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Fax 214 ~
May 17, 1999
The Honorable Rick Stacy
Mayor
Cpty of Southlake
667N Carroll Ave
Southiake, TX 76092
Cear Mayor Stacy:
This is to confirm the C~ty's understanding regarding the expiration date for Ordinance 565 (the
'Ordinance') that was adopted on June 2, 1992, to address SWBT's occupation and use of'public
ngnt~f-way and compensation paid to the City. In our previous letter to you, SWBT had said that
our recorcs showed tbat the Ordinance would expire on June 30, 1999, ACtor discussing the
~erms of the Ordinance with Ms. Debra Drayovitch, City Attorney, and SWBT legal
representatives, we are in agreement that the Ordinance will be in effect through September 30,
~ 999
The growth factor that is included in the Ordinance will continue to be effective on July 1, 1999,
and the City will be receiving another letter from us Yep' soon informing you of the new annual
payment rate That new annual payment rate will only be effective, however, for one quarto---
from July 1 : 999 until September 30, 1999--resulting in a one-quarter pro rata payment at the
new annual payment rate. We are hopeful that a replacement ordinance can be in effect pdor to
the expiration of the Ordinance, otherwise we will need to consider an extension of the current
agreement ~o ailow the completion of those discussions.
FWBT would appreciate your signature below confirming the City's understanding of the status of
C"dinance 565 and returning Io me at:
Three Bell Plaza, Room 1110 A2
308 S. Akarc
Dallas, Texas 75202-5399
Pease let me know if you have any questions or would like to discuss this matter furlher.
Robe~W Burton
Confirmed:
City of Southlake
Title: Mayor
CC: Lori Leu, SWBT
Gan/Tern/, SWBT
Deb'a ?aycvitch
Taylor, Olson, Adkins, Sralla, 8, Elam, LLP.
3400 Bank One Tower
500 Throckmorton Street
Fort Worth, Texas 76102-2'~21
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ORDINANCE NO. ~
lan oRDINANCE WHEREBY THE CITY OF SOUTHL~KE, TEX~S, ~
SOUTHWESTERN BELL TELEPHONE COMPANY AGREE THATt THE
TELEPHONE COMPAITY MAY OPERATE ITS TELECOMMUNICATIONS
BUSINESS IN, ALONGt ACROSS, ONt OVERt ~ UNDER ALL
PUBLIC STREETS, AVENUESt HIGHWAYSt ALLEYSt SIDEWALKSt
BRIDGES OR PUBLIC WAYS IN THE CITY; PROVIDING A TERM;
PRESCRIBING THE COMPENSATION DUE THE CITY UNDER THIS
ORDINi~NCE; PRESCRIBING THE CONDITIONS GOVERNING THE USE
OF PUBLIC RIGHTS-OF-WAY ~a~ND THE PERFORMANCE OF CERTAIN
CONSTRUCTION WORK ON PUBLIC RIGHTS-OF-WAY FOR THE
TELEPHONE COMPi~NYtS TELECOMMUNICATIONS BUSINESS;
SPECIFYING GOVERNINGL~WS; PROVIDING FOR A RELEASE OF ALL
CLAIMS UNDER PRIOR ORDIN/s~NCES; PROVIDING FOR FUTURE
CONTINGENCIES; PROVIDING FOR WRITTEN ACCEPT~=NCE OF THIS
ORDINi~NCE BY THE TELEPHONE COMPlS/~IY; ~ PROVIDING ~
EFFECTIVE DATE.
WHEREAS, Southwestern Bell Telephone Company (hereinafter
referred to as the "Telephone Company") is now and has been engaged
in the telecommunications business in the State of Texas and in
furtherance thereof, has erected and maintained certain items of
its physical plant in the city of Southlake, Texas (hereinafter
referred to as the "City") for many years; and
WHEREAS, the Telephone Company has operated its
telecommunications business in the City under successive ordinances
last of which was ordinance Number 189 adopted
of the city, the
August 15, 1972; and
waEREAS, it is recognized by the parties that changes in the
telecommunications industry, changes in technology, changes in
state and federal law, and changes in the accounting practices
mandated by the Uniform System of Accounts promulgated by the
Federal Communications Commission ("FCC"), along with regulatory
requirements of the Texas Public Utility Commission ("PUC"), have
caused the traditional method of determining the amount of
compensation to municipalities to become administratively
impractical and obsolete for telecommunications utilities only.
In order to resolve these issues in a manner satisfactory to both
the City and the Telephone Company, the City and the Telephone
Company have chosen the method of determining the amount of
compensation provided for in this Ordinance to eliminate the
expense and time related to audits, to achieve administrative
simplicity, to provide the City with predictable revenues and an
opportunity for growth and to avoid the expense and delays of
litigation which could be necessary to resolve any issues in
controversy between the parties; and
W~EREAS, this Ordinance is adopted by the City Council of the
City of Southlake pursuant to the provisions of Article 1175,
Section 2, V.A.T.S., Article 1446c, Section 21, V.A.T.S., and
Chapter X of the Charter of the City of Southlake; and
W~EREAS, it is to the mutual advantage of both the City and
the Telephone Company that an agreement should be entered into
between the Telephone Company and the city pursuant to
Section 10.02 of the Charter of the City of Southlake, establishing
the conditions under which the Telephone Company shall maintain and
construct its physical plant in the City in the future;
NOWt THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE~ TEXAS, THAT:
$[akel I \s~be [ [ .or1
SECTION i - PURPOSE
Pursuant to the laws of the State of Texas, Chapter X of the
Charter of the City of Southlake, and this Ordinance, the Telephone
Company has the non-exclusive right and privilege to use the public
rights-of-way in the City for the operation of a telecommunications
system subject to the restrictions set forth herein. The Telephone
Company may use such rights-of-way for its telecommunications
facilities. The Telephone Company's facilities and transmission
media used in or incident to the provision of telecommunications
service and to the maintenance of a telecommunications business by
the Telephone Company in the City shall remain as now constructed,
subject to such changes as under the conditions prescribed in this
Ordinance may be considered necessary to the public health and
safety by the city in the exercise of its lawful police powers and
such changes and extensions as may be considered necessary by the
Telephone Company in the pursuit of its telecommunications
business. The terms of this Ordinance shall apply throughout the
City, and to all operations of the Telephone Company within the
city, and shall include all operations and facilities used in whole
or in part in the provision of telecommunications services in newly
annexed areas upon the effective date of any annexation.
