07-10395 Telecommunications Franchise Agr1
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(Published in the Salina Journal on June�, 2007)
ORDINANCE NUMBER 07-10395
A CONTRACT FRANCHISE ORDINANCE GRANTED TO SOUTHWESTERN
BELL TELEPHONE, L.P., A TELECOMMUNICATIONS LOCAL EXCHANGE SERVICE
PROVIDER PROVIDING LOCAL EXCHANGE SERVICE WITHIN THE CITY OF
SALINA, KANSAS.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA,
KANSAS:
SECTION 1. Pursuant to K.S.A. 2006 Supp. 12-2601, a contract franchise ordinance is hereby
granted to Southwestern Bell Telephone L.P. d/b/a AT&T Kansas ("AT&T Kansas), a
telecommunications local exchange service provider providing local exchange service within the
City of Salina, Kansas ("City"), subject to the provisions contained hereafter. The initial term of this
contract franchise ordinance shall be for a period of two (2) years beginning July 1, 2007, and
ending June 30, 2009. Thereafter, this contract franchise ordinance will automatically renew for
additional one (1) year terms, unless either party notifies the other party of its intent to terminate the
contract franchise ordinance at least ninety (90) days before the termination of the then current term.
The additional term shall be deemed a continuation of this contract franchise ordinance and not as a
new contract franchise ordinance or amendment. Pursuant to K.S.A. 2006 Supp. 12-2001(b)(2)
under no circumstances shall this contract franchise ordinance exceed twenty (20) years from the
effective date of the contract franchise ordinance. Compensation for said contract franchise
ordinance shall be established pursuant to Section 3 of this ordinance. ,
SECTION 2. For the purpose of this contract franchise ordinance, the following words and phrases
and their derivations shall have the following meaning:
"Access line" shall mean and be limited to retail billed and collected residential lines; business
lines; ISDN lines; PBX trunks and simulated exchange access lines provided by a central office
based switching arrangement where all stations serviced by such simulated exchange access lines
are used by a single customer of the provider of such arrangement. Access line may not be construed
to include interoffice transport or other transmission media that do not terminate at an end user
customer's premises, or to permit duplicate or multiple assessment of access line rates on the
provision of a single service or on the multiple communications paths derived from a billed and
collected access line. Access line. shall not include the following: Wireless telecommunications
services, the sale or lease of unbundled loop facilities, special access services, lines providing only
data services without voice services process by a telecommunications local exchange service
provider or private line service arrangements.
"Access line count" means the number of access lines serving consumers within the corporate
boundaries of the city on the last day of each month. ,
"Access line fee" means a fee determined by a city, up to a maximum as set out in K.S.A. 2006
Supp. 12-2001 and amendments thereto, to be used by a telecommunications local exchange service
provider in calculating the amount of access line remittance. -
"Access line remittance" means the amount to be paid by a telecommunications local exchange
service provider to a city, the total of which is calculated by multiplying the access line fee, as
determined in the city, by the number of access lines served by that telecommunications local
exchange service provider within that city for each month in that calendar quarter.
"Gross receipts" means only those receipts collected from within the corporate boundaries of the
city enacting the franchise and which are derived from the following: (A) Recurring local exchange
service for business and residence which includes basic exchange service, touch tone, optional
calling features and measured local calls; (B) recurring local exchange access line services for pay
phone lines provided by a telecommunications local exchange service provider to all pay phone
service providers; (C) local directory assistance revenue; (D) line status verification/busy interrupt
revenue; (E) local operator assistance revenue; and (F) nonrecurring local exchange service revenue
which shall include customer service for installation of lines, reconnection of service and charge for
duplicate bills. All other revenues, including, but not limited to, revenues from extended area
service, the sale or lease of unbundled network elements, nonregulated services, carrier and end user
access, long distance, wireless telecommunications services, lines providing only data service
without voice services processed by a telecommunications local exchange service provider,
privateline service arrangements, internet, broadband and all other services not wholly local in
nature are excluded from gross receipts.. Gross receipts shall be reduced by bad debt expenses.
