Discussion and possible action on any and all matters regarding Ordinance No. 428.  An ordinance of the Mayor and City Council of the City of San Luis, Arizona, amending the San Luis City Code; declaring the document entitled “San Luis Video Services Regulations” a public record; adopting the “San Luis Video Services Regulations” by adding Chapter 5.25 titled “Video Services” relating to regulating, licensing, imposing fees, imposing a penalty for violation, and establishing an effective date; repealing any conflicting provisions and ordinances; providing for severability.  (Kay Marion Macuil, City Attorney)

A.  Action on Reading of Ordinance No. 428 by title only
     (City Clerk to read the ordinance by title only)
B.  Action and adoption of Ordinance No. 428

State and Federal Regulatory Terms
 
Video service means cable service.
Video service providers mean cable companies.
 
Reason recommending adopting the regulation
 
There is no requirement that the city adopt a regulatory ordinance for the video service license.  However, the state statutes and the Federal Communications Commission (FCC) rules are complicated and difficult to understand.  Because of the fiber optic broadband infrastructure grants are bringing more cable access to San Luis, the City Attorney's Office prepared this ordinance, which complies with both the state statute and the new FCC rule.  This ordinance, if adopted, will serve as guidance to city staff in carrying out their responsibilities under the statute.  The City Clerk, the Planning and Zoning Department, the Finance Department and the City Attorney’s Office all have roles in this model licensing regulation.
 
Background
 
Before 2018, cities and towns negotiated license agreements with cable companies.  Since 2018 state and federal legislation and regulation have preempted most local regulations of cable services even though cable companies use the local public right-of-way to provide services to their customers.  Under the pre-emptions, cities were required to adopt uniform video service license agreements.  Cable companies were allowed to keep their agreements until they expired or between January 1, 2020, through June 30, 2020, and chose the model agreement.
 
San Luis, like most cities began to adopt the model agreement in 2019.  (San Luis adopted it June 25, 2019).
 
Highlights of the regulations
 
Applications are filed with the City Clerk, who forwards them to the Planning and Zoning Department. It must be approved within 30 days unless the application is incomplete.
 
The license expires after 10 years, which may be extended by the video services provider.

Undergrounding is required.  
 
The video services provider must obtain a permit to work in the right-of-way and comply with mapping, insurance, performance bonds, security fund, indemnification or similar requirements that apply to the use and occupation of any highway.
 
The license fee is established by resolution of the City Council.
 
The total of the license fee, transaction privilege taxes, and in-kind contributions may not exceed 5% of gross revenues.
 
The city must notify the video services provider of annexations.
 
Public, educational, and government access programming is required.
 
The channel capacity shall include not more than two (2) channels of public, educational, or governmental access programming in the basic service tier of the video service network and not more than two channels of noncommercial governmental programming, at least one of which may be programmed by the federal government, in the digital programming tier of the video service network

A. I MOVE TO APPROVE ORDINANCE NO. 428 BY TITLE ONLY.
     (City Clerk to read the ordinance by title only)
B. I MOVE TO APPROVE AND ADOPT ORDINANCE NO. 428, AS PRESENTED.