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ORDINANCE NO. 92-06-01
AN ORDINANCE WHEREBY THE CITY OF FATE, TEXAS, AND SOUTHWESTERN BELL TELEPHONE COMPANY
AGREE THAT, FOR THE PURPOSE OF OPERATING ITS TELECOMMUNICATIONS BUSINESS, THE TELEPHONE
COMPANY SHALL MAINTAIN AND CONSTRUCT ITS POLES, WIRES, ANCHORS, FIBER, CABLES, MANHOLES,
CONDUITS AND OTHER PHYSICAL PLANT AND APPURTENANCES IN, ALONG, ACROSS, ON, OVER, THROUGH,
ABOVE AND UNDER ALL PUBLIC STREETS, AVENUES, HIGHWAYS, ALLEYS, SIDEWALKS, BRIDGES
OR PUBLIC WAYS IN SAID CITY; PRESCRIBING THE ANNUAL COMPENSATION DUE THE CITY UNDER
THIS ORDINANCE; PRESCRIBING THE CONDITIONS GOVERNING THE USE OF PUBLIC RIGHTS-OF-WAY
AND THE PERFORMANCE OF CERTAIN CONSTRUCTION WORK ON PUBLIC RIGHTS-OF-WAY FOR THE TELEPHONE
COMPANY'S TELECOMMUNICATIONS BUSINESS; PROVIDING AN INDEMNITY CLAUSE; SPECIFYING GOVERNING
LAWS; PROVIDING FOR A RELEASE OF ALL CLAIMS UNDER PRIOR ORDINANCES; PROVIDING FOR
FUTURE CONTINGENCIES; PROVIDING FOR WRITTEN ACCEPTANCE OF THIS ORDINANCE BY THE TELEPHONE
COMPANY; AND PROVIDING FOR A TERM AND AN 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 Fate, Texas (hereinafter referred to as the "CITY")
for many years pursuant to such rights as have been granted it by and under the laws
of the State of Texas, and subject to the reasonable exercise of the police powers
granted by and under said laws to [of] the CITY; and
WHEREAS, the TELEPHONE COMPANY has operated its telecommunications business in the
CITY under successive ordinances of the CITY, the last of which was Ordinance Number
12 adopted September 29, 1952, which provided compensation to the CITY pursuant to
that agreement based upon a percentage of gross receipts received by the TELEPHONE
COMPANY from certain local services rendered within the corporate limits of the CITY;
and
WHEREAS, 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. 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
WHEREAS, 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
establishing the conditions under which the TELEPHONE COMPANY shall maintain and construct
its physical plant in the CITY in the future; and
WHEREAS, this Ordinance is adopted by the City Council of the City of Fate pursuant
to the provisions of Article 1175, Section 2, V.A.C.S., Article 1446c, Section 21, V.A.C.S.;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FATE, TEXAS, THAT:
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