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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, being 47 U.S.C. Section 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.

“Applicant” means any person that applies for a license.

“Application” means a proposal to construct and operate a cable system within the city, transfer a license, renew a license or modify a license. 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, being 47 U.S.C. Section 521 et seq.

“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.

“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 designed to provide cable service which includes video programming and which is provided to multiple subscribers within the city. Such term does not include:

1. A 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 provisions of Title II of the Communications Act of 1934, being 47 U.S.C. Section 201 et seq., except that such facility will be considered a cable system to the extent it 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.

“Cablecasting” means a nonbroadcast signal that originates within the facilities of the cable communications system.

“Change of service” means all requests by existing subscribers for modification to their cable service, such as additions or deletions of premium services, additional outlets, remote controls FM service, and the like. Such term 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.

“City” means the city of Sedona, a municipal corporation of the state of Arizona, in its present boundaries and its future boundaries, as increased or decreased by law.

“City manager” means the city manager of Sedona, Arizona, or his or her designee, as will be communicated to the licensee in writing, if and when such designation occurs.

“Complaint” means a subscriber or citizen issue, presented in verbal or written form to the licensee or the city, 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” means an electronic tuning device which converts transmitted signals to a frequency which permits their reception on an ordinary television receiver.

“Council” means the council of the city of Sedona, 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 persons. This definition includes but is not limited to: 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 annual revenues” or “gross revenues” means:

1. All cash, credits, property of any kind or nature or other consideration, received directly or indirectly by a licensee, arising from or attributable to the licensee’s operation of its cable television system within the city, including, but not limited to:

a. Revenue from all charges for services provided to subscribers;

b. Revenue for all charges for the insertion of commercial advertising upon the cable system;

c. Revenue from all charges for the leased use of studios;

d. Revenue from all charges for installation, removal, connection and reinstatement of equipment necessary for a subscriber to receive cable service;

e. Revenue from the sale, exchange, use or cablecast of any programming developed for community use or institutional users;

f. Revenue from the rental of equipment necessary for subscribers with hearing impairment to receive cable service; and

g. Any other income derived from the cable system.

2. This sum shall be the basis for computing the fee imposed pursuant to SCC 5.15.090. This sum shall not include:

a. The value of complimentary services provided to licensee’s employees or as required by this chapter or the license agreement;

b. The value of complimentary services provided by a licensee for promotional purposes or to nonprofit or humanitarian organizations;

c. Uncollected bad debts from all revenue sources; and

d. Taxes or license fees imposed upon a licensee’s subscribers and collected by a licensee for the agency imposing the tax or fees.

“Interconnect” or “interconnect of facilities” means 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, being 47 U.S.C. Section 532, for commercial use by persons unaffiliated with the licensee.

“License” means the nonexclusive 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 city. This term does not include any license or permit that may be required by this chapter or other laws, ordinances or regulations of the council for the privilege of transacting and carrying on a business within the city or for disturbing the surface of any street or public thoroughfare.

“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.

“Licensee” means the person granted a license agreement by the council and any lawful successor, transferee or assignee of said person.

“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 a 120-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.

“PEG access channel” or “PEG channel” means any channel set aside for public use, educational use or governmental use without a charge by the licensee for channel usage.

Person. Extend and be applied to firms, corporations or organizations, as well as to individuals, unless plainly inapplicable.

“Property of licensee” means all property owned, installed or used within the city 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” means the 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 120 minutes.

2. A degraded signal or picture on one or more channels.

3. Property damage by licensee employees or authorized contractors.

“Standard drop” means that cable connection which requires no more than a 200-foot drop measured from the nearest point of subscriber’s 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 city, county of Yavapai, county of Coconino or the state 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, local government, education and public 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.

“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. [Code 2006 § 12-1-3. Ord. 91-20, 12-10-1991].