Uncollectible and late charges shall not be included within gross receipts. If a telecommunications
local exchange service provider offers additional services of a wholly local nature which if in
existence on or before July 1, 2002, would have been included with the definition of gross receipts,
W such services shall be included from the date of the offering of such services in the city.
"Local exchange service" means local switched telecommunications service within any local
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exchange service area approved by the state corporation commission, regardless of the medium by
which the local telecommunications service is provided. The term local exchange service shall not
include wireless communication services.
"Telecommunications local exchange service provider" means a local exchange carrier as defined
in subsection (h) of K.S.A. 66-1,187, and amendments thereto, and a telecommunications carrier as
defined in subsection (m) of K.S.A. 66-1,187, and amendments thereto, which does, or in good faith
intends to, provide local exchange service. The term telecommunications local exchange service
provider does not include an interexchange carrier that does not provide local exchange service,
competitive access provider that does not provide local exchange service or any wireless
telecommunications local exchange service provider.
"Telecommunications services" means providing the means of transmission, between or among
points specified by the user, of information of the user's choosing, without change in the form or
content of the information as sent and received.
SECTION 3. Compensation made pursuant to this contract franchise ordinance shall be paid on a
quarterly basis without invoice or reminder from the City and paid not later than forty-five (45) days
after the end of the remittal period. For the first year of this contract franchise ordinance, said
compensation shallbe a sum equal to 5 percent (5%) of gross receipts. Thereafter, compensation
for each calendar year of the remaining term of the contract franchise ordinance shall continue to be
based on a sum equal to 5 percent (5%) of gross receipts; unless the City notifies AT&T Kansas
prior to ninety days (90) before the end of the calendar year that it intends to increase or decrease the
percentage of gross receipts for the following calendar year or that it intends to switch to an access
line fee for the following calendar year. In the event City elects compensation based on an access
line fee, nothing herein precludes City from switching back to a gross receipts fee provided City
notifies AT&T Kansas prior to ninety days (90) before the end of the calendar year that it intends to
elect a gross receipts fee for the following calendar year. Any increased access line fee or gross
receipt fee shall be in compliance with the public notification procedures set forth in subsections (1)
and (m) K.S.A. 2006 Supp. 12-2001.
SECTION 4: The City shall have the right to examine, upon written notice to the
telecommunications local exchange service provider, no more than once per calendar year, those
records necessary to verify the correctness of the compensation paid pursuant to this contract
franchise ordinance.
SECTION 5. As a condition of this contract franchise ordinance, AT&T Kansas is required to
obtain and is responsible for any necessary permit, license, certification, grant, registration or any
other authorization required by any appropriate governmental entity, including, but not limited to,
the City, the Federal Communications Commission (FCC) or the Kansas Corporation Commission
(KCC), subject to AT&T Kansas' right to challenge in good faith such requirements as established
by the FCC, KCC or other City Ordinance. AT&T Kansas shall also comply with all applicable
laws, statutes and/or ordinances, subject to AT&T Kansas' right to challenge in good faith such
laws, statutes and/or ordinances.
SECTION 6: Nothing herein contained shall be construed as giving AT&T Kansas any exclusive
privileges, nor shall it affect any prior or existing rights of AT&T Kansas to maintain a
telecommunications system within the City.
SECTION 7: AT&T Kansas shall collect and remit compensation as described in Section 3 on
those access lines that have been resold to another telecommunications local exchange service
provider.