SECTION 2 - ADDITIONAL AUTHORITY REQUIRED
The Telephone Company is not authorized to provide cable
television service in the City under this Ordinance, but must first
stakel 1 \$~bet t. or1
obtain a franchise agreement from the city for that purpose, under
such terms and conditions as may be required by law.
SECTION 3 - DEFINITIONS
Whenever used in this Ordinance, the following words and terms
shall have the definitions and meanings provided in this Section:
(1) FACILITIES= all Telephone Company duct spaces, manholes,
poles, conduits, underground
equipment, structures and
transmission media.
and overhead passageways, and other
appurtenances and all associated
(3)
(4)
highways,
of the City.
(2) USE: any Telephone Company acquisition, construction,
reconstruction, maintenance or operation of any facilities in,
over, under, along, through or across the public rights-of-way for
any purpose whatsoever.
CITY: The City of Southlake, Texas.
RIGHTS-OF-WAY: all present and future streets, avenues,
alleys, bridges and public ways within the city limits
(5) DIRECTION OF THE CITY: all
regulations, and charter provisions of
ordinances, laws, rules,
the city now in force or
that may hereafter be passed and adopted which are not inconsistent
with this Ordinance.
(6) TRANSMISSION MEDIA:
fibers, wires or other physical
all Telephone Company cables,
devices used to transmit and/or
receive communication signals, whether analog, digital or of other
characteristics, and whether for voice, data or other purposes.
- 4 -
stakel I \st*~e[ [.or1
(7) NON-EXCLUSIVE: no rights agreed to in this Ordinance by
the City shall be exclusive, and the city reserves the right to
grant franchises, licenses, easements or permissions to use the
public rights-of-way within the city to any person or entity as the
city, in
interest.
(S)
its sole discretion, may determine to be in the public
TELEPHONE COMPANY: Southwestern Bell Telephone Company.
SECTION 4 - TERM
This Ordinance shall continue for a period of seven (7) years
from the effective date hereof; provided that at the expiration of
the initial period, such term may be extended by mutual written
agreement of the City and Telephone Company.
SECTION 5 - GENERAL CONDITIONS OF USE
(a) Placement of Poles and Equipment. All poles placed shall
be of sound material and reasonably straight, and shall be set so
that they will not interfere with the flow of water in any gutter
or drain, and so that the same will not unduly interfere with
ordinary travel on the streets or sidewalks. The location and
route of all poles, stubs, guys, anchors, conduits, fiber and
cables placed and constructed by the Telephone Company in the
construction and maintenance of its telecommunications system in
the City shall be subject to the lawful, reasonable and proper
control and direction of the city.
s t akel 1 \st~be[ [.o~'1
-- 5 --
(b) Requirement of Relocation. As authorized by Section
55(b) of the Public Utility Regulatory Act (PUl{A) Art. 1446c
V.A.C.S., the City reserves the right to require the Telephone
Company, at Telephone Company's expense, to relocate its facilities
to permit the widening or straightening of streets by giving to the
Telephone Company thirty (30) days notice and specifying the new
location for the facilities along the right-of-way of the street
or streets.
(c) Undergroun4 Placement. Any work done in connection with
the Telephone Company's use of the rights-of-way shall be subject
to the police power and direction of the City. The Telephone
Company may be required to place certain facilities underground
according to reasonable requirements that may be adopted from time
to time by the Southlake city Council; provided, however, Telephone
Company shall be given due notice and shall be entitled to a
hearing before the Southlake city Council prior to the adoption of
any such requirements.
(d) Non-interference. All use of the rights-of-way by the
Telephone Company shall interfere as little as reasonably
practicable with the use of the rights-of-way by others.
(e) Space for City's use in Existing Facilities. The
Telephone Company shall permit the City of Southlake to use without
charge, solely for its own non-commercial telecommunications
purposes, the following described facilities: One duct in all of
Telephone Company's existing ducted facilities within the city
- 6 -
slakel I \s~bet [.or1
limits, with sufficient space for necessary joints. Also,
Telephone Company shall provide adequate space on all non-ducted
facilities now existing or hereafter constructed on or within the
rights-of-way for the city to attach transmission media for the
city's own non-commercial use. Where insufficient facilities exist
to accommodate the city, other existing facilities may be
substituted therefore with the concurrence of the city.
