARTICLE 7. CLAIMS OF VIOLATIONS OF FEDERAL SUBSCRIBER SERVICE 24 STANDARDS SHALL BE MADE PURSUANT TO THE PROCEDURE ESTABLISHED UNDER 25 FEDERAL LAW. 26 Sec. 2. Section 41-1092.01, Arizona Revised Statutes, is amended to 27 read: 28 41-1092.01. Office of administrative hearings; director; 29 powers and duties; fund 30 A. An office of administrative hearings is established. 31 B. The governor shall appoint the director pursuant to section 32 38-211. At a minimum, the director shall have the experience necessary for 33 appointment as an administrative law judge. The director also shall 34 possess supervisory, management and administrative skills, as well as 35 knowledge and experience relating to administrative law. 36 C. The director shall: 37 1. Serve as the chief administrative law judge of the office. 38 2. Make and execute the contracts and other instruments that are 39 necessary to perform the director's duties. 40 3. Subject to chapter 4, article 4 of this title, hire employees, 41 including full-time administrative law judges, and contract for special 42 services, including temporary administrative law judges, that are 43 necessary to carry out this article. An administrative law judge employed 44 or contracted by the office shall have graduated from an accredited 45 S.B. 1140 - 22 - college of law or shall have at least two years of administrative or 1 managerial experience in the subject matter or agency section the 2 administrative law judge is assigned to in the office. 3 4. Make rules that are necessary to carry out this article, 4 including rules governing ex parte communications in contested cases. 5 5. Submit a report to the governor, speaker of the house of 6 representatives and president of the senate by November 1 of each year 7 describing the activities and accomplishments of the office. The 8 director's annual report shall include a summary of the extent and effect 9 of agencies' utilization of administrative law judges, court reporters and 10 other personnel in proceedings under this article and recommendations for 11 changes or improvements in the administrative procedure act or any 12 agency's practice or policy with respect to the administrative procedure 13 act. 14 6. Secure, compile and maintain all decisions, opinions or reports 15 of administrative law judges issued pursuant to this article and the 16 reference materials and supporting information that may be appropriate. 17 7. Develop, implement and maintain a program for the continuing 18 training and education of administrative law judges and agencies in regard 19 to their responsibilities under this article. The program shall require 20 that an administrative law judge receive training in the technical and 21 subject matter areas of the sections to which the administrative law judge 22 is assigned. 23 8. Develop, implement and maintain a program of evaluation to aid 24 the director in the evaluation of administrative law judges appointed 25 pursuant to this article that includes comments received from the public. 26 9. Annually report the following to the governor, the president of 27 the senate and the speaker of the house of representatives by December 1 28 for the prior fiscal year: 29 (a) The number of administrative law judge decisions rejected or 30 modified by agency heads. 31 (b) By category, the number and disposition of motions filed 32 pursuant to section 41-1092.07, subsection A to disqualify office 33 administrative law judges for bias, prejudice, personal interest or lack 34 of expertise. 35 (c) By agency, the number and type of violations of section 36 41-1009. 37 10. Schedule hearings pursuant to section 41-1092.05 upon the 38 request of an agency or the filing of a notice of appeal pursuant to 39 section 41-1092.03. 40 D. The director shall not require legal representation to appear 41 before an administrative law judge. 42 E. Except as provided in subsection F of this section, all state 43 agencies supported by state general fund sources, unless exempted by this 44 article, and the registrar of contractors shall use the services and 45 S.B. 1140 - 23 - personnel of the office to conduct administrative hearings. All other 1 agencies shall contract for services and personnel of the office to 2 conduct administrative hearings. 3 F. An agency head, board or commission that directly conducts an 4 administrative hearing as an administrative law judge is not required to 5 use the services and personnel of the office for that hearing. 6 G. Each state agency, and each political subdivision contracting 7 for office services pursuant to subsection I of this section, shall make 8 its facilities available, as necessary, for use by the office in 9 conducting proceedings pursuant to this article. 10 H. The office shall employ full-time administrative law judges to 11 conduct hearings required by this article or other laws as follows: 12 1. The director shall assign administrative law judges from the 13 office to an agency, on either a temporary or a permanent basis, at 14 supervisory or other levels, to preside over contested cases and 15 appealable agency actions in accordance with the special expertise of the 16 administrative law judge in the subject matter of the agency. 17 2. The director shall establish the subject matter and agency 18 sections within the office that are necessary to carry out this 19 article. Each subject matter and agency section shall provide training in 20 the technical and subject matter areas of the section as prescribed in 21 subsection C, paragraph 7 of this section. 22 I. If the office cannot furnish an office administrative law judge 23 promptly in response to an agency request, the director may contract with 24 qualified individuals to serve as temporary administrative law 25 judges. These temporary administrative law judges are not employees of 26 this state. 27 J. The office may provide administrative law judges on a contract 28 basis to any governmental entity to conduct any hearing not covered by 29 this article. The director may enter into contracts with political 30 subdivisions of this state, and these political subdivisions may contract 31 with the director for the purpose of providing administrative law judges 32 and reporters for administrative proceedings or informal dispute 33 resolution. The contract may define the scope of the administrative law 34 judge's duties. Those duties may include the preparation of findings, 35 conclusions, decisions or recommended decisions or a recommendation for 36 action by the political subdivision. For these services, the director 37 shall request payment for services directly from the political subdivision 38 for which the services are performed, and the director may accept payment 39 on either an advance or reimbursable basis. 40 K. The office shall apply monies received pursuant to subsections E 41 and J of this section to offset its actual costs for providing personnel 42 and services. 43 S.B. 1140 - 24 - L. THE OFFICE SHALL RECEIVE COMPLAINTS AGAINST A LOCAL GOVERNMENT 1 OR VIDEO SERVICE PROVIDER AS DEFINED IN SECTION 9-1401 AND SHALL COMPLY 2 WITH THE DUTIES IMPOSED ON THE OFFICE PURSUANT TO TITLE 9, CHAPTER 13. 3 Sec. 3. Legislative findings 4 Pursuant to section 41-1107, Arizona Revised Statutes, the 5 legislature has determined that it is reasonable and necessary to promote 6 a matter of statewide concern by regulating the licensure and provision of 7 video service to promote all of the following: 8 1. Provision of competitive video, telecommunications and 9 information service throughout this state. 10 2. More uniform regulation of competitive video service throughout 11 this state. 