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Budget Committee <br />August 7, 1999 <br />Page 6 <br />into the same thing with Lone Star Gas when they were forced to let <br />other gas companies use their pipeline. <br />City Manager Malone advised that there are some deregulations that <br />have occurred and some new rules as to how cities are going to be <br />compensated for the use of right -of -ways for telecommunications as <br />well as electricity. City Manager Malone said the City hoped to utilize <br />a firm to protect the City's interest in this matter and to insure that the <br />numbers that are used to pay the City the franchise fees are audited <br />and documented. City Manager Malone said from now on future <br />payments to the City are going to be based on a particular year, so if <br />the City is under paid, then, the City would continuously be under paid. <br />City Manager Malone advised the Committee that Southwestern Bell <br />has given notice to the City that they are going to discontinue the <br />franchise; however, they failed to give the 90 day notice before the <br />date they had to. They gave notice like seven days before the <br />anniversary date, and a letter has been drafted by Ron Clark to notify <br />them that it will be extended another year. <br />Mr. Wilson asked if the revenue is going away. City Manager Malone <br />said that it would not go away completely, but Southwestern Bell sent <br />a letter notifying the City of what the payment would be under the <br />current rules and franchise agreement, but they also put the City on <br />notice that it might be reduced due to these other regulations that have <br />been passed by the state. <br />Mr. Wilson questioned the revenue from Water and Sewer Utility under <br />the section of Franchise and Gross Receipts. <br />Mr. Anderson said that for a number of years, that has been charged <br />to the City's Water and Sewer Fund, since it is a utility, it is a franchise <br />fee just like any other utility. That is commonly done around the state, <br />and the City of Paris has done this since the 80's. Mr. Anderson <br />mentioned the fact that the theory behind that is because the Water <br />and Sewer Fund is an Enterprise Fund, it always operates and pays <br />normal business type operations. If the Water and Sewer System was <br />privatized and owned by individuals or stockholders, it would pay a <br />