(f) Space for city's Use in New Facilities. If the Telephone
Company shall hereafter extend its existing underground conduits,
it shall provide one duct in each additional conduit for the city's
own purposes, as provided above. The Telephone Company shall
cooperate with the city at all times by providing timely, complete
and continuous information regarding the location of all conduit,
along with such maps, plats, construction documents and drawings
as may exist or be created from time to time. The city shall not
use any facilities which are provided for City's use by the
Telephone Company for power transmission purposes, nor otherwise
use any such circuits so as to unreasonably interfere with
telecommunications or facilities; provided, that Telephone Company
shall not use high potential wires for power transmission in its
facilities, nor otherwise so as to unreasonably interfere with the
operation of city's communications or facilities. Telephone
Company and City shall cooperate and coordinate their efforts to
make the most efficient and economical use of facilities. To this
end, the parties will make periodic assessments of their needs,
s~akel I \s~be~ [.or1
- 7 -
including, but not limited to use and exchange of facilities to
meet requirements. The City shall keep Telephone Company aware of
its needs and shall notify Telephone
utilizes Telephone Company facilities.
(g) Non-commercial Use by city.
Company in writing when it
city shall not sell, lease
or otherwise make available its right to use Telephone Company's
facilities to any third party for commercial purposes. Such rights
are provided solely for the non-commercial exclusive use by the
City. However, this restriction shall not prevent the City from
using the services of a third party commercial entity to manage or
operate the City's facilities on behalf of the City so long as no
resale or other commercial use of such facilities shall occur.
(h) Use of Facilities by Other Entities. The Telephone
Company is not authorized to license or lease to any person or
entity the right to occupy or use the City's rights-of-way for the
conduct of any private business. The Telephone Company may be
required to attach its transmission media to facilities owned and
maintained by any person or entity franchised by the City or to
permit the transmission media of any person or entity franchised
by the City to be attached to the facilities owned and maintained
by the Telephone Company upon reasonable, non-discriminatory terms.
The Telephone Company may require any person or entity to furnish
evidence of adequate insurance covering the Telephone Company and
adequate bonds covering the performance of the person or entity
attaching to the Telephone Company's facilities as a condition
- 8 -
sLakel I \s~bet L.orl
precedent to granting permission to attach transmission media to
Telephone Company's facilities; provided Telephone Company's
requirements for such insurance shall be reasonable, as determined
by the City.
(i) Location of Transmission Media. Transmission media shall
be so located on the facilities as to be safe and not to interfere
unnecessarily with the use of the rights-of-way by others,
including persons or entities authorized to use the facilities.
The Telephone Company shall not be required to attach its
transmission media to the facilities of any other person or entity
or to permit the transmission media of any other person or entity
to be attached to Telephone Company's facilities if it can be shown
satisfactorily to the City that the Telephone Company will be
subjected to increased risks of interruption of service or to
increased liability for accidents, or if the facilities of the
other person or entity are not of the character, design, and
construction required by, or are not being maintained in accordance
with industry standards or practice.
SECTION 6 - CONSTRUCTION, MAINTENANCE AND EXCAVATION
(a) Removal of Dangerous Facilltles. The City shall have the
power at any time to order and require the Telephone Company to
remove any of its facilities that are dangerous to life or
property, and in case the Telephone Company, after reasonable
notice to the Division Manager over outside plant engineering and
slake] ]\sMbeL t .or1
- 9
construction, fails or refuses to act, then the City, at the
direction of the Director of Public Works, shall have the power to
remove or abate the dangerous conditions at the expense of the
Telephone Company, all without compensation or liability for
damages to the Telephone Company.
(b) Excavation and Restoration.
(i) Except in an emergency, the Telephone Company shall
not excavate any right-of-way without first notifying the Director
of Public Works, and, if approval is required it shall be given if
the proposed excavation is in compliance with the requirements of
federal, state, and City, laws,
plans for projects involving
cable and underground conduit
way shall be submitted to the
rules and regulations. Engineering
significant amounts of new buried
systems to be placed in rights-of-
Director of Public Works for review
and approval prior to construction. The Director of Public Works
or the Director's designee shall be notified as soon as practicable
regarding work performed under emergency conditions.
(ii) Telephone Company shall promptly restore to as good
condition as before the commencement of work as determined by the
Director of Public Works, all rights-of-way damaged or excavated
by the Telephone Company. If the City reasonably determines within
one year from the date of the restoration, that the right-of-way
requires additional
condition as before
Company shall
restoration work to place it in as good a
the commencement of the work, the Telephone
perform the additional work to the reasonable
- l0 -
stakel I\s~beL L .or1
satisfaction of the Director of Public Works. The Telephone
Company shall not obstruct a right-of-way for a longer period than
reasonably necessary to execute all work.
(¢) Proteotion of the Public. When Telephone Company shall
make or cause to be made excavations or shall place obstructions
in any street, alley, or other public place, the public shall be
protected by barriers, lights and signs, which shall be placed,
erected, and maintained by Telephone Company. All construction and
maintenance signs and barricades at work sites shall be consistent
with the standards and provisions of the Texas Manual on Uniform
Traffic Control Devices.