12 3. Streamlined licensing by local governments and more uniform 13 terms and conditions for video service providers that use highways to 14 provide video and other services over video service networks. 15 4. Continued management of local governments' use of their highways 16 with reasonable burdens on construction and maintenance across boundaries 17 between local governments for video service providers to use highways. 18 5. Continued levying of license fees by local governments on 19 subscriber service revenues derived from operating video service networks 20 to provide video service. 21 6. Support for federal subscriber service standards. 22 APPROVED BY THE GOVERNOR MAY 16, 2018. FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 16, 2018. ITEM 8. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF appointment to the Board of Adjustment. Staff Summary (Background) The terms of three members (John Kovac, Nick Sehman, and Daniel J. Halloran) of the Board of Adjustment expired in January 2019. One incumbent did not wish to be considered for reappointment. Two of the three incumbents were interviewed on September 23, 2019, by the Council Subcommittee and appointed on October 15, 2019. An additional application was received soon after and the applicant was interviewed by the Council Subcommittee on November 12, 2019. Staff is recommending that the term for the appointment made to this Commission end in October of 2022. Related Ordinance, Policy or Guiding Principle Chapter 2A of the Town Code Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Make one appointment for three-year terms ending October 2022. SUGGESTED MOTION MOVE to appoint _________  to the Board of Adjustment, with a term ending October 2022. Form Review Form Review Inbox Reviewed By Date Town Manager Grady E. Miller 11/25/2019 08:41 AM Finance Director David Pock 11/25/2019 08:45 AM Town Attorney Elizabeth A. Burke 11/25/2019 09:17 AM Town Manager Elizabeth A. Burke 11/25/2019 09:17 AM Form Started By: Elizabeth A. Burke Started On: 11/25/2019 06:26 AM Final Approval Date: 11/25/2019  ITEM 8. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):   PUBLIC HEARING AND CONSIDERATION OF adopting Ordinance#19-16, a text amendment to the Town of Fountain Hills Zoning Ordinance, Chapter 6, Sign Regulations, Sections 6.08 Zoning Districts Table, 6.08. M. and 6.08. Q. The amendments update the Zoning Districts Table with the new language, replace the existing language in Section 6.08 M. regarding Garage Sale Signs with new provisions for Residential Directory Signs and eliminate Section 6.08. Q. regarding Open House Signs.(Case #Z2019-06)  Staff Summary (background) In 2015 the U. S. Supreme Court, in a case known as Reed v. Town of Gilbert, ruled that local sign regulations could not be based on the content or the message presented on the sign.  Signs can only be regulated based on physical characteristics such as size, location, material, etc.   There are several examples in the Town’s sign ordinance where the regulations are based on the content of the sign.  Therefore, the Town has started a process to review and update the entire sign ordinance to be compliant with the Supreme Court ruling.   The most challenging area we have to address as part of this sign code update will be temporary signs.  Examples include garage sale signs, for sale signs, and open house signs.  Political signs would also fall in this category, but the State has pre-empted most local regulation of political signs.  Because of the regular issues staff has with the enforcement of the current code as it relates to temporary signs, particularly open house and garage sale signs, staff has decided to handle this specific issue ahead of the full sign code update.  We anticipate having the full sign code update completed by May 2020.   In the current ordinance, Section 6.08 M provides regulations for garage sale signs and Section 6.08 Q provides regulations for open house signs (see attached copies of these sections of the current ordinance).  The regulations are similar but not exactly the same.  To properly enforce the requirements of the code for these two signs, you must read the sign.  Therefore, these sign types are not in compliance with the Court ruling in Reed v. Town of Gilbert.  This creates a challenge to the enforcement of  these ordinance provisions.   Staff’s proposal is to delete the two current sign designations in the ordinance and replace them with one new sign type – Residential Directional Signs.  The new regulations are a combination of the requirements in the code today for the two types of signs.   The proposed regulations are: Residential Directional Signs.  Residential directional signs are portable, temporary signs that are placed on the ground or may be implanted into the ground without the use of any tools or equipment and can easily be picked up and carried by one person.  Residential directional signs are used to direct traffic to a home.  Residential directional signs must conform to the following requirements:  Each single-family lot, condominium unit, or model home may place one (1) sign anywhere on the property and each single-family home, condominium complex, or model home cluster may place one (1) additional sign at each turning movement beginning at the subject property leading out to a major street with a maximum of five (5) signs. 1. Must be placed at least one (1) foot behind the curb.  If no curb is present, signs shall be located at least one (1 foot from the edge of the paved portion of the public right-of-way.  Shall not be placed on sidewalks or within the center medians that divide portions of paved or unpaved roadways or block visibility at a driveway or street corner. 2. No such sign shall be permitted within 150-feet of Shea Boulevard.3. Signs may only be displayed between the hours of 6 a.m. and 9 p.m.4. Maximum size shall not exceed six (6) square feet.5. Maximum height shall not exceed three (3) feet.6. Signs must be made of metal, plastic, or wood and be maintained in good condition.7. No sign may be attached to any utility pole or box, light pole, street sign, bus shelter or any structure within the public right-of-way. 8. Signs shall not damage any vegetation or rest against other objects or vegetation.9. Illumination is prohibited.10. To be compliant with the Supreme Court ruling, the proposed regulation only addresses issues of size, location, material, number, and time.  The ordinance does not regulate the message that can be on the sign.  Therefore, these signs can be used to direct people to any type of activity taking place on residential property.    The proposed new language clears up a problem with regards to Shea Boulevard.  Currently, garage sales signs may not be posted in the Shea Boulevard right-of-way and open house signs shall not be within 150 of the Shea right-of-way.  It is difficult for the average person to know where the Shea right-of-way is or be able to then measure the distance from the right-of-way.  The proposed code standardizes the distance and measures it from the curb which is easy to locate. There is one issue still remaining with regard to temporary signs along Shea Boulevard.  While most subdivisions along Shea take their access from a street other than Shea (e.g. The Villas at Firerock are accessed from Firerock Country Club Dr.; Belera at Firerock is accessed from Belera Dr.) which provides a street other than Shea to place a sign to direct people into the subdivision, there is one subdivision, Palatial Estates, that accesses Shea Blvd. directly.  A request has been made to amend the proposed ordinance to allow this as an exception to the current language in the code.  