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1995-033RESOLUTION NO. `. A RESOLUTION AUTHORIZING THE PARTICIPATION OF THE CITY OF SOUTHLAKE, TEXAS IN ACTIONS TO BE FILED IN THE STATE DISTRICT COURT TO COLLECT DELINQUENT FRANCHISE FEES FROM GENERAL TELEPHONE COMPANY OF THE SOUTHWEST GTE") AND IN AN ACTION PENDING WITH THE PUBLIC UTILITY COMMISSION TO SET ASIDE AN ILLEGAL AUTOMATIC "PASS THROUGH" TARIFF OF GTE; AUTHORIZING THE EXPENDITURES OF FUNDS FOR ATTORNEY AND EXPERT WITNESS FEES; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Southwestern Bell Telephone Company ("Bell') and 57 Texas cities served by Bell have reached a proposed settlement worth over $27.5 million in litigation concerning whether or not a local telephone exchange company must include in its gross receipts, for franchise fee purposes, revenues received from long distance carriers for access to local telephone lines; and WHEREAS, many cities, including the City of Southlake, Texas, served by General Telephone Company of the Southwest ("GTE"), have franchise agreements setting franchise fees for the use of city right-of-way based on a percentage of the gross receipts collected by GTE within the corporate limits of such cities, similar to the franchise agreements litigated in the Bell case; and WHEREAS, certain cities, including the City of Denton, Texas, desire to pursue the collection of delinquent franchise fees owed by GTE and have retained the Austin law firm of Casstevens & Casstevens to proceed with actions before the Public Utility Commission and State District Court, to recover such fees without burdening ratepayers; and f:\files\slake\res\gte (08-24-95) WHEREAS, a consolidated action by cities with franchise fees based upon gross receipts could reduce attorney and expert witness fees which would normally result from a duplication of effort. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: Section I. That the City of Southlake, Texas agrees to participate with other similarly situated Texas cities in the GTE system to pursue an action (1) before the Public Utility Commission to set aside an illegal automatic "pass through" tariff of GTE, and (2) to join Denton in filing an action in State District Court to collect delinquent franchise fees. Section II. That the City of Southlake, Texas agrees to contribute two dollars for each individual residing within its corporate limits, based on the 1990 U.S. Census (except for such portion of its population that may not be residing within the GTE system), to underwrite the cost of legal and expert witness fees to be expended on behalf of the cities in this matter, one dollar being due on September 1, 1995, and the other dollar, if assessed, being due and payable on the date the Steering Committee authorizes such assessment. Section III. That the City Manager, or his designee (hereinafter "Delegate") may participate on the Steering Committee of GTE cities (with franchise fees based on a percentage of gross receipts) and is authorized to receive notices concerning Steering Committee activities at the following address: f:\files\slake\res\gte (08-24-95) Mr. Curtis Hawk City Manager City of Southlake 667 North Carroll Avenue Southlake, Texas 76092 Telephone: (817) 481-5581 Fax: (817) 488-6796 Section IV. That the City Manager is authorized to take those steps reasonable and necessary to comply with the intent of this resolution. Section V. That this resolution shall take effect immediately from and after its passage. p PASSED AND APPROVED ON THIS THE AA DAY OF . 1995. r0ITY pF.,, so-, G 1AAYOnR Jjjs c TY SECRETARY f:\files\slake\res\gte (08-24-95)