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<br />RESOLUTION NO, 99-138 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, <br />TEXAS, ESTABLISHING OF THE BASE AMOUNT FOR CALCULATING THE CITY'S <br />TELECOMMUNICA TIONFRANCmSE COMPENSATION PURSUANT TO STA TE LAW; <br />ALLOCATING THE BASE AMOUNT AMONG THREE CATEGORIES OF <br />TELECOMMUNICATIONS USERS; PROVIDING FOR EXECUTION AND FILING OF <br />FORMS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE <br />SUBJECT; AND DECLARING AN EFFECTIVE DATE. <br /> <br />WHEREAS, in the past, fees paid to municipalities for the use of public right-of-way by <br />telecommunications providers were determined by several methods such as percentage of gross <br />revenues, fee-per-foot, flat fee, fee per line, and others; and, <br /> <br />WHEREAS, the recent session of the 76th Texas Legislature changed the approach for <br />compensation to municipalities in House Bill 1777, also known as Chapter 283 of the Local <br />Government Code; and, <br /> <br />WHEREAS, pursuant to the aforesaid House Bill 1777, all telecommunications franchises <br />between a certificated telecommunications provider and a municipality will be based on a flat fee per <br />access line method; and, <br /> <br />WHEREAS, as a consequence of these legislative changes, cities are required by the Public <br />Utility Commission and state law to report their 1998 franchise compensation (including any <br />escalation during calendar year 1999) for the purposes of establishing a fee per access line; and, <br /> <br />WHEREAS, municipalities are likewise required under House Bill 1777 to report an <br />allocation formula designating a ratio or percentage of access line fees to be paid by three designated <br />categories of telecommunication users; and, <br /> <br />WHEREAS, those three categories of users consist of a residential category ( Category One), <br />commercial users (Category Two), and a third special category including certain trunk line users and <br />special users (Category Three); and, <br /> <br />WHEREAS, the process of establishing the flat fee and allocating the fee among <br />telecommunication users will provide consistency of charge, but at the same time will not allocate the <br />fee on the basis of the actual cost of the service by the individual service user, thereby allowing some <br />service users to experience a savings and some to experience an additional cost as a consequence of <br />such across-the-board allocations; and, <br /> <br />WHEREAS, regardless of such disparity caused by said allocation, the city is required to <br />make such allocations or allow the State of Texas to make said allocations in lieu of a localized <br />decision; NOW, THEREFORE, <br />