SECTION 7 - WORK BY OTHERSt CONSTRUCTION BY ABUTTING OWNERS,
ALTERATION TO CONFORM WITH PUBLIC IMPROVEMENT
(a) Other Right-of-Way Construction. The city reserves the
right to lay, and permit to be laid, sewer, gas, water, and other
pipe lines or cables and conduits, including telecommunications and
cable television lines, and to do and permit to be done any
underground and overhead work that may be deemed necessary or
proper by the city, in, across, along, over, or under any right-
of-way or public place occupied by the Telephone Company, and to
change any curb or sidewalk or the grade of any street. In
performing or permitting such work to be done, the city shall not
be liable to the Telephone Company for any damages related to the
work, nor shall the City be liable to the Telephone Company for any
slake! ! \sMbeL k .or1
11 -
damages not proximately caused by the City's sole negligence;
provided nothing herein shall relieve any other person or
corporation from liability for damage to facilities of the
Telephone Company.
abutting
Rights-of-Way Grants
landowners to occupy
to Others. If the City authorizes
space under the surface of any
street, alley, highway, or public place, the grant to an abutting
landowner shall be subject to the rights of the Telephone Company
granted in this ordinance. If the City plans to close or abandon
any right-of-way which contains any existing Telephone Company
facilities, city shall, if requested by Telephone Company, (1)
reserve a continuing right for the Telephone Company's facilities,
(2) give notice of the date the City of Southlake city Council is
to consider the closure or abandonment, and (3) make any subsequent
conveyance of land involved in the closure or abandonment subject
to the specific right of continued occupancy by Telephone Company.
(c) Alterations or Changes to
shall be necessary for the city to
alter, change, adapt, or conform its
Rights-of-Way. Whenever it
require Telephone Company to
facilities within the right-
of-way, the alterations or changes shall be made promptly, with
consideration given to the magnitude of the alterations or changes,
without claim for reimbursement or damages against the city. If
these requirements impose a financial hardship upon the Telephone
Company, the Telephone Company shall have the right to present
alternative proposals to the city, and the city shall give due
- 12 -
stakel l\s~be[ [.or1
consideration to any alternative proposals. It is
however, that the City shall not require Telephone
remove its facilities entirely from the right-of-way.
understood,
Company to
If the City
requires the Telephone Company to adapt or conform its facilities
to enable any other entity or person, except the City, to use, or
to use with greater convenience, rights-of-way or public property,
Telephone Company shall not be required to make any changes until
the other entity or person shall reimburse or make arrangements
satisfactory to Telephone Company to reimburse the Telephone
Company for any loss and expense caused by or arising out of the
change; provided, however, that the City shall never be liable for
the reimbursement.
(d) Relocation of Facilities. For public improvement
projects the city will notify the Telephone Company and give it a
reasonable time, as determined by the Director of Public Works,
when relocation of facilities is required. Prior to the beginning
of construction by the City, if the Telephone Company has not
relocated its affected facilities within the rights-of-way after
being afforded a reasonable length of time to do so, giving
consideration to the scope of the facility relocation, and when
the delay is not caused by actions of the city, the following
procedure will be followed. The City shall provide the Telephone
Company with reasonable notice of failure to act and request
relocation. If the Telephone Company continues to delay, the
City's Director of Public Works and the Telephone Company's
stakel I \sW~e t t .or1
-- 13 --
Division Manager over outside plant engineering and construction
will jointly review the relocation request in an expeditious manner
to establish a mutually acceptable completion date for the
relocation. If the Telephone Company continues to delay or does
not meet the revised completion date, the City's Director of Public
Works shall provide not less than five (5) days written notice to
the Telephone Company's Division Manager over outside plant
engineering and construction advising the Telephone Company of the
City's intent to relocate the affected facilities. If after
expiration of the written notice required by the preceding
sentence, the Telephone Company continues to delay, the city shall
have the right to relocate the affected facilities, and the
Telephone Company shall reimburse the city for all costs of the
relocation. The City shall not be liable to the Telephone Company
for any damage to the facilities unless proximately caused by the
city's gross negligence, and shall not be liable in any event for
any consequential damages relating to service interruptions. The
relocation by the City will be performed only when the Director of
Public Works determines that it is necessary to prevent disruption
of a City project. The relocation will be accomplished by means
of temporary construction and in a manner which will not
unreasonably disrupt telecommunications services. The city shall
make every effort to coordinate with the Telephone Company prior
to the necessary relocations and will not attempt to relocate the
facilities until the city has exhausted the foregoing procedures.
sLakel l\s~beL L.o~l
- 14 -
The Telephone Company shall ultimately be responsible for the final
permanent relocation of the Telephone Company's facilities.
SECTION S - TEMPORARY REARRANGEMENT OF AERIAL WIRES
Upon request, the Telephone Company shall remove or raise or
lower its aerial wires, fiber or cables temporarily to permit the
moving of houses or other bulky structures. The expense of such
temporary rearrangements shall be paid by the party or parties
requesting them, and the Telephone Company may require payment in
advance. The Telephone Company shall be given not less than forty-
eight (48) hours advance notice to arrange for such temporary
rearrangements.
SECTION 9 - TREE TRIMMING
The right, license, privilege and permission is hereby granted
to the Telephone Company, its contractors and agents, to trim trees
upon and overhanging the streets, avenues, highways, alleys,
sidewalks and public ways of the City so as to prevent the branches
from coming in contact with the aerial wires, fiber or cables of
the Telephone Company, and when so directed by the City, trimming
shall be done under the supervision and direction of the City and
of any City official to whom these duties have been or may be
delegated.
- 15 -
stakell\s~Lt.orl
SECTION 10 - ADMINISTRATION OF ORDINANCE
(a) Inquiries. The City may, at
pertaining to this Ordinance and the
any time,
Telephone
make inquiries
Company shall
respond to the inquiries on a timely basis.