Staff has not made any adjustments to the draft ordinance in response to this issue.  We prefer to address this topic as part of the larger sign code update so the issue can be considered in context with other changes being made to the ordinance.     Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission reviewed this ordinance at their October 3 and 17 meetings.  At their October 3 meeting they requested staff clarify the total number of signs that could be used and to consider allowing signs to be placed in medians along a frontage road.  For their October 17 meeting, staff clarified the maximum total number of signs would be six, one on the property and an additional five that could lead to the property.  Staff also provided an alternative to allow for the signs in a frontage median but recommended against including this change at this time.  Given the overall work being done on the sign code and knowing how we address temporary signs is going to be a difficult issue, staff felt was better to wait and address this issue with the overall code update. At their October 17 meeting the P&Z Commission voted to recommend adding the language to the draft ordinance to allow the signs in the frontage road median.  The language recommended by the Commission is a modification to Section 6.08 M. 2. to read as follows:  2.  Must be placed at least one (1) foot behind the curb.  If no curb is present, signs shall be located at least one (1) foot from the edge of the paved portion of the public right-of-way.  Shall not be place on sidewalks or within the center medians that divide portion of paved or unpaved roadways, provided however, that a sign may be placed in a median between a frontage road and the primary, parallel street where the primary street intersects with another roadway.  Signs must be placed so as to not create a sight visibility problem at the intersection. The Commission voted 5-0 to recommend approval of the ordinance amendment with this modification. Staff Recommendation(s) Staff has some concern with the last amendment by the P&Z Commission to allow signs in the frontage road median.  Staff is working on a comprehensive update to the Sign Ordinance.  We do not know for sure at this time how we will handle temporary signs as a whole.  While it may end up being appropriate, staff would prefer to wait for the full sign ordinance update to be completed to add this provision.  The attached ordinance does not include the language change as recommended by the P&Z Commission. SUGGESTED MOTION MOVE to Approve Ordinance #19-16. Attachments Ord 19-16  Form Review Inbox Reviewed By Date Town Clerk Elizabeth A. Burke 11/21/2019 10:40 AM Development Services Director (Originator)John Wesley 11/21/2019 10:43 AM Town Attorney Aaron D. Arnson 11/22/2019 02:38 PM Town Manager Grady E. Miller 11/22/2019 08:49 PM Form Started By: John Wesley Started On: 11/18/2019 09:46 AM Final Approval Date: 11/22/2019  ORDINANCE NO. 19-16 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS ZONING ORDINANCE, CHAPTER 6, SIGN REGULATIONS, AMENDING SECTION 6.08, SIGNS ALLOWED OR REQUIRED TABLE, REPLACING SECTION 6.08 M, GARAGE SALE SIGNS WITH A NEW SECTION RESIDENTIAL DIRECTIONAL SIGNS AND DELETING SECTION 6.08 Q OPEN HOUSE SIGNS RECITALS: WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) adopted Ordinance No. 93-22 on November 18, 1993, which adopted the Zoning Ordinance for the Town of Fountain Hills (the “Zoning Ordinance”); and WHEREAS, the Town Council desires to amend the Zoning Ordinance to revise Chapter 6, Signs, Section 6.08, Signs Allowed or Required, relating to garage sale and open house signs; and WHEREAS, the Town Council desires to amend the Zoning Ordinance to revise Chapter 6, Signs, Section 6.08, Signs Allowed or Required, to establish a new Residential Directional Yard Sign; and WHEREAS, in accordance with the Zoning Ordinance and pursuant to ARIZ. REV. STAT. § 9- 462.04, public hearings regarding this ordinance were advertised in the September 11, 2019, September 18, 2019, October 30, 2019, and November 6, 2019 editions of the Fountain Hills Times; and WHEREAS, public hearings were held by the Fountain Hills Planning & Zoning Commission on September 26, 2019 and October 10, and by the Town Council on November 19, 2019. ENACTMENTS: NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Zoning Ordinance, Chapter 6, (Sign Regulations), Section 6.08 (Signs Allowed or Required), is hereby amended as follows: Zoning District Commercial Residential/ Open Space Recreation Industrial Lodging Total Aggregate Sign Area A N/A A A A-Frame Sign B N/A B B ORDINANCE 19-18 PAGE 2 Zoning District Commercial Residential/ Open Space Recreation Industrial Lodging Awning/Canopy Sign C C C C Civic Organization Identification E E E E Comprehensive Sign Plans Z N/A Z Z Contractor Signs F F F F Directory Signs G G G G Electronic Message Center CC * CC N/A Event Banners, Balloons and Pennants D * D D Flag I I I I Freestanding Signs J N/A J J Fuel Price Signs K N/A N/A N/A Future Development Signs L L L L Garage Sale Signs RESIDENTIAL DIRECTIONAL SIGNS MN/A M MN/A MN/A Menu Board N N/A N/A N/A Multi-Tenant Building Identification Signs O N/A O O Neon Signs P N/A P P Open House Directional SignsRESERVED Q Q Q N/A Political and Ideological Signs R R R R Projecting Signs S N/A S S Real Estate Signs T T T T Shared Monument Signs J N/A J J Sign Walkers BB N/A N/A N/A Special Event Signage U U U U Street Addresses AA AA AA AA Subdivision Identification Signs J J J J Under-Canopy Signs V N/A V V Wall Signs W N/A W W Window Signs X N/A X X Window Decorations/Painting (Holiday Theme) Y Y Y Y * Specific Regulations Apply SECTION 3. The Zoning Ordinance, Chapter 6, (Sign Regulations), Section 6.08 M, is hereby amended as follows: M. Garage Sale Signs RESIDENTIAL DIRECTIONAL SIGNS. RESIDENTIAL DIRECTIONAL SIGNS ARE PORTABLE, TEMPORARY SIGNS THAT ARE PLACED ON THE GROUND OR MAY BE IMPLANTED INTO THE GROUND WITHOUT THE USE OF ANY TOOLS OR EQUIPMENT AND CAN EASILY BE PICKED UP AND CARRIED ORDINANCE 19-18 PAGE 3 BY ONE PERSON. RESIDENTIAL DIRECTIONAL SIGNS ARE USED TO DIRECT TRAFFIC TO A HOME. RESIDENTIAL DIRECTIONAL SIGNS MUST CONFORM TO THE FOLLOWING REQUIREMENTS are allowed as follows: 1. Garage sales signs may only be used for garage sales, yard sales and carport sales as outlined in Section 8-3-3 of the Town Code. EACH SINGLE-FAMILY LOT, CONDOMINIMUM UNIT, OR MODEL HOME MAY PLACE ONE (1) SIGN ANYWHERE ON THE PROPERTY AND EACH SINGLE-FAMILY HOME, CONDOMINIUM COMPLEX, OR MODEL HOME CLUSTER MAY PLACE ONE (1) ADDITIONAL SIGN AT EACH TURNING MOVEMENT BEGINNING AT THE SUBJECT PROPERTY OUT TO A MAJOR STREET WITH A MAXIMUM OF FIVE (5) SIGNS. 2. Garage sale signs mMust be placed at least one (1) foot behind the curb. If no curb is present, signs shall be located at least one (1) foot from the edge of the paved portion of the public right-of-way. Garage sale signs sShall not be placed on sidewalks or within the center medians that divide portions of paved or unpaved roadways, PROVIDED, HOWEVER, THAT A SIGN MAY BE PLACED IN A MEDIAN BETWEEN A FRONTAGE ROAD AND THE PRIMARY, PARALLEL STREET WHERE THE PRIMARY STREET INTERSECTS WITH ANOTHER ROADWAY. SIGNS MUST BE PLACED SO AS TO NOT CREATE A SIGHT VISIBILITY PROBLEM AT THE INTERSECTION. 