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SECTION 8: The City agrees to provide AT&T Kansas with notification in the event that it
annexes property into the corporate boundaries of the City that would require AT&T Kansas to
collect and pay a franchise fee on access lines or gross receipts which prior to the annexation of the
property AT&T Kansas was not required to pay a franchise fee. The City agrees to provide AT&T
Kansas with notification in the event the City renumbers or renames any streets that would require
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AT&T Kansas to collect and pay a franchise fee on access lines or gross receipts which prior to the
renumbering or renaming of the streets AT&T Kansas would not have been required to pay a
franchise fee. The City agrees that in the event the City does not provide AT&T Kansas with notice
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of an annexation or renumbering and/or renaming of the streets, AT&T Kansas is not liable to the
City for payment of franchise fees on the annexation or renumbered and/or renamed streets prior to
the City providing notice to AT&T Kansas of such.
SECTION 9: The City agrees that pursuant to K.S.A. 2006 Supp. 12-20010)(1) and (2) that the
franchise fee imposed under this contract franchise ordinance must be assessed in a competitively
neutral manner, may not unduly impair competition, must be nondiscriminatory and must comply
with state and federal law.
SECTION 10: Any required or permitted notice under this contract franchise ordinance shall be in
writing. Notice upon the City shall be delivered to the city clerk by first class United States mail or
by personal delivery. Notice upon AT&T Kansasshall be delivered by first class United States mail
or by personal delivery to:
Southwestern Bell Telephone L.P.
Cindy Zapletal
Director -External Affairs
1640 Fairchild Avenue, First Floor
Manhattan, Kansas 66502
SECTION 11: Failure to Enforce. The failure of either party to enforce and remedy any
noncompliance of the terms and conditions of this contract franchise ordinance shall not constitute a
waiver of rights nor a waiver of the other party's obligations as provided herein.
SECTION 12: Force Majeure. Each and every provision hereof shall be subject .to acts of God,
fires,strikes, riots, floods, war and other disasters beyond AT&T Kansas' or the City's control.
SECTION 13: AT&T Kansas has entered into this contract franchise ordinance as required by the
City and K.S.A. 2006 Supp.. 12-2001. If any clause, sentence, section, or provision of K.S.A. 2006
Supp. 12-2001, and amendments thereto, shall be held to be invalid by a court of competent
jurisdiction, either the City or AT&T Kansas may elect to terminate the entire contract franchise
ordinance. In the event a court of competent jurisdiction invalidates K.S.A. 2006 Supp. 12-2001,
and amendments thereto, if AT&T Kansas is required by law to enter into a contract franchise
ordinance with the City, the parties agree to act in good faith in promptly negotiating a new contract
franchise ordinance.
SECTION 14: In entering into this contract franchise ordinance, neither the City's nor AT&T
Kansas present or future legal rights, positions, claims, assertions or arguments before any
administrative agency or court of law are in any way prejudiced or waived. By entering into the
contract franchise ordinance, neither the City nor AT&T Kansas waive any rights, but instead
expressly reserve any and all. rights, remedies, and arguments the City or AT&T Kansas may have at
law or equity, without limitation, to argue, assert, and/or take any position as to the legality or
appropriateness of this contract franchise ordinance or any present or future laws, ordinances, and/or
rulings which may be the basis for the City and AT&T Kansas entering into this contract franchise
ordinance.
SECTION 15: The parties agree that in the event of a breach of this contract franchise ordinance
by either party, the non breaching party has the right to terminate the contract franchise ordinance
immediately. Prior to terminating the contract franchise ordinance, the non breaching party shall
first serve a written notice upon the breaching party, setting forth in detail the nature of the breach,
and the breaching party shall have thirty (30) days thereafter in which to cure the breach. If at the
end of such thirty (30) day period the non breaching party deems that the breach has not been cured,
the non breaching party may take action to terminate this contract franchise ordinance.
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SECTION 16: This contract franchise ordinance is made under and in conformity with the laws of
the State of Kansas. No such contract franchise ordinance shall be effective until the ordinance
granting the same has been adopted as provided by law.
Introduced: June 18, 2007
Passed: June 25, 2007
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Alan E. Jilka, M or
(SEAL)
ATTEST: APPROVED AS TO FORM:
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Lieu Ann Elsey, CMC, qty Clerk
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