(b) Documents. Copies of petitions, applications,
communications and reports submitted by the Telephone Company to
the Federal Communications Commission or the Public Utility
Commission of Texas shall be provided to the city upon request.
(c) Rules. The City may establish, after reasonable notice,
such rules and regulations as may be appropriate for the
administration of this Ordinance and the construction of the
Telephone Company's facilities on City property to the extent
permitted by law.
SECTION 11 - COMPENSATION TO THE CITY
(a) Gross Receipts Charge. As compensation
occupancy, oversight, supervision and regulation
for the use,
of the city's
rights-of-way, the City hereby imposes a Charge upon the Gross
Receipts (as hereinafter defined) of the Telephone Company. This
Charge is in lieu of and in full compensation for any tax, license,
charge, right-of-way permit or inspection fee, whether charged to
the Telephone Company or its contractor(s), or any right-of-way,
easement, street or alley rental, corporate franchise tax or other
character of charge for use and occupancy of the rights-of-way
within the city, except for the usual ad valorem taxes, special
stakel l\s~bet t .or1
-- 16 -
assessments in accordance with State law, applicable municipally
owned utility service charges, or sales taxes now or hereafter
levied by the City in accordance with State law. The amount of the
Charge for the first year this Ordinance is
$10,800.00. In no event shall this Charge be
amount for each year this Ordinance is in
provided in the case
(h) of this Section,
(b) Billing of
according to tariff,
customer service charges included within the term "Gross Receipts,"
as defined herein. Gross Receipts, for purposes of this Charge,
shall include only customer service charges which meet all four of
the following conditions: (1) the charges are for Telephone
Company services provided within the city; (2) the charges are
billed through the Telephone Company's Customer Records Information
System ("CRIS"); (3) the charges are the recurring charges for the
local exchange access rate element specified in the Telephone
Company's tariffs filed with the PUC; and (4) such charges are
subject to an interstate end user common line ("EUCL") charge as
imposed by the Federal Communications Commission ("FCC").
(c) Annual Adjustment of the Charge. For the second and
subsequent years while this Ordinance remains in effect, the above
Charge is subject to adjustment by application of the Growth Factor
set out in Paragraph (e) of this Section. This adjustment for the
in effect shall be
less than the above
effect, except as
of disannexation as set forth in Paragraph
or as provided in Section 16.
the Charge. The Telephone Company will,
bill the Charge to the customers who pay the
s[akel l\s~be[ ~ .or1
-- 17 -
Growth Factor will be made effective as of each anniversary date
of this Ordinance. The Telephone Company shall adjust its billings
to customers to account for any undercollection or overcollection
of the Charge for the prior year.
(d) Quarterly Payments. The Charge for each year shall be
paid in four (4) equal installments on May 31, August 31, November
30 and February 28. In the event of any over or undercollection
from customers at the expiration of this Ordinance, the Telephone
Company may make a pro rata one-time credit or charge to the
customer billing for affected customers who are billed for a
service included within Gross Receipts, as defined in Paragraph
(b) of this Section. This will be accomplished within 150 days
following the date of expiration of this Ordinance. If, however,
it is impractical to credit any overcollection to customers, then
the overcollection shall be paid to the City.
(e) Growth Factor. The Growth Factor shall be calculated by
dividing the Telephone Company's revenues within the corporate
limits of the City subject to the State telecommunications sales
tax ("Sales Tax Revenues") applicable to services rendered within
the corporate limits of the City for the twelve (12) month period
ending three (3) months prior to the next anniversary date of this
Ordinance by the Sales Tax Revenues for the twelve (12) month
period ending three (3) months prior to either the initial
effective date or the preceding anniversary date of this Ordinance,
as applicable. The Growth Factor calculated by the method set
- 18
forth in the preceding sentence, if greater than one, shall be
multiplied by the current year's Charge to determine the dollar
amount of the Charge for the next year. If the Growth Factor
calculated above is one or less, the Charge for the next year shall
be equal to the current year's Charge. The Telephone Company will
adjust its customer billing to account for the Growth Factor
calculated above. Once the Growth Factor calculation is complete,
the Telephone Company will provide the City with the following
information: the Sales Tax Revenues upon which the Growth Factor
calculation was based.
(f) Audits. The City agrees to rely upon audits by the Texas
Comptroller of Public Accounts of State telecommunications sales
taxes as reported by the Telephone Company which are performed in
compliance with Sections 151.023 and 151.027 of the Texas Tax Code
Annotated (Vernon's 1982). The Growth Factor shall be recomputed
to reflect any final, nonappealable adjustments made pursuant to
an audit finding by the Texas Comptroller of an inaccuracy in the
Telephone Company's reports of revenues subject to State
telecommunications sales taxes. The Charge shall be recalculated
using the Growth Factor recomputed as specified in the preceding
sentence, and the recalculated Charge shall be used for all future
calculations required by this Ordinance. Any overpayment or
underpayment resulting from such recalculation shall be subtracted
from or added to the first installment due the following year. If
any overpayment or underpayment shall be due during the final year
- 19
sLakell\s~bett.orl
of this Ordinance, then payment shall be made as follows. In the
case of overpayment by the Telephone Company, the City shall pay
such overpayment to the Telephone Company within 150 days following
the expiration of this Ordinance and, in the case of underpayment
by the Telephone Company, the Telephone Company shall pay such
underpayment to the City within 150 days following the expiration
of this Ordinance.