3. No garage saleSUCH sign shall be permitted within 150 FEET the Shea Boulevard public right-of-way. 4. No garage sale sign shall be located within three hundred (300) feet along the same roadway, as measured along the public right-of-way line(s), as another sign bearing the same or substantially the same message.SIGNS MAY ONLY BE DISPLAYED BETWEEN THE HOURS OF 6 A.M. AND 9 P.M. 5. There shall not be more than five (5) garage sale signs to any destination.MAXIMUM SIZE SHALL NOT EXCEED SIX (6) SQUARE FEET. 6. Garage sale signs may only be displayed between sunrise and sunset. Signs remaining in public rights-of-way after sunset, or placed in rights-of-way prior to sunrise, shall be subject to confiscation and destruction by the Town.MAXIMUM HEIGHT SHALL NOT EXCEED THREE (3) FEET. 7. Maximum size shall not exceed four and one-half (4.5) square feet.SIGNS MUST BE MADE OF METAL, PLASTIC, OR WOOD AND BE MAINTAINED IN GOOD CONDITION. 8. Maximum height shall not exceed three (3) feet.NO SIGN MAY BE ATTACHED TO ANY UTILITY POLE OR BOX, LIGHT POLE, STREET SIGN, BUS SHELTER OR ANY STRUCTURE WITHIN THE PUBLIC RIGHT-OF-WAY. 9. Signs may only be constructed of wrought iron, sheet metal, plastic or of wood that is at least 3/8 of an inch thick.SIGNS SHALL NOT DAMAGE ANY VEGETATION OR REST AGAINST OTHER OBJECTS OR VEGETATION. ORDINANCE 19-18 PAGE 4 10. Garage Sale signs shall not be attached to any utility pole or box, light pole, street sign, bus shelter or any structure within the public right-of-way.ILLUMINATION IS PROHIBITED SECTION 4. The Zoning Ordinance, Chapter 6, (Sign Regulations), Section 6.08 Q, is hereby amended as follows: Q. RESERVEDOpen House Directional Signs are allowed only as follows: 1. Open house directional signs shall be used only to direct traffic to a residence for sale, lease or rent. 2. Maximum number of directional signs for each residence for sale, lease or rent shall be five (5). 3. Maximum area for each sign shall be six (6) square feet. 4. No sign may be greater than twenty-four (24) inches wide and thirty-six (36) inches tall. 5. Signs shall not be illuminated. 6. Sign must contain a directional arrow. 7. Signs shall be placed at least one (1) foot behind the curb. If no curb is present, signs shall be located at least one (1) foot from the edge of the paved portion of the public right-of-way. No sign is allowed on sidewalks or within the center medians that divide portions of paved or unpaved roadways. 8. No sign shall be placed within one hundred fifty (150) linear feet of the Shea Boulevard public right-of-way. 9. Signs must be made by a professional sign company. 10. Signs shall not be located within one hundred (100) linear feet of any sign advertising the same location. 11. Sign placement, other than as described above, may be approved by the Zoning Administrator or authorized designee. SECTION 5. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. SECTION 6. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to execute all documents and take all steps necessary to carry out the purpose and intent of this Ordinance. ORDINANCE 19-18 PAGE 5 PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, this 3rd day of December, 2019. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Elizabeth A. Burke, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney ITEM 8. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Community Services Prepared by: Jamie Salentine, Executive Assistant Staff Contact Information: Rachael Goodwin, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  a Cooperative Purchasing Agreement #2020-045 with Stabilizer Solutions, Inc. Staff Summary (Background) Stabilizer Solutions has been the supplier and installer of ball field infield mix, ball field outfield mix, and stabilized granite purchases for Town parks and Public Works projects.  The company also provides assistance with debris removal during storm events, particularly at Golden Eagle Park. Their assistance following monsoons over the last two years has been a critical component of getting the parks restored and reopened for public use. While the Cooperative Purchasing Agreement with Stabilizer Solutions is for five years not to exceed $200,000, it is anticipated that the annual utilization will be approximately $40,000 for several parks.  It may be possible that the annual $40,000 may be exceeded in the event of responding to flood damage and other storm-related damage.     Related Ordinance, Policy or Guiding Principle N/A Risk Analysis With no contract in place, park improvement projects are slowed significantly. During storms, the cleanup process and potential damage are exacerbated by having inefficient removal assistance.  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Department staff from both Community Services and Public Works recommend approval.  SUGGESTED MOTION MOVE to approve the Cooperative Purchasing Agreement #2020-045 with Stabilizer Solutions, Inc. in an amount not to exceed $200,000 ($40,000 annually) over the life of the five-year contract.  Fiscal Impact Fiscal Impact:Parks Operation Budget Reference: Funding Source:General Fund If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form:Yes Attachments Agreement  Form Review Inbox Reviewed By Date Community Services Director Rachael Goodwin 11/06/2019 04:00 PM Executive Assistant, Comm. Serv. (Originator)Jamie Salentine 11/06/2019 04:21 PM Community Services Director Rachael Goodwin 11/06/2019 04:27 PM Town Attorney Aaron D. Arnson 11/12/2019 04:36 PM Town Manager Elizabeth A. Burke 11/13/2019 09:20 AM Executive Assistant, Comm. Serv. (Originator)Elizabeth A. Burke 11/13/2019 09:23 AM Community Services Director Rachael Goodwin 11/20/2019 01:33 PM Town Manager Grady E. Miller 11/21/2019 07:57 AM Form Started By: Jamie Salentine Started On: 11/06/2019 01:02 PM Final Approval Date: 11/21/2019  1 Contract No. 2020-045 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND STABILIZER SOLUTIONS, INC. THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into as of December 3, 2019, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and Stabilizer Solutions, Inc., an Arizona corporation (the “Contractor”). RECITALS A. After a competitive procurement process, the City of Phoenix (the “City”) entered into Contract No. 149767, dated May 2, 2019 (the “City Contract”), for the Contractor to provide necessary staff, services and associated resources to provide the City with stabilizer “Pro Red” infield mix and preparation, blending, placement/compaction, and related services. A copy of the City Contract is attached hereto as Exhibit A and incorporated herein by reference, to the extent not inconsistent with this Agreement. B. The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make purchases under the City Contract, at its discretion and with the agreement of the awarded Contractor, and the City Contract permits its cooperative use by other public entities, including the Town. C. The Town and the Contractor desire to enter into this Agreement for the purpose of (i) acknowledging their cooperative contractual relationship under the City Contract and this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide necessary staff, services and associated resources to provide the City with installation of a new parking lot at Four Peaks Park and annual maintenance and repairs of fields at parks and parking lots (the “Materials and Services”), and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the Materials and Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Contractor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date first set forth above and shall remain in full force and effect until December 2, 2020 (the “Initial Term”), unless terminated as otherwise provided in this Agreement or the City Contract. After the expiration of the Initial Term, this Agreement may be renewed for up to four successive one-year terms (each, a “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal