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
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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:
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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.
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PASSED AND APPROVED ON THIS THE AA DAY OF . 1995.
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