(g) Offset in Case of Invalidation. Should the City not have
the legal power to agree that the payment of the Charge calculated
in this Section may be accepted in lieu of the tax, license,
charge, right-of-way permit or inspection fees, or any right-of-
way easement, street or alley rental, corporate franchise tax, or
other character of charge for use and occupancy of the right-of-
way within the City, then the City agrees that it will apply so
much of the compensation under this ordinance that is necessary to
pay the tax, license, charge, right-of-way permit or inspection
fees, or any right-of-way easement, street or alley rental,
corporate franchise tax, or other character of charge.
(h) Annexation and Disannexation.
(i) If territory within the boundaries of the City is
disannexed and a new incorporated municipality is created or an
existing incorporated municipality is consolidated or annexed and
the affected municipality is serviced by the Telephone Company,
notwithstanding other provisions of this ordinance, the Charge
shall be adjusted. To accomplish the adjustment, the City shall,
- 2O
skakell\s~tt.~l
within thirty (30) days of the annexation or disannexation, provide
the Telephone Company with maps of the affected area showing the
new boundaries of the City.
(ii) If a city is annexed or consolidated into the City,
the charge for the city will be adjusted to include the amount of
the payment, if any, made by the Telephone Company in the preceding
payment year to the incorporated municipality being annexed or
consolidated. If the annexed municipality did not impose a charge
or if the territory is disannexed and a new incorporated
municipality is created, then the Telephone Company shall calculate
the total Gross Receipts which were billed within the City during
the first full calendar month following the date of the annexation
or disannexation in accordance with the rules of the Texas
Comptroller of Public Accounts for purposes of the local sales and
use tax. This sum shall be divided by the total Gross Receipts
which were billed within the City during the last full calendar
month prior to the date of the annexation or disannexation in
accordance with the rules of the Texas Comptroller of Public
Accounts for purposes of the local sales and use tax. The
resulting figure shall be rounded to four decimal places and yields
the percentage by which the Charge shall be adjusted; in the case
of annexation, the Charge shall be increased by this percent, and,
in the case of disannexation the Charge shall be decreased by this
percent. The Charge, as adjusted, shall be prorated for the
remainder of the calendar year following the date of the annexation
- 21 -
stakell\s.beLi.orl
or disannexation in accordance with the rules of the Texas
Comptroller of Public Accounts for purposes of the local sales and
use tax. Once adjusted, the new Charge shall be used for all
future calculations required by this Ordinance.
(i) Method of Collection of Charge. The recovery of the
Charge from Telephone Company's customers is subject to the
jurisdiction of the regulatory authorities and not the City. The
obligation of Telephone Company to pay compensation under this
Ordinance is contractual, and the City makes no requirements as to
the method the Telephone Company uses to recover the Charge.
SECTION 12 - ASSIGNMENT OF ORDINANCE
This Ordinance and any rights or privileges hereunder shall
not be assignable to any other entity without the express consent
of the Southlake City Council. The consent shall be evidenced by
an ordinance which shall fully recite the terms and conditions, if
any, upon which such consent is given.
SECTION 13 - MUTUAL RELEASES
The City hereby fully releases, discharges, settles and
compromises any and all claims which the City has made or could
have made arising out of or connected with Ordinance No. 189
adopted August 15, 1972, and renewed or extended thereafter, and
its Dredacessor ordinances, if any, (hereinafter referred to
collectively as "Ordinance 189"). This full and complete release
- 22 -
of claims for any matters under Ordinance 189 shall be for the
benefit of Southwestern Bell Telephone Company; its parent; its
affiliates; their directors, officers and employees; successors and
assigns; and includes any and all claims, actions, causes of action
and controversies, presently known or unknown, arising directly or
indirectly out of or connected with the Telephone Company's
obligations to the City pursuant to the provisions of Ordinance
189. Southwestern Bell Telephone Company, its parent, its
affiliates, successors and assigns hereby fully release, discharge,
settle and compromise any and all claims, actions, causes of action
or controversies heretofore made or which could have been made,
known or unknown, against the City, its officers or its employees,
arising out of or connected with any matters under Ordinance 189.
It is the intent of the City and the Telephone Company to
enter into the foregoing mutual releases in order to reach a
compromise that is acceptable to both the city and the Telephone
Company. This Ordinance and the mutual releases set forth in this
Section represent a compromise of each party's claims as well as
each party's defenses, and is not intended to be and is not an
admission of liability or vulnerability by either party to the
other with respect to either the claims or the defenses asserted
against the other.
- 23
s[akell\sube[[.~l
sECTION 14 - FUTURE coNTINGENCY
Notwithstanding anything contained in this ordinance to the
contrary, in the event that (a) this ordinance or any part hereof,
(b) any tariff provision by which the Telephone Company seeks to
collect the charge imposed by this Ordinance, or (c) any procedure
provided in this ordinance, or (d) any compensation due the City
under this ordinance, becomeS, or is declared or determined by a
judicial, administrative or legislative authority exercising its
jurisdiction to be excessive, unrecoverable, unenforceable, void,
unlawful or otherwise inapplicable, in whole or in part, the
Telephone Company and city shall meet and negotiate a new ordinance
that is in compliance with the authority's decision or enactment
and, unleSS explicitly prohibited, the new ordinance shall provide
the city with a level of compensation comparable to that set forth
in this ordinance provided that such compensation is recoverable
by the Telephone company in a mutually agreed manner permitted by
law for the unexpired portion of the term of this Ordinance.