in each subsequent year, (ii) the term of the City Contract has 2 not expired or has been extended, (iii) at least 30 days prior to the end of the then-current term of this Agreement, the Contractor requests, in writing, to extend this Agreement for an additional one-year term and (iv) the Town approves the additional one-year term in writing (including any price adjustments approved as part of the City Contract), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Contractor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Contractor, elect to waive this requirement and renew this Agreement. The Initial Term and any Renewal Term(s) are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2. Scope of Work. This is an indefinite quantity and indefinite delivery Agreement for Materials and Services under the terms and conditions of the City Contract. The Town does not guarantee any minimum or maximum number of purchases will be made pursuant to this Agreement. Purchases will be made only when the Town identifies a need and proper authorization and documentation have been approved. For purchase(s) determined by the Town to be appropriate for this Agreement, the Contractor shall provide the specific Materials and Services to the Town in such quantities and configurations agreed upon between the parties, in a written invoice, quote, materials order or other form of written agreement describing the materials to be delivered (each, a “Materials Order”). Each Materials Order shall (i) contain a reference to this Agreement and the City Contract and (ii) be attached hereto as Exhibit B and incorporated herein by reference. A Materials Order submitted without referencing this Agreement and the City Contract will be subject to rejection. Contractor acknowledges and agrees that a Materials Order containing unauthorized exceptions, conditions, limitations, or provisions in conflict with the terms of this Agreement, other than Town’s project-specific requirements, is hereby expressly declared void and shall be of no force and effect. 2.1 Inspection; Acceptance. All Materials and Services are subject to final inspection and acceptance by the Town. Materials failing to conform to the requirements of this Agreement and/or the City Contract will be held at Contractor’s risk and may be returned to the Contractor. If so returned, all costs are the responsibility of the Contractor. Upon discovery of non- conforming Materials or Services, the Town may elect to do any or all of the following by written notice to the Contractor: (i) waive the non-conformance; (ii) stop the work immediately; or (iii) bring Materials or Services into compliance and withhold the cost of same from any payments due to the Contractor. 2.2 Cancellation. The Town reserves the right to cancel any work order within a reasonable time after issuance. Should a work order be canceled, the Town agrees to reimburse the Contractor, but only for actual and documentable costs incurred by the Contractor due to and after issuance of the work order. The Town will not reimburse the Contractor for any costs incurred after receipt of the Town notice of cancellation, or for lost profits, shipment of product prior to issuance of a work order or for anything not expressly permitted pursuant to this Agreement. 3. Compensation. The Town shall pay Contractor an amount not to exceed $200,000.00 for the Materials and Services at the rates set forth in the City Contract. 3 4. Payments. The Town shall pay the Contractor monthly, based upon acceptance and delivery of Materials and/or Services performed and completed to date, and upon submission and approval of invoices. Each invoice shall (i) contain a reference to this Agreement and the City Contract and (ii) document and itemize all work completed to date. The invoice statement shall include a record of materials delivered, time expended, and work performed in sufficient detail to justify payment. Additionally, invoices submitted without referencing this Agreement and the City Contract will be subject to rejection and may be returned. 5. Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Contractor and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit evaluation of the Contractor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in Section 6 below. To the extent necessary for the Town to audit Records as set forth in this Section, Contractor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Contractor pursuant to this Agreement. Contractor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this Section. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 6. E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41- 4401, the Contractor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Contractor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 7. Israel. Contractor certifies that it is not currently engaged in and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 8. Conflict of Interest. This Agreement may be canceled by the Town pursuant to ARIZ. REV. STAT. § 38-511. 9. Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and a suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 10. Agreement Subject to Appropriation. The Town is obligated only to pay its obligations set forth in this Agreement as may lawfully be made from funds appropriated and 4 budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations under this Agreement are current expenses subject to the “budget law” and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The parties agree that the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town’s obligations set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement is executed and delivered. The Town shall be the sole judge and authority in determining the availability of funds for its obligations under this Agreement. The Town shall keep Contractor informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination of this Agreement pursuant to this section. 11. Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the City Contract, and invoices, the documents shall govern in the order listed herein. Notwithstanding the foregoing, and in conformit y with Section 2 above, unauthorized exceptions, conditions, limitations or provisions in conflict with the terms of this Agreement or the City Contract (collectively, the “Unauthorized Conditions”), other than the Town’s project-specific requirements, are expressly declared void and shall be of no force and effect. Acceptance by the Town of any work order or invoice containing any such Unauthorized Conditions or failure to demand full compliance with the terms and conditions set forth in this Agreement or under the City Contract shall not alter such terms and conditions or relieve Contractor from, nor be construed or deemed a waiver of, its requirements and obligations in the performance of this Agreement. 12. Rights and Privileges. To the extent provided under the City Contract, the Town shall be afforded all of the rights and privileges afforded to the City and shall be the “City” (as defined in the City Contract) for the purposes of the portions of the City Contract that are incorporated herein by reference. 13. Indemnification; Insurance. In addition to and in no way limiting the provisions set forth in Section 12 above, the Town shall be afforded all of the insurance coverage and indemnifications afforded to the City to the extent provided under the City Contract, and such insurance coverage and indemnifications shall inure and apply with equal effect to the Town under this Agreement including, but not limited to, the Contractor’s obligation to provide the indemnification and insurance. In any event, the Contractor shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, in connection with the work or services of the Contractor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. 