6.4 Telecommunication Franchise ApplicationCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
5/6/13 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 6 A) JA
BY: `
ITEM CITY MANAGER'S OFFICE FINAL APPROVAL:
NO: 4
Page 1 BY: Jason A. Gage, City Manager BY;
ITEM: Resolution No. 13- 7002
Consider a resolution modifying the fee assessed for reviewing and approving telecommunications
contract franchise applications.
BACKGROUND:
The state of Kansas allows cities to use franchise agreements to regulate the activity of certain public
utilities provided by private companies and certain other private services to be provided throughout the
community. These services include electricity, natural gas and telecommunications. In accordance
with state law, telecommunications includes telephone services, but does not include Internet
services. In addition, the state of Kansas no longer allows cities to franchise cable television service
and reserves this right for itself. Currently, the city has a franchise agreement with Westar Energy,
Kansas Gas Service and Southwestern Bell Telephone (d /b /a AT &T Kansas). These franchise
agreements are approved as ordinances and are found in their entirety in the back of the Salina Code.
Around the year 2000, many cities from both Kansas and Missouri formed a consortium to work with
telecommunication providers. This resulted in an agreed upon, model franchise agreement provisions
that were codified through legislation. On November 20, 2000, the City Commission adopted
Resolution No. 00 -5664, which provided staff with discretion to create a standard franchise application
and procedures within the context of the new legislative provisions. This action also established a
one -time application fee of $5,000, with half of the fee to be refundable if a franchise agreement is
approved and executed.
Since that time, we have found that state law has changed regarding application fees. The fees are
now required to be "an amount equal to the City's reasonable, actual and verifiable costs of reviewing
and approving the contract franchise in accordance with K.S.A. 12-2001". The attached resolution
(No. 13 -7002) simply updates the fee amount methodology to reflect state laws. This update is in
anticipation of receipt of a formal application for a new telecommunications franchise.
FISCAL NOTE:
No funding is required for this item.
RECOMMENDED CITY COMMISSION ACTION:
The following options are available for City Commission consideration:
1) Approve Resolution No. 13 -7002,
2) Do not approve Resolution No. 13 -7002 at this time, or
3) Other direction as the City Commission may provide
Staff recommends Option #1
Attachment: Resolution No. 13- 7002
RESOLUTION NUMBER 13 -7002
A RESOLUTION MODIFYING THE FEE ASSESSED BY THE CITY OF SALINA,
KANSAS FOR REVIEWING AND APPROVING TELECOMMUNICATIONS CONTRACT
FRANCHISE APPLICATIONS.
WHEREAS, on November 20, 2000, the Governing Body of the City of Salina, Kansas
( "City ") adopted Resolution No. 00 -5664, which, among other things, established a partially -
refundable application fee of $5,000.00 for all telecommunications contract franchise applications
submitted to the City.
WHEREAS, after the adoption of Resolution Number 00 -5664, the Kansas Legislature
amended K.S.A. 12 -2001 to provide that a city may assess a one -time application fee to recover its
costs associated with the review and approval of a telecommunications contract franchise, provided
that such application fee reimburses the city for its reasonable, actual and verifiable costs of
reviewing and approving the contract franchise.
WHEREAS, the Governing Body desires to modify the City's telecommunications
franchise application fee established by Resolution 00 -5564, so as to comply with of K.S.A. 12-
2001.
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
Section 1. That the fee to be assessed by the City for telecommunications contract franchise
applications shall be an amount equal to the City's reasonable, actual and verifiable costs of
reviewing and approving the contract franchise in accordance with K.S.A. 12 -2001.
Section 2. That the city manager is directed to implement a procedure whereby upon the
filing of an application for a franchise an applicant shall pay to the City a sum equal to the
estimated costs of the City in reviewing the contract franchise, subject to reconciliation with the
applicant upon a determination of the City's reasonable, actual and verifiable costs associated with
legal review, consultant's fees, and publication costs.
Section 3. This resolution shall be in full force and effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 6th day of May, 2013.
Barbara V. Shirley, Mayor
[SEAL]
ATTEST:
Shandi Wicks, CMC, Deputy City Clerk