sECTION 15 - TREATMENT OF OTHER cITIES
It is understood that the Telephone company is currently in
the process of negotiating similar ordinances with other cities
throughout the state. The Telephone company agrees that if an
ordinance governing street use with another city in this state
contains a provision which the city determines would be more
advantageOUS to it than the terms of this ordinance, including but
- 24 -
not limited to indemnity and venue provisions, the City may require
that this ordinance be reopened for negotiation of the more
advantageous provision. The Telephone Company agrees that it will
provide to the city treatment comparable to that afforded other
cities by the Telephone Company, giving due consideration to the
context of the provision on which the renegotiation is sought and
the effect of the proposed amendment on the meaning of the
ordinance as a whole. It is understood that the Telephone Company
will not agree to an amendment that results in a higher level of
compensation
methodologies
compensation
section will
to the city than that level
used by the Telephone Company to
in other Texas cities. An amendment
not be applied retroactively.
produced by the
calculate
under this
SECTION 16 - REPEAL OF PREVIOUS ORDINANCE
ORDINANCE
ordinance No. 189, adopted August 15, 1972,
repealed upon the effective date of this ordinance.
AND PRECEDENCE OF THIS
as amended, is
This ordinance
takes precedence over any past or future ordinance that would, by
its terms or effect, regulate the use or occupancy of the city's
right-of-way by the Telephone Company for its telecommunications
system as described and regulated in this ordinance.
stakel l~st~bet t.orl
- 25-
SECTION 17 - GOVE~ING L~W
(a) Interpretation. This Ordinance shall be construed in
accordance with the city Charter and city Code(s) in effect on the
date of passage of this Ordinance to the extent that the Charter
and Code(s) are not in conflict with or in violation of the
Constitution and laws of the United States or the State of Texas.
(b) combined Efforts. This Ordinance shall be construed and
deemed to have been drafted by the combined efforts of the City and
the Telephone Company.
SECTION 18 - ACCEPTANCE OF AGREEMENT AND EFFECTIVE DATE
The city shall deliver a properly certified copy of this
Ordinance to the Telephone Company within three (3) working days
of its final passage. The Telephone Company shall have thirty (30)
days from and after the final passage of this Ordinance to file its
written acceptance of this Ordinance with the city Secretary. This
Ordinance shall become effective beginning the first day of the
quarter not less than forty-five (45) days after its final passage
by the City.
PASSED AND APPROVED following the ~nd reading
hereof this 2nd
1992.
day of June
- 26
.
~ty Secretary
I, Sandra L. LeGrand
, City Secretary of
the City of Southlake, Texas, do hereby certify that the foregoing
is a true and correct copy of Ordinance No. 565 , finally
passed and approved by the City Council of Southlake, Texas,
following the ~nnn~ reading thereof at a regular
meeting held on the 2nd day of June
1992.
27 -
Fort Worth Star-Telegram k**INVOICE/AFFIDJVT T***INVOTCE".r VIT***
400 W.SEVENTH STREET•FORT WORTH,TEXAS 76102
THE STATE OF TEXAS
unty of Tarrant
Before me, a Notary Public in and for said County and State, this day
personally appeared KELLEY ALLARD Billing Specialist for the Fort Worth
Star-Telegram , published by the Star-Telegram Inc . at Fort Worth, in Tarrant
County, Texas ; and who, after being duly sworn, did depose and say that the
following clipping of an advertisement was published in the above named
paper on the following dates:
DATE AD INVOICE NO. DESCRIPTION AD SIZE TOTAL RATE AMOUNT
INCHLI' NE
JUN 05 . 6880776 CL . 358 1X63 L 63 . 40 25 . 20
ORDINANCE NO.565 June 5
AN ORDINANCE
WHEREBY THE CITY
OF SOUTHLAKE TEX- '.P . O • # ORD . 565
AS AND SOUTNWEST-
Ef�N BELL TELE-
PHONE COMPANY
AGREE THAT, THE - - -
TELEPHONE COMPA-
NY MAY OPERATE ITS
TELECOMMUNI-
CATIONS BUSINESS IN
ALONG( ACROSS ON,
OVER AND UNDER ALL
PUBLIC STREETS AVE-
NUES HIGHWAYS AL-
LEYS SIDEWALKS _ _
BRIDGES OR PUBLIC
WAYS IN THE CITY;
PROVIDING A TERM, -
PRESCRIBING THE
COMPENSATION DUE ------- ---- ----
I
THE CITY UNDER THIS �
ORDINANCE PRES-
CRIBING THE CONDI- SIGNS
TIONS GOVERNING
HE USE OF PUBLIC ND SWORN TO B FOfE- ME, T I''S HE ', Y OF "---- - , 1992
IGHTS-OF-WAY AND
F CERTAIN PERFORMANCE NOTARY PUBLIC
_
ON STR UCT I ON
-7C5_&\_N,2N ,
WORK ON PUBLIC .. ._...-_..._...._. __._.... .......__
RIGHTS-OF-WAY FOR TARRANT COUNT , T XAS
THE TELEPHONE COM-
PANY'S TELECOM-
MUNICATIONS BUSI-
NESS,.
SPECIFYING
GOVRNING LAWS; -tv.-s1'�vy.y�y^y
PROVIDING FOR A RE- o µY, sIt pl�� '�'
LEASES ALL CLAIMS _ ..44 / ''%% KET R�-4:�T 14C-EER--0
UNDER PRIOR ORDI- ---
FORNAN F; PROVIDING �• 1c-•�COMMISSION EXPIRES P
FOR FUTURE CON-
TINGENCIES; PROVID-
ING FOR WRITTEN AC-
CEPTANCE OF THIS ...__.. . ..._..-_... _....-......._..___... ___._. ....Jhit''or`'�`''_ _JANUAaY-.28.,-19 -_- -....... . _.......__ _..._..._.