5 14. Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered to the party at the address set forth below, (ii) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (iii) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Grady E. Miller, Town Manager With copy to: Pierce Coleman PLLC 4711 E. Falcon Dr., Ste. 111 Mesa, Arizona 85215 Attn: Aaron D. Arnson, Town Attorney If to Contractor: Stabilizer Solutions, Inc. 33 S. 28th St. Phoenix, Arizona 85034 Attn: Jonathan Hubbs or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received: (i) when delivered to the party, (ii) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (iii) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a cop y of the notice may be sent, is deemed to have received the notice. [SIGNATURES APPEAR ON FOLLOWING PAGES] 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first set forth above. “Town” TOWN OF FOUNTAIN HILLS, an Arizona Municipal Corporation ________________________________ Grady E. Miller, Town Manager ATTEST: ________________________________ Elizabeth A. Burke, Town Clerk APPROVED AS TO FORM: ________________________________ Aaron D. Arnson, Town Attorney (ACKNOWLEDGEMENT) STATE OF ARIZONA ) ) ss. COUNTY OF MARICOPA ) On ____________________, 2019, before me personally appeared Grady E. Miller, the Town Manager of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document, on behalf of the Town of Fountain Hills. ____________________________ Notary Public (Affix notary seal here) [SIGNATURES CONTINUE ON FOLLOWING PAGE] EXHIBIT A TO COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND STABILIZER SOLUTIONS, INC. [City Contract] See following pages. EXHIBIT B TO COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND STABILIZER SOLUTIONS, INC. [Materials Order] See following pages (to be attached subsequent to execution). ITEM 8. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving the Town Council Meeting Dates and Summer Break for 2020. Staff Summary (Background) This item has been placed on the agenda to provide an opportunity for the Town Council to discuss the Calendar Year 2020 meeting schedule and consider providing staff direction on the timeframe for the Town Council Summer Break. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A SUGGESTED MOTION MOVE to approve the Council Meeting Dates and timeframe for the Summer Break for the 2020 Calendar Year. Attachments Proposed Schedule  Form Review Inbox Reviewed By Date Town Manager Grady E. Miller 11/25/2019 08:49 AM Finance Director David Pock 11/25/2019 08:49 AM Town Attorney Elizabeth A. Burke 11/25/2019 09:17 AM Town Manager Elizabeth A. Burke 11/25/2019 09:17 AM Form Started By: Elizabeth A. Burke Started On: 11/25/2019 06:40 AM Final Approval Date: 11/25/2019  2020 PROPOSED TOWN COUNCIL MEETING SCHEDULE AND SUMMER BREAK MEETING DATE TYPE OF MEETING 01/07/2020 Regular Meeting 01/14/2020 Work Session (Tentative – If needed) 01/21/2020 Regular Meeting 02/04/2020 Council Retreat 02/11/2020 Work Session (Tentative – If needed) 02/18/2020 Regular Meeting 03/03/2020 Regular Meeting 03/10/2020 Work Session (Tentative – If needed) 03/17/2020 Regular Meeting 03/24/2020 Special Session (CIP Projects) 04/07/2020 Regular Meeting 04/14/2020 Budget Workshop 04/21/2020 Regular Meeting 05/05/2020 Regular Meeting 05/12/2020 Work Session (Tentative – If needed) 05/19/2020 Regular Meeting 06/02/2020 Regular Meeting 06/09/2020 Work Session (Tentative – If needed) 06/16/2020 Regular Meeting 07/07/2020 Regular Meeting – No Meeting Recommended 07/21/2020 Regular Meeting – No Meeting Recommended 08/04/2020 Regular Meeting – No Meeting Recommended 08/18/2020 Regular Meeting – No Meeting Recommended 08/24/2020 Special Meeting (to canvass Primary Election) 09/01/2020 Regular Meeting – Replaced by 8/24 Special Meeting 09/01-09/04/2020 League Annual Conference 09/07/2020 Labor Day Holiday 09/08/2020 Work Session (Tentative – If needed) 09/15/2020 Regular Meeting 10/06/2020 Regular Meeting 10/13/2020 Work Session (Tentative – If needed) 10/20/2020 Regular Meeting 11/03/2020 Regular Meeting 11/10/2020 Work Session (Tentative – If needed) 11/17/2020 Regular Meeting 12/01/2020 Regular Meeting 12/08/2020 Work Session (Tentative – If needed) 12/15/2020 Regular Meeting PROPOSED SUMMER BREAK ITEM 8. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE DIRECTION to staff regarding the requirements for providing hillside protection easements, the abandonment of existing easements, and the fee for easement abandonments. Staff Summary (Background) The Town of Fountain Hills has always treasured its natural desert landscapes as an integral part of the development and maintenance of the community.  The Mission Statement for the current General Plan includes these statements: -              “…family-oriented community where the conservation and preservation of the natural heritage and visual beauty of the surrounding desert are maintained.” -              “…committed to creating a Town … where the natural environment is preserved and protected…” Chapter 3 of the Plan, Land Use, Goal Six states; “Continue to preserve open space and maintain strict guidelines for the conservation of natural resources.”  Objective 6.1 states:  “The Town should continue to preserve steeply sloping hillsides, wash areas and tracts of contiguous open space.” Similar sentiments have been made by residents as we have received comments from the public as we work on the General Plan 2020. The primary tool used by the Town to preserve the natural landscape is the Hillside Protection Easement (HPE).  While these have evolved some over time, these easements have been required at either the subdivision or development stage to protect the steep sloped portions of lots from future development. Staff has been asked to look into and provide the Council with feedback and recommendations on three items related to hillside protection easements:  Should the town make any modifications to the easement requirements?1. How should the town handle requests for abandonment of existing easements?2. Should the town continue charging an application fee for processing an abandonment?3. History History The HPE ordinance is contained in the Subdivision Regulations and has changed over time.  Initially any slope over 10% had to be protected, this was later changed to 15%. Section 5.04 A of the Subdivision Regulations currently sets the slope at 20% and requires that 60% of the 20%+ slope area be left undisturbed. Further, the easements are no longer required for lots zoned R1-10 or smaller, or for non-residential development on commercially or industrially zoned land (Subdivision Regulations Sec. 5.04 C). There are many developing subdivisions where the HPE’s are granted as the lots are developed.  Examples include Eagles Nest and Fire Rock in which the subdivision set aside an easement amount to be dedicated with each lot as it is developed. Granting of the easements has happened both comprehensively at the subdivision level and also individually on a lot-by-lot basis.  The language required in the easement document is:    Owner hereby grants to the Town of Fountain Hills a perpetual easement upon, across, over and under all those areas designated as "Hillside Protection Easement" for the purpose of preserving the natural topography and vegetation of land area within the Final Plat of (Subdivision Name) in conformance with the Article V of the Town of Fountain Hills Subdivision Regulations. The owner or any of his heirs, successors, or assigns shall not perform nor allow to be performed, any construction; or cutting, filling, grading to the Topography; nor any grubbing, brushing, removal, or otherwise damage any vegetation, rock outcropping, or other natural feature in the Hillside Protection Easement area without prior Town Council approval. A trail way may be a permitted use if approved by the Town Council. This easement language does a good job of clearly protecting the land from any type of development and ensures it will remain in its natural state. Discussion The Council has recently directed staff to examine the HPE’s to see if any modifications are warranted after the town received several requests to have existing easements abandoned.  This report reviews the continued need to obtain the easements and the options for abandoning existing easements. New Easements There is some concern regarding the property rights lost by granting the easements.  The owner pays taxes on their entire lot, but they are not allowed to do develop or build anything on the portion of the property with the easement.  While this is true, it is part of the history of building and developing in Fountain Hills.  It is one of the fundamental practices that gives Fountain Hills its unique look and character.  People building and buying in Fountain Hills do so (at least in theory) with the understanding that the hillside slopes and natural landscape will be preserved on their lot and on their neighbors’ lots.  They know their investment in maintaining the natural desert on their property will add value to their property because all other properties are doing the same thing. The Town has modified the requirements over the years.  The effect of the change has been to reduce the amount of land being preserved and provide more area that can be disturbed.  With the current standard that requires a minimum of 60% of the land with a 20%+ slope be left undisturbed, the land area left available for development still typically exceeds the lot of coverage requirements of the Zoning Ordinance.  For an extreme example, on an 18,000 sq. ft. lot zoned R1-18 with the entire lot having 20%+ slopes, the zoning ordinance would have a maximum building area of 4,500 square-feet and the Hillside Disturbance allowance would allow 7,200 square-feet of the lot to be disturbed.  It could be a Hillside Disturbance allowance would allow 7,200 square-feet of the lot to be disturbed.  It could be a challenge to fit the house in the setbacks and provide for the driveway and other uses on the property.  Another more typical example would be a 36,000 sq. ft. lot zoned R1-35 with 20,000 sq. ft. of the lot of having a 20%+ slope.  In this case the zoning ordinance would allow a building of 7,200 sq. ft. and the disturbance area would be 24,000 sq. ft.  This leaves substantially more room to meet setbacks, provide a driveway and other on-site development. While some areas remain for development, much of the Town has been entitled and platted.  Through those processes most property has either already granted the required easement or the requirement to do so is in place when the lot develops.  The only significant area remaining for future development that does not yet have the HPE’s is the State Trust land.  Any change to the required dedications will have minimal impact on the Town as a whole, but will set up an imbalance between adjacent properties.  If the current requirements are removed, when someone comes into an existing subdivision on a vacant lot, they could disturb the entire lot while their neighbors were not able to do so. Rather than make any fundamental changes to the current HPE requirements, it might make sense to consider smaller adjustments.  The Subdivision Regulations Sections 5.02 C. and 5.04.B. allow for some exemptions to the non-disturbance areas to be permitted.  The allowed additional disturbance areas are for driveways and utilities to serve the property.  As we get into more difficult and challenging terrain, it may be beneficial to consider and adopt additional provisions to allow flexibility in the disturbance areas.  For example, the terrain to a given home may require a longer, curving driveway to reach the home.  If this is the case, the Development Services Director could be authorized to allow a corresponding increase in the amount of disturbance area on that given lot. Easement Abandonment As stated previously, the regulations related to the HPE’s has changed over time.  The ordinance used to require easements for 10% slopes, today it is 20% or greater slopes that require the easement.  Easements used to be required for all lot sizes, now they are not required for property zoned R1-10 or smaller.  Based on this, there are lots with HPE’s that would not be required to provide those same easements today. Because the HPE’s have been granted through an easement process, either on the plat on by separate instrument, there is not a simple way to remove them.  Staff could be instructed not to enforce the easement in prescribed situations (e.g. lots less than 10,000 sq. ft., slopes less than 20%) but the easement would still be on the property.  The only clean way to address the issue is through the abandonment process. Given the changes that have occurred in the ordinance requirements over the  years, it would seem reasonable for Council to adopt a policy for staff to work with anyone who requests a change that would bring the easements on their lots in line with current ordinance requirements.  (e.g. a property less than 10,000 sq.ft. could have the easement abandoned). The abandonments could happen either reactively, when requested by the property owner, or proactively by the Town reaching out to property owners in some systematic way.  Staff does not have the personnel available to take a proactive approach.  Abandonment Application Fee There is staff time involved in the processing of an easement abandonment.  There is an existing fee in the fee schedule for easement abandonments of $350.  This could be used for HPE easement abandonments. Options  Keep base ordinance as is Provide some additional flexibility to allow the Development Services Director to consider modifications for difficult lots Continue to allow abandonment on case by case basis for lots 10,000 sq. ft. or smaller Explore options to allow some or all abandonments to be approved administratively Use existing $350 fee for easement abandonment Related Ordinance, Policy or Guiding Principle General Plan Section 5.04 of the Subdivision Regulations Risk Analysis The current ordinance provisions and processing steps have been in place for several years and seem to be working smoothly for easement dedications.  Making no changes would leave the requirements and processes as they exist today. There are, however, opportunities for improvement in the ordinance to better accommodate some of the more difficult lots and to formalize the easement abandonment process.  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) The protection of the natural beauty of the hillsides in the Town is one of the important development requirements that helps make Fountain Hills unique and attractive.  There are, however, improvements that can be made to the requirements to make the process more flexible for unique development situations.  