ORDINANCE BY THE ` �=
TELPHONE COMPANY,.
AND PROVIDING AN ,�
EFFECTIVE DATE.P AnLt//v)
ED
IN SECONED D READING THIS-TEAR A NG THIS PERFORATION AND RETURN THE LOWER PORTION WITH YOUR PAYMENT—
Gary FIckes,
AMar'orrof Soufhlake
TSandraL.LeGrand, REMIT TO : 400 W . SEVENTH, FW, TX 76102
City Secretary
Approved as to form:
Eim0r
t hStaFIENIl i• X kcPFXIXrg X)401-2051
r-Tele� ;� ACCOUNT C I T 5 7 AMOUNT 25. 20
NUMBER DUE
PAGE Or
z
CITY OF SOUTHLAKE ORIGINAL
667 N CARROLL AVE 25.20
SOUTHLAKE TX 76092-8898 PLEASE PAY ►
ATTN : SANDY LEGRAND THIS AMOUNT
PLEASE WRITE IN AMOUNT ENCLOSED
Fort Worth Star-Telegram ***INVOICE/AFFIDAVIT***INVOICE/AFFIDAVIT***
400 W.SEVENTH STREET•FORT WORTH,TEXAS 76102
•
--E STATE OF TEXAS
unty of Tarrant
Before me, a Notary Public in and for said County and State, this day
personally appeared is r,Ry Ar,r,r,RD Billing Specialist for the Fort Worth
Star-Telegram, published by the Star-Telegram Inc . at Fort Worth, in Tarrant
County, Texas; and who, after being duly sworn, did depose and say that the
following clipping of an advertisement was published in the above named
paper on the following dates:
DATE AD INVOICE NO. DESCRIPTION AD SIZE TOTAL
INCH/LINE RATE AMOUNT
MAY 08 6867333 CL . 358 1X73 L 73 . 40 29 . 20
May 8
NOTICE RINGBLIC P . O. # ORD . NO . 565
NOTICE 1s hereby 9IVentoalI
Interestedoersons at theLi
ty Council of the City of Souglh"
ain
�u �Texas,hearing d llprrnieetihegg
to be held on May 19 lwz,at
7d10D•n r SWarrketityHall,
": .m.fh Carroll Avenue,
Southlake,Texas.
to
Purpose°f he readingof
1358 Legal Notices
the followln9 ordinance:
ORDINANCE NO.-0
AN ORDINANCE
WHEREBY THE CITY V
^F SOUTHLAKE TEx- SIGNED
S ANDSOUTH{NEST-
E- ND SWORN TO BEFORE ME , THIS THE 12TH D Y OF
HONi�N BELL TELE-
GREE COMPANY I Y, 992
EL EE THAT THE
ELEPHONE cbMPA- NOTARY PUBLIC —
NY MAY OPERATE ITS
TELECOMMUNICA- l Z0 �-` �\
TIONS BUSINESS IN,
ALONG, ACROSS ON, TARRANT COLNTY, TEXAS
OVER THROUGH
ABOVE AND UNDEIii --
ALLPUBLICSTREETS
AVENUES HIGH- �,yKt;m,,o.y.yo wov�9+0^d
WAYS ALLEYS SIDE-
WALKS BRIDGES OR -��av P"h
PUBLIE WAYS IN THE ' ��'��z4f
CITY; PROVIDING A �b �, KRTttRYiW�. SPENCER
THRMCOMPENRIBOATION i �r��'4 OOMMISSION EXPIRES
DUE THE CITY UN- $''"e• yam: O
NANCET PIRESCRIIB- 4tq`�oF.ti*}_.....-}AN��R ALB; ��7j ...
ING THE CONDITIONS 1'ib.,w 4.o
Gp-WAY VERNINGTHE USE
SF PUB A N D THE )11-)
PERFORMANCE C- TEAR ALON THIS PERFORATION AND RETURN THE LOWER PORTION WITH YOUR PAYMENT-�
CERTAIN CONSTRUC-
TION WORK ON PUB-
LIC RIGHTS-OF-WAY
FOR THE TELEPHONE
COMPANY CS
REMIT TO : 400 W . SEVENTH, FW, TX 76102
TIONSBUSINESS-PRO-
VIDINC L AI UDSME I_
SPECIFYING GOV- I
F,
C
ERNING LAWS• PRO Star-Telegram F:EiVil UNDERG FOR %1 R I-
LEASEORALLCLAIMS
UNDER PRIOR ORDI- I
FORCFSUTUREICON NUMBERT C I T 5 7 AMOUNT DUE 29. 20
TINGENCIES• PRO- a /
V IDING FOR Wlf ITTE
ACCEPTANCEOFTHINS 4+f , °'
ORDINANCE BY THE •
TELEPHONE COMP4 4 PAGE OF I
NY• AND PROVIDING t• 4
AN EFFECTIVE DATE.
;My of Southlake
Sandra L.LeGrand
City Secretary
CITY OF SOUTHLAKE ORIGINAL
667 N C A R R O L L A V E PLEASE PAY 29. 20
SOUTHLAKE TX 76092-8898 THIS AMOUNT
ATTN : SANDRA L . LEGRAND
PLEASE WRITE IN AMOUNT ENCLOSED