Staff recommends that the Council direct staff to:  Explore and bring back recommendations from the Planning and Zoning Commission on modifications to Section 5.04 of the Subdivision Regulations that will allow additional, lot specific adjustments to be made; 1. Continue to process H.P.E. abandonment requests on a lot by lot basis;2. Explore options to allow approval of some hillside easement abandonments administratively; and,3. Utilize the existing $350 fee for easement abandonment for the processing of these requests. 4. SUGGESTED MOTION MOVE to direct staff to:  Explore and bring back recommendations from the Planning and Zoning Commission on modifications to Section 5.04 of the Subdivision Regulations that will allow additional, lot specific adjustments to be made; 1. Continue to process H.P.E. abandonment requests on a lot by lot basis;2. Explore options to allow approval of some hillside easement abandonments administratively; and,3. Utilize the existing $350 fee for easement abandonment for the processing of these requests4. Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 11/20/2019 11:39 AM Town Attorney Aaron D. Arnson 11/22/2019 02:42 PM Town Manager Grady E. Miller 11/22/2019 08:58 PM Form Started By: John Wesley Started On: 11/20/2019 11:26 AM Final Approval Date: 11/22/2019  ITEM 8. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  DISCUSSION AND DIRECTION on calling a Special Election in May 2020 or as part of the Primary Election in August 2020 for the Daybreak development referenda questions.  Staff Summary (Background) On November 25, 2019, the Town received notice from the Maricopa County Recorder’s Office on the referenda:   REF201901  Daybreak Rezone                                              5 invalid signatures            (6%) REF2019-02 Daybreak General Plan Amendment            2 invalid signatures            (3%)   After applying the like percentage to the total number of signatures for each, there is over 100% of the required number signatures for both referenda to place these questions on an upcoming ballot.  As there has been some discussion of a special election being called in May 2020, time is of the essence in determining when the election should be held. In order to hold a May Special Election (which would be an all-mail ballot election), Maricopa County would need to be notified by December 21, 2019, and receive ballot language by January 5, 2020.  Due to these time constraints, staff has placed this item on this agenda for discussion and direction. In the event that the Town Council decides to move forward with an election in May of 2020, staff will bring back a resolution for consideration and possible adoption at the Town Council meeting on December 17, 2019, to call such an election. Related Ordinance, Policy or Guiding Principle Town Code  Risk Analysis Below are pros and cons to be considered for a Special Election in May of 2020 vs. a Primary Election in Below are pros and cons to be considered for a Special Election in May of 2020 vs. a Primary Election in August 2020 PROS  Addresses the issue sooner for the community and the developer Places an emphasis on a Town issue (question is not included with everything else and at the end of the ballot) Mail ballots are sent to every registered voter with a faster turn around on election results  If combined with the Primary Election, independent voters will have to request a specific party ballot or request a Town-only ballot from the County; otherwise they cannot vote CONS  Less time to prepare for May 2020 special election May 2020 special election will cost more:  Estimated $40,000-$50,000 (unbudgeted) vs. $20,000-$25,000 (budgeted in next year’s budget) Cost Breakdown Mail-Ballot Election  -  $2.12 per registered voter - approximately 17,000 = $36,040 plus estimated cost of $15,000 for publicity pamphlet vs. Regular Primary Election - $.50 per registered voter - approximately 17,000 = $8,500 plus estimated cost of $15,000 for publicity Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A SUGGESTED MOTION Move to DIRECT staff to bring back a resolution for consideration at the December 17, 2019, Town Council Meeting calling for a Special Election in May of 2020 or the Primary Election in August of 2020 for the purpose of referring referenda addressing the proposed Daybreak development.  Form Review Inbox Reviewed By Date Finance Director David Pock 11/25/2019 05:02 PM Town Attorney Aaron D. Arnson 11/25/2019 07:02 PM Town Manager Grady E. Miller 11/25/2019 08:38 PM Form Started By: Elizabeth A. Burke Started On: 11/25/2019 03:45 PM Final Approval Date: 11/25/2019  ITEM 2. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/03/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Public Works Prepared by: Jeff Pierce, Streets Superintendent Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding the establishment of pavement condition standards to be used in developing a 10-year Pavement Management Program. Staff Summary (Background) The Town incorporated in 1989, and shortly thereafter, the Road Districts (9, 10,11 & 12) were incorporated. The newly elected Mayor and Council at that time decided to continue the “Zone” approach of maintaining town streets. This approach consisted of Reconstruction, Mill & Overlay, Crack Sealing, Surface Seals, and Slurry Seals once every 7 years. The Town previously completed a one-time Pavement Management Report in 2009 but did not have the funding necessary to implement the recommendations. In 2017, Town staff presented a different approach to the Town Council regarding the Pavement Management Program. Priorities were set with Arterials, Collectors, and Local streets. An effective pavement preservation program will address pavements while they are still in good condition and before the onset of serious damage. By applying a cost-effective treatment at the right time, the pavement is almost restored to its original condition.  At the June 18, 2019, Town Council meeting, the Town Manager indicated that staff would return with a new presentation from Infrastructure Management Services (IMS) outlining a proposed level of service and pavement condition standards for each level of classification (Arterial, Collector & Local). On September 3, 2019, a presentation was introduced to Town Council with recommendations for street condition standards based on the category of streets (Arterial, Collector, or Local). Direction from the Mayor and Council to staff was that financial details were needed before direction was to be given. Staff began to work with IMS to develop a 10-year Pavement Management Program with new models and control points showing what funding is required for annual maintenance and will return to Council for review and consideration in December 2019. The Council workshop on December 3 will include current funding levels and other possible future funding options to address the needs for funding the 10-Year Pavement Management Program.   Related Ordinance, Policy or Guiding Principle Resolution 2013-02 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends that the Town Council establish pavement condition standards for Arterials, Collectors, and Local Streets.   SUGGESTED MOTION That the Mayor and Council establish the following pavement condition standards as follows: For Arterial Streets, a pavement condition standard of a "B" For Collector Streets, a pavement condition standard of "C" For Local Streets, a pavement condition standard of "C-" and direct staff to prepare a 10-Year Pavement Management Program utilizing these pavement condition standards. Form Review Inbox Reviewed By Date Public Works Director Justin Weldy 11/25/2019 05:46 AM Town Attorney Aaron D. Arnson 11/25/2019 11:19 AM Town Manager Grady E. Miller 11/25/2019 08:44 PM Form Started By: Jeff Pierce Started On: 11/21/2019 02:20 PM Final Approval Date: 11/25/2019